[Federal Register Volume 64, Number 236 (Thursday, December 9, 1999)]
[Proposed Rules]
[Pages 68965-68967]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-31968]
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POSTAL SERVICE
39 CFR Part 111
Presentation of First-Class and Standard Mail (A) Automation
Letter Mail for Verification Under New SAVE Verification Procedures and
Revisions to Combined Postage Payment Standards
AGENCY: Postal Service.
ACTION: Proposed rule.
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SUMMARY: The Postal Service will implement new Standardized Acceptance
and Verification (SAVE) procedures for First-Class and Standard Mail
(A) automation letter mail in mid-December 1999. These new SAVE
procedures will replace existing verification procedures for many
First-Class and Standard Mail (A) automation letter mailings. To
facilitate these new SAVE procedures, the Postal Service is proposing
that, effective March 1, 2000, for mailings produced by MLOCRs and
barcode sorters, and effective July 1, 2000, for mailings produced by
other means, mailers of First-Class and Standard Mail (A) automation
letter rate mailings must physically separate Mixed AADC trays from
other mail when the mailings are presented to the Postal Service for
verification. In addition, for mailings of 10,000 or more pieces, the
Postal Service is proposing to eliminate the current option that
standardized documentation is not required with a mailing when the
exact rate of postage is affixed to each piece or when it consists of
identical weight pieces and is physically separated by rate category
when presented to the Postal Service for verification. Under the
proposal, effective March 1 for mailings produced by MLOCRs and barcode
sorters, and effective July 1 for mailings produced by other means,
each First-Class and Standard Mail (A) automation letter rate mailing
of 10,000 or more pieces must be accompanied by paper documentation in
a standardized format or, if authorized, with electronic documentation.
The Postal Service recently revised rate marking requirements for
MLOCR mailers and documentation requirements for mailers who
participate in automation letter mail value added refund (VAR) (DMM
P014.4.0) and combined postage payment systems (DMM P760). In addition
to these changes, the Postal Service is also hereby proposing,
effective March 1, 2000, to amend the DMM standards for combined
mailings to specify that First-Class Mail pieces weighing over one
ounce and paid with precanceled stamps will not be permitted to be
included in such mailings.
DATES: Comments must be received on or before January 10, 2000.
ADDRESSES: Mail or deliver written comments to the Manager, Mail
Preparation and Standards, USPS Headquarters, 475 L'Enfant Plaza SW,
Room 6800, Washington, DC 20260-2405. Copies of all written comments
will be available for inspection and photocopying 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: Lynn M. Martin, (202) 268-6351
(Domestic Mail Manual changes), or Scott Hamel, (703) 329-3660 (SAVE
procedures).
SUPPLEMENTARY INFORMATION: The Postal Service is working on a number of
fronts to help business mailers provide the highest quality of letter/
card mail possible. Programs such as the Coding Accuracy Support System
(CASS), Mail Quality Control (MQC), Presort Accuracy Validation and
Evaluation (PAVE), and Mail Preparation Total Quality Management
(MPTQM) provide quality assurance within the mailer's mail preparation
process so that mailings presented to the Postal Service are properly
prepared and can be handled efficiently.
Postal Service verification of mailings for proper preparation
before entry into the mailstream is also a form of quality control. The
Postal Service is moving toward greater use of technology in this
verification process using devices such as Automated Barcode Evaluation
(ABE), and proposed for early 2000 (initially for diagnostic purposes
only) use of portable barcode verifiers for barcodes on tray and sack
labels, and proposed for fall 2000, the Mailing Evaluation Readability
Lookup Instrument (MERLIN). Technology promises to be the most viable
and objective means of measuring quality. The Postal Service
recognizes, however, that there always will be a need for commensurate
manual verification procedures to cover instances when automated
devices are not available. The SAVE verification procedures are
primarily manual.
SAVE is the Postal Service's response to requests by business
mailers for a verification process that is predictable, fair,
consistent, and documented. SAVE also directs Postal Service attention
to where the risk of poor quality lies. There are two verification
levels and error rate thresholds under SAVE. The first level is for
mailers who have been
[[Page 68966]]
certified by the Postal Service under the Mail Preparation Total
Quality Management (MPTQM) program. The second level is for mailers who
are not part of the MPTQM program. Mailers who have made commitments to
quality under the MPTQM program will have certain portions of SAVE
verifications performed on a less frequent basis, or not at all if that
aspect of mail preparation is verified under MPTQM assurance reviews.
Under SAVE, mailers will receive feedback on the quality of their mail
to facilitate resolution of mail quality problems. SAVE incorporates
most of the separate procedures used today to verify mail. For example,
it employs the current ABE and short paid mail verification procedures.
However, under SAVE, various separate verification checks have been
standardized, made more complete, and structured. Corrective actions
have been clarified and more diagnostic information will be provided to
mailers. SAVE provides verification procedures for First-Class and
Standard Mail (A) automation letter mailings, including those submitted
under value added refund (VAR) procedures and combined mailing postage
payment systems. A standard 4% error tolerance will apply to mailings
verified under SAVE, including VAR and combined mailings. VAR mailings,
for the first time, will be treated like all other mailings when
postage adjustments become necessary. Rather than lose a value added
refund when the error tolerance is exceeded, VAR mailers will pay a
postage adjustment.
The amount of additional postage that must be paid for a mailing
exceeding the 4% error tolerance under SAVE procedures will be
calculated by determining the difference between the First-Class
single-piece rate postage (based on weight) and the average weight per
piece based on the First-Class or Standard Mail (A) automation letter
rates claimed by the mailer. This difference in postage per piece will
be multiplied by the number of pieces in the mailing to determine the
total workshare discount. The total workshare discount will be
multiplied by the verification error percentage to determine the
additional postage due.
Mailers were provided information about SAVE in business sessions
at the last two Postal Forums. During Postal Forum sessions the primary
Postal Service SAVE development technician explained the procedures in
great detail and demonstrated the forms to be used, and the process for
checking mail and determining postage adjustments. Several detailed
presentations also have been made to members of the National
Association of Presort Mailers, at their request. In addition, every
MLOCR mailer in the country was invited by letter to a special meeting
in April 1999 to hear about SAVE and other topics. Feedback from these
groups was used when designing the procedures. Notice of the start-up
of SAVE procedures for First-Class and Standard Mail (A) automation
letter mail prepared with MLOCRs and/or barcode sorters beginning in
the middle of December 1999 was announced in the December 2, 1999,
Postal Bulletin. That Postal Bulletin contains information concerning a
phase-in period from mid-December 1999 through February 29, 2000.
During the phase-in period, mailings found to have errors under the
SAVE verification procedures will not be assessed additional postage
unless the error rate for the mailing is 5% or more.
These SAVE standards apply to the initial acceptance procedures
applied by the business mail entry unit. Nothing in SAVE or other
verification procedures prevents independent review of mail by Revenue
Assurance, the Inspection Service, the Office of Inspector General, or
others. Nor do they prevent a postage adjustment based on these
reviews. In instances of fraud or related activities, the postage
adjustment may be based on the mail as presented to the Postal Service
even if the overall error rate is less than that established in these
procedures.
This proposed rule requests comments from mailers on two key mail
preparation changes that are necessary for smooth application of the
SAVE verification procedures. The first change will require mailers of
First-Class and Standard Mail (A) automation letter mail to separate
mixed AADC trays from other mail when presented to the Postal Service
for verification. The second change will require submission of
standardized documentation with all mailings of First-Class and
Standard Mail (A) automation letter mail that contain 10,000 or more
pieces. That is, the current provision allowing mailers to submit
mailings without documentation if the mailings either (1) have exact
postage affixed to each piece or (2) consist of identical weight pieces
that are physically separated by rate category when presented to the
Postal Service for verification will be deleted for mailings of 10,000
or more pieces.
As part of its efforts towards a standardized process, the Postal
Service has separately adopted several clearer, standardized reports to
be presented by the mailer with First-Class and Standard Mail (A)
automation mailings that are submitted under VAR and/or combined
postage payment systems. In addition, the Postal Service has announced
new marking requirements for First-Class and Standard Mail (A)
automation letter mailings that are prepared using MLOCRs and for which
the MLOCR is used to apply the rate marking. These new marking and
documentation requirements were developed in conjunction with MLOCR
manufacturers and supporting software vendors and were announced and
discussed at a special MLOCR users group meeting and at the last two
Postal Forums. The Domestic Mail Manual changes incorporating the new
marking and documentation requirements were published in the Postal
Bulletin of December 2, 1999. The documentation formats have been
incorporated in software provided by MLOCR manufacturers. If copies of
the documentation are not available from an MLOCR vendor, sample copies
may be obtained from the Rates and Classification Service Center (RCSC)
that serves a particular mailer. Beginning January 3, 2000, the new
markings must be used on pieces in First-Class and Standard Mail (A)
automation letter mailings that are prepared using MLOCRs and for which
the MLOCR is used to apply the rate marking. Also effective January 3,
2000, all mailers entering mail under VAR and/or combined postage
payment procedures (DMM P014 and P760) will be required to meet the new
documentation requirements. During the SAVE verification process, the
new markings and documentation will help business mail acceptance
clerks determine if the proper amount of postage has been claimed by
the mailer.
Separate from these mail preparation revisions, but as part of the
update to the procedures for submitting mailings under the combined
mailing postage payment system, the Postal Service is hereby proposing
to clarify the standards concerning precanceled stamp mail contained in
such mailings. The change limits the weight of First-Class Mail
prepared with precanceled stamps that are entered under the combined
mailing postage payment system to pieces weighing a maximum of one
ounce. The Postal Service does not provide a precanceled stamp that
represents postage for additional ounces of First-Class Mail. Therefore
First-Class rate precanceled stamp mailers would only be able to affix
postage for any additional ounces for pieces weighing over one ounce if
they had a permit for mailer precancelation under DMM P023.
Additionally, for pieces weighing over two ounces, precanceled stamp
[[Page 68967]]
mailers would not be able to affix postage for the first ounce that
reflects the lower first-ounce rate for presorted pieces weighing over
two ounces, as is required for metered mailers under this postage
payment procedure. The additional documentation that would be required
to be added to combined mailing procedures to document postage paid and
owed for precanceled stamp pieces weighing over one ounce would be
extremely burdensome. Furthermore, the Postal Service understands that
there are few mailers, if any, that have a need to include First-Class
mail weighing over one ounce and paid with precanceled stamps in
combined mailings under DMM P760. Accordingly, the Postal Service
proposes to revise the DMM to specify that First-Class precanceled
stamp mail weighing over one ounce may not be included in combined
mailings.
In summary, the proposed Domestic Mail Manual changes needed to
implement the new verification procedures for automation letter
mailings and to revise the requirements for combined mailings are:
(1) For First-Class and Standard Mail (A) automation letter
mailings, mixed AADC trays must be physically separated from other
trays when the mail is presented to the USPS for verification. The
proposed effective date for this change is March 1, 2000, for mail
produced by MLOCRs and barcode sorters, and July 1, 2000, for other
automation letter mail.
(2) For all First-Class and Standard Mail (A) automation letter
mailings containing 10,000 or more pieces, documentation must be
submitted on paper in a standardized format. Alternatively, if
authorized by the Postal Service, the standardized documentation may be
submitted in an electronic format. The proposed effective date for this
change is March 1, 2000, for mail produced by MLOCRs and barcode
sorters, and July 1, 2000, for other automation letter mail.
(3) The Postal Service proposes to amend the DMM standards for
combined mailings to prohibit inclusion in such mailings of First-Class
Mail pieces that weigh over one ounce and are paid with precanceled
stamps. The proposed effective date for this revision is March 1, 2000.
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 to 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.
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 set
forth below:
M000 General Preparation Standards
* * * * *
M800 All Automation Mail
M810 Letter-Size Mail
1.0 Basic Standards
* * * * *
[Amend 1.3 to read as follows:]
1.3 Documentation
A complete, signed postage statement, using the correct USPS form
or an approved facsimile, must accompany each mailing. Each mailing
must also be accompanied by presort and rate documentation produced by
PAVE-certified (or, except for Periodicals, MAC-certified) software or
by standardized documentation under P012. Exception: For mailings of
fewer than 10,000 pieces, presort and rate documentation is not
required if postage at the correct rate is affixed to each piece or if
each piece is of identical weight and the pieces are separated by rate
when presented for acceptance. Mailers may use a single postage
statement and a single documentation report for all rate levels in a
single mailing. Standard Mail (A) mailers may use a single postage
statement and a single documentation report (with a separate summary
for carrier route and a separate summary for all other rate levels) for
both an automation carrier route mailing and a mailing containing
pieces prepared at 5-digit, 3-digit, and basic automation rates as
applicable, when both mailings are submitted for entry at the same
time. Combined mailings of more than one Periodicals publication also
must be documented under M200. First-Class and Standard Mail (A)
mailings prepared under the value added refund procedures or as
combined mailings must meet additional standardized documentation
requirements under P014 and P760.
* * * * *
[New 1.8 is added to read as follows:]
1.8 Presentation
Upon presentation of letter-size automation rate First-Class Mail
and Standard Mail (A) mailings to the Postal Service for verification,
mailers must physically segregate mixed AADC trays from other trays in
the mailing.
* * * * *
P Postage and Payment Methods
P000 Basic Information
* * * * *
P700 Special Postage Payment Systems
* * * * *
P760 First-Class or Standard Mail (A) Mailings With Different Payment
Methods
* * * * *
2.0 Postage
* * * * *
[Amend 2.3 to restrict precanceled stamp pieces to those weighing
one ounce or less to read as follows:]
2.3 Precanceled Pieces--First-Class Mail
Pieces with precanceled stamps in a combined mailing must not weigh
more than one ounce and must bear postage for the first ounce in any
denomination of precanceled stamp permitted in a Presorted or
automation rate mailing. Additional postage due for precanceled stamp
pieces in a combined mailing is deducted from the mailer's postage due
advance deposit account. Full postage at the single-piece First-Class
rates must be paid on accompanying single-piece rate mail using one of
the methods under P100. Additional preparation to verify postage due
may be required by the Postal Service.
* * * * *
An appropriate amendment to 39 CFR 111.3 to reflect these changes
will be published if the proposal is adopted.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 99-31968 Filed 12-8-99; 8:45 am]
BILLING CODE 7710-12-P
