[Federal Register Volume 67, Number 20 (Wednesday, January 30, 2002)]
[Proposed Rules]
[Pages 4562-4640]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 02-2177]



[[Page 4561]]

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Part IV





Postal Service





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39 CFR Part 111



Proposed Changes to the Domestic Mail Manual To Implement Docket No. 
R2001-1; Proposed Rule

Federal Register / Vol. 67, No. 20 / Wednesday, January 30, 2002 / 
Proposed Rules

[[Page 4562]]


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POSTAL SERVICE

39 CFR Part 111


Proposed Changes to the Domestic Mail Manual To Implement Docket 
No. R2001-1

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: On September 24, 2001, 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. 
R2001-1 and issued a notice of filing in Order No. 1324 on September 
26, 2001.
    On October 25, 2001, the PRC directed the participants to consider 
the possibility of a settlement. Noting the extraordinary national 
events experienced during September, and the potential effects that 
changed circumstances might have on the Postal Service's request, the 
PRC requested all participants consider whether substantial agreement 
on issues and objectives might permit a beneficial resolution of the 
proceeding.
    Counsel for the Postal Service, the Office of the Consumer 
Advocate, and participating intervenors discussed the issues presented 
by this case at conferences on October 30, and November 16, 2001, to 
which all intervenors and the Office of the Consumer Advocate were 
invited. The Postal Service also consulted with intervenors 
individually and in smaller groups.
    On December 17, 2001, the Postal Service filed a Stipulation and 
Agreement for settlement of Docket No. R2001-1, together with a motion 
for the establishment of preliminary procedures and a schedule. On 
December 26, 2001, the Postal Service with concurrence of its Board of 
Governors agreed to changes in the terms of the Stipulation and 
Agreement. These changes included specifying June 30, 2002, rather than 
June 2, 2002, as the earliest effective date for rate, fee, and 
classification changes. The revision also restored the rates for intra- 
and inter-BMC parcel post back to the levels originally proposed in the 
September 24, 2001 request. Between December 26, 2001, and January 17, 
2002, fifty parties adhered to the terms of the revised settlement by 
signing the agreement.
    On January 17, 2002, the Postal Service filed a second revised 
Stipulation and Agreement that included several relatively minor 
changes in the rates proposed for the Enhanced Carrier Route (ECR) 
subclass of Standard Mail. In all other respects, the Stipulation and 
Agreement remained the same. Subsequently, six additional parties 
adhered to the settlement agreement. Only one participant opposed the 
settlement.
    The PRC will hold hearings to consider the opposition to the 
settlement. It will then issue a recommended decision to the Postal 
Service Board of Governors, who will act on it. If the recommendations 
are approved, the Board of Governors will establish an effective date.
    At this time, the Postal Service is publishing this proposed rule 
which provides information on the implementing standards for the rate, 
fee, and classification changes the Postal Service proposes to adopt if 
the terms of the second revised Stipulation and Agreement are 
consistent with the PRC's recommended decision on R2001-1 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 March 1, 2002.

ADDRESSES: Send written comments to the Manager, Mail Preparation and 
Standards, U.S. Postal Service, 1735 North Lynn Street, Room 3025, 
Arlington, VA 22209-6038. Written comments may be submitted via fax to 
703-292-4058. Copies of all written comments will be available for 
inspection and photocopying between 9 a.m. and 4 p.m., Monday through 
Friday, at Postal Service Headquarters Library, 475 L'Enfant Plaza SW., 
Room 11800, Washington, DC 20260-1540.

FOR FURTHER INFORMATION CONTACT:
    General contact for all subjects: Jane Stefaniak, 703-292-3548.
    For Express Mail and Priority Mail: Karen Magazino, 703-292-3644.
    For First-Class Mail and Standard Mail: Anne Emmerth, 703-292-3641.
    For Periodicals: Joel Walker, 703-292-3652.
    For Package Services: OB Akinwole, 703-292-3643.
    For Special Services: Pat Bennett, 703-292-3639.

SUPPLEMENTARY INFORMATION: The Postal Service's request in Docket No. 
R2001-1 and as amended in the second revised Stipulation and Agreement 
filed on January 17, 2002, includes classification and rate structure 
changes, and increases in most existing rate and fee categories. This 
proposed rule contains the Domestic Mail Manual (DMM) standards the 
Postal Service would adopt to implement R2001-1. Part A of this 
document summarizes the proposed revisions to the DMM by class of mail 
and special service category. Part B summarizes the proposed changes by 
DMM module and section. The text of the proposed changes to the DMM 
standards appear after Part B.
    Comments are solicited on the proposed implementing of DMM 
standards that appear in this proposed rule. As information, the DMM 
language in this proposed rule incorporates all revisions to the DMM 
from previously published Federal Register final rules that have taken 
effect or will take effect on or before the implementation of the rates 
resulting from the R2001-1 rate case. As a result, 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 the current DMM 56.
    A 6-month phase-in period is proposed for mailer implementation of 
the requirements for formatting card-rate First-Class Mail; for mail 
preparation and tray labeling of nonmachinable First-Class Mail and 
Standard Mail; and, for the tray labeling changes affecting Standard 
Mail Enhanced Carrier Route high density and saturation rate letters. 
Mailers are asked to comment both on the language of these proposed 
requirements and their ability to meet the proposed 6-month time frame.
    Although proposed rates, rate categories, and rate structures are 
included in this proposed rule, they are outside the scope of this 
rulemaking process because they are still under review by the Postal 
Rate Commission. Accordingly, comments on whether the current basic 
automation rate for letter-size First-Class Mail and Standard Mail 
should be split into an automated area distribution center (AADC) rate 
and a mixed AADC rate, or offered at different rates, would not be 
appropriate. However, comments suggesting changes to the way the Postal 
Service would implement standards for the proposed AADC and mixed AADC 
rates would be appropriate.

Part A--Summary of Changes by Class of Mail

    The following information details the R2001-1 proposed changes 
organized by class of mail and special service category. This 
information is intended as an overview only and should not be viewed as 
defining every proposed DMM revision.

[[Page 4563]]

1. Express Mail

a. Express Mail Rate Highlights
    Overall, Express Mail rates would increase an average of 9.4%. The 
most significant change to the Express Mail rate structure would be to 
the flat-rate envelope. Currently, the rate for the Express Mail flat-
rate envelope is the same as the applicable 2-pound rate. The proposed 
rate for the flat-rate envelope would be the \1/2\-pound rate, which is 
the lowest available rate for each Express Mail service offering. The 
rate for the flat-rate envelope would decrease for Post Office to 
Addressee service from $16.25 to $13.65, but the size of the envelope 
would remain the same.
    The indemnity included in the price of Express Mail would be 
reduced from $500 to $100 for both merchandise and document 
reconstruction. This adjustment would more closely align with general 
industry practice. The fee for every $100 increment of additional 
merchandise insurance desired above the standard $100 and up to $5,000 
would be $1.00.
b. Express Mail Rate Structure
    There would be no changes to the rate structure of Express Mail.
c. Express Mail Preparation Changes
    There would be no changes to mail preparation requirements for 
Express Mail.

2. Priority Mail

a. Priority Mail Rate Highlights
    Overall, Priority Mail rates would increase an average of 13.5%. 
Currently, the rate for the Priority Mail flat-rate envelope is the 
same as the 2-pound rate. The rate for the flat-rate envelope would be 
tied to the 1-pound rate because of the proposed rezoning of all rates 
from 2 to 5 pounds. The 1-pound rate would increase from $3.50 to $3.85 
and remain an unzoned rate. The rate for the flat-rate envelope would 
decrease from the current $3.95 to the proposed rate of $3.85. The 
Priority Mail flat-rate envelope would continue to be the EP-14F 
envelope available from the Postal Service.
b. Priority Mail Rate Structure
    Currently, Priority Mail rates are not zoned for pieces weighing 2 
through 5 pounds, but they are zoned for pieces weighing more than 5 
pounds. The weight increments from more than 1 pound and up to 5 pounds 
would be zoned to more accurately reflect actual costs to the Postal 
Service for transportation and handling.
c. Priority Mail Preparation Changes
    There would be no changes to mail preparation requirements for 
Priority Mail.

3. First-Class Mail

a. First-Class Mail Rate Highlights
    Overall, First-Class Mail rates would increase an average of 8.2%. 
The single-piece 1-ounce First-Class Mail rate would increase from 
$0.34 to $0.37, and the single-piece card rate from $0.21 to $0.23. The 
additional ounce rate for single-piece First-Class Mail would remain at 
$0.23. There would be a lower additional ounce rate for Presorted 
First-Class Mail.
    Business mailers would see larger automation presort discounts. The 
carrier route automation discount and the nonautomation presort 
discount would remain at the current levels. The proposed increase in 
automation discounts and the proposed half-cent reduction in the 
additional-ounce rate would result in more attractive incentives, 
especially for large-volume First-Class Mail users who presort and mail 
heavier pieces.
b. First-Class Mail Rate Structure and Mail Preparation Changes
(1) Lower Additional Ounce for Presorted and Automation Rates
    Currently, there is a single additional ounce rate for all pieces 
mailed at First-Class Mail rates. For presorted and automation pieces 
weighing more than 2 ounces, a heavy piece discount is deducted.
    The Postal Service is proposing a lower additional ounce rate for 
First-Class Mail sent at Presorted and automation rates (including 
automation carrier route). Pieces mailed at single-piece rates would 
pay $0.23 for each additional ounce; pieces mailed at any discount rate 
would pay $0.225 for each additional ounce. This change would affect 
only postage rates; there would be no proposed eligibility or mail 
preparation changes.
(2) Automation Basic Rate Split Into Two New Rates
    For automation cards and letters, the current rate structure 
contains a 5-digit, 3-digit, and basic rate. The proposed rate 
structure would split the basic rate into an automated area 
distribution center (AADC) rate (for all pieces in an AADC tray) and a 
mixed AADC rate (for all pieces in a mixed AADC tray). The AADC rate 
would also apply to pieces in a less-than-full origin 3-digit tray. In 
addition, the 3-digit sort level, which is currently required, would 
become optional. The first required sort level would be the AADC sort.
    For automation flats, the current rate structure contains a 5-
digit, 3-digit, and basic rate. The proposed rate structure would split 
the basic rate into an area distribution center (ADC) rate (for all 
pieces in an ADC package or tray) and a mixed ADC rate (for all pieces 
in a mixed ADC package or tray). The ADC rate also would apply to 
pieces in a less-than-full origin 3-digit tray. There are no proposed 
sortation changes for automation flats. The 5-digit sort level would 
still be optional; all other sort levels would be required.
(3) Format Changes for Card Rate Pieces
    Formatting standards for pieces mailed at card rates are currently 
contained in the Domestic Mail Classification Schedule (DMCS). 
Specifically, the language includes prohibitions against perforations 
or tearing guides and restricts the kind and amount of nonaddress 
information (e.g., account information or billing codes) that can 
appear on the face of the card. Many utility companies and small 
businesses use postcards to send bills to customers. The Postal Service 
has received requests from these mailers to loosen and clarify these 
standards. However, because the language was contained in the DMCS, no 
DMM changes could be made without first revising the DMCS.
    In Docket No. R2001-1, the Postal Service proposed to remove 
section 222.2, Restrictions, from the DMCS. Subsequently, DMM C100.2.0, 
which contains standards for physical construction and formatting of 
First-Class Mail cards, would be revised to accommodate the proposed 
DMCS change. The proposed DMM standards would offer more options to 
mailers for placing billing information on the face of the card.
    Specifically, the new standards require address information to be 
placed within a certain space for cards claimed at the Presorted or 
automation card rates. Perforated cards would be required to maintain a 
minimum ratio of 50:50 (stock to perforations).
    The Postal Service is proposing a 6-month phase-in period for 
mailers to comply with these format changes (see new section C100.2.8). 
After the phase-in period, Presorted and automation rate cards that do 
not meet the standards in C100.2.0 would not be eligible for card 
rates.
(4) Nonmachinable Surcharge
    The definition of the current nonstandard surcharge would be 
expanded to include any physical

[[Page 4564]]

criteria that could make a mailpiece nonmachinable. Pieces that are 
nonmachinable are excluded from automated processing and must be 
handled manually. Nonmachinable pieces also may impede mail flow or 
damage the mail or mail processing equipment. Manual pieces are 
considerably more costly to process than machinable letters.
    The proposed criteria for the nonmachinable surcharge for letter-
size mail would be listed in DMM C050.2.2. The nonmachinable surcharge 
would apply to single-piece and Presorted rate letters that weigh 1 
ounce or less and meet one or more of the criteria in that section.
    The nonmachinable surcharge also would apply to single-piece, 
Presorted, and automation rate nonletters (flats and parcels) that 
weigh 1 ounce or less if any one of the following applies:
    (a) The piece is greater than \1/4\-inch thick.
    (b) The length is more than 11\1/2\ inches or the height is more 
than 6\1/8\ inches.
    (c) The aspect ratio (length divided by height) is less than 1.3 or 
more than 2.5.
    The nonmachinable surcharge would be $0.12 for single-piece rate 
pieces and $0.055 for Presorted and automation rate pieces.
    The nonmachinable criteria in C050.2.2 would not apply to pieces 
mailed at any card rate.
    The nonmachinable surcharge also would apply to letter-size pieces 
(including pieces mailed at the card rate) for which the mailer has 
chosen the manual only (``do not automate'') option.
    This proposed change is consistent with the proposed nonmachinable 
surcharge for Standard Mail.
    In conjunction with this change, trays of machinable and 
nonmachinable letters would be prepared and labeled differently. The 
preparation for machinable letters would be similar to the current 
preparation for upgradable letters (including the optional 5-digit sort 
level); the preparation for nonmachinable pieces would be similar to 
the current package-based preparation for Presorted letters. The 
current weight limit for upgradable letters (2.5 ounces) would be 
replaced with a weight limit of 3.3 ounces for machinable letters. 
Letters heavier than 3.3 ounces that are less than \1/4\-inch thick 
would use the nonmachinable preparation and labeling but would not pay 
the surcharge (because it would apply only to pieces that weigh 1 ounce 
or less).
    On tray labels, the current ``NON BC'' designation would be 
replaced with one of two designations: ``MACH'' for machinable pieces 
or ``MANUAL'' for nonmachinable pieces. Although Presorted cards would 
not be subject to the surcharge, mailers would be required to show on 
the tray label whether or not those pieces are machinable (for 
instance, a double card that is not tabbed is nonmachinable). The 
``MANUAL'' designation would help the Postal Service direct the trays 
of mail to the appropriate mail processing operation. Mailers who 
choose the ``do not automate'' option would show ``MANUAL'' on Line 2 
of the tray label, as currently required.
    Software vendors should note that, as proposed, machinable and 
nonmachinable (manual) letters will use different content identifier 
numbers (CINs).
    There are no proposed preparation or labeling changes for Presorted 
flats or parcels subject to the surcharge.
    Mail preparation instructions for Presorted letter-size pieces 
subject to the nonmachinable surcharge would be in DMM M130. 
Preparation instructions for automation flats subject to the 
nonmachinable surcharge would not change (see current DMM M820).
    The nonmachinable surcharge would be assessed on any piece mailed 
out as a different class of mail and returned as First-Class Mail (for 
instance, Standard Mail endorsed ``Return Service Requested'') if the 
piece weighs 1 ounce or less and meets the criteria for 
nonmachinability in C050.2.2. Pieces returned at First-Class Mail card 
rates would not be subject to the nonmachinable surcharge.
    The surcharge would take effect when the new rates are implemented, 
however, the Postal Service is proposing a 6-month phase-in period for 
these mail preparation and tray labeling changes.
(5) Delivery Confirmation and Signature Confirmation for First-Class 
Mail Parcels
    The Postal Service would add two new special service options for 
First-Class Mail parcels: Delivery Confirmation and Signature 
Confirmation. Both services would be available in manual (retail) and 
electronic options. The fees for Delivery Confirmation would be $0.55 
(retail) and $0.13 (electronic). The fees for Signature Confirmation 
would be $1.80 (retail) and $1.30 (electronic).
    For the purposes of adding Delivery Confirmation and Signature 
Confirmation, a First-Class Mail parcel is defined as any piece:
    (a) That has an address side with enough surface area to fit the 
delivery address, return address, postage, markings and endorsements, 
and special service label; and
    (b) Is in a box or, if not in a box, is greater than \3/4\-inch 
thick at its thickest point.
    This definition would provide mailers with different packaging 
options for their First-Class Mail parcels.
(6) Containerization and Labeling
    For letter-size pieces, the definition of a full tray would change 
from the current threshold of 75% to 100%, with a range between 75% and 
100%. The recommended default for presort software would be 85%. In 
addition, after the minimum volume for rate eligibility is reached 
(i.e., 150 pieces for a 3-digit area), overflow would be optional for 
all sort levels of letter trays. Also, mailers would be required to use 
as few trays as possible. Under current standards, a mailer could 
prepare one full 1-foot tray plus one less-than-full 1-foot tray; new 
standards would result in the preparation of a single less-than-full 2-
foot tray.
    On all First-Class Mail letter trays, ``LTRS'' would change to 
``LTR'' and ``CR-RTS'' would change to ``CR-RT.'' This change would be 
necessary to allow more room for other information on the tray label.
(7) Documentation
    Mailers would no longer be required to present a hard copy Form 
3553, Coding Accuracy Support System (CASS) Summary Report, with their 
mailings. Instead, mailers or mailer agents would be required to keep 
this documentation on file for 1 year from the date of mailing and make 
it available to the Postal Service on 24-hour notice.
    Software vendors and mailers should note that changes are proposed 
for manifest keyline rate codes (P910.3.0) and Multi-line Optical 
Character Reader (MLOCR) rate markings (P960.3.0) to reflect the new 
First-Class Mail rates.

4. Periodicals

a. Periodicals Rate Highlights
    The overall proposed average increase for Periodicals would be 10%. 
Outside-County postage would increase on average 10.4%, while In-County 
postage would increase on average 1.7%. Automation discounts would 
increase at the 5-digit (from $0.025 to $0.03), 3-digit (from $0.035 to 
$0.041), and basic (from $0.042 to $0.048) presort levels. The 
destination delivery unit (DDU) discount would increase (from $0.017 to 
$0.018), while the destination sectional center facility (DSCF) 
discount would remain at $0.008. The proposed new

[[Page 4565]]

destination area distribution center (DADC) discount would be $0.002.
    Original entry and additional entry application fees are proposed 
to increase from $350 to $375 and from $50 to $60, respectively, while 
the fees for reentry and news agent registry would remain at $40.
b. Periodicals Rate Structure and Mail Preparation Changes
(1) Proposed Changes
    Proposed changes to the rate design for Periodicals are as follows:
    (a) New DADC discounts for Outside-County and Science-of-
Agriculture Periodicals that would be deducted from the pound and 
addressed per piece rates.
    (b) A change that would limit destination rates and discounts to 
mail entered at destination facilities (DDU, DSCF, and DADC).
    (c) A new per piece discount for each addressed nonletter-size 
piece (flat-size and irregular parcel) prepared in packages on pallets 
that contain at least 250 pounds of mail (except overflow pallets). 
This discount would apply to all pallet levels. The discount would not 
apply to pieces in sacks on pallets or in trays on pallets.
    (d) In addition to the per piece pallet discount, a new destination 
entry per piece pallet discount would apply to each addressed piece of 
nonletter-size mail (flats and irregular parcels) prepared in packages 
on any destination entry pallet of at least 250 pounds of mail (except 
overflow pallets). The discount is not available for pieces in sacks or 
trays on pallets.
    In conjunction with the nommachinable surcharge, it is proposed 
that any Periodical returned to the sender at First-Class Mail rates is 
subject to the nonmachinable surcharge if the piece weighs 1 ounce or 
less and meets any one of the nonmachinable criteria in C050.2.2.
(2) Periodicals Ride-Along
    The Ride-Along experiment would become a permanent classification. 
There would be no proposed changes in the current standards for 
eligibility. However, publishers would no longer be required to 
complete a data collection questionnaire, provide a sample in addition 
to the marked copy, or submit an additional copy of Form 3541-X 
(postage statement). Form 3541-X would be discontinued and mailers 
would use Form 3541. The standards for Ride-Along would be relocated to 
new DMM E260. The Ride-Along rate would increase from $0.10 to $0.124 
per piece.
(3) Containerization
    For letter-size pieces, the definition of a full tray would change 
from the current threshold of 75% to 100%, with a range between 75% and 
100%. The recommended default for presort software would be 85%. In 
addition, after the minimum volume for rate eligibility is reached 
(i.e., 150 pieces for a 3-digit area), overflow would be optional for 
all sort levels of letter trays. Also, mailers would be required to use 
as few trays as possible. Under current standards, a mailer could 
prepare one full 1-foot tray plus one less-than-full 1-foot tray; new 
standards would result in the preparation of a single less-than-full 2-
foot tray.
    In addition, the measurement for the minimum volume of trays on 
pallets would be measured in linear feet, not by the number of layers 
of trays.
(4) Documentation
    Mailers would no longer be required to present a hard copy Form 
3553, Coding Accuracy Support System (CASS) Summary Report, with their 
mailings. Instead, mailers or mailer agents would be required to keep 
this documentation on file for 1 year from the date of mailing and make 
it available to the Postal Service on 24-hour notice.

5. Standard Mail

a. Standard Mail Rate Highlights
    Overall, Standard Mail rates would increase an average of 7.3%. On 
average, within each subclass, rates for flat-size mail would increase 
more than rates for letter-size mail. Regular rates would increase an 
average of 8% and nonprofit rates would increase an average of 6.7%. As 
proposed, greater destination entry discounts would provide an 
incentive for mailers to use their own or third-party transportation to 
move Standard Mail closer to the point of delivery.
b. Standard Mail Rate Structure and Mail Preparation Changes
(1) Automation Basic Letter Rate Split Into Two New Rates
    For automation letter-size pieces, the current rate structure 
contains a 5-digit, 3-digit, and basic rate. The proposed rate 
structure would split the basic rate into an AADC rate (for all pieces 
in an AADC tray) and a mixed AADC rate (for all pieces in a mixed AADC 
tray). The AADC rate also would apply to all pieces in any less-than-
full origin or entry 3-digit or 3-digit scheme tray. There are no 
proposed sortation changes for automation letter-size pieces. The 5-
digit sort level would still be optional; all other sort levels would 
be required.
    Unlike in First-Class Mail, where the proposed ADC and mixed ADC 
rates would apply to automation flats, there are no proposed changes to 
the rate structure for Standard Mail automation flats.
(2) Nonmachinable Surcharge
    A nonmachinable surcharge is proposed for Standard Mail letter-size 
pieces; the definition would include any physical criteria that could 
make a mailpiece nonmachinable. Pieces that are nonmachinable are 
excluded from automated processing and must be handled manually. 
Nonmachinable pieces also may impede mail flow or damage the mail or 
mail processing equipment. Manual letters are considerably more costly 
to process than machinable letters.
    The proposed criteria for nonmachinability for letter-size pieces 
are in DMM C050.2.2. The nonmachinable surcharge would apply to 
Presorted rate letter-size pieces (including cards) that weigh 3.3 
ounces or less and meet one or more of the criteria in that section.
    Unlike First-Class Mail, where the nonmachinable surcharge would 
also apply to flats, the Postal Service is not proposing to add a 
nonmachinable surcharge to Standard Mail flats. The Standard Mail rate 
structure includes separate rates for letters and nonletters and 
factors in the extra costs of handling nonmachinable nonletters.
    The nonmachinable surcharge would be $0.04 per piece for regular 
rate pieces and $0.02 per piece for nonprofit rate pieces.
    The nonmachinable surcharge also would apply to Presorted rate 
letter-size pieces for which the mailer has chosen the ``manual only'' 
(do not automate) option.
    This proposed change is consistent with the proposed nonmachinable 
surcharge for First-Class Mail.
    In conjunction with this change, trays of machinable and 
nonmachinable letters would be prepared and labeled differently. The 
preparation for machinable letters would mirror the current preparation 
for upgradable letters (including the optional 5-digit sort level). The 
preparation for nonmachinable pieces would mirror the current package-
based preparation for Presorted letters. The current weight limit for 
upgradable letters (2.5 ounces) would be replaced with a weight limit 
of 3.3 ounces for machinable letters.
    On tray labels, the current ``NON BC'' designation would be 
replaced with one of two designations: ``MACH'' for machinable pieces 
or ``MANUAL'' for nonmachinable pieces. The ``MANUAL''

[[Page 4566]]

designation would help the Postal Service direct the trays of mail to 
the appropriate mail processing operation. Mailers who choose the ``do 
not automate'' option would show ``MANUAL'' on Line 2 of the tray 
label, as currently required.
    Software vendors should note that, as proposed, machinable and 
nonmachinable (manual) letters will use different content identifier 
numbers (CINs).
    Mail preparation instructions for Standard Mail pieces subject to 
the nonmachinable surcharge are found in DMM M610.
    In a mailing of nonmachinable letter-size pieces, residual pieces 
sent at First-Class Mail rates would be subject to the First-Class Mail 
nonmachinable surcharge only if the pieces weigh 1 ounce or less. 
Heavier pieces would not be subject to the First-Class Mail 
nonmachinable surcharge, even though those same pieces would have been 
subject to the Standard Mail nonmachinable surcharge if they had 
remained in the Standard Mail mailing. Additionally, residual pieces 
that are mailed at First-Class Mail card rates would not be subject to 
the nonmachinable surcharge.
    Standard Mail pieces that are returned as First-Class Mail (for 
instance, an undeliverable piece endorsed ``Return Service Requested'') 
would be charged the nonmachinable surcharge if the piece weighs 1 
ounce or less and meets the criteria for nonmachinability in C050.2.2. 
The nonmachinable surcharge also would be figured into the calculation 
for the weighted fee for pieces that weigh 1 ounce or less. The 
nonmachinable surcharge would not be charged on pieces returned at 
First-Class Mail card rates.
    The surcharge would take effect when the new rates are implemented, 
however, the Postal Service is proposing a 6-month phase-in period for 
these mail preparation and tray labeling changes.
(3) Heavier Letters Are Eligible for Automation Rates
    The maximum weight limit for automation letters would increase from 
3.3 ounces to 3.5 ounces (inclusive). These pieces would be charged 
postage equal to the automation piece/pound rate for that piece and 
receive a discount equal to the automation nonletter piece rate (3.3 
ounces or less) minus the corresponding automation letter piece rate 
(3.3 ounces or less) for the appropriate sort level. This change 
applies to regular and nonprofit automation letters.
    For instance, each heavy automation letter sorted to a 5-digit tray 
would receive a discount equal to the 3/5 automation nonletter rate 
minus the 5-digit automation letter rate.
    As an example, using the proposed postage rates, a regular 
automation letter weighing 3.4 ounces that is sorted in a 3-digit tray 
for DSCF entry would be charged:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
Nonletter piece rate (more than 3.3 ounces), 3/5 rate......       $0.115
------------------------------------------------------------------------
Plus.......................................................
------------------------------------------------------------------------
Nonletter pound rate (more than 3.3 ounces), 3/5 rate, DSCF       0.1239
 entry (3.4 ounces divided by 16 ounces equals 0.2125
 pounds, multiplied by $0.583 per pound) (rounding off to
 four decimal places)
------------------------------------------------------------------------
Equals.....................................................       0.2389
------------------------------------------------------------------------
Minus a discount that equals the 3/5 nonletter piece rate          -.058
 (3.3 ounces or less) for DSCF entry minus the 3-digit
 letter piece rate (3.3 ounces or less) for DSCF entry
 (0.235 minus 0.177).......................................
------------------------------------------------------------------------
Equals postage per piece...................................       0.1809
------------------------------------------------------------------------

    This proposed change would allow mailers to avoid the substantial 
rate increase for letter-shaped pieces exceeding 3.3 ounces. Under the 
current rate schedule, once an automation letter exceeds the 3.3-ounce 
maximum weight, the piece become subject to the piece/pound rates.
    There are no proposed mail preparation changes that accompany this 
change; these heavy letters would be required to meet the current 
standards for heavy automation letters in DMM C810.7.5 and would use 
the existing mail preparation sequence and labeling for automation 
letters. Mailers who choose to take this discount for heavy automation 
letters would be required to use a new postage statement to be designed 
for this purpose.
    Current standards for mixed rate mailings would not change. Pieces 
from a heavy letter mailing that cannot be barcoded would be mailed at 
single-piece First-Class Mail rates or prepared as a Presorted Standard 
Mail letter mailing with postage paid at the piece/pound rate (for 
pieces over 3.3 ounces). Like today, these residual pieces would not 
need to meet a separate 200-piece or 50-pound minimum (see DMM 
E620.1.2).
(4) Barcode Requirement for ECR Letter-Size Pieces
    Enhanced Carrier Route (ECR) letter-size pieces mailed at high-
density and saturation per piece rates would be required to meet the 
physical standards for automation-compatible mail in DMM C810 and would 
be required to have a delivery point barcode. Pieces using simplified 
address would not be required to have a delivery point barcode, and 
therefore, would not need to meet the physical standards for 
automation-compatible mail.
    This change would apply to both ECR and Nonprofit ECR.
    Requiring high density and saturation letters to be barcoded would 
give the Postal Service operational flexibility and would eliminate the 
need to barcode these pieces before delivery point sequencing (DPS). 
The Postal Service updates its DPS sort plans daily. Therefore, any 
changes in route assignments between carriers are captured in the DPS 
process daily; mailers are permitted to use carrier route information 
that could be up to 90 days old.
    The proposed automation-compatible requirement corresponds to the 
requirement for a delivery point barcode--for the Postal Service to 
read the barcode, the piece must be compatible with automated mail 
sorting equipment. These requirements would not apply to detached 
address labels (DALs) that accompany flat-size pieces or irregular 
parcels. Even though the DAL itself is letter-sized, technically it is 
the label for the larger piece.
    Pieces that do not meet the physical standards in C810 or that do 
not contain a delivery point barcode would be subject to the 
corresponding ECR high density or saturation nonletter rate. Pieces 
that are letter-size but claimed at the nonletter rates would be 
marked, sorted, and trayed as letters. Mailers

[[Page 4567]]

also would have the option to pay the ECR basic letter rate (for which 
barcodes are not required).
    There are no proposed changes to the sequencing requirements, 
markings, or sortation for ECR pieces. Tray labels would change to 
reflect whether the pieces in the tray are barcoded (``BC''), not 
barcoded but machinable (``MACH''), or nonmachinable, regardless of 
whether the pieces are barcoded (``MANUAL'' or ``MAN''). These 
designations help the Postal Service direct the trays of mail to the 
appropriate mail processing operation. Mailers would be required to use 
barcoded tray labels.
    Pieces mailed with a simplified address format do not contain the 
necessary address elements to generate a delivery point barcode for 
that address. To qualify for the high density or saturation letter 
rates, those pieces would not have to bear a delivery point barcode, 
would not have to be automation-compatible, and would be labeled 
``MAN'' (even if the pieces are automation-compatible).
    Pieces mailed with an exceptional or occupant address format (A040) 
do contain the enough address elements to generate a delivery point 
barcode, and therefore, must be automation-compatible and must have a 
delivery point barcode in order to claim the high density or saturation 
letter rates.
    Software vendors should note that, as proposed, within each of the 
three processing categories, the same content identifier number (CIN) 
would be used for all direct carrier route trays (full trays of mail 
for a single carrier route).
    Mailers would not be permitted to combine barcoded and nonbarcoded 
pieces into the same mailing. As an example, a mailer has 200 pieces to 
a single carrier route but was able to barcode only 175 of those 
pieces. The barcoded pieces would be placed in a direct carrier route 
tray and would qualify for the saturation letter rate. The remaining 25 
nonbarcoded pieces would qualify for the saturation nonletter rate 
(saturation because the density requirement has been met, nonletter 
because the pieces do not meet the new barcode requirement) but cannot 
be placed in the direct carrier route tray. Instead, the nonbarcoded 
pieces would be packaged in walk sequence and placed in a 5-digit 
carrier routes tray or a 3-digit carrier routes tray with other carrier 
route packages of nonbarcoded mail. It is possible that, for a single 
5-digit destination, a mailer could create two 5-digit carrier routes 
trays: one that contains packages of barcoded mail, and one that 
contains packages of nonbarcoded mail.
    The new requirements for high density and saturation letters would 
take effect when the new rates are implemented; however, the Postal 
Service is proposing a 6-month phase-in period for the tray label 
changes.
    A minor change would be made to the wording in the DMM for how to 
qualify for high density rates. Currently, there are two ways to meet 
the density requirement: there must be at least 125 pieces for a single 
carrier route or, if there are fewer than 125 possible deliveries on 
the route, a piece must be addressed to every delivery on the route. To 
qualify for saturation rates, pieces must be addressed to at least 90% 
of the active residential deliveries or at least 75% of the total 
active deliveries. If a customer is meeting the high density standard 
by addressing a piece to each possible delivery (100%), then they also 
would qualify for saturation rates under either the 90% standard or the 
75% standard, and would of course claim the lower saturation rate. 
Therefore, because no mailer would ever choose to qualify for the high 
density rate via the 100% standard, it would be eliminated.
(5) Heavier ECR Saturation and High Density Letters Are Eligible for 
Letter Rates
    The maximum weight limit for automation-compatible ECR letters 
would increase from 3.3 ounces to 3.5 ounces (inclusive). These pieces 
would be charged postage equal to the nonletter piece/pound rate for 
that piece and receive a discount equal to the nonletter piece rate 
(3.3 ounces or less) minus the corresponding letter piece rate (3.3 
ounces or less) for the appropriate sort level. This proposed change 
would apply to regular and nonprofit ECR saturation and high density 
letters.
    For regular ECR, the discount would be $0.005 per piece for high 
density letters and $0.008 per piece for saturation letters. For 
nonprofit ECR, the discount would be $0.008 per piece for high density 
letters and $0.009 per piece for saturation letters.
    This change also would apply to pieces mailed at the ECR automation 
basic rate, but the calculation is slightly different because there are 
no corresponding nonletter rates with which to perform the calculation. 
These pieces would be charged postage equal to the basic nonletter 
piece/pound rate and receive a discount equal to the basic letter rate 
minus the automation basic letter rate. For regular ECR, the discount 
would be $0.023 per piece. For nonprofit ECR, the discount would be 
$0.015 per piece.
    In this proposal, all pieces mailed at high density and saturation 
letter rates will be automation-compatible; therefore, this change is 
consistent with the proposed change for regular Standard Mail heavy 
automation letters. This change would not apply to letter-size pieces 
that are mailed at the nonletter rates (because they are not automation 
compatible or do not have a barcode).
    This change would not apply to pieces mailed at the ECR basic 
letter rate (because the letter and nonletter rates are the same, there 
would be no discount to subtract) or to pieces mailed at the ECR 
automation basic letter rate (because there are no corresponding 
nonletter rates with which to perform the rate calculation) (see 
R600.2.0 and R600.4.0).
    As an example, using the proposed postage rates, a high density 
letter weighing 3.4 ounces that is prepared for DSCF entry would be 
charged:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
Nonletter piece rate (more than 3.3 ounces), high density..       $0.043
------------------------------------------------------------------------
Plus.......................................................
------------------------------------------------------------------------
Nonletter pound rate (more than 3.3 ounces), high density,        0.1031
 DSCF entry (3.4 ounces divided by 16 ounces equals 0.2125
 pounds, multiplied by $0.485 per pound) (rounded off to
 four decimal places)......................................
------------------------------------------------------------------------
Equals.....................................................       0.1461
------------------------------------------------------------------------
Minus a discount that equals the high density nonletter            -.005
 piece rate (3.3 ounces or less) for DSCF entry minus the
 high density letter piece rate (3.3 ounces or less) for
 DSCF entry (0.143 minus 0.138)............................
------------------------------------------------------------------------
Equals postage per piece...................................      $0.1411
------------------------------------------------------------------------


[[Page 4568]]

    This proposed change would allow mailers to avoid the substantial 
rate increase for letter-shaped pieces exceeding 3.3 ounces. Under the 
current rate schedule, once an ECR letter exceeds the 3.3-ounce maximum 
weight, the pieces become subject to the piece/pound rates.
    There are no proposed mail preparation changes that accompany this 
change; these heavy letters would be required to meet the current 
standards for heavy automation letters in DMM C810.7.5 and would use 
the existing mail preparation sequence and labeling for ECR letters. 
Mailers who choose to take this discount for heavy letters would be 
required to use a new postage statement to be designed for this 
purpose.
(6) Containerization and Labeling
    For letter-size pieces, the definition of a full tray would change 
from the current threshold of 75% to 100%, with a range between 75% and 
100%. The recommended default for presort software would be 85%. In 
addition, after the minimum volume for rate eligibility is reached 
(i.e., 150 pieces for a 3-digit area), overflow would be optional for 
all sort levels of letter trays. Also, mailers would be required to use 
as few trays as possible: Under current standards, a mailer could 
prepare one full 1-foot tray plus one less-than-full 1-foot tray; new 
standards would result in the preparation of a single less-than-full 2-
foot tray.
    In addition, the minimum volume of trays on pallets would be 
measured in linear feet, not by the number of layers of trays.
    On all Standard Mail letter trays, ``LTRS'' would change to ``LTR'' 
and ``CR-RTS'' would change to ``CR-RT.'' This change would be 
necessary to allow more room for other information on the tray label.
(7) Documentation
    Mailers would no longer be required to present a hard copy Form 
3553, Coding Accuracy Support System (CASS) Summary Report, with their 
mailings. Instead, mailers or mailer agents would be required to keep 
this documentation on file for 1 year from the date of mailing and make 
it available to the Postal Service on 24-hour notice.
    Software vendors and mailers should note that changes are proposed 
for manifest keyline rate codes (P910.3.0) and Multi-line Optical 
Character Reader (MLOCR) rate markings (P960.3.0) to reflect the new 
Standard Mail rates.

6. Package Services

    There are four subclasses of Package Services: Parcel Post, Bound 
Printed Matter, Media Mail, and Library Mail. Each subclass is 
addressed separately in items 7 through 10.

7. Parcel Post

a. Parcel Post Rate Highlights
    Parcel Post rates would increase an average of 10%. The 
nonmachinable surcharge for Inter-BMC Parcel Post would increase from 
$2.00 to $2.75 per parcel. The Intra-BMC and DBMC nonmachinable 
surcharges would remain at their current levels: $1.35 for Intra-BMC 
parcels and $1.45 for DBMC parcels. The Parcel Post Origin BMC Presort 
and BMC Presort discounts would increase from $0.90 to $1.17 and $0.23 
to $0.28 per piece, respectively. The barcoded discount for qualifying 
Parcel Post (including Parcel Select) machinable parcels would remain 
at $0.03 per piece.
b. Parcel Post Rate Structure
    Two changes are proposed. First, Parcel Select pieces would be 
eligible for no-fee electronic Delivery Confirmation. The other change 
would create a DSCF rate for nonmachinable parcels sorted to 3-digit 
ZIP Code prefixes and entered at destination SCFs. The pieces would be 
charged a surcharge of $1.09 per parcel in addition to the applicable 
DSCF rate.
c. Parcel Post Mail Preparation Changes
    Except for a new 3-digit nonmachinable parcel preparation option 
added for DSCF rate mail, there would be no other changes to the 
preparation requirements for Parcel Post and Parcel Select.

8. Bound Printed Matter

a. Bound Printed Matter Rate Highlights
    The Bound Printed Matter (BPM) rates would increase an average of 
9.1%. Destination entry mailings would be eligible for discounts that 
encourage the deposit of mail at the destination BMC, SCF, or delivery 
unit. There are two major changes to BPM rates: Separate rates for BPM 
flats and parcels, and a new POSTNET barcoded discount for single-piece 
rate and presorted rate BPM flats. The parcel barcoded discount for 
presorted rate BPM single-piece and presorted rate machinable parcels 
would remain at $0.03 per piece.
b. Bound Printed Matter Rate Structure
    Rates for flat-size BPM would be lower than the rates for BPM 
parcels in all three rate categories (single-piece, presorted, and 
carrier route) and in the three available destination entry rates (DDU, 
DSCF, and DBMC). A $0.03 discount would be available for single-piece 
and presorted rate BPM flats prepared with a POSTNET barcode. To 
qualify for the barcoded discount, BPM flats would be required to meet 
the standards in DMM C820 for flat sorting machine (FSM) 881 
processing.
c. Bound Printed Matter Mail Preparation Changes
    BPM barcoded flats would be prepared using the standards in DMM 
M820.

9. Media Mail

a. Media Mail Rate Highlights
    Media Mail rates would increase an average of 4%.
b. Media Mail Rate Structure
    There would be one fundamental change to the Media Mail rate 
structure. The 5-digit rate would be retained, but the BMC rate would 
be renamed the basic rate.
c. Media Mail Preparation Changes
    There would be two changes to the preparation requirements for 
Media Mail. The BMC sort level would be renamed the basic sort level. 
This change would allow the Postal Service to adjust the presort 
requirements for Media Mail to reflect current processing. Machinable 
parcels would continue to be presorted to BMCs using the new basic rate 
level.
    The second change would eliminate the requirement for separate 
minimum volumes for each presort level and would reduce the minimum 
volume requirement for a mailing from 500 to 300 pieces. To qualify for 
presorted Media Mail, mailers would be required to have a minimum of 
300 properly prepared and presorted pieces. Pieces in the mailing that 
meet 5-digit rate requirements would be eligible for the 5-digit rate. 
The remaining pieces in the mailing would be eligible for the basic 
rate.

10. Library Mail

a. Library Mail Rate Highlights
    Library Mail rates would increase an average of 3.3%.
b. Library Mail Rate Structure
    There would be one fundamental change to the Library Mail 
structure. The 5-digit rate would be retained, but the BMC rate would 
be renamed the basic rate.
c. Library Mail Preparation Changes
    There would be two changes to the preparation requirements for 
Library

[[Page 4569]]

Mail. The BMC sort level would be renamed the basic sort level. This 
change would allow the Postal Service to adjust the presort 
requirements for Library Mail to reflect current processing. Machinable 
parcels would continue to be presorted to BMCs using the new basic rate 
level.
    The second change would eliminate the requirement for separate 
minimum volumes for each presort level and would reduce the minimum 
volume requirement for a mailing from 500 to 300 pieces. To qualify for 
presorted Library Mail, mailers would be required to have a minimum of 
300 properly prepared and presorted pieces. Pieces in the mailing that 
meet the 5-digit rate requirements would be eligible for the 5-digit 
rate. The remaining pieces in the mailing would be eligible for the 
basic rate.

11. Special Services and Other Services

a. Special Services Highlights
(1) Bulk Parcel Return Service (DMM S924)
    The annual accounting fee for bulk parcel return service (BPRS) 
would increase from $375 to $475. The annual permit fee would increase 
from $125 to $150 and the per piece charge would increase from $1.62 to 
$1.80. See DMM R900.3.0.
(2) Business Reply Mail (DMM S922)
    The per piece charge for high volume Qualified Business Reply Mail 
(QBRM) with the optional quarterly fee would decrease from $0.01 to 
$0.008. The QBRM quarterly fee of $1,800 for that category would remain 
the same. The basic QBRM per piece charge for the category without the 
optional quarterly fee would increase from $0.05 to $0.06. The annual 
permit fee for all business reply mail (BRM) would increase from $125 
to $150. The monthly fee for bulk weight averaged nonletter-size BRM 
would increase from $600 to $750, while the per piece charge would 
remain the same. The annual accounting fee for advanced deposit 
accounts would increase from $375 to $475. The regular BRM per piece 
charge without an annual accounting fee would increase from $0.35 to 
$0.60 per piece. See DMM R900.4.0.
(3) Certificate of Mailing (DMM S914)
    Certificate of mailing fees would increase. For individual pieces, 
the original certificate would increase from $0.75 to $0.90, the firm 
mailing book (Form 3877) would increase from $0.25 to $0.30 for each 
piece listed, and the charge for a duplicate copy would increase from 
$0.75 to $0.90.
    For bulk pieces (Form 3606), fees for the first 1,000 pieces or 
fraction thereof would increase from $3.50 to $4.50. Each additional 
1,000 pieces or fraction thereof would increase from $0.40 to $0.50, 
and the charge for a duplicate copy would increase from $0.75 to $0.90. 
Additional mailpieces listed on Form 3877 and having postage paid with 
a permit imprint would be permitted to pay the certificate of mailing 
fee using a permit imprint account. See DMM R900.6.0.
(4) Certified Mail (DMM S912)
    The certified mail fee would increase from $2.10 to $2.30. A new 
service enhancement would be introduced to allow mailers to access 
delivery information for certified mail over the Internet at 
www.usps.com by providing the certified article number. See DMM 
R900.7.0.
(5) Collect on Delivery (DMM S921)
    There would be no change to the current collect on delivery (COD) 
fees. See DMM R900.8.0.
(6) Delivery Confirmation (DMM S918)
    Retail (manual) and electronic Delivery Confirmation options would 
be extended to First-Class Mail parcels. For Package Services, Delivery 
Confirmation would be restricted to parcels only and would no longer be 
available for flat-size mail. For First-Class Mail parcels, the fee 
would be $0.13 for the electronic option and $0.55 for the retail 
option. The fee for the retail option for Priority Mail would increase 
from $0.40 to $0.45. For Standard Mail, the fee for the electronic 
option would increase from $0.12 to $0.13. For Parcel Select, the 
electronic option would be included in postage. For all other Package 
Services, the fee would increase from $0.12 to $0.13 for the electronic 
option and from $0.50 to $0.55 for the retail option. See DMM R900.9.0.
    For the purposes of adding Delivery Confirmation, a parcel would be 
defined as any piece that has an address side with sufficient surface 
area to fully display the delivery address, return address, postage, 
markings and endorsements, and the Delivery Confirmation label. The 
parcel would be required to be in a box, or if not in a box, would be 
required to be more than \3/4\-inch thick at its thickest point.
(7) Express Mail Insurance (DMM S500)
    Insurance coverage included with Express Mail service would be 
lowered from $500 to $100. Incremental fees would be applied at $1.00 
per each $100 of desired merchandise insurance coverage over $100. 
Document reconstruction maximum liability would decrease from $500 to 
$100. See DMM R900.11.0.
(8) Insurance (DMM S913)
    The fee for unnumbered insurance of up to $50 (no insured number 
applied) would increase from $1.10 to $1.30. The fee for numbered 
insurance service over $50 and up to $100 (insured number applied) 
would increase from $2.00 to $2.20. The incremental fee of $1.00 for 
each $100 in value over $100 and up to $5,000 would remain the same. 
See DMM R900.12.0.
(9) Merchandise Return Service (DMM S923)
    The annual accounting fee for merchandise return service would 
increase from $375 to $475. The annual permit fee would increase from 
$125 to $150. See DMM R900.14.0.
(10) Money Orders (DMM S020)
    There would be two classification changes for money orders. The 
first change would increase the maximum amount from $700 to $1,000 for 
both domestic and APO/FPO money orders. The second change would 
introduce a two-level fee structure for domestic money orders. The fee 
for amounts of $0.01 to $500 would be $0.90, and the fee for amounts of 
$500.01 to $1,000 would be $1.25. The inquiry fee would increase from 
$2.75 to $3.00. The fee for APO/FPO money orders would remain the same. 
See DMM R900.16.0.
(11) Parcel Airlift (DMM S930)
    Parcel Airlift (PAL) fees would increase. For parcels weighing not 
more than 2 pounds, the fee would increase from $0.40 to $0.45. For 
parcels not more than 3 pounds, the fee would increase from $0.75 to 
$0.85. For parcels not more than 4 pounds, the fee would increase from 
$1.15 to $1.25. For parcels over 4 pounds but not more than 30 pounds, 
the fee would increase from $1.55 to $1.70. See DMM R900.17.0.
(12) Registered Mail (DMM S911)
    All registered mail fees would increase. The fee for registered 
mail without insurance would increase from $7.25 to $7.50. The 
incremental fee for registered mail with insurance per declared value 
level would increase from $0.75 to $0.85. The handling charge per 
$1,000 in value or fraction thereof for items valued over $25,000 also 
would increase from $0.75 to $0.85. A new service enhancement would be 
introduced to allow mailers to access delivery information for 
registered mail over the Internet at www.usps.com by

[[Page 4570]]

providing the registered article number. See DMM R900.21.0.
(13) Restricted Delivery (DMM S916)
    The fee for restricted delivery would increase from $3.20 to $3.50. 
See DMM R900.22.0.
(14) Return Receipt (DMM S915)
    The fee for regular return receipt service would increase from 
$1.50 to $1.75. The fee for return receipt after mailing would decrease 
from $3.50 to $3.25. A new service option would offer an electronic 
return receipt that includes delivery information and a copy of the 
signature to mailers who furnish an e-mail address at the point of 
purchase or preregister on the Internet at www.usps.com (available Fall 
2002). Mailers would also have the option to purchase a return receipt 
after mailing over the Internet using a credit card (available Fall 
2002). The new electronic return receipt fee would be $1.30. See DMM 
R900.23.0.
(15) Return Receipt for Merchandise (DMM S917)
    The fee for return receipt for merchandise would increase from 
$2.35 to $3.00. See DMM R900.24.0.
(16) Signature Confirmation (DMM S919)
    Retail (manual) and electronic Signature Confirmation options would 
be extended to First-Class Mail parcels. For Package Services, 
Signature Confirmation would be restricted to parcels only and would no 
longer be available for flat-size mail. For First-Class Mail parcels, 
the fee would be $1.30 for the electronic option and $1.80 for the 
retail option. The fee for the retail option for Priority Mail would 
increase from $1.75 to $1.80. For Package Services parcels, the fee 
would increase from $1.25 to $1.30 for the electronic option and from 
$1.75 to $1.80 for the retail option. See DMM R900.26.0.
    For the purposes of adding Signature Confirmation, a parcel would 
be defined as any piece that has an address side with sufficient 
surface area to fully display the delivery address, return address, 
postage, markings and endorsements, and the Signature Confirmation 
label. The parcel would be required to be in a box, or if not in a box, 
would be required to be more than \3/4\-inch thick at its thickest 
point.
(17) Special Handling (DMM S930)
    The fees for special handling would increase from $5.40 to $5.95 
for pieces weighing up to 10 pounds and from $7.50 to $8.25 for pieces 
weighing over 10 pounds. See DMM R900.27.0.
b. Other Services Highlights
(1) Address Correction Service (DMM F030)
    The fee for manual address correction service (ACS) notices would 
increase from $0.60 to $0.70. The fee for automated ACS would remain 
the same at $0.20. See DMM R900.1.0.
(2) Address Sequencing Service (DMM A920)
    The fee for carrier sequencing of address cards service would 
increase from $0.25 to $0.30 per card. See DMM R900.2.0.
(3) Caller Service (DMM D920)
    The caller service fee for each separation provided per semiannual 
period would increase from $375 to $412. The fee for each reserved call 
number per calendar year would increase from $30 to $32. See DMM 
R900.5.0.
(4) Mailing List Service (DMM A910)
    The charge for correction of mailing lists would increase from 
$0.25 to $0.30 per correction. The minimum per list charge also would 
increase from $7.50 to $9.00 per list. The charge for sortation of 
mailing lists on cards into groups labeled by 5-digit ZIP Code would 
increase from $73 to $100. The charge for address changes for election 
boards would increase from $0.23 to $0.27. See DMM R900.13.0.
(5) Meter Service (DMM P030)
    The fee for on-site meter service (per employee, per visit) would 
increase from $31 to $35. The fee for meter resetting and/or 
examination would increase from $4.00 to $5.00 per meter. The fee for 
check in/out of service (per meter) would remain the same. See DMM 
R900.15.0.
(6) Permit Imprint (DMM P040)
    The permit imprint application fee would increase from $125 to 
$150.
(7) Pickup Service (DMM D010)
    The fee for pickup service, available for Express Mail, Priority 
Mail, and Parcel Post, would increase from $10.25 to $12.50 (per 
pickup). See DMM R900.18.0.
(8) Post Office Box Service (DMM D910)
    Overall, post office (PO) box fees would increase. A new PO box fee 
category would be introduced for PO box service in the lowest-cost 
cities and highest-cost rural areas. This new fee group would provide a 
bridge to eventually move high-cost and low-cost ZIP Codes toward more 
appropriate fee assignments. PO box key duplication or replacement 
(after first two keys) would increase from $4.00 to $4.40 each. PO box 
lock replacement would increase from $10 to $11.
    There would be no proposed change to no-fee PO box service (Group 
E). See DMM R900.20.0.
(9) Shipper Paid Forwarding (DMM F010)
    The accounting fee would increase from $375 to $475. See DMM 
R900.25.0.
(10) Stamped Cards and Stamped Envelopes
    The fee for stamped cards would remain the same. Special stamped 
envelopes (i.e., those with holograms or patch-in stamps) are no longer 
offered. The fees for the other types of available stamped envelopes 
would remain the same.

Part B--Summary of Changes to the Domestic Mail Manual

    The following information details the R2001-1 proposed changes 
organized by DMM module. This information is intended as an overview 
only and should not be viewed as defining every proposed DMM revision. 
The actual proposed DMM changes appear in this notice after Part B.

A  Addressing

    A010 would be amended to remove information about upgradable mail 
(already included in C830) and to move Exhibit 4.5 to C830.1.0.
    The title of A800 would be changed to show the standards apply to 
all automation-compatible mail, not just mail claimed at automation 
rates.
    A950 would be revised to clarify that the mailer's signature on a 
postage statement certifies the mail meets the requirements for the 
rates claimed and to change the requirements for filing Form 3553, 
Coding Accuracy Support System (CASS) Summary Report. Mailers would no 
longer be required to submit Form 3553 with each mailing. They would 
have to retain the form on file for 1 year from the date of mailing and 
make it available to the Postal Service on 24-hour notice.

C  Characteristics and Content

    C010 would be amended to show that Standard Mail ECR pieces are 
subject to the standards for mailpiece dimensions and to remove 
information about the First-Class Mail nonstandard surcharge. C050 
would be amended to add the nonmachinable criteria for letters.

[[Page 4571]]

Exhibit C050.2.0 would be renumbered as Exhibit C050.1.0.
    C100.2.0 would be revised to implement proposed changes to the 
Domestic Mail Classification Schedule (DMCS) for pieces mailed at 
First-Class Mail card rates. This DMCS change would clarify the 
standards for physical construction, formatting, and addressing for 
card rate pieces. C100.4.0 would be revised to reflect changes to the 
nonmachinable surcharge (formerly the nonstandard surcharge) for some 
First-Class Mail letters and flats.
    C810 would be amended to remove references to upgradable First-
Class Mail and Standard Mail, to increase the weight limit for Standard 
Mail automation and ECR letters to 3.5 ounces, and to clarify that 
signing a postage statement certifies the mail meets the requirements 
for the rates claimed.
    C820 would be amended to add a weight limit for Bound Printed 
Matter flats claimed at automation flat rates.
    C840 would be amended to remove references to add barcode standards 
for ECR saturation and high density pieces and to remove references to 
upgradable mail.

D  Deposit, Collection, and Delivery

    D210.3.4 would be amended to reflect the change that the 
destination sectional center facility (DSCF) rate would apply to 
eligible mail entered at the DSCF under exceptional dispatch. D210.4.0 
would be revised to show that the DSCF rate would not apply to mail 
entered at airport mail facilities (AMFs).
    The provisions for Periodicals contingency entries would be deleted 
in D230.2.2 and 4.6.
    D500 would be amended to include several additional provisions that 
affect postage refund requests for Express Mail when the service 
guarantee is not met.

E  Eligibility

E100

    E110.3.0 would be amended to implement changes to the Domestic Mail 
Classification Schedule (DMCS) for pieces mailed at First-Class Mail 
card rates.
    E120.2.2 would be amended to change the current Priority Mail flat 
rate priced at the 2-pound rate to the new 1-pound rate, regardless of 
the weight of the material placed in the flat-rate envelope. E120.2.4 
reflects changes to the correct postage for keys and identification 
devices. When they weigh more than 13 ounces but not more than 1 pound, 
they would be returned at the 1-pound rate plus the fee shown in 
R100.10.0. Keys and identification devices that weigh more than 1 pound 
but not more than 2 pounds would be charged at the 2-pound Priority 
Mail rate plus the fee in R100.10.0.
    E130 would be amended to show that the nonmachinable surcharge 
would apply to keys and identification devices, certain letter-size and 
flat-size pieces mailed at single-piece and Presorted rates, and all 
pieces where the mailer chooses the ``manual only'' (do not automate) 
preparation option. It also would be amended to clarify that signing a 
postage statement certifies the mail meets the requirements for the 
rates claimed.
    E140 would be amended to reorganize the information about rate 
application into two separate sections: one for cards and letter-size 
mail (2.0) and one for flat-size mail (3.0). E140.2.0, Rate Application 
for Cards and Letters, would be amended to replace the basic rate with 
the new AADC and mixed AADC rates. E140.3.0, Rate Application for 
Flats, would be amended to replace the basic rate with the new ADC and 
mixed ADC rates and to clarify the definition of a piece that is 
subject to the nonmachinable surcharge. E140 would be amended to 
clarify that signing a postage statement certifies the mail meets the 
requirements for the rates claimed.

E200

    E217.1.0 and 3.0 would be amended to reflect references to the new 
destination area distribution center (DADC) rates and discounts for 
Outside-County and Outside-County Science-of-Agriculture rates. 
E217.5.0 would be restructured for clarity and amended to include 
standards for the new per piece pallet and per piece destination entry 
pallet discounts.
    The standards for combining multiple publications or editions in 
E220.3.0 and E230.4.0 would be consolidated into new M230. E220 and 
E240 would be amended to clarify that signing a postage statement 
certifies the mail meets the requirements for the rates claimed.
    The proposal amends E250 by adding a new 1.0 that provides 
standards for new DADC rate eligibility, and renumbering former 1.0 
(DSCF) and 2.0 (DDU) as 2.0 and 3.0, respectively. New E250.2.0 would 
reflect the change requiring DSCF rate mail to be entered at the SCF or 
another postal-designated facility. It is proposed to further amend 
E250.2.0 to clarify that DSCF rates do not apply to mail placed in an 
ADC, AADC, mixed ADC or mixed AADC sack or tray, or on an ADC or mixed 
ADC pallet.
    New E260 (former G094) would describe the standards for the 
Periodicals Ride-Along classification and rate, which is proposed to 
become a permanent classification. All of G094 would be moved except 
for 2.0 and 3.0. Former 2.0, which contains rate information, would 
appear as part of R200. Former 3.0 would be deleted, as publishers 
would no longer be required to submit additional documentation with 
Ride-Along mailings.

E500

    E500 would be amended to change the current 2-pound Express Mail 
flat rate to the new \1/2\-pound rate regardless of the weight of the 
material placed in the flat-rate envelope.

E600

    E610.8.0 would be amended to remove references to upgradable 
Standard Mail.
    E620 would be amended to remove references to upgradable mail and 
to show that the nonmachinable surcharge may apply to letter-size 
pieces that weigh 3.3 ounces or less and to all pieces where the mailer 
chooses the ``manual only'' (do not automate) option. New language 
would be added to explain the discount for automation-compatible pieces 
that weigh between 3.3 and 3.5 ounces.
    E630 would be reorganized for clarity. Standards would be added to 
show that letter-size pieces mailed at saturation and high density 
letter rates must be automation-compatible and must have a delivery 
point barcode.
    E640 would be amended to replace the basic automation letter rate 
with the new AADC and mixed AADC rates and to add the discount for 
automation letters that weigh between 3.3 and 3.5 ounces. E640.2.0 
would be amended to add the discount for ECR basic automation letters 
that weigh between 3.3 and 3.5 ounces.
    E620 and E640 would be amended to clarify that signing a postage 
statement certifies the mail meets the requirements for the rates 
claimed.

E700

    E712.1.1b would be revised to add a weight limit for BPM flats 
claiming the barcoded discount. E712.1.4, which excluded BPM flats from 
eligibility to receive an automation rate, would be removed. E712.2 
would be amended to add a new standard for BPM automation flats. 
E712.2.0e would be added to include a barcoded discount for automation 
flats. E712.3.0 would be amended to clarify that the mailer's signature 
on the postage statement

[[Page 4572]]

certifies the mail meets the requirements for the rates claimed.
    E713 and E714 would be revised in their entirety to reflect the 
format used for BPM in E712, E713 and E714 would be amended to change 
references from ``BMC rate'' to ``basic rate'' and from ``500 pieces'' 
to ``300 pieces.'' E713 and E714 would be revised to allow preparation 
of Media Mail and Library Mail mailings with two presort levels.
    E751.1.1 would be amended to add provisions to require mail on 
pallets for 3-digit ZIP Code prefixes to be entered at the SCF. 
E751.1.4a would be amended to clarify that nonmachinable parcels sorted 
to 3-digit ZIP Code prefixes must be entered at a designated SCF. In 
E751.2.2c, d, and e, references would be added to allow the preparation 
of ``3-digit sacks'' and ``3-digit pallets.'' E751.5 and E753 would be 
amended to change the references from ``BMC rate'' to ``basic rate.''

F  Forwarding and Related Services

    F010.4.0 would be amended to remove references to nonstandard mail. 
F010.5.2 would be amended to show the nonmachinable surcharge can be 
charged on Periodicals returned at First-Class Mail single-piece rates. 
F010.5.3 would be amended to show the First-Class Mail single-piece 
nonmachinable surcharge is included in the calculation of the weighted 
fee for returned pieces and is charged on some returned Standard Mail 
pieces. F010.6.0 would be amended to include these same changes.
    F030.1.6 would be amended to clarify the circumstances under which 
address notices are not provided by the Postal Service.

G  General Information

    G091.4.0 would be revised to clarify that First-Class Mail 
automation letter-size pieces and parcels, First-Class automation 
cards, Standard Mail automation letter-size pieces, and Standard Mail 
Nonprofit automation letter-size pieces, using NetPost Mailing Online 
would be eligible for the mixed AADC rate. First-Class Mail automation 
flat-size pieces and parcels would be eligible for the mixed ADC rate. 
Flat-size pieces at the regular and nonprofit Standard Mail automation 
rates would be eligible for the basic rates. First-Class Mail that is 
not eligible for any automation rate would be subject to the applicable 
single-piece rates.
    The Ride-Along classification in G094 would be made a permanent 
classification. Therefore, the standards currently in G094 would be 
relocated to new E260.

L  Labeling Lists

    The titles and summaries, as appropriate, of labeling lists L001, 
L800, L802, and L803 would be amended to reflect new mail preparation 
options.

    Note: New labeling list L006 and the accompanying 5-digit metro 
pallet sort for packages of flats is effective on March 31, 2002. 
Notice of this change was published in Postal Bulletin 22066 (12-27-
01).

M  Mail Preparation and Sortation

M000

    M011.1.3 would be amended to show that a full letter tray is 
defined as one that is between 75% and 100% full. M011.1.4 would be 
amended to remove references to upgradable mailings, to show that 
machinable and nonmachinable pieces cannot be part of the same mailing, 
and to show that ECR letter pieces cannot be part of the same mailing 
as nonletter rate pieces. M012.2.0 would be revised to update 
information about MLOCR markings. M012.3.3 would be revised to include 
additional rate markings for BPM presorted automation flats and BPM 
carrier route flats. M012.4.5 would be deleted to remove references to 
upgradable mail.
    The summary for M020 would be amended to include references to 
Media Mail and Library Mail. M020.1.6 would be amended to add Media 
Mail and Library Mail in the package size requirements. In addition, 
the maximum weight for packages in sacks would be 20 pounds unless 
otherwise noted, and packages of BPM automation flats would have to 
meet the preparation requirements in M820. M020.2.0 would be amended to 
include additional standards for packaging Media Mail and Library Mail. 
M020.2.1 would be amended to remove references to the upgradable 
preparation for First-Class Mail and Standard Mail and to show that 
nonmachinable and ``manual only'' pieces must be packaged. M020.2.2 
would be amended to require that Media Mail and Library Mail pieces 
meet specific weight limits when placed in sacks or on pallets.
    The container labeling requirements in M031.5.0 would be amended to 
revise the Line 2 code for ``carrier routes,'' ``letters,'' and 
``machinable'' and to add a new Line 2 code for ``manual.'' Exhibit 
M032.1.3a would be amended to change the content identifier number 
(CIN) codes for the new machinable and nonmachinable preparation for 
First-Class Mail and Standard Mail letter-size pieces. The exhibit also 
would be amended to add new CIN codes for Standard Mail ECR letters and 
designate CIN codes for certain Package Services flat-size pieces. 
M033.2.0 would be amended to clarify standards for filling letter 
trays.
    M041.5.0 and M041.5.6 would be amended to show that the minimum 
volume for letter trays on pallets is measured in linear feet, not by 
the number of layers of trays on the pallet. M041.5.5 would be amended 
to clarify the maximum load of a pallet. M045.3.2 would be amended to 
show that pallets of carrier route mail must show whether the mail is 
barcoded, machinable, or manual. M045.3.3 through M045.3.5 would show 
revised titles, including Media Mail and Library Mail. M045.6.0 would 
be removed and included in aforementioned sections. M050.4.1 would be 
amended to show that signing a postage statement certifies that the 
mail meets the requirements for the rates claimed.

M100

    M130 would be substantially revised to show the packaging, traying, 
and labeling standards for machinable, nonmachinable, and ``manual 
only'' letter-size mail.

M200

    To reduce redundancy, the standards for combining multiple 
publications or editions in M210.6.0 and M220.6.0 would be consolidated 
and relocated in new M230.

M600

    M610 would be substantially revised to show the packaging, traying, 
and labeling standards for machinable, nonmachinable, and ``manual 
only'' letter-size mail. M630 would be revised to show the new Line 2 
labeling for trays of ECR letter-size pieces.

M700

    M710.2.1 would be revised to add provisions for a 3-digit sort 
level for nonmachinable parcels claiming DSCF rates.
    M730 and M740 would be amended to change references from ``BMC 
rate'' to ``basic rate.'' M730 and M740 would also be amended to 
include separate preparation standards for Media Mail and Library Mail 
flats, irregular parcels, and machinable parcels.

M800

    M810.1.0 would be amended to replace references to the automation 
basic rate for letter-size pieces with the new AADC and mixed AADC 
rates. M810.2.0 would be amended to show the new Line 2 labeling 
formats for First-Class Mail and Standard Mail automation letters.

[[Page 4573]]

    M820.1.0 would be amended to replace references to the automation 
basic rate for flat-size pieces with the new ADC and mixed ADC rates. 
M820.6.1 would be revised to provide packaging and sacking standards 
for flat-size pieces eligible for the Bound Printed Matter automation 
rates.

P  Postage and Payment Methods

P000

    P011.1.0 would be amended to reflect that the nonstandard surcharge 
would be replaced with the new nonmachinable surcharge. P012.2.0 would 
be amended to add new rate level abbreviations for the AADC, ADC, mixed 
AADC, and mixed ADC rates. P012.3.0 would be amended to reflect 
references to the new DADC rate for Periodicals.
    P013.2.0 would be amended to reflect the new zoning of Priority 
Mail rates affecting all pieces over 1 pound and up to 5 pounds. This 
section would also be amended to reflect that each addressed Express 
Mail or Priority Mail flat-rate envelope would be charged the Express 
Mail rate for 1/2-pound or the Priority Mail rate for 1 pound, as 
applicable, regardless of the actual weight.
    P013.8.0 would be amended to show how to calculate postage for 
Standard Mail automation rate letter-size pieces and ECR automation-
compatible letter-size pieces that weigh more than 3.3 ounces.
    P014.5.0 would be amended to expand the circumstances under which 
the Postal Service may deny Express Mail postage refund requests when 
the service guarantee is not met.
    P021.3.1 would be amended to note the availability of stamped 
cards.

P100

    P100.4.0 and 5.0 would be amended to change ``nonstandard 
surcharge'' to ``nonmachinable surcharge.''

P200

    P200.1.5 would be amended to include requirements for separating 
DADC entry pieces if the mailing is not presented with mailing 
documentation at the time of postal verification. New P200.1.8 would 
contain the standards for the waiving of nonadvertising rates relocated 
from P200.2.4.

P600

    P600.2.1 would be amended to include standards for the new 
nonmachinable surcharge for Standard Mail.

P900

    P910 would be amended to add new rate category abbreviations for 
the AADC, ADC, mixed AADC, and mixed ADC rates for First-Class Mail and 
Standard Mail.
    P960 would be amended to clarify when MLOCR markings must appear on 
mailpieces and to add new MLOCR markings for the AADC, ADC, mixed AADC, 
and mixed ADC rates for First-Class Mail and Standard Mail.

R  Rates and Fees

    The entire R Module would be revised to reflect the proposed rates 
and fees for all classes of mail and special services.

S  Special Services

    S020 would be amended to increase the maximum amount of a single 
money order from $700 to $1,000.
    S010 and S500 would be amended to reduce the indemnity included in 
the base price of Express Mail service from $500 to $100.
    S911 and S912 would be amended to add that mailers can access 
delivery information over the Internet at www.usps.com. Mailers would 
be required to provide the certified mail or registered mail article 
number.
    S915 would be amended to add a new service option, available in 
Fall 2002, that would provide mailers with an electronic return receipt 
if they provide an e-mail address at the point of purchase or 
preregister on the Internet at www.usps.com. Also available in Fall 
2002, is another option that would allow mailers to purchase a return 
receipt after mailing via the Internet at www.usps.com.
    S918 and S919 would be amended to extend Delivery Confirmation and 
Signature Confirmation to First-Class Mail parcels, and also to limit 
this service to parcels only in the Package Services mail class. S918 
and S919 would also specify that for the purposes of adding Delivery 
Confirmation or Signature Confirmation service, a parcel would be 
required to meet the definition in C100.5.0 or C700.1.0, as 
appropriate.
    Although exempt from the notice and comment requirements of the 
Administrative Procedures Act [5 U.S.C. 553 (b), (c)] regarding 
proposed rulemaking by 39 U.S.C. 410(a), the Postal Service invites 
comments on the following proposed revisions of the Domestic Mail 
Manual (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) 
as follows:

A  Addressing

A000  Basic Addressing

A010  General Addressing Standards

1.0  ADDRESS CONTENT AND PLACEMENT
* * * * *
[Amend the title and content of 1.3 to replace ``nonstandard'' with 
``nonmachinable.'' No other changes to the text.]
* * * * *
2.0  ZIP CODE
* * * * *
[Amend the title and text of 2.3 to remove obsolete information about 
the DPBC numeric equivalent to read as follows:]
2.3  Numeric DPBC
    A numeric equivalent of a delivery point barcode (DPBC) consists of 
five digits, a hyphen, and seven digits as specified in C840. The 
numeric equivalent is formed by adding three digits directly after the 
ZIP+4 code.

[Remove 2.4, Class and Rate Standards.]
* * * * *
4.0  RETURN ADDRESS
* * * * *
[Remove 4.5, Upgradable Mail.]

[Redesignate Exhibit 4.5, OCR Read Area and Barcode Clear Zone, as 
Exhibit C830.1.1.]
* * * * *
[Amend the title of A800 to show that the unit contains standards that 
apply to any barcoded pieces, not just mail claimed at automation 
rates, to read as follows:]

A800  Addressing for Barcoding

1.0  Accuracy
* * * * *
1.3  Numeric DPBC
[Amend 1.3 to remove obsolete information about the DPBC numeric 
sequivalent to read as follows:]
    A numeric equivalent of the delivery point barcode (DPBC) consists 
of five digits, a hyphen, and seven digits, as specified in C840. The 
numeric

[[Page 4574]]

equivalent is formed by adding three digits directly after the ZIP+4 
code.
* * * * *

A950  Coding Accuracy Support System (CASS)

* * * * *
3.0  DATE OF ADDRESS MATCHING AND CODING
3.1  Update Standards
[Amend 3.1 to clarify that signing a postage statement certifies that 
the mail meets the requirements for the rates claimed to read as 
follows:]
    Unless Z4CHANGE is used, all automation and carrier route mailings 
bearing addresses coded by any AIS product must be coded with current 
CASS-certified software and the current USPS database. Coding must be 
done within 90 days before the mailing date for all carrier route 
mailings and within 180 days before the mailing date for all non-
carrier route automation rate mailings. All AIS products may be used 
immediately on release. New product releases must be included in 
address matching systems no later than 45 days after the release date. 
The overlap in dates for product use allows mailers adequate time to 
install the new data files and test their systems. Mailers are expected 
to update their systems with the latest data files as soon as 
practicable and need not wait until the ``last permissible use'' date 
to include the new information in their address matching systems. The 
mailer's signature on the postage statement certifies this standard has 
been met when the corresponding mail is presented to the USPS. The 
current USPS database product cycle is defined by the following matrix.
* * * * *
5.0  DOCUMENTATION
[Amend 5.1 to show that mailers must complete Form 3553 and to show 
that signing a postage statement certifies that the mail meets the 
requirements for the rates claimed to read as follows:]
5.1  Form 3553
    Unless excepted by standard, the mailer must complete a Form 3553 
for each mailing claimed at automation rates, carrier route Periodicals 
rates, Enhanced Carrier Route Standard Mail rates, and carrier route 
Bound Printed Matter rates. A computer-generated facsimile may be used 
if it contains the required data elements in a format similar to the 
USPS form. The data recorded on Form 3553 must refer only to the 
address list used to produce the mailing with which it is presented. 
The mailer certifies compliance with this standard when signing the 
corresponding postage statement.

[Amend 5.2 to show that supporting documentation does not have to be 
submitted with the mailing, but must be retained by the mailer or 
mailer's agent for 1 year to read as follows:]
5.2  Retention Period
    Form 3553 and other documentation must be kept by the mailer or the 
mailer's agent for 1 year from the date of mailing and be made 
available to the USPS on 24-hour notice.
* * * * *
5.5  Using a Single List
[Amend 5.5 by adding retention requirements to read as follows:]
    When a mailing is produced using all or part of a single address 
list, the mailer must retain one Form 3553 and other required 
documentation reflecting the summary output information for the entire 
list, as obtained when the list was coded. When the same address list 
is used for other mailings within 180 days of the date it was matched 
and coded, a copy of the Form 3553 must be retained with the 
documentation for each mailing.
5.6  Using Multiple Lists
[Amend 5.6 by adding retention requirements to read as follows:]
    When a mailing is produced using multiple address lists, the mailer 
must retain a consolidated Form 3553 summarizing the individual summary 
output and/or facsimile Forms 3553 for each list used (and other 
required documentation). As an alternative, the mailer may combine the 
addresses selected from the multiple lists into a single new list, 
reprocess the addresses using CASS-certified address matching software, 
and retain one Form 3553 for the summary output generated by that 
process.

[Remove current 5.7, redesignate 5.8 as 5.7, and amend by adding 
retention requirements to read as follows:]
5.7  Using CASS Certificate
    If the name of the CASS-certified company entered on Form 3553 does 
not appear on the list published by the USPS, a copy of the CASS 
certificate for the software used also must be retained by the mailer 
with the documentation.
* * * * *

C  Characteristics and Content

C000  General Information

C010  General Mailability Standards

1.0  MINIMUM AND MAXIMUM DIMENSIONS
* * * * *
1.3  Length and Height
[Remove 1.3b and redesignate current 1.3c as 1.3b. There are no other 
changes to the text. Standard Mail Enhanced Carrier Route pieces would 
be subject to the standards pertaining to length and height.]
* * * * *
[Remove 1.6, Nonstandard Surcharge.]
* * * * *

C050  Mail Processing Categories

1.0  BASIC INFORMATION
[Amend 1.0 to add a reference to new Exhibit 1.0 (redesignated Exhibit 
2.0) to read as follows:]
    Every mailpiece is assigned to one of the mail processing 
categories in the following sections. These categories are based on the 
physical dimensions of the piece, regardless of the placement 
(orientation) of the delivery address on the piece. Exhibit 1.0 shows 
the minimum and maximum dimensions for some mail processing categories.

[Redesignate Exhibit 2.0, Mail Dimensions, as Exhibit 1.0 and insert 
here.]
2.0  LETTER-SIZE MAIL
[Revise 2.0 to read as follows:]
2.1  Minimum and Maximum Size
    Letter-size mail is:
    a. Not less than 5 inches long, 3\1/2\ inches high, and 0.007 inch 
thick.
    b. Not more than 11\1/2\ inches long, 6\1/8\ inches high, and \1/
4\-inch thick.
2.2  Nonmachinable Criteria
    A letter-size piece is nonmachinable if it has one or more of the 
following characteristics (see C010.1.1 for how to determine the 
length, height, top, bottom, and sides of a mailpiece):
    a. Has an aspect ratio (length divided by height) of less than 1.3 
or more than 2.5.
    b. Is polybagged, polywrapped, or enclosed in any plastic material.
    c. Has clasps, strings, buttons, or similar closure devices.
    d. Contains items such as pens, pencils, keys, and loose coins that 
cause the thickness of the mailpiece to be uneven.
    e. Is too rigid (does not bend easily when subjected to a transport 
belt tension of 40 pounds around an 11-inch diameter turn).

[[Page 4575]]

    f. For pieces more than 4\1/4\ inches high or 6 inches long, the 
thickness is less than 0.009 inch.
    g. Has a delivery address parallel to the shorter dimension of the 
mailpiece.
    h. For folded self-mailers, the folded edge is perpendicular to the 
address, regardless of the use of tabs, wafer seals, or other 
fasteners.
    i. For booklet-type pieces, the bound edge (spine) is the shorter 
dimension of the piece or is at the top, regardless of the use of tabs, 
wafer seals, or other fasteners.
2.3  Automation Rates
    Letters and cards mailed at automation rates must meet the 
standards in C810.
* * * * *

C100  First-Class Mail

* * * * *
2.0  CARDS CLAIMED AT CARD RATES
[Revise 2.0 to implement new Domestic Mail Classification Schedule 
language for cards claimed at card rates to read as follows. The Postal 
Service is proposing a 6-month phase-in period for compliance with 
these standards (see sections 2.7 and 2.8). After the phase-in period, 
cards that do not meet the standards in 2.0 would not be eligible for 
card rates):]
2.1  Definition
    Cards eligible for card rates are:
    a. Stamped cards (cards with postage imprinted on them and supplied 
by the USPS). Three types of stamped cards are available. See P021.3.1.
    b. Postcards (commercially prepared mailing cards that meet the 
criteria of this section).
    c. Double cards (see 2.11). These cards consist of two attached 
postcards, one of which is designed to be detached by the recipient and 
mailed back as a reply. The reply half of a double card may be a 
business reply card (S922) or a merchandise return service label 
(S923.5.4).
2.2  Rates
    Cards can be prepared and mailed at First-Class Mail single-piece, 
Presorted, and automation rates. Cards that do not meet the applicable 
standards in 2.0 are not eligible for card rates.
2.3  Dimensions
    Each card or each half of a double card mailed at a card rate must 
be:
    a. Rectangular.
    b. Not less than 3\1/2\ inches high, 5 inches long, and 0.007 inch 
thick.
    c. Not more than 4\1/4\ inches high, 6 inches long, and 0.016 inch 
thick.
2.4  Paper Stock
    A card must be of uniform thickness and made of unfolded and 
uncreased paper from stock meeting the industry standard for a basis 
weight of 75 pounds or greater (with a tolerance of 4-pound basis 
weight). A card may be formed of one piece of paper or cardstock, or 
two pieces of paper that are permanently and uniformly bonded together. 
The cardstock may be of any light color that permits printing of 
legible addresses and markings.
2.5  Perforations
    A card may have perforations as long as they do not eliminate or 
interfere with any address element, postage, or postal markings and do 
not compromise the physical integrity of the card. A minimum ratio of 
50:50 (stock to perforations) is required.
2.6  Attachments
    A card may bear an attachment that is totally adhered to the card 
surface, not an encumbrance to postal processing, and one of the 
following:
    a. Made of paper, such as a label, wafer seal, or decal and is 
affixed by permanent adhesive, including an address label affixed by 
permanent adhesive for the delivery or return address.
    b. A small reusable seal or decal prepared with pressure-sensitive 
and nonremovable adhesive, designed to be removed from the first half 
of a double card and applied to the reply half.
2.7  Address Side and Delivery Address
    Cards eligible for and claimed at the single-piece rate are not 
subject to the standards in this section. The address side of the card 
must be formatted so that the delivery address, return address, 
postage, rate markings, and any ancillary service endorsement are 
clearly distinguished from any message and other nondelivery 
information. nondelivery information may not appear to the right of or 
below the delivery address. The delivery address must appear within an 
area:
    a. \1/2\ inch from the right edge of the card.
    b. \1/2\ inch from the left edge of the card.
    c. \5/8\ inch from the bottom edge of the card.
    d. The top line of the address block may be no more than 2\3/4\ 
inches from the bottom edge of the card.
2.8  Cards Divided Vertically
    Cards eligible for and claimed at the single-piece rate are not 
subject to the standards in this section. A card may be divided 
vertically into a right side and a left side, with or without a 
vertical rule. If used, a vertical rule may not extend lower than \5/8\ 
inch from the bottom edge of the card. The following standards also 
apply:
    a. The right side must measure at least 2\1/8\ inches wide from the 
right edge of the card.
    b. The postage, delivery address, and rate markings must appear on 
the right side.
    c. The delivery address lines must be uniformly left aligned; a 
minimum \1/4\-inch clear space must be maintained between the delivery 
address and the vertical rule, if used, or any nondelivery information 
on the left side.
    d. Nondelivery information may appear on the left side only, except 
that the information may extend into the right side of the card above 
the address block. Any such information extending into the right side 
must be shaded, surrounded by a border, or separated with a minimum \1/
4\-inch clear space between the postage, delivery address, return 
address, rate markings, and any ancillary service endorsement.
2.9  Postage and Rate Markings
    Cards eligible for and claimed at the single-piece rate are not 
subject to the standards in this section. Postage and rate markings 
must appear in the upper right of the address area or in the upper 
right corner of the card. A minimum \1/4\-inch clear space, with or 
without a border, must be maintained between nondelivery information 
and the postage, return address, rate markings, and any ancillary 
service endorsement.
2.10  Return Address
    If a mailer chooses to include a return address, it must be placed 
in the upper left corner of the address area or the upper left corner 
of the address side of the card.
2.11  Double Cards
    A double card must be folded before mailing and prepared so that 
the address on the reply half is on the inside when originally mailed. 
Enclosures in double cards are prohibited at card rates. The following 
standards apply:
    a. The first half of a double card must be detached when the reply 
half is mailed for return. The reply half must be used for reply only 
and may not be used to convey a message to the original addressee or to 
send statements of account. It may be formatted for reply purposes 
(e.g., contain blocks for completion by the addressee).
    b. Double cards that are not prepared in accordance with C810 are 
considered

[[Page 4576]]

nonmachinable and must be prepared as nonmachinable pieces under M130.
    c. Plain stickers, seals, or a single wire stitch (staple) may be 
used to fasten the open edge of double cards.
* * * * *
[Amend the title and content of 4.0 to reflect the new nonmachinable 
surcharge for some First-Class Mail letters and flats to read as 
follows:]
4.0  NONMACHINABLE PIECES
    Letter-size pieces that weigh 1 ounce or less and meet one or more 
of the nonmachinable characteristics in C050.2.2 may be subject to the 
nonmachinable surcharge (see E130 and E140). Nonletters (flats and 
parcels) that weigh 1 ounce or less are subject to the nonmachinable 
surcharge if any one of the following applies (see C010.1.1 for how to 
determine the length and height of a mailpiece):
    a. The piece is greater than \1/4\-inch thick.
    b. The length is more than 11\1/2\ inches or the height is more 
than 6\1/8\ inches.
    c. The aspect ratio (length divided by height) is less than 1.3 or 
more than 2.5.

[Redesignate section 5.0, Facing Identification Mark (FIM), as 6.0. Add 
new 5.0, Parcels, to read as follows:]
5.0  Parcels
    For the purposes of adding Delivery Confirmation and Signature 
Confirmation, a First-Class Mail parcel is defined as any piece that:
    a. Has an address side with enough surface area to fit the delivery 
address, return address, postage, rate markings and endorsements, and 
special service label; and,
    b. Is in a box, or if not in a box, is more than \3/4\-inch thick 
at its thickest point.
* * * * *

C200  Periodicals

Summary
[Revise the summary in C200 to read as follows:]
    C200 describes permissible mailpiece components (e.g., enclosures, 
attachments, and supplements) and impermissible or prohibited 
components for Periodicals mail. It also describes mailpiece 
construction and required printed features such as title, imprint, and 
publication address.
* * * * *

C600  Standard Mail

1.0  DIMENSIONS
1.1  Basic Standards
    These standards apply to Standard Mail:
* * * * *
[Redesignate 1.1c and 1.1d as 1.1d and 1.1e, respectively. Redesignate 
Exhibit 1.1d as Exhibit 1.1e. Add new 1.1c to require that some ECR 
letters must meet the physical standards for automation letters in C810 
to read as follows:]
    c. ECR pieces mailed at high-density and saturation letter rates 
must meet the standards for automation-compatible mail in C810.
* * * * *
[Redesignate 3.0, Postal Inspection, and 4.0, Enclosures, as 4.0 and 
5.0, respectively. Add new 3.0, Nonmachinable Pieces, to reflect the 
new nonmachinable surcharge for some Standard Mail letters to read as 
follows:]
3.0  NONMACHINABLE PIECES
    Letter-size pieces that weigh 3.3 ounces or less and meet one or 
more of the nonmachinable criteria in C050.2.2 may be subject to the 
nonmachinable surcharge (see E620).
* * * * *

C700  Package Services

1.0  PACKAGE SERVICES
    These standards apply to Package Services:
* * * * *
[Insert new 1.0h to read as follows:]
    h. For the purposes of adding Delivery Confirmation and Signature 
Confirmation, a Package Services parcel is defined as any piece that 
meets the following standards:
    (1) Has an address side with enough surface area to fit the 
delivery address, return address, postage, markings and endorsements, 
and special service label.
    (2) Is in a box, or if not in a box, is more than \3/4\-inch thick 
at its thickest point.
[Amend the title of 2.0 by adding ``Surcharge'' to read as follows:]
2.0  NONMACHINABLE SURCHARGE--PARCELS
* * * * *
[Amend the title of C800 by adding ``Machinable'' to read as follows:]

C800  Automation-Compatible and Machinable Mail

C810  Letters and Cards

1.0  BASIC STANDARDS
[Amend 1.0 to show that some ECR letters must meet the standards for 
automation-compatible mail to read as follows:]
    Letters and cards claimed at automation rates and at some Standard 
Mail Enhanced Carrier Route rates must meet the standards in 2.0 
through 8.0. Pieces claimed at First-Class Mail automation card rates 
also must meet the standards in C100. Unless prepared under 7.2 through 
7.4, each mailpiece must be prepared either as a sealed envelope (the 
preferred method) or, if unenveloped, must be sealed or glued on all 
four sides.
2.0  DIMENSIONS
* * * * *
2.4  Maximum Weight
[Amend 2.4 to replace the weight limit for upgradable letters with the 
weight limit for machinable letters, to raise the weight limit for 
Standard Mail automation heavy letters to 3.5 ounces, and to add a 
weight limit for ECR high density and saturation letters, to read as 
follows:]
    Maximum weight limits are as follows:
    a. First-Class Mail:
    (1) Machinable Presorted: 3.3 ounces (0.2063 pound).
    (2) Automation (see 7.5 for pieces heavier than 3 ounces): 3.3 
ounces (0.2063 pound).
    b. Periodicals automation (see 7.5 for pieces heavier than 3 
ounces): 3.3 ounces (0.2063 pound).
    c. Standard Mail:
    (1) Machinable Presorted: 3.3 ounces (0.2063 pound).
    (2) Automation regular and carrier route (see 7.5 for pieces 
heavier than 3 ounces): 3.5 ounces (0.2188 pound).
    (3) Enhanced Carrier Route high density and saturation (see 7.5 for 
pieces heavier than 3 ounces): 3.5 ounces (0.2188 pound).
* * * * *
8.0  ENCLOSED REPLY CARDS AND ENVELOPES
8.1  Basic Standard
[Amend the first paragraph of 8.1 to clarify that signing a postage 
statement certifies the mail meets the requirements for the rates 
claimed to read as follows:]
    All letter-size reply cards and envelopes (business reply mail 
(BRM), courtesy reply mail (CRM), and meter reply mail (MRM)) provided 
as enclosures in automation First-Class Mail, Periodicals, and Standard 
Mail, and addressed for return to a domestic delivery address, must 
meet the applicable automation-compatible mail standards in C810. The 
mailer's

[[Page 4577]]

signature on the postage statement certifies that this standard, and 
the standards listed below, have been met when the corresponding mail 
is presented to the USPS: * * *
* * * * *

C820  Flats

* * * * *
2.0  DIMENSIONS AND CRITERIA FOR FSM 881 PROCESSING
* * * * *
2.4  Maximum Weight
[Amend 2.4 to add a weight limit for BPM flats by adding new 2.4d to 
read as follows:]
    d. For Bound Printed Matter pieces claiming the barcode discount, 
16 ounces.
* * * * *

C830  OCR Standards

1.0  OCR READ AREA
1.1  Definition
[Amend 1.1 to add a reference to new Exhibit 1.1 (redesignated Exhibit 
A010.4.5) to read as follows:]
    The optical character reader (OCR) read area is a rectangular area 
on the address side of the mailpiece formed by these boundaries (see 
Exhibit 1.1):
    a. Left: \1/2\ inch from the left edge of the piece.
    b. Right: \1/2\ inch from the right edge of the piece.
    c. Top: 2\3/4\ inches from the bottom edge of the piece.
    d. Bottom: \5/8\ inch from the bottom edge of the piece.

[Insert Exhibit 1.1, OCR Read Area and Barcode Clear Zone (redesignated 
Exhibit A010.4.5). There are no changes to the exhibit.]
* * * * *

C840  Barcoding Standards for Letters and Flats

* * * * *
2.0  BARCODE LOCATION FOR LETTER-SIZE PIECES
2.1  Barcode Clear Zone
[Amend the first paragraph in 2.1 to remove references to show that 
Standard Mail Enhanced Carrier Route pieces must have a barcode clear 
zone and to remove references to upgradable mail, to read as follows:]
    Each letter-size piece in an automation rate mailing or claimed at 
an Enhanced Carrier Route saturation or high density rate must have a 
barcode clear zone unless the piece bears a DPBC in the address block. 
The barcode clear zone and all printing and material in the clear zone 
must meet the reflectance standards in 5.0. The barcode clear zone is a 
rectangular area in the lower right corner of the address side of cards 
and letter-size pieces defined by these boundaries: * * *
* * * * *
2.2  General Standards
[Amend 2.2 to show that these standards for delivery point barcodes 
also would apply to Enhanced Carrier Route saturation and high density 
rate pieces, to read as follows:]
    Automation rate pieces and pieces claimed at an Enhanced Carrier 
Route saturation or high density rate that weigh 3 ounces or less may 
bear a DPBC either in the address block or in the barcode clear zone. 
Pieces that weigh more than 3 ounces must bear a DPBC in the address 
block.
* * * * *
5.0  REFLECTANCE
* * * * *
5.4  Dark Fibers and Background Patterns
[Amend 5.4 to include references to Enhanced Carrier Route saturation 
and high density rate pieces and remove 5.4c to read as follows:]
    Dark fibers or background patterns (e.g., checks) that produce a 
print contrast ratio of more than 15% when measured in the red and 
green portions of the optical spectrum are prohibited in these 
locations:
    a. The area of the address block or the barcode clear zone where 
the barcode appears on a card-size or a letter-size piece mailed at 
automation rates or at Enhanced Carrier Route saturation or high 
density rates.
    b. The area of the address block or the area of the mailpiece where 
the barcode appears on a flat-size piece in an automation rate mailing.
* * * * *
[Amend the title and summary text of C850 by replacing ``Standard 
Mail'' and ``Package Services'' with ``Parcels'' to read as follows:]

C850  Barcoding Standards for Parcels

Summary
    C850 describes the technical standards for barcoded parcels. It 
defines parcel barcode characteristics, location, and content.
1.0  GENERAL
1.1  Basic Requirement
[Amend 1.1 to remove references to specific classes of mail to read as 
follows:]
    Every parcel eligible for a barcode discount must bear a properly 
prepared barcode that represents the correct ZIP Code information for 
the delivery address on the mailpiece plus the appropriate verifier 
character suffix or application identifier prefix characters as 
described in 1.0 through 4.0. The combination of appropriate ZIP Code 
and verifier or application identifier characters uniquely identifies 
the barcode as the postal routing code.
* * * * *
1.4  Use With Delivery Confirmation and Signature Confirmation Services
[Amend 1.4 to remove references to specific classes of mail to read as 
follows:]
    A mailer may qualify for the machinable parcel barcode discount and 
may apply Delivery Confirmation and Signature Confirmation barcodes in 
one of the following ways:
* * * * *
[Amend 1.4c to delete references to specific classes of mail (to allow 
integrated barcodes for First-Class Mail parcels) to read as follows:]
    c. A single integrated barcode may be used by Delivery Confirmation 
electronic option mailers who choose to combine Delivery Confirmation 
or Signature Confirmation service with insurance. Mailers printing 
their own barcodes and using the electronic option must meet the 
specifications in S918, S919, and Publication 91 with these 
modifications:
    (1) The text above the barcode must identify the other service 
requested.
    (2) The service type code in the barcode must identify the class of 
mail and/or type of special service combined with Delivery Confirmation 
or Signature Confirmation.
* * * * *

D  Deposit, Collection, and Delivery

* * * * *

D200  Periodicals

D210  Basic Information

* * * * *
3.0  EXCEPTIONAL DISPATCH
* * * * *
3.4  Destination Rates
[Amend 3.4 by removing the first sentence and revising the remaining 
sentence to read as follows:]
    Copies of Periodicals publications deposited under exceptional 
dispatch may be eligible for and claimed at the destination sectional 
center facility (DSCF) or destination delivery unit

[[Page 4578]]

(DDU) rates if the applicable standards in E250 are met.
* * * * *
4.0  DEPOSIT AT AMF
4.1  General
[Amend 4.1 by deleting the reference to SCF rates to read as follows:]

    A publisher that airfreights copies of a Periodicals publication to 
an airport mail facility (AMF) must be authorized additional entry at 
the verifying office (i.e., the post office where the copies are 
presented for postal verification). Postage must be paid at that office 
unless an alternative postage payment method is authorized. Copies 
presented at an AMF may be eligible for the delivery unit rate, subject 
to the applicable standards.
* * * * *

D230  Additional Entry

* * * * *
2.0  DISTRIBUTION PLAN
* * * * *
[Remove 2.2, Contingency Entries, and remove the title ``2.1 Basic 
Standards.'']
* * * * *
4.0  USE OF ENTRY
* * * * *
[Remove 4.6, Contingency Entry, and redesignate 4.7 as 4.6.]
* * * * *

D500  Express Mail

* * * * *
1.0  SERVICE OBJECTIVES AND REFUND CONDITIONS
* * * * *
1.6  Postage Not Refunded
[Revise 1.6 to add the additional limitations for Express Mail refunds 
to read as follows:]

    Postage is not refunded if an item is delayed because of an 
incorrect ZIP Code or address, an item was improperly detained for law 
enforcement purposes, forwarding or return service was provided after 
the item was made available for claim, delivery was attempted within 
the times required for the specific service; delay or cancellation of 
flights, strike or work stoppage; or as authorized by USPS headquarters 
when delay was caused by:
    a. Governmental action beyond the control of the USPS or air 
carriers.
    b. War, insurrection, or civil disturbance.
    c. Breakdown of a substantial portion of the USPS transportation 
network resulting from events or factors outside the control of the 
USPS.
    d. Acts of God.
    Attempted delivery occurs under any of these situations when the 
delivery is physically attempted, but cannot be made; the shipment is 
available for delivery, but the addressee made a written request that 
the shipment be held for a specific day or days; the delivery employee 
discovers that the shipment is undeliverable as addressed before 
leaving on the delivery route.
* * * * *
    E  Eligibility

E000  Special Eligibility Standards

* * * * *

E070  Mixed Classes

* * * * *
2.0  ATTACHMENTS OF DIFFERENT CLASSES
* * * * *
2.2  Rate Qualification
    If a Periodicals, Standard Mail, or Package Services host piece 
qualifies for:
* * * * *
[Amend 2.2d by revising the first sentence and removing the second 
sentence to read as follows:]
    d. A destination rate (DDU, DSCF, DADC, or DBMC), a Standard Mail 
attachment is eligible for the comparable destination entry rate. The 
attachment need not meet the volume standard that would apply if mailed 
separately. A rate including a destination entry discount may not be 
claimed for an attachment unless a similar rate is available and 
claimed for the host piece.
* * * * *

E100  First-Class Mail

E110  Basic Standards

* * * * *
[Revise 3.0 to read as follows:]
3.0  CARD RATE
    To be eligible for a card rate, a stamped card, postcard, and each 
part of a double (reply) card must meet the physical standards in C100. 
The reply half of a double card need not bear postage when originally 
mailed, but it must bear postage at the applicable rate when returned, 
unless prepared with a business reply format (S922) or a merchandise 
return service label (S923.5.4).
* * * * *

E120  Priority Mail

* * * * *
2.0  RATES
* * * * *
2.2  Flat-Rate Envelope
[Amend 2.2 by changing ``2-pound'' to ``1-pound'' to read as follows:]
    Any amount of material that can be mailed in the special flat-rate 
envelope available from the USPS is subject to the 1-pound Priority 
Mail rate, regardless of the actual weight of the mailpiece.
* * * * *
2.4   Keys and Identification Devices
[Amend 2.4 to show that the 2-pound rate is a zoned rate to read as 
follows:]

    Keys and identification devices (e.g., identification cards or 
uncovered identification tags) that weigh more than 13 ounces but not 
more than 1 pound are returned at the 1-pound Priority Mail rate plus 
the fee shown in R100.10.0. Keys and identification devices weighing 
more than 1 pound but not more than 2 pounds are mailed at the 2-pound 
Priority Mail zone rate plus the fee in R100.10.0. The key or 
identification device must bear, contain, or have securely attached the 
name and complete address of a person, organization, or concern, with 
instructions to return the key or identification device 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 2.2 by adding the reference to R100.10.0 to read as follows:]

    Keys and identification devices (e.g., identification cards or 
uncovered identification tags) that weigh 13 ounces or less are mailed 
at the applicable single-piece letter rate plus the fee in R100.10.0. 
The keys and identification devices must bear, contain, or have 
securely attached the name and complete address of a person, 
organization, or concern, with instructions to return the piece to that 
address and a statement guaranteeing payment of postage due on 
delivery.
* * * * *
[Add new 2.4 to show that letter-size pieces may be subject to the 
nonmachinable surcharge to read as follows:]
2.4  Nonmachinable Surcharge--Letter-Size Pieces
    The nonmachinable surcharge in R100.11.0 applies to letter-size 
pieces:
    a. That weigh 1 ounce or less and meet one or more of the 
nonmachinable criteria in C050.2.2. Pieces mailed at the

[[Page 4579]]

card rate are not subject to the nonmachinable surcharge.
    b. For which the mailer chooses the manual only (``do not 
automate'') option. This includes pieces mailed at the card rate.

[Add new 2.5 to show that flats may be subject to the nonmachinable 
surcharge to read as follows:]
2.5  Nonmachinable Surcharge--Nonletters
    Nonletters (flats and parcels) that weigh 1 ounce or less are 
subject to the nonmachinable surcharge in R100.11.0 if any one of the 
following applies (see C010.1.1 for how to determine the length and 
height of a mailpiece):
    a. The piece is greater than \1/4\-inch thick.
    b. The length is more than 11\1/2\ inches or the height is more 
than 6\1/8\ inches.
    c. The aspect ratio (length divided by height) is less than 1.3 or 
more than 2.5.
3.0  PRESORTED RATE
* * * * *
3.3  Address Quality
[Amend the first paragraph of 3.3 to clarify that signing a postage 
statement certifies that the mail meets the requirements for the rates 
claimed to read as follows:]
    The move update standards for address quality are listed below. The 
mailer's signature on the postage statement certifies that this 
standard has been met when the corresponding mail is presented to the 
USPS:* * *
3.4  ZIP Code Accuracy
[Amend 3.4 to clarify that signing a postage statement certifies that 
the mail meets the requirements for the rates claimed to read as 
follows:]
    All 5-digit ZIP Codes included in addresses on pieces claimed at 
the Presorted rate must be verified and corrected within 12 months 
before the mailing date using a USPS-approved method. The mailer's 
signature on the postage statement certifies that this standard has 
been met when the corresponding mail is presented to the USPS. This 
standard applies to each address individually, not to a specific list 
or mailing. An address meeting this standard may be used in mailings at 
any other rate to which the standard applies during the 12-month period 
after its most recent update.

[Add new 3.5 to show that letter-size pieces may be subject to the 
nonmachinable surcharge to read as follows:]
3.5  Nonmachinable Surcharge--Letter-Size Pieces
Letter-size pieces that weigh 1 ounce or less and meet one or more of 
the nonmachinable criteria in C050.2.2 are subject to the nonmachinable 
surcharge in R100.11.0. Pieces mailed at the card rate are not subject 
to the nonmachinable surcharge. Double cards that are not prepared in 
accordance with C810 are considered nonmachinable; they are not charged 
the surcharge but must be prepared according to the standards for 
nonmachinable pieces in M130.

[Add new 3.6 to show that flat-size pieces may be subject to the 
nonmachinable surcharge:]
3.6  Nonmachinable Surcharge--Nonletters
    Nonletters (flats and parcels) that weigh 1 ounce or less are 
subject to the nonmachinable surcharge in R100.11.0 if any one of the 
following applies (see C010.1.1 for how to determine the length and 
height of a mailpiece):
    a. The piece is greater than \1/4\-inch thick.
    b. The length is more than 11\1/2\ inches or the height is more 
than 6\1/8\ inches.
    c. The aspect ratio (length divided by height) is less than 1.3 or 
more than 2.5.

[Add new 3.7 to show that the nonmachinable surcharge applies to pieces 
where the mailer chooses the manual only option to read as follows:]
3.7  Manual Only Option
    The nonmachinable surcharge in R100.11.0 applies to any letter-size 
piece (including card-rate pieces) for which a mailer chooses the 
manual only (``do not automate'') option.

[Remove 4.0, Nonstandard Surcharge.]

E140  Automation Rates

1.0  BASIC STANDARDS
* * * * *
1.3  Address Quality
[Amend the first paragraph of 1.3 to clarify that signing a postage 
statement certifies the mail meets the requirements for the rates 
claimed to read as follows:]
    The move update standards for address quality are listed below. The 
mailer's signature on the postage statement certifies that this 
standard has been met when the corresponding mail is presented to the 
USPS: * * *
1.4  Carrier Route Presort
[Amend 1.4 to clarify that signing a postage statement certifies the 
mail meets the requirements for the rates claimed to read as follows:]
    Carrier route rates are available only for letter-size mail and 
only for those 5-digit ZIP Code areas identified with an ``A'' or ``B'' 
in the Carrier Route Indicators field of the USPS City State File used 
for address coding. Carrier route codes must be applied to mailings 
using CASS-certified software and the current USPS Carrier Route File 
scheme or another AIS product containing carrier route information, 
subject to A930 and A950. Carrier route and City State File information 
must be updated within 90 days before the mailing date. The mailer's 
signature on the postage statement certifies that this standard has 
been met when the corresponding mail is presented to the USPS.
* * * * *
[Remove 1.6, Nonstandard Surcharge.]

[Amend the title and text of 2.0 to reorganize rate application 
information for and to replace the basic rate with the AADC and mixed 
AADC rates to read as follows:]
2.0   RATE APPLICATION--CARDS AND LETTERS
    Automation rates apply to each piece that is sorted under M810 into 
the corresponding qualifying groups:
    a. Pieces in full carrier route trays, in carrier route groups of 
10 or more pieces each placed in 5-digit carrier routes trays, or in 
carrier route packages of 10 or more pieces each placed in 3-digit 
carrier routes trays qualify for the carrier route rate. Preparation to 
qualify for the carrier route rate is optional and need not be done for 
all carrier routes in a 5-digit area.
    b. Groups of 150 or more pieces in 5-digit or 5-digit scheme trays 
qualify for the 5-digit rate. Preparation to qualify for the 5-digit 
rate is optional and need not be done for all 5-digit or 5-digit scheme 
destinations.
    c. Groups of 150 or more pieces in 3-digit or 3-digit scheme trays 
qualify for the 3-digit rate.
    d. Groups of fewer than 150 pieces in origin 3-digit or origin 3-
digit scheme trays and all pieces in AADC trays qualify for the AADC 
rate.
    e. All pieces in mixed AADC trays qualify for the mixed AADC rate.
[Redesignate 2.2 and 2.3 into new 3.0 and revise to read as follows:]
3.0  RATE APPLICATION--FLATS AND OTHER NONLETTERS
3.1  Package-Based Preparation
Automation rates apply to each piece that is sorted under M820.2.0 or 
M910.1.0 into the corresponding qualifying groups:

[[Page 4580]]

    a. Pieces in 5-digit packages of 10 or more pieces qualify for the 
5-digit rate. Preparation to qualify for the 5-digit 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 rate.
    c. Pieces in ADC packages of 10 or more pieces qualify for the ADC 
rate.
    d. Pieces in mixed ADC packages qualify for the mixed ADC rate.
3.2  Tray-Based Preparation
    Automation rates apply to each piece that is sorted under M820.4.0 
into the corresponding qualifying groups:
    a. Groups of 90 or more pieces in 5-digit trays qualify for the 5-
digit rate. Preparation to qualify for the 5-digit rate is optional and 
need not be done for all 5-digit destinations.
    b. Groups of 90 or more pieces in 3-digit trays qualify for the 3-
digit rate.
    c. Groups of fewer than 90 pieces in origin 3-digit trays and all 
pieces in ADC trays qualify for the ADC rate.
    d. All pieces in mixed ADC trays qualify for the mixed ADC rate.
[Add new 3.3 to show that flats may be subject to the nonmachinable 
surcharge to read as follows:]
3.3  Nonmachinable Surcharge
    Flats that weigh 1 ounce or less are subject to the nonmachinable 
surcharge in R100.11.0 if any one of the following applies (see 
C010.1.1 for how to determine the length and height of a mailpiece):
    a. The piece is greater than \1/4\-inch thick.
    b. The length is more than 11\1/2\ inches or the height is more 
than 6\1/8\ inches.
    c. The aspect ratio (length divided by height) is less than 1.3 or 
more than 2.5.
* * * * *

E200  Periodicals

E210  Basic Standards

* * * * *

E217  Basic Rate Eligibility

[Revise 1.0 to read as follows:]
1.0  OUTSIDE-COUNTY RATES
1.1  Description
    Outside-County rates apply to copies of an authorized Periodicals 
publication mailed by a publisher or news agent that are not eligible 
for In-County rates. Outside-County rates consist of an addressed 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.
1.2   Nonrequester and Nonsubscriber Copies
    For excess noncommingled mailings under E215, nonrequester and 
nonsubscriber copies are not eligible for Periodicals rates 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 E215 are subject to Outside-County 
rates when commingled with requester or subscriber copies, as 
appropriate.
* * * * *
3.0  OUTSIDE-COUNTY SCIENCE-OF-AGRICULTURE RATES
* * * * *
3.3  Other Rates
[Amend 3.3 by adding the new destination ADC rate, removing the last 
sentence, and rearranging sentences two and three to read as follows:]
    All Outside-County rates and discounts apply, except for separate 
rates for DDU, DSCF, DADC, and zones 1 & 2. Nonsubscriber copies are 
subject to E215. Each piece must meet the standards for the rates or 
discounts claimed.

[Remove 3.4, Nonadvertising Discount, and redesignate 3.5 as 3.4.]
3.4  Application Procedures
[Amend redesignated 3.4 by revising the third and last sentences to 
read as follows:]
    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 completing the relevant part of 
an application for Periodicals mailing privileges (Form 3500) or by 
filing for reentry (Form 3510) after Periodicals mailing privileges are 
authorized. The applicant must submit evidence to show eligibility 
under the corresponding standards.
* * * * *
5.0  DISCOUNTS
[Revise 5.0 by restructuring for clarity adding information on the new 
per piece pallet discount to read as follows:]
5.1  Nonadvertising
    The nonadvertising discount applies to the Outside-County piece 
rate and is computed under P013.
5.2  Presort and Automation
    Presort and automation discounts are available under E220, E230, 
and E240.
5.3   Destination Entry
    Destination entry discounts are available under E250 for copies 
entered at specific USPS facilities.
5.4   Per Piece Pallet
    The per piece pallet discount applies to each addressed piece of 
nonletter-size mail (flats and irregular parcels) prepared in packages 
on any pallet level. The discount does not apply to pallets weighing 
less than 250 pounds (except for overflow pallets) and is not available 
for pieces in sacks or trays on pallets.
5.5   Destination Entry Per Piece Pallet
    In addition to the per piece pallet discount in 5.4, the 
destination entry per piece pallet discount applies to each addressed 
piece of nonletter-size mail (flats and irregular parcels) prepared in 
packages on any destination entry pallet. The discount does not apply 
to pallets weighing less than 250 pounds (except overflow pallets) and 
is not available for pieces in sacks or trays on pallets.
* * * * *

E220  Presorted Rates

1.0  BASIC INFORMATION
* * * * *
1.3  ZIP Code Accuracy
[Amend 1.3 to clarify that signing a postage statement certifies that 
the mail meets the requirements for the rates claimed to read as 
follows:]
    All 5-digit ZIP Codes in addresses on pieces claimed at the 5-
digit, 3-digit, or basic rates must be verified and corrected within 12 
months before the mailing date by a USPS-approved method. The mailer's 
signature on the postage statement certifies that this standard has 
been met when the corresponding mail is presented to the USPS. This 
standard applies to each address individually, not to a specific list 
or mailing. An address meeting this standard may be used in mailings at 
any other rate to which the standard applies during the 12-month period 
after its most recent update.
* * * * *
[Remove 3.0, Combining Multiple Publications or Editions.]

E230  Carrier Route Rates

* * * * *
3.0   WALK-SEQUENCE DISCOUNTS
* * * * *
3.4   Density Standards
[Amend 3.4a through 3.4e for clarity to read as follows:]

[[Page 4581]]

    Walk-sequence rate mailings are subject to these density standards:
    a. Density standards for walk-sequence rates apply to individual 
carrier routes. Pieces need not be sent to all carrier routes within a 
5-digit delivery area.
    b. Except under 3.4c, pieces eligible and claimed at the high 
density rate must meet the density requirement of at least 125 pieces 
for each carrier route.
    c. Pieces may qualify for In-County high density rates when there 
are addressed pieces for a minimum of 25% of the total active possible 
deliveries on a carrier route. If a route contains addresses both 
within and outside the county, the number of pieces addressed to the 
entire carrier route is used to determine the 25% requirement. Only 
those pieces addressed to addresses within the county of original entry 
are eligible for the In-County high density rates.
    d. Pieces eligible for and claimed at the saturation rate must be 
addressed to either 90% or more of the active residential addresses or 
75% or more of the total number of active possible delivery addresses 
on each carrier route receiving saturation rate mail. Pieces using the 
simplified address format under A040 must be addressed to 100% of the 
total number of active possible delivery addresses.
    e. More than one addressed piece per delivery address may be 
included in a high density rate mailing and may be counted for the 
density standard in 3.4b for the high density rate. Only one piece per 
delivery address may be counted toward the density standards for high 
density in 3.4c and for the saturation rate in 3.4d.

[Remove 4.0, Combining Multiple Publications or Editions.]

E240  Automation Rates

1.0  BASIC STANDARDS
* * * * *
1.2   Enclosed Reply Cards and Envelopes
[Amend 1.2 to clarify that signing a postage statement certifies that 
the mail meets the requirements for the rates claimed to read as 
follows:]
    All letter-size reply cards and envelopes provided as enclosures in 
automation rate Periodicals and addressed for return to a domestic 
delivery address must meet the standards in C810 for enclosed reply 
cards and envelopes. The mailer's signature on the postage statement 
certifies that this standard has been met when the corresponding mail 
is presented to the USPS.
* * * * *

E250  Destination Entry

[Redesignate 1.0 and 2.0 as 2.0 and 3.0, respectively. Add new 1.0 for 
the new destination ADC rate to read as follows:]
1.0   DADC RATE
1.1  Eligibility
    Addressed pieces not eligible for In-County rates can qualify for 
the destination area distribution center (DADC) rates if the copies are 
addressed for delivery in the same DADC service area, are deposited at 
the DADC or a postal-designated facility, and are placed in any 
container level except a mixed ADC sack or tray, a mixed AADC tray, or 
a mixed ADC pallet.
1.2   Rates
    DADC rates include a pound rate and a per piece discount off the 
per piece rate. Pieces claimed at DADC rates also must meet the 
standards for any discount or rate claimed and postage payment method 
used.
1.3   Documentation
    Subject to P012, the publisher must be able to show compliance with 
1.1 and 1.2 (e.g., by package, sack, tray, or pallet destination) and 
the number of pieces by presort level for each 3-digit ZIP Code 
destination eligible for the DADC rates. Documentation of postage is 
not required if each piece in the mailing is of identical weight and 
the pieces are separated when presented for acceptance by rate, zone 
(including separation by In-County and Outside-County rates), and entry 
discount (i.e., DDU, DSCF, and DADC).
2.0   DSCF RATE
2.1  Eligibility
[Amend redesignated 2.1 to reflect that DSCF mail must be deposited at 
the DSCF or a postal-designated facility and to add ineligible 
container information to read as follows:]
    Addressed pieces not eligible for In-County rates can qualify for 
the destination sectional center facility (DSCF) rates if the copies 
are addressed for delivery within the facility service area, are 
deposited at the DSCF, a facility listed in L006, or a postal-
designated facility, and are placed in any container level except an 
ADC (unless the SCF and ADC are co-located) or mixed ADC sack or tray, 
an AADC (unless the SCF and AADC are co-located) or mixed AADC tray, or 
an ADC or mixed ADC pallet.
* * * * *
[Add new E260 (former G094) and include minor editorial changes to read 
as follows:]

E260  Ride-Along

Summary
    E260 describes the standards for the Periodicals Ride-Along 
classification.
1.0  BASIC ELIGIBILITY
1.1  Description
    The standards in E260 apply to Standard Mail material paid at the 
Periodicals Ride-Along rate that is attached to or enclosed with 
Periodicals mail. All Periodicals subclasses may enclose eligible 
matter at the Ride-Along rate.
1.2  Basic Standards
    Only one Ride-Along piece may be attached to or enclosed with an 
individual copy of Periodicals mail. If more than one Ride-Along piece 
is attached or enclosed, mailers have the option of paying Standard 
Mail postage for all the enclosures or attachments, or paying the Ride-
Along rate for the first attachment or enclosure and Standard Mail 
rates for subsequent attachments and enclosures. Ride-Along pieces 
eligible under E260 must be eligible as Standard Mail and must:
    a. Not exceed any dimension of the host publication.
    b. Not exceed 3.3 ounces and must not exceed the weight of the host 
publication.
    c. Not obscure the title of the publication or the address label.
1.3   Physical Characteristics
    The host Periodicals piece and the Ride-Along piece must meet the 
following physical characteristics:
    a. Construction:
    (1) Bound publications. If contained within the host publication 
the Ride-Along piece must be securely affixed to prevent detachment 
during postal processing. If loose, the Ride-Along piece and 
publication must be enclosed together in a full wrapper, polybag, or 
envelope.
    (2) Unbound publications. If contained within the host publication 
the Ride-Along piece must be securely affixed to prevent detachment 
during postal processing. A loose Ride-Along enclosure with an unbound 
publication must be combined with and inserted within the publication. 
If the Ride-Along piece is included outside the unbound publication, 
the publication and the Ride-Along piece must be enclosed in a full 
wrapper, polybag, or envelope.
    b. A Periodicals piece (automation and nonautomation) with the 
addition

[[Page 4582]]

of a Ride-Along piece must remain uniformly thick and remain in the 
same processing category (flat or letter) as before the addition of the 
Ride-Along attachment or enclosure.
    c. A Periodicals piece with a Ride-Along piece that claims 
automation discounts must maintain the same processing category and, 
for flat-size mail, the flat sorting machine criteria under C820 (FSM 
881 flat, or FSM 1000 flat) and automation compatibility (C810 and 
C820), as before the addition of the Ride-Along attachment or 
enclosure. For example:
    (1) If, due to the inclusion of a Ride-Along piece, an FSM 881-
compatible host piece can no longer be processed on the FSM 881, but 
must be processed on an FSM 1000, then that piece must pay either the 
appropriate Periodicals nonautomation rate plus the Ride-Along rate, or 
the appropriate Periodicals automation rate for the host piece and the 
appropriate Standard Mail rate for the attachment or enclosure.
    (2) If, due to the inclusion of a Ride-Along piece, an FSM 1000-
compatible host piece can no longer be processed on the FSM 1000, but 
must be processed manually, then that piece must pay either the 
appropriate Periodicals nonautomation rate plus the Ride-Along rate, or 
the appropriate Periodicals nonautomation rate for the host piece and 
the appropriate Standard Mail rate for the attachment or enclosure.
    (3) If, due to the inclusion of a Ride-Along piece, an automation 
letter host piece can no longer be processed as an automation letter, 
then that piece must pay the appropriate Periodicals nonautomation rate 
plus the Ride-Along rate, or the appropriate Periodicals nonautomation 
rate for the host piece and the appropriate Standard Mail rate for the 
attachment or enclosure.
1.4   Marking
    The marking ``Ride-Along Enclosed'' must be placed on or in the 
host publication if it contains an enclosure or attachment paid at the 
Ride-Along rate. If placed on the outer wrapper, polybag, envelope, or 
cover of the host publication, the marking must be set in type no 
smaller than any used in the required ``POSTMASTER: Send change of 
address * * *'' statement. If placed in the identification statement, 
the marking must meet the applicable standards. The marking must not be 
on or in copies not accompanied by a Ride-Along attachment or 
enclosure.
* * * * *

E500  Express Mail

1.0  STANDARDS FOR ALL EXPRESS MAIL
* * * * *
1.6   Flat-Rate Envelope
[Amend 1.6 by changing ``2-pound'' to ``\1/2\-pound'' to read as 
follows:]

    Material mailed in the special flat-rate envelope available from 
the USPS is subject to the postage rate for a \1/2\-pound piece at the 
service level requested by the customer, regardless of the actual 
weight of the piece.
* * * * *

E600  Standard Mail

E610  Basic Standards

* * * * *
8.0   Preparation
    Each Standard Mail mailing is subject to these general standards:
* * * * *
[Amend 8.0e to remove references to upgradable preparation to read as 
follows:]

    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.
* * * * *

E620  Presorted Rates

1.0  BASIC STANDARDS
1.1  General
    All pieces in a Presorted Regular or Presorted Nonprofit Standard 
Mail mailing must:
* * * * *
[Amend 1.1c to remove references to upgradable mailings to read as 
follows:]

    c. Bear a delivery address that includes the correct ZIP Code or 
ZIP+4 code, unless an alternative address format is used subject to 
A040. Pieces prepared with detached address labels are subject to 
additional standards in A060.
* * * * *
1.4   ZIP Code Accuracy
[Amend 1.4 to clarify that signing a postage statement certifies the 
mail meets the requirements for the rates claimed to read as follows:]

    All 5-digit ZIP Codes included in addresses on pieces claimed at 
Presorted regular and Presorted Nonprofit rates must be verified and 
corrected within 12 months before the mailing date, using a USPS-
approved method. The mailer's signature on the postage statement 
certifies that this standard has been met when the corresponding mail 
is presented to the USPS. This standard applies to each address 
individually, not to a specific list 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.
2.0   RATES
[Amend 2.0 by combining 2.0a and 2.0b into new 2.0a and renumbering the 
remaining items accordingly. This is revised to remove references to 
upgradable mailings.]
    Presorted Regular or Nonprofit Standard Mail rates apply to Regular 
or Nonprofit Standard Mail letters, flats, and machinable and irregular 
parcels weighing less than 16 ounces that are prepared under M045, 
M610, or (flat-size mail only) under M910, M920, M930, or M940. Basic 
Presorted rates apply to pieces that do not meet the standards for the 
3/5 Presorted rates described below. Basic rate and 3/5 rate pieces 
prepared as part of the same mailing are subject to a single minimum 
volume standard. Pieces that do not qualify for the 3/5 rate must be 
paid at the basic rate and prepared accordingly. Pieces may qualify for 
the 3/5 rate if they are presented:
    a. In quantities of 150 or more letter-size pieces for a single 3-
digit area, prepared in 5-digit or 3-digit trays.
* * * * *
[Redesignate 4.0, Barcoded Discount, as 5.0, and add new 4.0 to show 
that some Presorted letters are subject to the nonmachinable surcharge 
to read as follows:]
4.0  NONMACHINABLE SURCHARGE
    The nonmachinable surcharge in R600.6.0 applies to any letter-size 
piece:
    a. That weighs 3.3 ounces or less and meets one or more of the 
nonmachinable criteria in C050.2.2.
    b. For which a mailer chooses the manual only (``do not automate'') 
option.
* * * * *

E630  Enhanced Carrier Route Rates

[Revise E630 in its entirety to reorganize and clarify the current 
standards and to add standards that require letter-size pieces claimed 
at high density or saturation rates to be automation-compatible and 
have delivery point barcodes to read as follows.]
1.0   BASIC STANDARDS
1.1  General
    All pieces in an Enhanced Carrier Route Standard Mail mailing must:

[[Page 4583]]

    a. Meet the basic standards for Standard Mail in E610.
    b. Be part of a single mailing of at least 200 pieces or 50 pounds 
of pieces of Enhanced Carrier Route Standard Mail. Automation basic 
carrier route rate pieces are subject to a separate 200-piece or 50-
pound minimum volume standard and may not be included in the same 
mailing as other Enhanced Carrier Route mail. Regular and Nonprofit 
mailings must meet separate minimum volumes.
    c. Be sorted to carrier routes, marked, and documented under M045 
(if palletized), M620, M920, M930, or M940.
    d. Have a complete delivery address or an alternate address format.
1.2   Maximum Size
    Enhanced Carrier Route rate mail may not be more than 11\3/4\ 
inches high, 14 inches long, or \3/4\-inch thick. Exception: 
Merchandise samples with detached address labels (DALs) may exceed 
these dimensions if the labels meet the standards in A060.
1.3   Preparation
    Preparation to qualify for any Enhanced Carrier Route rate is 
optional and need not be performed for all carrier routes in a 5-digit 
area. An Enhanced Carrier Route mailing may include pieces at basic, 
high density, and saturation Enhanced Carrier Route rates. Automation 
basic carrier route rate pieces must be prepared as a separate mailing 
(see E640).
1.4   Carrier Route Information
    Except for mailings prepared with a simplified address under A040, 
a carrier route code must be applied to each piece in the mailing using 
CASS-certified software and the current USPS Carrier Route File scheme, 
hard copy Carrier Route Files, or another AIS product containing 
carrier route information, subject to A930 and A950. Carrier route 
information must be updated within 90 days before the mailing date.
2.0   BASIC RATES
2.1  All Pieces
    All pieces mailed at basic rates must be prepared in walk sequence 
or in line-of-travel (LOT) sequence according to LOT schemes prescribed 
by the USPS (see M050).
2.2   Letter-Size Pieces
    Basic rates apply to each piece sorted under M045 or M620 and in a 
full carrier route tray or in a carrier route package of 10 or more 
pieces placed in a 5-digit carrier routes or 3-digit carrier routes 
tray.
2.3   Flat-Size Pieces
    Basic rates apply to each piece in a carrier route package of 10 or 
more pieces that is:
    a. Palletized under M045, M920, M930, or M940.
    b. Placed in a carrier route sack containing at least 125 pieces or 
15 pounds of pieces.
    c. Placed in a merged 5-digit scheme, 5-digit scheme carrier 
routes, merged 5-digit, or 5-digit carrier routes sack.
2.4   Irregular Parcels
    Basic rates apply to each piece in a carrier route sack or carton 
containing at least 125 pieces or 15 pounds of pieces, or in a 5-digit 
carrier routes sack or carton. DALs must be in carrier route packages 
of 10 or more pieces and prepared under A060.
3.0   HIGH DENSITY RATES
3.1  All Pieces
    All pieces mailed at high density rates must:
    a. Be prepared in walk sequence according to schemes prescribed by 
the USPS (see M050).
    b. Meet the density requirement of at least 125 pieces for each 
carrier route. Multiple pieces per delivery address can count toward 
this density standard.
3.2   Letter-Size Pieces
    High density rates apply to each piece that is automation-
compatible according to C810, has a delivery point barcode under C840, 
and is in a full carrier route tray or in a carrier route package of 10 
or more pieces placed in a 5-digit carrier routes or 3-digit carrier 
routes tray. Pieces bearing a simplified address do not need to meet 
the standards in C810 and are not required to have a delivery point 
barcode. Pieces not meeting the standards in this section may be mailed 
at the high density nonletter rate or at the basic letter rate.
3.3   Discount for Heavy Letters
    Pieces that otherwise qualify for the high density letter rate and 
weigh more than 3.3 ounces but not more than 3.5 ounces pay postage 
equal to the nonletter piece/pound rate and receive a discount equal to 
the corresponding high density nonletter piece rate (3.3 ounces or 
less) minus the corresponding high density letter piece rate (3.3 
ounces or less). If claiming a destination entry rate, the discount is 
calculated using the corresponding rates.
3.4   Flat-Size Pieces
    High density rates apply to each piece in a carrier route package 
of 10 or more pieces that is:
    a. Palletized under M045, M920, M930, or M940.
    b. Placed in a carrier route sack containing at least 125 pieces or 
15 pounds of pieces.
    c. Placed in a merged 5-digit scheme, 5-digit scheme carrier 
routes, merged 5-digit, or 5-digit carrier routes sack.
3.5   Irregular Parcels
    High density rates apply to each piece in a carrier route sack or 
carton containing at least 125 pieces or 15 pounds of pieces, or in a 
5-digit carrier routes sack or carton. DALs must be in carrier route 
packages of 10 or more pieces and prepared under A060.
4.0   SATURATION RATES
4.1  All Pieces
    All pieces mailed at saturation rates must:
    a. Be prepared in walk sequence according to schemes prescribed by 
the USPS (see M050).
    b. Meet the density requirement of at least 90% or more of the 
active residential addresses or 75% or more of the total number of 
active possible delivery addresses on each carrier route receiving this 
mail. Pieces bearing a simplified address must be addressed to 100% of 
the total number of active possible deliveries. Multiple pieces per 
delivery address do not count toward this density standard. Sacks with 
fewer than 125 pieces or less than 15 pounds of pieces may be prepared 
to a carrier route when the saturation rate is claimed for the contents 
and the applicable density standard is met.
4.2   Letter-Size Pieces
    Saturation rates apply to each piece that is automation compatible 
according to C810, has a delivery point barcode under C840, and is in a 
full carrier route tray or in a carrier route package of 10 or more 
pieces placed in a 5-digit carrier routes or 3-digit carrier routes 
tray. Pieces bearing a simplified address do not need to meet the 
standards in C810 and are not required to have a delivery point 
barcode. Pieces not meeting the standards in this section may be mailed 
at the high density nonletter rate or at the basic letter rate.
4.3   Discount for Heavy Letters
    Pieces that otherwise qualify for the saturation letter rate and 
weigh more than 3.3 ounces but not more than 3.5 ounces pay postage 
equal to the nonletter piece/pound rate and receive a discount equal to 
the corresponding saturation nonletter piece rate (3.3 ounces or less) 
minus the corresponding saturation letter piece rate (3.3 ounces or 
less). If claiming a destination entry

[[Page 4584]]

rate, the discount is calculated using the corresponding rates.
4.4   Flat-Size Pieces
    Saturation rates apply to each piece in a carrier route package of 
10 or more pieces that is:
    a. Palletized under M045, M920, M930, or M940.
    b. Placed in a carrier route sack containing at least 125 pieces or 
15 pounds of pieces.
    c. Placed in a merged 5-digit scheme, 5-digit scheme carrier 
routes, merged 5-digit, or 5-digit carrier routes sack.
4.5   Irregular Parcels
    Saturation rates apply to each piece in a carrier route sack or 
carton containing at least 125 pieces or 15 pounds of pieces, or in a 
5-digit carrier routes sack or carton. DALs must be in carrier route 
packages of 10 or more pieces and prepared under A060.
5.0  RESIDUAL SHAPE SURCHARGE
    Any piece that is prepared as a parcel or is not letter-size or 
flat-size as defined in C050 is subject to the residual shape 
surcharge.

E640  Automation Rates

1.0  REGULAR AND NONPROFIT RATES
* * * * *
1.2  Enclosed Reply Cards and Envelopes
[Amend 1.2 to clarify that signing a postage statement certifies the 
mail meets the requirements for the rates claimed to read as follows:]
    All letter-size reply cards and envelopes (business reply, courtesy 
reply, and meter reply mail) provided as enclosures in automation 
Regular or Nonprofit Standard Mail, and addressed for return to a 
domestic delivery address, must meet the standards in C810 for enclosed 
reply cards and envelopes. The mailer's signature on the postage 
statement certifies that this standard has been met when the 
corresponding mail is presented to the USPS.
1.3   Rate Application--Letters-Size Pieces
[Amend 1.3 to replace the basic rate with the AADC and mixed AADC rates 
to read as follows:]
    Automation rates apply to each piece that is sorted under M810 into 
the corresponding qualifying groups:
    a. Groups of 150 or more pieces in 5-digit or 5-digit scheme trays 
qualify for the 5-digit rate. Preparation to qualify for that rate is 
optional and need not be done for all 5-digit or 5-digit scheme 
destinations.
    b. Groups of 150 or more pieces in 3-digit or 3-digit scheme trays 
qualify for the 3-digit rate.
    c. Groups of fewer than 150 pieces in origin or entry 3-digit or 3-
digit scheme trays and groups of 150 or more pieces in AADC trays 
qualify for the AADC rate.
    d. All pieces in mixed AADC trays qualify for the mixed AADC rate.

[Redesignate 1.4, Rate Application--Flats, as 1.5. Add new 1.4 for 
heavy automation letters to read as follows:]
1.4   Discount for Heavy Automation Letters
    Automation letters that weigh more than 3.3 ounces but not more 
than 3.5 ounces pay postage equal to the automation piece/pound rate 
and receive a discount equal to the corresponding automation nonletter 
piece rate (3.3 ounces or less) minus the corresponding automation 
letter piece rate (3.3 ounces or less). If claiming a destination entry 
rate, the discount is calculated using the corresponding rates.
* * * * *
2.0   ENHANCED CARRIER ROUTE RATES
* * * * *
[Add new 2.6 to include the discount for ECR automation basic letters 
that weigh between 3.3 and 3.5 ounces to read as follows:]
2.6   Discount for Heavy Letters
    Pieces that otherwise qualify for the ECR automation basic rate and 
weigh more than 3.3 ounces but not more than 3.5 ounces pay postage 
equal to the ECR regular basic nonletter piece/pound rate and receive a 
discount equal to the regular basic nonletter piece rate (3.3 ounces or 
less) minus the automation basic letter piece rate. If claiming a 
destination entry rate, the discount is calculated using the 
corresponding rates.

E700  Package Services

E710  Basic Standards

* * * * *

E712  Bound Printed Matter

1.0  BASIC STANDARDS
1.1  Description
* * * * *
[Amend 1.1b by adding a new last sentence to read as follows:]
    b. Weigh no more than 15 pounds. Pieces might be subject to other 
minimum weights or dimensions based on the standards for specific 
rates.
* * * * *
[Remove 1.4, POSTNET Barcodes on Flats.]
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:
* * * * *
[Amend the heading of 2.0d by adding ``Machinable Parcels'' and revise 
the text to read as follows:]
    d. Barcoded Discount--Machinable Parcels. The barcoded discount 
applies only to BPM machinable parcels (C050.4.1) that bear a correct, 
readable barcode under C850 for the ZIP Code of the delivery address 
and are part of a single-piece rate mailing of 50 or more BPM parcels 
or are part of a presorted rate mailing of at least 300 BPM parcels 
prepared under M045 and M720. The barcoded discount is not available 
for parcels mailed at Presorted DDU or DSCF rates, or for Presorted 
DBMC rate mailings entered at an ASF other than the Phoenix, AZ, ASF. 
Carrier route rate mail is not eligible for the barcoded discount.
[Add new item 2.0e to read as follows:]
    e. Barcoded Discount--Flats. The barcoded discount applies only to 
BPM flats that bear a correct, readable ZIP+4 or delivery point barcode 
(DPBC) barcode under C840 for the ZIP+4 code, or numeric DPBC of the 
delivery address. These pieces must be part of a presort rate mailing 
of at least 300 BPM flats prepared under M045 and M820 or part of a 
single-piece rate mailing of 50 or more pieces. The barcoded discount 
is not available for flats mailed at presorted DDU rates or carrier 
route rates. To qualify for the barcoded discount, the flat-size piece 
must meet the flat sorting machine requirements under C820.2.0.
3.0  ADDITIONAL STANDARDS FOR PRESORTED RATES
3.1  ZIP Code Accuracy
[Amend 3.1 to clarify that signing a postage statement certifies that 
the mail meets the requirements for the rates claimed to read as 
follows:]
    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's signature 
on the postage statement certifies that this standard has been met when 
the

[[Page 4585]]

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.
[Redesignate current 3.2 as 3.3 and add new 3.2 to show CASS 
certification for automation rate mailings to read as follows:]
3.2  CASS Certification
    Pieces claimed at automation rates for flats must meet the address 
quality and coding standards in A800 and A950.
3.3  Preparation
[Amend redesignated 3.3 by adding reference to flats to read as 
follows:]Pieces claiming the Presorted rates must be prepared under 
M045 or M722 or, for flats claiming the barcode discount under M820.
* * * * *

E713  Media Mail

[Redesignate former 2.0 as new 1.0:]

[Redesignate former 1.0 as new 2.0 and revise to read as follows:]
2.0  RATES
    Media Mail rates are based on the weight of the piece without 
regard to zone.
    The rate categories and discounts are as follows:
    a. Single-Piece Rate. The single-piece rate applies to pieces not 
mailed at a 5-digit or basic rate.
    b. 5-Digit Presort Rate. The 5-digit rate applies to pieces that 
meet the additional requirements in 3.0 and are prepared and presorted 
to 5-digit scheme or 5-digit destinations as specified in M730 or M041 
and M045.
    c. Basic Presort Rate. The basic rate applies to pieces that meet 
the additional requirements in 3.0 and are prepared and presorted as 
specified in M730 or M041 and M045.
    d. Barcoded Discount. The barcoded discount applies to Media Mail 
machinable parcels (see C050) 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 basic rates and bear a correct, readable barcode 
for the ZIP Code shown in the delivery address as required by C850. The 
barcoded discount is not available for pieces mailed at 5-digit rates.

[Revise the title and text of 3.0 in its entirety to read as follows:]
3.0  ADDITIONAL STANDARDS FOR PRESORTED RATES
3.1  Basic Information
    A presorted Media Mail mailing must contain a minimum of 300 pieces 
claimed at any combination of 5-digit and basic rates. Those pieces in 
the mailing that meet the 5-digit presort requirements are eligible for 
the 5-digit presort rate and those pieces that meet the basic presort 
requirements are eligible for the basic rates, subject to the 
preparation standards in M730 or M045. The size and content of each 
piece in the mailing does not need to be identical. Nonidentical pieces 
may be merged, sorted together, and presented as a single mailing 
either with postage paid with a permit imprint if authorized by 
Business Mailer Support (BMS), USPS headquarters, or with the correct 
postage affixed to each piece in the mailing.
3.2  5-Digit Rate
    To qualify for the 5-digit rate, a piece must be prepared and 
sorted to either 5-digit scheme and 5-digit sacks under M730 or to 5-
digit scheme and 5-digit pallets under M045. All logical 5-digit 
packages on pallets must contain at least 10 pieces. Nonmachinable 
parcels may qualify for the 5-digit rate if prepared to preserve 
sortation by 5-digit ZIP Code as prescribed by the postmaster of the 
mailing office.
3.3  Basic Rate
    All pieces prepared and sorted under M730 or M045 that are not 
eligible for the 5-digit rate qualify for the basic rate. Nonmachinable 
parcels may qualify for the basic rate if prepared to preserve 
sortation by BMC as prescribed by the postmaster of the mailing office.

[Redesignate former 3.2 as new 3.4 to read as follows:]
3.4  Mailing Fee
    A mailing fee must be paid once each 12-month period at each post 
office of mailing by or for any person who mails at the presorted Media 
Mail rates. The fee may be paid in advance only for the next 12-month 
period and only during the last 60 days of the current service period. 
The fee charged is that in effect on the day of payment.

[Remove former 3.5 and 3.6.]

E714  Library Mail

[Redesignate former 2.0 as new 1.0: revise title to read as follows:]
1.0  BASIC STANDARDS
1.1  Sender, Recipient, and Contents
[Amend 1.1 by revising the last sentence to read as follows:]

    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, education, 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 1.2 
and 1.3 may be mailed at the Library Mail rate.
* * * * *
1.4  Enclosures in Books and Sound Recordings
[Amend 1.4 by changing the references 2.4a and 2.4b to 1.4a and 1.4b, 
respectively, to read as follows:]
    Books and sound recordings mailed at the Library Mail rate may 
contain these enclosures as well as the additions and enclosures 
permitted under E710:
    a. Either one envelope or one addressed postcard. If also serving 
as an order form, the envelope or card may be in addition to the order 
form permitted by 1.4b.
    b. One order form. If also serving as an envelope or postcard, the 
order form may be in addition to the envelope or card permitted by 
1.4a.
    c. With books, announcements of books in book pages or as loose 
enclosures. These announcements must be incidental and exclusively 
devoted to books, without extraneous advertising of book-related 
materials or services. Announcements may fully describe the conditions 
and methods of ordering books (such as by membership in book clubs) and 
may contain ordering instructions for use with either single order form 
permitted in 1.4b.
    d. With sound recordings, announcements of sound recordings on 
title labels, on protective sleeves, on the carton or wrapper, or on 
loose enclosures. These announcements of sound recordings must be 
incidental and exclusively devoted to sound recordings. They may not 
contain extraneous advertising of recording-related materials or 
services. Announcements may fully describe the conditions and methods 
of ordering sound recordings (such as by membership in sound recording 
clubs) and may contain ordering instructions for use with the single 
order form permitted in 1.4b.
* * * * *
[Redesignate former 1.0 as new 2.0 and revise to read as follows:]
2.0  RATES
    Library Mail rates are based on the weight of the piece without 
regard to

[[Page 4586]]

zone. The rate categories and discounts are as follows:
    a. Single-Piece Rate. The single-piece rate applies to pieces not 
mailed at a 5-digit or basic rate.
    b. 5-Digit Presort Rate. The 5-digit rate applies to pieces that 
meet the additional requirements of 3.0 and are prepared and presorted 
to 5-digit scheme and 5-digit destinations as specified in M740 or M041 
and M045.
    c. Basic Presort Rate. The basic rate applies to pieces that meet 
the additional requirement in 3.0 and are prepared and presorted as 
specified in M740 or M041 and M045.
    d. Barcoded Discount. The barcoded discount applies to Library Mail 
machinable parcels (see C050) that are included in a mailing of at 
least 50 pieces of Library Mail. The pieces must be entered either at 
single-piece rates or basic rates and bear a correct, readable barcode 
for the ZIP Code shown in the delivery address as required by C850. The 
barcoded discount is not available for pieces mailed at 5-digit rates.

[Revise the title and text of 3.0 in its entirety to read as follows:]
3.0  ADDITIONAL STANDARDS FOR PRESORT RATES
3.1  Basic Information
    A presorted Library Mail mailing must contain a minimum of 300 
pieces claimed at any combination of 5-digit and basic rates. Those 
pieces in the mailing that meet the 5-digit presort requirements are 
eligible for the 5-digit presort rate, and those pieces that meet the 
basic presort requirements are eligible for the basic rate, subject to 
the preparation standards in M740 or M045. The size and content of each 
piece in the mailing does not need to be identical. Nonidentical pieces 
may be merged, sorted together, and presented as a single mailing 
either with postage paid with a permit imprint if authorized by 
Business Mailer Support (BMS), USPS headquarters, or with the correct 
postage affixed to each piece in the mailing.
3.2  5-Digit Rate
    To qualify for the 5-digit rate, a piece must be prepared and 
sorted to either 5-digit scheme and 5-digit sacks under M740 or to 5-
digit scheme and 5-digit pallets under M045. All logical 5-digit 
packages on pallets must contain at least 10 pieces. Nonmachinable 
parcels may qualify for the 5-digit rate if prepared to preserve 
sortation by 5-digit ZIP Code as prescribed by the postmaster of the 
mailing office.
3.3  Basic Rate
    All pieces prepared and sorted under M740 or M045 that are not 
eligible for the 5-digit rate qualify for the basic rate. Nonmachinable 
parcels may qualify for the basic rate if prepared to preserve 
sortation by BMC as prescribed by the postmaster.

[Redesignate former 3.2 as new 3.4 to read as follows:]
3.4  Mailing Fee
    A mailing fee must be paid once each 12-month period at each post 
office of mailing by or for any person who mails at the presorted 
Library Mail rates. The fee may be paid in advance only for the next 
12-month period and only during the last 60 days of the current service 
period. The fee charged is that in effect on the day of payment.

[Remove 3.5 and 3.6.]

[Remove E715, Bulk Parcel Post.]

E750  Destination Entry

E751  Parcel Select

1.0  BASIC STANDARDS
1.1  Definitions
[Amend 1.1b by adding a sentence after the first one to read as 
follows:]
    b. * * * Those 5-digit machinable parcels not required to be 
entered at a BMC under Exhibit 6.0 and all 3-digit nonmachinable 
parcels sorted to the 3-digit level and claimed at the DSCF rate must 
be deposited at an SCF listed in L005. * * *
* * * * *
1.4  DSCF and DDU Rates
    For DSCF and DDU rates, pieces must meet the applicable standards 
in 1.0 through 6.0 and the following criteria:

[Amend 1.4a by adding ``5-digit scheme'' and ``5-digit Parcel Post;'' 
to read as follows:]
    a. For DSCF rates, be part of a mailing of parcels sorted to 5-
digit scheme or 5-digit destinations and deposited at a designated SCF 
under L005 (or at a BMC under Exhibit 6.0); addressed for delivery 
within the ZIP Code service area of that SCF under L005; and prepared 
under with M041, M045, or M710. Nonmachinable parcels sorted to 3-digit 
ZIP Code prefixes and claimed at a DSCF rate must be entered at a 
designated SCF under L005. * * *
* * * * *
2.0  PREPARATION
* * * * *
2.2  Containers
[Amend 2.2c, 2.2d, and 2.2e by adding ``3-digit sack'' after each 
occurrence of ``5-digit sack'' and adding ``3-digit pallet'' after each 
occurrence of ``5-digit pallet.'']
* * * * *

E752  Bound Printed Matter

* * * * *
3.0  DESTINATION SECTIONAL CENTER FACILITY (DSCF) RATES
* * * * *
[Amend the title and text of 3.2 to add eligibility standards for 
presorted automation flats to read as follows:]
3.2  Presorted and Automation Flats
    Presorted flats and automation flats in sacks for the 5-digit, 3-
digit, and SCF sort levels or on pallets at the 5-digit scheme and 5-
digit, 3-digit, SCF, and ASF sort levels may claim DSCF rates. The mail 
must be entered at the appropriate facility under 3.1.
* * * * *

E753  Combining Package Services Parcels

[Amend 1.1 by replacing ``BMC rates'' with ``basic rates.'']
* * * * *

F  Forwarding and Related Services

F000  Basic Services

F010  Basic Information

* * * * *
4.0  BASIC TREATMENT
4.1 General
[Amend 4.1 to remove references to nonstandard mail to read as 
follows:]
    Mail that is undeliverable as addressed is forwarded, returned to 
the sender, or treated as dead mail, as authorized for the particular 
class of mail. Undeliverable-as-addressed mail is endorsed by the USPS 
with the reason for nondelivery as shown in Exhibit 4.1. All 
nonmailable pieces are returned to the sender.
* * * * *
5.0  CLASS TREATMENT FOR ANCILLARY SERVICES
* * * * *
5.2  Periodicals
    Undeliverable Periodicals (including publications pending 
Periodicals authorization) are treated as described in the chart below 
and under these conditions:
* * * * *
[Amend 5.2e to show that the nonmachinable surcharge can be charged on 
Periodicals returned at First-Class Mail single-piece rates to read as 
follows:]

[[Page 4587]]

    e. The publisher may request the return of copies of undelivered 
Periodicals by printing the endorsement ``Address Service Requested'' 
on the envelopes or wrappers, or on one of the outside covers of 
unwrapped copies, immediately preceded by the sender's name, address, 
and ZIP+4 or 5-digit ZIP Code. This endorsement obligates the publisher 
to pay return postage. Each returned piece is charged the single-piece 
First-Class Mail or Priority Mail rate applicable for the weight of the 
piece, plus the nonmachinable surcharge if it applies (see E130). When 
the address correction is provided incidental to the return of the 
piece, there is no charge for the correction.
* * * * *
5.3  Standard Mail
    Undeliverable Standard Mail is treated as described in the chart 
below and under these conditions:
* * * * *
[Amend 5.3g to show that the nonmachinable surcharge is included in the 
calculation of the weighted fee for returned pieces to read as 
follows:]
    g. A weighted fee is charged when an unforwardable or undeliverable 
piece is returned to the sender and the piece is endorsed ``Address 
Service Requested'' or ``Forwarding Service Requested.'' The weighted 
fee is the single-piece First-Class Mail or Priority Mail rate 
applicable for the weight of the piece, multiplied by 2.472 and rounded 
up to the next whole cent (if the computation yields a fraction of a 
cent), plus the nonmachinable surcharge if it applies (see E130). The 
weighted fee is computed (and rounded if necessary) for each piece 
individually. Using ``Address Service Requested'' or ``Forwarding 
Service Requested'' obligates the sender to pay the weighted fee on all 
returned pieces.

[Redesignate current 5.3h as 5.3i, and add new 5.3h to show that the 
First-Class Mail nonmachinable surcharge is charged on some returned 
pieces to read as follows:]
    h. Returned pieces endorsed ``Return Service Requested,'' are 
charged the single-piece First-Class Mail or Priority Mail rate 
applicable for the weight of the piece, plus the nonmachinable 
surcharge if it applies (see E130).
* * * * *
6.0  ENCLOSURES AND ATTACHMENTS
6.1  Periodicals
[Amend 6.1 to show that the nonmachinable surcharge can be charged on 
Periodicals returned at First-Class Mail single-piece rates to read as 
follows:]
    Undeliverable Periodicals (including publications pending 
Periodicals authorization) with a nonincidental First-Class Mail 
attachment or enclosure are returned at the single-piece First-Class 
Mail or Priority Mail rate applicable for the weight of the piece, plus 
the nonmachinable surcharge if it applies (see E130).
    The weight of the attachment or enclosure is not included when 
computing the charges for return of the mailpiece. Undeliverable 
Periodicals (including publications pending Periodicals authorization) 
with an incidental First-Class Mail attachment or enclosure are treated 
as dead mail unless endorsed ``Address Service Requested.''
6.2  Standard Mail
[Amend 6.2 to show that the nonmachinable surcharge can be charged on 
Standard Mail returned at First-Class Mail single-piece rates to read 
as follows:]
    Undeliverable, unendorsed Standard Mail with a nonincidental First-
Class Mail attachment or enclosure is returned at the single-piece 
First-Class Mail or Priority Mail rate applicable for the weight of the 
piece, plus the nonmachinable surcharge if it applies (see E130). The 
weight of the First-Class Mail attachment or enclosure is not included 
when computing the charges for return of the mailpiece. Undeliverable, 
unendorsed Standard Mail with an incidental First-Class Mail attachment 
or enclosure is treated as dead mail.
* * * * *

F030  Address Correction, Address Change, FASTforward, and Return 
Services

1.0  ADDRESS CORRECTION SERVICE
1.1  Purposes
[Add a new sentence after the first sentence to clarify the conditions 
under which address notices are provided to read as follows:]
    * * * Address corrections and notices are not provided for 
customers who file a temporary change of address or for individuals at 
a business address (see F020.1.0). * * *
* * * * *

G  General Information

G000  The USPS and Mailing Standards

* * * * *

G090  Experimental Classifications and Rates

G091  NetPost Mailing Online

* * * * *
4.0  POSTAGE AND FEES
4.1  Postage
[Revise 4.1 to read as follows:]
    Documents mailed during the experiment are eligible for the 
following rate categories only:
    a. First-Class Mail automation mixed AADC rates.
    b. First-Class Mail automation mixed ADC rates.
    c. First-Class Mail single-piece rates.
    d. Regular Standard Mail automation letters mixed AADC rates.
    e. Regular Standard Mail automation flats basic rates.
    f. Nonprofit Standard Mail automation letters mixed AADC rates.
    g. Nonprofit Standard Mail automation flats basic rates.
* * * * *
[Delete G094 in its entirety. The Ride-Along would become a permanent 
classification and the standards would be moved to new E260.]
* * * * *

L  Labeling Lists

* * * * *

L800  Automation Rate Mailings

* * * * *
[Amend the title and the first sentence in the summary of L802 by 
adding ``Bound Printed Matter'' to read as follows:]

L802  BMC/ASF Entry--Periodicals, Standard Mail, and Bound Printed 
Matter

Summary
    L802 describes the service area by individual 3-digit ZIP Code 
prefix for mixed automation rate Periodicals, Standard Mail, and Bound 
Printed Matter mailings entered at an ASF or BMC. * * *

[Amend the title and the first sentence in the summary of L803 by 
adding ``Bound Printed Matter'' to read as follows:]

L803  Non-BMC/ASF Entry--Periodicals, Standard Mail, and Bound Printed 
Matter

Summary
    L803 describes the service area by individual 3-digit ZIP Code 
prefix for mixed automation rate Periodicals, Standard Mail, and Bound 
Printed Matter mailings.* * *
* * * * *

[[Page 4588]]

M  Mail Preparation and Sortation

M000  General Preparation Standards

M010  Mailpieces

M011  Basic Standards

1.0  TERMS AND CONDITIONS
* * * * *
1.3  Preparation Instructions
    For purposes of preparing mail:
* * * * *
[Amend 1.3b to show that a full letter tray can be anywhere between 75% 
and 100% full (the preferred default for presort software is 85%) full 
to read as follows:]
    b. A full letter tray is one in which faced, upright pieces fill 
the length of the tray between 75% and 100% full.
* * * * *
1.4  Mailing
    Mailings are defined as:
* * * * *
[Combine 1.4c with 1.4b. Redesignate 1.4d through 1.4f as 1.4c through 
1.4e, respectively. Amend 1.4b to remove references to the upgradable 
preparation and to show that machinable and nonmachinable pieces cannot 
be part of the same mailing to read as follows:]
    b. First-Class Mail. Cards and letters must be prepared as separate 
mailings except that they may be sorted together if each meets separate 
minimum volume mailing requirements. The following types of First-Class 
Mail may not be part of the same mailing despite being in the same 
processing category:
    (1) Automation rate and any other type of mail.
    (2) Presorted rate and any other type of mail.
    (3) Single-piece rate and any other type of mail.
    (4) Machinable and nonmachinable pieces.
* * * * *
[Amend redesignated 1.4d to remove references to the upgradable 
preparation, to show that machinable and nonmachinable pieces cannot be 
part of the same mailing, and to show that ECR letter rate pieces and 
ECR nonletter rate pieces cannot be part of the same mailing.]
    d. Standard Mail. Except as provided in E620.1.2, the types of 
Standard Mail listed below may not be part of the same mailing. See 
M041, M045, and M610, and M620 for copalletized, combined, or mixed 
rate level mailings.
    (1) Automation Enhanced Carrier Route and any other type of mail.
    (2) Regular automation rate and any other type of mail.
    (3) Enhanced Carrier Route and any other type of mail.
    (4) Enhanced Carrier Route letter rate pieces and Enhanced Carrier 
Route nonletter rate pieces.
    (5) Presorted rate mail and any other type of mail.
    (6) Machinable and nonmachinable pieces.
    (7) Except as provided by standard, Regular rate mail may not be in 
the same mailing as Nonprofit rate mail, and Enhanced Carrier Route 
mail may not be in the same mailing as Nonprofit Enhanced Carrier Route 
mail.
* * * * *

M012  Markings and Endorsements

* * * * *
2.0  MARKINGS--FIRST-CLASS MAIL AND STANDARD MAIL
* * * * *
2.2  Exceptions to Markings
[Amend 2.2d to update the required MLOCR markings:]Exceptions are as 
follows:
* * * * *
    d. MLOCR Prepared Automation Mailings. The basic marking must 
appear in the postage area on each piece as required in 2.1a. The other 
``AUTO'' marking described in 2.1b must be replaced by the appropriate 
Identifier/Rate Code marking as described in P960 on those pieces that 
have the marking applied by an MLOCR. This seven-character marking 
provides a description of the Product Month Designator, MASS/
FASTforward System Identifier, postage payment method, and the rate of 
postage affixed for metered and precanceled stamp mail or other postage 
information for permit imprint mail.
3.0  MARKINGS--PACKAGE SERVICES
* * * * *
3.3  Additional Bound Printed Matter Markings
[Revise 3.3 to read as follows:]
    In addition to the basic marking in 3.1, each piece of Bound 
Printed Matter mailed at a presorted or carrier route rate must bear 
additional rate markings. The 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. The additional rate markings are:
    a. For presorted rate mail, the additional required marking is 
``Presorted'' (or ``PRSRT''). For presorted automation rate flats 
prepared under M820, the optional marking ``AUTO'' may be used in place 
of ``Presorted'' (or ``PRSRT''). If the ``AUTO'' marking is not used, 
the automation rate flats must bear the ``Presorted'' (or ``PRSRT'') 
rate marking.
    b. For carrier route rate mail, the additional required marking is 
``Carrier Route Presort'' (or ``CAR-RT SORT'').
* * * * *
4.0  ENDORSEMENTS--DELIVERY AND ANCILLARY SERVICES
* * * * *
[Remove 4.5, OCR Read Area.]
* * * * *

M020  Packages

* * * * *
1.0  BASIC STANDARDS
* * * * *
[Amend the title and text of 1.6 to include Media Mail and Library Mail 
to read as follows:]
1.6  Package Size--Bound Printed Matter, Media Mail, and Library Mail
    Each logical package (the total group of pieces for a package 
destination) of Bound Printed Matter, Media Mail, and Library Mail must 
meet the applicable minimum and maximum package size standards in M045, 
M722, M730, or M740. The pieces in the logical package must then be 
secured in a physical package or packages. Wherever possible, each 
physical package for a logical package destination should contain at 
least the minimum package size. The size of each physical package for a 
specific logical package destination may, however, contain the exact 
package minimum, more pieces than the package minimum, or fewer pieces 
than the package minimum depending on the size of the pieces in the 
mailing or the total quantity of the pieces to that destination. Unless 
otherwise noted, the maximum weight for packages in sacks is 20 pounds. 
Except for mixed ADC packages and for carrier route packages prepared 
in sacks, each physical package of Bound Printed Matter must contain at 
least two pieces. For carrier route rate Bound Printed Matter mail 
prepared in sacks, the last physical package to an individual carrier 
route destination may consist of a single addressed piece, provided 
that all other packages to that carrier route destination contain at 
least two addressed pieces, and that the total group of pieces to that 
carrier route (the ``logical'' package) meets the carrier

[[Page 4589]]

route rate eligibility minimum in E712. Packages prepared on pallets 
must meet the additional packaging requirements under M045 and each 
physical package, including Carrier Route rate mail, must always 
contain at least two pieces. Packages of Bound Printed Matter 
automation flats must meet be prepared under M820.
* * * * *
[Amend the title in 2.0 to read as follows:]
2.0  ADDITIONAL STANDARDS
2.1  Cards and Letter-Size Pieces
    Cards and letter-size pieces are subject to these packaging 
standards:
* * * * *
[Amend 2.1c to remove references to the upgradable preparation for 
First-Class Mail and Standard Mail and to show that nonmachinable and 
``manual only'' pieces must be packaged to read as follows:]
    c. Packages must be prepared for mail in all less-than-full trays 
and 3-digit carrier routes trays; for nonmachinable Presorted First-
Class Mail; for nonmachinable Presorted Standard Mail; for First-Class 
Mail and Standard Mail pieces where the mailer has requested manual 
only processing; and for nonautomation Periodicals.
* * * * *
2.2  Flat-Size Pieces
[Amend 2.2 to add references to Media Mail and Library Mail to read as 
follows:]
    Packages of flat-size pieces must be secure and stable subject to 
the following:
    a. If placed on pallets, the specific weight limits in M045.
    b. If placed in sacks:
    (1) For Periodicals and Standard Mail, the specific weight and 
height limits in 1.8.
    (2) For Bound Printed Matter, the specific weight limits in M720
    (3) For Media Mail and Library Mail, the specific weight limits in 
M730 and M740, as applicable.
* * * * *

M030  Containers

M031  Labels

* * * * *
4.0  PALLET LABELS
* * * * *
[Amend the title and text of 4.9 for clarity to read as follows:]
4.9  Barcoded Status
    Pallet labels must indicate whether the mail on the pallet is 
barcoded, or not barcoded, or both. Specific Line 2 label information 
is in M045, M920, M930, and M940.
* * * * *
5.0  SECOND LINE CODES
    The codes shown below must be used as appropriate on Line 2 of 
sack, tray, and pallet labels.
[Amend the table in 5.0 to add a second line code for manual letter-
size pieces and to revise the entries for carrier routes, letters, and 
machinable parcels. The entries are to be inserted in alphabetical 
order to read as follows:]

------------------------------------------------------------------------
              Content type                             Code
------------------------------------------------------------------------
[Revise the code for Carrier Routes to    CR-RT or CR-RTS.
 add a new code:].
Carrier Routes..........................
------------------------------------------------------------------------
[Revise the code for Letters to add a     LTR or LTRS.
 new code:].
Letters.................................
------------------------------------------------------------------------
[Revise the entry for Machinable to       MACH.
 apply to all classes and processing
 categories:].
Machinable..............................
[Add a new entry for manual processing:]  MAN or MANUAL.
Manual (cannot be processed on automated
 equipment).
------------------------------------------------------------------------

M032  Barcoded Labels

1.0  BASIC STANDARDS--TRAY AND SACK LABELS
* * * * *
Exhibit 1.3a  3-Digit Content Identifier Numbers
[Amend Exhibit 1.3a by adding new categories and CINs. Also, in the 
human-readable content line for First-Class Mail and Standard Mail 
letters, replace ``LTRS'' with ``LTR'' and ``CR-RTS'' with ``CR-RT.'' 
The footnotes are unchanged.]

------------------------------------------------------------------------
                                                 Human-readable content
         Class and mailing              CIN               line
------------------------------------------------------------------------
          FIRST-CLASS MAIL
[For ``FCM Letters--Automation,''
 in the human-readable content
 line, replace ``LTRS'' with
 ``LTR'' and ``CR-RTS'' with ``CR-
 RT'' for all entries. Amend the
 human-readable content line for
 the 5-digit carrier routes trays
 for consistency:]
    5-digit carrier routes trays...        264  FCM LTR 5D CR-RT BC
------------------------------------------------------------------------
[For ``FCM Letters--Presorted
 (Basic Preparation),'' change the
 title and human-readable content
 line information.]
FCM Letters--Presorted
 Nonmachinable (requires or
 requests manual processing)
    5-digit trays..................        267  FCM LTR 5D MANUAL
    3-digit trays..................        269  FCM LTR 3D MANUAL
    ADC trays......................        270  FCM LTR ADC MANUAL
    Mixed ADC trays................        268  FCM LTR MANUAL WKG
------------------------------------------------------------------------
[Delete the entry for ``FCM
 Letters--Presorted (Nonautomation
 Processing).'']
------------------------------------------------------------------------
[For ``FCM Letters--Presorted
 (Upgradable Preparation),'' change
 the title and human-readable
 content line information to read
 as follows:]
FCM Letters--Presorted Machinable

[[Page 4590]]

 
    5-digit trays..................        252  FCM LTR 5D MACH
    3-digit trays..................        255  FCM LTR 3D MACH
    AADC trays.....................        258  FCM LTR AADC MACH
    Mixed AADC trays...............        260  FCM LTR MACH WKG
------------------------------------------------------------------------
           STANDARD MAIL
[For ``Enhanced Carrier Route
 Letters--Automation,'' in the
 human-readable content line,
 replace ``LTRS'' with ``LTR'' and
 ``CR-RTS'' with ``CR-RT'' for all
 entries. Amend the human-readable
 content line for the 5-digit
 carrier routes trays for
 consistency:]
    5-digit carrier routes trays...        564  STD LTR 5D CR-RT BC
------------------------------------------------------------------------
[For ``Enhanced Carrier Route
 Letters--Nonautomation,'' change
 the title and human-readable
 content line information to show
 that saturation and high-density
 letters must be barcoded to read
 as follows:]
Enhanced Carrier Route Letters--
 Barcoded
    Saturation rate trays..........        557  STD LTR BC WSS (1)
    High density rate trays........        557  STD LTR BC WSH (1)
    Basic rate trays...............        557  STD LTR BC LOT (1)
    5-digit carrier routes trays...        564  STD LTR 5D CR-RT BC
    3-digit carrier routes trays...        565  STD LTR 3D CR-RT BC
[Add the following entry for ECR
 letters that are not barcoded but
 are machinable (for mailers who
 choose not to barcode their
 machinable pieces):]
Enhanced Carrier Route Letters--
 Nonautomation (Not Barcoded but
 Machinable)
    Saturation rate trays..........        569  STD LTR MACH WSS (1)
    High density rate trays........        569  STD LTR MACH WSH (1)
    Basic rate trays...............        569  STD LTR MACH LOT (1)
    5-digit carrier routes trays...        567  STD LTR 5D CR-RT MACH
    3-digit carrier routes trays...        567  STD LTR 3D CR-RT MACH
------------------------------------------------------------------------
[Add the following entry for ECR
 letters that are not machinable
 (regardless of whether the pieces
 are barcoded):]
Enhanced Carrier Route Letters--
 Nonautomation (Nonmachinable)
    Saturation rate trays..........        608  STD LTR MAN WSS (1)
    High density rate trays........        608  STD LTR MAN WSH (1)
    Basic rate trays...............        608  STD LTR MAN LOT (1)
    5-digit carrier routes trays...        609  STD LTR 5D CR-RT MAN
    3-digit carrier routes trays...        611  STD LTR 3D CR-RT MAN
------------------------------------------------------------------------
[For ``STD Letters--Automation,''
 in the human-readable content
 line, replace ``LTRS'' with
 ``LTR'' for all entries.]
------------------------------------------------------------------------
[For ``STD Letters--Presorted
 (Basic Preparation)'' change the
 title and the human-readable
 content line information to read
 as follows:]
STD Letters--Presorted
 Nonmachinable (requires or
 requests manual processing)
    5-digit trays..................        604  STD LTR 5D MANUAL
    3-digit trays..................        606  STD LTR 3D MANUAL
    ADC trays......................        607  STD LTR ADC MANUAL
    Mixed ADC trays................        605  STD LTR MANUAL WKG
------------------------------------------------------------------------
[Delete the entry for ``STD
 Letters--Presorted (Nonautomation
 Processing).'']
------------------------------------------------------------------------
[For ``STD Letters--Presorted
 (Upgradable Preparation),'' change
 the title and the human-readable
 content line information to read
 as follows:]
STD Letters--Presorted Machinable
    5-digit trays..................        552  STD LTR 5D MACH
    3-digit trays..................        555  STD LTR 3D MACH
    AADC trays.....................        558  STD LTR AADC MACH
    Mixed AADC trays...............        560  STD LTR MACH WKG
------------------------------------------------------------------------
         PACKAGES SERVICES
Bound Printed Matter Flats--
 Automation
    5-digit sacks..................        635  PSVC FLTS 5D BC
    3-digit sacks..................        636  PSVC FLTS 3D BC
    SCF sacks......................        637  PSVC FLTS SCF BC
    ADC sacks......................        638  PSVC FLTS ADC BC
    Mixed ADC sacks................        639  PSVC FLTS BC WKG
------------------------------------------------------------------------
Media Mail and Library Mail Flats--
 Presorted
    5-digit sacks..................        649  PSVC FLTS 5D NON BC
    3-digit sacks..................        650  PSVC FLTS 3D NON BC
    ADC sacks......................        651  PSVC FLTS ADC NON BC

[[Page 4591]]

 
    Mixed ADC sacks................        653  PSVC FLTS NON BC WKG
------------------------------------------------------------------------
Media Mail and Library Mail
 Irregular Parcels--Presorted
    5-digit sacks..................        690  PSVC IRREG 5D
    5-digit scheme sacks...........        690  PSVC IRREG 5D SCH
    3-digit sacks..................        691  PSVC IRREG 3D
    ADC sacks......................        692  PSVC IRREG ADC
    Mixed ADC sacks................        694  PSVC IRREG WKG
------------------------------------------------------------------------
Media Mail and Library Mail
 Machinable Parcels--Presorted
    5-digit sacks..................        680  PSVC MACH 5D
    5-digit scheme sacks...........        680  PSVC MACH 5D SCH
    ASF sacks......................        682  PSVC MACH ASF
    BMC sacks......................        683  PSVC MACH BMC
    Mixed BMC sacks................        684  PSVC MACH WKG
------------------------------------------------------------------------

* * * * *

M033  Sacks and Trays

* * * * *
2.0  FIRST-CLASS MAIL, PERIODICALS, AND STANDARD MAIL
2.1  Letter Tray Preparation
[Revise 2.1 in its entirety to reorganize and clarify the standards for 
letter trays to read as follows:]
    Letter trays are prepared as follows:
    a. Subject to availability of equipment, standard managed mail (MM) 
trays must be used for all letter-size mail, except that extended MM 
(EMM) trays must be used when available for letter-size mail that 
exceeds the height or width (inside dimensions) of MM trays defined in 
1.3. When EMM trays are not available for those larger pieces, they 
must be placed in MM trays, angled back, or placed upright 
perpendicular to the length of the tray in row(s) to preserve their 
orientation.
    b. Pieces must be ``faced'' (oriented with all addresses in the 
same direction with the postage area in the upper right).
    c. Each tray prepared must be filled before filling the next tray, 
with the contents in multiple trays relatively balanced. When preparing 
full trays, mailers must fill all possible 2-foot trays first; if there 
is mail remaining for the presort destination, then mailers must use a 
combination of 1-foot and 2-foot trays that results in the fewest total 
number of trays.
    d. For presort destinations that do not require full trays, pieces 
are placed in a less-than-full tray.
    e. Mailers must use as few trays as possible without jeopardizing 
rate eligibility. For instance, a mailer will never have two 1-foot 
trays to a single destination; that mail must be placed in a single 2-
foot tray. A 1-foot tray is prepared only if it is a full tray with no 
overflow; or if there is less than 1 foot of mail for that destination; 
or if the overflow from a full 2-foot tray is less than 1 foot of mail.
    f. Each tray must bear the correct tray label.
    g. Each tray must be sleeved and strapped under 1.5 and 1.6.
    h. If a mailing is prepared using an MLOCR/barcode sorter and is 
submitted with standardized documentation, then pieces do not have to 
be grouped by 3-digit ZIP Code prefix (or by 3-digit scheme, if 
applicable) in AADC trays, or by AADC in mixed AADC trays.
* * * * *

M040  Pallets

M041  General Standards

* * * * *
5.0  PREPARATION
* * * * *
5.3  Minimum Load
    These standards apply to:

[Amend 5.3a to show that letter trays on pallets are measured by linear 
feet, not by the number of layers of trays to read as follows:]
    a. Periodicals, Standard Mail, and Package Services (except for 
Parcel Post mailed at BMC Presort, OBMC Presort, DSCF, and DDU rates). 
In a single mailing, the minimum load per pallet is 250 pounds of 
packages, parcels, or sacks; or 36 linear feet letter trays. In a 
mailing or mailing job presented for acceptance at a single postal 
facility, one overflow pallet with less than the required minimum may 
be prepared for mail destinating in the service area of the entry 
facility; that pallet must be properly labeled under M045. Exceptions: 
There is no minimum load for pallets entered at a DDU if the mail on 
those pallets is for that DDU's service area. For mail entered at an 
SCF, the SCF manager must authorize in writing preparation of any 5-
digit, 3-digit, or SCF pallet containing less than the minimum required 
load if the mail on those pallets is for that SCF's service area.
* * * * *
5.5  Maximum Load
[Amend 5.5 to show that all pallets are measured in inches, not in the 
number of layers of trays to read as follows:]
    The maximum weight (mail and pallet) is 2,200 pounds. The maximum 
height of a single pallet (pallet, mail, and top cap) is 77 inches. 
Exception: A single pallet that is prepared for entry at Anchorage or 
Fairbanks, AK, may not exceed a maximum height of 72 inches (pallet, 
mail, and top cap).
5.6  Mail on Pallets
    These standards apply to mail on pallets:
* * * * *
[Redesignate 5.6d through 5.6h as 5.6e through 5.6i, respectively. Add 
new 5.6d to show that letter trays on pallets are measured by linear 
feet, not by the number of layers of trays to read as follows:]
    d. For determining minimum pallet volume, mail in letter trays is 
measured in linear feet. A 2-foot tray equals 2 linear feet; a 1-foot 
tray equals 1 linear foot.
* * * * *

M045  Palletized Mailings

* * * * *
3.0  PALLET PRESORT AND LABELING
* * * * *
3.2  Standard Mail Packages, Sacks, Irregular Parcels, or Trays on 
Pallets
    Mailers must prepare pallets in the sequence listed below, except 
that mailings of sacks and trays must be prepared beginning with 3.2c 
(because scheme sort is not permitted). Pallets must be labeled 
according to the Line 1 and Line 2 information listed below and

[[Page 4592]]

under M031. At the mailer's option, packages of Standard Mail flats may 
be palletized using the advanced presort options under M920, M930, or 
M940.
* * * * *
[Amend 3.2c to show that pallets of carrier route letters must show on 
Line 2 of the pallet label whether the pieces are barcoded or not 
barcoded to read as follows:]
    c. 5-Digit Carrier Routes. Required for sacks and packages; 
optional for trays. May contain only carrier route rate mail for the 
same 5-digit ZIP Code.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code on 
mail, preceded for military mail by correct prefix in M031.
    (2) Line 2: For flats and irregulars, ``STD FLTS'' or ``STD 
IRREG''; followed by ``CARRIER ROUTES'' or ``CR-RTS.'' For trays, ``STD 
LTRS''; followed by ``CARRIER ROUTES'' or ``CR-RTS''; followed by 
``BC'' if the pallet contains barcoded letters; followed by ``MACH'' if 
the pallet contains nonbarcoded machinable letters; followed by ``MAN'' 
if the pallet contains nonmachinable letters.
* * * * *
[Amend 3.2e through 3.2i to show that pallets must indicate on Line 2 
of the pallet label whether the pieces are barcoded (``BC''), not 
barcoded but machinable (``MACH''), or nonmachinable (``MAN'') to read 
as follows:]
    e. 3-Digit. Optional. May contain carrier route rate, automation 
rate, and/or Presorted rate mail.
    (1) Line 1: use L002, Column A.
    (2) Line 2: For flats and irregulars, ``STD FLTS 3D'' or ``STD 
IRREG 3D''; followed by ``BARCODED'' or ``BC'' if the pallet contains 
automation rate mail; followed by ``NONBARCODED'' or ``NBC'' if the 
pallet contains Presorted rate and/or carrier route rate mail. For 
letters, ``STD LTRS 3D''; followed by ``BC'' if the pallet contains 
barcoded letters; followed by ``MACH'' if the pallet contains 
nonbarcoded machinable letters; followed by ``MAN'' if the pallet 
contains nonmachinable letters.
    f. SCF. Required. May contain carrier route rate, automation rate, 
and/or Presorted rate mail.
    (1) Line 1: use L002, Column C.
    (2) Line 2: For flats and irregulars, ``STD FLTS SCF'' or ``STD 
IRREG SCF'; followed by ``BARCODED'' or ``BC'' if the pallet contains 
automation rate mail; followed by ``NONBARCODED'' or ``NBC'' if the 
pallet contains Presorted rate and/or carrier route rate mail. For 
letters, ``STD LTRS SCF''; followed by ``BC'' if the pallet contains 
barcoded letters; followed by ``MACH'' if the pallet contains 
nonbarcoded machinable letters; followed by ``MAN'' if the pallet 
contains nonmachinable letters.
    g. ASF. Required, except that an ASF sort may not be required if 
using package reallocation for flats to protect the BMC pallet under 
5.0. May contain carrier route rate, automation rate, and/or Presorted 
rate mail. Sort ADC packages, trays, or sacks to ASF pallets based on 
the ``label to'' ZIP Code for the ADC destination of the package, tray, 
or sack in L004 (letters or flats) or L603 (irregular parcels). Sort 
AADC trays to ASF pallets based on the ``label to'' ZIP Code for the 
AADC destination of the tray in L801. See E650.5.0 for additional 
requirements for DBMC rate eligibility.
    (1) Line 1: use L602.
    (2) Line 2: For flats and irregulars, ``STD FLTS ASF'' or ``STD 
IRREG ASF'; followed by ``BARCODED'' or ``BC'' if the pallet contains 
automation rate mail; followed by ``NONBARCODED'' or ``NBC'' if the 
pallet contains Presorted rate and/or carrier route rate mail. For 
letters, ``STD LTRS ASF''; followed by ``BC'' if the pallet contains 
barcoded letters; followed by ``MACH'' if the pallet contains 
nonbarcoded machinable letters; followed by ``MAN'' if the pallet 
contains nonmachinable letters.
    h. BMC. Required. May contain carrier route rate, automation rate, 
and/or Presorted rate mail. Sort ADC packages, trays, or sacks to BMC 
pallets based on the ``label to'' ZIP Code for the ADC destination of 
the package, tray, or sack in L004 (letters or flats) or L603 
(irregular parcels). Sort AADC trays to BMC pallets based on the 
``label to'' ZIP Code for the AADC destination of the tray in L801. See 
E650.5.0 for additional requirements for DBMC rate eligibility.
    (1) Line 1: use L601.
    (2) Line 2: For flats and irregulars, ``STD FLTS BMC'' or ``STD 
IRREG BMC'; followed by ``BARCODED'' or ``BC'' if the pallet contains 
automation rate mail; followed by ``NONBARCODED'' or ``NBC'' if the 
pallet contains Presorted rate and/or carrier route rate mail. For 
letters, ``STD LTRS BMC''; followed by ``BC'' if the pallet contains 
barcoded letters; followed by ``MACH'' if the pallet contains 
nonbarcoded machinable letters; followed by ``MAN if the pallet 
contains nonmachinable letters.
    i. Mixed BMC (for sacks and trays on pallets only). Optional. May 
contain carrier route rate, automation rate, and/or Presorted rate 
mail.
    (1) Line 1: use ``MXD'' followed by the information in L601, Column 
B, for the BMC serving the 3-digit ZIP Code prefix of the entry post 
office (label to plant serving entry post office if authorized by the 
processing and distribution manager).
    (2) Line 2: For flats and irregulars, ``STD FLTS'' or ``STD IRREG'; 
followed by ``BARCODED'' or ``BC'' if the pallet contains automation 
rate mail; followed by ``NONBARCODED'' or ``NBC'' if the pallet 
contains Presorted rate and/or carrier route rate mail; followed by 
``WKG.'' For letters, ``STD LTRS''; followed by ``BC'' if the pallet 
contains barcoded letters; followed by ``MACH'' if the pallet contains 
nonbarcoded machinable letters; followed by ``MAN if the pallet 
contains nonmachinable letters; followed by ``WKG.''

[Revise the title and text of 3.3a to read as follows:]
3.3  Package Services Flats--Packages and Sacks on Pallets
    Mailers must prepare pallets in the sequence listed below, except 
that mailings of sacks on pallets must be prepared beginning with 3.3c. 
Pallets must be labeled according to the Line 1 and Line 2 information 
listed below and under M031.
    a. 5-Digit Scheme Carrier Routes. Required for packages of BPM 
flats on pallets. Not permitted for sacks on pallets. May contain only 
carrier route rate packages for the same 5-digit scheme under L001. 
Scheme sort must be done for all 5-digit scheme destinations. For all 
5-digit destinations that are not part of a scheme, prepare 5-digit 
carrier routes pallets under 3.3c.
    (1) Line 1: use L001, Column B.
    (2) Line 2: ``PSVC FLTS,'' followed by ``CARRIER ROUTES'' or ``CR-
RTS'' and ``SCHEME'' or ``SCH.'' * * *
* * * * *
[Amend the title of 3.4 by replacing Bound Printed Matter with Package 
Services Irregular Parcels to read as follows:]
3.4  Package Services Irregular Parcels--Packages and Sacks on Pallets
* * * * *
[Revise the title of 3.5 to read as follows:]
3.5  Machinable Parcels--Standard Mail and Package Services
* * * * *
[Remove section 3.6, Presorted Media Mail and Library Mail.]
* * * * *

M050  Delivery Sequence

* * * * *
4.0  DOCUMENTATION
4.1  General
[Amend the first paragraph of 4.1 to clarify that signing a postage 
statement

[[Page 4593]]

certifies the mail meets the requirements for the rates claimed to read 
as follows:]
    For Periodicals, the postage statement must be annotated in the 
``Sequencing Date'' block on each of the lines where carrier route 
basic, high density, and saturation per piece rate postage is reported. 
For Standard Mail, the postage statement must be annotated in the 
``Sequencing Date'' block on the front of the postage statement where 
total postage for Enhanced Carrier Route rates is reported. The mailer 
must provide documentation to substantiate compliance with the 
standards for carrier route sequencing. The mailer's signature on the 
postage statement certifies that this standard has been met when the 
corresponding mail is presented to the USPS. Unless the documentation 
is submitted with the corresponding mailing, the mailer must be able to 
provide the USPS with documentation of accurate sequencing or delivery 
statistics for each carrier route to which walk-sequence and basic rate 
pieces are mailed. The mailer must annotate the postage statement to 
show the earliest (oldest) date of the method (in 4.1a through 4.1e) 
used to obtain sequencing information for the mailing. Acceptable forms 
of documentation are: * * *
* * * * *

M100  First-Class Mail (Nonautomation)

* * * * *

M130  Presorted First-Class Mail

1.0  BASIC STANDARDS
* * * * *
[Revise the title and text of 1.5 to read as follows:]
1.5  Nonmachinable Pieces
    Nonmachinable cards and letters must use the preparation sequence 
in 3.0. Nonmachinable flats must use the preparation sequence in 4.0.

[Redesignate 1.6, Co-Traying With Automation Rate Mail, as 1.7. Add new 
1.6 for the manual only option to read as follows:]
1.6  Manual Only Option
    Mailers who prefer that the USPS not automate letter-size pieces 
(including cards) must use the packaging and tray preparation sequence 
for nonmachinable pieces in 3.0. The manual only option is not 
available for flats.

[Replace 2.0 with the preparation for cards and machinable letters to 
read as follows: (this preparation is very similar to the current 
upgradable preparation). Machinable pieces are packaged only to 
maintain their orientation in the tray.]
2.0  PREPARATION--MACHINABLE LETTER-SIZE PIECES
2.1  Packaging
    Machinable pieces are not packaged, except for (see M020):
    a. Card-size pieces.
    b. All pieces in a less-than-full origin 3-digit tray.
    c. All pieces in a less-than-full mixed AADC tray.
2.2  Tray Preparation and Labeling
    Preparation sequence, tray size, and labeling:
    a. 5-digit: optional; full trays only; no overflow.
    (1) Line 1: use 5-digit ZIP Code on mail, preceded for military 
mail by correct prefix in M031.
    (2) Line 2: ``FCM LTR 5D MACH.''
    b. 3-digit: required; full trays only, except for one less-than-
full tray for each origin 3-digit(s); no overflow.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``FCM LTR 3D MACH.''
    c. AADC: required; full trays only; no overflow.
    (1) Line 1: use L801, Column B.
    (2) Line 2: ``FCM LTR AADC MACH.''
    d. Mixed AADC: required; no minimum.
    (1) Line 1: use ``MXD'' followed by city/state/ZIP Code of facility 
serving 3-digit ZIP Code prefix of entry post office, as shown in L002, 
Column C.
    (2) Line 2: ``FCM LTR MACH WKG.''

[Replace 3.0, Upgradable Preparation, with the preparation instructions 
for nonmachinable and manual only cards and letters to read as 
follows:]
3.0  PREPARATION--NONMACHINABLE LETTER-SIZE PIECES
3.1  Packaging
    Packaging is required. Mailers who prefer that the USPS not 
automate letter-size pieces must identify each package with a facing 
slip on which ``MANUAL ONLY'' is printed or use a ``MANUAL ONLY'' 
optional endorsement line (see M013).
    Preparation sequence, package size, and labeling:
    a. 5-digit: required (10-piece minimum); red Label D or optional 
endorsement line (OEL); labeling is not required for pieces in full 5-
digit trays.
    b. 3-digit: required (10-piece minimum); green Label 3 or OEL.
    c. ADC: required (10-piece minimum); pink Label A or OEL.
    d. Mixed ADC: required (no minimum); tan Label MXD or OEL.
3.2  Exception to Packaging
    Under certain conditions, nonmachinable pieces may not need to be 
packaged (see M020.1.9).
3.3  Tray Preparation and Labeling
    Preparation sequence, tray size, and labeling:
    a. 5-digit: required; full trays only; no overflow.
    (1) Line 1: use 5-digit ZIP Code on mail, preceded for military 
mail by correct prefix in M031.
    (2) Line 2: ``FCM LTR 5D MANUAL.''
    b. 3-digit: required; full trays only, except for one less-than-
full tray for each origin 3-digit(s); no overflow.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``FCM LTR 3D MANUAL.''
    c. ADC: required; full trays only; no overflow.
    (1) Line 1: use L004, Column B.
    (2) Line 2: ``FCM LTR ADC MANUAL.''
    d. Mixed ADC: required; no minimum.
    (1) Line 1: use ``MXD'' followed by city/state/ZIP Code of facility 
serving 3-digit ZIP Code prefix of entry post office, as shown in L002, 
Column C.
    (2) Line 2: ``FCM LTR MANUAL WKG.''

[Revise the title of 4.0 to read as follows:]
4.0  PREPARATION--FLATS
* * * * *
[Redesignate 4.2 and 4.3 as 4.3 and 4.4, respectively. Add new 4.2 to 
show that flats do not have to be packaged under certain conditions to 
read as follows:]
4.2  Exception to Packaging
    Under certain conditions, flat-size pieces may not need to be 
packaged (see M020.1.9).
* * * * *

M200  Periodicals (Nonautomation)

M210  Presorted Rates

* * * * *
[Remove section 6.0, Combining Multiple Publications or Editions.]

M220 Carrier Route Rates

* * * * *
[Remove section 6.0, Combining Multiple Publications or Editions.][Add 
new M230 to read as follows:]

M230  Combining Multiple Editions or Publications

1.0  DESCRIPTION
    A combined mailing is a mailing in which two or more Periodicals 
publications or editions are merged into a single mailstream, during 
production or after finished copies are produced,

[[Page 4594]]

and all copies of all the publications or editions are presorted 
together into packages to achieve the finest presort level possible for 
the combined mailing.
2.0  VOLUME
    More than one Periodicals publication, or edition of a publication, 
may be combined to meet the volume standard per tray, sack, or package 
for the rate claimed.
3.0  EACH PIECE
    Each piece must meet the basic standards in E211 and the specific 
standards of the rate claimed.
4.0  DOCUMENTATION
    Presort documentation required under P012 must also show the total 
number of addressed pieces and copies of each publication or edition 
mailed to each carrier route, 5-digit, and 3-digit destination. The 
publisher must also provide a list, by 3-digit ZIP Code prefix, of the 
number of addressed pieces and copies of each publication or edition 
qualifying for the DDU, DSCF, and DADC rate, as applicable.
5.0  SEPARATE POSTAGE STATEMENTS
    A separate postage statement must be prepared for the per pound 
postage computations for each publication or edition that is part of 
the combined mailing. The title and issue date of the publications with 
which each publication or edition was combined must be noted on, or 
attached to, the postage statements. The per piece postage computations 
for all other than preferred rate publications must be calculated on 
the postage statement for the publication containing the higher (or 
highest) amount of advertising. The per piece postage computations for 
all preferred rate publications must be calculated on the postage 
statement for the publication containing the higher (or highest) amount 
of advertising. The nonadvertising adjustment must be computed on the 
appropriate postage statement for each rate category based on the 
publication (or edition, if applicable) containing the higher (or 
highest) amount of advertising matter for that rate category.
* * * * *

M600  Standard Mail (Nonautomation)

M610  Presorted Standard Mail

1.0  BASIC STANDARDS
* * * * *
[Redesignate 1.5 and 1.6 as 1.6 and 1.7, respectively. Add new 1.5 to 
account for the new preparation for nonmachinable pieces to read as 
follows:]
1.5  Nonmachinable Pieces
    Nonmachinable cards and letters must use the preparation sequence 
and tray labeling in 3.0.

[Revise the title and text of redesignated 1.6 to read as follows:]
1.6  Manual Only Option
    Mailers who prefer that the USPS not automate letter-size pieces 
(including cards) must use the packaging and tray preparation sequence 
for nonmachinable pieces in 3.0. The manual only option is not 
available for flats.

[Replace 2.0 with the preparation for machinable cards and letters 
(this preparation is very similar to the current upgradable 
preparation). Machinable pieces are packaged only to maintain their 
orientation in the tray.]
2.0  PREPARATION--MACHINABLE LETTER-SIZE PIECES
2.1  Packaging
    Machinable pieces are not packaged, except for (see M020):
    a. Card-size pieces.
    b. All pieces in a less-than-full origin 3-digit tray.
    c. All pieces in a less-than-full mixed AADC tray.
2.2  Tray Preparation and Labeling
    Only mail eligible for the 3/5 rate (i.e., 150 or more pieces for 
the 3-digit area) may be prepared in 5-digit and 3-digit trays. 
Preparation sequence, tray size, and labeling:
    a. 5-digit: optional (full trays); no overflow.
    (1) Line 1: use 5-digit ZIP Code on mail, preceded for military 
mail by correct prefix in M031.
    (2) Line 2: ``STD LTR 5D MACH.''
    b. 3-digit: required (no minimum).
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``STD LTR 3D MACH.''
    c. Origin 3-digit(s): required (no minimum); optional for entry 3-
digit(s) (no minimum).
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``STD LTR 3D MACH.''
    d. AADC: required (full trays); no overflow; group pieces by 3-
digit ZIP Code prefix.
    (1) Line 1: use L801.
    (2) Line 2: ``STD LTR AADC MACH.''
    e. Mixed AADC: required (no minimum); group pieces by AADC.
    (1) Line 1: use L802 (for mail entered at an ASF or BMC) or L803.
    (2) Line 2: ``STD LTR MACH WKG.''

[Replace 3.0, Upgradable Preparation, with the new preparation for 
nonmachinable piece to read as follows:]
3.0   PREPARATION--NONMACHINABLE LETTER-SIZE PIECES
3.1  Packaging
    Packaging is required for nonmachinable pieces and for any pieces 
that mailers do not want the USPS to automate. Mailers who prefer that 
the USPS not automate their pieces must identify each package with a 
facing slip on which ``MANUAL ONLY'' is printed or use a ``MANUAL 
ONLY'' optional endorsement line (see M013). Preparation sequence, 
package size, and labeling:
    a. 5-digit: required (10-piece minimum, fewer not permitted); red 
Label D or optional endorsement line (OEL); labeling is not required 
for pieces in full 5-digit trays.
    b. 3-digit: required (10-piece minimum, fewer not permitted); green 
Label 3 or OEL.
    c. ADC: required (10-piece minimum, fewer not permitted); pink 
Label A or OEL.
    d. Mixed ADC: required (no minimum); tan Label MXD or OEL.
3.2   Exception to Packaging
    Under certain conditions, nonmachinable pieces may not need to be 
packaged (see M020.1.9).
3.3   Tray Preparation and Labeling
    Only mail eligible for the 3/5 rate (i.e., 150 or more pieces for 
the same 3-digit area) may be prepared in 5-digit and 3-digit trays. 
Preparation sequence, tray size, and labeling:
    a. 5-digit: required (full trays); no overflow.
    (1) Line 1: use 5-digit ZIP Code on mail, preceded for military 
mail by correct prefix in M031.
    (2) Line 2: ``STD LTR 5D MANUAL.''
    b. 3-digit: required (no minimum).
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``STD LTR 3D MANUAL.''
    c. Origin 3-digit(s): required (one-package minimum); optional for 
entry 3-digit(s) (no minimum).
    (1) Line 1, use L002, Column A.
    (2) Line 2: ``STD LTR 3D MANUAL.''
    d. ADC: required (full trays); no overflow.
    (1) Line 1, use L004.
    (2) Line 2: ``STD LTR ADC MANUAL.''
    e. Mixed ADC: required (no minimum).
    (1) Line 1: use ``MXD'' followed by city/state/ZIP Code of ADC 
serving 3-digit ZIP Code prefix of entry post office, as shown in L004.
    (2) Line 2: ``STD LTR MANUAL WKG.''
* * * * *

[[Page 4595]]

M620  Enhanced Carrier Route Standard Mail

* * * * *
3.0   TRAY PREPARATION--LETTER-SIZE PIECES
[Merge current 3.1 and 3.2 into a single 3.1 and amend the Line 2 
information to show the barcoded status to read as follows:]
3.1   Tray Preparation and Labeling
    Preparation sequence, tray size, and labeling:
    a. Carrier route: required; full trays only, no overflow.
    (1) Line 1: use 5-digit ZIP Code on package, preceded for military 
mail by correct prefix in M031.
    (2) Line 2:
    (a) Saturation: ``STD LTR BC WSS,'' followed by route type and 
number.
    (b) High density: ``STD LTR BC WSH,'' followed by route type and 
number.
    (c) Basic: ``STD LTR BC LOT,'' followed by route type and number.
    b. 5-digit carrier routes: required if full tray, optional with 
minimum one 10-piece package.
    (1) Line 1: use 5-digit ZIP Code on package, preceded for military 
mail by correct prefix in M031.
    (2) Line 2: ``STD LTR 5D CR-RT BC.''
    c. 3-digit carrier routes: optional with minimum one 10-piece 
package for each of two or more 5-digit areas.
    (1) Line 1: use city/state/ZIP Code shown in L002, Column A, that 
corresponds to 3-digit ZIP Code prefix on package.
    (2) Line 2: ``STD LTR 3D CR-RT BC.''

[Add new 3.2 to show the Line 2 information for trays containing mail 
that is machinable but is not barcoded to read as follows:]
3.2   Tray Line 2 for Machinable Nonbarcoded Pieces
    For trays that contain letter-size pieces that are machinable but 
not barcoded, use ``MACH'' on Line 2 in place of ``BC.''

[Add new 3.3 to show the Line 2 information for trays containing mail 
that is nonmachinable (barcoded or not) to read as follows:]
3.3   Tray Line 2 for Nonmachinable Pieces
    For trays that contain letter-size pieces that are nonmachinable, 
use ``MAN'' on Line 2 in place of ``BC.''

[Add new 3.4 to show Line 2 information for trays containing simplified 
address pieces to read as follows:]
3.4   Tray Line 2 for Pieces with Simplified Address
    For trays that contain letter-size pieces that bear a simplified 
address, use ``MAN'' on Line 2 in place of ``BC.''
* * * * *

M700  Package Services

M710  Parcel Post

* * * * *
2.0   DSCF RATE
[Amend 2.1 to add DSCF rate 3-digit nonmachinable parcels to read as 
follows:]
2.1   General
    To qualify for the DSCF rate, pieces must be for the same SCF area 
under L005 and must be prepared as follows:
    a. Sorted to optional 5-digit scheme destinations under L606, 
Column B, and 5-digit destinations, either in sacks under 2.2 or 
directly on pallets or in pallet boxes on pallets under M041 and M045. 
Pieces must be part of a mailing of at least 50 Parcel Post pieces. 
They must be entered at the designated SCF under L005 that serves the 
5-digit ZIP Code destinations of the pieces except when palletized and 
entry is required at a BMC (see Exhibit E751.6.0). The DSCF rate is not 
available for palletized mail for facilities that are unable to handle 
palletized mailings. Refer to the Drop Shipment Product available from 
the National Customer Support Center (NCSC) (see G043) and Exhibit 
E751.7.0 and Exhibit E751.8.0 to determine if the facility serving the 
5-digit destination can handle pallets. There is a charge for the Drop 
Shipment Product.
    b. Any remaining nonmachinable parcels (as defined in C700.2.0) 
sorted to 3-digit ZIP Code prefixes L002; Column A. Machinable parcels 
may not be sorted to the 3-digit level.
* * * * *

M720  Bound Printed Matter

M721  Single-Piece Bound Printed Matter

1.0  BASIC STANDARDS
1.1  General
[Amend 1.1 by adding a sentence at the end for barcoded single-piece 
rate Bound Printed Matter to read as follows:]
    * * * Bound Printed Matter claiming a barcoded discount must meet 
the applicable standards in E712.
* * * * *

M730  Media Mail

[Revise 1.0 to read as follows:]
1.0   BASIC STANDARDS
1.1  General
    There are no presort, sacking, or labeling standards for single-
piece Media Mail. All mailings of presorted Media Mail are subject to 
the standards in 2.0 through 4.0 and to these general requirements:
    a. Each mailing must meet the applicable standards in E710, E713, 
and in M010, M020, and M030.
    b. All pieces in a mailing must be within the same processing 
category as described in C050. A Media Mail irregular parcel is a piece 
that is not a machinable parcel as defined in C050.4.1 or a flat as 
defined in C050.3.1. Pieces that meet the size and weight standards for 
a machinable parcel but are not individually boxed or packaged to 
withstand processing on BMC parcel sorters under C010 also are 
irregular parcels.
    c. All pieces must be sorted to the finest extent possible under 
2.0 through 4.0 or palletized under M045.
    d. Each piece claimed at Media Mail rates must be marked ``Media 
Mail'' under M012. Each piece claimed at presorted Media Mail rates 
also must be marked ``Presorted'' or ``PRSRT'' under M012.
1.2   Documentation
    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing. Documentation of 
postage is not required if the correct rate is affixed to each piece or 
if each piece is of identical weight, and the pieces are separated by 
rate level at the time of mailing.

[Revise 2.0 to read as follows:]
2.0   PREPARATION--FLATS
2.1  Required Packaging
    A package must be prepared when the quantity of addressed pieces 
for a required presort level reaches a minimum of 10 pieces. Smaller 
volumes are not permitted. The maximum weight of each physical package 
is 20 pounds, except that 5-digit packages placed in 5-digit sacks may 
weigh a maximum of 40 pounds. Each physical package must contain at 
least two addressed pieces.
2.2   Package Preparation
    Packages must be prepared and labeled in the following required 
sequence:
    a. 5-digit: required; red Label D or optional endorsement line 
(OEL).
    b. 3-digit: required; green Label 3 or OEL.
    c. ADC: required; pink Label A or OEL.

[[Page 4596]]

    d. Mixed ADC: required (no minimum); tan Label MXD or OEL.
2.3   Required Sacking
    A sack must be prepared when the quantity of mail for a required 
presort destination reaches the minimums specified in 2.4. Smaller 
volumes are not permitted.
2.4   Sack Preparation and Labeling
    Sacks must be prepared and labeled in the following sequence:
    a. 5-digit: optional, except required for 5-digit rate (10 piece 
minimum).
    (1) Line 1: use 5-digit ZIP Code on packages, preceded for military 
mail by correct prefix in M031.
    (2) Line 2: ``PSVC FLTS 5D NON BC.''
    b. 3-digit: required (20 piece minimum).
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``PSVC FLTS 3D NON BC.''
    c. ADC: required (20 piece minimum).
    (1) Line 1: use L004, Column B.
    (2) Line 2: ``PSVC FLTS ADC NON BC.''
    d. Mixed ADC: required (no minimum).
    (1) Line 1: use ``MXD'' followed by city/state/ZIP Code of ADC 
serving 3-digit ZIP Code prefix of entry post office, as shown in L004, 
Column B.
    (2) Line 2: ``PSVC FLTS NON BC WKG.''

[Add new 3.0 to read as follows:]
3.0  PREPARATION--IRREGULAR PARCELS
3.1  Required Packaging
    A package must be prepared when the quantity of addressed pieces 
for a required presort level reaches a minimum of 10 pieces, except 
that packaging is not required for pieces placed in 5-digit scheme 
sacks and 5-digit sacks when such pieces are enclosed in an envelope, 
full-length sleeve, full-length wrapper, or polybag and the minimum 
package volume is met. The maximum weight of each physical package is 
20 pounds, except that 5-digit packages placed in 5-digit sacks may 
weigh a maximum of 40 pounds. Each physical package must contain at 
least two addressed pieces. Packaging is also subject to these 
conditions:
    a. Identical-weight pieces that weigh 1 pound or less must be 
prepared using the 10-piece minimum; those that weigh more than 1 pound 
must be prepared using the 10-pound minimum.
    b. For nonidentical-weight pieces, mailers must either use the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 10-piece 
or 10-pound minimum applies), or package by the actual piece count or 
mail weight for each sack, if documentation can be provided with the 
mailing that shows (specifically for each sack) the number of pieces in 
each package and their total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the piece count, weight, or both.
3.2   Package Preparation
    Packages must be prepared and labeled in the following sequence:
    a. 5-digit: required; red Label D or optional endorsement line 
(OEL).
    b. 3-digit: required; green Label 3 or OEL.
    c. ADC: required; pink Label A or OEL.
    d. Mixed ADC: required (no minimum); tan Label MXD or OEL.
3.3   Required Sacking
    A sack must be prepared when the quantity of mail for a required 
presort destination reaches either 10 addressed pieces or 20 pounds, 
whichever occurs first. Smaller volumes are not permitted (except in 
mixed ADC sacks). Optional 5-digit scheme sacks may be prepared only 
when there are at least 10 addressed pieces or 20 pounds. Smaller 
volumes are not permitted. Sacking is also subject to these conditions:
    a. Identical-weight pieces weighing 2 pounds or less must be sacked 
using the 10-piece minimum; those that weigh more must be sacked using 
the 20-pound minimum.
    b. For nonidentical-weight pieces, mailers must use either the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 10-piece 
or 20-pound minimum applies). Alternatively, mailers may sack by the 
actual piece count or mail weight for each destination, provided that 
documentation can be provided with the mailing that shows (specifically 
for each sack) the number of pieces in each sack and their total 
weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the piece count, weight, or both.
3.4   Sack Preparation and Labeling
    Sacks must be prepared and labeled in the following sequence:
    a. 5-digit scheme: optional.
    (1) Line 1: use L606, Column B.
    (2) Line 2: ``PSVC IRREG 5D SCHEME'' or ``PSVC IRREG 5D SCH.''
    b. 5-digit: required.
    (1) Line 1: use 5-digit ZIP Code on packages, preceded for military 
mail by correct prefix in M031.
    (2) Line 2: ``PSVC IRREG 5D.''
    c. 3-digit: required.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``PSVC IRREG 3D.''
    d. ADC: required.
    (1) Line 1: use L004, Column B.
    (2) Line 2: ``PSVC IRREG ADC.''
    e. Mixed ADC: required (no minimum).
    (1) Line 1: use ``MXD'' followed by city/state/ZIP Code of ADC 
serving 3-digit ZIP Code prefix of entry post office, as shown in L004, 
Column B.
    (2) Line 2: ``PSVC IRREG WKG.''

[Add new 4.0 to read as follows:]
4.0  PREPARATION--MACHINABLE PARCELS
4.1  Sacking
    A sack must be prepared when the quantity of mail for a required 
presort destination reaches 7 addressed pieces or 20 pounds whichever 
occurs first for optional 5-digit scheme or 5-digit sacks, or 10 pieces 
or 20 pounds whichever occurs first for BMC sacks. Smaller volumes are 
not permitted. Sacking also is subject to these conditions:
    a. Identical-weight pieces that weigh 2 pounds or less must be 
sacked using the 10-piece minimum; those that weigh more must be sacked 
using the 20-pound minimum.
    b. For nonidentical-weight pieces, mailers must use either the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 10-piece 
or 20-pound minimum applies) or sack by the actual piece count or mail 
weight for each package destination, provided that documentation can be 
provided with the mailing that shows (specifically for each sack) the 
number of pieces and their total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the piece count, weight, or both.
4.2  Sack Preparation and Labeling
    Sacks must be prepared and labeled in the following sequence:
    a. 5-digit scheme: optional.
    (1) Line 1: use L606, Column B.
    (2) Line 2: ``PSVC MACH 5D SCHEME'' or ``PSVC MACH 5D SCH.''
    b. 5-digit: required.
    (1) Line 1: use 5-digit ZIP Code on parcels, preceded for military 
mail by correct prefix in M031.

[[Page 4597]]

    (2) Line 2: ``PSVC MACH 5D.''
    c. BMC: required.
    (1) Line 1: use L601, Column B.
    (2) Line 2: ``PSVC MACH BMC.''
    d. Mixed BMC: required (no minimum).
    (1) Line 1: ``MXD'' followed by information in L601, Column B, for 
BMC serving 3-digit ZIP Code of entry post office.
    (2) Line 2: ``PSVC MACH WKG.''

M740  Library Mail

1.0  BASIC STANDARDS
[Revise 1.0 to read as follows:]
1.1  General
    There are no presort, sacking, or labeling standards for single-
piece Library Mail. All mailings of Presorted Library Mail are subject 
to the standards in 2.0 through 4.0 and to these general standards:
    a. Each mailing must meet the applicable standards in E710, E714, 
and in M010, M020, and M030.
    b. All pieces in a mailing must be within the same processing 
category as described in C050. A Library Mail irregular parcel is a 
piece that is not a machinable parcel as defined in C050.4.1 or a flat 
as defined in C050.3.1. Pieces that meet the size and weight standards 
for a machinable parcel but are not individually boxed or packaged to 
withstand processing on BMC parcel sorters under C010 are also 
considered irregular parcels.
    c. All pieces must be sorted to the finest extent possible under 
2.0 through 4.0 or palletized under M045.
    d. Each piece claimed at Library Mail rates must be marked 
``Library Mail'' under M012. Each piece claimed at presorted Library 
Mail rates also must be marked ``Presorted'' or ``PRSRT'' under M012.
1.2  Documentation
    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing. Documentation of 
postage is not required if the correct rate is affixed to each piece or 
if each piece is of identical weight, and the pieces are separated by 
rate level at the time of mailing.

[Revise the title and text of 2.0 to read as follows:]
2.0  PREPARATION--FLATS
2.1  Required Packaging
    A package must be prepared when the quantity of addressed pieces 
for a required presort level reaches a minimum of 10 pieces. Smaller 
volumes are not permitted. The maximum weight of each physical package 
is 20 pounds, except that 5-digit packages, placed in 5-digit sacks may 
weigh a maximum of 40 pounds. Each physical package must contain at 
least two addressed pieces.
2.2  Package Preparation
    Packages must be prepared and labeled in the following sequence:
    a. 5-digit: optional; red Label D or optional endorsement line 
(OEL).
    b. 3-digit: required; green Label 3 or OEL.
    c. ADC: required; pink Label A or OEL.
    d. Mixed ADC: required (no minimum); tan Label MXD or OEL.
2.3  Required Sacking
    A sack must be prepared when the quantity of mail for a required 
presort destination reaches the minimums specified in 2.4. Smaller 
volumes are not permitted.
2.4  Sack Preparation and Labeling
    Sacks must be prepared and labeled in the following sequence:
    a. 5-digit: optional, except required for 5-digit rate (10 piece 
minimum).
    (1) Line 1, use 5-digit ZIP Code on packages, preceded for military 
mail by correct prefix in M031.
    (2) Line 2: ``PSVC FLTS 5D NON BC.''
    b. 3-digit: required; (20 piece minimum).
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``PSVC FLTS 3D NON BC.''
    c. ADC: required; (20 piece minimum).
    (1) Line 1: use L004, Column B.
    (2) Line 2: ``PSVC FLTS ADC NON BC.''
    d. Mixed ADC: required; (no minimum).
    (1) Line 1: use ``MXD'' followed by city/state/ZIP Code of ADC 
serving 3-digit ZIP Code prefix of entry post office, as shown in L004, 
Column B.
    (2) Line 2: ``PSVC FLTS NON BC WKG.''

[Add new 3.0 to read as follows:]
3.0  PREPARATION--IRREGULAR PARCELS
3.1  Required Packaging
    A package must be prepared when the quantity of addressed pieces 
for a required presort level reaches a minimum of 10 pieces, except 
that packaging is not required for pieces placed in 5-digit scheme 
sacks and 5-digit sacks when such pieces are enclosed in an envelope, 
full-length sleeve, full-length wrapper, or polybag and the minimum 
package volume is met. The maximum weight of each physical package is 
20 pounds, except that 5-digit packages placed in 5-digit sacks may 
weigh a maximum of 40 pounds. Each physical package must contain at 
least two addressed pieces. Packaging is also subject to these 
conditions:
    a. Identical-weight pieces that weigh 1 pound or less must be 
prepared using the 10-piece minimum; those that weigh more than 1 pound 
must be prepared using the 10-pound minimum.
    b. For nonidentical-weight pieces, mailers must use either the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 10-piece 
or 10-pound minimum applies) or package by the actual piece count or 
mail weight for each sack, if documentation can be provided with the 
mailing that shows (specifically for each sack) the number of pieces 
and their total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the piece count, weight, or both.
3.2  Package Preparation
    Packages must be prepared and labeled in the following sequence:
    a. 5-digit: required; red Label D or optional endorsement line 
(OEL).
    b. 3-digit: required; green Label 3 or OEL.
    c. ADC: required; pink Label A or OEL.
    d. Mixed ADC: required (no minimum); tan Label MXD or OEL.
3.3  Required Sacking
    A sack must be prepared when the quantity of mail for a required 
presort destination reaches either 10 addressed pieces or 20 pounds, 
whichever occurs first. Smaller volumes are not permitted (except in 
mixed ADC sacks). Optional 5-digit scheme sacks may be prepared only 
when there are at least 10 addressed pieces or 20 pounds, whichever 
occurs first. Smaller volumes are not permitted. Sacking is also 
subject to these conditions:
    a. Identical-weight pieces weighing 2 pounds or less must be sacked 
using the 10-piece minimum; those that weigh more must be sacked using 
the 20-pound minimum.
    b. For nonidentical-weight pieces, mailers must use the minimum 
that applies to the average piece weight for the entire mailing (divide 
the net weight of the mailing by the number of pieces; the resulting 
average single-piece weight determines whether the 10 piece or 20 pound 
minimum applies). Alternatively, mailers may sack by the actual piece

[[Page 4598]]

count or mail weight for each package destination, if documentation can 
be provided with the mailing that shows (specifically for each sack) 
the number of pieces and their total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the piece count, weight, or both.
3.4  Sack Preparation and Labeling
    Sacks must be prepared and labeled in the following sequence:
    a. 5-digit scheme: optional.
    (1) Line 1: use L606, Column B.
    (2) Line 2: ``PSVC IRREG 5D SCHEME'' or ``PSVC IRREG 5D SCH.''
    b. 5-digit: required.
    (1) Line 1: use 5-digit ZIP Code on packages, preceded for military 
mail by correct prefix in M031).
    (2) Line 2: ``PSVC IRREG 5D.''
    c. 3-digit: required.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``PSVC IRREG 3D.''
    d. ADC: required.
    (1) Line 1: use L004, Column B.
    (2) Line 2: ``PSVC IRREG ADC.''
    e. Mixed ADC: required; (no minimum).
    (1) Line 1: use ``MXD'' followed by city/state/ZIP Code of ADC 
serving 3-digit ZIP Code prefix of entry post office, as shown in L004, 
Column B.
    (2) Line 2: ``PSVC IRREG WKG.''

[Add new 4.0 to read as follows:]
4.0  PREPARATION--MACHINABLE PARCELS
4.1  Required Sacking
    A sack must be prepared when the quantity of mail for a required 
presort destination reaches 7 addressed pieces or 20 pounds whichever 
occurs first for optional 5-digit scheme or 5-digit sacks, or 10 pieces 
or 20 pounds whichever occurs first for BMC sacks. Smaller volumes are 
not permitted. Sacking is also subject to these conditions:
    a. Identical-weight pieces that weigh 2 pounds or less must be 
sacked using the 10-piece minimum; those that weigh more must be sacked 
using the 20-pound minimum.
    b. For nonidentical-weight pieces, mailers must use either the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 10-piece 
or 20-pound minimum applies) or sack by the actual piece count or mail 
weight for each package destination, provided that documentation can be 
provided with the mailing that shows (specifically for each sack) the 
number of pieces and their total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the piece count, weight, or both.
4.2  Sack Preparation and Labeling
    Sacks must be prepared and labeled in the following sequence:
    a. 5-digit scheme: optional.
    (1) Line 1: use L606, Column B.
    (2) Line 2: ``PSVC MACH 5D SCHEME'' or ``PSVC MACH 5D SCH.''
    b. 5-digit: required.
    (1) Line 1: use 5-digit ZIP Code on parcels, preceded for military 
mail by correct prefix in M031.
    (2) Line 2: ``PSVC MACH 5D.''
    c. BMC: required.
    (1) Line 1: use L601, Column B.
    (2) Line 2: ``PSVC MACH BMC.''
    d. Mixed BMC: required; (no minimum).
    (1) Line 1: ``MXD'' followed by information in L601, Column B, for 
BMC serving 3-digit ZIP Code of entry post office.
    (2) Line 2: ``PSVC MACH WKG.''

M800  All Automation Mail

M810  Letter-Size Mail

1.0  BASIC STANDARDS
* * * * *
1.2  Mailings
    The requirements for mailings are as follows:
* * * * *
[Amend 1.2b and 1.2d to replace the automation basic rate with the new 
AADC and mixed AADC rates to read as follows:]

    b. First-Class. A single automation rate First-Class mailing may 
include pieces prepared at carrier route, 5-digit, 3-digit, AADC, and 
mixed AADC rates.
* * * * *
    d. Standard Mail. Automation carrier route pieces must be prepared 
as a separate mailing (and meet a separate minimum volume requirement) 
from pieces prepared at 5-digit, 3-digit, AADC, and mixed AADC rates.
1.3  Documentation
[Amend 1.3 to remove references to the basic rate to read as follows:]

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing. Each mailing 
also must be accompanied by presort and rate documentation produced by 
PAVE-certified (or, except for Periodicals, MAC-certified) software or 
by standardized documentation under P012. Exception: For mailings of 
fewer than 10,000 pieces, presort and rate documentation is not 
required if postage at the correct rate is affixed to each piece or if 
each piece is of identical weight and the pieces are separated by rate 
level when presented for acceptance. Mailers may use a single postage 
statement and a single documentation report for all rate levels in a 
single mailing. Standard Mail mailers may use a single postage 
statement and a single documentation report (with a separate summary 
for carrier route and a separate summary for all other rate levels) for 
both an automation carrier route mailing and a mailing containing 
pieces prepared at other automation rates when both mailings are 
submitted for entry at the same time. Combined mailings of more than 
one Periodicals publication also must be documented under M230. First-
Class Mail and Standard Mail mailings prepared under the value added 
refund procedures or as combined mailings must meet additional 
standardized documentation requirements under P014 and P960.
* * * * *
2.0  FIRST-CLASS MAIL AND STANDARD MAIL
* * * * *
2.3  Tray Line 2
[Amend the text of 2.3, 2.3b, and 2.3c, to change ``LTRS'' to ``LTR,'' 
``CAR-RT'' to ``CR-RT,'' and to add 5-D'' to the 5-digit carrier routes 
tray, to read as follows:]
    Line 2: ``FCM LTR'' or ``STD LTR'' and:
* * * * *
    b. 5-digit carrier routes: ``5D CR-RT BC.''
    c. 3-digit carrier routes: ``3D CR-RT BC.''
* * * * *

M820  Flat-Size Mail

[Amend the Summary to include Bound Printed Matter to read as follows:]
Summary
    M820 describes the preparation standards for flat-size automation 
rate First-Class Mail, Periodicals, Standard Mail, and Bound Printed 
Matter.
1.0  BASIC STANDARDS
1.1  Standards
[Amend the first sentence of 1.1 by adding Bound Printed Matter to read 
as follows:]
    Flat-size automation rate First-Class Mail, Periodicals, Standard 
Mail, and Bound Printed Matter must be prepared under M820 and the 
eligibility standards for the rate claimed. * * *

[[Page 4599]]

1.2  Mailings
[Amend 1.2 to replace the First-Class Mail automation basic rate with 
the new ADC and mixed ADC rates to read as follows:]
    All pieces in a mailing must meet the standards in C820 and must be 
sorted together to the finest extent required. First-Class Mail 
mailings may include pieces prepared at automation 5-digit, 3-digit, 
ADC, and mixed ADC rates. Periodicals mailings may include pieces 
prepared at automation 5-digit, 3-digit, and basic rates. Standard Mail 
mailings may include pieces prepared at automation 3/5 and basic rates. 
The definition of a mailing and permissible combinations are in M011. 
Bound Printed Matter mailings may include presorted pieces claiming the 
barcoded discount.
* * * * *
1.4  Marking
[Amend the last sentence of 1.4 by adding the reference P700 to read as 
follows:]
    * * * Pieces not claimed at an automation rate must not bear 
``AUTO'' unless single-piece rate postage is affixed or a corrective 
single-piece rate marking is applied under P100, P600, or P700.
* * * * *
[Add new 6.0 for Bound Printed Matter to read as follows:]
6.0  BOUND PRINTED MATTER
6.1  Package Preparation
    Packages must be prepared and labeled in the following sequence:
    a. 5-digit: (minimum 10-pieces or 10 pounds, fewer not permitted, 
maximum weight 20 pounds); red Label D or optional endorsement line 
(OEL).
    b. 3-digit: (minimum 10 pieces or 10 pounds, fewer not permitted, 
maximum weight 20 pounds); green Label 3 or OEL.
    c. ADC: (minimum 10 pieces or 10 pounds, fewer not permitted, 
maximum weight 20 pounds); pink Label A or OEL.
    d. Mixed ADC: (no minimum, maximum weight 20 pounds); tan Label MXD 
or OEL.
6.2  Sack Preparation and Labeling
    A sack must be prepared when the quantity of mail for a required 
presort destination reaches 20 addressed pieces. Preparation sequence 
and sack labeling:
    a. 5-digit: required.
    (1) Line 1: use 5-digit ZIP Code on packages.
    (2) Line 2: ``PSVC FLTS 5D BC.''
    b. 3-digit: required.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``PSVC FLTS 3D BC.''
    c. SCF: optional.
    (1) Line 1: use L005, Column B.
    (2) Line 2: ``PSVC FLTS SCF BC.''
    d. ADC: required.
    (1) Line 1: use L004.
    (2) Line 2: ``PSVC FLTS ADC BC.''
    e. Mixed ADC: required.
    (1) Line 1: use ``MXD'' followed by origin facility in L802 or 
L803, as appropriate.
    (2) Line 2: ``PSVC FLTS BC WKG.''
* * * * *

P  Postage and Payment Methods

P000  Basic Information

P010  General Standards

P011  Payment 1.0

Prepayment and Postage Due
* * * * *
[Amend title and text of 1.8 to read as follows:]
1.8   Shortpaid Nonmachinable Mail
    Shortpaid nonmachinable First-Class Mail is returned to the sender 
for additional postage.
* * * * *

P012  Documentation

* * * * *
2.0   STANDARDIZED DOCUMENTATION--FIRST-CLASS MAIL, PERIODICALS, AND 
STANDARD MAIL
* * * * *
2.3   Rate Level Column Headings
    The actual name of the rate level (or corresponding abbreviation) 
is used for column headings required by 2.2 and shown below:

[Amend 2.3a to add the AADC and mixed AADC rates for automation letters 
and the ADC and mixed ADC rates automation for flats (the entries are 
added after the 3/5 rate and before the basic rate) to read as 
follows:]

    a. Automation First-Class Mail, Periodicals, and Standard Mail:

------------------------------------------------------------------------
                    Rate                             Abbreviation
------------------------------------------------------------------------
 
                  *        *        *        *        *
AADC [First-Class Mail letters/cards and     AB
 Standard Mail letters].
ADC [First-Class Mail flats]...............  AB
Mixed AADC [First-Class Mail letters/cards   MB
 and StandardMail letters].
Mixed ADC [First-Class Mail flats].........  MB
[Amend the entry for basic as follows:]      BB
 Basic [flats].
 
                  *        *        *        *        *
------------------------------------------------------------------------

* * * * *
3.0   DETAILED ZONE LISTING FOR PERIODICALS
3.1 Definition and Retention
[Amend the first sentence of 3.1 by making minor edits and adding DADC 
rates to read as follows:]
    The publisher must be able to present documentation to support the 
actual number of copies of each edition of an issue, by entry point, 
mailed to each zone, at DDU, DSCF, DADC, and In-County rates. * * *
3.2   Characteristics
    Report the number of copies mailed to each 3-digit ZIP Code prefix 
at applicable zone rates using one of the following formats:
* * * * *
[Amend the first sentence of 3.2b by making minor edits and adding DADC 
to read as follows:]
    b. Report copies by zone (In-County DDU, In-County others, Outside-
County DDU, Outside-County DSCF, and Outside-County DADC) and by 3-
digit ZIP Code prefix, listed in ascending numeric order, for each 
zone. * * *
3.3   Zone Abbreviations
    Use the actual rate name or the authorized zone abbreviation in the 
listings in 2.0 and 3.2:

[Amend the table in 3.3 to include the zone abbreviation, ``ADC'' and 
rate equivalent, ``outside-county, DADC'' to read as follows:]

------------------------------------------------------------------------
         Zone  abbreviation                    Rate  equivalent
------------------------------------------------------------------------
 
                  *        *        *        *        *
SCF.................................  Outside-county, DSCF
ADC.................................  Outside-county, DADC
1-2 or 1/2..........................  Zones 1 and 2
 
                  *        *        *        *        *
------------------------------------------------------------------------

* * * * *

P013  Rate Application and Computation

* * * * *
2.0   RATE APPLICATION--EXPRESS MAIL, FIRST-CLASS MAIL, AND PRIORITY 
MAIL
* * * * *

[[Page 4600]]

2.4   Priority Mail
[Amend 2.4 by replacing ``5 pounds'' with ``1 pound'' to read as 
follows:]

    Except under 2.5, Priority Mail rates are charged per pound or 
fraction thereof; any fraction of a pound is considered a whole pound. 
For example, if a piece weighs 1.2 pounds, the weight (postage) 
increment is 2 pounds. The minimum postage amount per addressed piece 
is the 1-pound rate. The Priority Mail rate up to 1 pound is based 
solely on weight; for pieces weighing more than 1 pound, the rates are 
based on weight and zone.
2.5   Flat-Rate Envelope
[Amend 2.5 by changing ``2-pound'' to ``1-pound'' to read as follows:]
    Each addressed Express Mail flat-rate envelope is charged the 
Express Mail rate applicable to a \1/2\-pound piece regardless of its 
actual weight. Each addressed Priority Mail flat-rate envelope is 
charged the Priority Mail rate applicable to a 1-pound piece regardless 
of its actual weight.
2.6   Keys and Identification Devices
[Amend 2.6 by adding ``zone rate'' to the 2-pound weight to read as 
follows:]
    Keys and identification devices weighing 13 ounces or less are 
charged First-Class Mail rates per ounce or fraction thereof in 
accordance with 2.3, plus the fee in R100.10.0. Keys and identification 
devices weighing more than 13 ounces but not more than 1 pound are 
mailed at the 1-pound Priority Mail flat rate plus the fee in 
R100.10.0. Keys and identification devices weighing more than 1 pound 
but not more than 2 pounds are subject to the 2-pound zoned rate plus 
the fee in R100.10.0. When the ZIP Code of mailing cannot be determined 
from the return address or cancellation mark for pieces subject to the 
Priority Mail rates, the zone 4 rate is charged for the weight of the 
piece.
* * * * *
5.0   RATE APPLICATION--PACKAGE SERVICES
* * * * *
5.2   Parcel Post
[Amend 5.2 by changing ``2 pounds'' to ``1 pound'' in the last sentence 
to read as follows:]
    * * * The minimum postage rate per addressed piece is that for an 
addressed piece weighing 1 pound.
5.3   Single-Piece Bound Printed Matter
[Amend 5.3 by changing ``1.5 pounds'' to ``1 pound'' in the last 
sentence to read as follows:]
    * * * The minimum postage rate per addressed piece is that for an 
addressed piece weighing 1 pound.
* * * * *
8.0  COMPUTING POSTAGE--STANDARD MAIL
* * * * *
[Add new 8.5 citing how to calculate the discount for heavy automation 
letters to read as follows:]
8.5  Discount for Heavy Automation Letters
    Automation letters that weigh more than 3.3 ounces but not more 
than 3.5 ounces are charged postage equal to the automation piece/pound 
rate for that piece and receive a discount equal to the corresponding 
automation nonletter piece rate (3.3 ounces or less) minus the 
corresponding letter automation letter piece rate (3.3 ounces or less). 
For automation ECR pieces, postage is calculated using the regular 
basic piece/pound rate and the regular basic nonletter piece rate. If 
claiming a destination entry rate, the discount is circulated using the 
corresponding rates.

[Add new 8.6 citing how to calculate the discount for heavy automation-
compatible letters to read as follows:]
8.6  Discount for Heavy ECR Letters
    Pieces that otherwise qualify for the high density or saturation 
letter rate and weigh more than 3.3 ounces but not more than 3.5 ounces 
pay postage equal to the nonletter piece/pound rate and receive a 
discount equal to the corresponding nonletter piece rate (3.3 ounces or 
less) minus the corresponding letter piece rate (3.3 ounces or less). 
If claiming a destination entry rate, the discount is calculated using 
the corresponding rates.
* * * * *

P014  Refunds and Exchanges

* * * * *
5.0  EXPRESS MAIL POSTAGE REFUND
* * * * *
5.2  Conditions for Refund
[Revise 5.2 to read as follows:]
    A refund request must be made within 90 days after the date of 
mailing as shown in the ``Date In'' box on Label 11. Except as provided 
in D500.1.6, a mailer may file for a postage refund only under one of 
the following circumstances.
    a. The item was not delivered or made available for claim as 
guaranteed under the applicable service purchased.
    b. The item was not delivered or made available for claim by the 
guaranteed delivery time applicable to the service purchased, and 
delivery was not attempted by the guaranteed delivery time applicable 
to the service purchased.
5.3  Refunds Not Given
[Amend 5.3 to read as follows:]
    A refund claim will not be given if the guaranteed service was not 
provided due to any of the circumstances in D500.1.6.
* * * * *

P020  Postage Stamps and Stationery

P021  Stamped Stationery

* * * * *
3.0  OTHER STATIONERY
[Amend the title of 3.1 to by adding ``s'' to ``Card'' to read as 
follows:]
3.1  Stamped Cards
[Amend 3.1 by adding availability of stamped cards to read as 
follows:]Stamped cards are available as single stamped cards, double 
(reply) stamped cards, and in sheets of 40 for customer imprinting. 
Single and double stamped cards are 3\1/2\ inches high by 5\1/2\ inches 
long. Sheets must be cut to this size so that the stamp is in the upper 
right corner of each card. The USPS does not offer personalized stamped 
cards (cards imprinted with a return address).
* * * * *

P100  First-Class Mail

* * * * *
4.0  PRESORTED RATE
* * * * *
4.2  Affixed Postage
    Unless permitted by other standards or by Business Mailer Support 
(BMS), USPS headquarters, when precanceled postage or meter stamps are 
used, only one payment method may be used in a mailing and each piece 
must bear postage under one of these conditions:

* * * * *
[Amend 4.2b to change the ``nonstandard'' surcharge to the 
``nonmachinable'' surcharge to read as follows:]
    b. A precanceled stamp or the full postage at the lowest First-
Class first ounce rate applicable to the mailing job, and full postage 
on metered pieces for any additional ounce(s) or nonmachinable 
surcharge; postage documentation may be required by standard.
* * * * *

[[Page 4601]]

5.0  AUTOMATION RATES
* * * * *
5.2  Postage Affixed, Generally
    Unless permitted by other standards or by Business Mailer Support 
(BMS), USPS headquarters, when precanceled postage or meter stamps are 
used, only one payment method may be used in a mailing and each piece 
must bear postage under one of these conditions:

[Amend 5.2b to change the ``nonstandard'' surcharge to the 
``nonmachinable'' surcharge to read as follows:]
* * * * *
    b. Flat-size pieces must bear enough postage to include the 
nonmachinable surcharge if applicable.
* * * * *

P200  Periodicals

1.0  BASIC INFORMATION
* * * * *
1.5  Postage Statement and Documentation
[Amend the second sentence of 1.5 by adding ``DADC'' to read as 
follows:]
    * * * The postage statement must be supported by documentation as 
required by P012 and the rate claimed unless each piece in the mailing 
is of identical weight and the pieces are separated when presented for 
acceptance by rate, by zone (including separation by In-County and 
Outside-County rates), and by entry discount (i.e., DDU, DSCF, and 
DADC). * * *
* * * * *
[Redesignate 1.8 through 1.12 as 1.9 through 1.13, respectively. Add 
new 1.8 to read as follows:]
1.8  Waiving Nonadvertising Rates
    Instead of marking a copy of each issue to show the advertising and 
nonadvertising portions, the publisher may pay postage at the 
advertising zoned rates on both portions of all issues or editions of a 
Periodicals publication (except a requester publication). This option 
does not apply if the rate for advertising is lower than the rate for 
nonadvertising. When the amount of advertising exceeds 75%, the copies 
provided to the postmaster must be marked ``Advertising over 75%.'' 
When the amount of advertising is under 75%, the copies provided to the 
postmaster must be marked ``Advertising not over 75%'' on the first 
page. The entire weight of the copy must be entered on the postage 
statement in the column provided for the advertising portion. The words 
``Over 75%'' or ``Not over 75%'' (as applicable) must be entered on the 
postage statement. The word ``Waived'' must be written in the space 
provided for the weight of the nonadvertising portion on the postage 
statement.
* * * * *
2.0 MONTHLY POSTAGE STATEMENT
* * * * *
[Remove 2.4 and redesignate 2.5 as 2.4.]
* * * * *

P600  Standard Mail

* * * * *
2.0  PRESORTED AND ENHANCED CARRIER ROUTE RATES
2.1 Identical-Weight Pieces
[Amend 2.1 to include a reference to surcharges to read as follows:]
    Mailings of identical-weight pieces may have postage affixed to 
each piece at the exact rate for which the piece qualifies, or each 
piece in the mailing may have postage affixed at the lowest rate 
applicable to pieces in the mailing or mailing job. Alternatively, a 
nondenominated precanceled stamp may be affixed to every piece in the 
mailing or mailing job, or each piece may bear a permit imprint. If 
exact postage is not affixed, all additional postage and surcharges 
must be paid at the time of mailing with an advance deposit account or 
with a meter strip affixed to the required postage statement. If exact 
postage is not affixed, documentation meeting the standards in P012 
must be submitted to substantiate the additional postage unless the 
pieces are identical weight and separated by rate level at the time of 
mailing.
* * * * *

P900  Special Postage Payment Systems

P910  Manifest Mailing System (MMS)

* * * * *
3.0  KEYLINE
* * * * *

Exhibit 3.3a  Rate Category Abbreviations--First-Class Mail

[Amend Exhibit 3.3a by removing the entry for automation basic; adding 
entries for the new AADC, ADC, mixed AADC, and mixed ADC rates to read 
as follows:]

------------------------------------------------------------------------
                  Code                            Rate category
------------------------------------------------------------------------
AA.....................................  Automation AADC.
AD.....................................  Automation ADC.
AM.....................................  Automation Mixed AADC.
AZ.....................................  Automation Mixed ADC.
------------------------------------------------------------------------

Exhibit 3.3b  Rate Category Abbreviations--Standard Mail

[Amend Exhibit 3.3b by adding entries for the new AADC and mixed AADC 
rates to read as follows:]

------------------------------------------------------------------------
                  Code                            Rate category
------------------------------------------------------------------------
AA.....................................  Automation AADC.
AM.....................................  Automation Mixed AADC.
------------------------------------------------------------------------

* * * * *

P960  First-Class or Standard Mail Mailings With Different Payment 
Methods

* * * * *
3.0  PRODUCING THE COMBINED MAILING
3.1  Mailer Quality Control
    Before merging different pieces into a combined presorted mailing, 
the mailer must have quality control procedures to ensure that:
* * * * *
[Amend 3.1i to clarify which markings must appear on mailpieces to read 
as follows:]
    When markings are applied by an MLOCR, they properly show the 
applicable Identifier/Rate Code described in 3.2 that specifies the 
Product Month Designator, MASS/FASTforward system identifier, the 
method of postage payment, and the rate of postage affixed for metered 
and precanceled stamp mail or other postage information for permit 
imprint mail. These markings must be linked by the computer system to 
the rate entered by the mailer when the pieces are run through the 
MLOCR.

[Amend the title and contents of 3.2 to show how markings are applied 
to pieces in a combined mailing and to add new codes for First-Class 
Mail and Standard Mail to read as follows:]
3.2  Rate and Postage Marking
    The following markings must be applied to each piece in the mailing 
when markings are applied by an MLOCR. These seven character markings 
provide the automation rate marking information and additional 
information including the Product Month Designator, MASS/FASTforward 
(FF) System Identifier, Manufacturer Code, and Rate Marking 
information. The Product Month Designator is the first character 
position and represents the product month of the ZIP+4 file installed 
with the system's lookup engine responsible for the ZIP+4 assignment. 
Each product month is designated by a character ``A'' through ``L'' 
(with ``A'' meaning January, ``B''

[[Page 4602]]

meaning February, etc.). The MASS/FF System Identifier is characters 2 
through 4 and represents the certified system identifier responsible 
for the ZIP+4 assignment. There is a one-to-one relationship between 
the certified system serial number and the assigned identifier. The 
Manufacturer Code is the fifth character and is assigned at the 
manufacturer's discretion with one exception; the character ``Z'' is 
assigned when the mailpiece contains a delivery point barcode in the 
address block and the MLOCR does not perform a lookup but simply 
reproduces the address block barcode. The Rate Marking is represented 
in the last two characters according to the chart below. The applicable 
marking must appear on each mailpiece in one of the locations 
authorized under M012.
    a. First-Class Mail.

------------------------------------------------------------------------
                Rate marking
---------------------------------------------  Rate and postage category
       Letters                 Flats
------------------------------------------------------------------------
P1...................  F1...................  Barcoded 1-ounce Permit
                                               Imprint.
P2...................  F2...................  Barcoded 2-ounce Permit
                                               Imprint.
P3...................  F3...................  Barcoded 3-ounce Permit
                                               Imprint.
P4...................  F4...................  Barcoded 4-ounce Permit
                                               Imprint.
                       F5...................  Barcoded 5-ounce Permit
                                               Imprint.
                       F6...................  Barcoded 6-ounce Permit
                                               Imprint.
                       F7...................  Barcoded 7-ounce Permit
                                               Imprint.
                       F8...................  Barcoded 8-ounce Permit
                                               Imprint.
                       F9...................  Barcoded 9-ounce Permit
                                               Imprint.
                       F10..................  Barcoded 10-ounce Permit
                                               Imprint.
                       F11..................  Barcoded 11-ounce Permit
                                               Imprint.
                       F12..................  Barcoded 12-ounce Permit
                                               Imprint.
                       F13..................  Barcoded 13-ounce Permit
                                               Imprint.
M5...................  MF...................  Barcoded 5-Digit Meter
                                               Postage Affixed.
M3...................  MT...................  Barcoded 3-Digit Meter
                                               Postage Affixed.
MA...................  MD...................  Barcoded AADC Meter
                                               Postage Affixed.
MM...................  MX...................  Barcoded Mixed AADC Meter
                                               Postage Affixed.
MP...................  MP...................  Presorted Meter Postage
                                               Affixed.
S1...................  .....................  Precanceled $0.15 Stamp
                                               Affixed (card).
S1...................  .....................  Precanceled $0.23 Stamp
                                               Affixed.
S2...................  .....................  Precanceled $0.25 Stamp
                                               Affixed.
------------------------------------------------------------------------

    b. Standard Mail (letters only).

------------------------------------------------------------------------
           Rate marking                  Rate and postage category
------------------------------------------------------------------------
PI...............................  Barcoded Regular Permit Imprint.
NI...............................  Barcoded Nonprofit Permit Imprint.
M5...............................  Barcoded 5-Digit Meter Regular
                                    Postage Affixed.
N5...............................  Barcoded 5-Digit Meter Nonprofit
                                    Postage Affixed.
M3...............................  Barcoded 3-Digit Meter Regular
                                    Postage Affixed.
N3...............................  Barcoded 3-Digit Meter Nonprofit
                                    Postage Affixed.
MA...............................  Barcoded AADC Meter Regular Postage
                                    Affixed.
NA...............................  Barcoded AADC Meter Nonprofit Postage
                                    Affixed.
MM...............................  Barcoded Mixed AADC Meter Regular
                                    Postage Affixed.
NM...............................  Barcoded Mixed AADC Meter Nonprofit
                                    Postage Affixed.
M8...............................  Presorted 3/5 Meter Regular Postage
                                    Affixed.
N8...............................  Presorted 3/5 Meter Nonprofit Postage
                                    Affixed.
M9...............................  Presorted Basic Meter Regular Postage
                                    Affixed.
N9...............................  Presorted Basic Meter Nonprofit
                                    Postage Affixed.
SR...............................  Precanceled Regular Rate Stamp
                                    Affixed.
SN...............................  Precanceled Nonprofit Stamp Affixed.
------------------------------------------------------------------------

* * * * *

R  Rates and Fees

    The proposed rates and fees are printed at the end of this notice.
* * * * *

S  Special Services

S000  Miscellaneous Services

S010  Indemnity Claims

* * * * *
2.0  GENERAL FILING INSTRUCTIONS
* * * * *
2.12  Payable Express Mail Claims
[Amend 2.12a and 2.12a(4) by replacing $500 with $100. No other changes 
to text.]
* * * * *

S020  Money Orders and Other Services

1.0  ISSUING MONEY ORDERS
* * * * *
1.2  Purchase Restrictions
    A postal customer may buy multiple money orders at the same time, 
in the same or differing amounts, subject to these restrictions:

[Amend item 1.2a by increasing the maximum amount of a single money 
order from $700 to $1,000 to read as follows:]
    a. The maximum amount of any single money order is $1,000.
* * * * *

S500  Special Services for Express Mail

1.0  AVAILABLE SERVICES
* * * * *
1.5  Insurance and Indemnity
    Express Mail is insured against loss, damage, or rifling, subject 
to these standards:
* * * * *
[Amend 1.5c by changing ``$500'' to ``$100'' to read as follows:]
    c. Merchandise insurance coverage is provided against loss, damage, 
or rifling and is limited to a maximum liability of $100. (Additional 
insurance under 1.6 may be purchased up to a maximum coverage of $5,000 
for merchandise valued at more than $100.) Nonnegotiable documents are 
insured against loss, damage, or rifling, up to $100 per piece, subject 
to the maximum limit per occurrence as defined in S010.
* * * * *
1.6  Additional Insurance
[Amend the first sentence of 1.6 by replacing ``$500'' with ``$100'' to 
read as follows:]
    Additional insurance, up to a maximum coverage of $5,000, may be 
purchased for merchandise valued at more than $100 sent by Express 
Mail. * * *
* * * * *

S900  Special Postal Services

S910  Security and Accountability

S911  Registered Mail

1.0  BASIC INFORMATION
* * * * *
[Redesignate 1.5 as 1.6. Add new 1.5 to read as follows:]
1.5  Service Option
    Mailers can access delivery information on the Internet at 
www.usps.com by providing the article number of the registered 
mailpiece.
* * * * *

S912  Certified Mail

1.0  BASIC INFORMATION
* * * * *
[Redesignate 1.3 through 1.7 as 1.4 through 1.8, respectively, and add 
new 1.3 to read as follows:]
1.3  Service Option
    Mailers can access delivery information on the Internet at

[[Page 4603]]

www.usps.com by providing the article number of the certified 
mailpiece.
* * * * *

S915  Return Receipt

1.0  BASIC INFORMATION
* * * * *
[Redesignate 1.3 through 1.7 as 1.4 through 1.8, respectively, and add 
new 1.3 to read as follows:]
1.3  Service Option
    Electronic return receipts are available to mailers who provide an 
e-mail address at the point of purchase, or preregister on the Internet 
at www.usps.com. The delivery date, time, ZIP Code, and a digitized 
image of the recipient's signature are sent automatically to the sender 
by secure e-mail after delivery of the mail (available Fall 2002).
* * * * *
2.0  OBTAINING SERVICE
* * * * *
2.2  After Mailing
[Amend the first paragraph of 2.2 to read as follows:]
    The mailer may request a delivery record after mailing for Express 
Mail, certified mail, registered mail, COD mail, and mail insured for 
more than $50. When a delivery record is available, the USPS provides 
the mailer information from that record, including to whom the mail was 
delivered, the signature, and the date of delivery. The mailer requests 
a delivery record by completing Form 3811-A, paying the appropriate fee 
in R900, and submitting the request to the appropriate office as 
follows: * * *
* * * * *
[Delete 2.2b, redesignate item 2.2c as 2.2b, and revise to read as 
follows:]
    b. For all other items, send the form to any post office.

[Redesignate 2.3 as 2.4 and add new 2.3 to read as follows:]
2.3  Internet Purchase of Return Receipt After Mailing
    Return receipts after mailing will be available for purchase over 
the Internet at www.usps.com using a credit card. The mailer initiates 
the request and fills out the necessary information on the Internet. 
Once the request is made, delivery and signature information is sent to 
the mailer via fax or mail (available Fall 2002).
* * * * *

S918  Delivery Confirmation

1.0  BASIC INFORMATION
* * * * *
1.2  Eligible Matter
[Amend 1.2 by adding First-Class Mail parcels and limiting Package 
Services to parcels to read as follows:]
    Delivery Confirmation service is available for First-Class Mail 
parcels, Priority Mail items, Standard Mail pieces subject to the 
residual shape surcharge (electronic option only), and Package Services 
parcels (electronic option only). For the purposes of adding Delivery 
Confirmation service, a First-Class Mail or Package Services parcel 
must meet the definition in C100.5.0 or C700.1.0, as appropriate.
* * * * *

S919  Signature Confirmation

1.0  BASIC INFORMATION
* * * * *
1.2  Eligible Matter
[Amend 1.2 by adding First-Class Mail parcels and limiting Package 
Services to parcels to read as follows:]
    Signature Confirmation is available for First-Class Mail parcels, 
Priority Mail items, and Package Services parcels. For the purposes of 
adding Signature Confirmation service, a First-Class Mail or Package 
Services parcel must meet the definition in C100.5.0 or C700.1.0, as 
appropriate.
* * * * *
    The proposed rate and fees that would be printed as the R Module 
follow:

BILLING CODE 7710-12-P

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[FR Doc. 02-2177 Filed 1-29-02; 8:45 am]
BILLING CODE 7710-12-C