[Federal Register Volume 77, Number 201 (Wednesday, October 17, 2012)]
[Proposed Rules]
[Pages 63771-63781]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-25551]


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POSTAL SERVICE

39 CFR Part 111


Implementation of Full-Service Intelligent Mail Requirements for 
Automation Prices

AGENCY: Postal ServiceTM.

ACTION: Proposed rule.

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SUMMARY: The Postal Service is proposing to revise Mailing Standards of 
the United States Postal Service, Domestic Mail Manual (DMM[supreg]) 
throughout various sections to modify eligibility requirements for 
mailers to obtain automation prices for First-Class Mail[supreg], 
Standard Mail[supreg], Periodicals[supreg], and Bound Printed 
Matter[supreg] when mailing postcards, letters, and flats. Effective 
January 2014, use of ``full-service'' Intelligent Mail[supreg] would be 
required to obtain automation prices. Additionally, the 10/24 
transitional barcoded tray label format would be eliminated and mailers 
would be required to use the 24-digit Intelligent Mail barcode 
(IMbTM) format on tray, tub, and sack labels.

DATES: We must receive your comments on or before November 16, 2012.

ADDRESSES: Mail or deliver written comments to the Manager, Product 
Classification, U.S. Postal Service, 475 L'Enfant Plaza SW., Room 4446, 
Washington, DC 20260-5015. You may inspect and photocopy all written 
comments at USPS[supreg] Headquarters Library, 475 L'Enfant Plaza SW., 
11th Floor N., Washington, DC by appointment only between the hours of 
9 a.m. and 4 p.m., Monday through Friday by calling 1-202-268-2906 in 
advance. Comments and questions can also be emailed to 
mailingstandards@usps.gov using the subject line ``full-service January 
2014.''

FOR FURTHER INFORMATION CONTACT:
Ana Cikowski, email: ana.cikowski@usps.gov, phone: 202-268-8079.
Himesh Patel, email: himesh.a.patel@usps.gov, phone: 703-280-7498.
William Chatfield, email: william.a.chatfield@usps.gov, phone: 202-268-
7278.

SUPPLEMENTARY INFORMATION: On April 20, 2012, the Postal Service 
published an advance notice of proposed rulemaking in the Federal 
Register (77 FR 23643-23647) to require use of full-service Intelligent 
Mail to obtain automation prices for First-Class Mail (FCM), Standard 
Mail, Periodicals, and Bound Printed Matter (BPM) when mailing 
postcards, letters, and flats.

Background

    In January 2009, the Postal Service offered the mailing industry 
two Intelligent Mail options for automation discounts: basic-service 
and full-service. Currently, a large number of mailers are using these 
options and reaping significant benefits and value.
    When using the full-service option, mailers are required to: Apply 
unique Intelligent Mail barcodes (IMb) to identify each letter, 
postcard, and flat mailpiece; individually meet the eligibility 
requirements for automation prices according to class and shape; apply 
unique Intelligent Mail tray barcodes (IMtb) on trays, tubs, and sacks; 
apply unique Intelligent Mail container barcodes (IMcb) on placards for 
containers, such as pallets; schedule appointments through Facility 
Access and Shipment Tracking (FAST[supreg]) if their mail is accepted 
at an origin facility and entered at a downstream USPSTM 
processing facility; and use an approved electronic method to transmit 
to the Postal Service mailing documentation and postage statements. If 
the mailing is being prepared or presented on behalf of

[[Page 63772]]

another entity, the electronic documentation (eDoc) should include 
additional information to support the by/for mailing relationships. 
Effective January 2014, the requirements relative to the by/for 
relationships would be enforced.
    We recognize that this proposal would require significant changes 
for mailers who currently benefit from automation discounts. Therefore, 
the Postal Service is proposing to implement initiatives to limit the 
impact on customers who enter small volume mailings, particularly for 
those customers who mail infrequently and have limited resources to 
adopt new mailing practices. Additional tools would be available for 
these mailers, and the associated, simplified requirements are 
described further in this notice.
    Our proposal would continue the ongoing transformation of data 
visibility and evolution of technological innovations. Full-service 
Intelligent Mail combines the use of unique scan codes with the 
provision of electronic information regarding the makeup and 
preparation of mail, which provides high-value services and enables 
efficient mail processing.
    The strategic vision of the Postal Service is to create 100 percent 
visibility in the mail stream by 2014. This vision would provide 
mailers with near real-time data that specify the location of 
mailpieces within the postal mail stream and the time of delivery for 
full-service mailpieces.
    Full-service Intelligent Mail would offer numerous advantages to 
mailers and the Postal Service.

Advantages for Mailers:

     Mailers would be provided with comprehensive information 
on the status of mailings as they progress through the postal mail.
     Visibility would enable mailers to respond more 
effectively to customer inquiries on the status of valuable bills, 
statements, catalogs, and publications.
     Mailers would have access to free address correction and 
tracking information of mailpieces from mail entry to destination.
     The mailer's annual mailing fee for permits would be 
waived when postage statements contain 90 percent or more of full-
service mailpieces.
     Mailers would be allowed to use the ``Mail Anywhere'' 
model, which allows the use of a single permit at any 
PostalOne![supreg] site for mailings containing 90 percent or more of 
full-service mailpieces (applies to FCM, Standard Mail, Periodicals, 
and BPM).
     Mailers would be able to more effectively plan operations, 
assess the success of advertising campaigns, and improve customer 
interaction.

Advantages for the Postal Service

     Visibility into the flow of mail through the postal mail 
stream would enable enhanced diagnostics of service performance.
     Scan data on containers, trays, and mailpieces would allow 
the Postal Service to measure the number of hours and minutes between 
operations.
     Scan data would allow the Postal Service to identify 
operational bottlenecks and continue to improve service for commercial 
FCM, Standard Mail, and Periodicals.
     The ability to provide real-time alerts to postal 
operations would enable them to respond to and avoid potential service 
failures.
     Advance notification of volumes and makeup of commercial 
mail would enable improved resource planning.
     Accurate tracking of mail volumes as they move through the 
postal network would enable improved management and staffing of 
operations.
     Simplified mail acceptance processes would increase 
productivity and reduce costs.
     The ability to measure service performance would be 
available for each full-service mailer.
    The mailer's use of full-service Intelligent Mail is an integral 
part of the Postal Service's ongoing strategy to provide cost-effective 
and service-responsive mailing services. Efficient use of postal 
resources can be achieved with advance information on content and 
makeup of the mail. As mail is processed and sorted, postal sorting 
equipment captures volume and destination information. The Postal 
Service has built and is refining systems that make information 
available to downstream postal facilities for use with operational 
planning. The planning data that is enabled through full-service 
mailings provides significant opportunities for improvements in 
efficiency and service performance. However, when a measurable 
percentage of mail (that is prepared and entered by large-volume 
commercial mailers and mail preparers) does not provide similar 
information, these benefits cannot be fully captured.
    Full-service Intelligent Mail would also enable simplification of 
the current mail acceptance procedures. With the availability of full-
service mailing data and unique identifiers, the business mail 
acceptance procedures would be streamlined by use of an automated 
verification process whereby allowing data to be captured on mail 
processing and other scanning equipment.
    Since the introduction of the full-service Intelligent Mail 
requirements, over four years ago, the Postal Service has worked 
closely with mailers, software providers, and mail service providers to 
simplify, refine, and evolve full-service offerings. Thousands of 
mailers, software providers, and mail service providers have 
demonstrated the ability to meet the requirements for full-service 
Intelligent Mail.
    Based on feedback provided by users of full-service Intelligent 
Mail, the use of full-service would transform the mailing industry. 
Unambiguous data would drive improvements across the broad spectrum of 
mailer and postal processes. Mailers who embrace full-service would 
thrive from continued use of full-service Intelligent Mail.

Transitioning to Full-Service Intelligent Mail

    The Postal Service continues to develop enhancements, simplify 
existing tools, streamline the processes for mailers to prepare 
mailings, and provide ease of use for small and large mailers to 
transition to full-service Intelligent Mail. The Postal Service also 
recognizes that there maybe costs for mailers associated with 
converting to full-service Intelligent Mail.
    In support of the proposal to transition to full-service 
Intelligent Mail and the elimination of automation discounts with the 
use of POSTNETTM barcodes, the Postal Service proposes to 
offer the following self-service tools, process enhancements, on-
boarding simplifications, and postage incentives:
     Automated Business Reply Mail Tool--The USPS Automated 
Business Reply Mail[supreg] (ABRM) application is an online, self-
service tool that allows Reply Mail customers to create domestic card-, 
letter-, and flat-size pieces of Business Reply Mail[supreg] 
(BRMTM), Courtesy Reply MailTM 
(CRMTM), and Metered Reply MailTM (MRM). ABRM 
also creates artwork for card- and letter-size pieces of Qualified 
Business Reply MailTM (QBRM). In addition, ABRM provides the 
option to create a FIM & Barcode only for CRM and BRM artwork. The ABRM 
tool offers a number of features for Reply Mail customers, including 
the ability to: Design and create approved USPS camera-ready artwork 
with an Intelligent Mail barcode (IMb); place the barcode above the 
address block or in the barcode clear zone; add an image or logo 
related to the mailpiece; allow a third-party vendor or mail service 
provider to create artwork for clients through the ABRM tool; download

[[Page 63773]]

artwork designs in PDF and EPS formats; and store mailpieces and logos 
in the ABRM library for future use (up to 100MB).
     Intelligent Mail Small Business Tool--Intelligent Mail for 
Small Business Mailers (IMsb) is an online, self-service tool which 
allows a mailer to produce a unique IMb. This online tool is accessible 
through the Business Customer Gateway. It is intended for small volume 
mailers who enter mailings consisting of 5,000 pieces or fewer pieces 
with an annual maximum threshold of 125,000 pieces. The tool may be 
used for FCM and Standard Mail letter or flat mailings. The tool allows 
the mailer to upload an address file which is then processed for 
Delivery Point Validation. Standardized addresses with Intelligent Mail 
barcodes are returned in a .pdf format, which may be printed directly 
on an envelope or label by the mailer. Mailers are able to print unique 
tray labels. Mailers using the tool may qualify for the full-service 
Mixed Automated Area Distribution Center (MXD AADC) and Mixed Area 
Distribution Center (MXD ADC) automation prices. Postage statements are 
submitted electronically through Postage Wizard[supreg].
     Simplified On-Boarding Process--To provide ease of use for 
full-service mailers, the Postal Service proposes to enhance the 
Business Customer Gateway (BCG). These enhancements include the 
following: Streamlined sign-up process; simplified steps to request a 
service; automatic assignment of Mailer IDs (MIDs); redesigned user 
interface, resulting in easier navigation, consolidation of screens, 
and contextual help screens; simplification of the Business Service 
Administration (BSA) functionality; and restructured validation and 
linkage of mailing permits. In addition, the enhancement would allow 
for identification of mail service providers as well as the ability to 
request MIDs and services on behalf of customers. In the case of small 
business users (one user/one account), account creation would be 
streamlined by automatically assigning MIDs and multiple services at 
the same time. When these proposed simplifications and enhancements are 
finalized, detailed information will be communicated to the mailing 
industry. Other enhancements to the on-boarding process would include 
the following:

--The Mail.dat[supreg] and Mail.XMLTM error messages from 
the uploading of eDoc would be standardized to provide explanations of 
irregularities more clearly and allow mailers to take corrective 
action. This enhancement is underway and scheduled for a release.
--The PostalOne! dashboard is being enhanced by adding a functionality 
that would allow mailer-initiated job cancellations, resulting in the 
mailer's ability to cancel a job if none of the statements in the job 
have been finalized or checked in by a postal acceptance clerk. Also, 
if there is more than one statement in a job, all of the statements 
associated with the job would be cancelled through this user interface.
     Test Environment for Mailers--The Postal Service would 
develop a Test Environment for Mailers (TEM) certification process for 
software vendors and simplify the on-boarding process for mailers using 
certified software. Vendors would have the option to go through the TEM 
process by indicating which mailing capabilities are supported by their 
software, then completing test scenarios to demonstrate their 
software's functionality when generating and submitting eDoc files that 
vary by mail preparation requirements. These capabilities would be 
tracked by the Postal Service and made available through a published 
list consisting of authorized software for mailers. Potential software 
users could reference the list to evaluate if the listed software meets 
their mailing needs. Mailers would only be required to submit a single 
file to TEM when using software that meets the following criteria: The 
software is authorized for eDoc and full-service when passed through 
the TEM process for vendors for the capabilities that the vendor 
supports in production. Mailers using authorized software would submit 
a single file to TEM to demonstrate that they are able to use the 
software to generate accurate eDoc.
     Full-Service Technology Credit--In order to encourage 
mailers to convert to full-service Intelligent Mail, the Postal Service 
is proposing to offer a ``Full-Service Technology Credit'' (tech 
credit). This credit is intended to help offset the investment required 
to implement the necessary hardware and software infrastructure changes 
to support full-service mailings.

Eligibility Criteria

    The mail volume of all ``Permit Holders'' and ``Mailing Agents'', 
as identified on a postage statement, would be evaluated across 
qualifying permits for each business location/Customer Registration ID 
(CRID). Each CRID that exceeds an annual volume of 125,000 qualifying 
pieces would be eligible to redeem a tech credit. All CRIDs would be 
considered for a tech credit regardless of current full-service status.
    To determine the level of qualifying mail volume for each business 
location/CRID, the following steps would be taken:
     Mail volume associated with each permit as defined in the 
``Permit Holder'' and/or ``Mailing Agent'' fields would be evaluated. 
Permit types would include:
     Permit Imprint
     Metered
     OMAS Imprint
     OMAS Metered
     Precancelled Stamp
     Periodicals
     Ghost.
     The following full-service eligible mailings would be 
considered as qualifying mail volume:
     FCM automation letters, cards, and flats.
     Standard Mail automation letters and flats--includes IMb 
Enhanced Carrier Route (ECR), except saturation flats.
     Periodicals automation/barcoded letters and flats--
includes ECR letters & flats.
     BPM barcoded flats.
     The mail volume for a one-year period would be used in the 
evaluation.
     To be considered for the tech credit, permits must have 
been opened and business locations (CRIDs) established.
     When determining a mailer's qualifying volume, the Postal 
Service will consider the ``Permit Holder'' and ``Mailing Agent'' 
volume for each CRID and use the higher of the two volumes to determine 
the amount of the tech credit.
    [ssquf] The mail volume of the ``Permit Holder'' for each permit 
associated with a CRID would be aggregated.
    [ssquf] The mail volume of the ``Mailing Agent'' for each permit 
associated with a CRID would be aggregated.
     Each CRID that exceeds 125,000 full-service eligible 
pieces in annual mail volume (total of all eligible volume from all 
eligible permits) would be awarded one tech credit as follows:
     125,001-500,000 pieces = $2,000 postage credit.
     500,001-2,000,000 pieces = $3,000 postage credit.
     2,000,001 + pieces = $5,000 postage credit.
     Each business location would be eligible to redeem only 
one tech credit.
    [ssquf] In the event there are multiple CRIDs identifying the same 
business location which have linked permits, the CRID with the highest 
eligible volume would receive the tech credit.

[[Page 63774]]

Notification Process

    The Postal Service would provide advance notification to the 
industry regarding tech credit program status. This messaging would 
occur prior to the beginning of the promotion.

Redemption Process

    The following credit redemption guidelines would be used:
     Any permit linked to a qualified CRID may redeem the tech 
credit as a postage credit in mailings that contain 90% or more full-
service pieces.
     To apply this postage credit, the permit must be the 
paying permit in the mailing (identified as Permit Holder).
     The following permit types may be used:
    [cir] Permit Imprint.
    [cir] Additional Postage (ADDPOS).
    [cir] OMAS Imprint.
    [cir] OMAS Metered.
    [cir] Metered.
    [cir] Precancelled Stamp.
    [cir] Periodicals.
     Mailers may redeem the tech credit through eDoc submission 
via Mail.dat or Mail.XML. Postal Wizard submissions would not be 
eligible.
     Upon submission of an eligible mailing, the tech credit 
would be automatically applied in full.
    [ssquf] A partial tech credit amount could be applied to statements 
if the tech credit amount is greater than the total postage for the 
postage statement.
    [ssquf] The remaining tech credit amount would be applied to 
subsequent statement(s).
     The tech credit redemption timeframe is proposed to run 
for a one-year period.
    When final, further details regarding the ``Full-Service Technology 
Credit'' will be available on RIBBSTM at https://ribbs.usps.gov.

Summary of Comments and USPS Responses

    The Postal Service received 110 comments from a variety of mailers 
and mailer associations. The comments that were received in addition to 
feedback from the Mailers Technical Advisory Council (MTAC), Postal 
Customer Council (PCC), and other outreach efforts, allowed the Postal 
Service to develop initiatives that should enable mailers to 
efficiently transition to full-service Intelligent Mail.
    From the comments that were received, some mailers and mailer 
associations indicated that they look forward to embracing ``full-
service'' Intelligent Mail, while others expressed concerns that were 
attributed to the five categories listed below:

1. Acceptance of Full-Service Intelligent Mail

    Comments:
    [ssquf] I think that full-service should be mandatory for the 
mailers.
    [ssquf] Full-service Intelligent Mail is a streamlined benefit to 
mailers and adds a cost-savings to customers.
    [ssquf] Shops that do not want to invest and upgrade to full-
service Intelligent Mail probably should not be entering mail anyway.
    [ssquf] As long as CONFIRM[supreg] tracking is provided, we are in 
acceptance of full-service Intelligent Mail.
    [ssquf] I certainly hope that the effective date is fixed and that 
the Postal Service doesn't plan to change the date several times. Yes, 
there is a lot involved in moving to full-service; however, the Postal 
Service has provided advanced notice and ample time to the industry. 
Many mailers have already begun preparing for full-service.
    [ssquf] We will be ready well in advance of January 2014.
    [ssquf] As a requirement for automation discounts, I fully support 
the move to full-service Intelligent Mail. We have been successfully 
using full-service.
    [ssquf] Our company chose to use a third-party vendor and have 
experienced ease with implementing full-service Intelligent Mail.
    [ssquf] Our company is ready for full-service Intelligent Mail.
    Postal Service Responses:
    [ssquf] The Postal Service appreciates the positive feedback and is 
fully aware of the outstanding contributions rendered by the current 
users of full-service Intelligent Mail. These mailers have contributed 
to the collective knowledge-base and continue to receive numerous 
benefits from participating in the full-service offering. Mailers using 
full-service often espouse the significant value of additional data to 
drive change in their marketing strategies and have established 
additional avenues to acquire new customers. Due to the vital feedback 
provided by full-service participants, the Postal Service has a greater 
understanding of the needs of mailers and is working to simplify full-
service requirements, which would potentially offer mailers a more 
user-friendly experience.

2. Cost/ROI

    Comments:
    [ssquf] The use of vendors to meet the full-service requirement is 
too costly.
    [ssquf] Costs to convert to full-service would add up quickly.
    [ssquf] It would take years to recoup the return on my investment.
    [ssquf] In Postal Service industry, loans are hard to acquire.
    [ssquf] The requirement for full-service would cause the loss of my 
job.
    [ssquf] This new requirement for full-service would bankrupt my 
business.
    [ssquf] Full-service is advantageous for USPS but does not benefit 
the mailer.
    Postal Service Responses:
    [ssquf] The Postal Service is continuing to research methods to 
simplify, streamline, and provide ease of use for small and large 
mailers to transition to full-service Intelligent Mail. The industry 
has been very responsive in providing feedback to help drive various 
strategies that ultimately will achieve full transition to the use of 
full-service.
    [ssquf] Two primary areas of focus for the Postal Service are as 
follows:

--Continuing to build a strong visibility platform.
--Acquiring new users of full-service Intelligent Mail through the use 
of the newly proposed ``Full-Service Technology Credit.''

    [ssquf] The Postal Service believes that full-service offers 
features that would increase the value of the mail by providing mailers 
with more current and ``clean'' addresses, gives mailers access to 
information about mailings that would enhance marketing strategies, 
eliminate unnecessary paperwork, and assist mailers with developing 
better tools to acquire new revenue sources. Full-service diagnostic 
reports would provide mailers with visibility into the mail stream and 
convey pertinent information, such as the number of pieces delivered, 
forwarded, and or handled as undeliverable as addressed (UAA).
    [ssquf] Another area of focus for USPS is simplification. In 
response to industry feedback, USPS is proposing simplification of 
full-service processes, which could result in lower costs for mailers 
when complying with full-service requirements. As described with this 
proposed rule, when entering full-service mailings, the Postal Service 
would support capabilities through advanced, thorough communications 
and provide simplified on-boarding processes.
    [ssquf] A new address correction service (ACS) alternative process, 
full-service ACSTM fulfillment, would be in place to allow 
mailers to receive records immediately and the billing of non-
qualifying records as they are identified. This fulfillment would 
provide the records in the OneCode ACS[reg] format via the Electronic 
Product Fulfillment (EPF) server.
    [ssquf] With simplification of full-service Intelligent Mail, 
mailers would experience many benefits as indicated in the USPS 
responses below.

[[Page 63775]]

[ssquf] The Postal Service strongly disagrees that the investment of 
full-service is not worth the benefits gained.

3. Complexity

Comments:
[ssquf] Provide me with the tools to effectively comply with this 
requirement.
[ssquf] I want to do it myself without the additional costs of a 
vendor.
[ssquf] Simplify the process.
[ssquf] Make it easy for mailers to transition.
[ssquf] Do not force me to use a vendor.
[ssquf] Do not phase out the price eligibility for basic-service 
Intelligent Mail.
[ssquf] Basic service is sufficient for my company; give mailers an 
option.
[ssquf] I'm finding it very difficult to receive passing grades on my 
full-service tray labels and pallet placards for Periodicals.
Postal Service Responses:
[ssquf] The Postal Service has taken all suggestions from the mailing 
industry under consideration regarding basic-service for Intelligent 
Mail and used these suggestions to simplify the full-service offering.
[ssquf] The Postal Service is streamlining and simplifying the full-
service process for mailers.
[ssquf] Mailers who enter fewer than 10,000 pieces per mailing would be 
able to use simplified documentation and mail preparation requirements 
to qualify for full-service Intelligent Mail.
[ssquf] An IMsb tool was developed and would provide a simplified 
method for mailers to obtain a unique IMb for mail pieces and help 
mailers to meet the eDoc requirements for simple mailings.
[ssquf] The Postal Service would continue to provide IMtb for mailers 
who currently obtain tray labels from the Postal Service Label Print 
Center (LPC) in Topeka, Kansas.
[ssquf] Alternative methods of associating mailpieces into handling 
units and handling units into containers would be implemented. The 
Postal Service plans to extend and expand the use of logical trays/
containers for all mailings when mailers provide at least one sibling 
physical record (tray/container) for each logical tray/container; 
mailpieces can be associated to the logical tray.
[ssquf] Information about visibility, start-the-clock, and mail data 
quality errors would be provided to the mail preparer or mail owner as 
identified in eDoc.
[ssquf] The complexity for mail service providers who work with 
multiple small mail owners would be reduced, because they would not 
have to track volume and the assigned IMb for each mail owner when the 
volume is below a specific threshold.
    [ssquf] The on-boarding and submission processes for mailers would 
be simplified.
    [ssquf] The risk of error from incorrect data would be mitigated by 
verifying information for MIDs and CRIDs prior to eDoc submission.
    [ssquf] The Mail.dat and Mail.XML error messages from the uploading 
of eDoc would be standardized to provide explanations of irregularities 
more clearly, which would allow mailers to better understand the 
specific errors encountered and take corrective action.
    [ssquf] The process for mailers to initiate job cancellations 
through the PostalOne! dashboard would be improved.
    [ssquf] The Testing Environment for Mailers would be simplified.
    [ssquf] Effective September 2012, USPS provided new options for the 
preparation of pallets, trays, and sacks of FCM and Standard Mail 
allowing mailers to: Place trays or sacks of residual single-piece FCM 
letters and flats on the origin sectional center facility (SCF) pallet; 
place trays or sacks of Standard Mail letters and flats paid at single-
piece FCM prices on the mixed network distribution center (NDC) pallet; 
and combine FCM or Standard Mail with different payment methods in a 
single mailing and place trays of single-piece letters or flats on a 
specified pallet after USPS verification is completed. Additionally, 
the Postal Service is adding human-readable text to content identifier 
number (CIN) codes to accommodate use with single-piece mailpieces.
    [ssquf] All pertinent USPS documents would be revised to clarify 
when container placards are required.
    [ssquf] Containers with placards would not be required when 
mailings consist of the following:

--A small volume mailing of FCM, Standard Mail, Periodicals, and BPM 
entered directly at the dock of a USPS processing facility or 
Destination Delivery Unit (DDU), as follows: Less than 72 linear feet--
6 full layers of letter trays; 24 linear feet--3 full layers of tubs; 
or 500 pounds of bundles or sacks.
--A small volume mailing of Standard Mail, Periodicals, and BPM entered 
at a BMEU, as follows: Less than 72 linear feet--6 full layers of 
letter trays; 24 linear feet--3 full layers of tubs; or 500 pounds of 
bundles or sacks.
--A FCM mailing entered at a BMEU not prepared under a Customer 
Supplier Agreement (CSA).
--Mail that is not presented in a container with an IMcb and is entered 
at a facility other than a BMEU may not receive a Start-the-Clock scan 
and would be excluded from service measurement.

4. Clarity and Awareness

    Comments:
    [ssquf] January 2014 is too soon to negotiate budget allowances.
    [ssquf] PostalOne! is not ready to handle all full-service 
mailings.
    [ssquf] The Postal Service is not leading the way.
    [ssquf] The tools for reports and tracking capabilities must be 
improved quickly.
    Postal Service Responses:
    [ssquf] As described earlier in this proposed rule, plans are 
underway to enhance the BCG by providing a more user-friendly 
experience.
    [ssquf] Mailers entering simple mailings of fewer than 10,000 
mailpieces would not be required to provide information on mailpieces 
that are nested in trays and containers. Additionally, mailers would be 
allowed to use the same unique piece sequence ID on all mailpieces 
within a mailing.
    [ssquf] Additionally, the Postal Service plans to use an IMb on all 
mailings and internal operational printing.
    [ssquf] The Postal Service is investing in short- and long-term 
enhancements to its PostalOne! infrastructure and conducting ongoing 
focus groups and workshops to glean suggestions from the mailing 
industry on future improvement opportunities.

5. General Comments

    Comments:
    [ssquf] If automation and full-service Intelligent Mail barcodes 
are required, it is essential that USPS communicates to the industry 
its plans around consequences for mail quality errors.
    [ssquf] As specified with MERLIN, would the existing automation 
error thresholds and policies still apply for full-service mailings?
    [ssquf] What price consequences would be assessed for mailings that 
do not meet full-service qualifications?
    [ssquf] How would full-service failures be assessed and monitored?
    [ssquf] Where would the determination of full-service compliance be 
made--at induction or further downstream?
    [ssquf] Would mail service providers be permitted to rework mail 
that is not deemed in compliance with full-service requirements?
    Postal Service Responses:
    [ssquf] Concerning mail quality errors, the Postal Service would 
allow adequate time for mailers to review and become familiar with mail 
data quality reporting and take corrective action.
    [ssquf] We are working with the mailing industry to define and 
develop a

[[Page 63776]]

seamless acceptance process that would leverage the data which is 
provided through full-service and eDoc.
    [ssquf] The Postal Service endeavors to streamline the acceptance 
and verification process.
    [ssquf] Until the Postal Service fully embraces a seamless 
environment, existing thresholds and policies would be maintained. Any 
changes to those thresholds would be defined collaboratively with the 
industry to mutually establish and refine policies.
    [ssquf] The Postal Service would continue to work with the industry 
to develop procedures and expect that monitoring would be provided 
through MicroStrategy reports designed specifically to provide mailers 
and the Postal Service with the necessary data to understand mail 
quality issues.
    [ssquf] The seamless concept would allow verification to be 
performed at points of induction through data captured from handheld 
scanners and mail processing equipment.
    [ssquf] Concerning the mailer's ability to rework mail, under 
seamless acceptance, data captured at induction and from mail 
processing equipment would be validated against eDoc and reported 
through seamless acceptance reporting.
    Comment:
    [ssquf] To handle post list processing, this transition would cost 
mail houses additional funds in software upgrades. Currently, the mail 
house is able to change the postage statements after the job is 
produced (such as tray or sack counts) if what was used is different 
than what the qualification report requires. However, when full-service 
is implemented, unless mailers have post-processing software, we would 
not be able to change the Mail.dat file after the mail has been 
prepared. The Post Office should provide this post-processing 
capability.
    Postal Service Response:
    [ssquf] The Postal Service is aware of the mailer's need to modify 
files after submission, and we have been working with industry 
representatives to identify options to make this available. A new 
functionality would be deployed to allow the mailer to delete a non-
finalized job from the PostalOne! dashboard and resubmit the file 
without having to rename the file.
    Comment:
    [ssquf] The switch to full-service is an onerous task that requires 
mailer service providers to submit a large amount of additional data. 
Also, it requires each of my customers to have their own CRID. Today, 
my customers come to me specifically, because they do not want to have 
to deal with the Post Office and all of the requirements that are in 
place to prepare a proper mailing. If mail owners are required to get 
involved with the process of applying for ID numbers and accounts with 
the Post Office, then you are reducing the value of the mail houses, 
which are your most valuable partners.
    Postal Service Response:
    [ssquf] The Postal Service has several options for acquisition of 
CRIDS/MIDs in bulk by a mail service provider using an automated XML 
process or manual Excel-based request. Our RIBBS Web page has documents 
to assist in determining which option would be more suitable. A link to 
the page is provided below. Additionally, the Postal Service continues 
to explore options to simplify the use of full-service Intelligent Mail 
and evaluate the concerns of mailers. Visit our RIBBS Web page at 
https://ribbs.usps.gov/index.cfm?page=intellmailmailidapp.
    Comment:
    [ssquf] The full-service Intelligent Mail TEM is a long, time-
consuming process. I am significantly concerned about the effort and 
time commitment to transition to full-service, while still running my 
business.
    Postal Service Response:
    [ssquf] The Postal Service has recently taken action to simplify 
the testing requirements for individual mailers. A process was 
developed to certify a vendor's software based on specific capabilities 
for which the software vendor has applied. The vision is for individual 
mailers/users of the certified software to collapse multiple 
submissions into a single submission to access the testing environment. 
Examination of the actual data submitted for the initial physical 
mailings would return feedback to the mailer on the verifications 
performed.

Requirements for Full-Service Intelligent Mail

Intelligent Mail Barcodes

     Mailpiece barcode. The IMb on letter and flat mailpieces 
encodes up to 31-digits of mailpiece data into 65 vertical bars. The 
IMb contains additional fields that encode ancillary services, identify 
the mailer and the class of mail, and allow unique numbering/
serialization of the mailpiece. The Postal Service would issue a unique 
MID to each mailer using full-service Intelligent Mail, and the USPS-
assigned MID must be included in the IMb. Except with simple mailings 
as described above in this notice, mailers are required to uniquely 
number each mailpiece in a mailing and not reuse any of the numbers for 
a period of 45 days from the date of mailing.
     Tray barcode. An IMtb is required on letter trays, flat 
trays and sacks. Unlike the 10-digit tray barcode containing only 
routing information that is used currently, the 24-digit IMtb includes 
additional fields to identify the mailer and uniquely number each tray, 
tub, or sack. The mailer's USPS-assigned MID must be included in the 
IMtb. Mailers are required to uniquely number each tray or sack in a 
mailing and not reuse any of the numbers for a period of 45 days from 
the date of mailing. Pieces inside each tray must be electronically 
linked or nested to the IMtb.
     Container barcode. An IMcb is required on all containers 
used to transport and enter mail at postal processing centers, such as 
pallets, all purpose containers (APCs), rolling stock, and gaylords, 
except certain small volume and FCM mailings. This 21-digit IMcb 
includes fields to identify the mailer and uniquely number each 
container. Mailers must include their USPS-assigned MID in the IMcb. 
Mailers are required to uniquely number each container in a mailing and 
not reuse any of the numbers for a period of 45 days from the date of 
mailing. Trays inside the container must be electronically linked or 
nested to the IMcb. When automation mailings are not required to be 
containerized (too small to require a pallet or rolling stock), an IMcb 
would not be required on placards nor would submission of IMcb records 
be required in eDoc.

Intelligent Mail Tray Barcodes

    Starting in January 2014, when mailings are entered and full-
service automation prices are claimed, the use of tray labels bearing 
24-digit IMtb would be required. An IMtb contains the following 
information:
     ZIP Code\TM:\ A 5-digit ZIP Code used to identify the 
destination of the tray or sack.
     Content Identifier Number (CIN): Describes tray or sack 
content, including presort level and class.
     Content Label Source (L SRC): Designates whether tray, 
tub, or sack contents are automation compatible.
     Mailer ID: A 6- or 9-digit MID assigned by the Postal 
Service for use in the Intelligent Mail barcodes.
     Serial Number: A mailer would use this field to uniquely 
identify individual trays, tubs, or sacks. If a 6-digit MID is 
assigned, the mailer would have 8 digits to uniquely identify the 
handling units. If a 9-digit MID is assigned, the mailer would have 5 
digits to identify the handling units. To participate in the

[[Page 63777]]

full-service option, the Serial Number field is populated with a unique 
number for each handling unit (tray or sack) in the mailing. For 45 
days from the date of mailing, these serial numbers must remain unique.
     Label Type: Indicates MID field length.
    To access automation prices through the full-service option, 
mailers would be required to populate all fields in the IMtb and 
include a unique serial number.
    To view the final specifications and detailed information on the 
IMtb, access RIBBS at http://ribbs.usps.gov/.

Intelligent Mail Container Barcodes

    Mailers typically label containers of mail deposited with the 
Postal Service. For full-service, mailers must apply a unique IMcb to 
container placards and keep the barcode unique for at least 45 days 
from the date of mailing. This IMcb includes fields to identify the 
mailer and uniquely identify each container. To comply with the full-
service standards, mailers must apply placards to all containers such 
as pallets, APCs, rolling stock, and gaylords.
    The IMcb has two formats. The format a mailer uses depends upon the 
MID assigned by the Postal Service.
    The IMcb label specifications are available in two physical sizes 
for the IMcb barcode labels: One is the 8'' min x 11'' format available 
on RIBBS, and the other size is the 4''x7'' self adhesive format, also 
available on RIBBS.
     Application ID (Appl ID): ``99'' indicates the source of 
the barcode.
     Type Indicator: ``M'' indicates a mailer-generated 
barcode.
     Mailer ID: A 6- or 9-digit MID assigned by the Postal 
Service for use in the IMb.
     Serial Number: A mailer would use this field to uniquely 
identify individual containers. If a 6-digit MID is assigned, the 
mailer would have 12 digits to uniquely identify the containers. If a 
9-digit MID is assigned, the mailer would have 9 digits to identify the 
containers. To participate in the full-service option, the serial 
number field is populated with a unique number for each container in 
the mailing. These unique serial numbers must not be reused for 45 days 
from the date of mailing. To access the automation prices through the 
full-service option, mailers would be required to populate all fields 
in the IMcb to include a unique serial number. To view the final 
specifications and detailed information on the IMcb, access RIBBS at 
http://ribbs.usps.gov.

Appointment Scheduling

    All mailers whose mail is verified at a DMU/BMEU and transported by 
the mailer or their agent to a USPS processing facility, including 
mailings entered at origin and plant-verified drop shipments (PVDS), 
would be required to schedule appointments using the FAST system at 
postal facilities where applicable. Mailers may schedule appointments 
online using the FAST Web site or they may submit appointment requests 
through PostalOne! FAST Web Services using the Mail.XML specification. 
For improved service performance measurement, visibility, and 
operational planning, the Postal Service recommends that mailers link 
their IMcb to FAST appointments. Mailers must provide container 
barcodes as part of the stand-alone content creation, appointment 
creation, and update processes through PostalOne! FAST Web Services. 
Mailers can also receive close-out data through FAST online reports or 
PostalOne! FAST Web Services.

Electronic Documentation

    By submitting documents electronically, mailers are able to manage 
mailing data more effectively and avoid the creation of paper-based 
forms. Additionally, submission of documents electronically enables the 
Postal Service to capture efficiencies.
    When entering full-service mailings, eDoc is required. A mailer's 
eDoc identifies the unique IMb applied to each mailpiece, tray, tub, 
sack, and container; it describes how mailpieces are linked to handling 
units, such as trays, tubs, and sacks; and identifies how mailpieces 
and handling units are linked to containers. Additionally, eDoc 
identifies spoilage or shortage of pieces in a mailing, the preparer of 
the mailing, and the mailer for whom the mailing is prepared (i.e., 
Mail Owner). Mail Owner identification is required for all pieces in a 
full-service mailing.
    The eDoc is transmitted to PostalOne! and used for verification, 
acceptance, payment, service performance measurement, and induction 
planning and processing. Also, PostalOne! can use this information to 
automate postage statement generation and payment processing. 
PostalOne! has the capability to provide mailers with access to their 
mailing documentation and financial transaction information 24 hours a 
day, 7 days a week. The PostalOne! system translates the customer-
generated electronic information into postage statements and supporting 
documentation, such as qualification and container reports, which are 
used for verification, acceptance, and induction processes.
Mailings With Fewer Than 10,000 Pieces
    Except mailings consisting of letter- and flat-size Periodicals and 
BPM flats, full-service mailings with fewer than 10,000 pieces do not 
require the submission of eDoc--only an electronic postage statement is 
required. These mailings may be electronically submitted using Postal 
Wizard, Mail.XML, or Mail.dat.
    For mailings of fewer than 10,000 pieces, when postage is affixed 
to each piece at the correct price or each piece is of identical weight 
and the mailpieces are separated by price, the serial number field of 
each IMb can be populated with a mailing serial number that is unique 
to the mailing but common to all pieces in the mailing. This unique 
mailing serial number must not be reused for a period of 45 days from 
the date of mailing. Except mailers of full-service Periodicals letters 
and flats and BPM flats, mailers who enter such mailings are not 
required to submit eDoc for the full-service option, only an electronic 
postage statement. Unique mailing serial numbers must be populated in 
the Postal Wizard entry screen field or in the Mail.XML messages. 
Mailers must populate the serial number field of all Intelligent Mail 
tray or sack labels, and Intelligent Mail container barcodes (when 
mailings are containerized) with the unique mailing serial number. 
Postal Wizard cannot be used with full-service Periodicals and BPM 
mailings, even if under 10,000 pieces; Postal Wizard does not support 
adding the MID or the serial number(s) for these mailings. It should 
also be noted, for full-service mailings using the Postal Wizard, only 
the owner of the mailing permit will receive start-the-clock feedback.
Mailings With 10,000 Pieces or Greater
    When full-service mailings with 10,000 pieces or greater are 
entered, mailers are required to use Mail.dat or Mail.XML to 
electronically transmit mailing documentation and postage statements. 
eDoc must contain information about the unique ID that is applied to 
the mailpieces, placards, trays, tubs, sacks, and containers. Also, the 
information must describe how mailpieces are linked to handling units 
and how mailpieces and handling units are linked to containers.
    In addition, when mailings are co-palletized, co-mingled, or 
combined in-house or at a different plant, eDoc that outlines the 
linkage among associated

[[Page 63778]]

containers, trays, tubs, and sacks would be required.
Submitting eDoc
    The three methods for submitting eDoc are described as follows:
    Mail.dat: Mail.dat serves as a medium for electronic data exchange 
and is part of the overall PostalOne! application and provides 
customers the capability to electronically submit mailing documentation 
over a secure connection. Mail.dat uses industry-standard electronic 
file formats to facilitate communication. Mailing information is used 
to generate documentation to support verification, payment, and 
induction processes. Mail.dat specifications are available on RIBBS at 
http://ribbs.usps.gov.
    Mail.XML: The Mail.XML is an overarching communication 
specification that allows mailers to communicate eDoc and manage 
appointments with the Postal Service, while enabling it to provide 
quality, address correction, induction, and visibility information back 
to mailers. Mail.XML can also be used to communicate between mailers 
and consolidators/transporters. Mail.XML is part of the overall 
PostalOne! application that enables a just-in-time connection (send 
information when you are ready to share). The Mail.XML Web Service uses 
a Simple Object Access Protocol (SOAP) to submit information in an 
Extensible Markup Language (XML) format that ensures data are sent and 
received by applications written in various languages and deployed on 
various platforms. Mailing information is sent through Mail.XML to the 
PostalOne! system where the information is stored and used to generate 
documentation to support verification and payment. Mail.XML 
specifications are available on RIBBS at http://ribbs.usps.gov.
    Postal Wizard: The Postal Wizard is an online tool that allows 
mailers to securely enter their postage statement information using 
PostalOne! mailers may easily access Postal Wizard through the Business 
Customer Gateway at https://gateway.usps.com.
    Postal Wizard verifies completed information for an online postage 
statement and automatically populates the permit holder section of the 
postage statement based on the account number provided. It guides the 
user through items needed to complete the statement. Postal Wizard 
automatically calculates postage and validates submitted information. 
Once a postage statement is completed online, the electronic statement 
is submitted directly to the acceptance unit.
    For detailed information about electronic mailing options, access 
RIBBS at http://ribbs.usps.gov.

Additional Mailing Information Available With Full-Service

    Information on mailpiece quality and visibility is available 
through the online USPS BCG tool and PostalOne! Web Services 
(Mail.XML). Mailers can query the information or obtain an automated 
subscription. As part of the full-service program, the Postal Service 
will be making the following information available: Container and tray 
induction and processing scans, IMb tracing bundle and piece scans; 
start-the-clock information; address correction data; and quality and 
documentation error reporting information.

Intelligent Mail Barcode Embedded Data:

     Full-service unique Intelligent Mail barcodes must be 
embedded with the following data: Barcode Identifier and OEL 
information (if printed on the mailpiece), Service Type Identifier 
(showing class of mail), Mailer Identifier, Unique Serial Number, and 
Delivery Point Routing Code (11-digit).
     Barcode Identifier: The barcode ID is a 2-digit field 
reserved to encode the presort identification printed in human-readable 
form on the Optional Endorsement Line (OEL). Should be left as ``00'' 
if an OEL is not printed on the mailpiece, except for automation-rate 
eligible flat mail with an optional endorsement line, where the IMb 
must contain OEL coding corresponding to the correct sortation level of 
each piece.
     Service Type Identifier: The service type identifier 
(STID) indicates class of mail and requested special services such as 
scan information or ACS.
     Mailer Identifier: The MID is a mandatory 6- or 9-digit 
identifier of the mail owner/mailing agent that is assigned by the 
Postal Service based upon documented historical mail volume of the 
owner/agent.
     Serial Number: The serial number is complementary with the 
MID for a combined total of 15 digits, which leaves the mailer/agent 
with 6 or 9 digits for unique mailpiece identification. A combination 
of the MID and serial number within a mail class must not be reused 
within 45 days of the mailing date.
     Delivery Point Routing Code: The delivery point routing 
code describes the 5-, 9-, or 11-digit field that identifies the 
delivery ZIP Code data in the address.
    To view final specifications and detailed information on the IMb, 
access RIBBS at http://ribbs.usps.gov.
    Although the USPS is exempt from the notice and comment 
requirements of the Administrative Procedure Act [5 U.S.C of 553(b), 
(c)] regarding proposed rulemaking by 39 U.S.C. 410(a), we invite 
public comments on the following proposed revisions to Mailing 
Standards of the United States Postal Service, 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.

    Accordingly, 39 CFR Part 111 is proposed to be amended as follows:

PART 111--[AMENDED]

    1. The authority citation for 39 CFR Part 111 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 13 U.S.C. 301-307; 18 U.S.C. 1692-
1737; 39 U.S.C. 101, 401, 403, 404, 414, 416, 3001-3011, 3201-3219, 
3403-3406, 3621, 3622, 3626, 3632, 3633, and 5001.

    2. Revise the following sections of Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM), as follows:

Mailing Standards of the United States Postal Service, Domestic Mail 
Manual (DMM)

* * * * *

200 Commercial Letters and Cards

* * * * *

230 First-Class Mail

233 Prices and Eligibility

* * * * *

5.0 Additional Eligibility Standards for Automation First-Class Mail 
Letters

5.1 Basic Standards for Automation First-Class Mail Letters

    [Revise the introductory text of 5.1 as follows:]
    All pieces in a First-Class Mail automation mailing must meet full-
service standards in 705.24.0 and:
* * * * *
    [Revise item 5.1e as follows:]
    e. Bear an accurate unique Intelligent Mail barcode encoded with 
the correct delivery point routing code, matching the delivery address 
and meeting the standards in 202.5.0 and 708.4.0, either on the piece 
or on an insert showing through a window.
* * * * *
    [Delete current 5.2 in its entirety and renumber current 5.3 
through 5.5 as new 5.2 through 5.4.]
* * * * *

[[Page 63779]]

240 Standard Mail

243 Prices and Eligibility

* * * * *

6.0 Additional Eligibility Standards for Enhanced Carrier Route 
Standard Mail Letters

6.1 General Enhanced Carrier Route Standards

* * * * *

6.1.2 Basic Eligibility

    All pieces in an Enhanced Carrier Route or Nonprofit Enhanced 
Carrier Route Standard Mail mailing must:
* * * * *
    [Revise item 6.1.2g as follows:]
    g. Meet the requirements for automation letters in 201.3.0 and bear 
an accurate unique Intelligent Mail barcode encoded with the correct 
delivery point routing code matching the delivery address and meeting 
the standards in 202.5.0 and 708.4.0, except for letters with 
simplified addresses or as provided in 6.1.2h. Letters mailed at 
automation carrier route (basic, high density, or saturation) prices 
must be in a mailing entered under full-service Intelligent Mail 
standards in 705.24.0. Pieces prepared with a simplified address format 
are exempt from the full-service, automation-compatibility, and barcode 
requirements.
* * * * *

6.4 High Density Enhanced Carrier Route Standards

6.4.1 Additional Eligibility Standards for High Density Prices

    [Revise the text of 6.4.1 as follows:]
    In addition to the eligibility standards in 6.1, high density 
letter-size mailpieces must be in a full carrier route tray or in a 
carrier route bundle of 10 or more pieces prepared under 245.6.0. 
Except for pieces with a simplified address, only nonautomation high 
density letter prices apply when mailpieces are not: Barcoded with an 
Intelligent Mail barcode, automation-compatible, and part of a full-
service mailing under 705.24.0.
* * * * *

6.5 Saturation ECR Standards

6.5.1 Additional Eligibility Standards for Saturation Prices

    [Revise the text of 6.5.1 as follows:]
    In addition to the eligibility standards in 6.1, saturation letter-
size mailpieces must be in a full carrier route tray or in a carrier 
route bundle of 10 or more pieces prepared under 245.6.0. Except for 
pieces with a simplified address, only nonautomation saturation letter 
prices apply when mailpieces are not: barcoded with an Intelligent Mail 
barcode, automation-compatible, and part of a full-service mailing 
under 705.24.0.
* * * * *

7.0 Eligibility Standards for Automation Standard Mail

7.1 Basic Eligibility Standards for Automation Standard Mail

    [Revise the introductory text of 7.1 as follows:]
    All pieces in a Regular Standard Mail or Nonprofit Standard Mail 
automation mailing must meet full-service standards in 705.24.0 and:
* * * * *
    [Revise item 7.1e as follows:]
    e. Bear an accurate unique Intelligent Mail barcode encoded with 
the correct delivery point routing code, matching the delivery address 
and meeting the standards in 202.5.0 and 708.4.0, either on the piece 
or on an insert showing through a window.
* * * * *
    [Delete current 7.2 in its entirety and renumber current 7.3 
through 7.6 as new 7.2 through 7.5.]
* * * * *

300 Commercial Flats

* * * * *

330 First-Class Mail

333 Prices and Eligibility

* * * * *

5.0 Additional Eligibility Standards for Automation First-Class Mail 
Flats

5.1 Basic Standards for Automation First-Class Mail

    [Revise the introductory text of 5.1 as follows:]
    All pieces in a First-Class Mail automation flats mailing must meet 
full-service standards in 705.24.0 and:
* * * * *
    [Revise item 5.1e as follows:]
    e. Bear an accurate unique Intelligent Mail barcode encoded with 
the correct delivery point routing code, matching the delivery address 
and meeting the standards in 302.5.0 and 708.4.0, either on the piece 
or on an insert showing through a window.
* * * * *
    [Delete current 5.2 in its entirety and renumber current 5.3 
through 5.5 as new 5.2 through 5.4.]
* * * * *

340 Standard Mail

343 Prices and Eligibility

* * * * *

7.0 Additional Eligibility Standards for Automation Standard Mail Flats

7.1 Basic Eligibility Standards for Automation Standard Mail

    [Revise the introductory text of 7.1 as follows:]
    All pieces in a Regular Standard Mail or Nonprofit Standard Mail 
automation mailing must meet full-service standards in 705.24.0 and:
* * * * *
    [Revise item 7.1e as follows:]
    e. Bear an accurate unique Intelligent Mail barcode encoded with 
the correct delivery point routing code, matching the delivery address 
and meeting the standards in 302.5.0 and 708.4.0, either on the piece 
or on an insert showing through a window.
* * * * *
    [Delete current 7.2 in its entirety and renumber current 7.3 
through 7.4 as new 7.2 through 7.3.]
* * * * *

360 Bound Printed Matter

363 Prices and Eligibility

* * * * *

4.0 Price Eligibility for Bound Printed Matter Flats

4.1 Price Eligibility

    * * * Price categories are as follows:
* * * * *
    [Revise item 4.1d as follows:]
    d. Barcoded Discount--Flats. The barcoded discount applies to BPM 
flats that meet the requirements for automation flats in 301.3.0 and 
bear an accurate unique Intelligent Mail barcode encoded with the 
correct delivery point routing code and are part of a full-service 
mailing under 705.24.0. See 6.1 for more information.
* * * * *

6.0 Additional Eligibility Standards for Barcoded Bound Printed Matter 
Flats

6.1 Basic Eligibility Standards for Barcoded Bound Printed Matter

    [Revise the text of 6.1 as follows:]
    The barcode discount applies only to BPM flat-size pieces meeting 
the standards under 301.3.0 and that bear a unique Intelligent Mail 
barcode encoded with the correct delivery point routing code, matching 
the delivery address and meeting the standards in 302.5.0 and 708.4.0. 
The pieces must be part of a full-service nonpresorted mailing of 50 or 
more flat-size pieces or part of a full-service Presorted mailing of at 
least 300 BPM flats prepared under 365.7.0, 705.8.0, 705.14.0, and 
705.24.0. The barcode discount is not available for

[[Page 63780]]

flats mailed at Presorted DDU prices or carrier route prices.
* * * * *
    [Delete current 6.2 in its entirety and renumber current 6.3 
through 6.4 as new 6.2 through 6.3.]
* * * * *

500 Additional Mailing Services

503 Extra Services

* * * * *
    [Revise the title of 15.0 as follows:]

15.0 Intelligent Mail Barcode Tracing

* * * * *

15.1 Basic Information

* * * * *

15.1.1 General Information

    [Revise the text of 15.1.1 as follows:]
    Participation in Intelligent Mail barcode (IMb) Tracing service is 
available at no charge without a subscription. Requirements for 
participation in IMb Tracing include: The use of an IMb on mailpieces 
entered as part of a full-service mailing under 705.24.0, the use of a 
Mailer Identifier that has been registered (through the Business 
Customer Gateway, accessible on usps.com) to receive scan data, and 
verification by the Postal Service that the IMb as printed meets all 
applicable postal standards.
* * * * *

700 Special Standards

* * * * *

705 Advanced Preparation and Special Postage Payment Systems

* * * * *
    [Revise the title of 24.0 as follows:]

24.0 Full-Service Automation Standards

24.1 Description

    * * *  [Add a new last sentence at the end of the current text of 
24.1 as follows:]
    Full-service automation mailings may include automation-compatible 
pieces without barcodes, with POSTNET barcodes, or with Intelligent 
Mail barcodes. Mailings of full-service automation letters must not be 
comingled in the same tray with automation-compatible pieces without 
barcodes, with POSTNET barcodes, or with non-full-service Intelligent 
Mail barcodes, and these pieces will not be used to meet the 
eligibility standards for full-service or receive associated benefits.
    [Delete current 24.1.1 and 24.1.2 in their entirety.]

24.2 General Eligibility Standards

    [Revise the introductory paragraph of 24.2 as follows:]
    First-Class Mail, Periodicals, and Standard Mail letters and flats 
and Bound Printed Matter flats meeting eligibility requirements for 
automation or carrier route prices, except for Standard Mail ECR 
saturation flats or Standard Mail ECR letters paying nonautomation 
prices, are eligible for full-service automation prices. All pieces 
entered under the full-service automation pricing must:
* * * * *
    [Revise item 24.2c as follows:]
    c. Be part of a mailing using unique Intelligent Mail container 
barcodes on all destination-entry pallets and other containers prepared 
under 8.0 or as part of a customer/supplier agreement. Pallets or 
approved alternate containers, with unique Intelligent Mail container 
barcodes, also must be used whenever a mailing is entered at the dock 
of a USPS-processing facility and meets minimum container/pallet volume 
requirements. A customer/supplier agreement is authorized with a 
service agreement signed by the mailer, the USPS District Manager, 
Customer Service, and the USPS Processing and Distribution Center 
manager. The service agreement contains provisions regarding mailer and 
USPS responsibilities.
* * * * *

24.4 Preparation

* * * * *

24.4.2 Intelligent Mail Tray Labels

    * * * [Revise the second sentence of 24.4.2 as follows:]
    Mailing documentation, when required, must associate each mailpiece 
to a corresponding tray or sack, or to a logical tray or sack, as 
described in 24.4.4.
* * * * *

24.4.3 Intelligent Mail Container Placards

* * * * *
    [Revise the second sentence of 24.4.3 as follows:]
    Mailing documentation, when required, must associate each mailpiece 
(and tray or sack, if applicable) to a corresponding container (or a 
logical container) as described in 24.4.4, unless otherwise authorized 
by the USPS.
* * * * *

24.4.4 eDoc

    [Revise the text of 24.4.4 as follows:]
    Mailers must electronically submit postage statements and mailing 
documentation to the PostalOne! system. Unless otherwise authorized, 
documentation must describe how each mailpiece is linked to a uniquely 
identified tray or sack and how each mailpiece and tray or sack is 
linked to a uniquely identified container. Linking to logical trays, 
sacks, and containers via sibling records is an option when linking to 
a specific tray, sack, or container is not feasible. The documentation 
also must meet the requirements in A Guide to Intelligent Mail for 
Letters and Flats (at ribbs.usps.gov). Mailers must transmit postage 
statements and documentation to the PostalOne! system using Mail.dat, 
Mail.XML, or Postal Wizard (see 24.5.3), except that mailers of 
Periodicals letters and flats and Bound Printed Matter flats must 
electronically submit postage statements and documentation in all 
instances.
* * * * *

707 Periodicals

* * * * *

14.0 Barcoded (Automation) Eligibility

14.1 Basic Standards

    [Revise the introductory text of 14.1 as follows:]
    All pieces in a Periodicals barcoded (automation) mailing must meet 
the full-service standards in 705.24.0 and:
* * * * *
    [Revise the first sentence of item 14.1c as follows:]
    c. Bear an accurate unique Intelligent Mail barcode encoded with 
the correct delivery point routing code, matching the delivery address 
and meeting the standards in 202.5.0 (for letters), 302.4.0 (for 
flats), and 708.4.0, either on the piece or on an insert showing 
through a window.
* * * * *

14.2 Eligibility Standards for Full-Service Automation Periodicals

    [Revise the introductory text of 14.2 as follows:]
    All pieces entered under the full-service automation standards 
must:
* * * * *
    [Revise item 14.2b as follows:]
    b. Be part of a mailing that meets the standards in 705.24.0.
* * * * *

708 Technical Specifications

* * * * *

[[Page 63781]]

6.0 Standards for Barcoded Tray Labels, Sack Labels, and Container 
Placards

6.1 General

6.1.1 Tray and Sack Labels

    [Revise the text of 6.1.1 as follows:]
    Intelligent Mail tray labels are the USPS-approved method to encode 
routing, content, origin, and mailer information on trays and sacks. 
Intelligent Mail tray labels are designed for optimum use with 
Intelligent Mail barcoded mail and have the capacity to provide unique 
identification throughout postal processing, but are required to be 
used on all trays and sacks in presorted mailings.
* * * * *

6.2 Specifications for Barcoded Tray and Sack Labels

* * * * *

6.2.2 Line 1 (Destination Line)

    The destination line must meet these standards:
    a. Placement. The destination line must be the top line of the 
label. An exception is that one line of extraneous information may 
appear above the destination line on tray and sack labels as provided 
in 6.3.2, and 6.3.2f. The destination line must be completely visible 
when placed in the label holder. This visibility is ensured if the 
destination line is no less than \1/8\ (0.125) inch below the top of 
the label when the label is cut and prepared.
    [Delete Exhibit 6.2.2a, Barcoded 2-inch Sack Labels, in its 
entirety.]
* * * * *
    [Delete Exhibit 6.2.2b, Barcoded 1-inch Sack Labels, in its 
entirety.]
* * * * *

6.2.5 Line 3 (Origin Line)

    [Revise the first sentence of 6.2.5 as follows:]
    The origin line must appear below the content line, except as 
allowed under 6.3.4 and 6.2.5a and 6.2.5b. * * *
* * * * *
    [Delete current 6.3, Additional Standards--Barcoded 2-Inch Sack 
Labels and Barcoded Tray Labels, and 6.4, Additional Standards--
Barcoded 1-Inch Sack Labels, in their entirety.]
* * * * *
    [Renumber current 6.5 as new 6.3 and revise the title as follows:]

6.3 Specific Standards for Intelligent Mail Tray Labels

6.3.1 Definitions

    [Revise the text of renumbered 6.3.1 as follows:]
    Intelligent Mail tray labels are 2-inch labels used on trays and 
sacks to provide unique identification within postal processing. 24-
digit Intelligent Mail tray labels include only a 24 digit barcode 
printed in International Symbology Specification (ISS) Code 128 subset 
C symbology (see Exhibit 6.3.3). Intelligent Mail tray labels also 
include a human readable field designed to indicate the carrier route 
for carrier route mailings, display an ``AUTO'' indicator text for 
automation mailings, or remain blank for nonautomation mailings. 
Mailers using Intelligent Mail tray labels must print labels in the 24-
digit Intelligent Mail tray label format. Detailed specifications for 
the tray label and barcode formats are at http://ribbs.usps.gov.
    [Delete current Exhibit 6.5.1, 10/24 Transitional Intelligent Mail 
Tray Label, in its entirety.]
    [Delete current 6.5.2, Transitional Intelligent Mail Tray Label 
Format, in its entirety.]
    [Renumber current 6.5.3 through 6.5.7 as new 6.3.2 through 6.3.6.]
* * * * *
    We will publish an appropriate amendment to 39 CFR part 111 to 
reflect these changes if our proposal is adopted.

Stanley F. Mires,
Attorney, Legal Policy & Legislative Advice.
[FR Doc. 2012-25551 Filed 10-16-12; 8:45 am]
BILLING CODE 7710-12-P