[Federal Register Volume 63, Number 75 (Monday, April 20, 1998)] [Rules and Regulations] [Pages 19407-19408] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 98-10289] ======================================================================= ----------------------------------------------------------------------- POSTAL SERVICE 39 CFR Part 111 Experimental First-Class and Priority Mail Small Parcel Automation Rate Category AGENCY: Postal Service. ACTION: Final rule; notice of experiment expiration. ----------------------------------------------------------------------- SUMMARY: On April 18, 1996, the Postal Service published a final rule in the Federal Register (61 FR 17206-17215) and adopted amendments to the Domestic Mail Manual implementing the Decision of the Governors of the United States Postal Service on the Recommended Decision of the Postal Rate Commission on the Experimental First-Class and Priority Mail Small Parcel Automation Rate Category, Docket No. MC96-1. One of the provisions of the Postal Rate Commission, which was approved by the Governors of the Postal Service, was that the experiment would be limited to 2 years ending on April 28, 1998. This is to serve notice that the Postal Service intends to allow the experiment to end on its originally scheduled expiration date without filing a request with the Postal Rate Commission to establish [[Page 19408]] permanent classifications and discounts. DATES: Effective April 28, 1998. FOR FURTHER INFORMATION CONTACT: Paul H. Lettmann, (202) 268-6261 or Susan Duchek, (202) 268-2990. SUPPLEMENTARY INFORMATION: The Domestic Mail Classification Schedule (DMCS) provisions establishing the experimental classifications, recommended by the Postal Rate Commission and approved by the Governors of the Postal Service in March and April 1996, respectively, state that the Experimental First-Class and Priority Mail Small Parcel Automation Rate Category expires on April 28, 1998. The Postal Service has determined to publish this notice to ensure that all interested parties are afforded the opportunity of receiving advance notice of the experiment expiration, as well as to allow participating customers time during which they might make any necessary modifications in their mailing operations or practices before the experiment ends. The experiment had three basic objectives: to determine the feasibility and practicality of offering an automation discount for First-Class Mail and Priority Mail parcels; to gauge mailer interest and acceptance; and to confirm that the integration of barcode scanners on parcel sorters provides significant productivity enhancements in the processing of small parcels with barcodes versus keying of the same or similar pieces. During the experiment, participants were granted a four-cent per-piece discount on properly prepared First-Class Mail and Priority Mail prebarcoded small parcels at three test sites equipped with barcode-reading small parcel and bundle sorters. The Postal Service decision not to proceed further is based on the fact that data collected during the experiment indicated that cost savings resulting from the prebarcoding of parcels were insufficient to support the four- cent per piece discount, thus placing the Postal Service in a position of being unable to offer a discount that might prove attractive to small parcel mailers in general. Moreover, the level of customer interest in the experiment was disappointing throughout. Even with the four-cent per piece discount, only four customers chose to join with the Postal Service in the experiment. Two of these decided to cease their mailings prior to the April 28, 1998, expiration date. List of Subjects in 39 CFR Part 111 Postal Service. For the reasons discussed above, the Postal Service hereby adopts the following amendment to the Domestic Mail Manual, which is incorporated by reference in the Code of Federal Regulations (see 39 CFR part 111). 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, 3001- 3011, 3201-3219, 3403-3406, 3621, 3626, 5001. 2. Revise G090 of the Domestic Mail Manual as set forth below: G GENERAL INFORMATION G090 Experimental Classifications and Rates [Delete G091 in its entirety effective April 28, 1998.] G091 Barcoded Small Parcels * * * * * An appropriate amendment to 39 CFR 11.3 will be published to reflect these changes. Stanley F. Mires, Chief Counsel, Legislative. [FR Doc. 98-10289 Filed 4-15-98; 8:52 am] BILLING CODE 7710-12-P