[Federal Register: January 17, 2007 (Volume 72, Number 10)]
[Proposed Rules]               
[Page 2089-2133]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17ja07-21]                         


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Part II





 Postal Service





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39 CFR Part 111



 New Standards for Domestic Mailing Services; Proposed Rule


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POSTAL SERVICE

39 CFR Part 111

 
New Standards for Domestic Mailing Services

AGENCY: Postal Service.

ACTION: Proposed rule; notice of further rulemaking.

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SUMMARY: On September 27, 2006, the Postal Service published a proposal 
in the Federal Register (71 FR 56587) providing new mailing standards 
to accompany the R2006-1 price change proposal currently before the 
Postal Rate Commission. In this revised proposal we respond to the 
comments we received, summarize our changes, and further revise the 
mailing standards.
    Our pricing proposal reflects changes in operations and the 
marketplace and will enhance efficiency, offer more choices, and ensure 
that all types of mail cover their costs. We include incentives to 
create mailpieces compatible with our processing systems and to deposit 
flats and parcels closer to where they are delivered.
    Our proposal includes a new ``forever stamp'' to make future price 
changes more convenient for consumers. The forever stamp will always 
equal the First-Class Mail single piece 1-ounce letter price, without 
the addition of extra postage. We also propose new shape-based prices 
for First-Class Mail, with lower rates for many letter-size pieces over 
1 ounce. Our proposal will make the Priority Mail flat-rate boxes a 
permanent product offering, and we will add a new 1-pound pricing 
option for Express Mail.
    For commercial mailers we propose new sorting options to reduce the 
number of trays in a mailing and new scheme preparations to give 
mailers access to lower rates and to better align flat-size mail 
preparation with mail processing. We also add a new automated Address 
Change Service to reduce the costs associated with undeliverable-as-
addressed mail. First-Class Mail parcel mailers will have new barcode 
options, and we propose new opportunities for mailers to combine 
Standard Mail and Package Services parcels in the same mailing.
    Periodicals mailers will have new incentives to use efficient 
containers, and we revise the copalletization standards as a permanent 
offering to encourage more publishers to combine mailings. We also add 
new prices for the editorial portion of a mailing to give mailers of 
high-editorial-content publications access to lower, destination entry 
rates.

DATES: We must receive your comments on or before January 31, 2007.

ADDRESSES: Mail or deliver written comments to the Manager, Mailing 
Standards, U.S. Postal Service, 475 L'Enfant Plaza SW., Room 3436, 
Washington, DC 20260-3436. You may inspect and photocopy all written 
comments at USPS Headquarters Library, 475 L'Enfant Plaza SW., 11th 
Floor N, Washington, DC, between 9 a.m. and 4 p.m., Monday through 
Friday.

FOR FURTHER INFORMATION CONTACT: Joel Walker, 202-268-7261.

SUPPLEMENTARY INFORMATION: The Postal Service's request in Docket No. 
R2006-1 includes mail classification changes, new pricing structures, 
and price changes for most domestic mailing services. This proposed 
rule updates the revisions to Mailing Standards of the United States 
Postal Service, Domestic Mail Manual (DMM) that we would adopt to 
implement the R2006-1 price change proposal. We respond to comments on 
our September 27, 2006, Federal Register proposal (71 FR 56587), 
summarize major changes from the first proposal by class of mail and 
extra service, update our summary of the entire proposal, and update 
our proposed mailing standards. We invite your comments on all aspects 
of our second proposal.
    You can find our September proposal at http://www.usps.com/ratecase, along 

with side-by-side comparisons of today's prices and those that are 
currently under review by the Postal Rate Commission. We also provide 
helpful information for mailers on our Web site, including frequently 
asked questions, press releases, and Mailers Companion articles related 
to the pricing change.

Overview

    Our pricing strategy encourages an efficient mailstream to keep 
postage rates stable and to keep the mail a viable alternative for 
everyone. This revised proposal provides more detail to help mailers 
design mailpieces compatible with our processing systems and gives our 
customers the information they need to make good mailing decisions and 
access the lowest rates of postage.
    In early February we will publish an additional Federal Register 
notice incorporating comments from this proposal to ensure mailers have 
adequate time to prepare for the new standards and prices. The updated 
notice will provide a comprehensive view of our proposal at least a 
month before the Postal Service Governors vote on the new prices and an 
early opportunity to update software and other systems.

Summary of Comments

    We received comments on our mailing standards proposal from 
mailers, vendors, associations, and individuals. We appreciate your 
feedback. Of the 351 letters we received, 310 were similar comments on 
behalf of three nonprofit organizations that mail children's books. The 
other 41 comments were submitted by twenty-eight publishers, printers, 
and large mailers; six mailing associations; two software vendors; two 
individuals; one envelope vendor; one small-business owner; and one 
Postal Service employee.

General Comments

    Many commenters commended us for publishing the proposed standards 
early, for planning this revised proposal and an additional notice in 
February, and for communicating changes via DMM Advisory, Mailers 
Companion, and other avenues.
    Three commenters asked us to reformat our Federal Register proposal 
to provide more context to our mailing standards and to better 
highlight what we are changing. We appreciate this suggestion, and we 
added more of the current DMM text to our revisions--even if that text 
did not change--to provide context. We added a summary of changes to 
highlight the differences between our September proposal and this 
revised proposal. We also added more guidance throughout our mailing 
standards to help mailers read through our document and compare it to 
the current DMM.
    Twelve commenters expressed concern about the timeframe for the 
rate change. Five commenters requested a 120-day timeframe to prepare 
software and other systems; two mailers asked for a two-year timeframe; 
and one mailer asked for a minimum of 90 days. Commenters cited 
concerns about the complexity of the rate case and limited resources to 
make the required changes.
    The Postal Service Board of Governors sets the implementation date 
for the new prices and related changes. We published our mailing 
standards proposal in the Federal Register early in the rate change 
process to help mailers begin system planning and to allow for a 
second, updated proposal. Our February notice in advance of the Board's 
decision will further help mailers get ready for the change.

First-Class Mail Comments

    Two commenters commended us for proposing to eliminate First-Class 
Mail

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automation carrier route rates and for emphasizing 5-digit and 3-digit 
preparation schemes.
    Two commenters asked us to change our preparation requirements for 
automation heavy letters. Our experience and testing indicate that 
letter-size pieces over 3 ounces are most efficiently processed when 
they are in envelopes. Self-mailer and booklet-type pieces weighing 
over 3 ounces and letter-size pieces weighing over 3.5 ounces (even 
when enveloped) often jam and damage our equipment, the mailpieces 
themselves are damaged, and our mail processing speeds are 
significantly reduced. Therefore we will retain the current 
requirements.
    One commenter suggested we keep the current rigidity standards for 
determining nonmachinable letter-size pieces. We did not change the 
definition of ``rigidity'' for letters in DMM 201.2.0. One commenter 
asked for clarification on the applicable rate for a rigid letter-size 
piece. A rigid First-Class Mail letter-size piece will pay the flat-
size price.
    One commenter suggested a maximum weight of 3.5 ounces for all 
letter-size pieces, regardless of class. We propose to change the 
weight limit for all First-Class Mail letter-size pieces to 3.5 ounces. 
Because the proposed rate structure does not support a piece/pound rate 
for Standard Mail machinable and nonmachinable letters, we cannot 
propose a 3.5-ounce limit for those pieces.
    Two commenters expressed concern about customers' and employees' 
ability to determine postage under the new shape-based pricing for 
First-Class Mail. To ensure a smooth transition for both retail and 
business mailers, we are developing an in-depth communications and 
training plan to ensure both employees and customers have the knowledge 
they need to determine the correct postage.
    Six commenters asked us to clarify our definition of a ``full'' 
letter tray, and one commenter requested tolerance when trays are not 
quite filled to 85 percent capacity. Vendors commonly set presort 
software parameters at 85 percent capacity today, and most software 
includes defaults to that setting. Because fuller trays will help 
reduce costs and keep postage rates stable, we proposed this change to 
signal all mailers to set their software for trays that are at least 85 
percent full. Acceptance personnel will work with mailers when they 
identify trays that appear less than full, as they do today, so mailers 
can make adjustments on future mailings.
    Ten commenters requested clarification of the no-overflow tray 
option for automation letters. One commenter asked us to emphasize that 
presort bureaus likely will not use the option for combined mailings. 
Three commenters asked that we allow mailers to implement the no-
overflow tray option selectively within a mailing.
    We have been working with software vendors to identify different 
mail preparation scenarios and how presort software will handle them. 
We encourage mailers to use the option by clarifying that pieces moved 
back to a higher tray level will count toward the 150-piece requirement 
for the qualifying rate level. We acknowledge that the option may not 
be realistic in all mailing environments and emphasize that it is an 
option. We have adopted the commenters' proposal to allow mailers to 
selectively apply the option by 3-digit or automated area distribution 
center (AADC) destinations in any single mailing, and we modified the 
standards to reflect this change.
    We received two comments about the forever stamp. The first 
commenter agreed with the standards as proposed but asked us to change 
the Domestic Mail Classification Schedule to be consistent with the 
DMM. The Domestic Mail Classification Schedule is consistent with the 
DMM. Forever stamps will be used like other First-Class postage stamps. 
The second commenter asked us to clarify the use of forever stamps. 
Forever stamps may be used on single-piece mail and may not be used for 
discount mailings.
    We received three comments about First-Class Mail parcels. One 
commenter suggested we not require 5-digit/scheme and 3-digit 
preparation. We have adopted the suggestion to make 5-digit/scheme 
preparation optional to be consistent with Standard Mail parcel 
preparation. A second commenter asked why we would apply a surcharge to 
nonbarcoded First-Class Mail, Standard Mail, and Parcel Post parcels 
while giving a discount to barcoded Media Mail, Library Mail, and Bound 
Printed Matter parcels. Although the rate structures differ, we are 
consistent in our objective to encourage barcodes on parcels. Whether a 
customer pays a surcharge for failing to barcode a parcel or receives a 
discount for applying a barcode, we are providing an incentive to 
barcode parcels. A third commenter said it was not clear from the 
proposal if we would process First-Class Mail parcels on the Automated 
Package Processing System (APPS). If a mail processing facility has an 
APPS, that facility will very likely use it to process APPS-machinable 
parcels when they are not in 5-digit containers.
    One commenter noted that the additional-ounce rate is not the same 
for all ounce increments in our proposal. Presort bureaus will have to 
separate pieces that cannot be delivery point barcoded by weight to 
ensure correct postage is paid. The commenter requested we adjust the 
pricing proposal by making the additional-ounce rates consistent.
    The request to adjust the additional-ounce prices is outside the 
scope of our mailing standards proposal. The commenter is correct that 
pieces coded only with a 5-digit barcode because of, for example, an 
incomplete address or missing address elements, must be separated by 
ounce increment or properly documented to account for postage.
    One commenter asked if we will update the rate and fee schedules 
for Business Reply Mail (BRM) to include First-Class Mail flats and 
parcels and Priority Mail rates above 13 ounces. The commenter asked us 
to clarify the First-Class Mail BRM rate for pieces that weigh over 3.5 
ounces. BRM pays the per-piece fee plus the applicable First-Class Mail 
or Priority Mail rate. The rate for a letter-size piece over 3.5 ounces 
is the First-Class Mail flat-size rate. The application of the proposed 
fees for BRM mirror what is now in place.

Standard Mail Comments

    Nineteen commenters disagreed with or made suggestions regarding 
the proposed standards for flat-size mail. Most of these commenters 
asked for a clearer, more objective test for flexibility to determine 
whether a piece may be mailed at flat-size rates. Some commenters asked 
us to better describe the amount of force used during the flexibility 
test. In response to these comments we revised the standards to change 
the point where pressure is applied to 1 inch from the extended outer 
edge, and we added a requirement that the piece must pass the test when 
extended from both ends. This new test more specifically identifies the 
types of pieces that will not process efficiently on our automated flat 
sorting equipment or handle efficiently in delivery. We will advise our 
employees to use a steady pressure that stops short of breaking the 
mailpiece or its contents. When they begin to feel resistance due to 
rigidity, the pressure should be stopped at that point.
    Three commenters stated that, when describing the flexibility test, 
the phrase ``damage to the mailpiece'' is too subjective and could be 
interpreted to mean even a crease in the binding of a

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magazine or catalog. We do not consider a crease in the binding to be 
damage to the mailpiece. Generally magazines, catalogs, and similarly 
bound mailpieces will meet our flexibility standards, unless they 
contain rigid enclosures or attachments, or they are placed in rigid 
packaging. We will instruct acceptance employees to exclude ordinary 
magazines, catalogs, and similarly bound publications from the new 
flexibility test. Mailers should note that boxes generally are not 
acceptable for efficient flats processing and delivery and would likely 
fail the flexibility test.
    Several commenters asked us to clarify the uniform thickness 
standard that we proposed to expand to all flat-size mail. In response 
to these comments, we relaxed the current definition and redefined 
``uniform thickness'' in DMM 301.1.5 to allow for a variation in 
thickness up to \1/4\ inch with selvage limitations.
    Three commenters were concerned that the deflection test for flimsy 
automation flats might be too strict, and they asked us to clarify the 
test. In response to these comments, we revised the deflection test to 
allow deflection (``droop'') to within 1 inch of the extended length, 
with a maximum deflection of 4 vertical inches. An 8-inch-long piece, 
extended out 4 inches, could deflect down as far as 3 inches and still 
be an automation-compatible flat. Pieces that fail the deflection test 
still may be eligible for nonautomation flat-size rates. At this time, 
the deflection test does not apply to enhanced carrier route (ECR) 
flats.
    To further clarify the standards for flexibility and deflection, we 
are developing illustrations for the DMM that show how the tests are 
applied.
    Sixteen commenters requested clarification about the new Not Flat-
Machinable category of Standard Mail. We clarified the definition of a 
Not Flat-Machinable piece as follows:
    Not Flat-Machinable pieces are rigid, with the following 
dimensions:
    1. At least 4 inches high, but not more than 12 inches high.
    2. At least 4 inches long, but not more than 15\3/4\ inches long.
    3. At least 0.009 thick, but not more than 1\1/4\ inches thick. 
(Pieces less than 5 inches long must be over \1/4\ inch thick.)
    Almost all Not Flat-Machinable pieces will fall within this 
definition. But Not Flat-Machinable pieces are also:
    Flexible pieces that are at least 4 inches high, but not more than 
12 inches high, with either of the following dimensions:
    1. Over 15 inches long, but not more than 15\3/4\ inches long.
    2. Over \3/4\ inches thick, but not more than 1\1/4\ inches thick.
    Or nonmachinable letter-size pieces weighing more than 3.3 ounces, 
unless they qualify to be mailed at automation flat-size rates.
    We created a decision tree to further help mailers determine if a 
piece is Not Flat-Machinable. We will publish the decision tree in the 
DMM Advisory and in a new Quick Service Guide for Not Flat-Machinable 
mail. The DMM Advisory message board and the Quick Service Guides are 
available on Postal Explorer at pe.usps.com. You can receive DMM 
Advisory updates via e-mail by sending a message to 
dmmadvisory@usps.com (indicate ``subscribe'' in the subject line).

    One commenter asked us to allow Bulk Parcel Return Service (BPRS) 
for returns of Not Flat-Machinable pieces. BPRS is available only for 
Standard Mail machinable parcels. We are not proposing to extend BPRS 
to Not Flat-Machinable pieces.
    One commenter noted different preparation standards for NFMs 
weighing 6 ounces or more and NFMs weighing less than 6 ounces, stating 
that lighter pieces would be prepared as flats. Our preparation and 
labeling standards will direct NFMs to the appropriate processing 
facilities. The proposed preparation of NFMs 6 ounces or more mirror 
the preparation of Standard Mail machinable parcels that are 
efficiently processed at BMCs. The proposed preparation of NFMs under 6 
ounces mirror the preparation of Standard Mail irregular parcels that 
are efficiently processed at ADCs.
    One commenter noted that reconfiguring packaging is not a solution 
for rigid pieces that are more than .75 inch thick. Rigid pieces and 
pieces more than .75 inch thick cannot be processed efficiently on AFSM 
100s. Our pricing proposal encourages mailers to reconfigure packaging 
to create flexible pieces less than .75 inch thick--for example, by 
redistributing contents within longer packaging.
    The same commenter asked us to reassure mailers that our standards 
will not change after they invest in new equipment, and asked us to 
outline our plans for the NFM category of mail. We do not plan to 
categorize rigid pieces as flats because these pieces negatively impact 
delivery and processing operations. We will work with mailers to ensure 
that their pieces can be effectively and efficiently processed and 
delivered. The goal of the NFM category over time is to provide 
financial incentives to create automated flats or machinable parcels. 
The NFM category may be temporary if it achieves this goal.
    We received 310 comments opposing the Not Flat-Machinable prices on 
behalf of three organizations that mail children's books. These 
commenters were concerned with the potential negative impact on the 
organizations' objectives due to the rate increase. This objection to 
the new rates is outside the scope of our mailing standards proposal. 
We encourage mailers to reconfigure their mailpieces to meet the new 
standards for automation flats.
    Four commenters asked for a lower minimum weight for Standard Mail 
machinable parcels. We will address their request separately from this 
rate case proposal.
    Two commenters noted a discrepancy at the 3-digit level between the 
proposed standards for irregular parcels and the proposed standards for 
Not Flat-Machinable pieces less than 6 ounces. We revised the proposal 
to require 3-digit sorting for both types of pieces.
    One commenter asked us to clarify the standards for bundling 
parcels for destination delivery unit (DDU) entry. We require bundling 
only for Standard Mail irregular parcels mailed at an ECR rate to 
sequence carrier route mail in either line-of-travel or walk-sequence 
order.
    Two commenters asked us to keep the processing category name 
``irregular parcels'' rather than change it to ``nonmachinable 
parcels.'' To avoid confusion for customers, we will retain the name 
``irregular parcels,'' and we made the appropriate changes throughout 
the standards.
    One commenter noted we referenced the wrong labeling lists for area 
distribution center (ADC) and mixed ADC labeling for irregular parcels. 
We appreciate this comment. We corrected the labeling standards to 
reference labeling lists L603 and L604.
    As we summarized in First-Class Mail, six commenters asked for 
clarification on our definition of a ``full'' letter tray, and one 
commenter requested some tolerance when trays are not quite filled to 
85 percent capacity. Vendors commonly set presort software parameters 
at 85 percent capacity today, and most software includes defaults to 
that setting. Because fuller trays will help reduce costs and keep 
postage rates stable, we proposed this change to signal all mailers to 
set their software for trays that are 85 percent full. Acceptance 
personnel will continue to work with mailers when they identify trays 
that appear less than full, as they do today, so adjustments can be 
made on future mailings.

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    Also as summarized in First-Class Mail, 10 commenters requested 
clarification of the no-overflow tray option for automation letters. 
One commenter asked us to emphasize that presort bureaus likely will 
not use the option for combined mailings. Three commenters asked that 
we allow mailers to implement the no-overflow tray option selectively 
within a mailing.
    We have been working with software vendors to identify different 
mail preparation scenarios and how presort software will handle them. 
We encourage mailers to use the option by clarifying that pieces moved 
back to a higher tray level will count toward the 150-piece requirement 
for the qualifying rate level. We acknowledge that the option may not 
be realistic in all mailing environments and emphasize that it is an 
option. We have adopted the commenters' proposal to allow mailers to 
selectively apply the option by 3-digit or AADC destinations in any 
single mailing, and we modified the standards to reflect this change.
    One commenter asked us to allow full tray preparation for ECR 
letters to all 5-digit destinations, and for pieces weighing over 3 
ounces. In response to this comment, we simplified the standards to 
require the same tray preparation for all automation-compatible, 
barcoded pieces up to 3 ounces, regardless of ZIP Code destination. We 
retained the 3-ounce weight limit because our experience and testing 
show that heavier pieces processed sequentially will slow our 
processing operations.
    Another commenter expressed concern about allowing mailers to drop 
ship ECR letters to DDUs, because we would likely backhaul this mail to 
upstream processing facilities. We eliminated the DDU entry discount 
for Standard Mail letters because we often do backhaul this mail. We 
retained a destination sectional center facility (DSCF) entry discount 
for local mailers of small quantities and for letters with simplified 
addresses.
    One commenter requested that the Postal Service not process 
enhanced carrier route saturation (ECRWSS) flats on automated equipment 
and that we should not apply the flexibility, rectangular, and uniform 
thickness standards to ECRWSS flats. As a reminder, current standards 
require most mailpieces up to \1/4\ inch thick to be rectangular, 
including ECRWSS flats. Also, most pieces mailed at ECRWSS rates are 
not rigid and would meet the revised uniform thickness standards that 
allow up to \1/4\ inch variation in thickness. Nonrectangular, rigid, 
or lumpy pieces generally are more problematic for our delivery 
operations. Therefore, we are retaining similar physical standards for 
all flat-size mailpieces.

Periodicals Comments

    Two commenters objected to the $0.85 Outside-County container rate, 
stating that it was too expensive for many mailers. This objection to 
the new rate structure is outside the scope of our mailing standards 
proposal.
    Two commenters asked us to clarify how the Outside-County container 
rate is applied. We revised the standards in DMM 707.1.1.3 and 
707.1.2.3 to clarify how the $0.85 rate applies to sacks, trays, and 
pallets of Periodicals mail.
    Two commenters objected to the application of the Outside-County 
container rate to containers of mixed class or mixed In-County and 
Outside-County pieces. The commenters would like us to prorate the 
charge to reflect only the percentage of Periodicals Outside-County 
mail in that mixed container. For example, if a sack contained 50 
percent In-County mail and 50 percent Outside-County mail, the mailer 
would pay half of the $0.85 charge for that sack.
    The container rate will help us cover our costs for handling 
Outside-County Periodicals mail. Our intent is to improve efficiency 
and alleviate pressure on Periodicals processing costs. We note that 
the container rate is an integral part of the new Periodicals pricing; 
we mitigated the price increase of the piece and pound rates to allow 
for the addition of the Outside-County container rate. To avoid 
imposing the Outside-County pricing structure on In-County Periodicals 
mail, we revised the standards to exempt carrier route, 5-digit carrier 
routes, and 5-digit/scheme containers of mixed In-County and Outside-
County pieces from the container charge.
    Four commenters objected to the options we proposed for paying the 
Outside-County container rate in a comailing environment. Initially we 
proposed that consolidators report the charge on one publisher's Form 
3541, or report and pay on one consolidated statement, Form 3541-C. 
Three commenters asked us to allow a consolidator to prorate the 
container charge on each individual postage statement. The commenters 
felt that this method would most accurately allot the appropriate 
charge to each mailer and would avoid a situation where the 
consolidator must pay the charge and bill mailers after the mailing is 
entered. One commenter noted possible ramifications for sales taxes.
    We added a third option to allow consolidators to prorate the 
container charge on each postage statement in the pool if they 
electronically submit their qualification report using Mail.dat. We 
provide the new standards and all options for calculating and paying 
the Outside-County container charge in DMM 707.2.2.7 and 707.16.4.
    Two commenters asked us to clarify our standards for Periodicals 
automation flats. The standards for Periodicals automation flats are 
essentially unchanged. We reorganized the current UFSM 1000 criteria 
into the Periodicals standards in the DMM to reflect that this 
alternative preparation for automation flats is still available for 
Periodicals mail. This alternative allows Periodicals mailers to 
continue to claim automation rates based on the current UFSM 1000 
criteria. We clarified the standards in DMM 707.25.3.1 to specify that 
they are an exception to the standards in DMM 301.3.3 for Periodicals 
flat-size mail.
    One commenter asked us to expand and clarify the standards for 
polywrap seam placement on Periodicals mail. While we are not changing 
the standards for seam placement, we simplified and clarified the 
polywrap standards for all types of automation-rate flats, including 
Periodicals flats, in a Federal Register notice on January 5, 2007 (72 
FR 468).
    One commenter requested new mailing standards to allow comailing of 
mixed-class mail. We note the commenter's request, and we will provide 
the new standards in a separate rulemaking. Comailing of mixed-class 
mail is outside the scope of this proposal.

Package Services Comments

    Three commenters opposed eliminating the single-piece Bound Printed 
Matter (BPM) rate for retail customers. Our proposal is designed to 
simplify options at the retail counter. Mailers still may use Express 
Mail, Priority Mail, Parcel Post, and Media Mail services in any post 
office. BPM is essentially a bulk service, and customers can mail 
residual pieces at nonpresorted BPM rates using PC Postage, meter 
postage, and adhesive stamps. Mailers can deposit nonpresorted BPM 
pieces in a collection box or with their letter carrier.

Priority Mail Comments

    Two commenters supported our overall efforts to align prices with 
costs but expressed concern that dimensional-weight pricing may be too 
complex for some customers. Dimensional weighting is an industry-wide 
practice used by

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UPS, FedEx, DHL, and other postal administrations such as Canada Post 
and Australia Post. Many mailers are generally familiar with 
dimensional weighting. Retail customers can bring Priority Mail parcels 
to any post office and (if necessary) we will weigh, measure, and 
compute postage for them. Our Point of Service (POS) terminals will 
determine whether to base the postage on the actual weight or the 
dimensional weight of the piece and will calculate the correct price.
    One commenter suggested that we clarify what we mean by ``rounding 
off'' and ``rounding up'' when determining dimensional-weight pricing. 
We appreciate this suggestion and added references in the Priority Mail 
standards to the ``Rounding Numerical Values'' information in DMM 
604.8.0.
    One commenter expressed concern that dimensional-weight pricing 
will add complexity to retail transactions, especially in smaller post 
offices that lack computerized scales and terminals. We are developing 
a comprehensive communications and training plan to ensure all 
employees can efficiently determine postage for Priority Mail.

Extra Services Comments

    Two commenters stated that the proposed structure for Confirm 
eliminates the unlimited use option and, although the fee declines with 
volume, mailers who use Confirm the most will pay the highest increase. 
This objection to the new rate structure is outside the scope of our 
mailing standards proposal.
    One commenter asked us to explain how we would implement the new 
Confirm prices and how we would give credit for existing subscriptions. 
We are considering options to provide full value for customers 
currently participating in Confirm. Alternatives include 
``grandfathering'' current prices and subscriptions until their 
scheduled expirations, or terminating current subscriptions and 
crediting forward the full value of any remaining time and unused scans 
associated with those subscriptions.

Addressing Comments

    We received two comments encouraging us to adopt move update 
requirements for other than First-Class Mail to improve address quality 
and reduce undeliverable-as-addressed mail. We will continue to tighten 
address quality standards, but expanding the move update requirements 
is not a part of this proposal.
    Several commenters asked that we move the proposed ZIP+4 
requirements for all letters and flats out of the rate case proposal 
and handle them in a separate rulemaking. We wanted to provide advance 
notice but will provide details in a separate rulemaking.
    Two commenters asked us to publish a notice for comment if we ever 
planned to expand the use of simplified addressing for city routes. 
Simplified addressing for city routes is outside the scope of this 
proposal.

Major Changes Since the September Proposal

First-Class Mail Changes

    We added language to DMM 235.6.0 to clarify that the no-overflow 
option for First-Class Mail automation letters applies to pieces placed 
in the next tray level when a tray of 150 or more pieces can be made. 
We changed the application of the no-overflow option in DMM 235.6.0 to 
allow mailers to apply it selectively for letters to 3-digit and AADC 
destinations. We clarify that pieces that move back to a higher tray 
level count toward the 150-piece requirement for the rate level.
    We relaxed the flexibility test in DMM 101.2.0 and 301.1.0 for all 
flat-size mail to apply pressure within 1 inch of the extended ends. We 
modified the uniform thickness standard in DMM 101.2.0 and 301.1.0 for 
all flat-size mail to allow for up to \1/4\-inch variance in thickness. 
We also relaxed the deflection test in DMM 301.3.0 for automation flats 
by allowing deflection to within 1 inch of the extended length, with a 
maximum vertical drop of 4 inches.
    We made 5-digit/scheme preparation optional for First-Class Mail 
presort parcels to be consistent with Standard Mail parcel preparation. 
We added new standards in DMM 402.4.3 for placing POSTNET barcodes on 
First-Class Mail parcels. Mailers must place the POSTNET barcode on the 
address side, at least \1/8\ inch from all edges of the piece. We 
revised ADC rate eligibility in DMM 433.4.3 to include presorted 
parcels in 3-digit origin/entry sacks and parcels in ADC sacks.

Standard Mail Changes

    We added an option to allow mailers to prepare origin entry 3-
digit/scheme trays and sacks for Standard Mail letters, flats, and 
parcels. The original proposal required origin entry 3-digit/scheme 
trays for automation letters but did not provide an option for other 
letters or for flats and parcels. Our revision gives mailers the option 
to make separate trays or sacks of mail when they have even a small 
quantity of mail for each 3-digit or 3-digit scheme ZIP Code area 
processed by the sectional center facility (SCF) servicing the origin 
or entry office.
    We clarified in DMM 245.7.0 that the no-overflow option for 
automation letters applies to pieces placed in the next tray level when 
a full tray or a tray of 150 or more pieces can be made. We changed the 
application of the no-overflow option in DMM 245.7.0 to allow mailers 
to apply it selectively for letters to 3-digit and AADC destinations.
    We expanded full-tray preparation in DMM 245.6.7 for barcoded 
carrier route letters (up to 3 ounces) sorted to all destinations, 
instead of those ZIP Codes receiving a DPS sort (ZIP Codes with ``C'' 
and ``D'' indicators in the USPS City State Product).
    We clarified the definition of a Not Flat-Machinable piece in DMM 
401.2.2.2. We clarified in DMM 243.3.0 that mailers must mark 
nonmachinable letters over 3.3 ounces that pay Not Flat-Machinable 
rates as ``Not Flat-Machinable'' or ``NFM.'' We also refer to these 
marking requirements in DMM 402.
    We relaxed the flexibility test in DMM 301.1.0 for all flat-size 
mail to apply pressure within 1 inch of the extended ends. We modified 
the uniform thickness standard in DMM 301.1.0 for all flat-size mail to 
allow for up to \1/4\-inch variance in thickness. We also relaxed the 
deflection test in DMM 301.3.0 for automation flats by allowing 
deflection to within 1 inch of the extended length, with a maximum 
vertical drop of 4 inches.
    We revised the standards for sorting irregular parcels and Not 
Flat-Machinable pieces under 6 ounces to require 3-digit sorting. We 
also made 5-digit and 5-digit scheme sorting optional but required for 
the 5-digit rate for all Standard Mail parcels and Not Flat-Machinable 
pieces. We removed the facing and loose packing requirements for 
irregular parcels in DMM 445.5.4.3.
    We provided alternative labeling lists--L004 and L009--for 
irregular parcels over 2 ounces (except for rolls and tubes) sorted to 
ADCs and mixed ADCs. We corrected the standards for other irregular 
parcels labeled to ADCs and mixed ADCs to reference labeling lists L603 
and L604.
    We added new standards in DMM 402.4.3 for the placement of POSTNET 
barcodes on Not Flat-Machinable pieces. Mailers must place the POSTNET 
barcode on the address side, at least \1/8\ inch from all edges of the 
piece. We also revised standards to apply the barcoding requirements 
for parcels to Not Flat-Machinable pieces with parcel barcodes.

[[Page 2095]]

Periodicals Changes

    We revised the standards in DMM 707.1.1.3 and 707.1.2.3 to clarify 
how the $0.85 Outside-County container rate applies to trays, sacks, 
and pallets of Periodicals mail. We also exempt mixed containers of In-
County and Outside-County pieces in carrier route, 5-digit carrier 
routes, and 5-digit/scheme containers from the $0.85 charge.
    We added an option to allow consolidators to prorate the Outside-
County container charge on each mailer's postage statement in a mailing 
pool if they electronically submit a qualification report using 
Mail.dat. We provide the new standards and all options for calculating 
and paying the Outside-County container charge in DMM 707.2.2.7 and 
707.16.4. We also added new requirements for standardized documentation 
in 708.1.2.
    We reorganized the current UFSM 1000 criteria into the Periodicals 
standards in the DMM to reflect that this alternative preparation for 
automation flats is still available for Periodicals mail. This 
alternative allows Periodicals mailers to continue to claim automation 
rates based on the current UFSM 1000 criteria. We clarified the 
criteria for automation flats in DMM 707.25.3.1 to specify that these 
standards are an exception to DMM 301.3.3 for Periodicals flat-size 
mail.

Updated Summary by Class of Mail

Summary of First-Class Mail

    Our proposal introduces prices based on the shape of mail and our 
relative costs, with separate prices for letters, flats, and parcels. 
As shape becomes more important, weight becomes less important, and our 
proposal reduces prices for many letter-size pieces over 1 ounce.
    The single-piece 1-ounce First-Class Mail letter price will 
increase $0.03, to $0.42, and the single-piece card price also will 
increase $0.03, to $0.27. The additional-ounce price will decrease 
$0.04, to $0.20.
    We propose a forever stamp to make future price changes more 
convenient for consumers. The postage value of the forever stamp will 
equal the First-Class Mail single-piece 1-ounce letter rate at any time 
in the future, without the addition of extra postage.
    Our pricing proposal will eliminate the nonmachinable surcharge. 
Instead, a letter-size mailpiece with nonmachinable characteristics 
will pay the flat-size price. Our additional handling costs are 
included in the proposed 1-ounce flat-size price, so no surcharge is 
necessary. To qualify for letter rates, the maximum weight for letter-
size pieces will be 3.5 ounces.
    The additional-ounce price for automation letters will decrease 
from $0.237 to $0.155. We will maintain the 150-piece minimum tray 
preparation requirement for automation First-Class Mail letters and 
cards. Sort levels will be 5-digit/scheme, 3-digit/scheme, 3-digit 
origin, AADC, and mixed AADC. We propose a simplified letter mail 
preparation for machinable letters, requiring mailers to sort only to 
the origin 3-digit, AADC, and mixed AADC levels. We propose to 
eliminate the carrier route automation preparation since it provides 
little value for our processing operations.
    To ensure automated processing of flat-size mail, we will require 
all flats to be rectangular. The physical standards for automation 
flats will be the criteria for AFSM 100 pieces, with new standards for 
flexibility. We also propose to lessen and simplify the deflection 
standard.
    To help reduce the number of ``air trays'' and the overall costs of 
handling mail in letter trays, we propose a no-overflow tray option for 
automation letters. In addition, to encourage fuller trays, we propose 
to change our definition of a ``full letter tray'' to one in which the 
pieces fill the length of the tray between 85 percent and 100 percent 
full.
    The structure for discount parcels includes new workshare prices. 
The proposed rate levels are 5-digit, 3-digit, ADC, and single piece. 
To simplify the preparation of First-Class Mail parcels, we propose to 
make the preparation of 5-digit sacks optional. We will require at 
least 10 pounds of parcels for 5-digit sacks, 3-digit sacks, and ADC 
sacks. Remaining pieces sorted to a mixed ADC sack will pay the single-
piece First-Class Mail parcel price.
    Barcodes help processing on APPS, and we will give mailers the 
option of applying either a 5-digit UCC/EAN 128 or a POSTNET barcode on 
presorted parcels. Unless prepared in 5-digit/scheme containers or paid 
at the single-piece rates, we will apply a surcharge to all parcels 
that are not barcoded or weigh less than 2 ounces, or to irregularly 
shaped parcels such as triangles, tubes, rolls, and similar pieces.

Summary of Standard Mail

    Our proposed prices encourage mail that is compatible with our 
operations and drop shipped closer to its destination. As in First-
Class Mail, Standard Mail pricing has greater recognition of shape and 
reduced reliance on weight.
    Automation letter sort levels will be 5-digit/scheme, 3-digit/
scheme, AADC, and mixed AADC. We propose a simplified preparation to 
allow mailers of machinable letters to sort only to the AADC and mixed 
AADC levels. Mailers will have the option to prepare origin 3-digit 
trays for automation and machinable letters.
    Nonmachinable letter sort levels will be 5-digit, 3-digit, ADC, and 
mixed ADC. Mailers will have the option to prepare origin 3-digit trays 
for nonmachinable letters. We will replace the nonmachinable surcharge 
with a separate rate structure for nonmachinable letters up to 3.3 
ounces. Nonmachinable letters over 3.3 ounces will pay the Not Flat-
Machinable rate or automation flat-size rate, if the pieces meet the 
standards for automation flats.
    DDU entry rates will not be available for ECR letters. However, we 
will allow DSCF entry rates for DDU entry of some enhanced carrier 
route letters, including letters with simplified addresses and locally 
entered small-volume mailings. We will eliminate ECR automation basic 
rates because this preparation has little value for our mail processing 
operations.
    To help reduce the number of ``air trays'' and the overall costs of 
handling mail in letter trays, we propose a no-overflow tray option for 
automation letters. In addition, to encourage fuller trays, we propose 
to change our definition of a ``full letter tray'' to one in which the 
pieces fill the length of the tray between 85 percent and 100 percent 
full.
    The physical standards for automation flats will retain most of the 
criteria for AFSM 100 pieces, with new standards for flexibility. This 
change will maximize the number of flats we can process in automated 
operations and deliver as flats. We propose to relax the current 
deflection standard to better define the types of pieces we can 
currently process on our AFSM 100 automated flat processing equipment.
    For consistency, we propose to increase the maximum size for 
carrier route flats so that the same maximum size applies to all flats, 
regardless of the rate paid. We will expand the current requirements 
for automation flats to all flat-size pieces to be rectangular and 
uniformly thick. We also provide a new, relaxed definition of 
``uniformly thick'' to better define the types of pieces we can process 
on our automated flat processing equipment and handle efficiently at 
delivery.
    Our proposal includes a new Not Flat-Machinable classification for 
rigid flat-size pieces and pieces that are currently claiming 
automation flat rates based on

[[Page 2096]]

UFSM 1000 standards. We propose no bundling for most Not Flat-
Machinable pieces and to have mailers prepare pieces in 5-digit/scheme, 
3-digit, ADC/bulk mail center (BMC), and mixed ADC/BMC containers. To 
simplify the preparation of Not Flat-Machinable pieces, we propose to 
make the 5-digit/scheme level optional. To give mailers access to 
deeper discounts, we propose 5-digit rates for 5-digit bundles prepared 
on pallets. In addition, we propose a DDU entry discount for Not Flat-
Machinable pieces sorted to 5-digit destinations when drop shipped 
directly to the DDU. There will be no minimum quantity for Not Flat-
Machinable pieces drop shipped to DDUs. Barcodes help processing on 
APPS, and we will give mailers the option of applying either a 5-digit 
UCC/EAN 128 or a POSTNET barcode on pieces under 6 ounces. Unless 
prepared in 5-digit/scheme containers, we will apply a surcharge to all 
Not Flat-Machinable pieces that are not barcoded.
    We propose to eliminate the residual shape surcharge for Standard 
Mail parcels and replace it with a separate rate structure. We will no 
longer offer a $0.03 machinable barcode discount. Instead, parcel 
prices will include a requirement for barcodes. Unless prepared in 5-
digit containers, we will apply a surcharge to all parcels that are not 
barcoded.
    We will remove the bundling requirement for all Standard Mail 
irregular parcels except ECR pieces. We propose to reduce the required 
minimum quantity of irregular parcels in sacks to 10 pounds per sack.
    We propose four new options for mailers to combine parcels. We 
propose commingling Standard Mail and Package Services machinable 
parcels, irregular parcels, and the new Not Flat-Machinable pieces in 
5-digit containers. We would allow mailers to combine Not Flat-
Machinable pieces under 6 ounces with irregular parcels in 3-digit, 
ADC, and mixed ADC containers. We would allow mailers to combine Not 
Flat-Machinable pieces weighing 6 ounces or more with machinable 
parcels in BMC/ASF and mixed BMC containers. We would also allow 
mailers to combine Standard Mail parcels, NFMs, machinable Parcel 
Select, and BPM parcels in 3-digit containers to certain ZIP Codes when 
entered at designated SCFs.
    The DDU discount currently is available only for pieces sorted to 
carrier routes. To give mailers access to deeper destination entry 
discounts, we will allow a DDU entry discount for parcels sorted to 5-
digit destinations when drop shipped directly to the DDU. There will be 
no minimum for the quantity of parcels drop shipped to a DDU.
    Customized MarketMail is a type of Standard Mail that allows 
business mailers to send distinctive, unusually shaped advertising 
pieces to their customers. Mailers will still have the option to use 
Customized MarketMail. Rates will equal the nonentry 5-digit rate for 
Not Flat-Machinable pieces.
    Mailers still will have the option of using detached address 
labels. To help cover our handling costs, we propose a new $0.015 
charge for detached address labels with ECR saturation flat-size 
pieces. Mailers who prepare mail with addresses on their mailpieces 
will avoid the new charge.

Summary of Periodicals

    Our proposed Periodicals prices encourage mailers to use pallets 
rather than sacks. We also enhance drop ship incentives to encourage 
mailers, including publishers of high-editorial-content publications, 
to enter Outside-County mail closer to its destination. Our proposal 
will also make the experimental copalletization standards a permanent 
option for mailers.
    Our pricing proposal includes a new $0.85 Outside-County container 
rate. We will apply the container rate to any pallet, sack, or tray of 
Outside-County Periodicals mail, except for mixed containers of In-
County and Outside-County pieces in carrier route, 5-digit carrier 
routes, and 5-digit[bs]scheme containers. We also 
propose new drop ship prices based on nonadvertising pounds, in 
addition to increased per-piece drop ship discounts.
    To encourage fuller letter trays, we propose to change our 
definition of a ``full letter tray'' to one in which the pieces fill 
the length of the tray between 85 percent and 100 percent full.

Summary of Package Services

    Package Services includes Parcel Post, Bound Printed Matter, Media 
Mail, and Library Mail. Our proposal simplifies Package Services 
offerings and encourages more efficient handling of parcels.
Parcel Post
    Currently, we charge parcels weighing less than 15 pounds and 
measuring more than 84 inches in combined length and girth the 15-pound 
rates (``balloon rate''). Under our proposal, we will charge parcels 
weighing less than 20 pounds and measuring more than 84 inches in 
combined length and girth the 20-pound rates.
    We will incorporate the current $0.03 barcode discount available 
for machinable Parcel Select destination bulk mail center (DBMC) entry 
mail into the price and we will require a barcode. Nonbarcoded 
machinable pieces could claim only the applicable Intra-BMC/ASF rate.
    We do not propose any changes to mail preparation standards for 
Parcel Select.
Bound Printed Matter
    We will rename single-piece Bound Printed Matter ``nonpresorted'' 
Bound Printed Matter, and we will eliminate it as a retail option. 
Customers can still use PC Postage or apply meter postage or adhesive 
stamps to nonpresorted BPM and deposit these pieces in a collection box 
or give them to their letter carrier. We will increase the $0.08 
discount from the parcel price for flat-size pieces to $0.16. We will 
not change the $0.03 per piece POSTNET barcode discount for flat-size 
mail and the $0.03 per piece parcel barcode discount for machinable 
parcels.
    To reduce sacks, we propose to require 5-digit/scheme and 3-digit/
scheme bundles and 5-digit/scheme sacks for presorted flat-size Bound 
Printed Matter. We propose to require 5-digit/scheme bundles for 
irregular parcels that weigh less than 10 pounds each and 5-digit/
scheme sacks for machinable and irregular parcels.
Media Mail and Library Mail
    To reduce sacks, we propose to require 5-digit/scheme and 3-digit/
scheme bundles and 5-digit/scheme sacks for presorted flat-size Media 
Mail and Library Mail. We propose to require 5-digit/scheme bundles for 
irregular parcels and 5-digit/scheme sacks for machinable and irregular 
parcels.

Summary of Priority Mail

    We continue to offer convenience in Priority Mail. The USPS-
produced flat-rate envelope still will pay the 1-pound price, $4.65 
under the proposal, regardless of weight or destination. USPS-produced 
flat-rate boxes will pay $8.80 under the proposal, regardless of weight 
or destination, and will become a permanent offering. Prices for all 
Priority Mail pieces weighing over 25 pounds will decrease for all 
zones, many by as much as 20 percent.
    Currently, we charge Priority Mail pieces weighing less than 15 
pounds and measuring more than 84 inches in combined length and girth 
the 15-pound rates (``balloon rate''). Under the proposal, we will 
charge Priority Mail pieces weighing less than 20 pounds and measuring 
more than 84 inches in

[[Page 2097]]

combined length and girth the 20-pound rates. We will apply the new 
balloon rate only to pieces addressed for local delivery and to zones 
1-4.
    Priority Mail pieces that exceed 1 cubic foot and are addressed to 
zones 5-8 could be subject to a new dimensional-weight price. We will 
rate postage for these pieces at the greater of their actual weight or 
their dimensional weight. In general, if a piece is relatively light 
for its size, it may be subject to a dimensional-weight price. We will 
calculate dimensional weight using one of two formulas, one for 
rectangular and one for nonrectangular pieces.

Summary of Express Mail

    Express Mail pieces often contain material that ranges from a half 
pound to 2 pounds. Currently, these pieces pay the 2-pound price. To 
keep Express Mail a viable alternative for mailers, the pricing 
proposal adds a new 1-pound price.
    The flat-rate envelope will continue to pay the half-pound price, 
regardless of weight.

Summary of Extra Services

    Our proposal keeps insured mail reliable, easy, and affordable. All 
insured pieces will have a barcoded label and receive a delivery scan. 
We will not require a signature at delivery for insured items with an 
indemnity of $200 or less.
    We propose new prices for Bulk Parcel Return Service, Business 
Reply Mail, Certificate of Mailing, Certified Mail, Collect on 
Delivery, Delivery Confirmation, Bulk Insurance, Express Mail 
Insurance, Merchandise Return Service, Money Orders, Parcel Airlift, 
Parcel Return Service, Registered Mail, Restricted Delivery, Return 
Receipt, Return Receipt for Merchandise, Signature Confirmation, and 
Special Handling.

Summary of Other Services

    Our proposal seeks to modernize our services, improve address 
quality, and reduce undeliverable-as-addressed mail.
    We will decrease the price for Address Change Service electronic 
option for First-Class Mail from $0.21 to $0.06. We will increase the 
price for all other classes of mail from $0.21 to $0.25. We will 
decrease the price for Manual Address Correction Service for all 
classes of mail from $0.75 to $0.50.
    A new automated option for Address Change Service will allow First-
Class Mail letters to receive the first two notices at no charge, then 
each additional notice for $0.05 each. Standard Mail letters will 
receive the first two notices at $0.02, then each additional notice for 
$0.15 each. This new option will require mailers to use the new 4-State 
Customer Barcode.
    We propose to change the fee structure for Confirm service from the 
Silver, Gold, and Platinum tiers to a unit-based structure. Customers 
will pay standardized annual fees and purchase blocks of units that are 
redeemed for Confirm scans. Customers can redeem units at the rate of 
one unit per First-Class Mail scan or five units per scan for any other 
class of mail. The cost per block of units declines as volume 
thresholds are reached.
    We no longer offer on-site meter services. We eliminate the fees 
associated with on-site meter service, meter resetting, examination, 
and checking meters in and out of service.
    Individual post office box holders at different locations may 
experience varying price changes as we continue to align prices with 
our costs for each location. Our proposal will also realign the Caller 
Service fees.
    We propose price changes for Address Sequencing Service, Mailing 
List Service, Permit Imprint fees, Pickup on Demand service, Premium 
Forwarding Service, Shipper Paid Forwarding, Stamped Cards, Stamped 
Envelopes, and all annual mailing fees.
    We provide the updated DMM standards, and how they are applied for 
each type of mail, below.
    Although we are exempt from the notice and comment requirements of 
the Administrative Procedure Act (5 U.S.C 410 (a)), we invite your 
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); 39 U.S.C. 101, 401, 403, 404, 414, 
3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.

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

100 Retail Mail: Letters, Cards, Flats, and Parcels

101 Physical Standards

1.0 Physical Standards for Letters

1.1 Dimensional Standards for Letters

    Letter-size mail is:
* * * * *
    [Renumber item c as item d. Insert new item c as follows:]
    c. Not more than 3.5 ounces.
* * * * *

1.2 Nonmachinable Criteria

    A letter-size piece is nonmachinable if it has one or more of the 
following characteristics (see 601.1.4 to determine the length, height, 
top, and bottom of a mailpiece):
    [Renumber items a through i as items b through j. Insert new item a 
as follows:]
    a. Is over 3.5 ounces.
* * * * *

2.0 Physical Standards for Flats

2.1 General Definition

    Flat-size mail is:
* * * * *
    [Renumber item c as new item f. Insert new items c through e as 
follows:]
    c. Flexible (see 2.2).
    d. Rectangular.
    e. Uniformly thick (see 2.3).
* * * * *
    [Insert new 2.2 through 2.4 as follows:]

2.2 Minimum Flexibility Criteria for Rigid Pieces

    Flat-size pieces must be flexible. Test flexibility as follows:
    a. For pieces 10 inches or longer:
    1. Place the piece with the length perpendicular to the edge of a 
flat surface and extend the piece 5 inches off the surface.
    2. Press down on the piece at a point 1 inch from the outer edge, 
in the center of the piece's width, exerting steady pressure.
    3. Turn the piece around and repeat steps 1 and 2. The piece is 
flexible if both ends can bend at least 2 inches without being damaged.
    b. For pieces less than 10 inches long:
    1. Place the piece with the length perpendicular to the edge of a 
flat surface and extend the piece one-half of its length off the 
surface.
    2. Press down on the piece at a point 1 inch from the outer edge, 
in the center of the piece's width, exerting steady pressure.
    3. Turn the piece around and repeat steps 1 and 2. The piece is 
flexible if both ends can bend at least 1 inch without being damaged.

[[Page 2098]]

2.3 Uniform Thickness

    Flat-size mailpieces must be uniformly thick so that any bumps, 
protrusions, or other irregularities do not cause more than \1/4\-inch 
variance in thickness. (Do not consider the selvage when measuring 
variance in thickness.) If the contents are significantly smaller than 
the envelope, wrapper, or sleeve, mailers must secure those contents to 
prevent shifting of more than 2 inches within the mailpiece.

2.4 Flat-Size Pieces Not Eligible for Flat-Size Rates

    Mailpieces that do not meet the standards in 2.1 through 2.3 are 
not eligible for flat-size rates and must pay applicable parcel rates.
* * * * *

5.0 Additional Physical Standards for Priority Mail

* * * * *

5.2 Two or More Packages

    [Revise 5.2 as follows:]
    With the exception of USPS-produced Priority Mail flat-rate 
envelopes or boxes, two or more packages may be mailed as a single 
parcel if they are about the same size or shape, are securely wrapped 
or fastened together, and do not exceed the weight or size limits.
* * * * *

6.0 Additional Physical Standards for First-Class Mail

* * * * *

6.4 Nonmachinable Pieces

6.4.1 Nonmachinable Letters
    [Revise 6.4.1 as follows:]
    Letter-size pieces with one or more of the nonmachinable 
characteristics in 1.2 are subject to the applicable postage for a 
flat-size piece, based on weight.
    [Revise heading and text of 6.4.2 as follows:]
6.4.2 Nonmachinable Flats
    Flat-size pieces that do not meet the standards in 2.0 are subject 
to the applicable postage for a parcel-size piece, based on weight.
* * * * *
    [Delete 8.0, Additional Physical Standards for Bound Printed 
Matter. Renumber 9.0 and 10.0 as new 8.0 and 9.0.]
* * * * *

102 Elements on the Face of a Mailpiece

* * * * *

3.0 Placement and Content of Mail Markings

* * * * *
    [Revise heading of 3.3 as follows:]

3.3 Mail Markings

    [Revise first sentence of 3.3 as follows:]
    Mailers must print the basic required Package Services subclass 
marking--``Parcel Post'' or ``PP,'' ``Media Mail,'' or ``Library 
Mail''--on each piece claimed at the respective rate. * * *
* * * * *

110 Retail Mail: Express Mail

113 Rates and Eligibility

1.0 Express Mail Rates and Fees

* * * * *

1.2 Express Mail Rate Application

    [Revise 1.2 as follows:]
    Except under 1.4, Flat-Rate Envelope, Express Mail items are 
charged the 0.5-pound rate for items up to 0.5 pound. Items over 0.5 
pound are rounded up to the next whole pound. For example, if a piece 
weighs 0.25 pound, the weight (postage) increment is 0.5 pound; if a 
piece weighs 0.75 pound, the weight (postage) increment is 1 pound; if 
a piece weighs 1.2 pounds, the weight (postage) increment is 2 pounds.
* * * * *

120 Retail Mail: Priority Mail

123 Rates and Eligibility

1.0 Priority Mail Rates and Fees

* * * * *

1.2 Priority Mail Rate Application

    [Revise 1.2 as follows:]
    Except under 1.3, 1.4, and 1.5, Priority Mail rates are charged per 
pound; any fraction of a pound is rounded up to the next 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 on 
weight only; rates for pieces weighing more than 1 pound are based on 
weight and zone. Other charges may apply. See Exhibit 1.3, Priority 
Mail Rates.

1.3 Minimum Rate for Parcels to Zones 1-4

    [Revise 1.3 as follows:]
    Parcels addressed for delivery to Zones 1-4 (including Local) that 
weigh less than 20 pounds but measure more than 84 inches (but not more 
than 108 inches) in combined length and girth are charged the 
applicable zone rate for a 20-pound parcel (balloon rate).
    [Delete 1.6 and 1.7; renumber 1.4 and 1.5 as new 1.6 and 1.7. 
Insert new 1.4 and 1.5 as follows:]

1.4 Dimensional Weight Rate for Low-Density Parcels to Zones 5-8

    Postage for parcels addressed for delivery to Zones 5-8 and 
exceeding 1 cubic foot (1,728 cubic inches) is based on the actual 
weight or the dimensional weight (as calculated in 1.4.1 or 1.4.2), 
whichever is greater.
1.4.1 Determining Dimensional Weight for Rectangular Parcels
    Follow these steps to determine the dimensional weight for a 
rectangular parcel:
    a. Measure the length, width, and height in inches. Round off (see 
604.8.0) each measurement to the nearest whole number.
    b. Multiply the length by the width by the height.
    c. If the result exceeds 1,728 cubic inches, divide the result by 
194 and round up (see 604.8.0) to the next whole number to determine 
the dimensional weight in pounds.
1.4.2 Determining Dimensional Weight for Nonrectangular Parcels
    Follow these steps to determine the dimensional weight for a 
nonrectangular parcel:
    a. Measure the length, width, and height in inches at their extreme 
dimensions. Round off (see 604.8.0) each measurement to the nearest 
whole number.
    b. Multiply the length by the width by the height.
    c. Multiply the result by an adjustment factor of 0.785.
    d. If the final result exceeds 1,728 cubic inches, divide the 
result by 194 and round up (see 604.8.0) to the next whole number to 
determine the dimensional weight in pounds.
    e. If the dimensional weight exceeds 70 pounds, the parcel pays the 
70-pound rate.

1.5 Flat-Rate Boxes and Envelopes

    Any amount of material may be mailed in a USPS-produced Priority 
Mail flat-rate box or flat-rate envelope. When sealing a flat-rate box 
or flat-rate envelope, the container flaps must be able to close within 
the normal folds. Tape may be applied to the flaps and seams to 
reinforce the container, provided the design of the container is not 
enlarged by opening the sides and the container is not reconstructed in 
any way.

[[Page 2099]]

1.5.1 Flat-Rate Boxes--Rate and Eligibility
    Each USPS-produced Priority Mail flat-rate box is charged $8.80, 
regardless of the actual weight of the piece or its destination. Only 
USPS-produced flat-rate boxes are eligible for the flat-rate box rate.
1.5.2 Flat-Rate Envelopes--Rate and Eligibility
    Each USPS-produced Priority Mail flat-rate envelope is charged 
$4.65, regardless of the actual weight of the piece or its destination. 
Only USPS-produced flat-rate envelopes are eligible for the flat-rate 
envelope rate.
* * * * *

130 Retail Mail: First-Class Mail

133 Rates and Eligibility

1.0 First-Class Mail Rates and Fees

1.1 First-Class Mail Single-Piece Rate Application

    The single-piece rates for First-Class Mail are applied as follows:
* * * * *
    [Revise the weight limit in item b as follows:]
    b. The letter rate applies to letter-size pieces that meet the 
standards in 101.1.1 and weigh 3.5 ounces or less, and that are not 
eligible for and claimed at the card rate.
    [Insert new items c and d as follows:]
    c. The flat rate applies to flat-size pieces that meet the 
standards in 101.2.1 and letter-size pieces with one or more of the 
nonmachinable characteristics in 101.1.2.
    d. The parcel rate applies to parcel-size pieces under 101.3.0 and 
to flat-size pieces that do not meet the standards in 101.2.0.
* * * * *
    [Delete current 1.9, Nonmachinable Surcharge, and 1.10, 
Applicability of Nonmachinable Surcharge. Renumber current 1.8 as new 
1.9 and revise to remove references to nonmachinable surcharge in the 
first three sentences as follows:]

1.9 Keys and Identification Devices

    Keys and identification devices (such as identification cards and 
uncovered identification tags) that weigh 13 ounces or less are 
returned at the applicable single-piece First-Class Mail parcel rate 
plus the fee. Keys and identification devices that weigh more than 13 
ounces but not more than 1 pound are returned at the 1-pound Priority 
Mail rate plus the fee. Keys and identification devices weighing more 
than 1 pound but not more than 2 pounds are mailed at the 2-pound 
Priority Mail rate for zone 4 plus the fee. * * *
* * * * *
    [Renumber current 1.7, Rates for Keys and Identification Devices, 
as new 1.10.]
* * * * *
    [Restructure the rate tables in 1.4 through 1.6 into new 1.4 
through 1.8 for separate letter, flat, and parcel rates.]
* * * * *

2.0 Basic Eligibility Standards for First-Class Mail

2.1 Description of Service

* * * * *
2.1.2 Rate Options
    [Revise 2.1.2 to add shape-based reference as follows:]
    First-Class Mail offers shape-based single-piece rates in 1.0.
* * * * *

150 Retail Mail: Parcel Post

153 Rates and Eligibility

1.0 Parcel Post Rates and Fees

1.1 Rate Eligibility

    There are two Parcel Post retail rate categories: Intra-BMC and 
Inter-BMC. Intra-BMC and Inter-BMC Parcel Post rates are calculated 
based on the zone to which the parcel is addressed and the weight of 
the parcel. Requirements for Parcel Post rates and discounts are as 
follows:
* * * * *
    [Revise item d as follows:]
    d. Parcels that weigh less than 20 pounds but measure more than 84 
inches (but not more than 108 inches) in combined length and girth are 
charged the applicable rate for a 20-pound parcel (balloon rate).
* * * * *

1.7 Inter-BMC/ASF Machinable Parcel Post

    [Revise 1.7 as follows:]
    For barcode discount, deduct $0.03 per parcel (50-piece minimum). 
Parcels that weigh less than 20 pounds but measure more than 84 inches 
(but not more than 108 inches) in combined length and girth are charged 
the applicable rate for a 20-pound parcel (balloon rate).

1.8 Inter-BMC/ASF Nonmachinable Parcel Post

    [Revise 1.8 as follows:]
    Rates include the $3.62 nonmachinable surcharge. Regardless of 
weight, a parcel with any of the characteristics in 101.7.2, 
Nonmachinable Parcel Post Standards, must pay the rate listed in 
Exhibit 1.9. Parcels that weigh less than 20 pounds but measure more 
than 84 inches (but not more than 108 inches) in combined length and 
girth are charged the applicable rate for a 20-pound parcel (balloon 
rate). The nonmachinable surcharge does not apply to parcels mailed at 
oversized rates or parcels sent with special handling.
* * * * *

1.10 Local and Intra-BMC/ASF Machinable Parcel Post

    [Revise 1.10 as follows:]
    Rates for parcels that originate and destinate in the same BMC 
service area are in Exhibit 1.12, Local and Intra-BMC/ASF Machinable 
and Nonmachinable Parcel Post Rates. For barcode discount, deduct $0.03 
per parcel (50-piece minimum). Parcels that weigh less than 20 pounds 
but measure more than 84 inches (but not more than 108 inches) in 
combined length and girth are charged the applicable rate for a 20-
pound parcel (balloon rate). Regardless of weight, a parcel with any of 
the characteristics in 101.7.2 must pay the rate for a nonmachinable 
parcel in 1.11.

1.11 Local and Intra-BMC/ASF Nonmachinable Parcel Post

    [Revise 1.11 as follows:]
    Rates include the $1.85 nonmachinable surcharge. Regardless of 
weight, a parcel with any of the characteristics in 101.7.2, 
Nonmachinable Parcel Post Standards, must pay the rates in Exhibit 
1.12. Parcels that weigh less than 20 pounds but measure more than 84 
inches (but not more than 108 inches) in combined length and girth are 
charged the applicable rate for a 20-pound parcel (balloon rate). The 
nonmachinable surcharge does not apply to parcels mailed at oversized 
rates or parcels sent with special handling.
* * * * *
    [Delete Chapter 160, Retail Mail: Bound Printed Matter, in its 
entirety. These standards are incorporated into chapters 360 and 460.]
* * * * *

200 Discount Mail: Letters and Cards

201 Physical Standards

1.0 Physical Standards for Machinable Letters and Cards

1.1 Physical Standards for Machinable Letters

* * * * *

[[Page 2100]]

1.1.2 Weight Standards for Machinable Letters
    [Revise 1.1.2 to change the maximum weight for First-Class Mail 
machinable letters to 3.5 ounces as follows:]
    The maximum weight for Presorted First-Class Mail machinable 
letters is 3.5 ounces (0.2188 pound). The maximum weight for Standard 
Mail machinable letters is 3.3 ounces (0.2063 pound).
* * * * *

2.0 Physical Standards for Nonmachinable Letters

2.1 Criteria for Nonmachinable Letters

    A letter-size piece is nonmachinable if it has one or more of the 
following characteristics (see 601.1.4 to determine the length, height, 
top, and bottom of a mailpiece):
    [Renumber items a through i as items b through j. Insert new item a 
as follows:] a. Is over 3.5 ounces.
* * * * *
    [Delete 2.2.2, Nonmachinable Surcharge--Letter-Size Pieces. 
Renumber 2.2.1 as new 2.2 and revise as follows:]

2.2 Additional Criteria for First-Class Mail Nonmachinable Letters

    Letter-size pieces (except pieces eligible for and mailed at card 
rates) with one or more of the nonmachinable characteristics in 2.1 are 
subject to the rates for flat-size pieces (see 333.1.0).
    [Delete 2.3.2, Nonmachinable Surcharge Not Applied. Renumber 2.3.1 
as new 2.3 and revise as follows:]

2.3 Additional Criteria for Standard Mail Nonmachinable Letters

    The nonmachinable rates in 243.1.5 apply to Standard Mail letter-
size pieces that weigh 3.3 ounces or less and have one or more of the 
nonmachinable characteristics in 2.1.

3.0 Physical Standards for Automation Letters and Cards

* * * * *

3.3 Weight Standards for First-Class Mail Automation Letters and Cards

    [Revise 3.3 to change the weight limit as follows:]
    Maximum weight for First-Class Mail automation letters is 3.5 
ounces (0.2188 pound). See 3.13.4 for pieces heavier than 3 ounces.

3.4 Weight Standards for Standard Mail Automation Letters

    [Revise 3.4 to remove the reference to automation carrier route 
mail as follows:]
    Maximum weight for Standard Mail mailed at automation and Enhanced 
Carrier Route high-density and saturation rates is 3.5 ounces (0.2188 
pound). See 3.13.4 for pieces heavier than 3 ounces.
* * * * *

202 Elements on the Face of a Mailpiece

* * * * *

3.0 Placement and Content of Mail Markings

* * * * *

3.3 Placement of Mail Markings

* * * * *
    [Revise item b, item b3, and item c to delete ``AUTOCR.'']

3.4 Exceptions to Markings

    Exceptions are as follows:
    [Revise item a to remove references to carrier route mail as 
follows:]
    a. Automation Letters. First-Class Mail and Standard Mail letters 
do not require an ``AUTO'' marking if they bear a DPBC or a 4-State 
Customer Barcode with a delivery point routing code in the address 
block or on an insert visible through a window. First-Class Mail 
letters not marked ``AUTO'' must bear both the ``Presorted'' or 
``PRSRT'' and ``First-Class'' markings. Standard Mail letters not 
marked ``AUTO'' must bear the appropriate basic marking in 3.3a.
    [Revise item b as follows:]
    b. Manifest Mailings. The basic marking must appear in the postage 
area on each piece as required in 3.3a. The two-letter rate category 
code required in the keyline on manifest mailing pieces prepared under 
705.2.0, Manifest Mailing System, meets the requirement for other rate 
markings.
* * * * *

230 Discount Letters and Cards: First-Class Mail

233 Rates and Eligibility

1.0 Rates and Fees for First-Class Mail

1.1 Rate Application

    [Revise 1.1 to add ``letter'' as follows:]
    Postage is based on the letter rate that applies to the weight of 
each addressed piece.

1.2 Rate Computation for First-Class Mail Letters

    [Revise the first sentence in 1.2 to add ``letter'' as follows:]
    First-Class Mail letter rates are charged per ounce or fraction 
thereof; any fraction of an ounce is considered a whole ounce. For 
example, if a piece weighs 1.2 ounces, the weight (postage) increment 
is 2 ounces. The minimum postage per addressed piece is that for a 
piece weighing 1 ounce.
* * * * *
    [Delete 1.13, Carrier Route Automation Cards; 1.14, Carrier Route 
Automation Letters; and 1.16, Nonmachinable Surcharge. Renumber 1.15, 
Summary Presorted, Automation, and Carrier Route Rates for Cards and 
Letters, as new 1.13. Renumber 1.17 through 1.19 as new 1.14 through 
1.16.]
* * * * *

3.0 Basic Standards for First-Class Mail Letters

3.1 Description of Service

* * * * *
3.1.2 Rate Options
    [Revise 3.1.2 as follows:]
    First-Class Mail letters offer shape-based single-piece rates in 
133.1.0 and discounted rates in 1.0 for presorted mailings of 500 or 
more pieces that weigh 3.5 ounces or less.
* * * * *

3.3 Additional Basic Standards for First-Class Mail

    [Revise introductory text in 3.3 as follows:]
    All pieces of presorted First-Class Mail letters must:
* * * * *
    [Revise the weight in item b as follows:]
    b. Weigh 3.5 ounces or less.
* * * * *

4.0 Additional Eligibility Standards for Nonautomation First-Class Mail 
Letters

* * * * *
    [Revise heading of 4.3 as follows:]

4.3 Letters With Nonmachinable Characteristics

    [Revise 4.3 to delete nonmachinable surcharge as follows:]
    Letters with one or more of the nonmachinable characteristics in 
201.2.1 must pay the flat-size rate. In addition to the standards in 
3.0, Basic Standards for First-Class Mail Letters, all pieces in a 
First-Class Mail Presorted nonmachinable letter-size mailing must be 
marked, sorted, and documented according to 235.5.3, Nonmachinable 
Preparation.
    [Revise heading of 5.0 to delete ``Carrier Route'' as follows:]

5.0 Additional Eligibility Standards for Automation Rate First-Class 
Mail Letters

    [Revise heading of 5.1 as follows:]

[[Page 2101]]

5.1 Basic Standards for Automation First-Class Mail Letters

    All pieces in a First-Class Mail automation rate mailing must:
* * * * *
    [Delete item d2. Move text in item d1 into item d as follows.]
    d. Bear a delivery address that includes the correct ZIP Code, 
ZIP+4 code, or numeric equivalent to the delivery point barcode (DPBC) 
and that meets the address matching and coding standards in 5.6, 
Address Standards for Barcoded Pieces, and 708.3.0, Coding Accuracy 
Support System (CASS).
* * * * *
    [Delete 5.2, Carrier Route Accuracy, and renumber 5.3 and 5.4 as 
new 5.2 and 5.3.]
* * * * *

5.2 Maximum Weight for Automation Letters

    [Revise renumbered 5.2 to change maximum weight from 3.3 to 3.5 
ounces as follows:]
    Maximum weight for First-Class Mail automation letters is 3.5 
ounces (0.2188 pound) (see 201.3.13.4, Heavy Letter Mail, for pieces 
heavier than 3 ounces).

5.3 Rate Application--Automation Cards and Letters

    Automation rates apply to each piece that is sorted under 235.6.0 
into the corresponding qualifying groups:
    [Delete item a. Renumber items b through e as new items a through d 
and revise as follows:]
    a. Groups of 150 or more pieces in 5-digit/scheme trays qualify for 
the 5-digit rate. Preparation to qualify for the 5-digit rate is 
optional. Pieces placed in full 3-digit/scheme trays in lieu of 5-
digit/scheme overflow trays under 235.6.6 are eligible for the 5-digit 
rates.
    b. Groups of 150 or more pieces in 3-digit/scheme trays qualify for 
the 3-digit rate. Pieces placed in full AADC trays in lieu of 3-digit/
scheme overflow trays under 235.6.6 are eligible for the 3-digit rates.
    c. Groups of fewer than 150 pieces in origin 3-digit/scheme trays 
and all pieces in AADC trays qualify for the AADC rate. Pieces placed 
in mixed AADC trays in lieu of AADC overflow trays under 235.6.6 are 
eligible for the AADC rates.
    d. Pieces in mixed AADC trays qualify for the mixed AADC rate, 
except for pieces prepared under 5.3c.
* * * * *
    [Delete 5.5 and renumber 5.6 and 5.7 as new 5.4 and 5.5.]
* * * * *
    [Delete renumbered 5.4.7, Rural and Highway Contract Routes. 
Renumber 5.4.8 as new 5.4.7.]
* * * * *

234 Postage Payment and Documentation

* * * * *

2.0 Postage Payment for Presorted Letters

* * * * *

2.2 Affixed Postage for Presorted First-Class Mail

    Unless permitted by other standards or by Business Mailer Support, 
USPS Headquarters, when precanceled postage or meter stamps are used as 
the postage payment method, only one payment method may be used in a 
mailing and each piece must bear postage under one of these conditions:
* * * * *
    [Revise item b to delete the reference to the nonmachinable 
surcharge as follows:]
    b. A precanceled stamp or the full postage at the lowest First-
Class Mail 1-ounce rate applicable to the mailing job, and full postage 
on metered pieces for any additional ounces or extra services.
* * * * *

235 Mail Preparation

1.0 General Definition of Terms

* * * * *

1.2 Definitions of Mailings

    Mailings are defined as:
    [Revise the second sentence in item a to remove ``automation 
carrier route'' as follows:]
    a. * * * Generally, automation and nonautomation letters must be 
prepared as separate mailings.* * *
* * * * *

1.3 Terms for Presort Levels

    Terms used for presort levels are defined as follows:
    Delete item a and renumber items b through k as new items a through 
j.]
* * * * *

1.4 Preparation Definitions and Instructions

    For purposes of preparing mail:
* * * * *
    [Revise item b as follows:]
    b. A full letter tray is one in which faced, upright pieces fill 
the length of the tray between 85% and 100% full.
* * * * *
    [Revise item e to delete the last sentence.]
* * * * *

2.0 Bundles

* * * * *

2.3 Preparing Bundles

    Cards and letter-size pieces are subject to these bundling 
standards:
    [Revise item a as follows:]
    a. The maximum thickness for bundles is 6 inches.
* * * * *
    [Delete item d and renumber items e and f as new items d and e.]
* * * * *

2.8 Labeling Bundles

    [Revise the first sentence in the introductory text to delete the 
reference to carrier route bundles as follows:]
    Unless excepted by standard, the presort level of each bundle must 
be identified either with an optional endorsement line under 708.7.0 or 
with a barcoded pressure-sensitive bundle label. On letter-size mail 
(including card-size pieces), the bundle label must be placed in the 
lower left corner of the address side of the top piece in the bundle. 
Bundle labels must not be obscured by banding or shrinkwrap. The 
following colors and presort characters apply to bundle labels:
* * * * *
    [Delete 2.9, Use of Carrier Route Information Lines, and 2.10, 
Facing Slips--All Carrier Route Mail.]
* * * * *

4.0 Tray Labels

* * * * *

4.4 Line 2 (Content Line)

    Line 2 (content line) must meet these standards:
* * * * *
    b. Codes: The codes shown below must be used as appropriate on Line 
2 of tray labels.
    [Revise the table in item 4.4b to delete the entries for ``Carrier 
Route,'' ``Carrier Routes,'' ``General Delivery Unit,'' ``Highway 
Contract Route,'' ``Post Office Box Section,'' and ``Rural Route.'']
* * * * *
* * * * *

5.0 Preparing Nonautomation Letters

* * * * *
    [Delete 5.2, Manual Only Option, and renumber 5.3 and 5.4 as new 
5.2 and 5.3.]

5.2 Machinable Preparation

* * * * *
5.2.2 Traying and Labeling
    [Delete item a about labeling the 5-digit tray. Renumber items b 
through d

[[Page 2102]]

as new items a through c. Revise renumbered item a to reflect the 3-
digit origin tray as follows:]
* * * * *
    a. Separate 3-digit origin trays required for each origin 3-digit 
ZIP Code; one less-than-full tray permitted for each origin ZIP Code; 
labeling:
    1. Line 1: L002, Column A.
    2. Line 2: ``FCM LTR 3D MACH.''
* * * * *

5.3 Nonmachinable Preparation

5.3.1 Nonmachinable Bundling
    [Delete the second-to-last sentence in the introductory text to 
remove the ``manual only'' option as follows:]
    Except as provided in 2.5, Exception to Bundle Preparation--Full 
Single-Sort-Level Trays, bundling is required before traying. A bundle 
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 except for mixed ADC bundles. Preparation sequence, bundle 
size, and labeling:
* * * * *

6.0 Preparing Automation Rate Letters

* * * * *

6.2 Mailings

    The requirements for mailings are as follows:
* * * * *
    [Revise item b as follows:]
    b. First-Class Mail. A single automation rate First-Class Mail 
mailing may include pieces prepared at 5-digit, 3-digit, AADC, and 
mixed AADC rates.
* * * * *

6.3 Marking

    [Revise 6.3 to delete the carrier route references as follows:]
    All automation rate pieces must be marked under 202.3.0, Placement 
and Content of Mail Markings, and 202.4.0, Endorsement Placement. 
Pieces claimed at an automation rate must bear the appropriate class 
marking and, except as provided in 202.3.0, Placement and Content of 
Mail Markings, and 202.4.0, Endorsement Placement, ``AUTO.'' Pieces not 
claimed at an automation rate must not bear ``AUTO'' unless single-
piece rate postage is affixed or the corrective single-piece rate 
marking (``SNGLP'' or ``Single-Piece'') is applied.

6.4 General Preparation

    [Revise 6.4 as follows:]
    Grouping, bundling, and labeling are not generally required or 
permitted, except bundling is required in any mailing consisting 
entirely of card-size pieces and for pieces in overflow and less-than-
full trays, and grouping is required under 6.6.
* * * * *
    [Delete 6.6 and 6.7. Renumber 6.8 through 6.10 as new 6.6 through 
6.8.]

6.6 Tray Preparation

    [Add introductory statement about overflow trays to 6.6 as 
follows:]
    Instead of preparing overflow trays with fewer than 150 pieces, 
mailers may include these pieces in the next tray level when a tray of 
150 or more pieces can be made. Mailers must note these trays on 
standardized documentation (see 708.1.2). Pieces that are placed in the 
next tray level must be grouped by destination and placed in the front 
of that tray. Mailers may use this option selectively for 3-digit and 
AADC ZIP Codes. This option does not apply to origin/entry 3-digit/
scheme trays. Preparation sequence, tray size, and Line 1 labeling:
    [Delete items a through c and renumber items d through g as new 
items a through d. Revise renumbered item a as follows:]
    a. 5-digit/scheme (see 1.4e): optional, but required for 5-digit 
rate (150-piece minimum); overflow allowed.
    1. For 5-digit scheme trays, use destination shown in the current 
USPS City State Product.
    2. For 5-digit trays, use city, state, and 5-digit ZIP Code 
destination on pieces (see 4.0 for overseas military mail).
* * * * *

6.7 Tray Line 2

    Line 2: ``FCM LTR'' and:
    [Delete items a through c and renumber items d through i as new 
items a through f as follows:]
    a. 5-digit scheme: ``BC 5D SCHEME.''
    b. 5-digit: ``5D BC.''
    c. 3-digit scheme: ``BC 3D SCHEME'' and, if applicable, as shown in 
L002, Column B, followed by the letter ``A,'' ``B,'' or ``C.''
    d. 3-digit: ``3D BC.''
    e. AADC: ``AADC BC.''
    f. Mixed AADC: ``BC WKG.''
* * * * *

240 Discount Letters and Cards: Standard Mail

243 Rates and Eligibility

1.0 Rates and Fees for Standard Mail

* * * * *

1.7 Computing Postage for Standard Mail

* * * * *
1.7.8 Discount for Heavy Automation Letters
    [Revise 1.7.8 to delete the second-to-last sentence, about 
automation ECR.]
* * * * *
    [Delete 1.7.10, Discount for Heavy ECR Basic Automation Letters.]
* * * * *

3.0 Basic Standards for Standard Mail Letters

* * * * *

3.2 Defining Characteristics

3.2.1 Mailpiece Weight
    [Revise 3.2.1 as follows:]
    All Standard Mail pieces must weigh less than 16 ounces. The 
following weight limits also apply to pieces mailed at Standard Mail 
letter rates:
    a. Pieces mailed at machinable and nonmachinable letter rates may 
weigh up to 3.3 ounces. Letter-size pieces weighing more than 3.3 
ounces and prepared as nonmachinable letters are mailable at Not Flat-
Machinable rates (see 443) and must be marked ``Not Flat-Machinable'' 
or ``NFM'' according to 402.2.0, unless they are barcoded and eligible 
to be mailed as automation flats under 301.3.0.
    b. Pieces mailed at automation letter rates or Enhanced Carrier 
Route high-density or saturation rates may weigh up to 3.5 ounces.
* * * * *

3.3 Additional Basic Standards for Standard Mail

    Each Standard Mail mailing is subject to these general standards:
* * * * *
    [Revise item e to add a reference to 3.8.1 as follows:]
    e. Each piece must bear the addressee's name and delivery address, 
including the correct ZIP Code or ZIP+4 code (see 3.8.1), unless an 
alternative addressing format is used subject to 602.3.0. Detached 
address labels may be used subject to 602.4.0.
* * * * *

4.0 Rate Eligibility for Standard Mail

* * * * *

4.2 Minimum Per Piece Rates

    The minimum per piece rates (the minimum postage that must be paid 
for each piece) apply as follows:
* * * * *
    b. In applying the minimum per piece rates, a mailpiece is 
categorized as a letter based on whether the piece meets the letter-
size standard in 201.1.1.1, without regard to placement of the address 
on the piece, except under these conditions:

[[Page 2103]]

    [Revise item b1 to delete ``(nonletter)'' as follows:]
    1. If the piece meets both the definition of a letter in 201.1.1.1 
and the definition of an automation flat in 301.3.0, the piece may be 
prepared and entered at an automation flat rate.
* * * * *
    [Revise item b3 by changing the base rate for Customized MarketMail 
as follows:]
    3. Pieces mailed as Customized MarketMail under 705.1.0 must pay 
the Regular or Nonprofit Standard Mail 5-digit nonentry rates for Not 
Flat-Machinable pieces and must not exceed 3.3 ounces.
    [Revise item c to delete the last sentence, about DDU rates.]
* * * * *
    [Delete 4.4, Residual Shape Surcharge.]
    [Replace ``presorted'' with ``nonautomation'' throughout 5.0.]

5.0 Additional Eligibility Standards for Nonautomation Standard Mail 
Letters

* * * * *
    [Revise heading and text of 5.4 to refer to new AADC and mixed AADC 
rates, instead of basic rates, as follows:]

5.4 Machinable Rate Application

    Machinable letters are subject only to AADC and mixed AADC rates.
5.4.1 AADC Rate
    The AADC rate applies to qualifying letter-size machinable pieces 
(see 201.1.0, Physical Standards for Machinable Letters and Cards) 
placed in origin/entry 3-digit/scheme trays, to quantities of 150 or 
more pieces prepared in AADC trays for a single AADC, and to pieces 
placed in mixed AADC trays in lieu of overflow AADC trays.
5.4.2 Mixed AADC Rate
    The mixed AADC rate applies to qualifying letter-size machinable 
pieces that the mailer prepares in mixed AADC trays, except for pieces 
placed in mixed AADC trays in lieu of overflow AADC trays (see 
245.5.3.2).
    [Delete 5.5 and 5.6. Insert new 5.5 as follows:]

5.5 Nonmachinable Rate Application

    Nonmachinable rates in 1.0 apply only to Standard Mail letter-size 
pieces (including card-size pieces) weighing 3.3 ounces or less that 
have one or more of the nonmachinable characteristics in 201.2.1. 
Nonmachinable letter-size pieces weighing more than 3.3 ounces are 
subject to Not Flat-Machinable rates (see 443), unless they are 
barcoded and eligible to be mailed as automation flats under 301.3.0.
5.5.1 5-Digit Rate
    The 5-digit rate applies to letter-size pieces subject to the 
nonmachinable rates (see 5.5) prepared in quantities of 150 or more 
pieces for a 5-digit ZIP Code and presented in 5-digit trays under 
245.5.0.
5.5.2 3-Digit Rate
    The 3-digit rate applies to letter-size pieces subject to the 
nonmachinable rates (see 5.5) prepared in quantities of 150 or more 
pieces for a 3-digit ZIP Code and presented in 3-digit trays under 
245.5.0.
5.5.3 ADC Rate
    The ADC rate applies to letter-size pieces subject to the 
nonmachinable rates (see 5.5) placed in 3-digit origin/entry trays and 
to pieces prepared in quantities of 150 or more for an ADC and 
presented in ADC trays under 245.5.0.
5.5.4 Mixed ADC Rate
    The mixed ADC rate applies to letter-size pieces that are subject 
to the nonmachinable rates and prepared in mixed ADC trays.
    [Revise heading of 6.0 as follows:]

6.0 Additional Eligibility Standards for Enhanced Carrier Route 
Standard Mail Letters

6.1 General Enhanced Carrier Route Standards

6.1.1 Optional Preparation
* * * * *
    [Revise 6.1.1 to delete the last sentence, about automation basic 
carrier route.]
6.1.2 Basic Eligibility Standards
    All pieces in an Enhanced Carrier Route or Nonprofit Enhanced 
Carrier Route Standard Mail mailing must:
* * * * *
    [Revise item b to delete the second sentence, about automation 
basic carrier route, as follows:]
    b. Be part of a single mailing of at least 200 pieces or 50 pounds 
of pieces of Enhanced Carrier Route Standard Mail. Regular and 
Nonprofit mailings must meet separate minimum volumes.
* * * * *
6.1.3 Maximum Weight for Enhanced Carrier Route Letters
    [Revise 6.1.3 to delete the reference to automation carrier route 
as follows:]
    Maximum weight for Standard Mail Enhanced Carrier Route high-
density and saturation pieces: 3.5 ounces (0.2188 pound) (see 
201.3.13.4, Heavy Letter Mail, for pieces heavier than 3 ounces).

6.2 Carrier Route Accuracy

6.2.1 Basic Standards
    The carrier route accuracy standard is a means of ensuring that the 
carrier route code correctly matches the delivery address information. 
For the purposes of this standard, address means a specific address 
associated with a specific carrier route code. Addresses used on pieces 
claiming certain rates under 6.2.2 that are subject to the carrier 
route accuracy standard must meet these requirements:
    [Revise item a to delete the last sentence, about ECR automation 
rate Standard Mail, as follows:]
    a. Each address and associated carrier route code used on the 
mailpieces in a mailing must be updated within 90 days before the 
mailing date with one of the USPS-approved methods in 3.8.2.
* * * * *

6.3 Basic Rate Enhanced Carrier Route Standards

* * * * *
6.3.2 Basic Rate Eligibility
    [Revise 6.3.2 to add the option for groups of 10 or more pieces as 
follows:]
    Basic rates apply to each piece sorted under 245.6.0 or 705.8.0 in 
a full carrier route tray, in a carrier route bundle of 10 or more 
pieces, or in groups of 10 or more pieces placed in a 5-digit carrier 
routes or a 3-digit carrier routes tray.
* * * * *
    [Delete 6.6, Automation ECR Standards.]
* * * * *

7.0 Eligibility Standards for Automation Rate Standard Mail

* * * * *

7.3 Rate Application for Automation Letters

    Automation rates apply to each piece that is sorted under 245.7.0, 
Preparing Automation Rate Letters, into the corresponding qualifying 
groups:
    [Revise items a through d to accommodate an option to overflow 
trays as follows:]
    a. Groups of 150 or more pieces in 5-digit/scheme trays qualify for 
the 5-digit rate. Preparation to qualify for that rate is optional. 
Pieces placed in full 3-digit/scheme trays under 245.7.5 in lieu of 5-
digit/scheme overflow trays are eligible for 5-digit rates (see 
245.7.5).
    b. Groups of 150 or more pieces in 3-digit/scheme trays qualify for 
the 3-digit rate. Pieces placed in full AADC trays

[[Page 2104]]

under 245.7.5 in lieu of 3-digit/scheme overflow trays are eligible for 
3-digit rates (see 245.7.5).
    c. Groups of fewer than 150 pieces in origin/entry 3-digit/scheme 
trays and groups of 150 or more pieces in AADC trays qualify for the 
AADC rate. Pieces placed in mixed AADC trays under 245.7.5 in lieu of 
AADC overflow trays also are eligible for AADC rates (see 245.7.5).
    d. Pieces in mixed AADC trays qualify for the mixed AADC rate, 
except for pieces prepared under 7.3c.
* * * * *

245 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.2 Definitions of Mailings

    Mailings are defined as:
* * * * *
    b. Standard Mail. Except as provided in 243.3.6, Residual Volume 
Requirement, the types of Standard Mail listed below may not be part of 
the same mailing.
    [Delete item b1, about automation ECR. Renumber items b2 through b8 
as new items b1 through b7.]
* * * * *

1.4 Preparation Definitions and Instructions

    For purposes of preparing mail:
* * * * *
    [Revise item b as follows:]
    b. A full letter tray is one in which faced, upright pieces fill 
the length of the tray between 85% and 100% full.
* * * * *
    [Revise the last sentence in item e as follows:]
    e. A 5-digit scheme sort for automation letters yields 5-digit 
scheme trays for those 5-digit ZIP Codes identified in the USPS City 
State Product and 5-digit trays for other areas. Mail prepared using 5-
digit scheme sort must be entered no later than 90 days after the 
release date of the City State Product used to obtain the scheme 
information (see 708.3.0, Coding Accuracy Support System (CASS)). The 
5-digit ZIP Codes in each scheme are treated as a single presort 
destination subject to a single minimum volume, with no further 
separation by 5-digit ZIP Code required. Trays prepared for a 5-digit 
scheme destination that contain pieces for only one of the schemed 5-
digit ZIP Codes are still considered 5-digit scheme sorted and are 
labeled accordingly. When standards require 5-digit/scheme sort, 
mailers must prepare all possible 5-digit scheme trays, then prepare 
all possible 5-digit trays.
    [Revise item f to add a new last sentence as follows:]
    f. A 3-digit scheme sort yields 3-digit scheme trays for those 3-
digit ZIP Code prefixes listed in L003 and 3-digit trays for other 
areas. The 3-digit ZIP Code prefixes in each scheme are treated as a 
single presort destination subject to a single minimum tray volume, 
with no further separation by 3-digit prefix required. Trays prepared 
for a 3-digit scheme destination that contain pieces for only one of 
the schemed 3-digit areas are still considered 3-digit scheme sorted 
and are labeled accordingly. When standards require 3-digit/scheme 
sort, mailers must prepare all possible 3-digit scheme trays, then 
prepare all possible 3-digit trays.
* * * * *

2.0 Bundles

* * * * *

2.3 Preparing Bundles

    Cards and letter-size pieces are subject to these bundling 
standards:
* * * * *
    [Revise item c to delete ``and for Standard Mail pieces where the 
mailer has requested `manual only' processing'' as follows:]
    c. Bundles must be prepared for mail in all less-than-full trays 
and for nonmachinable Presorted Standard Mail.
    [Revise item d to delete the second sentence as follows:]
    d. Except under 245.6.7, separator cards or tic marks may be used 
instead of bundling for letter-size pieces in full 5-digit carrier 
routes trays of Enhanced Carrier Route Standard Mail. The cards must be 
of paper or card stock, at least 0.25 inch higher than the highest 
pieces in the mailing, and in front of the corresponding groups of 
mail. The tic mark must be applied during the mailpiece production 
process and be printed on the top edge of the envelope, to the left of 
the center line of the envelope.
* * * * *
    [Revise heading of 5.0 as follows:]

5.0 Preparing Nonautomation Letters

* * * * *

5.2 Marking

    [Revise 5.2 to delete ``AUTOCR'' in the last sentence.]
* * * * *
    [Delete 5.3, Manual Only Option. Renumber 5.4 and 5.5 as new 5.3 
and 5.4.]

5.3 Machinable Preparation

5.3.1 Machinable Bundling
    Machinable pieces are not bundled, except for the following (see 
2.3):
* * * * *
    [Delete item b. Renumber item c as new item b.]
5.3.2 Traying and Labeling
    [Replace the first sentence in 5.3.2 with new text and delete items 
a and b. Renumber items c through e as new items a through c and revise 
as follows:]
    Instead of preparing overflow AADC trays with fewer than 150 
pieces, mailers may include these pieces in mixed AADC trays. 
Preparation sequence, tray size, and labeling:
    a. Origin/entry 3-digit/scheme (optional, no minimum); labeling: * 
* *
* * * * *
    b. AADC (required); 150-piece minimum (overflow allowed); labeling: 
* * *
* * * * *
    c. Mixed AADC (required); no minimum; labeling: * * *
* * * * *

5.4 Nonmachinable Preparation

5.4.1 Nonmachinable Bundling
    [Revise renumbered 5.4.1 to delete the fourth sentence, about 
manual processing, as follows:]
    Except as provided in 2.5, Exception to Bundle Preparation--Full 
Single-Sort-Level Trays, bundling is required before traying. A bundle 
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 except for mixed ADC bundles. Preparation sequence, bundle 
size, and labeling:
* * * * *
5.4.2 Traying and Labeling
    [Delete item c and renumber items d and e as new items c and d. 
Revise introductory text and renumbered items a through c as follows:]
    Overflow trays are not allowed. Preparation sequence, tray size, 
and labeling:
    a. 5-digit (required); 150-piece minimum; labeling: * * *
* * * * *
    b. 3-digit (required); 150-piece minimum (mailers may prepare 3-
digit origin/entry trays with as few as 10 pieces per tray); labeling: 
* * *
* * * * *
    c. ADC (required); 150-piece minimum; labeling: * * *
* * * * *

[[Page 2105]]

6.0 Preparing Enhanced Carrier Route Letters

6.1 Basic Standards

    [Revise 6.1 to delete ``(Enhanced Carrier Route automation rate 
mailings must be prepared under 7.0)'' in the introductory text as 
follows:]
    All mailings and all pieces in each mailing at Enhanced Carrier 
Route Standard Mail and Nonprofit Enhanced Carrier Route Standard Mail 
nonautomation rates are subject to specific preparation standards in 
6.0 and to these general standards:
* * * * *
    [Revise 6.2 by adding a sentence at the end to require carrier 
route information lines on certain pieces mailed at ECR rates as 
follows:]

6.2 Marking

    Subject to the marking standards in 202.3.0, Placement and Content 
of Mail Markings, and 202.4.0, Endorsement Placement, Enhanced Carrier 
Route Standard Mail pieces must be marked ``Presorted Standard'' (or 
``PRSRT STD''), and Nonprofit Enhanced Carrier Route Standard Mail 
pieces must be marked ``Nonprofit Organization'' (or ``Nonprofit Org.'' 
or ``Nonprofit''). All pieces also must be marked ``ECRLOT'' for basic 
rate, ``ECRWSH'' for high density rate, or ``ECRWSS'' for saturation 
rate. Pieces in carrier route mailings under 6.7 must bear carrier 
route information lines under 708.8.0.
* * * * *

6.4 Carrier Route Bundle Preparation

    Prepare carrier route bundles of letter-size mail as follows:
    [Revise item a as follows:]
    a. Mailers must prepare only carrier route bundles, except under 
6.7. Carrier route bundles are not permitted in full carrier route 
trays, except for card-size pieces.
* * * * *
    [Revise heading and introductory text of 6.6 as follows:]

6.6 General Traying and Labeling

    For all ECR letters over 3 ounces and all ECR letters that are not 
automation-compatible and delivery-point barcoded, prepare trays 
according to 6.6. For ECR automation-compatible letters that are 
delivery-point barcoded and that weigh up to 3 ounces, prepare trays 
under 6.7. Preparation sequence, tray size, and labeling:
* * * * *
    [Renumber 6.7 through 6.9 as new 6.8 through 6.10. Insert new 6.7 
as follows:]

6.7 Traying and Labeling for Automation-Compatible ECR Letters

    Mailers must make full carrier route and 5-digit carrier routes 
trays, when possible, for automation-compatible, delivery-point 
barcoded ECR letters that weigh up to 3 ounces. Except for card-size 
pieces, pieces must not be bundled. Group pieces together by carrier 
route in 5-digit and 3-digit carrier routes trays. If pieces for one 
carrier route do not result in a full tray, mailers must combine pieces 
from at least two routes to make full 5-digit carrier routes trays, 
grouping pieces together by carrier route. If pieces for multiple 
carrier routes do not result in a full 5-digit tray, mailers must 
combine pieces from at least two 5-digit ZIP Codes to make 3-digit 
carrier routes trays, grouping pieces together by carrier route. If 
pieces fill more than one tray but do not fill an additional tray, 
mailers must place excess pieces in a tray at the next sortation level. 
Preparation sequence, tray size, and labeling:
    a. Carrier route: required; full trays only, no overflow.
    1. Line 1: city, state, and 5-digit ZIP Code on mail (see 4.0 for 
overseas military mail).
    2. Line 2: for saturation, ``STD LTR BC WSS,'' followed by route 
type and number; for high-density, ``STD LTR BC WSH,'' followed by 
route type and number; for basic, ``STD LTR BC LOT,'' followed by route 
type and number.
    b. 5-digit carrier routes: required; full trays only, no overflow, 
no bundling.
    1. Line 1: city, state, and 5-digit ZIP Code on mail (see 4.0 for 
overseas military mail).
    2. Line 2: ``STD LTR 5D CR-RT BC.''
    c. 3-digit carrier routes: required; bundling required in less-
than-full trays.
    1. Line 1: city, state, and 3-digit ZIP Code prefix shown in L002, 
Column A, that corresponds to 3-digit ZIP Code prefix on mail.
    2. Line 2: ``STD LTR 3D CR-RT BC.''
* * * * *

7.0 Preparing Automation Rate Letters

* * * * *

7.2 Mailings

    [Restructure 7.2 to delete the introductory text and item b. Make 
item a the new text as follows:]
    All pieces in a mailing must meet the standards in 201.1.0, 
Physical Standards for Machinable Letters and Cards, and 201.3.0, 
Physical Standards for Automation Letters and Cards, and must be sorted 
together to the finest extent required for the rate claimed. The 
definitions of a mailing and permissible combinations are in 1.0, 
General Information for Mail Preparation.

7.3 Marking

    [Revise 7.3 to delete references to ``AUTOCR'' as follows:]
    All Standard Mail automation rate pieces must be marked under 
202.3.0, Placement and Content of Mail Markings. Pieces claimed at an 
automation rate must bear the appropriate class marking and ``AUTO,'' 
except as provided in 202.3.0. Pieces not claimed at an automation rate 
must not bear ``AUTO'' unless First-Class single-piece rate postage is 
affixed or a corrective single-piece rate marking (``Single-Piece'' or 
``SNGLP'') is applied.

7.4 General Preparation

    [Revise 7.4 to delete carrier route references as follows:]
    Grouping, bundling, and labeling are not generally required or 
permitted, except bundling is required in any mailing consisting 
entirely of card-size pieces and for pieces in overflow and less-than-
full trays, and grouping is required under 7.5.
    [Delete 7.5 and 7.6, about carrier route trays and pieces. Renumber 
7.7 through 7.9 as new 7.5 through 7.7.]

7.5 Tray Preparation

    [Revise renumbered 7.5 to add information about overflow trays as 
follows:]
    Instead of preparing overflow trays with fewer than 150 pieces, 
mailers may include these pieces in the next tray level when a tray of 
150 or more pieces can be made. Mailers must note these trays on 
standardized documentation (see 708.1.2). Pieces that are placed in the 
next tray level must be grouped by destination and placed in the front 
of that tray. Mailers may use this option selectively for 3-digit and 
AADC ZIP Codes. This option does not apply to origin/entry 3-digit/
scheme trays. Preparation sequence, tray size, and Line 1 labeling:
    [Delete items a through c, about carrier routes trays. Renumber 
items d through g as new items a through d. Revise renumbered item a to 
require 5-digit/scheme trays for rate as follows:]
    a. 5-digit/scheme (see 1.4e): optional, but required for 5-digit 
rate (150-piece minimum); overflow allowed; for Line 1, label as 
follows:
    1. For 5-digit scheme trays, use destination shown in the current 
USPS City State Product.
    2. For 5-digit trays, use city, state, and 5-digit ZIP Code 
destination on pieces (see 4.0 for overseas military mail).
    [Revise renumbered item b to make origin 3-digit trays optional as 
follows:]
    b. 3-digit/scheme; required (150-piece minimum except no minimum 
for

[[Page 2106]]

optional origin/entry 3-digit/scheme(s)); overflow allowed; for Line 1, 
use L002, Column B.
* * * * *

7.6 Tray Line 2

    Line 2: ``STD LTR'' and:
    [Delete items a through c, about carrier routes. Renumber items d 
through i as new items a through f and revise as follows:]
    a. 5-digit scheme: ``BC 5D SCHEME.''
    b. 5-digit: ``5D BC.''
    c. 3-digit scheme: ``BC 3D SCHEME'' and, if applicable, as shown in 
L002, Column B, followed by the letter ``A,'' ``B,'' or ``C.''
    d. 3-digit: ``3D BC.''
    e. AADC: ``AADC BC.''
    f. Mixed AADC: ``BC WKG.''
* * * * *

246 Enter and Deposit

* * * * *

4.0 Destination Sectional Center Facility (DSCF) Entry

* * * * *

4.2 Eligibility

    [Revise 4.2 to allow pieces placed in AADC trays in lieu of in 3-
digit trays under 245.7.5 to be eligible for DSCF rates as follows:]
    Pieces in a mailing that meet the standards in 2.0 and 4.0 are 
eligible for DSCF rates under either of the following conditions:
    a. When deposited at a DSCF (or USPS-designated facility), 
addressed for delivery within that SCF's service area, and:
    1. Placed in a tray labeled to that DSCF.
    2. Placed in a tray labeled to the DADC that includes that DSCF 
under the preparation option in 245.7.5.
    3. Placed in a tray labeled to a postal facility within that DSCF's 
service area.
    b. When the pieces are prepared with simplified addresses under 
602.3.2 or mailers hold a mailing permit at the entry office and 
deposit only one mailing (of fewer than 2,500 pieces) per day. See 5.2 
for additional DSCF rate eligibility for letters.
* * * * *

5.0 Destination Delivery Unit (DDU) Entry

* * * * *

5.2 Eligibility

    [Revise 5.2 to reorganize text and eliminate the DDU entry discount 
as follows:]
    Letter-size mailpieces are not eligible for a destination delivery 
unit (DDU) discount. Mailers may deposit letter-size pieces that meet 
the standards in 2.0 and 5.0 at a DDU when:
    a. Those pieces are addressed for delivery within that facility's 
service area (enhanced carrier route only).
    b. The pieces are placed in properly prepared and labeled carrier 
route trays or 5-digit carrier routes trays, or on pallets under 
705.8.0.
    c. The pieces are eligible for and claimed at a carrier route rate.
* * * * *

300 Discount Mail: Flats

301 Physical Standards

1.0 Physical Standards for Flats

1.1 General Definition of Flat-Size Mail

    Flat-size mail other than that in 3.0, Physical Standards for 
Automation Flats, is:
* * * * *
    [Add an exception for Periodicals mail in item b as follows:]
    b. Not more than 15 inches long, or more than 12 inches high, or 
greater than 3/4 inch thick, except for Periodicals mail under 
707.25.3.
    [Replace items c and d with new items c and d as follows:]
    c. Rectangular.
    d. Other size or weight standards may apply to mail claimed at 
certain rates, mail addressed to certain APOs and FPOs, and mail sent 
by the Department of State to U.S. government personnel abroad.
    [Revise 1.2 to change the determination of the length of flats as 
follows:]

1.2. Length and Height of Flats

    The length of a flat-size mailpiece is the longest dimension. The 
height is the dimension perpendicular to the length.
    [Insert new 1.3 through 1.6 as follows:]

1.3 Shape

    Each flat-size piece must be rectangular. See 2.0 for additional 
standards by class of mail.

1.4 Minimum Flexibility Criteria for Rigid Pieces

    Flat-size pieces must be flexible. Test flexibility as follows:
    a. For pieces 10 inches or longer:
    1. Place the piece with the length perpendicular to the edge of a 
flat surface and extend the piece 5 inches off the surface.
    2. Press down on the piece at a point 1 inch from the outer edge, 
in the center of the piece's width, exerting steady pressure.
    3. Turn the piece around and repeat steps 1 and 2. The piece is 
flexible if both ends can bend at least 2 inches without being damaged.
    b. For pieces less than 10 inches long:
    1. Place the piece with the length perpendicular to the edge of a 
flat surface and extend the piece one-half of its length off the 
surface.
    2. Press down on the piece at a point 1 inch from the outer edge, 
in the center of the piece's width, exerting steady pressure.
    3. Turn the piece around and repeat steps 1 and 2. The piece is 
flexible if both ends can bend at least 1 inch without being damaged.

1.5 Uniform Thickness

    Flat-size mailpieces must be uniformly thick so that any bumps, 
protrusions, or other irregularities do not cause more than \1/4\-inch 
variance in thickness. (Do not consider the selvage when measuring 
variance in thickness.) If the contents are significantly smaller than 
the envelope, wrapper, or sleeve, mailers must secure those contents to 
prevent shifting of more than 2 inches within the mailpiece.

1.6 Flat-Size Pieces Not Eligible for Flat-Size Rates

    Mailpieces that do not meet the standards in 1.3 through 1.5 are 
not eligible for flat-size rates and must pay applicable rates as 
follows:
    a. First-Class Mail--parcel rates.
    b. Standard Mail--Not Flat-Machinable or parcel rates.
    c. Bound Printed Matter--parcel rates.
    [Revise the heading of 2.0 to delete ``Presorted.'']

2.0 Physical Standards for Nonautomation Flats

2.1 First-Class Mail

    [Revise 2.1 as follows:]
    These additional standards apply to First-Class Mail flat-size 
pieces:
    a. First-Class Mail cannot exceed 13 ounces. First-Class Mail 
weighing more than 13 ounces is Priority Mail.
    b. Flat-size pieces that do not meet the standards in 1.3 through 
1.5 must be prepared as parcels and pay the applicable parcel rate.

2.2 Standard Mail

2.2.1 Basic Physical Standards
    [Revise the introductory text as follows:]
    These additional standards apply to Standard Mail flat-size pieces:
* * * * *
    [Delete item b. Insert new item b as follows:]
    b. Flat-size pieces that do not meet the standards in 1.3 through 
1.5 must be prepared as parcels or Not Flat-

[[Page 2107]]

Machinable pieces and pay the parcel or Not Flat-Machinable rates (see 
401).
    [Delete Exhibit 2.2.1b, Maximum Dimensions for Standard Mail 
Flats.]
* * * * *

2.3 Bound Printed Matter

2.3.1 General Standards
    [Delete item c. Renumber items a and b as new items b and c. Revise 
the introductory text and insert new item a as follows:]
    These additional standards apply to Bound Printed Matter:
    a. Flat-size pieces that do not meet the standards in 1.3 through 
1.5 must be prepared as parcels and pay the applicable parcel rate.
* * * * *

2.4 Media Mail

2.4.1 General Standards
    [Delete item c. Renumber items a and b as new items b and c. Revise 
the introductory text and insert new item a as follows:]
    These additional standards apply to Media Mail:
    a. Flat-size pieces that do not meet the standards in 1.3 through 
1.5 must be prepared as parcels.
* * * * *

2.5 Library Mail

2.5.1 General Standards
    These additional standards apply to Library Mail:
    [Delete item c. Renumber items a and b as new items b and c. Revise 
the introductory text and insert new item a as follows:]
    a. Flat-size pieces that do not meet the standards in 1.3 through 
1.5 must be prepared as parcels.
* * * * *

3.0 Physical Standards for Automation Flats

3.1 Basic Standards for Automation Flats

    [Revise 3.1 as follows:]
    Flat-size pieces claimed at automation rates must meet the 
standards in 3.0 and the eligibility standards for the class of mail 
and rate claimed. Pieces prepared with polywrap film must meet the 
standards in 3.4.
    [Delete 3.2]
    [Renumber 3.3. through 3.8 as new 3.2 through 3.7]
    [Revise heading of new 3.2 as follows:]

3.2 Additional Criteria for Automation Flats

    [Revise the heading and text of 3.2.1 as follows:]
3.2.1 Address Placement on Folded Pieces
    Mailers must design folded pieces so that the address is in view 
when the final folded edge is at the bottom of the piece and any 
intermediate bound or folded edge is to the right.
3.2.2 Shape and Size
    [Revise 3.2.2 to specify the minimum and maximum dimensions as 
follows:]
    Each flat-size piece must be rectangular. The following minimum and 
maximum dimensions apply to First-Class Mail, Standard Mail, 
Periodicals (except under 707.25.3), and Bound Printed Matter pieces:
    1. Minimum height is 5 inches. Maximum height is 12 inches.
    2. Minimum length is 6 inches. Maximum length is 15 inches.
    3. Minimum thickness is 0.009 inch. Maximum thickness is 0.75 inch.
* * * * *
    [Revise heading and text of 3.2.4, and delete Exhibit 3.2.4a, to 
add new standards for deflection as follows:]
3.2.4 Maximum Deflection (``Droop'') Criteria for Flimsy Pieces
    An automation flat-size mailpiece must be flexible (see 1.4) and 
must meet maximum deflection standards. Test deflection as follows:
    a. For pieces 10 inches or longer:
    1. Place the piece with the length perpendicular to the edge of a 
flat surface and extend the piece 5 inches off the surface. Turn the 
piece around and repeat the process.
    2. The piece is automation-compatible if it does not droop more 
than 4 inches.
    b. For pieces less than 10 inches long:
    1. Place the piece with the length perpendicular to the edge of a 
flat surface and extend the piece one-half of its length off the 
surface. Turn the piece around and repeat the process.
    2. The piece is automation-compatible if it does not droop more 
than 1 inch less than the extended length. For example, a piece 8 
inches long would extend 4 inches off a flat surface. It must not droop 
down more than 3 inches.
* * * * *
    [Delete 3.4 to remove the standards for UFSM 1000 flats. Renumber 
3.5 through 3.9 as new 3.4 through 3.8.]

3.4 Polywrap Coverings

    [Revise heading and text of renumbered 3.4.1 as follows:]
3.4.1 Polywrap Films and Similar Coverings
    When mailers use polywrap film or similar material to enclose flat-
size mailpieces claimed at automation rates, the material must meet the 
standards in 3.4. Film approved for use under 3.4.5 must meet the 
specifications in Exhibit 3.4.1 as follows:
    a. Films or similar coverings must meet all eight properties in 
Exhibit 3.4.1.
    b. If the address label is affixed to the outside of the polywrap, 
the haze property (property 2) does not apply.
* * * * *
3.4.2 Wrap Direction and Seam Placement
    Wrap direction, seam direction, and seam placement must follow 
these standards:
    [Revise item a and the first sentence in item b as follows:]
    a. The wrap direction must be around the longer axis of the 
mailpiece, with the seam parallel to that axis. The longer axis is 
always parallel to the length of the mailpiece.
    b. The preferred seam placement is on the nonaddressed side of the 
mailpiece. If the seam is placed on the addressed side, the seam must 
not cover any part of the delivery address and barcode, postage area, 
or any required markings or endorsements. Regardless of seam placement, 
the polywrap over the address area must be a smooth surface to avoid 
interference with address and barcode readability.
3.4.3 Overhang
    [Revise 3.4.3 to delete item b and restructure the text as 
follows:]
    For purposes of the polywrap standards for overhang (selvage) only, 
the top edge of the mailpiece is one of the two physically longer edges 
of the piece, regardless of address orientation and whether bound or 
unbound. Any polywrap overhang (selvage) around the four edges of the 
mailpiece (top, bottom, and left and right sides) must meet these 
standards:
    a. When the mailpiece contents are totally positioned at the bottom 
of the polywrap, the overhang must not be more than 0.5 inch at the top 
of the mailpiece.
    b. When the mailpiece contents are totally positioned to the left 
or to the right side of the polywrap, the overhang must not be more 
than 1.5 inches on the opposite side.
    c. The polywrap covering must not be so tight that it bends the 
mailpiece.
    [Delete 3.4.4. Renumber 3.4.5 as 3.4.4.]
* * * * *

[[Page 2108]]

3.7 Uniformity and Exterior Format

3.7.1 General
    [Revise renumbered 3.7.1 to add a reference to 1.5 in the first 
sentence as follows:]
    A flat-size mailpiece prepared and claimed at automation rates must 
be uniformly thick (see 1.5). Each flat-size mailpiece must have a 
smooth and regular shape and be free of creases, folds, tears, or other 
irregularities not compatible with automation equipment. The exterior 
surface must not have protuberances caused by prohibited closures; 
attachments (except as provided below); irregularly shaped or 
distributed contents; or untrimmed excess material from the envelope, 
wrapper, or sleeve.
* * * * *
    [Delete renumbered 3.7.3 (this information was relocated to 1.5). 
Renumber 3.7.4 as new 3.7.3.]
* * * * *

302 Elements on the Face of a Mailpiece

* * * * *

2.0 Placement and Content of Mail Markings

2.1 First-Class Mail and Standard Mail Markings

2.1.1 Placement
    Mailpieces must be marked under the corresponding standards to show 
the class of service and/or rate paid:
* * * * *
    [Revise items b and b3 as follows:]
    b. Other Markings. Mailers may place rate-specific markings as 
follows:
* * * * *
    3. If preceded by two asterisks (**), the ``AUTO,'' ``PRESORTED'' 
(or ``PRSRT''), ``CUSTOMIZED MARKETMAIL'' (or ``CUST MKTMAIL'' or 
``CMM''), or ``Single-Piece'' (or ``SNGLP'') markings also may be 
placed on the line directly above or two lines above the address in a 
mailer keyline or a manifest keyline, or it may be placed above the 
address and below the postage in an MLOCR ink-jet printed date 
correction/meter drop shipment line.
* * * * *
2.1.2 Exceptions to Markings
    Exceptions are as follows:
* * * * *
    [Delete ``AUTOCR'' in item b as follows:]
    b. Manifest Mailings. The basic marking must appear in the postage 
area on each piece. The two-letter rate category code required in the 
keyline on manifest mailing pieces prepared under 705.2.0 meets the 
requirement for other rate markings.
* * * * *

4.0 Barcode Placement

* * * * *

4.2 Applying One Barcode

    [Revise 4.2 to delete the second sentence, about UFSM 1000 
mailpieces, as follows:]
    On any flat-size mailpiece claimed at an automation rate, the 
barcode may be anywhere on the address side as long as it is at least 
\1/8\ inch from any edge of the piece. The portion of the surface of 
the piece on which the barcode is printed must meet the barcode 
dimensions and spacing requirements in 708.4.2.5, and the reflectance 
standards in 708.4.4. Address block barcodes are subject to the 
standards in 4.6a. through 4.6e.
* * * * *

330 Discount Flats: First-Class Mail

333 Rates and Eligibility

1.0 Rates and Fees for First-Class Mail

1.1 Rate Application

    [Revise 1.1 as follows:]
    Postage is based on the flat-size rate that applies to the weight 
of each addressed piece.
* * * * *

4.0 Additional Eligibility Standards for Nonautomation First-Class Mail 
Flats

* * * * *
    [Revise the heading and text of 4.3 as follows:]

4.3 Nonmachinable Flat-Size Pieces

    Flat-size pieces that do not meet the standards in 301.1.3 through 
301.1.5 must be prepared as parcels and pay the applicable parcel rate.

5.0 Additional Eligibility Standards for Automation Rate First-Class 
Mail Flats

* * * * *
    [Delete 5.2 and renumber 5.3 through 5.6 as new 5.2 through 5.5.]

340 Discount Flats: Standard Mail

343 Rates and Eligibility

* * * * *

3.0 Basic Standards for Standard Mail Flats

* * * * *

3.2 Defining Characteristics

    [Revise heading and text of 3.2.1 as follows:]
3.2.1 Weight, Shape, Flexibility, and Uniform Thickness
    All Standard Mail pieces must weigh less than 16 ounces. Flat-size 
pieces that do not meet the standards in 301.1.3 through 301.1.5 must 
be prepared as parcels or Not Flat-Machinable pieces and pay parcel or 
Not Flat-Machinable rates (see 401).
* * * * *

4.0 Rate Eligibility for Standard Mail

* * * * *

4.2 Minimum Per Piece Rates

    The minimum per piece rates (the minimum postage that must be paid 
for each piece) apply as follows:
* * * * *
    [Revise introductory text in item b and item b1 as follows:]
    b. In applying the minimum per piece rates, a mailpiece is 
categorized as a letter based on whether the piece meets the letter-
size standard in 201.1.0, without regard to placement of the address on 
the piece, except under these conditions:
    1. If the piece meets both the definition of a letter in 201.1.1.1 
and the definition of an automation flat in 301.3.0, the piece may be 
prepared and entered at an automation flat rate. [Revise item b2 to 
change the rates for Customized MarketMail to the NFM rates as 
follows:]
    2. Pieces mailed as Customized MarketMail under 705.1.0 must pay 
Regular or Nonprofit Standard Mail 5-digit nonentry rates for Not Flat-
Machinable pieces and must not exceed 3.3 ounces.
* * * * *
    [Revise heading and text of 4.4 as follows:]

4.4 Shape, Flexibility, and Uniform Thickness

    Flat-size pieces that do not meet the standards in 301.1.3 through 
301.1.5 must be prepared as parcels or Not Flat-Machinable pieces and 
pay parcel or Not Flat-Machinable rates (see 401).
    [Revise heading of 5.0 as follows:]

5.0 Additional Eligibility Standards for Nonautomation Standard Mail 
Flats

* * * * *
    [Replace 5.3 and 5.4 with new 5.3 through 5.6 as follows:]

5.3 5-Digit Rates for Flats

    The 5-digit rate applies to flat-size pieces:
    a. In a 5-digit/scheme bundle of 10 or more pieces, or 15 or more 
pieces, as applicable; properly placed in a 5-digit/scheme sack 
containing at least 125 pieces or 15 pounds of pieces.

[[Page 2109]]

    b. When palletized under 705.8.0 and 705.10.0 through 705.13.0, in 
a 5-digit/scheme bundle of 10 or more pieces, or 15 or more pieces, as 
applicable.
    c. In a 5-digit bundle of 10 or more pieces, or 15 or more pieces, 
as applicable; properly placed in a merged 5-digit/scheme or 5-digit 
sack under 705.10.0.

5.4 3-Digit Rates for Flats

    The 3-digit rate applies to flat-size pieces:
    a. In a 5-digit/scheme bundle of 10 or more pieces, or 15 or more 
pieces, as applicable, or in a 3-digit/scheme bundle of 10 or more 
pieces; properly placed in a 3-digit sack of at least 125 pieces or 15 
pounds of pieces.
    b. When palletized under 705.8.0 and 705.10.0 through 705.13.0, in 
a 3-digit/scheme bundle of 10 or more pieces.

5.5 ADC Rates for Flats

    ADC rates apply to flat-size pieces:
    a. In a 5-digit/scheme, 3-digit/scheme, or ADC bundle of 10 or more 
pieces properly placed in an ADC sack of at least 125 pieces or 15 
pounds of pieces.
    b. In an optional 3-digit/scheme origin/entry sack.
    c. When palletized under 705.8.0 and 705.10 through 705.13, in an 
ADC bundle of 10 or more pieces; properly placed on an ADC pallet.

5.6 Mixed ADC Rates for Flats

    Mixed ADC rates apply to flat-size pieces in bundles that do not 
qualify for 5-digit, 3-digit, or ADC rates; placed in mixed ADC sacks 
or on ASF, BMC, or mixed BMC pallets under 705.8.0.
* * * * *

7.0 Additional Eligibility Standards for Automation Rate Standard Mail 
Flats

* * * * *

7.2 Rate Application

    [Revise 7.2 as follows:]
    Automation rates apply to each piece properly sorted into 
qualifying groups:
    a. The 5-digit rate applies to flat-size pieces in a 5-digit/scheme 
bundle of 10 or more pieces, or 15 or more pieces, as applicable.
    b. The 3-digit rate applies to flat-size pieces in a 3-digit/scheme 
bundle of 10 or more pieces.
    c. The ADC rate applies to flat-size pieces in an ADC bundle of 10 
or more pieces.
    d. The mixed ADC rate applies to flat-size pieces in mixed ADC 
bundles (no minimum).
* * * * *

345 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.3 Terms for Presort Levels

    Terms used for presort levels are defined as follows:
* * * * *
    [Revise items c and k as follows:]
    c. 5-digit scheme (bundles and sacks) for flats meeting the 
automation-compatibility standards in 301.3.0: the ZIP Code in the 
delivery address on all pieces is one of the 5-digit ZIP Code areas 
processed by the USPS as a single scheme, as shown in L007.
* * * * *
    k. 3-digit scheme bundles for flats meeting the automation-
compatibility standards in 301.3.0: the ZIP Code in the delivery 
address begins with one of the 3-digit prefixes processed by the USPS 
as a single scheme, as shown in L008.
* * * * *

1.4 Preparation Definitions and Instructions

    For purposes of preparing mail:
* * * * *
    [Revise item f as follows:]
    f. A 5-digit scheme sort for flats meeting the automation-
compatibility standards in 301.3.0 yields 5-digit scheme bundles for 
those 5-digit ZIP Codes identified in L007 and 5-digit bundles for 
other ZIP Codes. When standard