[Federal Register Volume 63, Number 209 (Thursday, October 29, 1998)]
[Proposed Rules]
[Pages 57970-57996]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28803]
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POSTAL SERVICE
39 CFR Part 111
Proposed Domestic Mail Manual Changes to Implement New Labeling
List L001 and to Implement Package Reallocation for Periodicals and
Standard Mail (A) Flats Placed on Pallets
AGENCY: Postal Service.
ACTION: Proposed rule.
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SUMMARY: The migration of flat-size Periodicals and Standard Mail (A)
from sacks to pallets during the past several years has compelled both
the Postal Service and the mailing community to take a closer look at
how mail is being sorted to pallets to identify opportunities for
improvement. Early last year, the Mailers Technical Advisory Committee
(MTAC) Presort Optimization Work Group, comprised of representatives of
the Postal Service, presort software vendors, mail owners, and
printers, was established to study and recommend changes in presort
software and sortation levels to improve the overall pattern of
containerization of mail by reducing or eliminating residual mail and
by reducing or eliminating inefficient use of containers.
The MTAC work group has identified two significant opportunities to
improve the presort of palletized Periodicals and Standard Mail (A)
flats. These are based on (1) protecting the sectional center facility
(SCF) pallet level through the reallocation of packages from finer-
level pallets to higher-level pallets (e.g., by moving packages from a
5-digit or 3-digit pallet to an SCF pallet that would not otherwise be
created) and (2) by increasing the amount of mail that can be sorted to
the 5-digit level through the creation of Domestic Mail Manual (DMM)
labeling list L001. L001 is a 5-digit scheme list that will be required
for the preparation of Periodical and Standard Mail (A) pallets and
carrier routes sacks. This 5-digit/scheme sort will yield 5-digit
scheme pallets and carrier routes sacks for those 5-digit ZIP Code
zones listed in L001 and 5-digit pallets and carrier routes sacks for
ZIP Codes not listed in L001. The 5-digit ZIP Code zones in each scheme
will be treated as a single presort destination subject to a single
pallet or sack minimum volume, with no further separation by 5-digit
prefix required.
The Postal Service is proposing requiring mailers to sort all
palletized flats packages and sacked carrier route flats packages of
Periodicals and Standard Mail (A) using labeling list L001 to create 5-
digit scheme pallets and 5-digit scheme carrier routes sacks. Although
package reallocation will be optional when initially implemented, the
Postal Service believes that the opportunities it offers for more
consistent service warrant exploring the possibility of requiring it at
some future date.
The proposed standards for package reallocation and 5-digit/scheme
sort for palletized flats will also apply to Periodicals irregular
parcels, which are prepared under the same standards that apply to
flats, and to presorted Standard Mail (A) irregular parcels that are
part of a mailing job prepared in part as FSM 1000 automation flats
placed on pallets. The residual shape surcharge for non-letter, non-
flat-size mail will apply to the Standard Mail (A) irregular parcels.
DATES: Comments must be received on or before December 28, 1998.
ADDRESSES: Mail or deliver written comments to the Manager, Business
Mail Acceptance, USPS Headquarters, 475 L'Enfant Plaza SW, Room 6800,
Washington, DC 20260-6808. Copies of all written comments will be
available for inspection and photocopying between 9 a.m. and 4 p.m.,
Monday through Friday, at the above address.
FOR FURTHER INFORMATION CONTACT: Cheryl Beller, (202) 268-5166.
SUPPLEMENTARY INFORMATION:
Package Reallocation to Protect the SCF Pallet
Under current rules for preparing packages of flats on pallets,
mailers are required to prepare SCF pallets after preparing required 5-
digit and optional 3-digit pallets. Many mailers choose to prepare
optional 3-digit pallets, particularly when preparing regional or large
volume national mailings. They can do this by selecting the option in
their presort software that will result in the preparation of 3-digit
pallets for the entire job (list) that is being processed. Generally,
the preparation of 3-digit pallets benefits postal operations and
improves service. In instances where an SCF serves multiple 3-digit ZIP
Code areas, however, there are many situations where the preparation of
3-digit pallets causes mail that would otherwise be prepared on SCF
pallets to be sorted to a pallet level that is less finely sorted.
A multiple 3-digit SCF is often comprised of both high-and low-
density 3-digit ZIP Code service areas. If a mailer selects the presort
software option for preparing 3-digit pallets, it is common for a
mailing to have sufficient volume to meet a mailer-specified pallet
weight minimum for high-density 3-digit ZIP Codes but not enough volume
to meet the pallet weight minimum for the remaining lower density 3-
digit ZIP Codes. Consequently, mail for the lower density 3-digit ZIP
Codes often falls to a less finely sorted pallet level beyond the SCF
level (e.g., to an ADC or BMC pallet). Always preparing 3-digit pallets
can have a negative impact on delivery consistency for a mailing job
because some mail destined to an SCF service area may be on 5-digit and
3-digit pallets, which may also be drop shipped to the SCF, while the
remaining mail for the same SCF service area may be on ADC or BMC
pallets or in the appropriate level sack. Mail on the ADC or BMC
pallets or in sacks may be entered into the postal processing system
further upstream (e.g., at a BMC or at the origin post office where the
mailing was prepared).
Using current presort software, the primary option available to
mailers for remedying the situation described above is to deactivate
the option for preparing 3-digit pallets. This will result in mail for
all 3-digit ZIP Codes within a multiple-3-digit ZIP Code SCF service
area being combined to make an SCF pallet, based on the minimum pallet
weight selected, after all required 5-digit pallets are prepared.
However, because 3-digits pallets do have value for mailers and postal
operations, their elimination is not an optimal solution. Discussions
[[Page 57971]]
with the major presort software vendors have revealed that presort
programs can be created that will enable optimal SCF palletization
without necessarily eliminating 3-digit pallets. The process, which is
known as package reallocation, prevents sortation to the 3-digit pallet
level when such preparation impedes optimal SCF palletization.
Moreover, the process will reallocate the minimum amount of mail
necessary from high-density pallets at a finer level of sortation (5-
digit/scheme or 3-digit pallets) to create an SCF pallet that would not
otherwise have been prepared without reallocation. This will help draw
mail back to the SCF pallet level from ADC/BMC pallets and will also
allow mailers to palletize mail that would otherwise be required to be
prepared in sacks due to the elimination of standards for preparing
mixed ADC and mixed BMC pallets of flats that became effective October
4, 1998.
Increasing the Amount Of Mail At the 5-Digit Level by Creating a 5-
digit/scheme List
The Postal Service is also proposing implementation of a new 5-
digit/scheme list for pallets and carrier routes sacks of Periodicals
and Standard Mail (A) flat packages and bundles that is similar to the
old DMM L001 list. However, there are three primary differences in the
new list and the old DMM L001 list: (1) the old list was a multi-coded
city list while the new list is a ``scheme type'' list of combinations
of 5-digits based on where the flats are actually worked within a
single processing facility; (2) the old L001 list was used for package
preparation as well as sack and pallet preparation while the new list
will be used only for sack and pallet preparation; and (3) the old L001
pallet level was optional while the new DMM L001 list will become part
of the required 5-digit/scheme pallet level. Therefore, the 5-digit
pallet presort level for packages of flats will become a 5-digit/scheme
presort level and mailers will not prepare individual 5-digit pallets
to zones that are listed as part of a combination on the new L001 list;
instead they will prepare them as an L001 pallet. The expected results
are an increase in the amount of mail that can be placed on 5-digit (to
be renamed 5-digit/scheme) pallets and the likelihood that postal
plants will be able to crossdock more mail directly to delivery
offices.
With the implementation of the new 5-digit scheme pallet, the SCF
pallet level may become more vulnerable than it is today. For instance,
if some mail for low-density 3-digits is already falling through the
SCF level, because of the preparation of other 3-digit pallets for
areas within the same SCF, then the 5-digit scheme pallet will likely
amplify the problem as more mail is potentially pulled away from the
SCF pallet. Package reallocation will help to address this. It should
be noted that although the examples reference multiple 3-digit SCF
packages, reallocation will also apply to single 3-digit SCFs.
Implementation Dates
The Postal Service proposes requiring 5-digit/scheme pallets and
carrier routes sacks using labeling list L001 effective May 1999, and
implementing the option to prepare pallets using package reallocation
at the same time in conjunction with presort software releases
incorporating the April address information system releases. This will
allow presort vendors and mailers sufficient time to incorporate
changes related to the R97-1 rate case before making changes necessary
to support L001 and reallocation. This will also allow them time to
have palletization software tested and PAVE-certified.
Summary of Proposed USPS Revisions
Reallocation Rules
Determine Whether Reallocation Should be Performed
The presort software will identify instances where some mail for an
SCF service area would fall beyond the SCF level (e.g., on ADC or BMC
pallets) if all required 5-digit/scheme and optional 3-digit pallets,
if selected, are prepared for the SCF service area. The SCF pallet
level serves as a dividing line and reallocation is performed only when
there is mail for the same SCF service area on both sides of the
dividing line.
The software will next determine the weight of mail that would drop
beyond the SCF level and the minimum weight of mail (correlating to a
minimum number of pieces in the mailing) that is required to bring that
mail back to the SCF level. For example, if a mailer sets 500 pounds as
the minimum weight for SCF pallets and there are 300 pounds of mail
that fall beyond the SCF pallet level after preparation of 5-digit/
scheme and/or 3-digit pallet(s), then 200 pounds would be the minimum
volume to be reallocated to bring the 300 pounds back to the SCF level.
General Reallocation Rules
a. Package preparation is not Affected by the Reallocation process.
This process should always reallocate only the minimum number of
complete packages necessary to create an SCF pallet meeting the minimum
pallet weight selected. Based on the weight of individual pieces within
a package, the weight of mail that is reallocated will often be
slightly more than the minimum volume required to create an SCF pallet.
For example, if a mailer selects 250 pounds as the minimum SCF pallet
weight and 239 pounds of mail would fall beyond the SCF level after 5-
digit/scheme and 3-digit pallets are prepared for a specific SCF
service area, the software may find the smallest package available for
reallocation on a candidate 3-digit pallet that contains 16 pieces that
each weigh 0.8125 pound. As a result, the total weight of the mail that
will be reallocated is 13 pounds and the SCF pallet that will be
created will contain 252 pounds of mail.
b. Reallocate packages from the highest (least finely sorted)
available pallet level possible. For example, attempt to reallocate
some mail from a 3-digit pallet first; if that is not possible, attempt
to eliminate a 3-digit pallet and reallocate all mail from that pallet
to create an SCF pallet. Finally, if mail cannot be reallocated from a
3-digit pallet, attempt to reallocate some mail from a 5-digit/scheme
pallet.
c. The reallocation process may result in the elimination of a 3-
digit pallet to create an SCF pallet, but a 5-digit/scheme pallet may
not be eliminated in order to create an SCF pallet.
d. When reallocating mail to create an SCF pallet, reallocate mail
from only one pallet. This may be accomplished by reallocating a
portion of a 3-digit pallet, reallocating all mail from a 3-digit
pallet, or reallocating a portion of a 5-digit/scheme pallet following
the sequence in b.
e. Mailers may use any minimum pallet weight(s) permitted by DMM
standards and may use different minimum weights for different pallet
levels in conjunction with package reallocation. For example, a mailer
may select 500 pounds as the minimum weight for creating 5-digit/scheme
pallets, 1000 pounds for optional 3-digit pallets, and 250 pounds for
SCF pallets.
Priority for Reallocation of Packages
3-digit pallets will remain optional. If 3-digit pallets are
prepared, attempt to reallocate mail by following these steps:
a. The software will attempt to identify a 3-digit pallet of
adequate weight that can support reallocation of one or more packages
to bring the mail that has fallen through the SCF level back to the SCF
level. There must be a sufficient volume of mail remaining on the 3-
digit pallet after reallocation to meet the 3-digit pallet weight
minimum established by the mailer in compliance
[[Page 57972]]
with applicable DMM standards. If a 3-digit pallet of adequate weight
is available, then an SCF pallet will be prepared by reallocating some
mail from the 3-digit pallet and combining it with the mail that would
have fallen beyond the SCF level. For example, when a mailer sets the
minimum pallet weight for all presort levels at 500 pounds, if there
are 300 pounds of mail beyond the SCF dividing line, a minimum of 200
pounds needs to be reallocated. An adequate weight 3-digit pallet would
be one containing a minimum of 700 pounds of mail. After reallocation
of a minimum of 200 pounds of mail, 500 or more pounds of mail would
remain on the 3-digit pallet and this would meet the minimum pallet
weight standard.
b. If no single 3-digit pallet within the SCF service area contains
an adequate volume of mail to allow reallocation of a portion of the
mail on a pallet as described in the previous step, then eliminate one
3-digit pallet and reallocate all of the mail to an SCF pallet that
also contains the mail that would have fallen through the SCF level.
The result will be that the software will not prepare one 3-digit
pallet per any affected SCF service area (i.e., it eliminates a 3-digit
pallet) if it is detrimental to the SCF pallet.
Because 5-digit/scheme pallets provide savings in both pallet and
package handlings, whenever a 3-digit pallet is available, the software
should eliminate a 3-digit pallet instead of borrowing mail from a 5-
digit/scheme pallet.
c. If there are no 3-digit pallets, the software will look for a 5-
digit/scheme pallet of adequate weight that can support reallocation of
one or more packages to bring the mail that would fall through the SCF
level back to the SCF level. A sufficient volume of mail must remain on
the 5-digit/scheme pallet after reallocation to meet the pallet weight
minimum established by the mailer in compliance with applicable DMM
standards. If a 5-digit/scheme pallet of adequate weight is available,
the reallocated packages will be combined with the mail that would have
fallen through the SCF level.
If no single 5-digit/scheme pallet within the SCF service area
contains an adequate volume of mail to allow reallocation of a portion
of the mail on a pallet as described in the previous step, then no
packages will be reallocated and an SCF pallet will not be prepared.
Under this scenario, the mail that falls beyond the SCF pallet level
must be placed on the appropriate level pallet (ADC or BMC) or in the
appropriate level sack. The reallocation standards do not allow a 5-
digit/scheme pallet to be eliminated in order to protect an SCF pallet.
If 3-digit pallets are not prepared, follow these steps:
a. The software will attempt to identify a 5-digit/scheme pallet of
adequate weight that can support reallocation of one or more packages
to bring the mail that would fall through the SCF level back to the SCF
level. A sufficient volume of mail must remain on the 5-digit/scheme
pallet after reallocation to meet the pallet weight minimum established
by the mailer in compliance with applicable DMM standards. If a 5-
digit/scheme pallet of adequate weight is available, the reallocated
packages will be combined with the mail that would have fallen through
the SCF level.
b. If no single 5-digit/scheme pallet within the SCF service area
contains an adequate volume of mail to allow reallocation of a portion
of the mail on a pallet as described in the previous step, then no
packages will be reallocated and an SCF pallet will not be prepared.
Under this scenario, the mail that falls beyond the SCF pallet level
must be placed on the appropriate level pallet (ADC or BMC) or in the
appropriate level sack. The reallocation standards do not allow a 5-
digit/scheme pallet to be eliminated in order to protect an SCF pallet.
5-digit/scheme pallets will not be permitted to be eliminated for
the following reasons: (1) these pallets may be cross-docked to
delivery units and are therefore valuable to postal operations as well
as to customers for service, and (2) Periodicals mailers have expressed
concerns about the cost and corresponding rate impact of eliminating 5-
digit pallets. Therefore, to minimize the amount of mail that will
shift from that level to the SCF, mail may be reallocated from 5-digit/
scheme pallets only if sufficient volumes remain to retain the 5-digit/
scheme pallet.
Moreover, the Postal Service expects a significant shift of more
mail to the 5-digit/scheme pallet level as a result of required use of
labeling list L001. Therefore, any reallocation of mail from the 5-
digit/scheme level to the SCF level will be more than offset by the new
volume that will be captured by the required 5-digit/scheme pallet.
Documentation of Reallocation for Verification and Presort Accuracy
Validation and Evaluation (PAVE) Certification
In developing the proposed standards for reallocation, the MTAC
work group considered what information would be needed during the
postal verification process to allow acceptance personnel to identify
whether reallocation had been performed and determine if it had been
performed correctly. It was determined that proper reallocation could
best be ensured by: (1) keeping the rules as simple as possible by
employing a one-to-one relationship in the reallocation process; that
is, mail from only one pallet may be reallocated to create an SCF
pallet; and (2) requiring any mailer who uses reallocation to use PAVE-
certified presort software that has been certified to meet the
reallocation standards.
Instances where mail is reallocated to protect an SCF pallet will
be documented on the USPS Qualification Report by designating the
protected SCF pallet with an identifier of ``PSCF.'' This identifier
will be used only on the USPS Qualification Report and will not be
required to appear on pallet labels or on any other mailing
documentation. Furthermore, the MTAC Mail.DAT Work Group has indicated
that they will accommodate the ``PSCF'' identifier in their data file
structure and that they will make the appropriate changes to support
verification.
Although exempt from the notice and comment requirements of the
Administrative Procedure Act (5 U.S.C. 553(b), (c)) regarding proposed
rulemaking by 39 U.S.C. 410(a), the Postal Service invites comments on
the following proposed revisions of the Domestic Mail Manual,
incorporated by reference in the Code of Federal Regulations. See 39
CFR part 111.
List of Subjects in 39 CFR Part 111
Postal service.
Accordingly, the Postal Service proposes the following revisions to
the Domestic Mail manual, incorporated by reference in 39 CFR part 111.
PART 111--[AMENDED]
1. The authority citation for 39 CFR part 111 continues to read as
follows:
Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 414,
3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.
2. Revise the following sections of the Domestic Mail Manual as
follows:
E ELIGIBILITY
E200 Periodicals
* * * * *
E230 Nonautomation Rates
* * * * *
2.0 CARRIER ROUTE RATES
* * * * *
2.2 Eligibility
* * * * *
[[Page 57973]]
[Revise 2.2a to add the word ``scheme'' before ``carrier routes sacks''
as follows:]
a. The basic carrier route rate applies to copies in carrier route
packages of six or more letter-size pieces each that are sorted to
carrier route, 5-digit carrier routes, or 3-digit carrier routes trays;
and six or more flat-size pieces or irregular parcel-size pieces each
that are sorted to carrier route or 5-digit/scheme carrier routes
sacks.
* * * * *
E250 Destination Entry
* * * * *
2.0 DDU RATE
2.1 Eligibility
[Revise the second sentence of 2.1 by adding the word ``scheme'' before
``carrier routes sacks'' as follows:]
* * * Copies claimed at DDU rates must be part of a carrier route
package placed in a carrier route tray or sack, a 5-digit carrier
routes tray, or a 5-digit/scheme carrier routes sack for flats and
irregular parcels, under M200, or palletized under M045, and otherwise
eligible for and claimed at a carrier route rate. * * *
* * * * *
E600 Standard Mail
* * * * *
E630 Nonautomation Presort Rates
* * * * *
2.0 ENHANCED CARRIER ROUTE RATES
* * * * *
2.8 Basic Rates
Basic (nonautomation) carrier route rates apply to each piece that
is sorted under M620 into the corresponding qualifying groups:
* * * * *
[Revise 2.8b to add the word ``scheme'' before ``carrier routes sacks''
as follows:]
b. Flat-size pieces in a carrier route package of 10 or more pieces
palletized under M045, or placed in a carrier route sack containing at
least 125 pieces or 15 pounds of pieces or in a 5-digit/scheme carrier
routes sack.
* * * * *
E650 Destination Entry
E651 Regular, Nonprofit, and Enhanced Carrier Route Standard Mail
* * * * *
7.0 DDU DISCOUNTS
* * * * *
7.2 Eligibility
[Revise the first sentence of 7.2 to provide DDU rate eligibility for
carrier route flats placed in 5-digit/scheme carrier routes sacks, as
follows:]
Pieces in a mailing that meet the standards in 1.0 through 4.0 and
7.0 are eligible for the DDU rate when deposited at a DDU, addressed
for delivery within that facility's service area (carrier routes), and
placed in properly prepared and labeled carrier route packages sorted
to carrier route trays (letters) or sacks (flats and irregular
parcels), 5-digit carrier routes trays (letters) or sacks (irregular
parcels), or 5-digit/scheme carrier routes sacks (flats) under M600, or
palletized under M045, and otherwise eligible for and claimed at a
carrier route rate. * * *
* * * * *
L Labeling Lists
L000 General Use
[Amend L000 by adding new labeling list L001 as follows:]
L001 5-Digit Scheme--Periodical and Standard (A) Flats
When required by the standards for specific rates, flats packages
for the 5-digit ZIP Codes shown in Column A must be combined on pallets
or in carrier routes sacks labeled to the corresponding destination
shown in Column B.
BILLING CODE 7710-12-P
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BILLING CODE 7710-12-C
[[Page 57992]]
M Mail Preparation and Sortation
M000 General Preparation Standards
M010 Mailpieces
M011 Basic Standards
1.0 TERMS AND CONDITIONS
1.1 Presort Process
[Amend 1.1 to incorporate a reference to package reallocation to read
as follows:]
Presort is the process by which a mailer prepares mail so that it
is sorted to at least the finest extent required by the standards for
the rate claimed. Generally, presort is performed sequentially, from
the lowest (finest) level to the highest level, to those destinations
specified by standard and is completed at each level before the next
level is prepared. Under standards for package reallocation for
Periodicals flats and irregular parcels and Standard Mail (A) flats on
pallets (see M041 and M045), mail will not necessarily be placed on the
lowest (finest) level pallets. Not all presort levels are applicable in
all situations.
1.2 Presort Levels
Terms used for presort levels are defined as follows:
* * * * *
[Amend 1.2d and add new 1.2e to differentiate between 5-digit schemes
for automation letters and 5-digit schemes for pallets and for carrier
routes sacks of Periodicals flats and irregular parcels and Standard
Mail (A) flats; renumber current 1.2e through 1.2m as 1.2f through n,
as follows:]
d. 5-digit scheme for automation letters: 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 the USPS City
State File.
e. 5-digit scheme carrier routes for Periodicals flats and
irregular parcels and Standard Mail (A) flats: the ZIP Code in the
delivery address on all pieces begins with one of the 5-digit ZIP Code
zones processed by the USPS as a single scheme, as shown in L001.
* * * * *
1.3 Preparation Instructions
* * * * *
[Insert new 1.3h and i to define 5-digit/scheme sort for carrier routes
sacks of Periodicals flats and irregular parcels and Standard Mail (A)
flats and 5-digit/scheme sort for Periodicals flats and irregular
parcels packages and Standard Mail (A) flats packages on pallets;
renumber 1.3h through p as 1.3j through r, respectively, to read as
follows:]
h. A 5-digit/scheme sort for sacked carrier route rate Periodicals
flats and irregular parcels and Enhanced Carrier Route rate Standard
Mail (A) flats yields 5-digit scheme carrier routes sacks for those 5-
digit ZIP Codes listed in L001 and 5-digit carrier routes sacks for
other areas. The 5-digit ZIP Codes in each scheme are treated as a
single presort destination subject to a single minimum sack volume,
with no further separation by 5-digit ZIP Code required. Sacks prepared
for a 5-digit scheme destination that contain packages for only one of
the schemed 5-digit areas are still considered 5-digit scheme sorted
and are labeled accordingly. The 5-digit/scheme sort is required for
carrier route rate flat-size and irregular parcel Periodicals and flat-
size Enhanced Carrier Route rate Standard Mail (A) in sacks and may not
be used for mail at other rates in sacks.
i. A 5-digit/scheme sort for Periodicals flats and irregular
parcels and Standard Mail (A) flats prepared as packages on pallets
yields 5-digit scheme pallets for those 5-digit ZIP Codes listed in
L001 and 5-digit pallets for other areas. The 5-digit ZIP Codes in each
scheme are treated as a single presort destination subject to a single
minimum pallet volume, with no further separation by 5-digit ZIP Code
required. Pallets prepared for a 5-digit scheme destination that
contain packages for only one of the schemed 5-digit areas are still
considered 5-digit scheme sorted and are labeled accordingly. The 5-
digit/scheme sort is required for flat-size and irregular parcel-size
Periodicals and flat-size Enhanced Carrier Route rate Standard Mail (A)
prepared as packages on pallets and may not be used for other mail
prepared on pallets, except for packages of Standard Mail (A) irregular
parcels that are part of a mailing job that is prepared in part as
palletized flats at automation rates.
* * * * *
M030 General Preparation Standards
M031 Labels
* * * * *
4.0 PALLET LABELS
* * * * *
4.8 Delivery Unit, SCF, DDU, and DSCF Rates
[Amend 4.8 to refer to 5-digit/scheme pallets, as follows:] If a 5-
digit, 5-digit/scheme, 3-digit, or SCF pallet contains copies claimed
at Periodicals delivery unit and SCF zone rates, or Standard Mail DDU
and DSCF rates, as applicable, the content line of the pallet label
must show the designation ``DDU/SCF,'' after the content description.
* * * * *
5.0 SECOND LINE CODES
[Amend 5.0 to include code for 5-digit scheme carrier routes sacks, as
follows:] The codes shown below must be used as appropriate on Line 2
of sack, tray, and pallet labels.
------------------------------------------------------------------------
Content type *COM022*Code
------------------------------------------------------------------------
* * * * *
Scheme..................................... SCH
------------------------------------------------------------------------
(Periodicals and Standard Mail (A) 5-digit scheme carrier routes sacks
and 5-digit scheme pallets only)
* * * * *
M032 Barcoded Labels
1.0 BASIC STANDARDS--TRAY AND SACK LABELS
* * * * *
Exhibit 1.3a 3-Digit Content Identifier Numbers
[Amend Exhibit 1.3a, Periodicals (PER) and Standard (A) by inserting
new 5-digit scheme carrier routes sacks and 5-digit scheme Enhanced
Carrier Routes sacks categories, respectively, to read as follows:]
* * * * *
----------------------------------------------------------------------------------------------------------------
Class and mailing CIN Human-Readable content line
----------------------------------------------------------------------------------------------------------------
* * * * * *
*
Periodicals (Per)
* * * * * *
*
PER Flats--Carrier Route:
[[Page 57993]]
* * * * * *
*
5-digit carrier routes sacks................. 386 PER FLTS CR-RTS.
5-digit scheme car. rts. Sacks............... SCH XXX PER FLTS CR-RTS.
* * * * * *
*
PER Parcels--Carrier Route:
* * * * * *
*
5-digit carrier routes sacks................. 386 PER IRREG CR-RTS.
5-digit scheme car. rts. Sacks............... SCH XXX PER IRREG CR-RTS.
* * * * * *
*
Periodicals (News)
* * * * * *
*
NEWS Flats--Carrier Route:
* * * * * *
*
5-digit carrier routes sacks................. 486 NEWS FLTS CR-RTS.
5-digit scheme car. rts. sacks............... SCH XXX NEWS FLTS CR-RTS.
* * * * * *
*
NEWS Parcels--Carrier Route:
* * * * * *
*
5-digit carrier routes sacks................. 386 NEWS IRREG CR-RTS.
5-digit scheme car. rts. Sacks............... SCH XXX NEWS IRREG CR-RTS.
* * * * * *
*
Standard Mail (A)
* * * * * *
*
Enhanced Carrier Route Flats--Nonautomation:
* * * * * *
*
5-digit carrier routes sacks................. 586 STD FLTS CR-RTS.
5-digit scheme car. rts. Sacks............... SCH XXX STD FLTS CR-RTS.
* * * * * *
*
----------------------------------------------------------------------------------------------------------------
M033 Sacks And Trays
1.0 BASIC STANDARDS
* * * * *
1.7 Origin/Entry SCF/Plant Sacks and Trays
[Amend the first sentence in 1.7 to refer to preparation of required 5-
digit/scheme carrier routes sacks for Periodicals and Standard Mail
(A), as follows:] After all required carrier route, 5-digit (and, where
permitted, 5-digit/scheme), 3-digit (and, where permitted, 3-digit
scheme) sacks/trays are prepared * * *
* * * * *
M040 Pallets
M041 General Standards
* * * * *
5.0 PREPARATION
[Amend 5.1 and 5.2 to indicate that pallet sortation using package
reallocation may not always require sorting a mailing to the finest
level as follows: (note that 5.1 is as amended effective October 4,
1998, with the elimination of options to prepare flats on mixed ADC and
mixed BMC pallets)]
5.1 Presort
Pallet preparation and pallet sortation are subject to the specific
standards in M045. Pallet sortation is generally intended to presort
the palletized portion of a mailing to at least the finest extent
required for the corresponding class of mail and method of preparation.
Pallet sortation is sequential from the lowest (finest) level to the
highest and must be completed at each required level before the next
optional or required level is prepared. Standard preparation terms and
presort levels for pallets are defined in M011 and M045. For sacks,
trays, or machinable parcels on pallets, the mailer must prepare all
required pallet levels before any mixed ADC or mixed BMC pallets are
prepared for a mailing or job. Packages and bundles prepared under M045
must not be placed on mixed ADC or mixed BMC pallets. Packages and
bundles that cannot be placed on pallets must prepared in sacks under
the standards for the rate claimed. The standards for package
reallocation (M045.5.0), an optional method of pallet preparation, are
designed to retain as much mail as possible at the SCF level and may
result in some packages of Periodicals flats and irregular parcels and
Standard Mail (A) flats, and irregular parcels that are part of a
mailing job that is prepared in part as palletized flats at automation
rates, not being placed on the finest level of pallet possible. Mailers
must use PAVE-certified presort software to prepare mailings using
package reallocation.
[[Page 57994]]
5.2 Required Preparation
A pallet must be prepared to a required sortation level when there
are 500 pounds of Periodicals or Standard Mail packages, sacks, or
parcels or six layers of Periodicals or Standard Mail (A) letter trays.
For packages of Periodicals flats and irregular parcels and packages of
Standard Mail (A) flats on pallets prepared under the standards for
package reallocation (M045.5.0), not all mail for a required 5-digit/
scheme destination is required to be on a 5-digit/scheme pallet. Mixed
pallets of sacks, trays, or machinable parcels must be labeled to the
BMC or ADC (as appropriate) serving the post office where mailings are
entered into the mailstream. The processing and distribution manager of
that facility may issue a written authorization to the mailer to label
mixed BMC or mixed ADC pallets to the post office or processing and
distribution center serving the post office where mailings are entered.
These pallets contain all mail remaining after required and optional
pallets are prepared to finer sortation levels under M045, as
appropriate.
* * * * *
6.0 COPALLETIZED, COMBINED, OR MIXED-RATE LEVEL MAILINGS OF FLAT-SIZE
PIECES
* * * * *
[Amend 6.3 and 6.4 to indicate that pallet sortation using package
reallocation may not always require sorting a mailing to the finest
level, as follows:]
6.3 Periodicals Publications
To combine more than one Periodicals publication on pallets, the
mailer must merge and presort copies of all the publications into
common packages to achieve the finest presort level for the combined
mailing. To copalletize different Periodicals flat-size publications,
the mailer must consolidate on pallets all independently sorted
packages for each publication to achieve the finest presort level for
the mailing, except that a copalletized mailing prepared under
M045.5.0, using package reallocation, may not always result in all
packages being placed on the finest pallet level possible. Both
combining and copalletizing publications must be supported by the
documentation required in M045. Preferred Periodicals may be combined
with Regular Periodicals only as permitted by standard.
6.4 Standard Mail (A)
To copalletize different Standard Mail (A) flat-size mailings, the
mailer must consolidate on pallets all independently sorted packages
from each mailing to achieve the finest presort level for the mailing,
except that a copalletized mailing prepared under M045.5.0, using
package reallocation, may not always result in all packages being
placed on the finest pallet level possible. At the time of mailing, the
mailer must present computer-generated listings required in M045 that
include a summary list consolidating the copalletized multiple mailings
and a list of the contents of each pallet by ZIP Code and presort
level.
* * * * *
M045 Palletized Mailings
* * * * *
4.0 PALLET PRESORT AND LABELING
4.1 Packages, Bundles, Sacks, or Trays
[Amend 4.1a to reflect that the 5-digit sortation is for sacks and
trays; add new 4.1b requiring 5-digit/scheme sort for packages of
Periodicals and Standard Mail (A) flats; and renumber 4.1b through e as
4.1c through f, as follows:]
Preparation sequence and Line 1 labeling:
a. 5-digit: required for sacks; optional for trays; for Line 1, use
5-digit ZIP Code destination of contents.
b. 5-digit/scheme: required for Periodicals and Standard Mail (A)
packages and bundles; for Line 1 for 5-digit pallets, use 5-digit ZIP
Code destination of contents; for Line 1 for 5-digit scheme pallets,
use L001, column B.
* * * * *
4.4 Line 2
[Amend 4.4 to require ``SCHEME'' OR ``SCH'' to appear on 5-digit scheme
pallets of Periodicals or Standard Mail (A), as follows:]
Line 2, class of mail (shown below, as appropriate), processing
category and mail type (e.g., ``MACH,'' ``LTRS BC''), ``SCHEME'' or
``SCH'' for 5-digit scheme pallets of Periodicals or Standard Mail (A),
and any processing code required by the applicable labeling list under
4.1, 4.2, and 4.3:
* * * * *
[Add section 5.0 to specify preparation requirements for package
reallocation; and renumber sections 5.0 to 12.0, (as published in DMM
Issue 54 incorporating changes for R-97), as 6.0 through 13.0, as
follows:]
5.0 PACKAGE REALLOCATION FOR PERIODICALS FLATS AND IRREGULAR PARCELS
AND STANDARD MAIL (A) FLATS ON PALLETS
5.1 Basic Standards
Package reallocation is an optional preparation method; only PAVE-
certified presort software may be used to create pallets under the
standards in 5.2 through 5.4. The software will determine if mail for
an SCF service area would fall beyond the SCF level if all required 5-
digit/scheme and optional 3-digit pallets are prepared. The SCF pallet
level serves as a dividing line and reallocation is performed only when
there is mail for the same SCF service area on both sides of the
dividing line. The amount of mail required to bring the mail that would
fall beyond the SCF level back to an SCF level pallet level is the
minimum volume that will be reallocated, where possible.
5.2 General Reallocation Rules
Reallocation rules:
a. Package preparation is not affected by the reallocation process.
Reallocate only complete packages and only the minimum number of
packages necessary to create an SCF pallet meeting the minimum pallet
weight. Based on the weight of individual pieces within a package, the
weight of mail that is reallocated may be slightly more than the
minimum volume required to create an SCF pallet.
b. Reallocate packages from the highest available pallet level
possible. If it is not possible to reallocate some mail from a 3-digit
pallet first; then attempt to eliminate a 3-digit pallet and reallocate
all mail from that pallet to create an SCF pallet; if mail cannot be
reallocated from a 3-digit pallet, then attempt to reallocate some mail
from a 5-digit/scheme pallet.
c. The reallocation process may result in the elimination of a 3-
digit pallet to create an SCF pallet, but a 5-digit/scheme pallet may
not be eliminated in order to create an SCF pallet.
d. When reallocating mail to create an SCF pallet, reallocate mail
from only one pallet. This may be accomplished by reallocating a
portion of a 3-digit pallet, reallocating all mail from a 3-digit
pallet, or reallocating a portion of a 5-digit/scheme pallet following
the sequence in 5.2b.
e. Mailers may use any minimum pallet weight(s) permitted by DMM
standards and may use different minimum weights for different pallet
levels in conjunction with package reallocation.
[[Page 57995]]
5.3 Reallocation of Packages if Optional 3-Digit Pallets are
Prepared
Reallocation rules:
a. Attempt to identify a 3-digit pallet of adequate weight that can
support reallocation of one or more packages to bring the mail that has
fallen through the SCF level back to the SCF level without eliminating
the pallet. A sufficient volume of mail must remain on the 3-digit
pallet after reallocation to meet the 3-digit pallet weight minimum
established by the mailer in compliance with applicable DMM standards.
If a 3-digit pallet of adequate weight is available, create an SCF
pallet by combining the reallocated mail from the 3-digit pallet with
the mail that would have fallen through the SCF level.
b. If no single 3-digit pallet within the SCF service area contains
an adequate volume of mail to allow reallocation of a portion of the
mail on a pallet as described in the previous step, then eliminate one
3-digit pallet and reallocate all of the mail to create an SCF pallet
by combining it with the mail that would have fallen through the SCF
level. The result will be that the software will not prepare one 3-
digit pallet for the SCF service area if it is detrimental to the SCF
pallet.
c. If there are no 3-digit pallets, attempt to identify a 5-digit/
scheme pallet of adequate weight to support reallocation of one or more
packages to bring the mail that would fall through the SCF level back
to the SCF level. A sufficient volume of mail must remain on the 5-
digit/scheme pallet after reallocation to meet the pallet weight
minimum established by the mailer in compliance with applicable DMM
standards. If a 5-digit/scheme pallet of adequate weight is available,
create an SCF pallet by combining the reallocated packages with the
mail that would have fallen through the SCF level.
d. If no single 5-digit/scheme pallet within the SCF service area
contains an adequate volume of mail to allow reallocation of a portion
of the mail on a pallet as described in c, then no packages will be
reallocated and an SCF pallet will not be prepared; the mail that falls
beyond the SCF pallet level must be placed on the appropriate level
pallet (ADC or BMC) or in the appropriate level sack.
5.4 Reallocation of Packages if Optional 3-Digit Pallets are Not
Prepared
Reallocation rules:
a. Attempt to identify a 5-digit/scheme pallet of adequate weight
to support reallocation of one or more packages to bring the mail that
would fall through the SCF level back to the SCF level. A sufficient
volume of mail must remain on the 5-digit/scheme pallet after
reallocation to meet the pallet weight minimum established by the
mailer in compliance with applicable DMM standards. If a 5-digit/scheme
pallet of adequate weight is available, create an SCF pallet by
combining the reallocated packages with the mail that would have fallen
through the SCF level.
b. If no single 5-digit/scheme pallet within the SCF service area
contains an adequate volume of mail to allow reallocation of a portion
of the mail on a pallet as described in a, then no packages will be
reallocated and an SCF pallet will not be prepared; the mail that falls
beyond the SCF pallet level must be placed on the appropriate level
pallet (ADC or BMC) or in the appropriate level sack.
5.5 Documentation
Mailings must be supported by documentation produced by PAVE-
certified software meeting the standards in P012.
* * * * *
M200 Periodicals (Nonautomation)
* * * * *
3.0 SACK PREPARATION (FLAT-SIZE PIECES AND IRREGULAR PARCELS)
3.1 Sack Preparation
[Amend 3.1b to reflect that the 5-digit/scheme carrier routes sort
replaces 5-digit carrier routes sort for flats and irregular parcels,
as follows:]
Sack size, preparation sequence, and Line 1 labeling:
* * * * *
b. 5-digit/scheme carrier routes (carrier route packages only):
required at 24 pieces, optional with one six-piece package minimum
except under 1.5; for Line 1 for 5-digit carrier routes sacks, use 5-
digit ZIP Code destination of contents; for Line 1 for 5-digit scheme
carrier routes sacks, use L001, column B.
* * * * *
3.2 Sack Line 2
[Add new 3.2e for 5-digit scheme carrier routes sacks; and renumber
3.2e through h as 3.2f through i, as follows:]
* * * * *
e. 5-digit scheme car. rts.: ``SCHEME''
* * * * *
M600 Standard Mail (Nonautomation)
* * * * *
M620 Enhanced Carrier Route Standard Mail
* * * * *
4.0 SACK PREPARATION-FLAT-SIZE PIECES AND IRREGULAR PARCELS
* * * * *
4.2 Sack Preparation
[Amend 4.2b and add new 4.2c, as follows:]
Sack size, preparation sequence, and Line 1 labeling:
* * * * *
b. 5-digit carrier routes: required (no minimum); for irregular
parcels; for Line 1, use 5-digit ZIP Code destination of packages,
preceded for military mail by the prefixes under M031.
c. 5-digit/scheme carrier routes: required (no minimum) for flats;
for Line 1, for 5-digit sacks, use 5-digit ZIP Code destination of
packages; for Line 1 for 5-digit scheme sacks, use L001, column B.
4.3 Sack Line 2
[Add new 4.3e for 5-digit scheme carrier routes sacks, as follows:]
* * * * *
e. 5-digit scheme car. rts.: ``SCHEME''
* * * * *
P Postage and Payment Methods
P000 Basic Information:
* * * * *
P012 Documentation
* * * * *
2.0 STANDARDIZED DOCUMENTATION-FIRST-CLASS MAIL, PERIODICALS, AND
STANDARD MAIL (A)
* * * * *
2.2 Format and Content
* * * * *
d. For packages on pallets, the body of the listing reporting these
required elements:
* * * * *
[Amend d(4) to add standards for identifying SCF pallets created as a
result of package reallocation by adding the following to the end of
the section:]
(4) * * * Document SCF pallets created as a result of package
reallocation under M045.5.0 on the USPS Qualification Report by
designating the protected SCF pallet with an identifier of ``PSCF.''
This identifier is only required to appear on the USPS Qualification
Report; it is not required to appear on pallet labels or on any other
mailing documentation.
* * * * *
[[Page 57996]]
2.4 Sortation Level
The actual sortation level (or corresponding abbreviation) is used
for the package, tray, sack, or pallet levels required by 2.2 and shown
below:
[Add new ``PSCF'' indicator to identify SCF pallets created as a result
of package reallocation under M045.5.0, as follows:]
------------------------------------------------------------------------
Sortation level Abbreviation
------------------------------------------------------------------------
* * * * *
SCF (pallets).............................. N/A.
SCF (pallets created from package PSCF.
reallocation).
* * * * *
------------------------------------------------------------------------
Neva R. Watson,
Attorney, Office of Legal Policy.
[FR Doc. 98-28803 Filed 10-28-98; 8:45 am]
BILLING CODE 7710-12-P
