[Federal Register Volume 61, Number 49 (Tuesday, March 12, 1996)] [Rules and Regulations] [Pages 10068-10217] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-5500] [[Page 10067]] _______________________________________________________________________ Part II Postal Service _______________________________________________________________________ 39 CFR Part 111 Classification Reform; Implementation Standards; Final Rule Federal Register / Vol. 61, No. 49 / Tuesday, March 12, 1996 / Rules and Regulations [[Page 10068]] POSTAL SERVICE 39 CFR Part 111 Classification Reform; Implementation Standards AGENCY: Postal Service. ACTION: Final rule; request for comments. ----------------------------------------------------------------------- SUMMARY: This final rule sets forth the Domestic Mail Manual (DMM) standards adopted by the Postal Service to implement the Decision of the Governors of the Postal Service in Postal Rate Commission Docket No. MC95-1, Classification Reform I, and requests further comments on some aspects of those standards. DATES: The final rule is effective on July 1, 1996. Comments as allowed herein must be received on or before March 27, 1996. ADDRESSES: Mail or deliver written comments to the Manager, Customer Mail Preparation, USPS Headquarters, 475 L'Enfant Plaza SW, Washington, DC 20260-2405. Copies of all written comments will be available for inspection and photocopying between 9 a.m. and 4 p.m., Monday through Friday, in Room 6830 at the above address. FOR FURTHER INFORMATION CONTACT: Leo F. Raymond, (202) 268-5199, concerning the DMM standards, or Lynn Martin, (202) 268-6351, concerning the comments analysis. SUPPLEMENTARY INFORMATION: On March 24, 1995, pursuant to its authority under 39 U.S.C. 3621, et seq., the Postal Service filed with the Postal Rate Commission (PRC) a request for a recommended decision on a number of mail classification reform proposals (Classification Reform). The PRC designated the filing as Docket No. MC95-1. The PRC published a notice of the filing, with a description of the Postal Service's proposals, on April 3, 1995, in the Federal Register (60 FR 16888- 16893). On June 29, 1995, the Postal Service published for public comment in the Federal Register an advance notice of proposed rulemaking (60 FR 34056-34069). That notice included an overview of the Postal Service's proposals in MC95-1, the process that was used in developing them, and the process being used to prepare for implementation of Classification Reform and to begin development of the Domestic Mail Manual (DMM) implementing standards. The notice also contained detailed information about issues that had been identified for consideration in the implementation process, presented in a format that paralleled the Domestic Mail Classification Schedule (DMCS) changes proposed in the MC95-1 filing. Many of those implementation issues had been developed with the advice of the Classification Reform Implementation Advisory Groups (IAGs) convened by the Postal Service as part of the process described in the notice. The advance notice requested comments on the criteria under consideration for inclusion in proposed DMM implementing standards. Readers who are unfamiliar with the content of the Postal Service's MC95-1 filing or the implementation process should review the June 29 notice. On August 30, 1995, the Postal Service published for public comment in the Federal Register a second advance notice of proposed rulemaking (60 FR 45298-45323). The second notice reported a summary of the comments received in response to the first notice and invited further comment from interested parties on updated proposed implementing standards and on the implementation process generally. Readers were advised that, following review of comments received in response to the second notice, the Postal Service would revise its proposed implementation criteria as appropriate and would use those criteria as the basis for the DMM standards it would propose for adoption if the Classification Reform proposals requested by the Postal Service in PRC Docket No. MC95-1 were adopted. On December 22, 1995, the Postal Service published for public comment in the Federal Register a proposed rule (60 FR 66582-66703) that summarized and responded to comments received from the August notice; offered extensive details about contents of the proposed rule that were new or modified compared to the earlier notices and assessed their possible impact on the mailing community; offered simplified charts to illustrate proposed mail preparation standards; supplied an estimated list of 5-digit ZIP Codes affected by one of its proposals; and concluded with a complete listing of changes to the standards in the DMM that it proposed to adopt if the Classification Reform proposals requested by the Postal Service in PRC Docket No. MC95-1 were recommended by the PRC and approved by the Governors of the Postal Service. Pursuant to 39 U.S.C. 3624, on January 26, 1996, the PRC issued its Recommended Decision on the Postal Service's Request to the Governors of the Postal Service. The PRC recommendations made revisions to some of the mail classification structure and rates requested by the Postal Service. Based on an extensive analysis of the PRC's Recommended Decision and deliberation as to its consequences to the Postal Service and its customers, and pursuant to 39 U.S.C. 3625, the Governors acted on the PRC's recommendations on March 4, 1996. Decision of the Governors of the United States Postal Service on the Recommended Decision of the Postal Rate Commission on Classification Reform I, Docket No. MC95-1. With the exception of the PRC's separate courtesy envelope mail and bulk parcel post proposals, the Governors determined to approve the PRC's recommendations, and the Board of Governors set an implementation date of July 1, 1996, for those rate and classification changes to take effect. A notice announcing the Governors' Decision and the issuance of final Domestic Mail Classification Schedule and Rate Schedule changes is published elsewhere in this issue of the Federal Register. This final rule contains the DMM standards adopted by the Postal Service to implement the Governors' decision. Except as specifically noted below, the revised DMM standards will take effect on July 1, 1996. In its testimony before the PRC, the Postal Service presented extensive evidence concerning the prudence and necessity of certain fundamental changes it was seeking to cause or facilitate in the mailstreams it processes. Most if not all of those changes were not founded in a particular rate or classification scheme, although the Postal Service considered that the incentives offered in its requested structure make it easier for customers to accept or benefit from those changes. Many components of the proposed rule reflected basic operational and network changes designed to improve the Postal Service's ability to encourage, manage, and benefit from automated mail, to improve mailflow, and to focus processing activities at a redesigned matrix of node facilities. As a result, despite the differences between the Postal Service's Request and the PRC's recommendation which the Governors have approved, the value and efficacy of those elements of the proposed rule related to mail quality, preparation, automation, and equipment and network utilization remain undiminished. As a result, the content of the proposed rule has been adopted as a final rule except as described below to correct factual or typographical errors, respond to comments received, or align with the rate and classification [[Page 10069]] structure recommended by the PRC and approved by the Governors. Because the PRC's Recommended Decision, as approved by the Governors, made significant changes to the mail classification structure requested by the Postal Service, adaptation of the proposed rule to the final structure has been necessitated in the final rule. Most of these changes are a direct consequence of the difference between the rate and classification changes proposed by the Postal Service and those recommended by the PRC and approved by the Governors. These were matters at issue in the PRC proceeding and, as such, are not subject to review or adjustment in this rulemaking. To the extent this final rule establishes further standards that were not previously published for public comment, the Postal Service has determined to seek and consider additional input from customers. This further opportunity for public comment is limited to matters that are newly introduced in the final rule, that do not result from the difference in recommended rate and classification provisions, and that are significant in their impact on customers compared with what was proposed in the proposed rule. The provisions for which comments are solicited are: 1. New standards applied to Periodicals that are similar to those adopted in this final rule for First-Class and Standard Mail: a. All pieces in an automation rate mailing must be delivery point barcoded. b. Presort and other preparation standards, including a 150-piece minimum for preparing trays of automation rate letter-size mail. c. 5-digit ZIP Codes used in the addresses on nonautomation rate Periodicals must be verified annually for accuracy; mailers must certify this at the time of mailing.. d. Letter-size reply envelopes and cards enclosed in automation rate pieces must meet specific standards for automation-compatibility; mailers must certify this at the time of mailing. 2. Standards for documentation produced by Presort Accuracy Validation and Evaluation (PAVE) certified software and for standardized documentation produced otherwise. These standards are presented in P012, below; examples of documentation are also presented as part of this notice. After considering the potential impact of these provisions, the Postal Service has determined to allow 15 days for public comment. Although a longer comment period is usually provided, the Postal Service concluded that a 15-day comment period was warranted in this case for two reasons. First, the list of provisions on which comment is sought is limited and straightforward. Mailers should have little difficulty evaluating the impact of these provisions on their operations and preparing comments in a short time period. Second, the Postal Service wants to ensure that mailers have sufficient time after the close of the comment period and publication of any possible revisions to this final rule to make the necessary changes to their operations before the July 1, 1996 implementation date. After review of the comments received, the Postal Service will modify the corresponding standards if such modification is determined to be appropriate. Part A of this notice summarizes major changes that have been made to or added to the proposed implementation standards since the proposed rule. Part B provides an analysis of comments received on the proposed rule and the Postal Service responses. Part C shows examples of standardized documentation that would be generated under the standards shown below. Part D summarizes the changes to the DMM, followed by the text of the revised DMM standards. A. Major Changes and Additions Since the December 22 Proposed Rule This section identifies additions and changes to the final DMM mailing standards that were not part of the proposed rules published on December 22. 1. Marking Standards Marking standards have been revised to allow mailers to continue to use ``Presorted First-Class'' and ``Bulk Rate'' markings as class of mail markings for presorted First-Class and Standard Mail. These markings must appear in the postage area on mailpieces. Additional mailing or rate specific markings are also required. This change will allow mailers to continue to use existing envelope stock, precanceled stamps, and meter slugs. 2. Postage Payment Revisions have been made to postage payment standards to allow mailers to affix metered postage to all the pieces in a mailing job at the lowest rate that applies to any presorted mailing contained in the mailing job. 3. Value Added Refund The proposal that would have required all pieces in a value added refund (VAR) mailing to have postage affixed at an automation rate has been removed. First-Class mailpieces bearing postage at Presorted First-Class rates will be acceptable for inclusion in automation First- Class VAR mailings, and Standard Mail pieces bearing postage at presorted nonautomation Regular rates will be acceptable for inclusion in automation Standard Mail VAR mailings. 4. Minimum Quantity Per Mailing In accordance with the Domestic Mail Classification Schedule standards approved by the Governors, separate 500-piece minimum quantity per mailing standards have been established for mailings of cards in addition to those which apply to letters. Mailers may continue to combine comparably prepared letters and cards in the same mailings if the separate minimums are met and additional postage payment and documentation standards are met. 5. Postage Statements Mailing statements have been renamed postage statements to clarify the new standards that will allow all mailings submitted for verification as part of the same mailing job to be reported on a single postage statement. 6. Sleeving and Banding The proposed sleeving and banding standards for trayed letter mail have been modified. There will be no exceptions to sleeving. Exceptions to strapping of local mail have been extended to allow such exceptions for mail entered and delivered within the service area of the SCF serving the entry post office if approved by local management. The proposal had limited this exception only to mail entered and delivered within the service area of the facility where the mail was entered. The DMM palletization standards have been modified to make it clear that only trayed mail on stretchwrapped 5-digit, 3-digit, and SCF pallets are exempt from tray-strapping. 7. Packaging Material The proposal has been removed that required use of only rubber bands to prepare packages within automation letter mailings. Upon implementation of Classification Reform, mailers may continue to prepare these packages using either rubber bands, elastic strapping, plastic strapping or string. However, the Postal Service plans to require use of rubber bands or elastic strapping for automation mailings at a future date and will work with mailers on the timing of this standard. [[Page 10070]] 8. Courtesy Reply Mail in Automation Mailings The standards have been revised concerning courtesy envelope and business reply mail enclosed in pieces mailed at First-Class or Standard Mail automation rates. The final rule also applies these standards to automation Regular Periodicals. The proposal indicated that the enclosed reply pieces must all bear a delivery point barcode, in addition to being automation-compatible and bearing a FIM. Under the final rule, the barcode standards have been revised to indicate that ZIP+4 barcodes are required for business reply mail and that courtesy reply mail must bear the correct delivery point barcode for the delivery address as defined by the Postal Service. Unique 5-digit and ZIP+4 barcodes provided by the Postal Service for use with courtesy reply mail will be considered valid delivery point barcodes for purposes of meeting this standard. In addition, the final rule requires that the enclosed reply mail pieces meet the barcode preparation standards in DMM C840. The standards concerning reply mail enclosed in First-Class, Standard Mail and Periodicals automation rate mailings are effective January 1, 1997. Comments are permitted on the extension of this requirement to Periodicals. 9. 3-Digit Schemes for Automation Letters Use of 3-digit scheme sort will be required for automation letters. This standard will allow mailers to obtain the finest discount level and the Postal Service to receive mail presorted to the finest extent possible. 10. Grouping of Pieces in AADC Trays Within mixed AADC trays in automation and upgradable letter mailings, the proposed standard to group pieces in those trays by both AADC, and within each AADC group, by 3-digit ZIP Code has been modified. Mail in these mixed AADC trays will be required to be grouped only by AADC area. 11. Specific Use of 1-Foot and 2-Foot Trays The traying standards for proper use of appropriate 1-foot and 2- foot trays have been clarified to specify the type of tray that must be used when mailers have a quantity of mail for a tray sortation level that exceeds the physical capacity of a 1-foot tray, but is less than the minimum quantity for a full 2-foot tray. For automation and upgradable mailings of other than card-size pieces, the Postal Service would like the fewest number of packages (which are only prepared in less-than-full trays). For these mailings, when the mail remaining after filling all possible 2-foot trays exceeds the physical capacity of a 1-foot tray, but is less than the minimum quantity for a full 2- foot tray, mailers must place this mail in two 1-foot trays (a full 1- foot tray (without packaging) and a less-than-full 1-foot tray (with packaging)). For nonautomation mailings and for automation and upgradable mailings consisting entirely of card-size pieces, which are prepared in banded packages, the Postal Service would like to receive the fewest number of trays. Therefore for nonautomation mailings, when the mail remaining after filling all possible 2-foot trays exceeds the physical capacity of a 1-foot tray, but is less than the minimum quantity for a full 2-foot tray, mailers must place this mail in a single less-than-full 2-foot tray. 12. Less-Than-Full 3-Digit Trays Modification has been made to the proposed standard to tray all mail for the 3-digit ZIP Codes served by the SCF of the entry post office to at least the 3-digit level. These rules now apply only to the SCF that serves the post office where the mailing is verified. 13. Modification to ADC Lists The ADC list in proposed DMM L004 has been modified to provide for some class-specific differences in labeling. In addition, separate ADC and Mixed ADC labeling lists for Standard Mail irregular parcels have been added as DMM L603 and L604. 14. Mixed ADC and AADC Tray Destinations for First-Class Mail Mixed ADC and mixed AADC trays in First-Class mailings will be labeled to the SCF that serves the entry post office rather than to the 3-digit ZIP Code of the entry post office. 15. Qualification of AADC and ADC Sort Levels for BMC Destination Entry Discounts Eligibility for destination BMC discounts for Standard Mail prepared in AADC trays and ADC trays, sacks, and packages on pallets has been clarified. The entire contents of these trays, sacks, or packages placed on pallets may receive a DBMC discount, provided that the ZIP Code in the top line of the tray or sack label, (or the ZIP Code assigned to the ADC in L004 for the package) is in the service area of the BMC at which the tray, sack, package on a pallet, is entered. 16. Revisions to Barcoded Tray Label Specifications The effective date for the standard to use barcoded tray and sack labels for mailings at automation First-Class, automation Standard, and automation Periodicals rates has been changed to January 1, 1997. 17. Revisions to Specifications for Mailer Prepared Tray and Sack Labels Adjustments and corrections have been made to the specifications in DMM M032 concerning mailer-prepared tray and sack labels, including barcoded labels. Mailers at all classes and rates are also reminded that effective July 1, 1996, tray, sack, and pallet labels used with their mailings must be revised to reflect the network changes, changes to the names of the classes of mail, and other labeling changes that will go into effect with these final DMM rules. 18. Enhanced Carrier Route Rates Separate letter and nonletter rates have been established by the Governors for the Standard Enhanced Carrier Route subclass. In addition, the automation carrier route rate proposed under a separate automation subclass has been recommended by the PRC and approved by the Governors as an automation Enhanced Carrier Route rate. Accordingly, automation Enhanced Carrier Route mailings must meet a separate minimum quantity requirement from mail at automation Regular Standard rates, and will be subject to the minimum per piece weight breakpoint for the Enhanced Carrier Route subclass. 19. Palletization of Mail Meeting Both Letter-Size and Automation Flat- Size Standards In the proposed rule, the Postal Service proposed an exception that would allow certain letter-size mail to be prepared as packages on pallets. Under this exception, mailers of pieces that meet both the letter and automation flats dimensions, and who mail a portion of their mailing job at the automation flats rates, would be permitted to prepare the entire mailing job (i.e., Enhanced Carrier Route, automation Regular, and nonautomation Regular mailings) as packages on pallets, provided the nonautomation Regular portion was 10% or less of the total pieces mailed at the Enhanced Carrier Route and automation Regular rates, and flat rates (non-letter rates) were paid on all pieces. The final rule will provide for this exception, but only until January 1, 1997. Beginning January 1, 1997, the Enhanced Carrier Route and nonautomation Regular portions of [[Page 10071]] mailing jobs of pieces that meet the definition of letter-size mail will be required to be trayed. Preparation of trays on pallets is preferred. This is consistent with the Postal Service's need to have all letter mail prepared in trays, and is discussed further in the section discussing comments. 20. Periodicals The proposed Publications Service subclass of Periodicals was not recommended to the Governors by the Postal Rate Commission. Instead revised rates for Regular Periodicals were recommended. These changes to Periodicals have been accepted by the Governors. As a consequence, the Postal Service has determined to modify the mail preparation and quality standards for entry at the Regular Periodicals rates. The standards set forth in this notice are final rules. Because many of these standards were not applied to all Periodicals mailers in the proposed rule, the Postal Service will permit comments on these standards. Unlike the proposed rule, there are no rates and corresponding preparation standards for automation carrier route mail; only mail sorted to 5-digit and unique 3-digit ZIP Code packages, trays, and sacks may qualify for applicable 3/5 rates; and zone rates apply only to advertising pounds. Like the proposed rule, optional city will no longer be a sortation level, and SDC, State, and Mixed States sortation levels have been replaced with the appropriate ADC and mixed ADC or AADC and mixed AADC sortation levels. a. Regular Periodicals Automation Rate Mailings (1) Letter-Size Pieces. Mailings must be presorted under standards similar to automation First-Class and Standard mailings. There is no automation carrier route mail preparation or rate. Mailers must sort mail to required 5-digit, required unique 3-digit, required 3-digit/ scheme, and required AADC trays, using a 150-piece minimum at each tray level. Remaining mail is trayed to mixed AADC trays. Only mail in 5- digit and unique 3-digit trays is eligible for 3/5 automation Regular Periodicals per-piece rates. Mail in 3-digit/scheme, AADC, and mixed AADC trays qualifies for basic automation per-piece rates. Both 1-foot and 2-foot tray sizes must be used as appropriate. Mailings must be 100% delivery point barcoded. Addresses must be matched semi-annually using CASS-certified software and a current AIS database. Barcoded tray labels will be required effective January 1, 1997. Use of PAVE-certified software or standardized documentation will be required effective January 1, 1997. Enclosed courtesy and business reply mail envelopes will be required to be automation-compatible and prepared with barcodes and FIM marks effective January 1, 1997. (2) Flat-Size Pieces. Firm and carrier route packages cannot be part of an Automation flats mailing. Mailers must prepare packages of 6 or more pieces to 5-digit, 3-digit, ADC and mixed ADC destinations and place them in 5-digit, 3-digit, ADC and mixed ADC sacks or on the appropriate level of pallet. Only pieces in 5-digit and unique 3-digit sacks (or in 5-digit and unique 3-digit packages placed on pallets), are eligible for the 3/5 automation Regular Periodicals per-piece rates. Pieces in non-unique 3-digit, ADC and mixed ADC sacks (and non- unique 3-digit, ADC and mixed ADC packages placed on pallets) will qualify for basic Automation per-piece rates. Mailings must be 100% ZIP+4 or delivery point barcoded. Addresses must be matched semi- annually using CASS-certified software and a current AIS database. Barcoded sack labels will be required effective January 1, 1997. Use of PAVE-certified software or standardized documentation will be required effective January 1, 1997. Enclosed courtesy and business reply mail envelopes will be required to be automation-compatible and prepared with barcodes and FIM marks effective January 1, 1997. b. Nonautomation Mailings (1) Letters. Mail must be prepared in trays. Both 1-foot and 2-foot trays must be used as appropriate. Firm packages are permitted and receive rates based on current criteria. Six-piece or larger carrier route packages must be placed in carrier route trays when there are at least 24 pieces for the tray, but trays with as few as one 6-piece package are acceptable. Remaining carrier route packages are placed in 5-digit carrier routes trays. Six-piece or larger 5-digit, 3-digit, ADC, and mixed ADC packages are prepared and must be placed in 5-digit, 3-digit, and ADC trays whenever there are at least 24 pieces for one of those tray destinations. Trays with as few as one 6-piece or larger package may be prepared. Remaining packages are placed in mixed ADC trays. Only mail in 5-digit or unique 3-digit trays qualifies for 3/5 nonautomation Regular Periodicals per-piece rates. Mail in non-unique 3-digit, ADC and mixed ADC trays qualifies for basic per-piece rates. The carrier route portion must be matched using CASS-Certified software to a current CRIS file or other AIS product containing carrier route codes, within 90 days prior to the date of mailing. No sequencing is required for basic carrier route rates. High Density and Saturation rate mail must be prepared in carrier walk sequence using a current USPS DSF or CDS file or other USPS sequencing service within 90 days prior to the date of mailing. Effective October 1, 1996, 5-digit ZIP Codes in each address in the non-carrier route portion of the mailing must have been verified and corrected within 12-months prior to the date of mailing by a USPS approved method. (2) Nonautomation Flats. Mail is sorted according to current DMM issue 49 standards except that there must now be a minimum of one 6- piece package in each sack other than a mixed ADC sack; the optional city package and sack level has been eliminated; and SDC, state, and mixed states packages and sacks have been replaced with ADC and mixed ADC packages and sacks. Only mail in 5-digit or unique 3-digit sacks (or in 5-digit or unique 3-digit packages on pallets) qualifies for 3/5 nonautomation Regular Periodicals per-piece rates. Mail in non-unique 3-digit, ADC, and mixed ADC packages and sacks qualifies for basic per- piece rates. The carrier route portion must be matched using CASS- Certified software to a current CRIS file or other AIS product containing carrier route codes, within 90 days prior to the date of mailing. No sequencing is required for basic carrier route rates. High Density and Saturation rate mail must be prepared in carrier walk sequence using a current USPS DSF or CDS file or other USPS sequencing service within 90 days prior to the date of mailing. Effective October 1, 1996, 5-digit ZIP Codes in each address in the non-carrier route portion of the mailing must have been verified and corrected within 12- months prior to the date of mailing by a USPS approved method. 21. Submission of Form 3553 A standard to submit a Form 3553, CASS Report, with automation carrier route First-Class, automation and nonautomation Enhanced Carrier Route Standard, and carrier route Regular Periodicals has been added to the final DMM standards. Submission of this report with each mailing will document that the addresses in these mailings were matched to a current database using CASS certified software within 90 days prior to the date of mailing. Mailings at carrier route Nonprofit Standard and carrier route Preferred Periodicals rates will not be required to be accompanied by a Form 3553 because the standard for use of CASS [[Page 10072]] certified address matching software will not apply to mailings at these rates (although the standard to update their carrier route information within 90 days prior to the date of mailing using a current database will apply). Comments will be accepted on the application of these rules to Regular Periodicals. B. Summary of Comments From the December 22 Proposed Rule The Postal Service received 64 pieces of correspondence offering comments on the December 22 proposed rule. Respondents included major mailer associations, individual publishers, printers, presort bureaus, and mailers. The specific points raised in the comments are presented below, organized by general comments and then by letters, flats, Periodicals and addressing. 1. General Comments a. Change in Name of Third-Class and Fourth-Class Mail to Standard Mail Three comments were received regarding the change in name of third- and fourth-class mail to Standard Mail. The Postal Service proposed, as part of Classification Reform, that mail matter currently designated as third-class and fourth-class be combined into a new single Standard Mail class. This change was not opposed in the Postal Rate Commission (PRC) proceeding and has been recommended by the PRC and approved by the Governors. The Postal Service will be publishing information on the name change in the Postal Bulletin and has other planned communication events and publications to raise the awareness level of all mailers and the general public of this change and the other changes needed to implement Classification Reform. b. Format of Final Mailing Standards for Classification Reform One commenter requested that entire DMM pages be published in the Postal Bulletin that transmits the mail preparation rules in this Federal Register notice and requested that any new wording be placed in bold. Due to limits on time, space, cost, and size of the document, the DMM standards published in the Postal Bulletin will follow the same format as this final rule and will contain only the sections that are changed. DMM issue 50, which will incorporate the new preparation standards will be distributed prior to implementation. c. Comments Beyond the Scope of this Rulemaking Process Ten commenters submitted comments requesting such things as a change in the rates, rate structure, minimum quantity standards for a rate category, or stated concerns about the structure of the future Classification Reform proposals for nonprofit mail, or suggested an implementation date for Classification Reform. One commenter requested that the Postal Service provide mailers its delivery performance data. These comments are beyond the scope of this rulemaking. The rates, rate structure, and basic standards for rates in MC-95-1 were subject to litigation before the Postal Rate Commission, and cannot be unilaterally revised by the Postal Service in a rulemaking process. Similarly, the date for implementation of MC95-1 is determined by the Board of Governors of the Postal Service and is outside the scope of this rulemaking. Comments concerning the structure of the future Classification Reform proposal for Nonprofit Mail have been noted, but are also outside the scope of this rulemaking process. d. General Comments on Mail Preparation Standards in the Proposed Rule Eight general comments were received regarding the preparation standards set forth in the proposed rule. One commenter was pleased to see the Federal Register notice published on the Postal Service electronic bulletin board (RIBBS). One indicated he found no problems or inequities with the proposed rule. The remaining six disagreed with the overall effect of the preparation rules. One of these indicated that the Postal Service is adding ``picky details`` to make the preparation standards complex. One indicated that some of the implementation standards may be exclusionary and create unnecessary barriers thereby creating growth of coarsely sorted and non-automated mail, exactly the opposite of the intended outcome of Classification Reform. Another commenter indicated that the preparation rules will negatively impact mailer cost and service. This commenter argued the proposed rules would keep more mailers out of automation thereby eliminating their reason to improve address quality, and leaving the USPS with more difficult-to-process mail. This commenter suggested that the Postal Service delay implementing unduly restrictive rules. Three commenters indicated a combination of several of the make-up standards for mail will increase preparation costs, listing such things as 1) the separate mailstreams for barcoded and non-barcoded mail; 2) the need to have 150 pieces to a 5-digit or 3-digit destination to obtain 5-digit and 3-digit automation rates; 3) the requirement to use barcoded tray labels on automation mailings; 4) the requirement for the mailer to strap all trays of letter mail; 5) the standard to prepare each subclass as a separate mailstream with separate subclass markings; 6) the required use of both 1-foot and 2-foot trays in letter-size mailings; 7) the standards to tray letter mail prior to palletizing it; 8) the decrease in drop shipment discounts when trucking costs may increase due to increased cost of preparing pallets and loss of cube space in trailers; and 9) the standards for purchasing and printing new reply mail pieces that bear barcodes and FIM marks for inclusion within pieces at automation rates. One commenter remarked that it did not appear the Postal Service gave serious consideration to mailer comments concerning these issues in the last Federal Register and requested that it give such attention in this rulemaking. Some of the items stated as concerns by these commenters involve issues that were at issue in the PRC proceeding, such as drop shipment discounts, and minimum quantity standards for mailings. The Postal Service cannot use rulemaking to change rates, discounts, and DMCS provisions that were recommended by the PRC and approved by the Governors. The Postal Service recognizes that under Classification Reform many mailers will be affected by new preparation criteria; however, the Postal Service believes that these preparation criteria are necessary to achieve the goal of encouraging mail that is efficient for the Postal Service to handle. e. Minimum Quantity Standards/Definition of a Mailing Ten comments were received concerning the application of minimum quantity standards to mailings and the definition of a mailing. These commenters had concerns about the proposed standard that each separate subclass and, within each subclass, each separate mail processing category, meet the appropriate 500-piece (First-Class) or 200-piece (Standard Mail) minimum quantity standard. Five commenters indicated the minimum quantity should apply to the combined subclasses in the physical mailing and not to each individual subclass. Six commenters similarly requested that mailers should be able to combine mailings of different subclasses and rate categories that are part of the same mailing job. Four commenters stated that applying the minimum to [[Page 10073]] each subclass could cause problems for qualifying non-barcoded mail because when using lists that have a high percentage of names that can be properly barcoded, there may not be enough pieces left over after preparing the Automation mailing to meet a separate minimum quantity standard for mailing at Retail (now Presorted First-Class) or Regular (now Nonautomation Standard) rates. Another commenter expressed concern that mail remaining that cannot meet a separate minimum quantity standard will end up in the single-piece rate category, and that single-piece rate mail is generally not accepted at business mail entry units. One commenter also indicated that proposed DMM M130.1.1b, which stated that a mailing can consist of only one processing category, and M130.1.1d, which required that a separate rate marking appear on Retail Mail (now named Presorted First-Class), do not permit mailers to prepare the residual to an Automation mailing as a Retail (Presorted First-Class) mailing. One commenter expressed concern that splitting a Standard mailing job into three separate mailstreams complicates the mailing process and that this conflicts with a stated purpose of Classification Reform to simplify the preparation of mailings. The Domestic Mail Classification Schedule approved by the Governors specifies separate 500-piece minimum quantity standards for the following First-Class mailings: (1) Letters and Sealed Parcels Automation, (2) Cards Automation, (3) Letters and Sealed Parcels Presorted, and (4) Cards Presorted. Accordingly, the final implementing DMM standards in this notice contain these separate minimum quantity standards for Automation mailings and for Presorted First-Class Mailings, including the separate minimums for mailings of First-Class Cards. First-Class mailers will be permitted to combine letters and cards in the same mailing as they do currently, provided each separate subclass (cards and letters) meets its own separate 500 piece minimum quantity standard and mailers either affix exact postage to each piece in the mailing or can provide standardized documentation to reflect the number of pieces in each subclass and each rate category within the combined mailing. The current provisions that all pieces in a mailing must be of the same processing category (with certain exceptions allowing for commingling Standard Machinable and Irregular parcels) are also retained in the final implementing DMM standards. The DMCS also prescribes separate minimum quantity standards of 200 pieces or 50 pounds each mailing of Standard Regular and Enhanced Carrier Route rate mail. Due to operational differences in the way that mail is handled, automation mail must be sorted and presented separately from presorted nonautomation mail. The Postal Service has determined that automation and nonautomation mail must therefore be prepared and presented as separate mailings. Accordingly, the final implementing DMM standards in this notice contain separate minimum quantity standards for the following Standard mailings: (1) automation Enhanced Carrier Route, (2) nonautomation Enhanced Carrier Route, (3) automation Regular, and (4) presorted nonautomation Regular. If, after preparing one or more of the above mailings within a class, mailers are left with a quantity of pieces that do not meet the minimum quantity standards for a Presorted First-Class or presorted nonautomation Regular mailing, mailers are correct that such pieces must be mailed at single-piece rates. These single-piece rate pieces will be accepted through the Business Mail Entry Unit when presented along with other presort rate mailings. Additional information on markings and postage payment for these pieces is provided in the separate comment sections on those two topics. Eight commenters indicated that mailings of all subclasses should be able to be reported on the same mailing statement, and on the same documentation. Four commenters requested clarification concerning the application of minimum quantity standards to plant verified drop shipment (PVDS) mailings expressing opinions that Customer Support ruling PS-283 be continued under Classification Reform. Three commenters pointed out that there is a conflict in the proposed rule between the information presented in the general comments section which states separate subclasses cannot be part of the same mailing, and the information in DMM 600.2.4 which states that all the Standard Mail subclasses can be prepared in the same mailing, and that this is further confused by rules and comments indicating that mailings of different subclasses can be combined on the same pallets in palletized mailings. These commenters stated that the proposed policy was confusing and inconsistently applied throughout the proposed standards. One of these commenters indicated that he interpreted the proposed standards to mean that Standard Automation and Regular (now nonautomation Regular) mail may be on the same pallet and can be reported on the same documentation and mailing statement. One commenter stated that his support for 100% barcoding during the Implementation Advisory Group (IAG) meetings was conditional on having Enhanced Carrier Route, Automation, and Regular subclass mail to be part of the same mailing and reported on the same mailing statement. This commenter believed that previous responses to comments led him to believe the Postal Service agreed with this single mailing concept. The information in proposed DMM 600.2.4, which stated that all the Standard mail subclasses could be prepared in the same mailing contained a typographical error omitting the word ``not.'' The Postal Service regrets any confusion this may have caused. Under Classification Reform, a mailing will consist of a group of mail of the same class and subclass which will be processed in the same manner by the Postal Service, and which is submitted for verification at the same time. Each mailing will be required to meet a separate minimum quantity standard. As indicated above, for presorted Regular Standard Mail mailers, automation mail must be prepared as a separate mailing from mail entered at presorted nonautomation rates, and automation Enhanced Carrier Route mail must be submitted as a separate mailing from mail entered at nonautomation Enhanced Carrier Route rates and from other Regular Standard mailings. Each of these four mailings must therefore meet a separate 200-piece or 50-pound minimum quantity standard. Similarly, a First-Class Automation letter mailing must meet a separate 500-piece minimum quantity standard and a Presorted First-Class letter mailing must meet a separate 500-piece minimum quantity standard. Separate minimum quantity standards must also be met for mailings of automation First-Class Cards and Presorted First-Class Cards. The final implementing DMM standards contained in this notice provide that separate mailings of the same class of mail and in the same mailing job that are presented for verification at the same time may be claimed on a single postage statement. The Postal Service has renamed its ``mailing statements'' as ``postage statements'' to avoid confusion as to whether more than one mailing can be reported on a single statement. Under the standardized documentation standards for these mailings, separate documents describing each mailing will [[Page 10074]] be required except for copalletized, commingled, or combined mailings submitted on pallets. For these palletized mailings, packages or sacks or trays from each of the separate mailings are sorted together for placement on the appropriate level of pallets. Therefore, standardized documentation for palletized mailings will report pieces contained in each separate mailing by each separate rate category on a pallet by pallet basis, with a summary roll up of the total pieces for each separate mailing and each rate for the entire mailing job. Each of the mailings on the pallets that are part of the same mailing job may be reported on a single postage statement. The DMM standards in this notice have been revised to make these standards clear. Customer Support Ruling PS-283, Third-Class Destination Entry Discounts and Fourth-Class Bulk Bound Printed Matter for PVDS, that pertains to application of minimum quantity standards for plant verified drop shipment (PVDS) mailings will continue to apply to the corresponding Standard mailings under Classification Reform. f. Marking Standards Eighteen comments were received in response to the proposed marking standards for First-Class and Standard Mail. Five commenters expressed outright opposition to the additional required markings. Three commenters suggested the Postal Service consider a transition period to allow time for mailer system and mailpiece design changes to accommodate the proposed marking standards. One of these commenters requested a one-year transition period to allow his company to deplete their envelope stock bearing current markings. One commenter asked whether the Postal Service would produce precanceled stamps bearing the proposed markings and asked whether it would accept stamps with current markings. One of these commenters questioned the need for the markings since they have no impact on improving deliverability of mailpieces. One commenter indicated that 5 to 7 address lines would be needed for the markings plus a barcode, and that this means their address windows will have to be enlarged to accommodate the extra address lines. Another commenter similarly indicated he would have space problems with their addresses if an optional endorsement line had to be added. Two commenters indicated they had cleaned their address blocks to appear more personalized and had eliminated all but the carrier route endorsement line and the Address Correction Service information line. These commenters were concerned the proposed markings would detract from the appearance of their mailings and thereby reduce the response rate to these pieces. Several commenters pointed out problems that separate markings for separate mailings would pose for their operations. Four MLOCR users indicated that they cannot mark the mail before processing it, and that the ability to apply the marking with an ink jet is not currently available. They also stated that since their mailings consist of various size pieces it would be hard to spray on a marking in a consistent place. They further indicated that they could not apply markings representing individual presort rates. One of these mailers stated that in a letter sorter environment postage is applied to the pieces prior to sorting them, and therefore correct markings could be applied only if an optional endorsement line was used (requiring an enormous amount of programming time) or if some mail was run through the postage meter process a second time. Five commenters stated that because their Retail Mail (renamed Presorted First-Class) will come from Automation mail that was not delivery point barcoded, a standard to separately mark this mail as Retail Mail (now Presorted First-Class) would be a problem in itself and would also lead to postage payment problems. One of these commenters stated the same marking and postage problems will be encountered if some of the uncoded mail must be entered at the First-Class single-piece rates. One commenter requested use of a generic ``Presort'' marking for all mailings. Two commenters requested that Retail Mail be allowed to bear an Automation marking, and two commenters suggested Automation mail be permitted to use the Retail marking. Two commenters indicated there would be no efficient way to delete old markings and add new markings to mailpieces. Another commenter indicated that the proposed endorsements would cause a problem in his mailing operations in which separately sorted mailings that each bear preprinted markings on an insert appearing through a window are merged together using barcode sorters to boost presort qualification levels. The merged final mailing would therefore not be able to show an individual rate qualification level marking. One commenter stated that one of the exhibits in the proposed rule appeared to require destination entry level in the markings and requested that the Postal Service eliminate this standard. One commenter indicated that the standards are unclear and requested clarification as to whether each subclass would have to bear a separate marking. This commenter requested further information as to which markings can appear in the indicia. Another commenter pointed out that the proposed language in DMM P040, Exhibit 4.1b, stated that the ``Bulk Rate'' marking in permit imprints should be replaced with a ``Presort'' marking, yet the standards in proposed DMM M810.1.1 stated that Standard Mail must be marked Standard or STD. This commenter stated that based on proposed DMM M810.1.1 he would have expected the permit imprint to have contained the marking ``Standard'' rather than :``Presort.'' One commenter was confused as to where the proposed subclass markings could be placed and suggested this standard could be a problem unless they were allowed in the address block. One commenter stated that the rules for optional endorsement lines and key lines need to be standardized since the information in each of these appears to be similar but is not consistent in content and format. One commenter asked whether the markings in DMM P700 would be required for everyone or just for customers who use manifest mailing systems. One commenter wanted to know why nonprofit mailers and Periodicals Mail did not need to meet the new marking standards. One commenter didn't understand the need for the markings indicating that it will provide no additional information to the Postal Service. One commenter stated that the marking standards are the result of shortcomings in the Postal Service In-Office Cost System (IOCS). This commenter further stated that the Postal Service should invest in technology to correct these shortcomings, and not require mailers to invest in technology to fix them. One commenter indicated that the Postal Service should use mailers' acceptance documents to gather needed information and expressed a belief that these forms are not analyzed and documented now. This commenter further questioned whether the information this proposal requested would be used any more effectively. Markings are used to develop detailed cost information about various categories of mail. The Postal Service In-Office Cost System (IOCS) determines the costs attributable to each subclass and certain rate categories. These attributable costs are used in determining rates. The IOCS uses a sampling system. A data collector will [[Page 10075]] go to a randomly selected postal employee at a randomly selected time and record the subclass, and where applicable, the rate category information appearing on any mail that postal employee is handling at the time of observation. The data collector will use the markings that appear on individual mail pieces, as well as postage, piece size, and other information to determine the subclass and any applicable rate category of the mail being handled at the time of observation. Accurate cost attribution depends on accurate piece markings. It is therefore in the best interest of both mailers and the Postal Service to have accurate costing information for subclasses and mailing and rate categories within subclasses for ratemaking purposes. Classification Reform offers an opportunity to implement markings that will enable the Postal Service to more accurately determine the costs of automation (barcoded) mailings and other mailings. Accordingly, the Postal Service has determined that the markings applied to First-Class and Standard mailpieces must accurately reflect the subclass and mailing category at which the pieces are actually mailed. For mail at any carrier route rates, a marking specifying the actual rate category within a mailing will also be required. The Postal Service is also sensitive to the concerns of the mailers who commented. It recognizes that in some instances the marking standards contained in this notice may require mailers to make changes to their current mailing practices. In response to these concerns, the Postal Service has made modifications to the final marking standards to make them easier for mailers to comply with. The final standards are described below. In response to comments concerning needed phase-in time to use current stocks of envelopes bearing ``Presorted First-Class'' and ``Bulk Rate'' markings, and concerns over use of precanceled stamps that currently bear these printed markings, the Postal Service has decided to retain use of ``Presorted First-Class'' rather than adopt the proposed ``Presort First-Class'' for First-Class Mail; and to retain use of ``Bulk Rate'' or ``Blk. Rt.'' as the marking for Standard Mail (A) rather than the proposed ``Standard'' marking plus another specific mailing marking. Use of these current class specific markings will still allow the Postal Service to collect accurate data without adding the extra cost to mailers of buying new envelopes, or replacing meter slugs, or remarking mail bearing precanceled stamps with what would have been obsolete markings. This retention of current markings will also eliminate the confusion that would have occurred during any transition period that would have allowed mail bearing the old markings concurrent with mail bearing new markings. Accordingly, the Postal Service does not plan to phase-in the marking standards. For all First-Class and Standard Mail (A) presort rate mailings, both a class marking and a mailing marking will be required on each piece. For carrier route rates a class marking, mailing marking, and a specific carrier route rate marking will be required. For presorted First-Class mailings (both Automation and Presorted First-Class), the class marking of either ``First-Class'' or ``Presorted First-Class'' must appear in the postage area. For presorted Standard (A) mailings (Automation, Enhanced Carrier Route, and Nonautomation), the class marking ``Bulk Rate'' or ``Blk. Rt.'' must appear in the postage area. The postage area is defined as the area within the permit imprint or precanceled stamp, or below or to the left of the meter stamp, permit imprint or precanceled stamp. For automation First-Class, automation Regular Standard, and automation Enhanced Carrier Route Standard mailings, the marking ``AUTO'' in all capital letters will be required on all pieces in addition to the applicable class marking described above. In addition, mail qualifying for a presort First-Class or Enhanced Carrier Route Standard automation carrier route letter rate, must bear an additional CR rate marking so that the marking will appear as ``AUTOCR'' on each piece qualifying for those rates. The ``AUTOCR'' marking is in addition to the applicable class marking described above. The ``AUTOCR'' marking may appear only on pieces qualifying for an automation carrier route rate and the ``AUTO'' marking may appear only on pieces qualifying for a non-carrier route automation rate. The automation marking (``AUTO'' or ``AUTOCR'') may appear in the postage area or on the top line of the address (only a barcode may appear above it). Alternatively, for MLOCR users, the appropriate ``AUTO'' or ``AUTOCR'' marking may appear to the left of a barcode in the lower right corner of the envelope, or to the left of a date applied by the MLOCR in the postage payment area. For nonautomation Presorted First-Class mailings the marking ``Presorted First-Class'' will be required in the postage area. This serves as the marking for both the class of mail and type of mailing. As indicated above, mail entered at the Presorted First-Class rates will not be permitted to also bear an ``AUTO'' or ``AUTOCR'' marking. Mail entered at single-piece First-Class rates must bear only the ``First-Class'' marking, no marking, or under certain conditions, the ``Presorted First-Class'' marking. Single-piece rate mail may bear the ``Presorted First-Class'' marking only if additional postage is affixed to each piece to bring the total postage affixed to each piece up to the correct single-piece rate (based on the weight of the piece). For mailers using precanceled stamps or permit imprints, the additional postage affixed to single-piece rate mail could be in the form of either stamps or a meter imprint. The addition of postage to single- piece rate mail marked ``Presorted First-Class'' will allow IOCS data collectors to determine that the piece was mailed at a single-piece First-Class rate. For presorted nonautomation Regular Standard mailings, the ``Bulk Rate'' or ``Blk. Rt.'' marking will be required in the postage area. This serves as the marking for both the class of mail and type of mailing. For nonautomation Enhanced Carrier Route Standard Mail, each piece must bear the marking ``ECRLOT'', ``ECRWSH'', or ``ECRWSS'' that is appropriate for the rate paid (basic, high density, or saturation) for the piece in addition to the ``Bulk Rate'' or ``Blk. Rt.'' class of mail marking. The Enhanced Carrier Route markings may appear either in the postage area or on the top line of the address. Mail entered at single-piece Standard rates must bear the marking ``Standard'', or under certain conditions, the ``Bulk Rate'' or ``Blk. Rt.'' marking. Single-Piece Standard Mail may bear the ``Bulk Rate'' or ``Blk. Rt.'' marking only if additional postage is affixed to each piece to bring the total postage affixed to each piece up to the correct single-piece rate (based on the weight of the piece). For mailers using precanceled stamps or permit imprints, the additional postage could be in the form of either stamps or a meter. The addition of postage to single-piece rate mail marked ``Bulk Rate'' or ``Blk. Rt.'' will allow IOCS data collectors to determine that the piece was mailed at a single-piece Standard rate. These marking standards will allow use of current meter slugs, permit imprints, and precanceled stamps that bear the ``Presorted First-Class'' and ``Bulk Rate'' or ``Blk. Rt.'' markings. For mailers who electronically presort mail, any additional mailing and carrier route rate markings can be applied on the top line of the address. For MLOCR users, including those preparing mail under value added refund (VAR) provisions, it is [[Page 10076]] recognized that some changes to their operations may be needed to comply with these marking standards. However, these mailers should be able to comply with these standards provided they can spray the appropriate ``AUTO'' or ``AUTOCR'' marking on mailpieces at the time a delivery point barcode is applied. The ``AUTO'' or ``AUTOCR'' marking would have to be suppressed any time a 5-digit barcode or no barcode is applied. Since pieces in both the automation First-Class mailing and the Presorted First-Class mailing will be allowed to bear the marking ``Presorted First-Class'' in the postage area, this will allow mail not coded to delivery point being to be submitted as a properly marked Presorted First-Class mailing, provided all other standards for that type of mailing are met, including a separate 500 piece minimum quantity standard. Similarly the provision for both an automation Enhanced Carrier Route mailing and a nonautomation Regular mailing to bear the marking ``Bulk Rate'' or ``Blk. Rt.'' in the postage area, and the ability to apply the appropriate ``AUTO'' or ``AUTOCR'' marking at the time the barcode is applied will allow mail not coded to delivery point to be submitted as a properly marked nonautomation Regular mailing. The provision allowing the ``AUTO'' and ``AUTOCR'' marking to be printed to the left of the barcode in the lower right corner of the mailpiece, or in the postage area to the left of a date applied by the MLOCR, should make the ``AUTO'' or ``AUTOCR'' markings easier to apply for these mailers. In response to the commenter that indicated ink jet capability has not yet been developed, it should be pointed out that MLOCR users may currently use ink jet to spray a new mailing date and the correct ZIP Code for the mailpiece, and that many mailers are using these options already. The Postal Service does not believe that it would be onerous to adapt these existing systems to apply the ``AUTO'' or ``AUTOCR'' markings. First-Class, Regular Standard and Enhanced Carrier Route Standard mailers opposed to placing markings in the top line of the address will either need to modify their address labels or address inserts and windows, or to place the applicable mailing and carrier route rate markings in the postage area. Nonprofit Standard and Preferred Periodicals mailers are not affected by these new marking standards because these subclasses were not part of this Classification Reform effort. Cost data for Periodicals Mail is determined by the publication number that must appear in each copy. Accordingly, new marking standards will not be applied to Regular Periodicals under Classification Reform. g. Postage Payment Five commenters had concerns about postage payment issues. Four of these commenters had concerns about the treatment of mail that would not qualify as part of an Automation mailing and would, as a result, become part of a Retail (Presorted First-Class) mailing. These commenters requested that Retail (Presorted First-Class) mail left over after preparing Automation mailings be permitted to bear postage at the Automation rates rather than the Retail (Presorted First-Class) rates, and that any difference between the postage affixed and the actual rate of postage owed for these mailings be paid by means of a meter strip affixed to the mailing statement or through an advance deposit account. This would simplify their mailing operations and prevent them from having to remeter mail entered at Retail (Presorted First-Class) rates. Generally mailers affix postage to mail prior to sorting it. Most of these commenters indicated that they use MLOCRs to prepare the mail and indicated that they would not know whether a piece could be barcoded and entered as part of an Automation mailing until after it was sorted. These commenters indicated that the proposed standards to separately mark and pay postage at the appropriate Retail (Presorted First-Class) rates for their nondelivery point barcoded mail would require them to run the mail through a second metering operation after it was sorted, adding cost and time to their operations. One of these commenters also requested that single-piece rate mail that could not be made part of either an Automation mailing or a Retail (Presorted First-Class) mailing also be allowed to pay the difference in postage between the rate affixed and the single-piece rate through a meter strip or an advance deposit account. The rules for payment of postage under Classification Reform will differ by method of postage payment as they do today. For mailings paid by permit imprint, all pieces in a mailing must be of identical weight (unless manifesting or an optional or alternative procedure has been authorized by a rates & classification service center). Presort mailings containing more than one rate category must be verifiable either based on weight (because the pieces are of identical weight and the mailer separates the trays or sacks by rate category at the time of verification), or based on the submission of standardized documentation showing the number of pieces in each rate category. As indicated under the marking section, if any pieces remain that are subject to single- piece rates, each such piece must have postage affixed at the correct single-piece rate, or the pieces must be submitted as a separate single-piece rate permit imprint mailing bearing the proper rate markings for single-piece rate mail and meeting a separate minimum quantity standard for a permit imprint mailing. For metered mailings, postage must be metered on each piece at either the exact rate of postage for the mailpiece, or at the lowest rate applicable to any piece in the mailing, unless the mailer is authorized by a rates and classification service center to mail under an alternative program such as value added. An exception is provided by this final rule for mailing jobs. When a mailing job consists of two (First-Class) or two to three (Standard) mailing categories, and all the mailings in the mailing job are presented for verification at the same time, mailers may apply postage at the lowest rate applicable to any piece in the mailing job to all pieces in the mailing job. For First-Class metered mailings, each piece weighing more than 1-ounce must bear the correct amount of additional postage to pay for the additional ounces. Metered mailings containing more than one rate category must be verifiable either based on weight (because the pieces are of identical weight and the mailer separates the trays or sacks by rate category at the time of verification), or based on the submission of standardized documentation showing the number of pieces in each rate category. Presort mailings of nonidentical-weight pieces must (and mailings of identical weight may) be accompanied by standardized documentation that shows the number of pieces in the applicable rate categories and the total postage owed for the mailing. Any difference between the amount of postage affixed to the piece and the amount of postage owed for the presort mailing may be paid by means of a meter strip affixed to the postage statement or through a trust fund account. If any pieces remain that are subject to single-piece rates, each such piece must have postage affixed at the correct single-piece rate. For mailing jobs metered at the lowest rate in the job and having all mailings submitted on one postage statement, the individual mailings in a job of identical-weight pieces may also be verified by weighing as described above. Nonidentical-weight mailing jobs must (and identical weight mailings may) be accompanied by documentation that [[Page 10077]] shows the pieces and postage at each rate category by mailing with a summary for the job. Any difference between the total amount of postage affixed to each piece and the amount of postage owed for the total of all the presort mailings for the job may be paid by means of a meter strip affixed to the postage statement or through a single debit to an advance deposit account. If any pieces remain that are subject to single-piece rates, each such piece must have postage affixed at the correct single-piece rate. For precanceled stamp mailings, each piece must bear either a Postal Service precanceled stamp or stamps precanceled with a mailer's postmark. Mailers must be able to document (either by the weighing method or standardized documentation as described for meters) the difference between the price paid for the stamp affixed and the amount of postage owed for the presort mailing. The additional postage owed for the presort mailing and any single-piece rate pieces must be paid in the same manner as described for metered mailings. The provisions for mailing jobs also apply to precanceled stamp mailings. For value added refund mailings, the value added refund documentation and payment procedures will be extended to the nonautomation presorted portion of the mailing. Mailings or jobs of any postage payment method in which cards and letters are combined must be accompanied by standardized documentation that substantiates that the separate minimum quantity standards for cards and letters have been met. The documentation must also contain separate rate columns for each card rate and for each letter rate in the mailing or mailing job. In addition, if such combined mailings are paid with precanceled stamps or meters, the cards must bear postage at card rates and the letters must bear postage at the letter rates. Any difference between postage affixed and postage owed for the presort portion of a mailing or mailing job containing both cards and letters may also be paid by means of a meter strip affixed to the postage statement or through an advance deposit account. If any pieces remain that are subject to single-piece rates, each such piece must have postage affixed at the correct single-piece rate, or the pieces must be submitted as a separate single-piece rate permit imprint mailing bearing the proper rate markings for single-piece rate mail and meeting a separate minimum quantity standard for a permit imprint mailing. h. Minimum Per Piece Rate Breakpoints for Standard Mail (A) Five comments were received regarding the minimum per piece rate weight breakpoints. All five commenters requested that the same breakpoint be used for the entire class of Standard Mail for the sake of simplicity. Two of these commenters further indicated that they wanted the highest weight breakpoint to apply to the entire class. These two commenters also stated a belief that there was no reason for the weight limits on heavy letter mail (mail weighing more than 3 ounces) that is eligible for mailing at the Automation letter rates to be different for First-Class, Periodicals, Regular Standard, and Nonprofit Standard Mail. Separate rate schedules for each subclass of Standard Mail were recommended by the PRC and approved by the Governors. The rate schedules for the Regular, Enhanced Carrier Route, and Nonprofit subclasses of Standard Mail (A) each separately prescribe that mailers must pay either the minimum piece rate or the pound rates, whichever is higher. The weight breakpoint for each subclass is mathematically derived to determine the weight at which the pound rates become higher than the minimum per piece rates. Accordingly, the Postal Service cannot change the point at which the pound rates apply for individual subclasses in this process. Once a particular weight break is exceeded, the non-letter size piece and pound rates apply. The Postal Service does set the weight limits for eligibility for automation First-Class or Periodicals letter rates based on operational and administrative criteria. In the interest of simplicity, the Postal Service has determined to allow First-Class and Periodicals letter mail that meets the higher Standard Mail weight breakpoint to be eligible for barcoded letter rates provided that such mail meets all other standards for that rate. This affords as many mailers as possible the highest weight cut- off for Automation letter rates. i. Acceptance Procedures for Presort Errors One commenter requested information as to what would happen if one of his machines missorted one piece of mail. This commenter gave an example of a situation where on the second pass of an MLOCR, a piece destined to a 3-digit bin might mistakenly be sorted by the machine to another bin. The commenter indicated that the machine would not report that piece at the 3-digit automation rate, but indicated that this piece might be subsequently found and placed in a mixed AADC tray because it would be difficult to find the proper 3-digit tray. The commenter asked whether finding such a piece within a mixed AADC tray would be considered an error, and if such errors exceeded whatever tolerance might be established, if it would disqualify the mailing or result in substantial penalties. The commenter requested that this type of error be ignored for acceptance purposes since the primary 3-digit and AADC separations would be made and correct postage would be paid on the piece. Currently, a First-Class barcoded mailing is permitted to contain an unlimited amount of residual mailpieces without penalty, even if the pieces could have been sorted to a finer extent. This is because the residual mail is currently paid at single-piece rates. When Classification Reform is implemented, all pieces in an Automation mailing will receive a presort rate. Therefore it will be expected that all pieces within such mailings be presorted to the finest extent possible to 3-digit and AADC destinations prior to placing mail in a mixed AADC tray. All possible 5-digit trays will not be expected because this is an optional sortation level. Therefore, if during the acceptance process, mail is discovered in a mixed AADC tray that could have been sorted to a 3-digit or AADC tray in the mailing, such mail will be considered a presort error. Because the Postal Service recognizes that some machine or human errors can occur in the preparation of mailings, the Postal Service allows a tolerance without penalty for errors discovered in a mailing during acceptance. If the errors found in the mailing exceed this tolerance, mailers will be given the same two choices currently available: (1) to take the mailing back, correct it, and resubmit it to the Postal Service; or (2) to pay additional postage at the appropriate rate for the proportion of the mailing found to be in error during the verification process. The Postal Service does not agree with the commenter that certain types of errors should be ignored because the mailer did not intentionally make the error. The Postal Service expects that mailers will exercise good machine maintenance and other quality control procedures in their operations to ensure that such errors in sorting are minimized. j. Destination Delivery Unit Discounts Ten commenters had concerns over the proposed revisions in the qualification criteria for destination delivery unit discounts for Standard [[Page 10078]] Mail and Publications Service Periodicals to require that mailers take carrier route sorted mail to the postal facility where sequencing of the mail takes place rather than to the postal facility where the carrier is located, in those situations where these were not the same facility. Seven commenters requested that the change requiring carrier route mail to be entered at the location where the mail is sequenced should be dropped. These mailers questioned how a small mailer is to know this information and that it will be subject to change. Two commenters did not disagree with the new standard but recommended that the Postal Service develop a list of 5-digit ZIP Code facilities at which mailers must drop Destination Delivery Unit mail. One commenter stated that this standard only has logic for letters and possibly for automation flats, and that applying it to non-automation flats could interfere with well established mailing patterns for newspapers and their shippers. This commenter requested that postmasters be given the authority to allow mail to be dropped at the delivery office. As pointed out by one commenter, a change in where the mail is dropped makes sense only for letter mail. Moreover, any change in where the mail is dropped would apply only to automation (barcoded) letter mail that is processed at CSBCS sites. Since Publications Service was not recommended as a separate subclass of Periodicals mail, and there is no automation carrier route rate applicable to Regular Periodicals, this revision will not apply to Periodicals under implementation of Classification Reform. Mailers of Periodicals, and of Standard letters mailed at other than automation Enhanced Carrier Route letter rates, will continue to drop their mail at the destination where the carrier is located since it is the carrier who sequences this mail under these final rules. However, for automation Enhanced Carrier Route letter mail, mailers will be required to drop their mail at the postal facility where the mail is sequenced. This could be the facility at which the carrier sequence barcode sorter (CSBCS) is located which will sequence the mail, rather than the facility at which the carrier is located. Mailers may contact the appropriate USPS district drop shipment coordinators to determine the sites where automation Enhanced Carrier Route letter mail must be dropped to obtain DDU discounts. The Postal Service plans to incorporate information as to where automation Enhanced Carrier Route mail must be dropped to obtain DDU discounts in its AIS Drop Shipment product in the future. k. Replacement of SDC Network With ADC Network One comment was received in response to the Postal Service's notice that the SDC network would be replaced by the ADC network for all mail, effective with the implementation of Classification Reform. This commenter asked whether we would be creating an excess of skin sacks as a result of this since there are more ADCs than SDCs. He indicated that today all working flat mail is placed in the same sack, and it appears that the network change would require a separate sack for this mail for each ADC. The sortation rules for mail sorted to ADCs will require either a full tray (with no overflow) or a sack meeting a prescribed minimum quantity. Therefore there should not be an excess of skin sacks created by this network change. Mail that cannot be placed in full letter or flat trays, or in sacks meeting the specified minimum quantity would continue to be merged into mixed trays or sacks with the label changed to Mixed ADC rather than mixed states. l. Enhanced Carrier Route Rate Eligibility for Routes With Fewer Than Ten Stops One commenter commended the USPS for allowing mail destined for carrier routes that have fewer than 10 delivery stops to qualify for the Saturation Enhanced Carrier Route rates if it meets the applicable density and documentation standards. m. Eligibility for Enhanced Carrier Route High Density Rates Three comments were received in response to the Postal Service's indication that walk sequencing rather than line-of-travel (LOT) sequencing would be required to qualify for High Density Enhanced Carrier Route rates. All three commenters indicated that LOT sequencing should be permitted. Currently, walk sequence is required to obtain these rates, and that standard has been retained in the applicable DMCS provisions recommended by the PRC and accepted by the Governors. n. Density Standards for Saturation Enhanced Carrier Route Mail One commenter requested an explanation as to why in proposed DMM sections E632.1.7b and c, multiple pieces for a single delivery address are not allowed to count toward meeting the Saturation Enhanced Carrier Route qualification criteria, but are permitted to count toward meeting the 125-pieces per route standard for High Density Enhanced Carrier Route rates. This commenter asked whether this excludes multiple dwelling units such as apartments or trailer parks. He requested clarification of this rule and also a modification to make this rule consistent for qualification for both rates. The proposed DMM sections E632.1.7b and c do not reflect a change from current standards but merely carry forward the current standards in DMM E334.1.6d. To meet the saturation criteria, the Postal Service requires delivery of a mailpiece to at least 90% of the active residential addresses or at least 75% of the total number of active possible delivery addresses for each carrier route claiming these rates, whereas for High Density rates it requires only a total of 125 sequenced pieces per route. A delivery address for purposes of meeting the Saturation standards could be individual apartments in an apartment complex or highrise or individual trailers in a trailer park. This standard for saturation rates does not preclude mailers from mailing more than one piece to a specific delivery address, it only specifies that the specific delivery address to which a piece or pieces are delivered can count only once towards meeting the applicable percentage of active possible delivery addresses per carrier route. o. Placement of All Packages or Pieces for the Entry SCF in 3-Digit or Finer Trays or Sacks Eleven comments were received in response to the Postal Service's proposal to require that all mail for the 3-digit ZIP Codes served by the SCF of the entry post office be trayed or sacked to a 3-digit or finer level of sortation. This proposed standard could have resulted in the preparation of less-than-full 3-digit trays and sacks for the 3- digit ZIP Codes served by the SCF of the entry post office where full 3-digit or finer trays or sacks for these destinations could not be prepared. This standard was added to avoid having small quantities of local mail being transported from the local office to an ADC or AADC where it would undergo processing and transportation back to the SCF at which it was entered. The avoidance of this loop would result in better service and an expanded opportunity for mail to qualify for destination SCF rates. Four commenters indicated that this standard should be changed from required to optional because it would be impossible for many drop shipment mailers to comply with it. These [[Page 10079]] commenters pointed out that at many mail preparation facilities, mailings are presorted and produced first and decisions as to destination entry drop points made second after the mailer is able to determine the total volume of mail it has produced on a given day for certain drop shipment destinations. Because the presort is performed prior to determining drop entry points, requiring 3-digit sortation based on the SCF service area of the facility at which the mail is dropped would require these mailers either to resort the mail by drop ship sites or, to manually remove this mail from ADC, AADC, mixed ADC and mixed AADC trays or sacks and make manual corrections to mailing documentation. Six commenters indicated that these less-than-full 3- digit trays should be eligible for the applicable 3-digit or 3/5 rate rather than a basic rate. One commenter believed that a standard for separate 3-digit trays was overkill and requested the ability to prepare an SCF tray for this mail with separator cards. This would prevent mailers from having to prepare 10 separate less-than-full 3- digit trays for SCF areas such as White River Junction, VT, which serves 10 different 3-digit ZIP Code areas. One commenter opposed this standard, indicating that consistency in mail preparation transcends the minimal benefit derived from this proposal. In response to the comments by drop shipment mailers, the Postal Service is revising the final DMM language to require preparation of these less-than-full 3-digit trays or sacks only for the 3-digit ZIP Codes served by the SCF of the post office where the mail is verified. These trays or sacks would be optional for other entry points. The Postal Service would also like to point out that because tray label destinations for mixed AADC trays and mixed ADC trays and sacks of mail will differ depending on the location of where the mail is dropped, plant verified drop shipment mailers will be expected to make appropriate tray label changes for any mixed AADC trays or mixed ADC trays and sacks that are drop shipped to other than the facility where the mail is verified. The Postal Service does not want to reinstitute preparation of SCF trays. Therefore the Postal Service is retaining the standard that, after preparation of any applicable carrier route and 5-digit trays or sacks, and all 3-digit trays or sacks meeting the applicable minimum quantity standards, any mail (for automation and upgradable letters) or any 5-digit and 3-digit packages (for other sortations) remaining for the 3-digit ZIP Code or ZIP Codes served by the post office where the mail is verified, must be prepared in separate 3-digit sacks or trays. The only exception is that for automation letter mailings, preparation of 3-digit scheme trays would be required where scheme sorts are indicated in DMM L003. The Postal Service recognizes that in some SCF areas like White River Junction, VT, which serves 10 different 3-digit ZIP Code areas, this could result in as many as 10 separate less-than- full trays or sacks for mailings at other than automation letter rates. (For automation rate letters, only 3 separate scheme trays would be required for this mail, assuming there were pieces in the mailing for each of these schemes.) However, as stated above, the Postal Service does not wish to reinstitute preparation of SCF packages, trays, or sacks. The Postal Service is also retaining its position that when the pieces in these entry or origin 3-digit (3-digit scheme for automation rate letters) trays or sacks do not meet applicable minimum quantity standards for 3-digit or 3/5 rates, the pieces must be paid at basic rates. p. Presort Accuracy Validation and Evaluation (PAVE) The Postal Service proposed to require use of PAVE-certified software or standardized documentation when preparing mailings under any of the reformed subclasses. Four commenters responded to this proposal. One commenter indicated that PAVE should not be required for mail acceptance, rather there should be only a requirement for standardized documentation. One commenter indicated that he is waiting for further information. This commenter recommended that the verification process for all changes and new proposals be incorporated into the standardized documentation standards in order to eliminate redundant documentation and streamline acceptance. One commenter indicated that his company has invested in sophisticated documentation software and needs the standardized documentation requirements in order to make necessary programming changes. One commenter indicated that the Postal Service needs to establish timely and reasonable procedures for mailers to have their documentation certified as standard. One commenter sent in a sample of current documentation to determine whether it met the standardized documentation requirements. The Postal Service has retained the standard for mailers to use either PAVE-certified software or to use standardized documentation. The standardized documentation requirements are included in this final rule. Mailers who use standardized documentation need not also meet the PAVE-certified software standard although its use is strongly recommended. Mailers using PAVE-certified software can be assured that their documentation will meet the standardized documentation requirement. The standardized documentation specified in this final rule does not incorporate all the new eligibility and mail preparation standards of Classification Reform as requested by one commenter. The standardized documentation is used to show that the presort criteria have been met and that rates were properly claimed on the postage statement. Certification of addressing standards, move update standards for First-Class Mail, certification that enclosed reply pieces in automation rate mailings are prepared with proper barcodes and FIMs, etc. cannot properly be captured by standardized documentation and will be certified through separate use of a Form 3553, the postage statement, or other means. Consolidation of all these certification standards may be considered in the future but is not part of these final implementing rules. The Postal Service plans to have PAVE testing available for affected presort categories prior to implementation of Classification Reform. PAVE test files will be available to software vendors on March 22 for First-Class and Regular Standard letters and flats categories, and on March 29 for Enhanced Carrier Route Standard categories. This will provide sufficient time for the Postal Service to evaluate returned test files and certify participants prior to implementation of Classification Reform. Vendors whose files fail as a result of an initial evaluation will also have time for retesting and reevaluation for certification prior to the July 1 implementation date. Test files for Regular Periodicals will not be available until early summer as a result of the significant changes made to the quality and preparation standards in this category from those published in the proposed rule. Accordingly, the standard for use of PAVE certified software or standardized documentation for Regular Periodicals will not be required until January 1, 1997. Mailers are advised that PAVE certification does not remove the requirement to submit documentation with each mailing where documentation is required. This is because PAVE tests the ability of a software program to sort addresses properly, but does not test the [[Page 10080]] mailer's proper use of it or the application of proper mailing parameters to each mailing. Use of PAVE-certified software will assure that the documentation produced meets the requirements for standardized documentation. PAVE also tests the ability to prepare properly formatted postage statement facsimiles. Software that is developed in- house by mailers may be PAVE-certified. Requests for PAVE certification information and tests should be directed to: Pave Program, National Customer Support Center, US Postal Service, 6060 Primacy Pky Ste 101, Memphis TN 38188-0001 A list of PAVE certified products, by vendor, will be available on RIBBS, the Postal Service Rapid Information Bulletin Board System, and from the above address. q. Perceived Restriction on the Mailability of Postcards as Bills One commenter pointed out that the proposed Domestic Mail Classification Schedule language in section 232.2 indicated that mailpieces having certain characteristics such as punched holes, vertical tearing guides, an address portion which is smaller than the remainder of the card and numbers or letters unrelated to postal purposes appearing in the address portion of the card, are not mailable as a postal card or postcard unless the mailpieces are prepared as prescribed by the Postal Service. This commenter believed that these standards were new restrictions and was concerned that the Postal Service included neither descriptions of ``face'' and ``holes, tearing guides'' in the proposed DMM language in the proposed rule, nor preparations ``prescribed by the Postal Service'' in order for mailers to maintain mailability for such pieces. The commenter believed that this meant that the Postal Service was seeking to prohibit such pieces from being mailed and expressed concern about the impact this would have on mailers of postcard bills. DMCS section 232.2 does not set forth new restrictions on postcards. This section carries forward the provisions of current DMCS section 100.043. The related DMM preparation standards for this DMCS provision are in current DMM C100.2.6 through 2.8. The Postal Service did not propose any changes to DMM C100.2.6 through 2.8, except that DMM C100.2.8 was revised to reflect the changes in the names of the classes and subclasses of mail proposed in MC95-1 and to reflect the proposed change to prepare this mail in trays rather than sacks. The reason current DMM C100.26 and 2.7 were not included in the proposed rule is because no changes were proposed for those existing sections. The asterisks that appeared between revised DMM C100.2.1 and revised DMM C100.2.8 meant that no changes were made to current rules that appeared between these two sections in the DMM. Accordingly, the current DMM provisions in C100.2.6 and 2.7 allowing postcards having the characteristics described in DMCS section 232.2, to be mailed at card rates if they are prepared under the provisions of DMM C100.2.8 will remain in effect. The commenter is also advised that the additional preparation standards in C100.2.8 for pieces having the aforementioned physical characteristics are for the purposes of maintaining eligibility for card rates. Pieces having punched holes, vertical tearing guides, an address portion smaller than the remainder of the card, and numbers or letters unrelated to postal purposes appearing in the address portion of the card, that are described in DMM C100.2.6 and 2.7, and that do not meet the additional standards in DMM C100.2.8, are still mailable but must pay postage at the letter rates rather than the card rates. 2. Automation Mailings a. 100% Barcoding Nineteen commenters responded to the Postal Service proposal that mailings at the proposed automation First-Class and automation Standard Mail subclasses be comprised of 100% delivery point barcoded pieces for letters and 100% ZIP+4 barcoded or delivery point barcoded pieces for flats. Although an automation subclass was not recommended by the PRC, the Postal Service reviewed these comments in light of its desire to retain the 100% barcoding standard for automation mailings in the First-Class Letters and Parcels subclass, automation mailings in the Regular Standard Mail subclass, and automation mailings in the Enhanced Carrier Route Standard Mail subclass. Furthermore, the Postal Service plans to extend the 100% barcoding standard to automation (barcoded rate) mailings within the Regular Periodicals subclass. Comments on this extension to automation mailings of Regular Periodicals will be permitted as discussed above. Two commenters supported this standard, one of which indicated that there is no need to phase in this standard because there is another subclass at which to mail noncoded pieces. Another commenter requested that implementation of this standard be delayed. Four commenters requested a gradual increase in the percentage of barcoded pieces needed to qualify, two of which suggested moving the standard first to 90% and then to 95%, and one which wanted a 2-year phase-in period. One commenter suggested that the standard be changed to 95%, and another suggested that the Postal Service provide some tolerance. One commenter asked whether there will be any error tolerance for occurrences such as labels falling off, address misprints, or a barcode spraying over two envelopes. Two commenters requested the rules be changed to allow nonbarcoded letter mail to be placed in the same trays as delivery point barcoded mail, one suggesting separation of barcoded and nonbarcoded mail in all trays, and one suggesting this practice be limited to AADC and mixed AADC trays. Three other commenters indicated that splitting their mail lists into two separate mailstreams, one with delivery point barcodes and one without, will increase their mail preparation expenses. One of these indicated it could result in more nonpresorted mail and another commenter indicated that this standard would eliminate large volumes of easier to process mail. Another commenter stated that together with the 150-piece minimum for rate qualification, the 100% barcoding standard will result in a net increase in postage for many mailers, which in turn could lead to a decrease in the volume of barcoded and presorted mail. This commenter further stated that because postage for nonbarcoded mail will increase total postage, the 100% barcoding standard could result in a decrease of business for mail service companies. As indicated in the comment section of the December 22, 1995, proposed rule, when mailers, as is currently permitted, mix delivery point barcoded mail and non-delivery point barcoded mail within 3-digit and residual portions of their barcoded rate mailings, the non-delivery point barcoded mail is rejected from barcode sorters and must be rerun on MLOCRs or multiposition letter sorting machines (MPLSMs). (Mail presorted to 5-digit packages and trays must currently be 100% delivery point barcoded.) Requiring mailers to prepare a separate mailing for non-delivery point barcoded mail eliminates these extra handlings and allows this mail to be directed properly from the start, resulting in more efficient Postal Service processing. These efficiencies are recognized in the lower automation rates recommended by the PRC and approved by the Governors. Accordingly, the Postal Service does not [[Page 10081]] believe that phasing in or delaying this standard is appropriate. In return for lower automation rates, mailers will have to perform the additional work of separating nondelivery point barcoded mail (letters) and non-ZIP+4 or delivery point barcoded mail (flats) from barcoded mail, and presenting it as a separate Presorted First-Class, nonautomation Regular Standard, nonautomation Enhanced Carrier Route Mailing, or nonautomation Regular Periodicals mailing. The Postal Service does not understand how this standard will eliminate large volumes of easier to process mail or how it will lead to a decrease in the volume of barcoded and presorted mail as some commenters suggested. The nonautomation mailing rates approved by the Governors are higher than current nonautomation rates, and much higher than the automation rates to be implemented. For example, the rate difference between an automation First-Class mailing and a Presorted First-Class mailing is 3.4 cents-per-piece at basic automation rates and 4.1 cents-per-piece for 3-digit automation rates. There is a 7.3 cents-per-piece difference between automation Regular Standard basic rates and nonautomation Standard Regular basic rates, and a 3.4 cents- per-piece difference between automation Regular Standard 3-digit rates and nonautomation 3/5 Regular Standard rates. Based on these incentives, the Postal Service believes most mailers will try to qualify as much mail as possible for the lower automation rates, thereby leading to an increase in barcoded mail. One commenter took exception to a Postal Service response to a comment indicating that if the 100% barcoding standard results in more nonbarcoded mail presented for OCR processing at the origin post office, the Postal Service believes that it has the operational capacity to process this mail. The commenter stated that mailers have been told for years that nonqualified residual must be presented early in the night because operating units aren't able to handle this volume. This commenter maintains that the 100% barcoding standard will result in larger volumes of nonbarcoded mail and that this in turn will affect the cut-off times that are now around 9:00 p.m. for acceptance of this mail. As indicated above, the Postal Service does not believe that the 100% barcoding standard will result in larger volumes of nonbarcoded mail. When mailers separate out the current 15% of their nonbarcoded mail that is currently permitted within barcoded rate mailings and submit it as a separate mailing, they are not increasing the total amount of nonbarcoded mail that must be processed by the Postal Service. Furthermore, these mailers are likely to submit the non- delivery point barcoded pieces as either a Presorted First-Class or nonautomation Regular Standard mailing. These presorted nonautomation rate mailings will contain 5-digit, 3-digit, and ADC trays (AADC trays for upgradable mail) that can be dispatched directly to the appropriate facility and thereby bypass individual piece processing at the entry SCF. For automation Regular Standard mail, mixed AADC trays will be directed to concentration centers, and nonautomation mixed ADC trays will be directed to origin ADC for processing, also bypassing processing at the entry SCF (unless the entry SCF happens to be the concentration center or ADC). First-Class Mail received at the entry post office in mixed AADC or mixed ADC trays will be processed at the entry SCF. However, the processing of this mail will be more efficient than the current processing of residual mail. Current residual mail contains a mix of barcoded and nonbarcoded pieces. Under Classification Reform, mixed AADC trays of automation rate mail will be 100% barcoded and can be directed to an outgoing primary barcode sorter, mixed AADC trays of upgradable nonbarcoded mail can be directed to an MLOCR operation, and mixed ADC trays of nonupgradable mail can be directed to the appropriate mechanized or manual operation. Furthermore, because the SCF of the entry post office will not also have to process on OCRs the current volume of mailer-prepared pieces without delivery point barcodes that are rejected from that plant's barcode sorters, there should be an offsetting lessening of mail volume presented to a plant's OCRs for processing. If, despite all these offsetting factors, a higher quantity of nonbarcoded single piece or mixed AADC barcoded mail is experienced at a particular postal facility, the Postal Service can make internal adjustments to handle that mail. Accordingly, the Postal Service reiterates its belief that it has the operational capacity to process this mail. Two comments were received regarding the exception set forth in the proposed rule to allow outgoing courtesy reply mail envelopes bearing a FIM and a preapplied unique 5-digit or unique ZIP+4 barcode to be considered to have a proper delivery point barcode as opposed to an 11- digit delivery point barcode required for all other mail. The Postal Service allowed this because this mail can be easily identified at acceptance by the presence of the FIM. One commenter indicated that he was pleased to see this provision and the other commenter noted that this exception was missing from the DMM standards and requested it be added to the DMM. Since the incidence of courtesy reply mail within the outgoing barcoded mailstream should be small, and limited to MLOCR users, this exception will be handled as an acceptance issue and will not be included in DMM standards. One commenter indicated that the 100% barcoding standards should also apply to Nonprofit Standard Mail and to Periodicals mail. The 100% barcoding standards have been added to Periodicals Automation mailings. Nonprofit Standard and Preferred Periodicals mail is not part of this phase of Classification Reform and therefore will not be affected by this standard at this time. As indicated above, this standard is being applied to automation Regular Periodical mail under the final rule. One commenter suggested that the Postal Service cannot barcode all addresses and that mailers therefore should not be held to this standard. This commenter also believed that there are addresses in the United States that have not been assigned ZIP+4 codes. One commenter indicated the ZIP+4 database has errors and suggested that the Postal Service match the DSF file against the ZIP+4 file, using CASS-certified software, to list all noncoded addresses, and further list good addresses that are not matched to the finest level to determine why this might happen. Another commenter expressed concern that valid addresses might not be coded due to data problems or strict software standards, and invalid addresses might appear valid because incorrect ZIP+4 codes are assigned. One commenter requested that the standard be changed from 100% to between 95% and 97% to account for new addresses and 911 conversions that are not in the database. There are no addresses for which the Postal Service is unable to assign a ZIP+4 code. For legal and privacy reasons, the Postal Service cannot disclose mailing lists. The ZIP+4 files contain ranges of ZIP Codes and are not intended as a product that would allow a mailer to determine whether an address on a mailpiece actually exists. Mailers with good quality addresses can obtain delivery point barcodes on their mailpieces. If they cannot, those pieces can be mailed at the appropriate rates for nonbarcoded mailings. Having [[Page 10082]] identified a need for accurate barcodes to ensure proper automation sortation, the Postal Service tests and certifies address matching software to ensure that it is producing correct barcodes. Because only correct barcodes are acceptable, software is controlled to help ensure that an incomplete or otherwise poor quality address receives a barcode only if it is correct. The Governors approved reduced postage rates for mail with correct barcodes. Those rates were not designed to apply to nonbarcoded mail or to mail with incorrect barcodes. Use of bad barcodes causes misdirected mailpieces. This in turn causes increased costs and reduces the Postal Service's ability to provide timely, consistent delivery service. To aid mailers with barcoding, the Postal Service already has a variety of tools to assist in improving address quality. If a mailer using CASS- or MASS-certified software cannot apply a correct delivery point barcode or, for flats a correct ZIP+4 barcode, to mailpieces, the mailer should, and will be required to, mail those pieces at the Presorted First-Class, presorted nonautomation Regular Standard, nonautomation Regular Periodicals, or single-piece rates, whichever is applicable. b. Courtesy and BRM Barcoded Envelopes Thirteen commenters responded to the proposed standard that, effective January 1, 1997, letter-size courtesy and business reply envelopes and cards included in letter-size an flat-size automation First-Class or automation Standard mailings must be automation- compatible, bear a FIM, and bear a correct barcode for the address to which the piece is returned. Three commenters requested a more liberal phase-in period for this standard, one specifying a minimum of 1 year, to allow mailers to exhaust their existing stock of reply mail letters and cards. Four commenters indicated that they do not support this standard, three of which stated that they object to the standard because enclosed reply mail has no connection with the cost of processing the outgoing mailpiece. One of those commenters further stated that the cost of processing reply mail should be borne by the reply mail. Several commenters had concerns over the certification standard and enforcement of this standard. One commenter stated that this will add costs to his mailing operation by requiring someone to proof every reply piece prior to insertion. Two commenters requested a further explanation of the certification standards and indicated most lettershops are not involved with the creation and postal approval of courtesy and business reply envelopes. Two commenters stated tracking down the producer of the business reply piece will be difficult. One commenter stated that the Postal Service's contention that a mailer capable of printing a barcode on an outgoing piece should be able to prepare properly barcoded reply pieces has no bearing on this standard because some mailers do not print the reply pieces, only the host pieces. Three commenters indicated that liability for noncompliance should be the owner of the mail, not the preparer or presenter. One commenter stated the Postal Service needs to clarify the actions that will be taken for noncompliance. One commenter stated that enforcement seems unattainable and that this standard could renew a call for a public automation rate. One commenter assumed that an improperly prepared reply piece discovered at acceptance would downgrade the entire mailing to a higher rate of postage and stated that such a penalty is draconian and a dangerous precedent that could drive postal customers away from using return mailpieces rather than encourage their use. The Postal Service is adopting its proposal that letter-size reply envelopes and cards that are included within both letter-size and flat- size mailpieces entered as automation First-Class, automation Regular Standard and automation Enhanced Carrier Route Standard mailings, must be automation-compatible, bear a FIM, and a correct barcode for the reply address. In addition, the Postal Service is extending this requirement to automation mailings of Regular Periodicals. Comments on this extension to Regular Periodicals will be permitted as discussed above. In addition to the customer convenience of a reply vehicle, increasing the use of barcoded reply vehicles is expected to keep postage rates down by making this mail more efficient to process. The Postal Service recognizes that mailers will need to work with their customers and possibly modify their contracts with advertisers and others to ensure that this standard is met. To allow time for this and for utilization of existing reply mail stock, the Postal Service is setting an implementation date of January 1, 1997, for this standard. The Postal Service does not believe a longer delay of this standard is warranted. At that time, automation First-Class, automation Regular Standard, automation Regular Enhanced Carrier Route, and automation Regular Periodicals mailers will be required to certify that enclosed reply pieces are properly prepared when the mailing is presented to the post office. Mailers will certify this by checking a box on the postage statement and signing the statement. For this purpose, the mailer is whomever presents the mail to the post office. As indicated above, it will be up to mailers to work with their customers and advertisers to ensure that reply pieces provided to mailers comply with the standards for barcoded reply pieces. Upon implementation, if mailers cannot certify that this standard has been met, or noncomplying reply pieces are found within the outgoing mailing, the mailing may not be mailed at the automation rates and must pay the higher nonautomation rates. Several commenters had questions concerning the standards for proper preparation of reply mail. Two commenters had concerns over the proposed standard for a delivery point barcode on all pieces. One pointed out that business reply mail is required to use a ZIP+4 barcode and that most courtesy envelope mail uses a unique ZIP+4 barcode. This commenter indicated that requiring an 11-digit delivery point barcode will require many mailers to make expensive form design changes to accommodate the larger barcode without any benefit to the Postal Service. The other commenter pointed out that there is a discrepancy between the Postal Service's apparent willingness to accept courtesy reply mail bearing unique 5-digit and ZIP+4 barcodes as properly barcoded outgoing pieces for purposes of meeting the 100% barcoded standard for automation rates, and its unwillingness to accept them on courtesy reply pieces contained within such mailings. One commenter questioned whether the standards for barcode preparation in DMM C840 would also be required as this section was not referenced in the appropriate E module sections of the proposed DMM language. This commenter was concerned that, if the reflectance standards contained in C840 will be required, that the envelope industry may not be able to meet them. This commenter also stated that because most reply envelopes are printed with a flexographic process, 100% of the barcodes cannot be guaranteed to meet the automation standards as this process does not produce results as consistent as laser, inkjet, and impact printing. One commenter, for environmental reasons, requested that the Postal Service work to modify the reflectance tolerance levels in DMM C840 for the area around the barcode, to improve the capability of its barcode readers to read nonpolymer [[Page 10083]] window envelope coverings, and to relax its flexibility standards in order to accommodate recycled paper. Another commenter requested that a reference to DMM C840 be included in the DMM standards for enclosed courtesy reply mail because this is the section that provides for barcodes in the address block. One commenter requested the ability to put barcodes in the address area for business reply mail. Another commenter believed that the Postal Service had committed to allow the barcode, permit holder, and permit number to appear on inserts through a window on business reply mail in early 1996 and thanked us for this effort. The DMM standards concerning courtesy reply mail can be found in DMM E140.1.5, E241.1.2, E641.1.2, and C810.8. The Postal Service has determined that, for purposes of enclosed courtesy reply mail under this section, a unique 5-digit or unique-ZIP+4 barcode provided by the Postal Service will satisfy the delivery point barcode standards. This will make these rules consistent with the acceptance provisions for allowing outgoing courtesy reply mail prepared in this manner to count toward the 100% delivery point barcoding standards for letter-size automation rates. The Postal Service will require that barcodes on enclosed reply mail meet the barcode, reflectance, and window standards in DMM C840. The Postal Service recognizes that some recycled paper will not meet the reflectance standards. However, recycled paper that meets the Postal Service reflectance standards is available. Because the reflectance standards reflect the current capabilities of USPS barcode reader equipment they cannot be modified. Originators of reply mail pieces will be expected to make the necessary changes to the preparation of these pieces to ensure that they meet all the applicable DMM standards. Although the Postal Service has not begun a formal rulemaking process to allow BRM format elements such as the name of the permit holder and the permit number to appear through a window on BRM pieces, it will consider this for a future rulemaking. The Postal Service will provide, free of charge, camera-ready positives of appropriate FIMs and correct barcodes for the production of reply mail. Mailers should contact their local Postal Service account representative or postal business center to obtain the positives and additional information on preparation standards. Obtaining the correct barcode for mailpieces is extremely important. The Postal Service assigns ZIP+4 barcodes to BRMAS reply pieces. Publication 353, Designing Reply Mail, contains information on correctly preparing barcoded courtesy reply mail and business reply mail. Additional information on business reply mail and barcode standards is contained in the Domestic Mail Manual. These publications contain information on how to prepare barcodes that appear in the address block of reply pieces and those that appear through an address window. c. Barcoded Tray and Sack Labels Nineteen comments were received concerning the proposal to require that automation First-Class and Standard Mail, and automation- compatible Publications Service Periodicals be prepared with barcoded tray or sack labels. The proposed Publications Service subclass of periodicals was not recommended to the Governors by the Postal Rate Commission. Instead revised rates for Regular Periodicals were recommended and these changes to Periodicals have been accepted by the Governors. The Postal Service is applying the requirement for barcoded tray and sack labels to all automation Regular Periodicals under these final rules. Eight commenters indicated that implementation of this standard needs to be delayed in order to give mailers enough time to buy equipment and/or adapt their systems. Two of these commenters indicated that at least 6 months was needed and another indicated that the date should be much later than July 1, 1996. One commenter indicated that he must replace dot matrix printers with ink jet, thermal or laser printers. One commenter indicated that this standard should be dropped as it will require him to stock labels for every 3-digit ZIP Code because he will no longer be able to handwrite labels for destinations that are seldom used. He indicated that this will cause him either enormous storage problems or require him to purchase either an outside vendor's system of special printers and unprinted labels. One commenter simply stated that his operation is not set up to handle barcoded labels at this time. Six commenters indicated that the barcode specifications in the DMM cannot be met by most mailers and are not met by the Postal Service's own label printing facility. Problem areas mentioned included the point size, characters per inch, and size of the labels. These commenters also pointed out that these DMM standards are not met by the PASSPORT and Monarch printers system indicated to be a way to meet these standards in the proposed rule. One commenter indicated that the DMM M032 exhibit needs to include the appropriate CINs for tray and sack labels under Classification Reform. Three commenters were concerned about the Postal Service's ability to supply the total demand for these labels in a timely manner. One commenter stated that the Postal Service needs to design better tray label holders that will hold the label in place. The Postal Service has investigated the barcode label specifications in the DMM in relation to these comments. As a result, some changes to the barcode tray and sack label specifications in DMM M032 have been made and are published in this notice. Revised CINs have also been published in the DMM section of this notice. In order to give mailers time to incorporate these barcode specification changes into any current systems they may have to produce labels and to give other mailers time to buy necessary equipment and adapt their mailing systems to incorporate barcoded tray labels, the Postal Service is delaying the requirement to use barcoded tray and sack labels with automation rate mailings until January 1, 1997. At that time automation First-Class, automation Regular Standard, automation Enhanced Carrier Route, and automation Regular Periodicals mailings must be prepared with barcoded tray or sack labels. As indicated above, comments will be allowed on the extension of this standard to Regular Periodicals mail. The Postal Service currently has tray management systems that utilize barcoded container labels deployed at its largest plants and is aggressively deploying these systems to other plants. Barcoded tray labels are needed to capture the efficiencies of the tray management systems. Barcoded labels are also currently used to sort trays and sacks of Standard mail at BMCs. Accordingly, mailers are strongly encouraged to begin using barcoded tray labels prior to the January 1, 1997, implementation date. Furthermore, mailers are reminded that, even though the requirement to use barcoded tray and sacks labels with automation mailings has been delayed, new tray and sack labels will be required for all mailings under Classification Reform (with the exception of some sort levels of First-Class Mail) due to the changes in postal networks, the addition of scheme sorts, and changes to the names of the classes of mail. As indicated in the previous notice, the Postal Service will supply barcoded tray and sack labels. Customers must complete Form 1578-B and submit it to their local post office, which after [[Page 10084]] checking the order, will forward it to the Postal Service Label Printing Center in Topeka, Kansas. The labels will be delivered in approximately 6 weeks of the order. These labels will reflect the network changes and the new CINs for Classification Reform and can not be used until July 1, 1996. Alternatively, mailers having a personal computer and a modem can obtain free PASSPORT software from the Postal Service that will enable them to order labels directly from the Label Printing Center in Topeka. In addition, the PASSPORT system will allow mailers to print barcoded labels on demand if they use one of three printers--Monarch 9425 or Monarch 9445, or Intermac 3000. The Passport system also includes free updates to the Postal Service labeling lists in DMM module L. PASSPORT software or further information about Passport may be obtained from the National Customer Support Center at 1-800-238-3150. The Postal Service purchased new tray labels holders last year that hold labels more firmly in place. The Postal Service is systematically replacing old tray label holders with the new ones. d. ZIP Code Limits on Letter-Size Automation Carrier Route Rates Eleven commenters responded to the proposal to limit letter-size automation Carrier Route rates to ZIP Codes where mail will be sequenced either manually or by a carrier sequence barcode sorter (CSBCS). One commenter is opposed to the idea of reducing eligibility for carrier route rates. One commenter indicated that this limit on where letter-size automation carrier route rates can be obtained worsens the rate qualification degradation caused by the 150-piece standard for 5-digit and 3-digit Automation rates. This commenter indicated that he will mail at the Enhanced Carrier Route nonautomation letter rates rather than try to qualify mail for the 5-digit barcoded rate. As indicated in previous notices, the limits on availability of automation Carrier Route letter rates are necessary for efficient Postal Service processing. For an increasing number of 5-digit ZIP Code areas, the Postal Service sorts mail to delivery point sequence (DPS), the sequence in which carriers deliver the mail, using two passes on delivery barcode sorters (DBCSs). Where this takes place, the carrier does not have to sort this mail manually into delivery or walk sequence, which saves carrier in-office time. At postal facilities where DPS processing is performed, it is to the Postal Service's advantage to have as much mail as possible DPS processed on the automated equipment. Currently, at 5-digit ZIP Code areas for which DPS processing on DBCSs has been implemented, all mailer-prepared carrier route and walk-sequence presorted letter mail received with barcodes is processed on DBCSs rather than being directed to carriers for manual sequencing. Carrier route and walk-sequence sorted letter mail without barcodes is directed to MLOCRs for application of barcodes and subsequent DPS processing. In many cases today, this process results in the Postal Service backflowing mail from a delivery unit to the place where the DBCS or MLOCR is located. Thus, there is no additional value provided to the Postal Service by mailer presortation to carrier route or walk-sequence versus a 5-digit presortation for automation- compatible letter mail at destinating DBCS sites. Carrier route rates are based in part on steps avoided by the Postal Service during processing. The preparation of carrier route packages and trays of barcoded mail addressed to ZIP Code areas at which mail is DPS processed on DBCSs does not avoid processing steps. The Postal Service will not give reduced rates for mail preparation that provides the Postal Service no value. Automation Carrier Route rates will therefore not be provided to barcoded carrier route mail at those 5-digit ZIP Code areas where DPS sequencing on DBCSs takes place. Carrier sequence barcode sorters (CSBCSs) are smaller barcode sorting machines that also sequence mail to delivery point. However, mail must already be sorted to the carrier route level before it can be processed on a CSBCS. Therefore it will still make sense for the Postal Service to offer carrier route rates for barcoded mail that it sorts on CSBCSs and for mail on carrier routes that are sequenced manually. The Postal Service is aware that this limit on automation Carrier Route rates will reduce the number of pieces a mailer can qualify for automation carrier route rates. It will be up to each mailer to make the decision whether the level of discount is worth the expense of preparing their particular mail for automation rates. The issue concerning the 150-piece minimum for 5-digit and 3-digit automation letter rates is further discussed under a separate section on 150-piece standards. Seven commenters indicated that the list of ZIP Codes ineligible for automation Carrier Route rates should be available on RIBBS on a permanent basis and that small mailers should not have to subscribe to the City/State file as this is an unnecessary and costly burden. The Postal Service sees no advantage and only possible confusion in providing a list of ZIP Codes where letter-size automation Carrier Route rates may be obtained. The argument that small mailers should not have to subscribe to the City/State file because this is an unnecessary and costly burden is not a good one. To qualify for automation Carrier Route rates, mailers will be required to match their addresses using CASS-certified software to a current CRIS file or other AIS product containing carrier route codes within 90 days prior to the date of mailing. The City/State File is automatically provided with all Address Information System (AIS) products and must always be used in conjunction with these AIS products for accurate matching. Accordingly, obtaining information as to which are the permissible ZIP Codes for automation Carrier Routes rates can be done at the same time as addresses are matched to the applicable CRIS, ZIP+4 or other AIS product that contains carrier route codes. In addition, some presort software vendors are including a City/State file match as part of the presort program. Accordingly, the Postal Service does not believe that use of the City/State file for determining the 5-digit ZIP Code areas for which automation Carrier Route rates can be obtained will be an unnecessary or costly burden to mailers. Furthermore, because software processing using the City/State file and an appropriate database containing carrier route information is already required for these mailings, the Postal Service does not believe that publication of the lists on RIBBS would be beneficial. Two commenters indicated that the Postal Service should provide an equipment deployment schedule to mailers that would give mailers sufficient lead time and would also provide the Postal Service a tool to make sure that the schedule is followed. The Postal Service does not plan to publish an equipment deployment schedule. Knowing when and where equipment is scheduled to be shipped to a plant will not provide mailers with the information that they are seeking. Knowing to which location and when a piece of equipment will be shipped does not equate to having a list of ZIP Codes that will be processed on that equipment. The 5-digit ZIP Codes that will be processed on this equipment are determined locally. ZIP Codes being processed on DBCSs may be shifted to processing on CSBCSs as these machines are deployed. This in turn will provide the capacity for additional ZIP Codes to be processed on DBCSs. [[Page 10085]] Because procedures will be in place to update the City/State file on an established bimonthly basis, as to which 5-digit ZIP Codes may obtain the automation Carrier Route letter rates, and because mailers can easily incorporate this information in their mailings approximately every 90 days in connection with the required address matching standard, the Postal Service does not deem it appropriate to publicly provide its equipment deployment plans. e. 5-Digit Scheme Sortation for Automation Letters Seven commenters responded to the information provided in the proposed rule that the Postal Service will not provide 5-digit scheme sortation for letters at the time Classification Reform is implemented. All seven commenters would like the Postal Service to do so. One argument for this action is to avoid the need to install a separate and costly software release to implement it at a later date. Three of these commenters indicated that having scheme sortation would enable mailers to qualify more mail for 5-digit automation rates. Two commenters indicated 5-digit scheme sort would reduce costs for both mailers and the Postal Service. Two commenters indicated that the volatility of 5- digit schemes should be no different than the update of the ZIP Codes eligible for letter automation Carrier Route rates and suggested a workgroup be formed to discuss obstacles. One commenter similarly stated that it seems that there are systems in place to handle volatility of scheme issues. The Postal Service recognizes that 5-digit scheme sortation will allow mailers to qualify more mail for 5-digit automation letter rates, and agrees that it is in the best interest of mailers and the Postal Service to provide these schemes when practical. As indicated in comments on automation Carrier Route rates, the Postal Service is actively deploying CSBCS and DBCS equipment. ZIP Codes being processed on DBCSs may be shifted to processing on CSBCSs as these machines are deployed. This in turn will provide the capacity for additional ZIP Codes to be processed on DBCSs. This volatility will result in frequent changes to 5-digit schemes being used within local plants in the near future. Therefore 5-digit scheme sorts will not be implemented at this time. Given this, the Postal Service does not believe that it would benefit from forming a workgroup to discuss these matters. f. 3-Digit Scheme Sort for Letters Eleven comments were received in response to the provisions for a 3-digit scheme sort for automation letters set forth in the Proposed rule. All 10 commenters interpreted proposed section DMM M810.1.7 as requiring all possible 3-digit sorts to be prepared before performing 3-digit scheme sorts and all disagreed with it. One of these commenters indicated that requiring 3-digit sorts prior to scheme sort would drive an unacceptable amount of mail into the residual mailstream, both decreasing mailer discounts and increasing the amount of raw mail processed by USPS receiving units. Several commenters pointed out that this information conflicted with the information presented in the discussion of comments that scheme sorts could be prepared prior to preparing 3-digit sortations. One commenter asked that we reword the obvious error in DMM M810.1.7. One commenter stated that if the Postal Service does require preparation of 3-digit trays prior to preparing 3- digit scheme trays, that this is contrary to what was agreed to at the Implementation Advisory Group meetings and also defeats the purpose of scheme sort by not allowing mailers to merge small quantities of some scheme 3-digit areas with larger quantities of others in order to meet a single 150-piece minimum quantity standard for the 3-digit scheme. The Postal Service acknowledges that the wording of proposed section DMM M810.1.7 was misleading. This section was intended to give greater flexibility to mailers and not intended to require that 3-digit sorts would have had to been prepared prior to preparing 3-digit scheme sorts. The Postal Service agrees with mailers that this would be counterproductive, and notes the comment indicating that elimination of 3-digit scheme sort would increase the amount of mail falling into basic rate levels of sortation. The Postal Service has re-reviewed comments opposed to requiring scheme sort that were received in response to the August 30 notice. Reasons for opposition were either not given (other than to say it would be a barrier to automation) or were based on desires not to change current software programs or to be able to use the same software sortation program for both automation and nonautomation mail. As pointed out to these mailers in the comments section of the proposed rule, mailers will be required to change their software because of major changes under Classification Reform in the way mail is sorted, including different sortation rules for automation mail and nonautomation mail. Accordingly, the Postal Service has revised the DMM language in this final rule to require use of 3-digit scheme sort. A separate labeling list in DMM L003 contains the information needed to sort to 3- digit schemes and to sort non-scheme 3-digit ZIP Codes to direct 3- digit trays. This will simplify sortation rules to avoid confusion such as that encountered with the Proposed rule, and also, as pointed out by a commenter, ensure that mail is sorted to the finest extent possible. This will also ensure that mailers will qualify the most mail possible for 3-digit Automation rates. g. 5-Digit Scheme Sortation for Automation Flats One commenter indicated a desire for implementation of a 5-digit scheme sort for automation flats. Five-digit scheme sortation for automation flats is not foreseeable in the near future. The Postal Service will look at the feasibility of such sortation after it has implemented 3-digit scheme sortation for automation flats. h. 3-Digit Scheme Sort for Flats Four comments were received concerning provisions for a 3-digit scheme sort for automation flat mailings. All four expressed a desire that these schemes be available on the date of implementation because it will benefit both the Postal Service and mailers. One commenter also pointed out that it would prevent the cost of installing another software change if this was implemented on the same date as Classification Reform. The Postal Service believes that a 3-digit scheme list for flats is feasible and has begun work on developing such a sortation scheme. However, work will not be completed in time to make this available with Classification Reform implementation. The 3-digit scheme sort for flats should be available in 1997. i. Value Added Mailings Nine comments were received concerning the Postal Service's proposal to include only pieces with postage affixed at an automation First-Class or automation Standard Mail rate in mailings presented under the value added refund (VAR) procedures in DMM P014.4. All nine commenters strongly disagreed with this proposal and stated that the original intent of value added refund procedures was to encourage the upgrading of Presorted First-Class Mail to barcoded mail. Two commenters pointed out that this was never offered for discussion with [[Page 10086]] members of the Implementation Advisory Group. One commenter indicated that this will reduce the volume of barcoded mail received by the Postal Service. One commenter indicated that this standard increases the postage risk of presort bureaus because the bureaus will be required to affix 5-cent postage to each nonbarcoded piece rather than 2-cents, and it is unlikely the difference could be recovered from the mailer. One commenter indicated that no mailer would be able to remeter all the pieces that did not qualify for barcoded rates. Two commenters indicated that not all pieces coming into their shop will enter into the automation mailstream. One of these further indicated that this will cause problems for mailers when doing a handsort on nonautomation mail. In response to mailer comments, the Postal Service has determined to continue to allow mail having postage affixed at the Presorted First-Class rate or presorted nonautomation Regular Standard rates, to continue to be mailed under the value added refund program. j. Optimizing 5-Digit Sortation for Automation Letters One commenter asked whether mailers would be able to continue to optimize 5-digit sortation of Automation letters by moving some but not all pieces able to be sorted to 5-digit trays to 3-digit or 3-digit scheme trays to bring the total number of pieces sorted to the 3-digit/ scheme destination to the minimum of 150 pieces. Because 5-digit sortation is optional for Automation mail, mailers are not required to sort all possible pieces to the 5-digit level. Accordingly, if a mailer has more than 150 pieces for a 5-digit ZIP Code destination and fewer than 150 pieces for a 3-digit or 3-digit scheme destination, mailers will be permitted to move pieces that potentially could have been sorted to 5-digit destinations to a 3- digit/scheme level of sortation. Each 5-digit destination would have to be left with a minimum of 150 pieces trayed to that destination and each 3-digit/scheme destination would also have to have a minimum of 150 pieces trayed to that destination. Furthermore, the pieces that could have been placed in a 5-digit tray but were actually placed in a 3-digit or 3-digit scheme tray would have to be documented and reported as qualifying for 3-digit automation rates. k. Grouping of Pieces in AADC and Mixed AADC Trays in Automation Letter Mailings One commenter requested that this standard be dropped because it would be impractical to sort mail within AADC and mixed AADC trays into 3-digit or AADC groups in his MLOCR operation. This commenter indicated that if the MLOCR determines on the first pass that there are fewer than 150 pieces for a particular 3-digit ZIP Code, then, on the second pass groups with fewer than 150 pieces for a 3-digit or 3-digit scheme will be aggregated to appropriate AADC or mixed AADC bins. Imposing the standard for ZIP Code sortation within the AADC and mixed AADC trays would require costly and time-consuming additional presort passes on this mail to sort it into 3-digit sequence. The Postal Service maintains that for mailers using presort software, or even sorting manually, it should not be a burden to maintain 3-digit/scheme groupings when placing mail in AADC trays or to maintain groupings by AADC within mixed AADC trays. However, the Postal Service acknowledges that this could be problematic for some MLOCR users depending upon how mail is sorted to bins on the second pass. The Postal Service is retaining this standard because it allows mailings to be easily matched to standardized documentation during verification, or if weigh verification is used, to determine that mail is presorted to the finest extent possible. However, the Postal Service will waive this standard for MLOCR users who submit standardized documentation. In addition, the Postal Service has reviewed its need for pieces within mixed AADC trays grouped by AADC to be further subgrouped by 3- digit ZIP Code within each AADC group. This 3-digit subgrouping would also be burdensome to MLOCR users sorting to AADC bins. Also, documentation of these 3-digit subgroupings within mixed AADC trays could potentially require a mailer to list every 3-digit ZIP Code in the country. The Postal Service has determined that the added length to required documentation and added sortation complexity is not outweighed by the gains in ease of verification. Accordingly, the final implementing DMM language will require only grouping by AADCs within mixed AADC trays. l. Numeric ZIP Code Standard for Automation Letter Mail One commenter questioned the meaning of proposed DMM E241.1.1c that required Regular Periodicals barcoded letter rate mail to ``Bear a delivery address that includes the correct numeric ZIP+4 or 5-digit ZIP Code (or, only if prepared with a delivery point barcode (DPBC), the numeric equivalent to the DPBC).'' This commenter asked whether this section meant that the entire DPBC numeric must be printed in front of the delivery point barcode as part of the ZIP Code correction process allowed MLOCR mailers. This standard means only that each piece in an automation mailing must bear a numeric ZIP Code in the address and that this ZIP Code can be either a 5-digit, ZIP+4, or delivery point numeric ZIP Code at the choice of the mailer, with the exception that a delivery point numeric code is only permitted on pieces bearing a delivery point barcode. m. Request for Elimination of Required Tray Sortation Level One commenter wanted to begin sortation at the AADC tray level if the cost of manual presortation was found to be higher than the savings from sorting mail to qualify for 3/5 rates and 3- and 5-digit automation rates. The presort rates are based on presorting mail to the finest extent possible, with the exception that 5-digit trays are optional for automation rate letters and for the upgradable presort option for nonautomation letters. Accordingly, mailers will be required to prepare 3-digit trays of automation letter mail any time there are at least 150 pieces for a 3-digit ZIP Code before preparing AADC trays. Similarly, for upgradable Presorted First-Class and upgradable nonautomation Regular Standard Mail preparation, 3-digit trays will be required any time there are at least 150 pieces for a 3-digit ZIP Code prior to preparing AADC trays. For all other mailings, preparation of all possible 5-digit trays and 3-digit trays is required prior to preparing ADC trays. n. ACT Tags Two comments were received in response to the Postal Service's removal of the standard for mailers to apply ACT tags to trays of automation First-Class letters. One commenter applauded the decision to drop this standard. One commenter pointed out that current DMM P014.4.14c requires mailers to sleeve, band, and ACT tag all trays in a mailing for which a value added refund (VAR) request will be submitted. The commenter requested that the Postal Service remove this standard from the DMM. The DMM language in this final rule removes the requirement for use of ACT tags within VAR mailings. However, mailers participating in other special programs such as multiple acceptance times may still be required to prepare mail with ACT tags. [[Page 10087]] 3. Letter Mail a. Standard To Prepare All Letter Mail in Trays Eight commenters responded to the Postal Service's proposal to require preparation of all letter mail entered at reformed subclasses in trays. Six of the comments were opposed to this standard for Enhanced Carrier Route Standard Mail. Two were opposed to it as a standard for any letter mail, and one was concerned about the availability of trays. Three commenters indicated the traying standards would result in higher preparation costs for their mailings and loss of cube on trailers for drop shipment. One of these commenters indicated that this standard and others led to a net loss for his company despite the decrease in Automation rates. Two commenters indicated that since the attributable costs underlying the proposed Enhanced Carrier Route rates were based on flat-sized mail, and therefore letter-size mail is paying a higher rate, letter mailers should have the option of traying or sacking this mail. One commenter stated that heavy letters, which are not automation-compatible due to weight, would be more efficiently handled in sacks since more pieces could fit into a sack than in a tray resulting in fewer containers for the Postal Service and mailers to handle. One commenter stated the Postal Service should be prepared to allow optional forms of preparation such as bundles on pallets in the event of tray shortages. Another commenter stated that Enhanced Carrier Route letter mail should be allowed to be prepared as packages on pallets provided such preparation is limited to 5-digit pallets. This commenter believed this limited packages on pallets preparation would not have a great impact on handling for the Postal Service and would alleviate the demand for trays. Trays are the most efficient method of containerizing letter mail for the Postal Service. Since the Postal Service prepares letter mail in trays, it is important that all mailer prepared letter mail be prepared in trays. Accordingly, the DMM standards set forth in this final rule require that all letter mail, except for Nonprofit Standard and Preferred Periodicals, be prepared in trays. It should also be clarified that although encouraged, it is not required that Standard or Periodicals letters prepared in trays be palletized. Mailers will be permitted to bedload trays of letter mail. However, if a mailer wants to palletize Standard letter mail, it must be prepared in trays on pallets, with one short-time exception. If, as described in the section on flat-size mail, the letter-size piece also meets the definition of an automation-compatible flat, and a portion of the mailing job is mailed at the automation Regular Standard flats rate, until January 1, 1997, all the pieces in the mailing job may be prepared in packages placed directly on pallets provided all pieces pay the applicable rates as a flat-size piece and the amount of nonautomation Regular Standard mail palletized in this manner does not exceed 10% of the amount of Enhanced Carrier Route and Automation Regular Standard mail in the mailing job. After January 1, 1997, all letter mail, other than letter mail meeting the dimensions of an automation flat and mailed at those rates, must be prepared in trays and preferably in trays on pallets. The Postal Service acknowledges that trayed mail can sometimes fill trailers more quickly than the same amount of mail prepared in sacks, and that the number of pieces that can be placed in a trailer might affect a mailer's decision as to whether to prepare mail for destination entry discounts. The standard to use both 1-foot and 2-foot trays will aid in assuring the most efficient use of trailer space under the traying environment. As indicated in response to a previous comment, the Postal Service recognizes that many mailers will be affected by start-up costs for new preparation criteria and possibly some additional ongoing costs. However, the Postal Service believes that these preparation criteria are necessary to achieve one of the goals of Classification Reform of encouraging mail that is most efficient for the Postal Service to handle. One commenter indicated that they now prepare letter mail in sacks in which they mix letter-size and flat-size mail (this mail is a flat only because it exceeds \1/4\-inch in thickness). This mailer indicated that the standard to tray letters and sack flats will be a problem for them causing their mailstream to be split four ways (barcoded vs. nonbarcoded and trayed vs. sacked). One commenter stated if they could not sack their letters they would like to tray their flats so their automated handling systems could handle only one type of equipment. Similarly, one commenter requested the ability to place automation Standard flats in flats trays since it is not efficient to prepare both barcoded tray labels and barcoded sack labels. Currently, mailers are not permitted to mix mail of different mail processing categories in the same mailing, except for limited circumstances under which mailers may combine machinable and irregular parcels. The standard for separate mailings for separate mail processing categories will continue under Classification Reform. Letters and flats are handled under two separate mail processing streams and must not be merged together in the same mailing. Under Classification Reform, mail exceeding \1/4\ of an inch in thickness and classified as a flat will therefore be required to be sacked or prepared as packages on pallets. The Postal Service also will not permit flat mail to be prepared in letter trays due to the strong chance this mail will be directed to letter sorting operations where such pieces will not process on mechanized or automation letter sorting equipment. As indicated in the last two notices, Standard flats will not be permitted to be prepared in flats trays upon implementation of Classification Reform. The Postal Service plans to initially limit the use of these trays to First-Class flats to allow for a more gradual change to a future operating environment in which all flat mail will be prepared in trays (except for Standard Mail and Periodicals prepared as packages on pallets). Currently, the Postal Service processes First- Class flats in trays. Generally, flats trays are better handled at processing and distribution center facilities and Airmail Facilities than sacks which are more conducive to BMC processing. At processing and distribution center facilities and at AMFs the Postal Service has tray handling systems. When barcoded flat mail is distributed on flat sorting machines using the barcode, there are instances were the flat mail is dispatched in flat trays to the next handling or destination regardless of class. Therefore, it is likely that as part of transitioning all classes of flats mail to tray preparation, allowing automation-compatible (barcoded) flat mail in trays would be the next step, albeit a future step. b. 150-Piece/Full Tray Standard Twenty-two commenters responded to the Postal Service's proposal to require 150 pieces per 5-digit ZIP Code or 3-digit ZIP Code destination to qualify for 5-digit or 3-digit automation rates, and to be used as the basis for sorting to 5-digit, 3-digit and AADC trays. Six of these commenters also voiced concern over the standard for 150 pieces per 3- digit ZIP Code area being the basis for rate qualification and sortation for the 3/5-digit nonautomation Regular Standard rates. Nine commenters cited specific examples of rate degradation in the automation rate categories and four commenters were concerned about rate degradation in the 3/5-digit [[Page 10088]] nonautomation Regular Standard rate categories. These commenters indicated that the 150-piece minimum would cause varying percentages of their mail to drop from 5-digit to 3-digit, or from 3-digit to basic within the automation rates, or from 3/5-digit to basic in the nonautomation Regular Standard rates. Most of these commenters had concerns regarding the shift in rate qualifications based on a comparison of the qualification criteria under the current 10-piece/50- piece minimums to qualify for current barcoded rates or the current 125-piece/15-pound criteria to qualify for current 3/5-digit non- automation rates and the new 150-piece qualification rules. One commenter indicated that because the proposed automation rates were slightly lower than current rates the rate impact might balance out for the barcoded portion of the mailing, but that since the rates for nonbarcoded mail were increasing, it would raise their total postage bill. Two commenters stated that the 150-piece rule would have a big impact on 5-digit rate qualifications, one indicating all his current 5-digit mail will move to the 3-digit qualification level resulting in a 3% postage increase. The other indicated that the 150- piece standard at the 5-digit level would force many mailers into moving their mail into the Enhanced Carrier Route subclass since they may have many carrier routes that will meet the 10-piece package minimum, but very few groups of 150-pieces to a particular 5-digit ZIP Code. One commenter indicated that modeling based on the 150-piece criteria showed that some of his third-class customers would pay higher rates under Classification Reform even though their lists were close to 100% barcoded. One commenter indicated they will probably discontinue preparation of 5-digit sortations in order to be able to continue qualifying mail for the 3-digit level, and that this degradation of presort seems counter-productive to the Postal Service. Other commenters had further concerns over the rate implications for mail that could physically fill trays but would not meet the 150- piece standard. Sixteen commenters in total requested that the Postal Service allow mailers two choices to qualify for rates, one based upon physically full trays without regard to the number of pieces within them, and the other the proposed 150-piece minimum. These commenters indicated that enforcement of the 150-piece standard will cause a tremendous hardship on the ability of mailers of thicker pieces to discount mail. One commenter stated he thought the idea was to fill trays. Six commenters further requested that the physically full tray option allow full 1-foot trays to qualify for rates without regard to number of pieces. Two commenters indicated a physically full tray criteria for rates and sortation would promote tray usage efficiencies. One commenter stated that the definition of a full tray should be 85% full because this is flexible enough to allow mailers to calculate the number of pieces needed to fill a tray and would resolve mailer consternation over near misses such as 130 pieces filling a tray but not being eligible for a rate. Two commenters believed the Postal Service should perform market surveys to gather data on mail volume characteristics to assess the impact of the 150-piece minimum on its customers. Some of these commenters provided statistics on the number of pieces that would fill trays as requested by the Postal Service in the proposed rule. One commenter indicated they had pieces for which 47 to 65 pieces would fill a 1-foot tray. Five commenters cited pieces that would fill two-foot trays ranging from as few as 63 pieces upwards to 140 pieces per tray. One commenter pointed out that by his estimate ``heavy'' letter mail, weighing up to 3.4383, which will be permitted to qualify for letter-size barcoded rates under Classification Reform, would generally average 125 pieces per 2-foot tray. Another commenter also noted the Postal Service's provisions for including ``heavy weight'' mail in the Automation mailstream and indicated this will ``probably encourage a growing volume of such letters that fill trays in less quantity than lighter weight mail.'' Another commenter pointed out that allowing an option to base the qualification and sortation on a physically full tray would allow more opportunity for larger size pieces that meet both the letter size dimensions and the automated flat dimensions to be prepared as a barcoded letter. Two commenters also stated that basing the traying criteria on the 150-piece minimum could result in service degradation since much mail now trayed to the 5-digit or 3-digit level will drop down to the AADC level. Two other commenters indicated that this drop in sortation level will result in more residual or mixed AADC mail to be processed by the Postal Service at the local SCF because some mail currently placed in AADC trays will not be able to meet the 150-piece standard and will subsequently be trayed at the mixed AADC level. These commenters questioned whether the Postal Service could handle this volume and questioned whether requiring a move from an AADC tray to a mixed AADC tray made any sense from a mail processing standpoint. One commenter stated that basing rates on the average number of pieces that fill a 1-foot tray makes sense only if adequate supplies of 1-foot trays are available and was concerned that if they were not and overflow had to be placed in a 2-foot tray it would result in loss of cube space for drop shipment purposes. One commenter questioned whether the 150-piece rule applied to postcards since 150 postcards equals only about 4 inches of mail. One commenter stated his thickness varies and in many instances 150 pieces will not fit in a single tray. Another indicated that sometimes he produces sub-150-piece count trays containing mail of varying thicknesses under a manifesting agreement. This commenter indicated that because he manifests he cannot arbitrarily move mail around to fill trays. One commenter indicated that at only 125-140 pieces per tray none of this mail would qualify and the customer would have to revise their mailing package which could result in losing sales. Several commenters who advocate addition of an ``or full tray'' criteria to the qualifications for First-Class and Standard Regular Automation mail and to Standard Regular Nonautomation mail, challenged the reasons given by the Postal Service in the Proposed rule for keeping the standard at 150 pieces. Four commenters indicated that having an option to base discounts on full tray should not complicate acceptance too much since mailers are currently preparing and documenting this mail now under tray-based rules and the Postal Service is currently accepting it. Five commenters responded to the Postal Service's statement that if a physically-full tray qualification criteria were instituted, it would be based on a physically full 2-foot tray rather than a one-foot tray. These commenters stated this makes no sense since the Postal Service is basing the 150-piece rule on a one-foot tray. Three of these commenters stated this would be unfair since it would require these mailers to make twice as many trays to achieve equal qualification levels. One commenter stated that allowing physically full trays to qualify without a piece limit does not make sense from a unit (per piece) cost or gross profit standpoint in that the Postal Service would have to transport up to six trays of thicker Standard Mail for every one tray of First-Class Mail, and would receive less revenue for the Standard Mail. [[Page 10089]] One mailer of Standard pieces indicated that it appears the 150- piece standard was designed primarily for MLOCR barcode sorter users. This commenter indicated that since 90% of mailers do not use barcode sorters, this reasoning should not apply to them. One commenter simply stated that the level playing field argument does not make sense. Four commenters challenged the Postal Service's argument that the 150-piece minimum per 3-digit area to be applied to nonautomation Regular Standard Mail will not keep qualification levels equivalent to today arguing that today mail can qualify based on either 125 pieces or 15 pounds of mail. Two commenters gave examples wherein their mailings currently require only 75 pieces or 80 pieces to meet the 15-pound minimum. These mailers indicated that the 150-piece rule will either double or increase by 78% the number of pieces they will need to qualify for the 3/5 rate. These commenters also pointed out that the dual standard of 200 pieces or 50 pounds still applies as the minimum quantity standard for each Standard mailing. The Postal Service believes that applying a 150-piece minimum to an entire 3-digit area to qualify for 3/5 nonautomation Regular Standard rates will, on average, result in comparable or better rate qualifications when compared to current qualification criteria, even for heavier pieces of mail. Currently, the 125-piece/15-pound sacking rules are applied separately to 5-digit sacks and to 3-digit sacks. The two commenters with pieces meeting the 15 pound requirement with 75 to 80 pieces of mail to an individual 5-digit or 3-digit sack, would still be able to meet the 150-piece requirement per 3-digit area in instances where they had an equivalent number of pieces that are now contained in two 5-digit sacks for the same 3-digit area, or in other combinations of 5-digit and 3-digit sacks for the same 3-digit area. Mailers who currently qualify for this rate based on a separate 125-piece requirement should, on average, be able to qualify more mail for 3/5 rates since the 150-piece rule applies to an entire 3-digit area and not to individual 5-digit or 3-digit trays. The Postal Service would like to point out to the two commenters who were concerned that they could not qualify for automation rates based on the 150-piece rule because they could not fit 150 pieces in a single tray, that the Postal Service has provided for overflow trays wherever it has established a 150-piece minimum. This means that if a mailer has 150 pieces for a given sortation level, the mail will qualify for the rate regardless of the number of trays it takes to tray the mail to that sortation level. Likewise, for thinner pieces, if the 150 piece minimum for a rate level is met, the mail will qualify for that rate even if 150 pieces does not fill a tray. The rate design approved for automation letters provides reduced rates for these mailings. Those rates are based in part on more stringent preparation standards that allow more efficient Postal Service processing of that mail. Under the Automation Standard Mail (A) letter rates, certain mailers could experience a minor increase in postage over what they pay today given a number of assumptions, such as that all mail not eligible for an automation carrier route rate moves to the 3-digit barcoded rate level, and that there are no basic automation rate pieces in the mailing. This hypothetical postage increase would also be offset by any pieces which the mailer now qualifies for basic rates, because there is a significant decrease in the basic automation rates under Classification Reform. Overall, the Postal Service believes that the automation letter discount levels and preparation standards will lower postage bills for automation mailings for most mailers of all three classes. Under current Barcoded rate mailing rules, a large portion of mail qualifying for 5-digit and 3-digit rates is already prepared in full 2-foot trays without packages. Because the 150-piece standard is based on a 1-foot tray, most mailers should be able to place even more mail in full 5- digit and 3-digit trays under this standard. The 150-piece minimum represents an average of the average number of First-Class pieces that can fill three-fourths of a 1-foot tray and the average number of Standard letter-size pieces that can fill three- fourths of a 1-foot tray. This 150-piece average is applied uniformly to all letter mail classes for purposes of determining rate qualification and for determining when to prepare a particular sortation level of tray for automation presort in the final DMM standards published in the latter part of this rule. The purpose of the standard is to apply rates to tray levels and to eliminate as much as possible the preparation of packages for automation mail. Basing the standard on an average number of pieces it takes too fill a 1-foot tray also provides the opportunity for the Postal Service to increase the number of pieces sorted to 5-digit and 3-digit destinations for the vast majority of letter mail. The Postal Service reiterates that it also desires to apply rates on an equal basis to all mailers. The application of the 150-piece rule allows mailers of postcard-size or other thin pieces to qualify for rates in the same way that thicker pieces can qualify, and in the same way as the vast majority of mail in the middle of this spectrum. Since the 150-piece standard is based on an average of averages for First- Class and Standard Mail, the Postal Service believes this standard is equitable for both classes of mail. Moreover, the rates being implemented are based on cost and volume figures that relied on the 150-piece criteria. The Postal Service recognizes that pieces exist that can fill trays with fewer than 150 pieces and that mailers of these pieces may not be able to qualify as many pieces for 5-digit and 3-digit automation rates under a 150-piece rule as they would under a physically full tray rule. However, these mailers will not experience any more of a rate degradation than will any other letter mailer at automation rates. Testing with heavy letters has shown the Postal Service that heavier pieces reduce automation productivity. Thicker pieces also result in more tray handlings for the Postal Service, and increased use of cube in its transportation systems, as compared to an equal number of thinner pieces. It is noted that all but one of the commenters requesting application of rates based on physically full trays were Standard rate mailers. Standard Mail postage does not increase with weight as does First-Class Mail, which means the same minimum piece postage will be received regardless of the thickness of the pieces, up to the minimum per piece rate weight breakpoint. Accordingly, if the Postal Service allowed these thicker pieces to obtain rates at quantities of less than 150 pieces, the Postal Service would be granting a rate break to mail that will cost it more to process. Although the Postal Service has permitted heavier weight pieces to qualify for automation rates, we do not feel it is in our best interest to encourage mailers to increase the thickness of their pieces in order to lower their rate qualification thresholds. One commenter indicated he could fill a 1-foot tray with as few as 47 pieces. It would be hard to justify to the commenters to this rule who were concerned about rate degradation in terms of moving from a 50-piece per 3-digit qualification standard to a 150-piece qualification standard, why we were allowing a mailer of thicker pieces (and therefore more expensive to process) to qualify even fewer pieces [[Page 10090]] than are required today (47) for a 3-digit rate, while maintaining that they must continue to meet the 150-piece rule to qualify. The Postal Service recognizes that the 150-piece sortation rules, when applied to pieces that fill 1-foot or 2-foot trays with fewer than 150 pieces may result in instances where mail ends up not being sorted to as fine a level as if a full tray rule were instituted. By the same token, the Postal Service will be obtaining finer levels of sortation through use of the 150-piece rule from thinner pieces. On average, the Postal Service feels that the 150-piece rule will provide a good level of sortation for most mail. In the past the Postal Service has attempted to fine-tune mailing standards and rates to meet the needs of a variety of unusual mailpieces that constitute a small percentage of the mailstream. The result was a Domestic Mail Manual and rate schedule that led to public outcries for ``simpler rules.'' As indicated in past notices and proposals, another benefit to having only one set of preparation criteria is simplicity. Currently the Postal Service provides three different types of sortation for barcoded letter mail. It strongly wants to maintain only one type of preparation under Classification Reform. Classification Reform to a great extent is about simpler preparation rules, and the Postal Service has determined to keep it that way. Therefore, the final rules in this notice retain the 150-piece rules and do not permit qualification for rates based on an indeterminate number of pieces that would produce a physically full tray. c. Overflow Trays One commenter disagreed with the Postal Service's proposal to require use of overflow trays in those instances where the 150-piece rule is applied. The Postal Service is retaining this rule in order to ensure that mail is sorted to the finest extent possible. d. Use of both 1-foot and 2-foot trays Fifteen commenters responded to the Postal Service's proposal to require letter-size mailings to be prepared in a combination of 1-foot and 2-foot trays in a manner that will result in the fewest number of trays. Seven commenters stated that use of two sizes of tray should be left to the mailer's discretion in that it will be in the mailer's interest as well to use the fewest number of trays. Three of these commenters indicated that the Postal Service could re-evaluate making this a standard at a later date if it finds mailers are not preparing mail in an economical fashion. Five commenters had concerns about pallet preparation in that use of two sizes of tray could lead to unstable shipments. One of these commenters requested that all 1-foot or all 2-foot trays be permitted for purposes of building pallets. Five commenters were opposed to this standard stating it will create a very difficult manufacturing operation to manage and will cause significant production costs. One of these commenters indicated it will eliminate his ability to automate the sleeving and banding process and doubles the capital and space needed. Two commenters were concerned whether the Postal Service will have adequate supplies of the different sizes of trays. One of these commenters was particularly concerned about the availability of extended mail trays. This mailer indicated difficulties in obtaining adequate quantities of extended mail trays now and asked the Postal Service to indicate the steps it is taking to ensure adequate supplies since moving mail from extended mail trays to standard letter trays jeopardizes their mail production strategy. Another commenter similarly stated that shortages of 1-foot trays that would result in mailers having to use only 2-foot trays in their mailings would result in problems in determining drop shipment loads and would increase cube space needed on transportation. One commenter stated required use of both 1-foot and 2-foot trays will be a barrier to mailers preparing Automation mail. The 150-piece minimum quantity to qualify for automation letter rates is based on the preparation of average size pieces in a 1-foot tray in order to make it easier for mailers to qualify for those rates, and to provide more full trays to direct destinations thereby lessening any loss of presort to the Postal Service. In order to increase the number of direct trays to sortation destinations for all letter mailings, the proposed DMM language would require use of both 1-foot and 2-foot trays for all mailings of letter-size pieces in all reformed subclasses. The Postal Service does not want to potentially double its number of tray handlings by allowing a mailing to be prepared entirely in 1-foot trays. Also, the Postal Service does not want to increase transportation costs by shipping an increased number of less-than-full 2-foot trays. Accordingly, the standard to use both 1-foot and 2-foot trays where appropriate is considered necessary by the Postal Service. The final DMM language contained herein requires mailers to fill as many 2-foot trays as possible before filling 1-foot trays. The Postal Service recognizes that this standard will cause mailers to make major changes to their production lines and to maintain a supply of both 1-foot and 2-foot trays. It is believed that presort software developed to accommodate the Classification Reform presort structure will include mail documentation that provides information as to what size tray mail should be placed in as well as indicating where the tray breaks are. If this type of software is used it may not be necessary to create two separate production lines for the different tray sizes. The Postal Service is anticipating the increased need for both sizes of trays and has purchased additional supplies. In addition the Postal Service is continuing to review the need to purchase more trays. If local shortages of a particular size tray develop, mailers will have to tray using the tray size that the Postal Service provides. For example, if only 2-foot trays are provided, all mail would be placed in 2-foot trays. If only 1-foot trays are provided, the entire mailing would be placed in 1-foot trays. This may require working out individual mailing solutions locally. Mailers must use their own judgment when building pallets of trays containing both sizes of trays. The elimination of the proposal to require separate layers of trays on pallets for different mailings should help mailers to build stable pallets. An exception is that pieces at automation rates must not be combined with mail at nonautomation rates on 5-digit pallets. The standard to place destination delivery unit trays on the top of the pallet has also been eliminated. Accordingly, mailers may build pallets of trays based solely on the weight of the trays (heavier trays must be on the bottom) and the pallet destination. Since mailers will be required to use a combination of 1-foot and 2-foot trays for all letter mail, including presorted nonautomation mailings, the Postal Service does not agree that this standard will be a barrier to automation. e. Tray Sleeving and Strapping Six commenters responded to the Postal Service's proposal to require that all trays used to prepare letter-size mailings be both sleeved and strapped with limited exceptions for mail destined for the service area of the entry post office and an exception to strapping only for trays contained on 5-digit, 3-digit, and SCF pallets. Two commenters requested that the Postal Service eliminate this standard because it requires a private equipment purchase on the part of mailer's and an increase [[Page 10091]] in their processing burdens. These commenters pointed out that the Postal Service already has adequate capacity to strap all outgoing trays, and one suggested that the Postal Service use stretchwrapped pallets in its outgoing processing of mail to decrease its own need for strapped trays. Two commenters requested that the Postal Service delay implementation of this standard to allow mailers time to purchase and install strapping equipment, one suggesting at least a 6-month delay. Two commenters pointed out a discrepancy between the language in the comments section of page 66595, section p, proposed DMM M045.5.5 (which implied mail on any stretchwrapped pallet was exempt from strapping standards), and the lack of changes to P014.4.14c which requires all trayed mail submitted under value added refund procedures be both sleeved and strapped. The Postal Service will require sleeving and strapping of all trays of mail prepared under all reformed subclasses, with the exception that mail entered within the service area of an SCF which is for delivery within the SCF area may obtain a local exception to the tray strapping standard, and that strapping of individual trays placed on stretchwrapped 5-digit, 3-digit, and SCF pallets will not be required. All trays in all circumstances will be required to be sleeved. Mail transported without first being sleeved is susceptible to spillage and damage during transportation and handling. This is especially true for automation mail in which full trays will not contain banded packages. A strap around the tray is also necessary to maintain the integrity of the tray and its contents during transportation and handling. For example, because trays of mail sorted in a BMC move on belts and down chutes during mechanized distribution, sleeves that are not strapped to trays could slide off and the contents of the tray could spill. Trays transported by air are handled in many different ways and also need to be strapped to maintain their integrity. Because local mail is not subject to the same type or amount of transportation as other mail, an exception may be made for the strapping of this mail, however, it has been determined that sleeving will still be necessary. For palletized mailings, sleeving will be required for all trays, but strapping will be required only for trays placed on ADC, ASF, BMC, mixed ADC, and Mixed BMC pallets. These pallets must be broken down and the trays further transported before reaching the local SCF or plant and accordingly must be strapped to maintain their integrity during handling and transportation. The discrepancies in the DMM language contained in the proposed rule have been corrected in this final rule to reflect the above policy, which will apply to all mail including that prepared under value added refund provisions. The Postal Service will require sleeving and strapping effective July 1, 1996. A major element of the Postal Service's Classification Reform initiative is to remove costs from the postal processing system, thereby enabling rates to remain stable for longer periods of time. Accordingly, the Postal Service believes implementation of this standard at the time Classification Reform is appropriate. f. Elimination of 3-Digit Carrier Routes Trays. One commenter stated that the Postal Service may be seriously underestimating the number of 1-bundle trays that will be created by elimination of 3-digit trays for barcoded carrier route mail. This mailer indicated that he currently prepares a lot of 3-digit trays which each contain only a few carrier route bundles for different 5- digit areas. He indicated that almost every bundle currently in 3-digit carrier routes trays will be required to be prepared in a separate 1- bundle, 1-foot tray upon implementation of Classification Reform. He believes these trays will be a problem to both mailers and the Postal Service in terms of the increase in the number of trays needed to prepare a mailing, and the resultant increase in the amount of air being shipped in those trays which will impact drop shipment efforts. The Postal Service recognizes that elimination of 3-digit carrier routes trays will increase the total number of trays needed to prepare the carrier route portion of automation First-Class mailings and to prepare Enhanced Carrier Route mailings. However, preparation of carrier route mail in direct carrier route or 5-digit carrier routes trays will eliminate the breakdown and distribution of 3-digit carrier routes trays at the plant level. This means trays can be routed directly to the appropriate piece of automated equipment, or to the postal facility where the carriers are located, without costly and time consuming resorting of the mail in 3-digit trays. The use of 1-foot trays for those 5-digit areas having only a few or one carrier route package should eliminate a lot of the air being shipped both by mailers and the Postal Service. Mailers will need to make their own cost- benefit analyses concerning whether drop shipment will be beneficial to them. The Postal Service has increased its procurement of 1-foot trays in order to meet the anticipated demand under Classification Reform. g. Banding Material for Package Preparation Five commenters responded to the proposed standards that would prohibit use of string or plastic strapping for preparation of packages in less-than-full trays of automation mailings, and would require use of separator cards in lieu of any banding material in full 5-digit carrier routes trays within automation First-Class and automation Enhanced Carrier Route mailings. Five commenters were opposed to the prohibition of string or plastic banding on automation mail, and one other to the prohibition against plastic strapping only. One commenter indicted it would cost him $150,000 to replace tying machines, and that he can't use rubber bands because of carpal tunnel syndrome complaints from his employees. One commenter was concerned primarily because it is problematic to have several different standards for different mailings within the same mailing job, such as in some places it is required to use separator cards, in some instances they are prohibited, sometimes rubber bands are required, and sometimes string and plastic strapping is required. This commenter would like the standards to be consistent for all mailings since having different standards causes mailer operational problems in terms of supply inventories, training, processing, and quality checking. One commenter indicated that the rules are not clear and appear to be contradictory in different places in the proposed DMM language. The standards for preparing packages or group separations for First-Class, Regular Standard, Enhanced Carrier Route Standard, and Regular Periodicals are contained in DMM M020.3.0. The Postal Service has determined to continue to allow packages in automation related mailings (automation First-Class, automation Regular Standard, automation Enhanced Carrier Route Standard, and automation Regular Periodicals, as well as upgradable Presorted First-Class and upgradable nonautomation Regular Standard Mail), to be prepared using either rubber bands, elastic strapping, plastic strapping, or string. However, preparation using rubber bands or elastic strapping is optimal for efficient Postal Service handling of the aforementioned automation- related mailings because this material is quick and easy to remove and eliminates the [[Page 10092]] debris created by removal of string and plastic strapping. Accordingly, the Postal Service encourages mailers to prepare letter-size mailings using rubber bands or elastic strapping under Classification Reform and plans at some future point to institute this standard for automation and upgradable mailings. The Postal Service will work with mailers on the timing of making rubber bands a requirement. In certain locations the Postal Service may take 5-digit carrier routes trays and sort them using automated equipment to individual carrier routes for subsequent DPS sequencing on CSBCS equipment. Accordingly, the Postal Service is retaining the standard to prepare full 5-digit carrier routes trays within automation mailings with separator cards. However banding material must be used in all other instances where packaging is required, (less-than-full trays or any trays consisting entirely of postcard-size pieces within automation and upgradable mailings, and all packages prepared for presorted nonautomation letters and all presorted flats). h. Machinability (Automation-Compatible) Standards One commenter requested that the Postal Service relax its machinability standards (as they relate to automation mailings) to allow more mailers to prepare automation mail. The Postal Service cannot spontaneously relax machinability standards. The current standards are based on the type of mail that is capable of being processed on currently available Postal Service MLOCR and barcode sorting equipment. i. Standards for Upgradable Mail One commenter would like to see handwritten mail permitted to be prepared under the upgradable option for nonautomation Presorted First- Class and nonautomation Regular Standard Mail. The upgradable option for nonautomation mail is for mail that has a high likelihood of being read by current optical character readers (OCRs). The Postal Service does not at this time wish to extend the upgradable preparation option to mail that would require more costly RBCS processing. 4. Flat Mail a. Palletization Sortation Standards Three comments were received in regard to the new palletization make-up standards that: contained revised levels of pallet sortation, and added a standard that all mail presented on pallets be sorted to pallets to the finest extent possible. One commenter indicated support of the standard allowing 10% of the total pallets to be working pallets since it will eliminate most sacks and thereby streamline production lines and improve the quality of mailpieces. One commenter requested clarification as to whether automation Standard trayed letter mail would be required to be sorted to SCF and BMC pallets, and if so would they still be eligible for destination BMC/SCF discounts. One commenter stated the new preparation standards are a rate increase without a rate case due to the need for new software and more labor by mailers. If presented to the Postal Service on pallets, trayed automation Standard letter mail will be required to be sorted to SCF and BMC pallets (and ASF pallets if drop shipment rates are claimed at ASFs). Up to 10% of the mail on these pallets could be submitted on Mixed BMC pallets. Trayed mail on SCF pallets will be eligible for SCF discounts if entered at the SCF facility, and carrier route, 5-digit carrier routes, 5-digit, 3-digit and ADC or AADC trays for destinations within the service area of the BMC or ASF will be eligible for BMC discounts if entered at the BMC or ASF. Determination of BMC rate eligibility for all mail in AADC trays and for all mail in ADC trays, sacks, or packages placed on pallets, will be made based upon whether the ADC or AADC 3-digit ZIP Code that appears on the top line of the tray or sack label in DMM L004 (or the ZIP Code assigned to the ADC in DMM L004 for the package) is within the BMC service area. As pointed out in previous notices, although there is a standard to prepare letter-size mail in trays, there is no standard to place those trays on pallets. However, if mailers choose to palletize trays of letter-size mail, the trays must be palletized according to the sortation standards set forth in DMM M040. The standard to sort all mail placed on pallets rather than submitting unsorted mail on working pallets is necessary for efficient Postal Service operations. Receiving unsorted mail on a pallet means that the pallet must be staged somewhere in the plant where it must be broken down, sorted to other containers, and dispatched. When large quantities of unsorted pallets are received at a plant, the facility can run out of space to place the pallets that are waiting to be broken down and sorted. In most instances it is more efficient to unload the contents of bedloaded trucks at a BMC directly into the sortation stream than it is to move a working pallet to a staging area, break it down, and then direct it to a sorting operation. The purpose of palletization of mail is to allow the Postal Service to cross-dock entire pallet loads of mail to particular destinations eliminating the need to break down and sort all the pallets at the entry postal facility. Accordingly the Postal Service is retaining the standard that mail presented on pallets must be sorted to required destinations with a minor portion (no more than 10%) received on working pallets. b. Mail Meeting the Standards for Both Letters and Automation- Compatible Flats Eight commenters had concerns regarding the preparation of mailpieces that meet the size standards for a letter size piece as well as the size standards for an automation flat-size piece. Six commenters stated that mailers should have the option of preparing their mail in a manner associated with the rates they are paying. That is, if a mailer chooses to pay rates associated with flat- size mail, the mailer should be able to prepare this mail as a flat in sacks, or as packages on pallets; and conversely, if a mailer chooses to pay letter rates the mail must prepared in trays or preferably in trays on pallets. The Postal Service disagrees with this position. The Postal Service processes mail in different mailstreams based on the mail processing category of the mailpiece, i.e., letter, flat, automation flat, machinable parcel, irregular parcel or outside parcel. The mail processing categories are defined by the size dimensions or size and weight and other physical characteristics of the mailpieces as defined in DMM C050. Therefore, even if a letter pays a flat rate it would be processed by the Postal Service as a letter. The Postal Service therefore wants letter-size mail prepared in trays and the trays labeled to show they contain letter-size pieces so they can be directed to the appropriate letter processing stream. Letter and nonletter rates are developed on the basis that mail meeting the letter-size characteristics is processed as letters and mail meeting the flat-size or parcel characteristics is processed as flats or parcels as appropriate. Accordingly, the DMM standards reflected in this notice will require mail meeting the letter-size dimensions in DMM C050 to be prepared as a letter. The one anomaly in this rule is the automation flats category. Flat sorting machines can handle some smaller pieces that overlap into the letter-size processing category, and in the interest of encouraging preparation of barcoded flat mail, the Postal Service allowed this smaller mail to qualify for the barcoded flat rates. Accordingly the Postal Service will [[Page 10093]] continue to allow letter-size mail that also meets the size dimensions for an automation flat to be prepared according to the preparation standards for a flat, but only when such pieces are presented as part of an automation flats mailing. In the proposed rule, the Postal Service proposed an accommodation for mailers of pieces that meet both the letter and Automation flats dimensions if they prepare that mail as packages on pallets. Under this accommodation, the Postal Service proposed that when a portion of the mailing job consisted of such pieces and was prepared as an automation flats mailing of packages on pallets, the Postal Service would allow the entire mailing job, which could include Enhanced Carrier Route and nonautomation Regular Standard mail, to be prepared as packages on pallets if no more than 10% of the total number of pieces in the mailing job were claimed at nonautomation Regular rates and provided the pieces claimed at the nonautomation Regular rates were paid at the non-letter rates. This was in recognition that mailers who prepare mail in packages on pallets would have more efficient mail preparation operations if allowed to prepare an entire mailing job in the same manner. Seven commenters disagreed with the 10 percent limit on the Regular mail (now nonautomation Regular Standard Mail). Six of these commenters reiterated the reason above, that if they are paying flats rates they should be able to prepare their mail as a flat without limit. One commenter indicated he didn't understand the rationale, especially if pieces over 3 ounces are not run on automated letter sorting equipment. One commenter stated that the 10% limit should be increased to 15% to accommodate the mail that previously could have been prepared as part of a barcoded flat mailing under the 85/15 barcoding rules. One commenter stated that if there was no limit on carrier route mail there should be no limit on the amount of Regular mail prepared in the mailing job. This commenter further indicated that there appears to be insufficient justification in terms of Postal Service benefits to offset complications in mailer operations. At the time the Postal Service proposed this accommodation to mailers preparing packages on pallets, it was working under the terms of its proposal to the PRC in which the Enhanced Carrier Route subclass did not contain separate rates for letter and flat mail. The Postal Service determined that it would overlook any additional preparation costs it incurred by not having the letter-size carrier route mail prepared in trays since there was no separate letter rate. However, the PRCs recommended decision approved by the Governors includes separate letter and flat rates for Enhanced Carrier Route mail. This change in the rate structure, together with fairness issues related to giving an exception for palletized mail but not for sacked mail, has caused the Postal Service to rethink its proposed accommodation for palletized mail. As reiterated in the beginning of this section and elsewhere in the comments concerning letters, the Postal Service is handling all letter mail in trays in its internal operations and for the sake of processing category recognition and efficiency in handling, wants all letter mail presented for entry by mailers to be prepared in letter trays. The Postal Service believes that preparation of letter-size Enhanced Carrier Route mail as well as nonautomation Regular letter mail in trays, and preferably in trays on pallets, is the most efficient preparation for its operations. The Postal Service will therefore not offer the exception set forth in the proposed rule, for palletized mailing jobs that contain a portion prepared as an automation flats mailing indefinitely. That exception will be terminated on January 1, 1997. At that time the Postal Service will provide that, for mailing jobs consisting of mailpieces meeting the definitions of both a letter and an automation flat, only the portion submitted as an automation Regular Standard flats mailing may be prepared as a flat. Letter-size pieces entered as Enhanced Carrier route and nonautomation Regular mailings must be prepared according to their letter-size classification as trayed mailings, and preferably as trays on pallets. c. Physically Full Flats Trays One comment was received that supported the Postal Services proposed definition of a full flats tray as one that is physically full. This is further defined in DMM M011.1.3 as a minimum of a single stack of mail lying flat on the bottom of the tray and filling the tray to the bottom of the handholds. When there is additional mail for the same tray destination and additional pieces can be stacked in the tray, it must be further filled to capacity. 5. Periodicals Two mailers submitted comments concerning the proposed Publications Service subclass standard. As the Publications Service subclass was not recommended by the PRC, these comments will not be addressed. 6. Addressing a. Move Updates Eighteen comments were received concerning the proposal to require automation First-Class and Presorted First-Class mailers to update the addresses of their customers who have moved within 6 months of the mailing date. One commenter supported the proposal. One commenter stated there was no support for the proposal within the mailing industry. The Postal Service believes the methods currently available to provide updated address information to customers offer a wide range of options that can meet the needs of mailers at reasonable cost. For example: Use of the endorsement ``Address Correction Requested'' means the mailpiece will be returned to the sender with the new address information affixed. This service is provided at No Additional Charge to the mailing customer. The mailer may then update the address information, use a new envelope and mail the piece to the new address. Use of the endorsement ``Forwarding and Address Correction Requested'' means the mailpiece is forwarded to the new location and the Postal Service sends a hard copy notice to the mailer with the new address information. This notice can be used to update the mailers address and costs $0.50 for each notice. Use of Address Change Service provides the mailer with an electronic notice of new address information instead of a hard copy notice. Electronic notices cost $0.20 and can be obtained on a variety of electronic media. Mailers may determine the frequency with which they use the ACS endorsement and participant code so long as the mailer can certify that each address in a First-Class mailing has been updated for customer moves within 6 months prior to the date of the mailing. Use of National Change of Address (NCOA) processing service can update mailers' address lists with corrected address information prior to a mailing. Mailers determine how frequently they process their address lists. Use of these move update methods on mailings in other classes would meet the standard for the addresses in the mailing list and qualify them for access to automation First-Class or Presorted First-Class rates. Any new addresses added to the mailing list would be ``move updated'' during the next scheduled processing of the addresses. One commenter stated that they are unable to use the current methods and two said they were too costly. The Postal Service incurs costs to rehandle [[Page 10094]] undeliverable-as-addressed mail and also incurs service delays when mail must be redirected to a new location. It is in the best interests of the Postal Service and mailers to improve deliverability and reduce costs. The options cited above provide flexibility to mailers in meeting the proposed standard, including the ``no fee'' Address Correction Requested endorsement. Three commenters asked that implementation of the standard be postponed to allow time to adjust and obtain move updates. The Postal Service believes this proposal has merit. The Postal Service recognizes that many mailers will need to revise their addressing systems to accommodate move updating. Some will have to learn to use electronic update systems. Others will need to use up stocks of envelopes that do not bear an endorsement. Some mailers may need to experiment with several options, such as the impact of the two different endorsements, to determine which makes the best business sense for their operations. The Postal Service also wants to avoid creating a semi-annual ``crunch'' of demand for NCOA and ACS services that might occur if Move Update was implemented at the same time as the rate and classification changes resulting from Classification Reform. Thus, the Postal Service will begin the move update address qualification process at the time of Classification Reform implementation, but will not condition the eligibility of automation First-Class and Presorted First-Class mailings on complete move update qualification until January 1, 1997. This ``ramp up'' compliance period should give all concerned customers more than enough time to decide on the update method to use, obtain NCOA matching services if appropriate, implement internal system changes to accept electronic move update information and work with their internal customers or presort customers to obtain full compliance. Several commenters expressed concern about the availability of service from NCOA licensees. The Postal Service believes the existing group of licensees has the capacity to continue to provide their services to mailers within the terms of the license (process and return address files within 7 business days of receipt.) If Postal Service determines that a legitimate need exists, it will increase the number of licensees. Several commenters also asked that implementation be postponed indefinitely until other methods to do move updating, such as the Multiline Forwarding System, have been approved. The Postal Service does not believe that such an open-ended delay is warranted, given the wide range of current options. Excellent progress has been made towards the implementation of the Multiline Forwarding System, now known as FASTFORWARDsm. The Postal Service expects the implementation process to continue on schedule with certification of the operating systems to occur during the summer of 1996. Mailers who choose this option will be able to meet the Move Update requirement well before the end of the ``ramp up'' period. The Postal Service plans to continue to work with MLOCR users through the Mailers Technical Advisory Committee and the Multiline Users Group on the development of the FASTFORWARDsm. As marketplace demands create a need, the Postal Service will also consider expanding the range of options in the existing services. For example, this might include adding additional notification options in Address Change Service beyond the current ones available. Three commenters inquired if their in house address correction centers, to which they have devoted significant resources, might be certified as meeting the standard. For those mailers who believe their lists are up to date, the use of the ``Address Correction Requested'' endorsement should have little or no impact on their business practices because they are mailing to the most current address for their customer. The simple and straightforward use of the endorsement would meet the proposed standard with no difficulty, need only be applied to all addresses on the list at least once within the 6 months prior to the date of mailing and expenditures would be limited to the costs associated with preprinting the endorsement on mailing envelopes. The current endorsement options would be an effective approach to meeting the proposed standard for lists which are well maintained by special mailer move correction processes. The Postal Service will discuss additional alternatives with members of the Mailers Technical Advisory Committee and other industry representatives. Three other commenters inquired whether a mailer was required to use the information provided from postal address correction processes and apply it immediately to their address lists. They asked if the notification could serve as a trigger to the company to initiate an inquiry with the customer about correcting address information. Four commenters indicated that various state and federal government agencies feel they are prohibited from using Postal Service provided corrections. In most cases, mailers are expected to update their mailing addresses promptly. However the Postal Service recognizes that in some industries there may be legally mandated limits on the address that can be used in certain customer communications. For example, one commenter noted that in a number of states, notices of shareholder meetings must be sent to the address ``in the corporation records.'' Given the concerns expressed by these mailers, the Postal Service has decided that in circumstances where clearly demonstrated legal constraints limit a mailer from using address changes provided by the Postal Service, an individually approved alternative process will be acceptable to meet the move update standard. Alternative process approval would be granted on a case by case basis and the legal limitation would need to be clearly identified. In this process, mailers would receive address change information from the Postal Service in any of the currently prescribed manners. This would be followed by a prompt mailer initiated direct mail contact with the customer requesting a signed verification of the address change. For example, the mailer could provide a preprinted barcoded Business Reply Card which the customer could sign and return. Address information could then be updated in the mailer's records prior to the next mailing cycle. b. Carrier Route Sequencing Standards 16 comments were received on the proposed standards to sequence basic Enhanced Carrier Route Standard mail and Publications Service Periodicals carrier route mail. The proposal required update of sequence information to be done through any of the established sequencing methods or, for basic carrier route rates, use of the newly developed Line-of-Travel (LOT) product. Two commenters said they would be unable to sequence their mailings. Two others asked that the High Density rate category in Enhanced Carrier Route Standard Mail be allowed to use line of travel sequence rather than exact walk sequence. The Domestic Mail Classification Schedule which was recommended by the PRC and approved by the Governors specifies that High Density Enhanced Carrier Route Standard and High Density Regular Periodicals mailings must be prepared in walk sequence, and this requirement is incorporated in the DMM final rules. The approved DMCS provides that basic nonautomation Enhanced Carrier Route mail and basic automation Enhanced Carrier Route [[Page 10095]] mail be sequenced as prescribed by the Postal Service. The DMM language in this final rule prescribes that nonautomation basic Enhanced Carrier Route must be sequenced using either LOT or walk sequence. Sequencing will not be required for automation Enhanced Carrier Route letters. Furthermore, the approved DMCS does not specify sequencing for basic carrier route Regular Periodicals. Accordingly, the Postal Service has determined that sequencing will not be required for those rates in the final DMM standards. Four commenters asked that, where sequencing is required, the Postal Service accept either ascending or descending order for sequencing. Commenters added that the turns in production runs may vary and it would be difficult to accurately predict which direction may result. One also speculated that the efficiencies gained would be the same going from end to beginning of the route as they would from beginning to end of the route. The Postal Service will identify mailers whose mailings are frequently in reverse order and work with them to ensure mailings are presented in the proper order. Eight comments were received concerning the availability of the LOT product. LOT has been available for subscription since July 1995. Implementation of the sequencing standards will occur with the implementation date for Classification Reform. Mailers who are interested in obtaining the Line-of-Travel product should contact the National Customer Support Center at 1-800-238-3150 for subscription information. Continuing updates of LOT sequence information will occur with the same frequency that carrier route codes are updated. c. Five Digit ZIP Code Verification The Postal Service believes that accurate ZIP Codes are vital to ensuring consistent, timely delivery service. Moreover, the use of a correct ZIP Code is currently a standard for all presorted mail. Those who are unwilling to verify that the ZIP Codes they apply to mailpieces will not be allowed access to discounted postage rates that are based on ZIP Code presortation. One commenter asked if the results of CASS processing would verify ZIP Code accuracy. If the mailer uses certified software and updates the ZIP Code information using the software, this would be considered a acceptable verification method. One commenter said the standard should not be implemented because the Postal Service has received the revenue and can just discard Standard rate mail if it is undeliverable. The Postal Service disagrees. The Postal Service would still incur all the transportation and processing costs in addition to waste disposal fees. Two commenters asked for a longer implementation period. Mailers will be expected to identify the method used to verify the ZIP Code information and sign a certification of verification attached to the postage statement. The Postal Service has decided to allow mailers 3 months from the date of Classification Reform implementation to verify the accuracy of their 5-digit ZIP Code information. The Postal Service believes this October 1, 1996, date provides adequate time in which to verify ZIP Code information. One commenter asked who would be responsible for ensuring ZIP Code accuracy. The person in control of the address would be responsible, however, others may offer services which would provide the verification. For example, an MLOCR could be used to apply a barcode representing the correct ZIP Code or a service bureau may offer a verification service as a part of their service line. d. Carrier Route Updates Five comments were received about the proposal to update carrier route information within 90 days of the date of mailing. Two comments suggested that the coding date should be 120 days, not 90 and one suggested 180 days. Two commenters questioned if the important date was the date of coding or the date of the AIS product being used. It appears that some commenters misinterpreted the chart which was included in the last Federal Register concerning this issue. The chart indicated all of the possibilities when data products would be valid for use, not how long the codes assigned by using the product would be valid. Carrier route assignments are more frequently changed to accommodate the operational needs of the Postal Service to balance a carrier's workload. Thus, the Postal Service believes the 90 day coding standard is reasonable. However, it is not the Postal Service's intent to require mailers to update their carrier route codes if no more current source of information is available. The Postal Service believes the most current data available should be used in assigning carrier route codes. If new data files are not available, mailers should continue to use the existing route assignments until such time as new AIS products have been released by the Postal Service. e. Address Information System Product Cycle Changes Eight comments were received concerning the proposed increase in the frequency of required updates to AIS products. One commenter suggested the Postal Service publish a separate Federal Register notice to ensure that all affected parties are aware of the proposed changes. Three stated that it is difficult to implement the ZIP+4 product releases within the required 45 day window and that to add CRIS within the same window would be impossible. Another commenter added that they have experienced difficulty with software vendors fulfilling product updates consistently. Two other comments expressed concern about the possible cost increases. To ensure a smooth transition to the bimonthly product cycle, the Postal Service will begin bimonthly product fulfillment with the October 15 product release. Thereafter products will be released on December 15, February 15, April 15, June 15, and August 15. The Postal Service believes it has given adequate notice of these proposed changes through the various notices and mailer meetings that have been a part of the Classification Reform implementation effort. It also believes that the benefits which will accrue from more timely updates justify the additional effort that mailers will need to make to incorporate these product releases. However, as part of its customer information commitment, the Postal Service will continue to work with the vendor industry to resolve any remaining concerns about product production and fulfillment. C. Examples of Standardized Documentation The following pages show examples of documentation that would be produced under the requirements for standardized documentation described below. BILLING CODE 7710-12-P [[Page 10096]] [GRAPHIC] [TIFF OMITTED] TR12MR96.000 [[Page 10097]] [GRAPHIC] [TIFF OMITTED] TR12MR96.001 [[Page 10098]] [GRAPHIC] [TIFF OMITTED] TR12MR96.002 [[Page 10099]] [GRAPHIC] [TIFF OMITTED] TR12MR96.003 [[Page 10100]] [GRAPHIC] [TIFF OMITTED] TR12MR96.004 [[Page 10101]] [GRAPHIC] [TIFF OMITTED] TR12MR96.005 [[Page 10102]] [GRAPHIC] [TIFF OMITTED] TR12MR96.006 [[Page 10103]] [GRAPHIC] [TIFF OMITTED] TR12MR96.007 [[Page 10104]] [GRAPHIC] [TIFF OMITTED] TR12MR96.008 [[Page 10105]] [GRAPHIC] [TIFF OMITTED] TR12MR96.009 [[Page 10106]] [GRAPHIC] [TIFF OMITTED] TR12MR96.010 [[Page 10107]] [GRAPHIC] [TIFF OMITTED] TR12MR96.011 [[Page 10108]] [GRAPHIC] [TIFF OMITTED] TR12MR96.012 [[Page 10109]] [GRAPHIC] [TIFF OMITTED] TR12MR96.013 [[Page 10110]] [GRAPHIC] [TIFF OMITTED] TR12MR96.014 [[Page 10111]] [GRAPHIC] [TIFF OMITTED] TR12MR96.015 [[Page 10112]] [GRAPHIC] [TIFF OMITTED] TR12MR96.016 [[Page 10113]] [GRAPHIC] [TIFF OMITTED] TR12MR96.017 BILLING CODE 7710-12-C [[Page 10114]] D. Summary of DMM Changes The DMM revisions shown below are the revisions published in the December 22, 1995, proposed rule, as modified to reflect inadvertent errors, comment responses, and the recommendations of the PRC as approved by the Governors. These revisions use as their base the text of DMM Issue 49 (September 1, 1995) as amended thereafter by notices published in the Federal Register or Postal Bulletin. Revisions are described by module of the DMM. This list is intended as an overview only, and should not be viewed as definitive. A (Addressing). Revisions in nomenclature are made throughout. A930 is revised to update the list of available AIS products, and A950 is revised to show the more frequent product cycle for address coding products. C (Characteristics and Content). Revisions in nomenclature are made throughout. C100 is amended to reflect the proposed new size limits for pieces eligible for card rates. C300 and C400 are revised and merged into new C600 to recognize the merger of third- and fourth-class into Standard Mail. Terms used in various standards are defined in new sections added to C810, C820, and C840. A new section is added to C810 to describe the standards for enclosed reply pieces. D (Deposit, Collection, and Delivery). Revisions in nomenclature are made throughout. D300 and D400 are revised and merged into new D600 to recognize the merger of third- and fourth-class into Standard Mail. E (Eligibility). Revisions in nomenclature are made throughout. E100 is amended to consolidate the standards for First-Class Mail (excluding Priority Mail) into a unit on Presorted (nonautomation) mail and automation rate mail (in E130 and E140, respectively). E200 is renamed to recognize the renaming of second-class mail as Periodicals. E210, E250, and E270 are revised minimally. E230 and E240 are reorganized to present, respectively, the presort (nonautomation) rate and automation rate eligibility standards for Regular Periodicals, and to separate the standards retained for Preferred Periodicals in E239 and E249. E300 and E400 are revised and merged into new E600 to recognize the merger of third- and fourth-class into Standard Mail. E610 presents basic standards for all Standard Mail in E611, for former third-class mail, now called Standard Mail (A) in E612, and for former fourth-class mail, now called Standard Mail (B) in E613. E620 contains standards for single-piece rates: single-piece Standard Mail (A) (E621), parcel post (E622), bound printed matter (E623), Special Standard Mail (currently special fourth-class mail) (E624), and Library Mail (E625). E630 presents standards for bulk rates: Regular Basic and 3/5 (E631); Enhanced Carrier Route Basic, High Density, and Saturation (E632); basic and carrier route bulk bound printed matter (E633); 5- Digit and BMC Presorted Special Standard Mail (E634); and, consolidated but without substantive change from current standards, for all existing Nonprofit rates (E639). E640 contains standards for automation rates: automation Carrier Route, 5-Digit, 3-Digit, 3/5 (for flats), and Basic (E641); and, also consolidated but essentially unchanged from current standards, for all existing Nonprofit rates (E649). E650 and E670 are revised minimally. Although the PRC's recommendation, as approved by the Governors, includes automation rate carrier route letter mail in the Enhanced Carrier Route subclass, for administrative purposes and for organizational simplicity in its rules, the Postal Service is presenting the standards for that mail as part of the broader standards in E641 (and, below, in M810) for automation rate Standard Mail. F (Forwarding and Related Services). Revisions are confined to changes in nomenclature and minor editorial changes. G (General Information) and I (Index Information). No revisions are made except to update address information, indices, and the Summary of Changes. L (Labeling Lists). Revisions in nomenclature are made throughout. L002 is reorganized to present information for all 3-digit ZIP Code areas to show where each 3-digit prefix is assigned for 3-digit, 3- digit/scheme, and SCF distribution. L003 is added to list the 3-digit ZIP Code areas that are combined for scheme sortation under specific new preparation standards. To reflect the wider use of the ADC network, current L101 is relocated and renumbered as L004, with distinctions shown where appropriate for the respective ADC destinations to which First-Class, Periodicals, or Standard Mail is to be directed. For irregular Standard Mail (formerly third- and fourth-class irregular parcels), L702 and L707 are renumbered as L603 and L604, respectively. To reflect other revisions to distribution networks that have eliminated SDC, state, and mixed states preparation, L201-203, L701, L703, L704, and L706 are deleted. M (Mail Preparation and Sortation). Revisions in nomenclature are made throughout. Current M011 is renumbered as M012, and new M011 is added to consolidate basic definitions of terms used throughout other mail preparation instructions and to provide basic information about the Presort Accuracy Validation and Evaluation (PAVE) program. M012 and M013 are also updated to include revised formats for optional endorsement lines and carrier route information lines and to allow the inclusion of rate markings in both. M020 is amended to provide more consistent package preparation standards for other-than-Nonprofit mail. M033 is revised to add consistent standards for tray preparation for letter- and flat-size mail and to offer enhanced information about sack and tray preparation. M040 is amended to incorporate revisions to pallet preparation standards set forth in a final rule published on December 21, 1995 (60 FR 66142-66149). M041 is revised to present general standards for pallets and their use. M045 reorganizes the standards in current M042, M043, and M044 as amended by the cited rulemaking, to present the revised and consolidated standards for palletized mail preparation. M050 is revised to include information about line-of-travel sequencing. M100 is reorganized, with the standards for Presorted First-Class located in new M130. Preparation standards for nonautomation Regular Periodicals are in new M210; existing standards for nonautomation Preferred Rate Periodicals are consolidated in M290. M300 and M400 are revised and merged into new M600 to recognize the merger of third- and fourth-class into Standard Mail. Regular Standard Mail (A) preparation is detailed in M610, Enhanced Carrier Route standards are in M620, and existing standards for Standard Mail (B) (current fourth-class mail) and for Nonprofit Standard Mail are contained in M630 and M690, respectively. Revised preparation standards for automation rate First-Class, Regular Periodicals, and Standard Mail are contained in M810 (letter-size pieces) and M820 (flat-size pieces). M890 brings forward existing standards for Preferred Periodicals and Nonprofit Standard Mail. Throughout, the optional city preparation level has been eliminated (except for Preferred Periodicals) and the SDC, state, and mixed states preparation levels have been replaced with ADC and mixed ADC levels. P (Postage and Payment Methods). Revisions in nomenclature are made throughout. P012 is amended to improve the definition of ``standardized'' documentation and to [[Page 10115]] include information about PAVE as a source for standardized postage documentation. P300 and P400 are revised and merged into new P600 to recognize the merger of third- and fourth-class into Standard Mail. P100 and P600 are revised to provide information about single-piece rate mail presented at the same time as a mailing at an automated rate. P710 is amended to contain new abbreviations for use with manifest mailings. R (Rates and Fees). Revisions in nomenclature are made throughout. R000 contains updated stamp and stamped stationery information. R100 and R200 are amended to reflect revised rates and rate structures. R300 and R400 are revised and merged into new R600 to recognize the merger of third- and fourth-class into Standard Mail and to show revised rates and rate structures. S (Special Services). Revisions in nomenclature are made throughout with no other substantive changes. 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 those revisions to the DMM set forth below that have been specifically identified in the discussion as new proposals available for comment: 1. New standards applied to Periodicals that are similar to those adopted in this final rule for First-Class and Standard Mail: a. All pieces in an automation rate mailing must be delivery point barcoded. b. Presort and other preparation standards, including a 150-piece minimum for preparing trays of automation rate letter-size mail. c. 5-digit ZIP Codes used in the addresses on nonautomation rate Periodicals must be verified annually for accuracy; mailers must certify this at the time of mailing. d. Letter-size reply envelopes and cards enclosed in automation rate pieces must meet specific standards for automation-compatibility; mailers must certify this at the time of mailing. 2. Standards for documentation produced by Presort Accuracy Validation and Evaluation (PAVE) certified software and for standardized documentation produced otherwise. These standards are presented in P012, below; examples of documentation are also presented as part of this notice. 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, 3001- 3011, 3201-3219, 3403-3406, 3621, 3626, 5001. 2. Revise the following sections of the Domestic Mail Manual as noted below: * * * * * A Addressing A000 Basic Addressing A010 General Information [In 1.2d, replace ``second-class mail,'' and ``bulk third-class mail; fourth-class mail'' with ``Periodicals,'' and ``bulk rate Standard Mail (A); Standard Mail (B),'' respectively; remove the last sentence in 1.3; in 1.6, replace ``First-, third-, and fourth-class mail'' with ``First-Class and Standard Mail''; references ``E300, E400'' with ``E600''; and ``second-class mail'' with ``Periodicals''; in 4.3f, replace ``Second-class mail'' with ``Periodicals''; in 4.3g, replace ``Fourth-class mail'' with ``Standard Mail (B)''; in 7.0 (heading), replace ``Second-Class Mail'' with ``Periodicals''; in 7.1, replace ``First-, third-, and fourth-class'' with ``First-Class and Standard Mail''; in 7.2, replace ``second-class mail'' with ``Periodicals'' and ``2C'' with ``PER.''] A040 Alternative Addressing Formats [In 1.7, 2.2, 3.1, and 3.4, replace ``second-class'' with ``Periodicals.''] A060 Detached Address Labels [In 1.2 (heading and text), replace ``[S]econd- or [T]hird-[C]lass'' with ``Periodicals or Standard Mail (A)''; in 1.3 (heading and text), replace ``[T]hird-[C]lass'' with ``Standard Mail (A)''; in 1.4 (heading), remove ``Fourth-Class''; in 5.2a, replace ``Second-class'' with ``Periodicals''; in 3.8 (heading and text), replace ``[M]ailing [S]tatement'' with ``[P]ostage [S]tatement''; in 5.2b, replace ``[T]hird-class'' with ``Standard Mail (A)'' and remove ``fourth- class''; in 5.3, replace ``third- or fourth-class'' with ``Standard Mail.''] * * * * * A900 Customer Support Services * * * * * A930 Other Services * * * * * 1.0 Delivery Statistics File [Revise the fifth sentence as follows:] * * * The information is updated monthly through transaction files and can be ordered either with a single base file in the initial shipment or with a base file provided quarterly (bimonthly effective October 15, 1996). * * * 2.0 AIS Products Customers may use USPS Address Information System (AIS) products to obtain correct 5-digit ZIP Codes for the addresses on their mailing lists. These products generally are more economical than mailing list services. Customers with computerized address lists may obtain the City/State file, Five-Digit ZIP Code file, Line-of-Travel (LOT) information, Z4CHANGE file, ZIP Move file, Carrier Route Information System (CRIS), and ZIP+4 tapes. Customers may also use USPS directories and microfiche products to find correct 5-digit ZIP Codes for single and multi-ZIP Coded offices. Information about ordering and using these products is available by calling 1-800-238-3150. * * * * * [In 3.1a, 4.2, 4.3, 4.4, and 4.6, replace ``Quarterly'' and ``quarterly'' with ``Quarterly (Bimonthly effective October 15, 1996)'' and ``quarterly (bimonthly effective October 15, 1996),'' respectively.] * * * * * [Revise 5.0 as follows:] 5.0 Delivery Statistics In post offices with rural delivery, highway contract box delivery, and post office box delivery, postmasters must provide, at no charge, the following information for their respective offices: a. Number of post office boxes rented. b. Route numbers, number of boxes, and number of families on each rural and highway contract box delivery route (including seasonal data, if applicable). c. Number of families served or number of business places served by rural or highway contract box delivery routes within the total delivery area. A950 Coding Accuracy Support System (CASS) * * * * * 3.0 Date of Address Matching and Coding 3.1 Updating Standards Unless Z4CHANGE is used, all automation and carrier route mailings bearing addresses coded by any AIS product must be coded with current CASS-certified software and the current USPS database. Coding must be performed within 90 days of the mailing date for all carrier route mailings; within 6 months for automation rate First-Class, Regular Periodicals, and Standard Mail; and within 1 year for ZIP+4 and Barcoded rate Preferred Periodicals and Nonprofit Standard [[Page 10116]] Mail. All AIS products may be used immediately upon release. New product releases must be included in address matching systems no later than 45 days after the release date. The overlap in dates for product use allows mailers adequate time to install the new data files and test their systems. Mailers are expected to update their systems with the latest data files as soon as practical and need not wait until the ``last permissible use'' date to include the new information in their address matching systems. Effective with the October 15, 1996, database product release, the ``current USPS database'' product cycle is defined by the following matrix. ------------------------------------------------------------------------ File release Required use Last permissible ------------------------------------------------------ use ------------------ Use of file released on . . . Must begin no And must end no later than . . . later than . . . ------------------------------------------------------------------------ Feb. 15.......................... Apr. 1............ May 31. Apr. 15.......................... June 1............ July 31. June 15.......................... Aug. 1............ Sept. 30. Aug. 15.......................... Oct. 1............ Nov. 30. Oct. 15.......................... Dec. 1............ Jan. 31. Dec. 15.......................... Feb. 1............ Mar. 31. ------------------------------------------------------------------------ * * * * * 5.0 Documentation 5.1 Requirement Unless excepted by standard, each mailing submitted at an automation rate, at a carrier route Periodicals rate, or at an Enhanced Carrier Route Standard Mail rate, must be accompanied by documentation as described below. * * * * * 5.4 Providing Required Data * * * * * b. Name of the list processor using the CASS-certified software to match and code the address list, the date the address list was processed, the date of the USPS database used to code the address list, the address list name or identification number, the total number of address records on the list submitted for coding, the total number of address records successfully coded to the appropriate depth of code, and the percentage of total addresses submitted for coding that were successfully coded. * * * * * 6.0 Obtaining CASS Certification 6.1 Testing Arrangements [Replace ``ZIP+4 or delivery point'' with ``carrier route, ZIP+4, or delivery point.''] * * * * * C Characteristics and Content C000 General Information C010 General Mailability Standards [In 1.1 and 3.8, replace ``third-class'' with ``Standard Mail (A)''; in 1.7, replace ``C300'' and ``third-class mail'' with ``C600'' and ``Standard Mail (A),'' respectively; in 6.0, replace the reference ``G010'' with ``G020''; in 7.8 (heading), replace ``Scope'' with ``High-Density''; in 9.3, replace the reference ``I042'' with ``G042''; no other change in text.] * * * * * C020 Restricted or Nonmailable Articles and Substances [In 4.1, remove ``Title.''] [Revise the heading of C021 as follows:] C021 Articles and Substances Generally * * * * * C023 Hazardous Matter [In 10.7, replace ``40 CFR 172, Identification Number Cross Reference Index to Proper Shipping Names,'' with ``40 CFR 172''; in 11.2, replace ``Except under 10.10, parcels'' with ``Parcels''; in 11.6, replace ``mailing statement'' with ``postage statement''; no other change in text.] * * * * * C024 Other Restricted or Nonmailable Matter [In 12.1, replace ``First-, third-, or fourth-class'' with ``First- Class or Standard Mail''; no other change in text.] * * * * * C050 Mail Processing Categories 1.0 Basic Information [Remove current 1.1 and 1.2 and replace with new 1.0 as follows:] All mail is assigned to one of the mail processing categories listed below, based on the physical dimensions of the mailpiece, regardless of the placement (orientation) of the delivery address on the mailpiece. Unless permitted by standard, any mailing at other than the single-piece First-Class or Standard Mail rates may not contain pieces from more than one processing category. * * * * * C100 First-Class Mail 1.0 Dimensions [In 1.2, remove the reference ``(see C400).''] * * * * * 2.0 Cards Claimed at Card Rates 2.1 Postcard Dimensions Each card (i.e., each postal card or postcard or each half of a double postal card or postcard) claimed at a card rate must be: a. Rectangular. b. Not less than 3\1/2\ inches high, 5 inches long, or 0.007 inch thick. c. Not larger than 4\1/4\ inches high, 6 inches long, or 0.016 inch thick. * * * * * 2.8 Special Rules for Cards Cards not mailed as Presorted First-Class Mail but with the characteristics noted in 2.6 or 2.7 must: a. Be prepared in mailings of not less than 200 cards of identical size and weight. b. Have an address that includes the correct ZIP Code or ZIP+4 code. c. Have postage paid with permit imprints, meter stamps, or precanceled stamps. d. Be sorted to the finest extent possible and trayed as required for Regular Basic and 3/5 Standard Mail. * * * * * [Remove current 2.11 and renumber current 2.12 as 2.11; renumber current 3.0 as 4.0 and add new 3.0 as follows:] 3.0 Enclosures Enclosures in double cards are prohibited. Envelopes and cards enclosed in automation rate First-Class Mail are subject to the corresponding standards in C810. 4.0 Nonstandard Mail [Replace ``A piece of First-Class Mail weighing 1 ounce or less'' with ``Single-piece rate and Presorted rate First-Class Mail weighing 1 ounce or less, and not claimed at a card rate,''; no other change.] * * * * * [Revise the heading of C200 as follows:] C200 Periodicals [In 1.1, 1.2, 1.3, 1.4, 1.4a, 1.4b, 1.4c, 1.5a, 1.6, 1.9, 1.10a, 1.10c, 2.1, 2.2, 2.3, 2.4, 2.5, 3.3, 3.7, 4.2, and 4.4, replace ``[S]econd- [C]lass'' with ``Periodicals''; in 1.3, 1.3b, 1.3c, 1.3d, and 1.10c, replace ``First- or [any] third-class'' with ``First-Class or [any] Standard Mail (A)''; in 1.3a, 1.3d, 1.8b, and 1.10c, replace ``[T]hird- [C]lass [Mail]'' with ``Standard Mail (A)''; in 1.4d, replace ``mailing statement'' with ``postage statement''; in 2.2c, replace ``First-, third-, or fourth-class'' with ``First-Class or Standard Mail''; in 2.4, replace ``Fourth-[C]lass [M]ail'' with ``Standard Mail (B)''; no other change in text.] [[Page 10117]] [Move current Exhibit [C300.]1.3 to new C600.1.1c and redesignate as Exhibit [600.]1.1c; retitle redesignated Exhibit 1.1c as ``Dimensions for Enhanced Carrier Route Standard Mail''; remove text of C300.] [Move current Exhibit [C400.]1.2 to new C600.1.2b and redesignate as Exhibit [C600.]1.2b; remove text of current C300 and C400.] [No change to C500.] [Insert new C600, based on text of current C300 and C400, as follows:] C600 Standard Mail 1.0 Dimensions 1.1 Standard Mail (A) These dimensional standards apply to Standard Mail (A): a. Each piece must weigh less than 16 ounces. Lower limits apply to mail claimed at automation rates. b. Within the standards for mailability in C010, there is no maximum size for nonautomation rate Regular and Nonprofit Standard Mail (A); all automation rate Standard Mail (A) is subject to the size and weight limits in C810 (letters) and C820 (flats), as applicable. c. Except for automation Basic Carrier Route rate pieces and merchandise samples mailed with detached address labels (DALs), the maximum size for Enhanced Carrier Route Standard Mail is 11\3/4\ inches high, 14 inches long, and \3/4\ inch thick (see Exhibit 1.1c). Merchandise samples whose dimensions exceed these maximums may be sent at the Enhanced Carrier Route rates if mailed using DALs, provided that the samples meet all other applicable standards and the DALs meet the standards in A060. [Insert redesignated Exhibit [600.]1.1c.] 1.2 Standard Mail (B) These dimensional standards apply to Standard Mail (B): a. Each piece may not exceed 70 pounds, except matter at bound printed matter rates may not exceed 10 pounds. b. The combined length and girth of a piece (i.e., the length of its longest side plus the distance around its thickest part) may not exceed 108 inches (see Exhibit 1.2b). c. Two or more packages may be mailed as a single parcel, if they are about the same size or shape or if they are parts of one article, if they are securely wrapped or fastened together, and if they do not together exceed the weight or size limits. d. Lower size or weight standards apply to mail claimed at certain rates, addressed to certain APOs and FPOs, or sent by the Department of State to U.S. Government personnel abroad. e. Pieces might be subject to minimum weight or dimensions based on the standards for specific rates. [Insert redesignated Exhibit [600.]1.2b.] 2.0 Surcharges 2.1 Nonstandard Mail Single-piece rate Standard Mail (A) (other than a key or identification device) weighing 1 ounce or less is nonstandard and subject to the applicable surcharge if its thickness exceeds \1/4\ inch or, if based on the placement (orientation) of the address, its length exceeds 11\1/2\ inches, its height exceeds 6\1/8\ inches, or its length divided by its height is less than 1.3 or more than 2.5. 2.2 Nonmachinable Mail Specific items mailed at the inter-BMC/ASF parcel post rates might be subject to a nonmachinable surcharge (as described in E600) unless the mailer paid the special delivery or special handling fee. 3.0 Sealing Standard Mail is not sealed against postal inspection. Standard Mail may be prepared for automated processing but must allow easy examination. 4.0 Enclosures Envelopes and cards enclosed in automation Standard Mail are subject to the corresponding standards in C810. C800 Automation-Compatible Mail [Renumber current Exhibit [C800.]8.3 as Exhibit 7.2b; replace text of current C810 with new C810 as follows:] C810 Letters and Cards 1.0 Basic Standards Letters and cards claimed at automation-based rates must meet the standards in 2.0 through 7.0, and the general and specific standards for mailability and mail class. Pieces claimed at a card rate must also meet the standards in C100. 2.0 Dimensions 2.1 Shape and Size Each mailpiece must be rectangular and: a. Not more than 6\1/8\ or less than 3\1/2\ inches high. b. Not more than 11\1/2\ or less than 5 inches long. c. Not more than 0.25 or less than (1) 0.007 inch thick if not more than 4\1/4\ inches high and 6 inches long; or (2) 0.009 inch thick if more than 4-1/4 inches high or 6 inches long, or both. 2.2 Aspect Ratio The length of a mailpiece divided by its height (aspect ratio) must be neither less than 1.3 nor more than 2.5. 2.3 Weight Maximum weight limits are: a. 2.5 ounces: upgradable Presorted First-Class, ZIP+4 Preferred Periodicals, upgradable nonautomation Regular Standard Mail, and ZIP+4 Nonprofit Standard Mail. b. 3 ounces: automation First-Class Mail, automation Regular Periodicals, automation Standard Mail, and Barcoded Nonprofit Standard Mail. c. 3.3062 ounces: automation Enhanced Carrier Route heavy letters (subject to 7.5). d. 3.3087 ounces: automation Standard Mail heavy letters (subject to 7.5). e. 3.4383 ounces: automation First-Class Mail, automation Regular Periodicals, and Barcoded Nonprofit Standard Mail heavy letters (subject to 7.5). 3.0 General Prohibitions and Restrictions 3.1 Wraps and Closures An automation-compatible mailpiece may not be polywrapped, polybagged, or shrinkwrapped; have clasps, string, buttons, or similar closure devices; or have protrusions that might impede or damage the mail or mail processing equipment. 3.2 Staples and Saddle Stitching Staples or saddle stitching may be used only on booklet-type mailpieces to join the bound edge (spine). Inserted staples or stitching must parallel the bound edge, seat tightly and securely, and have no protrusions that might impede or damage the mail or mail processing equipment. 3.3 Rigid and Odd-Shaped Items Rigid items (e.g., pens, pencils, keys, bottle caps) are prohibited within mailpieces. Reasonably flexible items (e.g., credit cards) are permitted. Subject to 5.0, odd-shaped items (e.g., coins and tokens) are permitted if firmly affixed to and wrapped within the contents of the mailpiece and envelope to streamline the shape of the mailpiece for automated processing. 4.0 Tabs, Wafer Seals, Tape, and Glue Tabs, wafer seals, cellophane tape, or permanent glue (continuous or spot) may be used as applicable to the [[Page 10118]] particular type of mailpiece under 7.0 if the sealing devices do not interfere with the recognition of the barcode, rate marking, postage information, or delivery or return addresses. In all cases, additional tabs or seals may be used. Cellophane tape is not acceptable within the barcode clear zone. Tabs or wafer seals placed in the barcode clear zone must contain a paper face meeting the standards for background reflectance and, if the barcode is not preprinted by the mailer, the standards for acceptance of water-based ink. Tabs, wafer seals, and tape must have a peel adhesion (shear strength) value of at least 15 ounces/inch at a speed of 12 inches/minute after application to a stainless steel plate; the test is to be conducted 10 minutes after the material is applied to the plate. 5.0 Flexibility 5.1 Ability to Bend To ensure transport through automated equipment, a mailpiece and its contents must bend easily when subjected to a transport belt tension of 40 pounds around an 11-inch diameter drum. 5.2 Testing Flexibility A mailer wanting to have mailpieces tested for flexibility must submit at least 50 sample pieces and a written request to USPS Engineering at least 6 weeks before the mailing date. The request must describe mailpiece contents and construction, number of pieces being produced, and level of preparation (e.g., presort). Engineering advises the mailer by letter of its findings. If the mailpiece is approved, the letter includes a unique number identifying the piece tested and serves as evidence that the piece meets the relevant standards. A copy of the letter must be attached to each postage statement submitted for mailings of the approved piece. If requested by the USPS, the mailer must show that pieces presented for mailing are the same as those tested and approved. 6.0 Outside Labels and Stickers 6.1 Use Permanent labels and stickers (i.e., those designed not to be removed or relocated) must be affixed directly to the outside of the mailpiece with permanent adhesive. A mailer may provide recipients with relocatable labels to place on the outside of response pieces sent back to the mailer. On pieces mailed at First-Class card rates or at Periodicals rates, labels and stickers may be used only if permitted by the applicable standards. 6.2 Pressure-Sensitive Labels Pressure-sensitive labels and stickers affixed directly to mailpieces before mailing must have a minimum peel adhesion to stainless steel of 8 ounces/inch. This standard does not apply to pressure-sensitive labels provided by the USPS to label packages to sortation levels. 6.3 ``Sandwich'' Labels A face stock/liner label (``sandwich'' label) is a two-part unit with a face stock (top label) attached to a liner (bottom label) affixed to the mailpiece. The face stock must have a peel adhesion value of at least 2 ounces/inch with respect to the liner label and at least 8 ounces/inch when reapplied to stainless steel. 7.0 Additional Standards for Specific Types of Pieces 7.1 Envelopes and Pieces Sealed on All Sides An envelope or any mailpiece formed by an outer sheet or sheets sealed on all four edges must be prepared from paper with a minimum basis weight of 16 pounds (measured weight for 500 17- by 22-inch sheets). 7.2 Folded Self-Mailers A folded self-mailer must be prepared with the folded edge parallel to the longest dimension and the address of the mailpiece. These additional standards apply, based on the number of tabs used: a. With one tab or wafer seal, the folded edge must be at the bottom of the self-mailer. The tab or wafer seal must be placed in the middle of the top edge of the piece. If formed of a single folded sheet, the self-mailer must be prepared from paper with a minimum basis weight of 28 pounds (measured weight for 500 17- by 22-inch sheets) or 70 pounds (measured weight for 500 25- by 38-inch sheets). If formed of multiple folded sheets, the self-mailer must be prepared from paper with a minimum basis weight of 24 pounds (measured weight for 500 17- by 22-inch sheets) or 60 pounds (measured weight for 500 25- by 38-inch sheets). b. With two tabs or wafer seals, the folded edge may be at the top or bottom of the self-mailer. The two tabs or wafer seals must be placed on the open edge, opposite the folded edge. One tab or wafer seal must be placed within 1 inch of the left edge of the piece; the other, within 1 inch of the right edge of the piece (see Exhibit 7.2b). The whole tab need not be placed within 1 inch of the edge. The tabs must not obscure the FIM, postage, or required address information. The folded self-mailer must be prepared from paper with a minimum basis weight of 20 pounds (measured weight for 500 17- by 22-inch sheets). [Insert renumbered Exhibit 7.2b.] 7.3 Booklet-Type Pieces The front and back covers of a booklet-type piece must be prepared from paper with a minimum basis weight of 20 pounds (measured weight for 500 17- by 22-inch sheets). The bound edge (spine) must be the longest edge of the piece and at the bottom, parallel to the address. The top (unbound) edge must be secured with at least two tabs or wafer seals. One tab or wafer seal must be placed within 1 inch of the left edge of the piece; the other, within 1 inch of the right edge of the piece. 7.4 Cards Cards must be prepared from paper stock meeting the industry standard for a basis weight of 75 pounds or greater, with none less than 71.25 pounds (measured weight for 500 25- by 38-inch sheets). The stock must be free from groundwood unless coated with a substance adding to the stock's ability to resist an applied bending force. A double postcard not prepared with all edges sealed must have the folded edge at the top or bottom, and the open edge parallel to the address must be secured with one tab (or other permitted closure) in the middle of the length. 7.5 Heavy Letter Mail Heavy letter mail (i.e., barcoded letter-size mail weighing more than 3 ounces up to the maximum in 2.3) must meet the additional barcoding standards in C840, must be prepared in an envelope, and must be part of a 100% delivery point barcoded mailing. Heavy letter mail may neither contain stiff enclosures nor be prepared as a self-mailer or booklet-type mailpiece. 8.0 Enclosed Reply Cards and Envelopes 8.1 Basic Standard Effective January 1, 1997, all courtesy reply and business reply mail (BRM) letter-size cards and envelopes provided as enclosures in automation First-Class, automation Regular Periodicals, and automation Regular Standard Mail must meet the applicable standards in 1.0 through 7.0, bear a facing identification mark meeting the standards in 8.2, and bear the correct delivery point barcode (or, for BRM, the correct ZIP+4 barcode) for the delivery address of the reply piece as defined by the USPS, subject to the barcode standards in C840. Mailers [[Page 10119]] must certify that these standards have been met when the corresponding mail is presented to the USPS. BRM pieces must also meet the applicable standards in S922. 8.2 FIM Each enclosed reply piece described in 8.1 must bear the correct facing identification mark (FIM), either FIM A for courtesy reply or FIM C for BRM, prepared under the standards in S922. C820 Flats [Add new 1.0; renumber current 1.0 through 6.0 as 2.0 through 7.0, respectively; renumber Exhibit 4.1a, Exhibit 4.1b, and Exhibit 4.2 as Exhibit 5.1a, Exhibit 5.1b, and Exhibit 5.2, respectively; remove renumbered 2.1 and redesignate renumbered 2.2 through 2.5 as 2.1 through 2.4, respectively; in renumbered 2.4b and 6.2, replace ``second-class'' with ``Periodicals''; in renumbered 2.4c, replace ``third-class'' with ``Standard Mail (A)''; revise other text as follows:] 1.0 Basic Standards All pieces must meet the general and specific standards for mailability and the class of mail and rate claimed. 2.0 General Dimensions * * * * * [Revise the heading and text of renumbered 2.3 as follows:] 2.3 Shape and Size Each mailpiece must be rectangular and: a. Not more than 12 or less than 6 inches high. b. Not more than 15 or less than (1) 5 inches long if from 6 to 7\1/2\ inches high; or (2) 6 inches long if more than 7\1/2\ inches high. c. Not more than 0.75 or less than 0.009 inch thick. * * * * * [Revise renumbered 4.0 as follows:] 4.0 Tabs, Wafer Seals, Tape, and Glue Tabs, wafer seals, cellophane tape, or permanent glue (continuous or spot) may be used if these sealing devices do not interfere with the recognition of the barcode, rate marking, postage information, and delivery and return addresses. Cellophane tape may not be placed over the barcode or where any part of the barcode will be printed. Tabs or seals placed in the area on which any part of the barcode is printed must contain a paper face meeting the standards for background reflectance. Tabs, wafer seals, and tape must have a peel adhesion (shear strength) value of at least 15 ounces/inch at a speed of 12 inches/minute after application to a stainless steel plate; the test is to be conducted 10 minutes after the material is applied to the plate. 5.0 Turning Ability and Deflection [In renumbered 5.1a, replace ``(see Exhibit 4.1a)'' with ``(see Exhibit 5.1a)''; in renumbered 5.1b, replace ``(see Exhibit 4.1b)'' with ``(see Exhibit 5.1b)''; in renumbered 5.2 (heading), replace ``Rigidity'' with ``Deflection''; in renumbered 5.2, replace reference ``Exhibit 4.2'' with ``Exhibit 5.2''; no other change.] * * * * * [Revise renumbered 7.0 as follows:] 7.0 Outside Labels and Stickers 7.1 Use Permanent labels and stickers (i.e., those designed not to be removed or relocated) must be affixed directly to the outside of the mailpiece with permanent adhesive. A mailer may provide recipients with relocatable labels to place on the outside of response pieces sent back to the mailer. On pieces mailed at Periodicals rates, labels and stickers may be used only if permitted by the applicable standards. 7.2 Pressure-Sensitive Labels Pressure-sensitive labels and stickers affixed directly to mailpieces before mailing must have a minimum peel adhesion to stainless steel of 8 ounces/inch. This standard does not apply to pressure-sensitive labels provided by the USPS to label packages to sortation levels. 7.3 ``Sandwich'' Labels A face stock/liner label (``sandwich'' label) is a two-part unit with a face stock (top label) attached to a liner (bottom label) affixed to the mailpiece. The face stock must have a peel adhesion value of at least 2 ounces/inch with respect to the liner label and at least 8 ounces/inch when reapplied to stainless steel. * * * * * [Revise the heading of C830 as follows:] C830 OCR Standards * * * * * C840 Barcoded Mailpieces * * * * * [Revise 2.0 as follows:] 2.0 Barcode Location--Letter-Size Pieces 2.1 Barcode Clear Zone Each piece in an automation rate mailing and each piece of upgradable Presorted First-Class or upgradable Regular Standard Mail must have a barcode clear zone unless the piece bears a DPBC in the address block. The barcode clear zone and all printing and material in the clear zone must meet the reflectance standards in 5.0. The barcode clear zone is a rectangular area in the lower right corner of the address side of cards and letter-size pieces defined by these boundaries: a. Right: right edge of the piece. b. Left: 4-3/4 inches from the right edge of the piece. c. Bottom: bottom edge of the piece. d. Top: 5/8 inch from the bottom edge of the piece. 2.2 General Standards Barcode location is subject to these general standards: a. Pieces in automation rate mailings, except those subject to 2.2b or 2.2c, may bear a DPBC (or, when permitted by standard, a 5-digit barcode) in either the address block or the barcode clear zone. Pieces may bear a ZIP+4 barcode (subject to rate eligibility standards) only when the ZIP+4 barcode is in the address block and the DPBC is correctly positioned within the barcode clear zone. b. ZIP+4 rate pieces may bear a DPBC within either the address block or the barcode clear zone. Pieces may not bear a ZIP+4 barcode in the lower right corner. Subject to rate eligibility standards, pieces may bear a ZIP+4 barcode in the address block or a 5-digit barcode within either the address block or the barcode clear zone in the lower right corner of the address side. c. Automation rate pieces weighing more than 3 ounces, up to the maximum weight for barcoded pieces permitted by C810, must bear a DPBC in the address block. 2.3 Printed on Mailpiece Except as noted in 8.2 for 5-digit barcodes, if the barcode is printed directly on the lower right corner of the piece, the entire barcode must be within the barcode read area defined by these limits: a. Horizontally, the leftmost bar must be between 3-1/2 inches and 4-1/4 inches from the right edge of the mailpiece. b. Vertically, the barcode must be positioned within the area between 3/16 inch and 7/16 inch from the bottom edge of the mailpiece; the bottom of the bars must be 1/4 inch
1/16 inch from the bottom edge of the mailpiece. 2.4 Printed on Inserts If the barcode is printed on an insert to appear through a window in the lower right corner of an envelope: [[Page 10120]] a. The envelope and window must meet the physical standards in 7.0. b. The entire barcode must be within the barcode clear zone (but need not be completely within the barcode read area). c. When the insert showing through the window is moved to any of its limits inside the envelope, the entire barcode must remain within the barcode clear zone, and a clear space must be maintained that is at least 1/8 inch between the barcode and the left and right edges of the window, at least 1/25 inch between the barcode and the top edge of the window, and at least 3/16 inch between the barcode and the bottom edge of the mailpiece. 2.5 Printed in Address Block When the barcode is included as part of the address block: a. The barcode must be placed above the address line containing the recipient's name; below the city, state, and ZIP Code line; above or below the keyline information; or above or below the optional endorsement line. b. The printing of the barcode anywhere between the address line containing the recipient's name and the city, state, and ZIP Code line is prohibited. c. The minimum clearance between the barcode and any information line above or below it within the address block must be at least 1/25 inch, and the separation between the barcode and top line or bottom line of the address block must not exceed 5/8 inch. d. If a window envelope is used, the clearance between the leftmost and rightmost bars and any printing or window edge must be at least 1/8 inch, and the clearance between the barcode and the top and bottom window edges must be at least 1/25 inch. These clearances must be maintained during the insert's range of movement in the envelope. Address block windows on heavy letter mail (as defined in 2.2c) must be covered; such windows may be covered on other mail. Covers for address block windows are subject to 7.3. e. If an address label is used, a clear space of at least 1/8 inch must be left between the barcode and the left and right edges of the address label, and the clearance between the barcode and the top and bottom edges of the address label must be at least 1/25 inch. f. The rightmost bar must be at least 1/2 inch from the right edge of the mailpiece, and the leftmost bar must be less than 10-1/2 inches from the right edge of the mailpiece and at least 1/2 inch from the left edge of the mailpiece; the top of each bar must be less than 4 inches from the bottom edge of the mailpiece; and the bottom line of the address block, including the barcode, must be at least 5/8 inch from the bottom of the mailpiece. [Renumber current 3.0 through 9.0 as 4.0 through 10.0, respectively; in renumbered 7.2, replace the reference ``6.3'' with ``7.3''; in renumbered 7.3, replace the reference ``4.0'' with ``5.0''; add new 3.0 as follows:] 3.0 Barcode Location--Flat-Size Mail The barcode may be anywhere on the address side that is at least 1/ 8 inch from any edge of the mailpiece. That portion of the surface of the piece on which the barcode is printed must meet the reflectance standards in 5.0. The address side may bear only one POSTNET-format barcode (i.e., the correct barcode for the delivery address on the mailpiece). Other mailer-applied non-POSTNET barcodes may appear on the address side if their format is not intelligible or not confusing to automated postal equipment. Address block barcodes are subject to the standards in 2.5a through 2.5f. [Revise renumbered 4.0 as follows:] 4.0 Barcode Dimensions and Spacing Barcodes are subject to these standards for dimensions and spacing. Extraneous ink or ink voids must not cause any bar to fail to meet these standards: a. A full bar must be 0.125 0.010 inch high. b. A half bar must be 0.050 0.010 inch high. c. All bars must be 0.020 0.005 inch wide. d. Measured over any 1/2 inch, horizontal spacing of the bars must be 22 2 bars per inch, and pitch (a bar and a space) must average at least 0.0416 inch but no more than 0.05 inch. The clear vertical space between bars must not be less than 0.012 inch nor more than 0.04 inch. 5.0 Reflectance * * * * * 5.4 Dark Fibers and Background Patterns * * * * * c. The barcode clear zone on all nonbarcoded pieces in a letter- size barcoded mailing. * * * * * 8.0 Use of ZIP+4 or 5-Digit Barcodes 8.1 Automation Pieces Pieces in automation rate mailings are subject to these standards: a. Subject to the eligibility standards for the rate claimed, pieces in automation rate mailings of Preferred Periodicals and Nonprofit Standard Mail may bear a ZIP+4 or 5-digit barcode if the barcode meets the standards in 3.0 through 6.0 except that a ZIP+4 barcode may not appear in the lower right corner on pieces in ZIP+4 rate mailings or in Barcoded rate mailings of pieces with address block barcodes. b. Letter-size pieces in automation rate mailings of First-Class Mail, Regular Periodicals, and Standard Mail may not bear a 5-digit or ZIP+4 barcode in the lower right corner. Pieces may bear a 5-digit or ZIP+4 barcode in the address block if a DPBC appears in the lower right corner. c. Flat-size pieces in automation rate mailings of First-Class Mail, Regular Periodicals, and Standard Mail may not bear a 5-digit barcode. 8.2 Leftmost Bar Any 5-digit barcode must be located as specified in 2.0, except that, if placed in the barcode clear zone, the leftmost bar of the barcode must be between 4-1/8 and 4-1/4 inches from the right edge of the mailpiece. * * * * * D Deposit, Collection, and Delivery D000 Basic Information * * * * * D020 Plant Loads [In 3.1, replace ``second-, third-, and fourth-class mail'' with ``Periodicals and Standard Mail'' and ``mailing statement'' with ``postage statement''; in the table in 5.0 in the first column, replace ``Second-Class'' with ``Periodicals'' and ``Bulk Mail Acceptance Unit'' with ``Business Mail Entry Unit (BMEU)''; in the table in 5.0 in the fourth column, replace ``Post Office of Acceptance Unit'' with ``BMEU Post Office'' and both ``Eligible SCF'' and ``Delivery/SCF Office'' with ``Entry Office''; in the table in 5.0, in footnote 1, replace ``Mailing statements'' with ``Postage statements''; in the table in 5.0, in footnote 2, replace ``carrier route First-Class, Presorted First-Class, ZIP+4, and Barcoded rate mail'' with ``Presorted First- Class and all automation rate mail.''] * * * * * D041 Customer Mail Receptacles [In 2.10, replace ``second-class mail'' with ``Periodicals.''] D042 Conditions of Delivery [In 7.0, replace the reference ``M011'' with ``M012.''] [[Page 10121]] D071 Express Mail and Priority Mail Drop Shipment [In 1.2, 1.3, 2.2, and 2.3, replace ``bulk mail acceptance unit'' with ``business mail entry unit.''] D072 Drop Shipment of Metered Mail [In 5.2, 5.3, 6.2, and 6.3, replace ``mailing statement'' with ``postage statement.''] 4.0 Option 2: Deposit at Another Post Office * * * * * [Revise 4.4 as follows:] 4.4 Markings The drop shipment endorsement placed in the ad plate area may include the marking required by the standards for the rate claimed if that marking is placed directly below the drop ship endorsement and meets the standards in M012. The marking may also be provided separately, not necessarily by meter ad plate, directly below the meter stamp or imprint, if it meets the relevant size and legibility standards. * * * * * 5.0 Option 3: Consolidated Drop Shipment With Endorsement * * * * * [Combine 5.2 and 5.3 as 5.2 and revise the heading as follows:] 5.2 Barcoded and Nonbarcoded Portion [In new 5.2, replace ``mailing statement'' with ``postage statement.''] [Renumber current 5.4 through 5.11 as 5.3 through 5.10, respectively.] * * * * * 6.0 Option 4: Consolidated Drop Shipment Without Endorsement * * * * * [Combine 6.2 and 6.3 as 6.2 and revise the heading as follows:] 6.2 Barcoded and Nonbarcoded Portion [In new 6.2, replace ``mailing statement'' with ``postage statement.''] Renumber current 6.4 through 5.12 as 6.3 through 6.11, respectively.] * * * * * D100 First-Class Mail [In 2.5, replace ``carrier route First-Class, Presorted First-Class, ZIP+4, and Barcoded rate'' with ``Presorted First-Class or automation rate''; remove 2.6; in 3.3, replace ``a presorted or automation First- Class rate'' with ``a Presorted First-Class rate or an automation First-Class rate''; remove 3.4 and renumber current 3.5 and 3.6 as 3.4 and 3.5, respectively; in renumbered 3.5, replace ``mailing statement'' with ``postage statement.''] [Revise the heading of D200 as follows:] D200 Periodicals D210 Basic Information [In 1.0, 2.1, 2.2, 3.1, 3.4, 4.0 (heading), 4.1, and 4.2, replace ``[S]econd-[C]lass [[M]ail]'' with ``Periodicals''; in 2.1, replace ``First-, third- or fourth-class'' with ``First-Class or Standard Mail''; in 4.4a, replace ``second-class mail privileges'' with ``Periodicals mailing privileges''; in 4.5d, replace ``mailing statements'' with ``postage statements.''] D230 Additional Entry [In 1.1, replace ``second-class'' with ``Periodicals''; in 1.1 and 1.5, replace ``mailing statements'' with ``postage statements''; in 4.5, replace ``second- and third-class mail'' and ``third-class mail'' with ``Periodicals and Standard Mail (A)'' and ``Standard Mail (A),'' respectively.] [Remove D300.] [Remove D400.] [No change to D500.] [Insert new D600, based on current D300 and D400, and revise as follows:] D600 Standard Mail 1.0 Service Objectives The USPS does not guarantee the delivery of Standard Mail within a specified time. Standard Mail might receive deferred service. Local postmasters can provide more information. 2.0 Mail Deposit 2.1 Single-Piece Rates Single-piece rate parcel post, bound printed matter, Special Standard Mail, or Library Mail must be deposited at a time and place specified by the mailing post office postmaster. Single-piece rate Standard Mail (A) bearing regular adhesive stamps may be placed into collection boxes, mailchutes, receiving boxes, or other places where mail is accepted. Mail with meter postage must be deposited in a location under the jurisdiction of the licensing post office, except as permitted in D072. Mail with permit imprints must be presented at the post office as specified in P040 or P700. Mail with precanceled stamps must be presented at the post office as specified in P023. 2.2 Bulk Rates Bulk rate Standard Mail must be presented at a business mail entry unit of the post office where the postage permit or license is held and the annual bulk mailing fee is paid. Mailings must be deposited at the locations and times specified by the postmaster. Plant-loaded mailings must be presented as specified by the applicable standards and the plant load agreement. Metered bulk Standard Mail may be deposited at other than the licensing post office only as permitted under D072. Nonprofit Standard Mail must be deposited only at post offices where the USPS has approved a nonprofit authorization under the relevant standards. 2.3 Zoned Rates Unless excepted by other standards, pieces paid at zoned rates must be presented for acceptance at the post office from which the applicable zoned rate postage is computed. 2.4 Separation of Mailings Unless permitted by standard, the same mailing (as defined in M011) may not include pieces claimed at Regular rates, Nonprofit rates, or Enhanced Carrier Route rates; or at both automation and nonautomation rates; or at both Nonprofit 3/5 and Nonprofit carrier route rates. Mailings that separately qualify at Enhanced Carrier Route and Regular rates, or mailings that separately qualify at Nonprofit rates may be reported on the same postage statement, if all pieces from each mailing are presented at the same time and are correctly marked and prepared under the respective standards. * * * * * [No change to D900.] E Eligibility E000 Special Eligibility Standards E010 Overseas Military Mail [In 1.3, replace ``Third- or fourth-class'' with ``Standard Mail''; in 1.4, replace ``Second-[C]lass'' with ``Periodicals''; in 1.5, replace the reference ``C400'' and ``fourth-class'' with ``C600'' and ``Standard Mail (B),'' respectively; in 3.1, replace ``second-, third-, or fourth-class'' with ``Periodicals or Standard Mail''; in 3.3, replace ``second-, third-, or fourth-class mail'' with ``Periodicals or Standard Mail''; no other change in text.] * * * * * E040 Free Matter for the Blind and Other Handicapped Persons [In 4.1b, replace the reference ``C400'' with ``C600.''] * * * * * E060 Official Mail (Penalty) [Renumber Exhibit 13.4 as Exhibit 13.3; in 13.3, add to end of section ``See Exhibit 13.3 for format.'' In 4.3, 5.4a, [[Page 10122]] 6.1, 13.0 (heading), 13.1, 13.2, 13.3, renumbered Exhibit 13.3, 13.5, and 15.2b, replace ``[S]econd-[C]lass [[M]ail]'' with ``Periodicals''; in 13.4, replace ``Exhibit 13.4'' with ``Exhibit 13.3''; remove the last sentence in 7.3; remove 9.6 and renumber 9.7 through 9.9 as 9.6 through 9.8, respectively; in 12.1, replace ``(including Priority Mail), single-piece third-class, and single-piece fourth-class (parcel post, special-fourth-class, and bound printed matter)'' with ``(including Priority Mail) and single-piece rate Standard Mail (single-piece rate Standard Mail (A), parcel post, Special Standard Mail, and bound printed matter)''; in 12.8, replace ``Third- or fourth- class'' with ``Standard Mail''; in 12.9, replace ``Third- and fourth- class'' with ``Standard Mail''; in 15.2a, replace ``First-, third-, and fourth-class'' with ``First-Class and Standard Mail''; no other change in text.] E070 Mixed Classes [In 2.1, 2.2, 2.3, 3.3, and 3.4, replace ``First- or [T]hird-[C]lass [[M]ail]'' with ``First-Class Mail or Standard Mail (A)''; in 2.1, replace ``second-, third-, or fourth-class'' with ``Periodicals or Standard Mail (A) or (B)''; in 2.4, 2.5, 3.1, 3.2b, 3.5, 3.6, 4.2, and 5.0, replace ``[T]hird-[C]lass [Mail]'' with ``Standard Mail (A)''; in 3.0 (heading), 3.1, 3.2, 3.2a, 3.2c, 3.2e, and 5.0 (heading), replace ``[S]econd-[C]lass'' with ``Periodicals''; in 3.3, replace ``comparable First- or third-class presort rate'' with ``comparable First-Class Mail or Standard Mail (A) rate''; in 4.0 (heading), replace ``Third- or Fourth-Class Parcels'' with ``Standard Mail Parcels''; in 4.1, replace ``with third- or fourth-class mail'' with ``in pieces of Standard Mail''; in 4.2, 5.0,and 6.0 (heading), replace ``[F]ourth-[C]lass'' with ``Standard Mail (B)''; in 4.2, replace the reference ``E400'' with ``E600''; in 6.1, replace ``special fourth-class'' with ``Special Standard Mail''; no other change in text.] * * * * * E100 First-Class Mail [Insert text of current E110; revise as follows:] E110 Basic Standards 1.0 Classification and Description * * * * * 1.2 Written or Typewritten Matter Matter wholly or partially in writing or typewriting must be mailed as First-Class Mail or Express Mail, except authorized additions to Periodicals or Standard Mail and written or typewritten matter in Library Mail and Special Standard Mail, as permitted by the corresponding standards. * * * * * 3.0 Rates for Postal Cards and Postcards * * * * * 3.3 Card Rates To be eligible for the card rates, a postcard or postal card (and each part of a double postcard or double postal card) must meet the physical standards in C100. The reply part of a double postcard does not have to bear postage when originally mailed, but it must bear postage at the applicable rate when returned. Cards not meeting the standards for card rates must be paid at the rates for matter other than cards. * * * * * [Remove text of current 4.0 and 5.0; renumber 6.0 and 7.0 as 4.0 and 5.0, respectively.] 4.0 Fees [Revise the heading and text of renumbered 4.1 as follows:] 4.1 Presort Mailing A First-Class presort mailing fee must be paid once each 12-month period at each office of mailing by any person or organization entering mailings at automation or Presorted First-Class rates and/or Presorted Priority Mail rates. Payment of one fee allows a mailer to enter mail at all those rates. Persons or organizations paying this fee may enter mail of their clients as well as their own mail. * * * * * [Revise renumbered 5.0 as follows:] 5.0 Documentation A postage statement, completed and signed by the mailer, using the correct USPS form or an approved facsimile, must be submitted with each mailing except for single-piece First-Class or single-piece Priority Mail mailings in which the correct postage is affixed to each piece. Supporting documentation might be required by the standards for the rate claimed or the postage payment method used. * * * * * [Replace text of current E131 with new E130 as follows:] E130 Nonautomation First-Class Mail Rates 1.0 Basic Standards 1.1 All Pieces All pieces of nonautomation First-Class Mail must: a. Meet the basic standards for First-Class Mail in E110. b. Weigh 11 ounces or less. c. Bear a delivery address. d. Meet the applicable documentation and postage payment standards in P012, P013, and P100. 1.2 Barcodes Any POSTNET barcode on a mailpiece in a nonautomation First-Class mailing must be the correct barcode for the delivery address and meet the standards in C840 and A950. 1.3 Nonstandard Surcharge Single-piece or Presorted First-Class Mail is subject to a nonstandard surcharge if it is not mailed at the card rate, weighs 1 ounce or less, and meets the definition of nonstandard mail in C100. 2.0 Single-Piece Rate The single-piece card rate applies to any card meeting the applicable standards in C100 that is not eligible for or claimed at Presorted or automation First-Class rates. The single-piece rate applies to any other First-Class Mail weighing 11 ounces or less that is not eligible for or claimed at the single-piece card rate, the Presorted First-Class rate, or an automation First-Class rate. 3.0 Presorted Rate 3.1 Letters In addition to the standards in 1.0, all pieces in a Presorted First-Class rate mailing must: a. Be part of a single mailing of at least 500 pieces of Presorted First-Class Mail, subject to 3.2. b. Be in the same processing category and meet the applicable physical standards in C100. c. Bear a delivery address that includes the correct ZIP Code or ZIP+4 code and that meets the corresponding standards for accuracy and maintenance in 3.3 and 3.4. d. Be marked, sorted, and documented as specified in M130. 3.2 Cards and Letters Cards claimed at card rates must meet the physical standards for card rates in C100. Pieces claimed at card rates and pieces claimed at letter rates are subject to separate minimum volume criteria, but may be combined in the same mailing and reported on the same postage statement. 3.3 Address Quality Effective January 1, 1997, addresses appearing on all pieces claimed at the Presorted rate must be updated within 6 months before the mailing date by a USPS-approved address update tool (e.g., the ``Address Correction [[Page 10123]] Endorsement,'' ACS, or NCOA). Additional alternatives currently under development (such as FASTFORWARDSM) may be used to meet this requirement when they have received final approval. Mailers must certify that this standard has been met when the corresponding mail is presented to the USPS. This standard applies to each address individually, not to a specific list or mailing. An address meeting this standard may be used in mailings at any other rate to which the standard applies throughout the 6-month period following its most recent update. 3.4 ZIP Code Accuracy Effective October 1, 1996, 5-digit ZIP Codes included in addresses appearing on pieces claimed at the Presorted rate must be verified and corrected within 12 months before the mailing date by a USPS-approved method. Mailers must certify that this standard has been met when the corresponding mail is presented to the USPS. This standard applies to each address individually, not to a specific list or mailing. An address meeting this standard may be used in mailings at any other rate to which the standard applies throughout the 12-month period following its most recent update. [Remove E132.] [Replace text of current E142, E144, E145, E147, E148, and E149 with new E140 as follows:] E140 Automation First-Class Mail Rates 1.0 Basic Standards 1.1 All Pieces All pieces in a First-Class automation rate mailing must: a. Meet the basic standards for First-Class Mail in E110. b. Be part of a single mailing of at least 500 pieces of automation rate First-Class Mail, subject to 1.2. c. Be in the same processing category and meet the applicable physical standards in C810 or C820. d. Bear a delivery address that includes the correct ZIP Code, ZIP+4 code, or numeric equivalent to the delivery point barcode (DPBC). e. Meet the address quality and coding standards in 1.3, 1.4 (if applicable), A800, and A950. f. Bear an accurate barcode meeting the standards in C840, either a DPBC (if a card or letter) or a ZIP+4 barcode or DPBC (if a flat), either on the piece or on an insert showing through a barcode window. g. Be marked, sorted, and documented as specified in M810 or M820, as applicable. h. Meet the applicable documentation and postage payment standards in P012, P013, and P100. 1.2 Cards and Letters Cards claimed at card rates must meet the physical standards for card rates in C100. Pieces claimed at card rates and pieces claimed at letter rates are subject to separate minimum volume criteria, but may be combined in the same mailing and reported on the same postage statement. 1.3 Address Quality Effective January 1, 1997, addresses appearing on all pieces claimed at automation rates must be updated within 6 months before the mailing date by a USPS-approved address update tool (e.g., the ``Address Correction Endorsement,'' ACS, or NCOA). Additional alternatives currently under development (such as FASTFORWARD SM) may be used to meet this requirement when they have received final approval. Mailers must certify that this standard has been met when the corresponding mail is presented to the USPS. This standard applies to each address individually, not to a specific list or mailing. An address meeting this standard may be used in mailings at any other rate to which the standard applies throughout the 6-month period following its most recent update. 1.4 Carrier Route Presort Carrier route rates are available only for letter-size mail and only for those 5-digit ZIP Code areas identified in the USPS City/State File used for address coding. Subject to A930 and A950, mailers must apply carrier route codes to mailings using CASS-certified software and the current USPS Carrier Route Information System (CRIS) scheme or another AIS product containing carrier route information. Carrier route and City/State File information must be updated within 90 days before the mailing date. 1.5 Enclosed Reply Cards and Envelopes Effective January 1, 1997, all courtesy reply and business reply mail (BRM) cards and letter-size envelopes provided as enclosures in First-Class automation mail must meet the standards in C810 for enclosed reply cards and envelopes. Mailers must certify that this standard has been met when the corresponding mail is presented to the USPS. 2.0 Rate Application 2.1 Letters or Cards First-Class automation rates apply to each piece that is sorted under M810 into the corresponding qualifying groups: a. Subject to 1.4, pieces in full carrier route trays, or in carrier route groups of 10 or more pieces each placed in 5-digit carrier routes trays, qualify for the Carrier Route automation rate. (Preparation to qualify for that rate is optional and need not be performed for all carrier routes in a 5-digit area.) b. Groups of 150 or more pieces in 5-digit trays qualify for the 5- Digit automation rate. (Preparation to qualify for that rate is optional and need not be performed for all 5-digit destinations.) c. Groups of 150 or more pieces in 3-digit or 3-digit scheme trays qualify for the 3-Digit automation rate. d. Pieces in AADC and mixed AADC trays qualify for the Basic automation rate. 2.2 Flats First-Class automation rates apply to each piece that is sorted under M820 into the corresponding qualifying groups: a. Pieces in 5-digit or 3-digit packages of 10 or more pieces each qualify for the 3/5 automation rate. b. Pieces in ADC or mixed ADC packages qualify for the Basic automation rate. [Revise the heading of E200 as follows:] E200 Periodicals E210 Basic Standards [Revise the heading of E211 as follows:] E211 Standards Applicable to All Periodicals Publications [Renumber current 1.1 and 1.2 as 1.2 and 1.3, respectively; in renumbered 1.3, and in 2.1, 3.0, 4.1, 5.1, 6.1, 6.2, 7.2, 7.4, 7.5, 8.1, 8.2, 9.0, 11.1, and 12.0, replace ``second-class [mail]'' with ``Periodicals''; in 1.1, 4.1, 5.3, 7.4, 7.5, 10.2, and 13.1a, replace ``second-class mail privileges'' with ``Periodicals mailing privileges''; in 6.1 and 9.0, replace ``First-, third-, or fourth-class rates'' with ``First-Class or Standard Mail rates''; add new 1.1 and revise other text as follows:] 1.0 Basic Information 1.1 Second-Class Effective July 1, 1996, second-class mail was renamed Periodicals. This name change does not alter the status of authorized publications; second-class mailing privileges are now referred to as [[Page 10124]] Periodicals mailing privileges and have comparable eligibility standards. * * * * * 10.0 Identification * * * * * 10.4 Bound Publication In a bound publication (one secured with two or more staples, spiral binding, glue, stitching, or other permanent fastening), the identification statement must be shown conspicuously as described in 10.3 or on one of the last three editorial pages inside the back cover. If the publication is mailed with a permissible nonincidental enclosure paid with permit imprint, the identification statement must be located as specified in 10.3. 10.5 Identification Statement Content The identification statement must contain: * * * * * g. The imprint ``Periodicals Postage Paid at * * *'' or, if mailed at two or more offices, ``Periodicals Postage Paid at * * * and at additional mailing offices.'' A notice of pending application is shown instead if copies are mailed while an application is pending: ``Application to Mail at Periodicals Postage Rates is Pending at * * *.'' * * * * * 14.0 Basic Rate Eligibility 14.1 Regular Rates Regular rates apply to all copies of an authorized Periodicals publication mailed by a publisher or news agent, except nonrequester and nonsubscriber copies under E215, unless the publication is authorized a preferred rate. Mailings are also subject to the standards that apply to rates or discounts claimed. Regular rates consist of a per piece charge, a zoned charge for the weight of the advertising portion of the publication, and an unzoned charge for the weight of the nonadvertising portion. Each piece rate requires specific preparation. 14.2 Preferred Rates Preferred rates consist of the in-county rates and the special rates (nonprofit, classroom, and science-of-agriculture). Requester publications are not eligible for preferred rates. Copies of authorized Periodicals publications mailed at any preferred rate must meet the corresponding eligibility standards. Nonsubscriber copies mailed at preferred rates are subject to the standards in E215 and E270 and those applicable to other rates or discounts claimed. Preferred rates consist of a per piece charge, a zoned charge for the weight of the advertising portion of the publication, and an unzoned charge for the weight of the nonadvertising portion, except that in-county rates apply without differentiation to the advertising and nonadvertising portions. Each piece rate requires specific preparation. 14.3 Discounts and Adjustments Postage for Periodicals publications is reduced by all applicable discounts and adjustments: a. The nonadvertising adjustment applies to the outside-county piece rate charges for Regular and Preferred Periodicals publications and is computed as described in P013. b. Presort discounts are available for Regular and Preferred Periodicals, subject to E230. c. Automation discounts are available for Regular and Preferred Periodicals, subject to E240. d. Destination entry discounts are available for copies of a Periodicals publication entered by the publisher at specific USPS facilities, subject to E250. 14.4 Copies Mailed by Public The applicable single-piece First-Class or Standard Mail rate is charged on copies of publications mailed by the general public (i.e., other than publishers or registered news agents) and on copies returned to publishers or news agents. E212 Additional Standards for Qualification Categories [In 1.1, 5.1, 5.3, 6.1, and 6.2, replace ``second-class [mail]'' with ``Periodicals''; in 1.3, 2.1, 2.2, 2.3, 3.1, 5.1, and 5.3, replace ``second-class [mail] privileges'' with ``Periodicals mailing privileges''; in 6.5, replace ``third- or fourth-class rates'' with ``Standard Mail rates.''] [Revise the heading of E213 as follows:] E213 Periodicals Mailing Privileges [In 1.6b, 2.1, 3.5, and 3.6f, replace ``second-class [mail]'' with ``Periodicals''; in 1.1, 1.2, 1.3, 1.4, 1.5, 1.9, 2.1, 3.1, 3.4, 3.5, 4.0 (heading), 4.1, 4.2, and 4.3, replace ``[S]econd-[C]lass [[M]ail] [P]rivileges'' with ``Periodicals [M]ailing [P]rivileges''; in 2.1, replace ``First-, third-, or fourth-class rates'' with ``First-Class or Standard Mail rates''; in 2.2, replace ``third- or fourth-class rates'' with ``Standard Mail rates''; in 3.7 and 4.3, replace ``under 39 CFR 954, Rules of Practice in Proceedings Relative to the Denial, Suspension, or Revocation of Second-Class Mail Privileges, a copy of which'' with ``under 39 CFR 954, a copy of which''; no other change.] E214 Reentry [In 1.1, 1.2, 1.3, 2.2, 3.1, 3.3, 3.6, and 3.10, replace ``second- class'' with ``Periodicals.'' In 2.1, replace ``second-class mail privileges'' with ``Periodicals mailing privileges.'' In 3.10, replace ``third- or fourth-class postage'' with ``Standard Mail postage''; in 3.12, replace ``under 39 CFR 954, Rules of Practice in Proceedings Relative to the Denial, Suspension, or Revocation of Second-Class Mail Privileges, a copy of which'' with ``under 39 CFR 954, a copy of which''; no other change.] * * * * * 3.0 Applications for Reentry * * * * * 3.9 During Appeal During the appeal: a. Copies of any issue of a publication denied reentry under 1.0 and found unqualified for Periodicals mailing privileges are accepted in a pending status at the applicable Standard Mail rates. For this standard, the pending status begins when the appeal is filed and continues until the end of the appeal process. b. Copies of a publication denied reentry under 2.0 are accepted at the currently applicable Periodicals rate. c. The publisher must submit the applicable Periodicals and Standard Mail postage statements with each mailing of the publication in a pending status. Failure to submit these statements is sufficient grounds to deny a postage refund under 3.12. * * * * * E215 Copies Not Paid or Requested by Addressee [In 1.8, 2.1, 2.2, 2.6, and 2.7, replace ``second-class'' with ``Periodicals''; in 1.6, replace ``second-class privileges'' with ``Periodicals mailing privileges''; in 2.6, replace ``Express Mail, or First-, third-, or fourth-class rates, as appropriate'' with ``the appropriate Express Mail, First-Class Mail, or Standard Mail rate'' and ``third- or fourth-class rates'' with ``Standard Mail rates''; in 2.7, replace ``Express Mail, or First-, third-, or fourth-class rate'' with ``Express Mail, First-Class Mail, or Standard Mail rate.''] E216 Publisher Records [Redesignate and revise text of current E216.3.0 as M210; renumber current E216.4.0 and E216.5.0 as E216.3.0 and E216.4.0, respectively; in renumbered 3.1, 3.4, 4.1, and 4.2, replace ``second-class'' with ``Periodicals''; in 1.1, 2.2, [[Page 10125]] and renumbered 3.2 and 3.3, replace ``second-class mail privileges'' with ``Periodicals mailing privileges.''] E217 Authorization for Preferred Rates [In 1.3, 2.1, 2.2, 3.4, 3.5c, and 3.5g, replace ``second-class'' with ``Periodicals''; in 1.2, 2.1, 2.2, replace ``second-class [mail] privileges'' with ``Periodicals mailing privileges''; in 2.1, replace ``First-, third-, or fourth-class rates'' with ``First-Class or Standard Mail rates''; in 2.2, replace ``third- or fourth-class postage'' with ``Standard Mail postage''; in 3.4, replace ``third- or fourth-class rates'' with ``Standard Mail rates.''] [Replace text of current 230 with new E231 and E239 as follows:] E230 Nonautomation Periodicals [Remove E230.1.0 through E230.6.0; insert new E231 as follows:] E231 Nonautomation Regular Periodicals 1.0 General Information 1.1 Standards The standards for presort rates are in addition to the basic standards for Periodicals in E210, the standards for other rates or discounts claimed, and the applicable preparation standards in M210, M810, or M820. Not all combinations of presort level, automation, and destination entry discounts are permitted. 1.2 Palletized Mail A correctly prepared package is the equivalent of a sack when palletized under M045. Individual pieces qualify for the presort level rate appropriate for the palletized package in which they are placed, regardless of the destination of the pallet. Eligibility for destination entry or other zoned rates depends on the point of entry. 1.3 ZIP Code Accuracy Effective October 1, 1996, 5-digit ZIP Codes included in addresses appearing on pieces claimed at the 3/5 or Basic rates must be verified and corrected within 12 months before the mailing date by a USPS- approved method. Mailers must certify that this standard has been met when the corresponding mail is presented to the USPS. This standard applies to each address individually, not to a specific list or mailing. An address meeting this standard may be used in mailings at any other rate to which the standard applies throughout the 12-month period following its most recent update. 2.0 Carrier Route Rates 2.1 Carrier Route Information Subject to A930 and A950, mailers must apply carrier route codes to mailings using CASS-certified software and the current USPS Carrier Route Information System (CRIS) scheme or another AIS product containing carrier route information. Carrier route information must be updated within 90 days before the mailing date. 2.2 Eligibility Preparation to qualify eligible pieces for carrier route rates is optional and is subject to M210. Carrier route sort need not be performed for all carrier routes in a 5-digit area. Specific rate eligibility is subject to these standards: a. The basic carrier route rate applies to pieces in carrier route packages of six or more pieces each that are sorted to carrier route or carrier routes trays (letter-size pieces) or sacks (flat-size pieces). b. The high density and saturation rates apply to pieces that are eligible for the basic carrier route rate, are prepared in carrier walk sequence, and meet the applicable density standards in 5.0 for the rate claimed. 3.0 3/5 Rates Subject to M210, 3/5 rates apply to: a. Letter-size pieces in 5-digit or unique 3-digit packages of six or more pieces each, either placed in 5-digit or unique 3-digit trays containing at least 24 pieces or in an overflow unique 3-digit tray. b. Flat-size pieces in 5-digit or unique 3-digit packages of six or more pieces each, either placed in 5-digit or unique 3-digit sacks or palletized under M045. 4.0 Basic Rates Basic rates apply to pieces prepared under M210 but not eligible for or claimed at either the carrier route or 3/5 rates. 5.0 Walk-Sequence Discounts--Regular Periodicals [Insert text of current E230.7.0 and E230.8.0; redesignate and renumber as E231.5.0 and E231.6.0, respectively; in renumbered 5.4b and 5.4d, replace ``125-piece walk-sequence rate'' with ``high density/125-piece walk-sequence rate''; in renumbered 5.4b, replace the reference ``7.4d'' with ``5.4d'' and the reference ``7.4c'' with ``5.4c''; in renumbered 5.4d, replace the reference ``7.4b'' with ``5.4b''; in renumbered 6.1 and 6.2, replace ``second-class'' with ``Periodicals''; revise other text as follows:] 5.1 Eligibility The 125-piece or saturation walk-sequence rates apply to each walk- sequenced piece in a carrier route mailing, eligible under 2.2 and prepared under M210, that also meets the corresponding addressing and density standards in 5.4. * * * * * E239 Nonautomation Preferred Periodicals 1.0 General Information 1.1 Standards The standards for presort rates are in addition to the basic standards for Periodicals in E210, the standards for other rates or discounts claimed, and the applicable preparation standards in M290 or M890. Not all combinations of presort level, automation, and destination entry discounts are permitted. 1.2 Optional Preparation At the mailer's option, Preferred Periodicals may be prepared under the standards for Regular Periodicals in M210, including presort. Under this option, Preferred Periodicals may claim Level I/K, Level H, or Level G/J rates, and may be combined (comailed) with Regular Periodicals in the same mailing, if all corresponding eligibility standards in E231 for Carrier Route, 3/5, and Basic are met. Presort rate eligibility for the mailing is based on the combined pieces. 1.3 Palletized Mail A correctly prepared package is the equivalent of a sack when palletized under M045. Individual pieces qualify for the presort level rate appropriate for the palletized package in which they are placed, regardless of the destination of the pallet. Eligibility for destination entry or other zoned rates depends on the point of entry. 1.4 Reporting Presort Level Publishers must separately report copies at Levels H3 and H5, and Levels J1, J3, and J5, only when claiming a ZIP+4 or ZIP+4 Barcoded rate. 2.0 Carrier Route (Level I/K) Rates 2.1 Rate Application Level I/K rates apply as follows: a. Level I1 or K1 rates apply to pieces in carrier route packages of six or more pieces each that are sorted to carrier route or carrier routes trays or sacks. b. Level I2 or K2 rates apply to pieces eligible for the Level I1 or K1 rates that are further prepared in carrier delivery walk sequence and in the density [[Page 10126]] necessary to meet the additional standards in 6.0 for the 125-piece walk-sequence rate. c. Level I3 or K3 rates apply to pieces eligible for the Level I1 or K1 rates that are further prepared in carrier delivery walk sequence and in the density necessary to meet the additional standards in 6.0 for the saturation walk-sequence rate. 2.2 Carrier Route Information Mailers must apply carrier route codes to mailings by using the current USPS Carrier Route Information System (CRIS) scheme or another AIS product containing carrier route information (see A930). Carrier route information must be updated within 90 days before the mailing date. 3.0 3- and 5-Digit (Level H) Rates 3.1 H Rates Level H rates apply to pieces in 5-digit, optional city, and unique 3-digit packages of six or more pieces each that are sorted to 5-digit, optional city, or unique 3-digit sacks. 3.2 H5 Rates Level H5 rates apply: a. In tray-based automation rate letter-size mailings, to pieces in 5-digit trays. b. In package-based automation rate letter-size mailings, to pieces in 5-digit packages of 10 or more pieces each placed in 5-digit, optional city, 3-digit, SCF, or AADC trays. c. In ZIP+4 Barcoded rate flat-size mailings, to pieces in 5-digit packages of six or more pieces each placed in 5-digit, optional city, 3-digit, SCF, or ADC sacks or palletized under M045. d. In other mailings, to pieces in 5-digit packages of six or more pieces each placed in 5-digit, optional city, or unique 3-digit sacks. 3.3 H3 Rates Level H3 rates apply: a. In tray-based automation rate letter-size mailings, to pieces in optional city and unique 3-digit trays. b. In package-based automation rate letter-size mailings, to pieces in optional city and unique 3-digit packages of 50 or more pieces each placed in optional city, 3-digit, SCF, or AADC trays. c. In ZIP+4 Barcoded rate flat-size mailings, to pieces in optional city and unique 3-digit packages of six or more pieces each placed in optional city, 3-digit, SCF, or ADC sacks or palletized under M045. d. In other mailings, to pieces in optional city or unique 3-digit packages of six or more pieces each placed in optional city or unique 3-digit sacks. 4.0 Basic (Level G) Rates Level G rates apply to pieces not eligible for or claimed at the rates in 2.0 or 3.0. 5.0 In-County (Level J) Rates [Insert text of current E230.5.0 and redesignate as E239.5.0; in 5.2c and 5.3c, replace ``SDC'' with ``ADC.''] 6.0 Walk-Sequence Discounts [Insert text of current E230.7.0 and redesignate and renumber as E239.6.0; in renumbered 6.1, replace the references ``M203 and M204'' and ``7.4'' with ``M290'' and ``6.4,'' respectively; in renumbered 6.4b and 6.4d, replace ``125-piece walk-sequence rate'' with ``high density/ 125-piece walk-sequence rate''; in renumbered 6.4b, replace the reference ``7.4d'' with ``6.4d''; in renumbered 6.4d, replace the reference ``7.4b'' with ``6.4b''; no other change to text.] E240 Automation Periodicals Rates [Insert new E241 as follows:] E241 Automation Regular Periodicals 1.0 BASIC STANDARDS 1.1 All Pieces All pieces in a automation Regular Periodicals mailing must: a. Meet the basic standards for Periodicals and for the category of authorization in E211 and E212, respectively. b. Be in the same processing category and meet the applicable physical standards in C810 or C820. (Automation rate mailings may not include firm packages.) c. Bear a delivery address that includes the correct ZIP Code or ZIP+4 code (or, only if prepared with a delivery point barcode (DPBC), the numeric equivalent to the DPBC). d. Meet the address quality and coding standards of A800 and A950. e. Be sorted and documented as specified in M810 or M820, as applicable. f. Meet the applicable documentation and postage payment standards in P012, P013, and P200. g. Bear an accurate barcode meeting the standards in C840, either a DPBC (if a letter) or a ZIP+4 barcode or DPBC (if a flat), either on the piece or on an insert showing through a barcode window. 1.2 Enclosed Reply Cards and Envelopes Effective January 1, 1997, all courtesy reply and business reply mail (BRM) cards and letter-size envelopes provided as enclosures in automation rate Regular Periodicals must meet the standards in C810 for enclosed cards and envelopes. Mailers must certify that this standard has been met when the corresponding mail is presented to the USPS. 2.0 Rate Application 2.1 Letters Automation rates apply to each letter-size piece that is sorted under M810 into the corresponding qualifying groups: a. Groups of 150 or more pieces in 5-digit or unique 3-digit trays qualify for the 3/5 automation rate. Pieces for unique 3-digit destinations do not qualify for the 3/5 automation rate if placed in 3- digit scheme trays with pieces for nonunique 3-digit destinations. b. Groups of 150 or more pieces in other 3-digit, 3-digit scheme, AADC, or mixed AADC trays qualify for the Basic automation rate. 2.2 Flats Automation rates apply to each flat-size piece that is sorted under M820 into the corresponding qualifying groups: a. Pieces in 5-digit or unique 3-digit packages of 6 or more pieces each qualify for the 3/5 automation rate. b. Pieces in other 3-digit, ADC, or mixed ADC packages qualify for the Basic automation rate. E249 Automation Preferred Periodicals [Insert text of current E242, E244, and E245 and redesignate and renumber as E249.1.0, E249.2.0, and E249.3.0, respectively, with subsections redesignated accordingly; no change in text except to replace ``second-class [mail]'' with ``Periodicals.''] 1.0 Zip+4 Discounts 1.1 All Pieces All pieces in a Preferred Periodicals ZIP+4 rate mailing must: a. Meet the basic standards for Periodicals and for the category of authorization in E211 and E212, respectively. b. Meet the physical standards in C810. c. Bear a delivery address that includes the correct ZIP Code or ZIP+4 code (or, only if prepared with a delivery point barcode (DPBC), the numeric equivalent to the DPBC). d. Meet the address quality and coding standards of A800 and A950. e. Meet the standards in C830 or, for pieces with the correct DPBC, the barcode standards in C840. f. Be sorted and documented as specified in M891 or M892. [[Page 10127]] g. Meet the postage payment standards in P013 and P200. 1.2 Rate Application ZIP+4 rates apply to each piece that also: a. Is sorted under M810 into the qualifying groups described in 1.7 and 1.8. b. Bears a delivery address with the correct numeric ZIP+4 code or bears the correct DPBC. 1.3 Barcode Window A mailpiece meeting the standards in 1.1 and 1.2, but with a barcode window in the lower right corner, is ineligible for any automation rate unless the correct DPBC appears through that window. 1.4 5-Digit Barcodes ZIP+4 rate mailings may include pieces with correct 5-digit barcodes if those pieces meet the standards in 1.1 and 1.2 and the standards for 5-digit barcodes in C840. Such pieces qualify for ZIP+4 rates only if the barcode is printed on the piece and the address contains the correct numeric ZIP+4 code. 1.5 ZIP+4 Barcodes ZIP+4 rate mailings may include pieces with correct ZIP+4 barcodes if the barcode is located in the address block and those pieces meet the standards in 1.1 and 1.2 and the standards for ZIP+4 barcodes in C840. Such pieces qualify for ZIP+4 rates only if, additionally, the address contains the correct numeric ZIP+4 code. Pieces that bear a ZIP+4 barcode in the lower right corner may not be included in a ZIP+4 rate mailing. 1.6 85% Rule At least 85% of all pieces in a ZIP+4 rate mailing (regardless of presort level or rate) must bear the correct numeric ZIP+4 code or DPBC for the delivery address, as defined by the standards for address quality and coding accuracy in A800 and A950. The 85% requirement applies to each mailing unless excepted by other standards. 1.7 Qualifying Tray-Based Presort In tray-based mailings under M891: a. In full or overflow 5-digit trays, ZIP+4 coded or DPBC pieces qualify for the Level H5/J5 ZIP+4 rates; other pieces qualify for the Level H5/J5 rates. b. In full or overflow optional city and unique 3-digit trays, ZIP+4 coded or DPBC pieces qualify for the Level H3/J3 ZIP+4 rates; other pieces qualify for the Level H3/J3 rates. c. In full or overflow nonunique 3-digit and SCF trays, ZIP+4 coded or DPBC pieces qualify for the Level G/J1 ZIP+4 rates; other pieces qualify for the Level G/J1 rates. One less-than-full SCF tray is permitted for the SCF serving the post office where the mailing is entered. d. In AADC, mixed AADC, and working trays, ZIP+4 coded or DPBC pieces qualify for the Level G/J1 ZIP+4 rates; other pieces qualify for the Level G/J1 rates. 1.8 Qualifying Package-Based Presort In package-based mailings under M892: a. In 5-digit packages of 10 or more pieces each, ZIP+4 coded or DPBC pieces qualify for the Level H5/J5 ZIP+4 rates; other pieces qualify for the Level H5/J5 rates. b. In optional city and unique 3-digit packages of 50 or more pieces each, ZIP+4 coded or DPBC pieces qualify for the Level H3/J3 ZIP+4 rates; other pieces qualify for the Level H3/J3 rates. c. In nonunique 3-digit packages of 50 or more pieces each, ZIP+4 coded or DPBC pieces qualify for the Level G/J1 ZIP+4 rates; other pieces qualify for the Level G/J1 rates. d. In the residual portion of the mailing, ZIP+4 coded or DPBC pieces qualify for the Level G/J1 ZIP+4 rates; other pieces qualify for the Level G/J1 rates. 2.0 Barcoded Discounts (Letter-Size Pieces) 2.1 All Pieces All pieces in a Barcoded rate letter-size mailing must: a. Meet the basic standards for Periodicals and for the category of authorization in E211 and E212, respectively. b. Meet the physical standards in C810. c. Bear a delivery address that includes the correct ZIP Code or ZIP+4 code (or, only if prepared with a delivery point barcode (DPBC), the numeric equivalent to the DPBC). d. Meet the address quality and coding standards of A800 and A950. e. Either bear the correct DPBC meeting the barcode standards in C840 or meet the applicable standards in 2.5. f. Be sorted and documented as specified in M893, M894, or M895. g. Meet the postage payment standards in P013 and P200. 2.2 Rate Application Barcoded rates apply to each piece that also: a. Is sorted under M893, M894, or M895 into the qualifying groups described in 2.8, 2.9, and 2.10. b. Bears the correct DPBC that meets the barcode standards in C840. c. Meets the applicable standards in 2.4 through 2.7. 2.3 Optional Preparation At the mailer's option, barcoded Preferred Periodicals may be prepared under the standards for Regular Periodicals in M810, including presort. Under this option, Preferred Periodicals may claim Level H or Level G/J rates and may be combined (comailed) with Regular Periodicals in the same mailing, if all corresponding eligibility standards in E231 and E241 for 3/5 and Basic rate are met. Presort rate eligibility for the mailing is based on the combined pieces. 2.4 Barcode Window A mailpiece with a barcode window in the lower right corner is ineligible for an automation rate unless the correct DPBC appears through that window. 2.5 Pieces Without DPBCs Subject to 1.5 and 1.6, Barcoded rate mailings may include nonbarcoded, 5-digit barcoded, or ZIP+4 barcoded pieces if each such piece (regardless of rate) meets the standards in 2.1, has a barcode clear zone in the lower right corner meeting the reflectance standards in C840 and, if applicable, meets the applicable 5-digit or ZIP+4 barcode standards in C840. Additionally, to qualify for a ZIP+4 rate, subject to 2.8, 2.9, and 2.10: a. Nonbarcoded and 5-digit barcoded pieces must bear an address with the correct ZIP+4 code, meet the standards in C830, and not have a window in the lower right corner. b. ZIP+4 barcoded pieces must have the barcode in the address block, meet the standards in C830, bear an address with the correct ZIP+4 code, and not have a window in the lower right corner. 2.6 85% Rule Subject to 2.7, at least 85% of all pieces in a Barcoded rate mailing (regardless of presort level or rate) must bear the correct DPBC for the delivery address, as defined by the standards for address quality and coding accuracy in A800 and A950. The 85% requirement applies to each mailing unless excepted by other standards. 2.7 100% Barcoding Each piece must bear the correct delivery point barcode: a. In 5-digit trays in a tray-based mailing under M893. b. In 5-digit packages in a package-based mailing under M894 or M895. c. In any mailing containing heavy letters (as defined in C810). [[Page 10128]] 2.8 Qualifying Tray-Based Presort In tray-based mailings under M893: a. Pieces in full or overflow 5-digit trays qualify for the Level H5/J5 Barcoded rates. b. In full or overflow optional city and unique 3-digit trays, DPBC pieces qualify for the Level H3/J3 Barcoded rates; subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for the Level H3/J3 ZIP+4 rate; other pieces qualify for the Level H3/J3 rates. c. In full or overflow nonunique 3-digit and SCF trays, DPBC pieces qualify for the Level G/J1 Barcoded rates; subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for the Level G/J1 ZIP+4 rates; other pieces qualify for the Level G/J1 rates. One less-than-full SCF tray is permitted for the SCF serving the post office where the mailing is entered. d. In AADC, mixed AADC, and working trays, DPBC pieces qualify for the Level G/J1 Barcoded rates; subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for the Level G/J1 ZIP+4 rates; other pieces qualify for the Level G/J1 rates. 2.9 Qualifying Two-Tier Package-Based Presort In two-tier package-based mailings under M894: a. Pieces in 5-digit packages of 10 or more pieces each qualify for the Level H5/J5 Barcoded rates. b. In optional city and unique 3-digit packages of 50 or more pieces each, DPBC pieces qualify for the Level H3/J3 Barcoded rates; subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for the Level H3/J3 ZIP+4 rates; other pieces qualify for the Level H3/J3 rates. c. In nonunique 3-digit packages of 50 or more pieces each, DPBC pieces qualify for the Level G/J1 Barcoded rates; subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for the Level G/J1 ZIP+4 rates; other pieces qualify for the Level G/J1 rates. d. In residual trays, DPBC pieces qualify for the Level G/J1 Barcoded rates; subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for the Level G/J1 ZIP+4 rates; other pieces qualify for the Level G/J1 rates. 2.10 Qualifying Three-Tier Package-Based Presort In three-tier package-based mailings under M895: a. Pieces in 5-digit packages of 10 or more pieces each in the 5- digit tier qualify for the Level H5/J5 Barcoded rates. b. In optional city and unique 3-digit packages of 50 or more pieces each in the 3-digit tier, DPBC pieces qualify for the Level H3/ J3 Barcoded rates; subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for the Level H3/J3 ZIP+4 rates; other pieces qualify for the Level H3/ J3 rates. c. In nonunique 3-digit packages of 50 or more pieces each in the 3-digit tier, DPBC pieces qualify for the Level G/J1 Barcoded rates; subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for the Level G/J1 ZIP+4 rates; other pieces qualify for the Level G/J1 rates. d. In the residual tier, DPBC pieces qualify for the Level G/J1 Barcoded rates; subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for the Level G/J1 ZIP+4 rates; other pieces qualify for the Level G/J1 rates. 3.0 Barcoded Discounts (Flat-Size Pieces) 3.1 All Pieces All pieces in a Barcoded rate flat-size mailing must: a. Meet the basic standards for Periodicals and for the category of authorization in E211 and E212, respectively. b. Meet the physical standards in C820. c. Bear a delivery address that includes the correct ZIP Code or ZIP+4 code. d. Meet the address quality and coding standards of A800 and A950. e. Bear the correct 5-digit barcode, ZIP+4 barcode, or DPBC, meeting the barcode standards in C840, except for pieces in specific portions of mailings prepared under M897. f. Be sorted and documented as specified in M897. g. Meet the postage payment standards in P013 and P200. 3.2 Rate Application Barcoded rates apply to each piece that also: a. Is sorted under M897 into the qualifying groups described in 3.6. b. Bears the correct ZIP+4 barcode or DPBC. c. Meets the applicable standards in 3.3 through 3.5. 3.3 Optional Preparation At the mailer's option, barcoded Preferred Periodicals may be prepared under the standards for Regular Periodicals in M820, including presort. Under this option, Preferred Periodicals may claim Level H or Level G/J rates and may be combined (comailed) with Regular Periodicals in the same mailing, if all corresponding eligibility standards in E231 and E241 for 3/5 and Basic rates are met. Presort rate eligibility for the mailing is based on the combined pieces. 3.4 5-Digit Barcodes Barcoded rate mailings may include pieces with correct 5-digit barcodes if those pieces meet the standards in 3.1, 3.2, 3.3, and 3.5 and the standards for 5-digit barcodes in C840. Pieces with a 5-digit barcode could be eligible for a presort rate under 3.6. 3.5 85% Rule At least 85% of all pieces in a Barcoded rate mailing (regardless of presort level or rate) must bear the correct ZIP+4 barcode or DPBC for the delivery address, as defined by the standards for address quality and coding accuracy in A800 and A950. The 85% requirement applies to each mailing unless excepted by other standards. Barcoded rate mailings not meeting the 85% rule must be prepared under corresponding standards in M897. 3.6 Qualifying Presort Barcoded and presort rates apply as follows: a. In 5-digit packages of six or more pieces each, ZIP+4 barcoded or DPBC pieces qualify for the Level H5/J5 Barcoded rates; 5-digit barcoded pieces (and nonbarcoded pieces where permitted) qualify for the Level H5/J5 rates. b. In optional city or unique 3-digit packages of six or more pieces each, ZIP+4 barcoded or DPBC pieces qualify for the Level H3/J3 Barcoded rates; 5-digit barcoded pieces qualify for the Level H3/J3 rates. c. In nonunique 3-digit and SCF packages, or in 5-digit, optional city, or unique 3-digit packages of fewer than six pieces, or in residual packages, ZIP+4 barcoded or DPBC pieces qualify for the Level G/J1 Barcoded rates; 5-digit barcoded pieces qualify for the Level G/J1 rates. [Revise E250 as follows:] E250 Destination Entry 1.0 DSCF 1.1 Eligibility Copies not eligible for in-county rates qualify for the destination SCF (DSCF) rates if the copies are addressed for delivery in the same SCF service area as the entry post office, regardless of the type of package, pallet, sack, or tray in which they are prepared. 1.2 Rates DSCF rates include a pound rate and a discount per piece. Pieces claimed at DSCF rates must also meet the standards for any discount or rate claimed and postage payment method used. [[Page 10129]] 1.3 Authorized Entry Publications must have an authorized entry at each post office where mail is entered at DSCF rates. Only copies entered according to the distribution plan authorized for that entry may be claimed at these rates. DSCF rate mail must be deposited at locations and times specified by the entry office postmaster. 1.4 Documentation Subject to P012, the publisher must be able to show compliance with 1.1 through 1.3, e.g., by package, bundle, sack, tray, or pallet destination (as appropriate), and the number of pieces by presort level for each 5-digit ZIP Code destination eligible for DSCF rates. 2.0 DDU 2.1 Eligibility The destination delivery unit (DDU) rate applies to pieces entered at the facility where the carrier cases mail for the carrier route serving the delivery address on the mailpiece. Copies claimed at DDU rates must be part of a carrier route package placed in a carrier route or 5-digit carrier routes sack or tray under M210, or palletized under M045, and otherwise eligible for and claimed at a carrier route or Level I or K rate. Except for the standards applicable to preparing carrier route or walk-sequence rate mail, there is no additional minimum volume required for a DDU rate mailing. 2.2 Rates DDU rates include a pound rate and a discount per piece. Pieces claimed at DDU rates must also meet the standards for any discount or rate claimed and postage payment method used. A mailing may contain copies claimed at DDU rates and other copies claimed at other rates if permitted by standard. No separation by rate is required. 2.3 Maximum Volume Except under 2.4, the same mailer may not present for verification and acceptance more than four DDU rate mailings at the same destination postal facility (or another acting as its agent) in any 24-hour period. This limit may be waived if local conditions permit. A mailer may ask for such a waiver when scheduling deposit of the mailings. There is no maximum for plant-verified drop shipments. This standard does not apply to mailings presented to either the publication's authorized original entry post office or an authorized additional entry serving the place where the copies were prepared for mailing, if that entry post office is the destination postal facility at which the DDU rate copies must be deposited. 2.4 Authorized Entry Publications must have an authorized entry at each post office where mail is entered at DDU rates. Only copies entered according to the distribution plan authorized for that entry may be claimed at these rates. DDU rate mail must be deposited at locations and times specified by the entry office postmaster. 2.5 Scheduling Mailers may schedule deposit of DDU rate mailings at least 24 hours in advance by contacting the district office in whose service area the destination facility is located. Mailers must follow the scheduled deposit time provided. Mailers may request standing appointments for renewable 6-month periods by written application to the district office in whose service area the destination facility is located. Mixed loads of Periodicals and Standard Mail require advance appointments for deposit. 2.6 Documentation Subject to P012, the publisher must be able to show compliance with 2.1 through 2.5. If a carrier route or walk-sequence rate is claimed, the publisher must provide the documentation required by the corresponding standards. E270 Preferred Rates [In 1.1, 1.2c, 2.1, 5.1, 6.1, and 6.2, replace ``second-class'' with ``Periodicals''; in 1.3, replace ``second-class mailing privileges'' with ``Periodicals mailing privileges.''] [Revise the heading of 1.0 as follows:] 1.0 In-County * * * * * 1.6 DDU Rate Subject to E250, the DDU piece rate applies to each piece claimed in the pound rate portion at the DDU rate. [Revise the heading of 2.0 as follows:] 2.0 Nonprofit--Basic Information * * * * * 2.4 Destination Entry Rates Subject to E250, the DDU or DSCF piece rate applies to each piece claimed in the pound rate portion at the corresponding rate. [Remove current 2.5.] [Revise the heading of 3.0 as follows:] 3.0 Nonprofit--Publications of Qualified Nonprofit Organizations * * * * * [Revise the heading of 4.0 as follows:] 4.0 Nonprofit--Publications of Other Qualified Organizations * * * * * [Revise the heading of 5.0 as follows:] 5.0 Classroom * * * * * 5.5 Destination Entry Rates Subject to E250, the DDU or DSCF piece rate applies to each piece claimed in the pound rate portion at the corresponding rate. [Remove current 5.6.] [Revise the heading of 6.0 as follows:] 6.0 Science-of-Agriculture * * * * * 6.5 Destination Entry Rates Subject to E250, the DDU or DSCF piece rate applies to each piece claimed in the pound rate portion at the corresponding rate. [Remove current 6.6.] [Remove current E300 and E400; no change to E500.] * * * * * [Insert new E600 as follows:] E600 Standard Mail E610 Basic Standards [Insert new E611, based on current E311 and E411, as follows:] E611 Standards Applicable to All Standard Mail 1.0 General Information 1.1 Definition Standard Mail consists of mailable matter that is neither mailed or required to be mailed as First-Class Mail nor entered as Periodicals mail (unless permitted or required by standard). Standard Mail includes matter formerly classified as third-class mail and as fourth-class mail. Though combined in Standard Mail, matter from each former class is subject to separate and specific classification, eligibility, and preparation standards. Matter formerly classified as third-class mail is referred to as Standard Mail (A); matter formerly classified as fourth-class mail is referred to as Standard Mail (B). The unmodified term Standard Mail applies to both former third-class and former fourth-class matter. 1.2 Not Sealed Standard Mail is not sealed against postal inspection. Regardless of physical [[Page 10130]] closure, the mailing of articles at Standard Mail rates is consent by the mailer to postal inspection of the contents. 1.3 Written Additions Markings that have the character of personal correspondence require, with certain exceptions, additional postage at the First-Class rates. The following written additions and enclosures do not require additional First-Class postage and may be placed on the wrapper, on a tag or label attached to the outside of a parcel, or inside a parcel (either loose or attached to an article): a. The sender's and the addressee's names, occupations, and addresses, preceded by ``From'' or ``To,'' and directions for handling. b. Marks, numbers, names, or letters describing the contents. c. Words or phrases such as ``Do Not Open Until Christmas,'' ``Happy Birthday, Mother,'' etc. d. Instructions and directions for the use of the item mailed. e. A manuscript dedication or inscription not having the nature of personal correspondence. f. Marks to call attention to words or passages in the text. g. Corrections of typographical errors in printed matter. h. Manuscripts accompanying related proof sheets and corrections of proof sheets including corrections of typographical and other errors, changes in the text, insertions of new text, marginal instructions to the printer, and corrective rewrites of parts. i. Handstamped imprints, unless the added material is in itself personal or converts the original matter to a personal communication. j. Matter mailable separately as Standard Mail (A) printed on the wrapper, envelope, tag, or label. 1.4 Invoice An invoice, whether or not it also serves as a bill, may be enclosed or placed in an envelope (marked ``Invoice Enclosed'') attached to the outside of a Standard Mail mailpiece if the invoice relates solely to the matter with which it is mailed. The invoice may show this information: a. Names and addresses of the sender and addressee. b. Names and quantities of the articles enclosed, descriptions of each (e.g., price, tax, style, stock number, size, and quality, and, if defective, nature of defects). c. Order or file number, date of order, date and manner of shipment, shipping weight, postage paid, and initials or name of packer or checker. 1.5 Incidental First-Class Attachments and Enclosures Incidental First-Class matter may be enclosed in or attached to Standard Mail (A) merchandise (including books but excluding merchandise samples) or any Standard Mail (B) mailpiece without payment of First-Class postage. An incidental First-Class attachment or enclosure must be matter that, if mailed separately, would require First-Class postage, is closely associated with but secondary to the host piece, and is prepared not to encumber postal processing. An incidental First-Class attachment or enclosure may be a bill for the product or publication, a statement of account for past products or publications, or a personal message or greeting included with a product, publication, or parcel. Postage at the Standard Mail rate applicable to the host piece is based on the combined weight of the host piece and the incidental First-Class attachment or enclosure. 1.6 Address Correction The fee for manual or automated address correction service is charged per notice issued. 1.7 Addressing Each piece of Standard Mail must bear a delivery address. Alternative address formats or detached address labels may be used, subject to A040 or A060, respectively. 1.8 Documentation A postage statement, completed and signed by the mailer, using the correct USPS form or an approved facsimile, must be submitted with each mailing except for single-piece rate mailings in which the correct postage is affixed to each piece. Supporting documentation might be required by the standards for the rate claimed or postage payment method used. [Insert new E612, based on current E311 and E312, as follows:] E612 Additional Standards Applicable to Standard Mail (A) 1.0 Weight Standard Mail (A) must weigh less than 16 ounces. 2.0 Content 2.1 Circulars Circulars, including printed form letters that, according to internal evidence, are sent in identical terms to more than one person are Standard Mail (A). A circular does not lose its character as such if a date and the individual names of the addressee and sender are printed therein or handwritten corrections of typographical errors are made on the circular. 2.2 Printed Matter Printed matter weighing less than 16 ounces may be sent as Standard Mail (A). For this standard, printed matter means paper on which words, letters, characters, figures, or images (or any combination of them), not having the character of a bill or statement of account or of actual or personal correspondence, are reproduced by any process other than handwriting or typewriting. 2.3 Computer-Prepared Material Computer-prepared material is considered printed matter. Such material is not considered to have the character of actual or personal correspondence merely because it contains: a. Specific information about a product offered for sale or lease (e.g., size, color, price) or a service being offered (e.g., the name, address, and telephone number of a company representative). b. Information relating the addressee directly to an advertised product or service. c. Information such as the amount paid for a previous purchase, pledge, or donation, when associated with a sales promotion or solicitation for donations. 3.0 Enclosures and Attachments 3.1 Nonincidental First-Class Enclosures Letters or other pieces of nonincidental First-Class Mail, subject to postage at First-Class rates, may be enclosed with Standard Mail (A). Postage for the First-Class enclosure must be placed on the outside of the mailpiece. It may be affixed separately or added to the postage for the host piece. The endorsement ``First-Class Mail Enclosed'' must be placed on the mailpiece, below the postage and above the address. 3.2 Nonincidental First-Class Attachments Letters or other pieces of nonincidental First-Class Mail may be placed in an envelope and securely attached to the address side of a Standard Mail (A) mailpiece or of the principal mailpiece, as applicable. Combination envelopes or containers with separate parts for the two classes of mail may be used. The names and addresses of the sender and addressee must be placed on both the principal mailpiece and the attachment. [[Page 10131]] Alternatively, the sender's name and address must be placed on one part and the addressee's name and address on the other. If the mailpiece is a combination container with inseparable parts or compartments, the names and addresses may appear on only one part. The applicable Standard Mail (A) postage for the Standard Mail (A) matter must be prepaid and placed in the upper right corner of the address space. Postage at the applicable First-Class rate must be paid for and affixed to the First-Class attachment, unless other payment methods are permitted by standard. 3.3 Attachment of Other Standard Mail (A) Matter The front cover page or the back cover page of a Standard Mail (A) mailpiece may bear an attachment that is other Standard Mail (A) matter if: a. Each piece in the mailing bears the same attachment. b. The material qualifies for and is mailed at bulk rates. c. The pieces bearing the attachment are larger than 6 by 11 inches. d. The attachment is secured so as not to interfere with processing or delivery. Folded or multipage attachments must be secured to prevent opening during handling. e. The mailing is sorted to carrier routes. 3.4 Protective Covers A protective cover (outsert) on a catalog or book must fully cover (to within 3/4 inch of each edge) the main body of the catalog or book, front and back, or the entire piece must be enclosed in a wrapper (a full sleeve or envelope). 4.0 Bulk Rates 4.1 General Information Bulk rates apply to mailings meeting the basic standards in E611 and the corresponding standards for presort, automation, and destination entry in E630, E640, and E650, as appropriate for the rate claimed. Nonprofit rates may be used only by organizations authorized by the USPS under E670. Bulk rate Standard Mail (A) may not use certified, collect on delivery (COD), insurance, registry, return receipt for merchandise, special delivery, and special handling services. Not all processing categories qualify for every bulk rate. 4.2 Minimum Per Piece Rates The minimum per piece rates (i.e., the minimum postage that must be paid for each piece) apply to Enhanced Carrier Route rate pieces weighing 0.2066 pound (rounded, or 3.3062 ounces, rounded) or less, Regular nonautomation and automation rate pieces weighing 0.2068 pound (rounded, or 3.3087 ounces, rounded) or less, and Nonprofit nonautomation and automation rate pieces weighing 0.2149 pound (rounded, or 3.4383 ounces, rounded) or less. The base postage rate applies to pieces meeting minimum preparation standards (e.g., Basicrate) and may be reduced if additional standards are met. For the minimum per piece rates, mail is categorized as either ``letters'' or ``other than letters'' based on the letter-size standard in C050 that disregards address placement, except that, for automation rates, mail may be assigned to the ``other than letters'' category based on the standards in C820. Address placement is also used to apply the aspect ratio standard for letter-size automation rates in C810. 4.3 Piece/Pound Rates Pieces exceeding the weight limits specified in 4.2 are subject to a two-part piece/pound rate that includes a fixed charge per piece and a variable pound charge based on weight. The base postage rate applies to pieces meeting the minimum preparation standards (e.g., basic nonautomation presort). Discounts are available subject to the corresponding standards. 4.4 Net Postage The net postage rate that must be paid is either the minimum per piece rate or the piece/pound rate, as reduced in either case by any discounts for which the piece is eligible. The net postage rate is commonly designated by the name of the primary discount (e.g., carrier route rate, automation rate, DBMC rate). 4.5 Minimum Rate Per Piece Postage is computed at the applicable rates on the entire bulk mailing to be mailed at one time. Subject to 4.6, the total postage paid on any bulk mailing may not be lower than the amount determined by multiplying the proper minimum per piece rate (less applicable discounts) by the total number of mailpieces. If the total postage computed at pound rates, after any adjustment for presort level, is less than the minimum postage charge, postage must be computed at the minimum per piece rate. 4.6 Exception When the postage computed at the bulk Standard Mail (A) rates is higher than a Standard Mail (B) rate for which the matter and the mailing could qualify except for its weight, the Standard Mail (B) rate may be paid without adding needless weight. All other standards for bulk Standard Mail (A) apply. 4.7 Annual Fees Bulk rate Standard Mail (A) is subject to an annual fee once each 12-month period. The fee may be paid in advance only for the next year and only during the last 30 days of the current service period. The fee charged is that in effect on the date of payment. Additional standards apply, based on how postage is paid: a. When mailings are paid with meter or precanceled stamps, each mailer who enters mailings at the Regular, Enhanced Carrier Route, or Nonprofit rates must pay an annual bulk mailing fee at each post office of mailing. Persons or organizations paying this fee may enter mail of their clients as well as their own mail. b. When a mailing is paid with a permit imprint, the mailer whose permit imprint is on the mailpiece must put that permit number on the postage statement and must pay the annual bulk mailing fee for that permit. This fee is in addition to the fee that must be paid when applying to use permit imprints. 4.8 Merging Mailings are subject to the general definition and conditions in M011. Generally, mailers may merge similar bulk Standard Mail (A) matter into a single mailing. Differences in text, address labels, and address lists or list key numbers do not prohibit the mailer from merging and sorting pieces together. Pieces with different methods of postage payment may be combined in the same mailing only if authorized by the RCSC. Pieces of nonidentical weight, if merged in the same mailing, must bear the correct postage when mailed, unless otherwise authorized by the RCSC. 4.9 Preparation Each Nonprofit, Regular, or Enhanced Carrier Route rate mailing must be prepared under these general standards: a. All pieces in a mailing must be of the same processing category, except that irregular and machinable parcels may be commingled in 5- digit sacks or on 5-digit pallets. b. Each mailing must contain at least 200 pieces or 50 pounds of pieces. Other volume standards can also apply, based on the rate claimed. c. The same mailing may not contain both automation and nonautomation rate pieces except as allowed under E649. c. All pieces in a bulk mailing must be sorted together and marked under the standards applicable to the rate claimed. d. Each piece must bear the addressee's name and delivery address, [[Page 10132]] including the correct ZIP Code or ZIP+4 code, unless an alternative address format is used subject to A040. Pieces in automation rate mailings, upgradable nonautomation rate pieces, or pieces prepared with detached address labels, are subject to additional standards. e. Postage must be paid under the standards in P600 with precanceled stamps, postage meter, or permit imprint. f. Mailings must be documented under P012 and the standards for the rate claimed. g. Each piece must meet the standards applicable to any other rate or discount claimed. h. Any POSTNET barcode on a mailpiece must be the correct barcode for the delivery address and meet the standards in C840 and A950. i. Mailings must be deposited at a business mail entry unit of the post office where the postage permit or license is held and the annual bulk fee paid, unless deposit elsewhere is permitted by standard. [Insert new E613, based on current E411, as follows:] E613 Additional Standards Applicable to Standard Mail (B) 1.0 Weight Standard Mail (B) consists of mailable matter that (except Special Standard Mail and Library Mail) weighs 16 ounces or more. 2.0 Zoned Rates 2.1 Required Mailing Office Zoned Standard Mail (i.e., parcel post and bound printed matter) must be mailed at the post office from which the zone rate postage was computed, except under 2.2 and 2.3. 2.2 Redirected Mailings Mailers who present large mailings of zoned Standard Mail may be allowed or directed to deposit such mailings at another postal facility when processing or logistics make such an alternative desirable for the USPS, subject to these conditions: a. Zoned postage need not be recomputed if both the original post office of mailing and the alternative facility use the same zone chart for computing zoned postage, based on the 3-digit prefix of their ZIP Codes. b. Postage must be recomputed on pieces in mailings redirected to a postal facility that uses a different zone chart for computing zoned postage. c. Postage for pieces claimed at the local zone rates must be recomputed at the applicable zone rate for the alternative postal facility. Postage may also be recomputed for other pieces that are ineligible for the local zone rates but that could become eligible at the postal facility to which the mailing is redirected. 2.3 BMC Acceptance Mailers may present zoned Standard Mail at a BMC for acceptance if: a. Metered postage is paid through a postage meter licensed at the BMC parent post office, or permit imprint postage is paid through an advance deposit account at the BMC parent post office or another post office in the BMC service area, unless otherwise permitted by standard. b. Zoned postage is computed from the BMC parent post office. c. The BMC is authorized by Form 4410 to act as acceptance agent for the entry post office. 3.0 Addressing All Standard Mail (B) must bear the sender's return address and, except for single-piece rate parcel post, the delivery address on each piece must include the correct ZIP Code or ZIP+4 code. E620 Nonautomation Nonpresort Standard Mail Rates [Insert text of current E320 and redesignate as E621; revise as follows:] E621 Single-Piece Standard Mail (A) 1.0 Single-Piece Rate 1.1 Rate Application Single-piece rate Standard Mail (A) is Standard Mail (A) matter not prepared as required for a bulk rate. The single-piece rates are applied to each piece (or each item mailed under 1.2) based on its weight. If the computed single-piece Standard Mail (A) rate is higher than any Standard Mail (B) rate for which the mail could qualify except for weight, the lower Standard Mail (B) rate may be paid; all other standards for single-piece Standard Mail (A) apply. 1.2 Keys and Identification Devices Keys and identification devices (identification cards or uncovered identification tags) may be mailed as single-piece Standard Mail (A) if they bear, contain, or have securely attached instructions to return to a name and complete address of a person, organization, or concern and a statement guaranteeing postage payment on delivery. 1.3 Nonstandard Surcharge Single-piece rate Standard Mail (A) (except keys and identification devices) is subject to a nonstandard surcharge if it weighs 1 ounce or less and meets the definition of nonstandard mail in C600. 1.4 Preparation Keys and identification devices must be prepared under 1.2. All other single-piece rate Standard Mail (A) pieces must have a delivery address and the endorsement ``Standard Mail.'' No minimum quantity is required unless postage is paid with a permit imprint (in which case the mailing must contain 200 pieces or 50 pounds of pieces). There are no sortation standards, but five or more metered letter-size pieces and any permit imprint pieces must be ``faced'' (so that the addresses face in one direction) and bundled, boxed, or packaged. 1.5 Postage Payment and Documentation Except for keys and identification devices, full postage must be affixed in adhesive stamps, precanceled stamps, or meter postage or paid with permit imprint. Documentation of postage and a postage statement are required if postage is paid with a permit imprint or if the correct postage is not affixed to each piece in the mailing. 1.6 Place of Mailing Pieces paid with adhesive stamps may be deposited in collection boxes or other places where mail is accepted. Pieces paid with meter postage, precanceled stamps, or permit imprint must be taken to the post office where the license or permit is held, unless the USPS authorizes otherwise. [Insert text of current E412 and redesignate as E622; revise as follows:] E622 Parcel Post 1.0 Basic Standards 1.1 Description Any Standard Mail (B) matter may be mailed at parcel post rates. Parcel post rates are based on zones, on whether a parcel is mailed and delivered within a BMC or ASF service area (as shown below), and on the weight of the piece. * * * * * 1.3 Enclosures Parcel post may contain any printed matter mailable as Standard Mail (A), in addition to the enclosures and additions listed in E611. [Remove current E412.1.4; insert text of current E412.2.0 through E412.4.0 and redesignate as E622.2.0 through E622.4.0, respectively; in 1.1 and 3.1, replace ``fourth-class'' with ``Standard Mail (B)''; in 2.4, replace the reference ``E450'' with ``E652''; no other change in text.] [[Page 10133]] [Insert text of current E414 and redesignate as E623; revise as follows:] E623 Bound Printed Matter 1.0 Basic Standards 1.1 Description Bound printed matter is Standard Mail weighing at least 1 pound but not more than 10 pounds and meeting the standards in E611 and E613. Bound printed matter rates are based on zones and on the weight of the piece. 1.2 Characteristics Bound printed matter must: a. Consist of advertising, promotional, directory, or editorial material (or any combination of such material). b. Be securely bound by permanent fastenings such as staples, spiral binding, glue, or stitching. Looseleaf binders and similar fastenings are not considered permanent. c. Consist of sheets of which at least 90% are imprinted by any process other than handwriting or typewriting with words, letters, characters, figures, or images (or any combination of them). d. Not have the nature of personal correspondence. e. Not be stationery, such as pads of blank printed forms. 1.3 Combining Pieces A mailpiece containing two or more bound printed matter pieces, each weighing less than 1 pound, is mailable at the bound printed matter rates if the total weight of the pieces is at least 1 pound. 1.4 Enclosures In addition to the additions and enclosures listed in E611 and E612, bound printed matter may contain: a. Any printed matter mailable as Standard Mail (A). b. A merchandise sample attached to a bound page or to a permissible loose enclosure, if the sample represents only an incidental portion of the bound printed matter piece and if the sample is not provided exclusively or primarily as a premium or an inducement promoting the sale of the bound printed matter piece. The sample may be identified as a ``free gift'' where it is clear that the sample is offered to the addressee to market the gift product or promote the sale of the bound printed matter. [Remove current E414.1.5; redesignate current E414.2.0 as E633.] [Insert text of current E416 and redesignate as E624; revise as follows:] E624 Special Standard Mail 1.0 Basic Standards 1.1 Qualification Special Standard Mail is Standard Mail matter meeting the standards in E611, E613, and those below. Special Standard Mail rates are based on the weight of the piece, without regard to zone. 1.2 Qualified Items Only these articles may be mailed at the Special Standard Mail rates: a. Books, including books issued to supplement other books of at least eight printed pages, consisting wholly of reading matter or scholarly bibliography, or reading matter with incidental blank spaces for notations and containing no advertising matter other than incidental announcements of books. Advertising includes paid advertising and the publisher's own advertising in display, classified, or editorial style. b. 16-millimeter or narrower width films, which must be positive prints in final form for viewing, and catalogs of such films of 24 pages or more (at least 22 of which are printed). Films and film catalogs sent to or from commercial theaters do not qualify for the Special Standard Mail rate. c. Printed music, whether in bound or sheet form. d. Printed objective test materials and their accessories used by or in behalf of educational institutions to test ability, aptitude, achievement, interests, and other mental and personal qualities with or without answers, test scores, or identifying information recorded thereon in writing or by mark. e. Sound recordings and guides or scripts prepared solely for use with such recordings. Video recordings and player piano rolls are classified as sound recordings. f. Playscripts and manuscripts for books, periodicals, and music. g. Printed educational reference charts designed to instruct or train individuals for improving or developing their capabilities. Each chart must be a single printed sheet of information designed for educational reference. The information on the chart, which may be printed on one or both sides of the sheet, must be conveyed primarily by graphs, diagrams, tables, or other nonnarrative matter. An educational reference chart is normally but not necessarily devoted to one subject. A chart on which the information is conveyed primarily by textual matter in a narrative form does not qualify as a printed educational reference chart for mailing at the Special Standard Mail rates even if it includes graphs, diagrams, or tables. Examples of qualifying charts include maps produced primarily for educational reference, tables of mathematical or scientific equations, noun declensions or verb conjugations used in the study of languages, periodic table of elements, botanical or zoological tables, and other tables used in the study of science. h. Looseleaf pages and their binders consisting of medical information for distribution to doctors, hospitals, medical schools, and medical students. i. Computer-readable media containing prerecorded information and guides or scripts prepared solely for use with such media. 1.3 Loose Enclosures In addition to the enclosures and additions listed in E611, any printed matter that is mailable as Standard Mail (A) may be included loose with any qualifying material mailed at the Special Standard Mail rates. 1.4 Enclosures in Books Enclosures in books mailed at Special Standard Mail rates are subject to these additional standards: a. Either one envelope or one addressed postcard may be bound into the pages of a book. If also serving as an order form, the envelope or card may be in addition to the order form permitted by 1.4b. b. One order form may be bound into the pages of a book. If also serving as an envelope or postcard, the order form may be in addition to the envelope or card permitted by 1.4a. c. Announcements of books may appear as book pages. These announcements must be incidental and exclusively devoted to books, without extraneous advertising of book-related or other materials or services. Announcements may fully describe the conditions and methods of ordering books and may contain ordering instructions for use with a separate order form. Up to three of these announcements may contain as part of their format a single order form, which may also serve as a postcard. The order forms permitted with these announcements are in addition to, and not in place of, order forms that may be enclosed under 1.4a or 1.4b. [Remove current E416.1.5; redesignate E416.2.0 as E634.] [Insert text of current E419 and redesignate as E625; revise as follows:] [[Page 10134]] E625 Library Mail 1.0 Basic Standards 1.1 Qualification Library Mail is Standard Mail matter that meets the standards in E611, E613, and those below. Library Mail rates are based on the weight of the piece, without regard to zone. 1.2 Qualified Sender, Recipient, Content Each piece must show in the address or return address the name of a school, college, university, public library, museum, or herbarium or the name of a nonprofit religious, educational, scientific, philanthropic (charitable), agricultural, labor, veterans, or fraternal organization. For Library Mail standards, these nonprofit organizations are defined in E670. Only the articles described in 1.4 through 1.5 may be mailed at the Library Mail rate. 1.3 Preparation When 1,000 or more pieces of identical weight are mailed at the Library Mail rates during a single day, the pieces must be prepared under M630. 1.4 Mailable Items Sent Between The following items may be mailed at the Library Mail rate when sent between: (1) schools, colleges, universities, public libraries, museums, and herbariums and nonprofit religious, educational, scientific, philanthropic (charitable), agricultural, labor, veterans, and fraternal organizations or associations; (2) any such institution, organization, or association, and an individual who has no financial interest in the sale, promotion, or distribution of the materials; or (3) any such institution, organization, or association and a publisher, if such institution, organization, or association has placed an order to buy such materials for delivery to itself: a. Books, consisting wholly of reading matter, scholarly bibliography, or reading matter with incidental blank spaces for notations and containing no advertising except for incidental announcements of books. b. Printed music, whether in bound or sheet form. c. Bound volumes of academic theses, whether in typewritten or duplicated form. d. Periodicals, whether bound or unbound. e. Sound recordings. f. Other library materials in printed, duplicated, or photographic form or in the form of unpublished manuscripts. g. Museum materials, specimens, collections, teaching aids, printed matter, and interpretive materials for informing and furthering the educational work and interests of museums and herbariums. 1.5 Mailable Items Sent ``To'' or ``From'' The following specific items may be mailed at the Library Mail rate when sent to or from schools, colleges, universities, public libraries, museums, and herbariums and to or from nonprofit religious, educational, scientific, philanthropic (charitable), agricultural, labor, veterans, or fraternal organizations: a. 16-millimeter or narrower width films, filmstrips, transparencies, slides, and microfilms. All must be positive prints in final form for viewing. b. Sound recordings. c. Museum materials, specimens, collections, teaching aids, printed matter, and interpretive materials intended for informing and furthering the educational work and interests of museums and herbariums. d. Scientific or mathematical kits, instruments, or other devices. e. Catalogs of the materials in 1.5a through 1.5d and guides or scripts prepared solely for use with such materials. 1.6 Enclosures in Books and Sound Recordings Books and sound recordings mailed at the Library Mail rate may contain these enclosures as well as the additions and enclosures permitted under E611: a. Either one envelope or one addressed postcard. If also serving as an order form, the envelope or card may be in addition to the order form permitted by 1.6b. b. One order form. If also serving as an envelope or postcard, the order form may be in addition to the envelope or card permitted by 1.6a. c. With books, announcements of books appearing in book pages or as loose enclosures. These announcements must be incidental and exclusively devoted to books, without extraneous advertising of book- related materials or services. Announcements may fully describe the conditions and methods of ordering books (such as by membership in book clubs) and may contain ordering instructions for use with the single order form permitted in 1.6b. d. With sound recordings, announcements of sound recordings appearing on title labels, on protective sleeves, on the carton or wrapper, or on loose enclosures. These announcements of sound recordings must be incidental and exclusively devoted to sound recordings. They may not contain extraneous advertising of recording- related materials or services. Announcements may fully describe the conditions and methods of ordering sound recordings (such as by membership in sound recording clubs) and may contain ordering instructions for use with the single order form permitted in 1.6b. 1.7 Other Material Material mailed at the Library Mail rate other than books and sound recordings may contain only those additions and enclosures permitted under E611. [Remove text of current E419.1.8.] E630 Nonautomation Presort Standard Mail Rates [Insert text of current of E331 and E332 and redesignate as E631; revise as follows:] E631 Nonautomation Regular Standard Mail 1.0 Basic Standards All pieces in a nonautomation Regular Standard Mail mailing must meet the basic standards for Standard Mail in E611 and E612 and must be part of a single mailing of at least 200 pieces or 50 pounds of pieces of nonautomation rate Regular Standard Mail. 2.0 Basic and 3/5 Rates Nonautomation Regular Standard Mail rates (Basic and 3/5) apply to Regular Standard Mail letters, flats, and machinable and irregular parcels, weighing less than 16 ounces, that are prepared under M610 or palletized under M045. Basic rates apply to pieces that do not meet the standards for the 3/5 rates described below. Basic rate and 3/5 rate pieces prepared as part of the same mailing are subject to a single minimum volume standard. Pieces that do not qualify for the 3/5 rate must be paid at the basic rate and prepared accordingly. Pieces may qualify for the 3/5 rate if: a. In quantities of 150 or more letter-size pieces for a single 3- digit area, prepared in 5-digit or 3-digit packages of 10 or more pieces each and placed in 5-digit or 3-digit trays. b. In quantities of 150 or more upgradable letter-size pieces (as defined in M610) for a single 3-digit area and placed in 5-digit or 3- digit trays. c. In a 5-digit or 3-digit package of 10 or more flat-size pieces and placed in a 5-digit or 3-digit sack containing at least 125 pieces or 15 pounds of pieces. [[Page 10135]] d. In a 5-digit or 3-digit package of 10 or more flat-size pieces palletized under M045. e. In a 5-digit, destination ASF (if required), or destination BMC sack containing at least 10 pounds of machinable parcels. (The 3/5 rates are available only if all possible 5-digit sacks are prepared.) f. On a 5-digit, destination ASF (if required), or destination BMC pallet of machinable parcels. (The 3/5 rates are available only if all possible 5-digit pallets are prepared.) g. In a 5-digit or 3-digit sack of irregular parcels containing at least 125 pieces or 15 pounds of pieces. 3.0 ZIP Code Accuracy Effective October 1, 1996, 5-digit ZIP Codes included in addresses appearing on pieces claimed at nonautomation Regular rates must be verified and corrected within 12 months before the mailing date, using a USPS-approved method. Mailers must certify that this standard has been met when the corresponding mail is presented to the USPS. This standard applies to each address individually, not to a specific list or mailing. An address meeting this standard may be used in mailings at any other rates to which the standard applies throughout the 12-month period following its most recent update. [Remove text of current E333 and E334 and replace with new E632 as follows:] E632 Enhanced Carrier Route Standard Mail 1.0 Basic Standards 1.1 All Pieces All pieces in an Enhanced Carrier Route Standard Mail mailing (letters, flats, or irregular parcels, including merchandise samples distributed with detached address labels) must: a. Meet the basic standards for Standard Mail in E611 and E612. b. Be part of a single mailing of at least 200 pieces or 50 pounds of pieces of Enhanced Carrier Route Standard Mail, except that automation Basic Carrier Route rate pieces are subject to a separate 200-piece/50-pound minimum volume standard and may not be included in the same mailing as other Enhanced Carrier Route mail. c. Be sorted to carrier routes, marked, and documented under M045 (if palletized) or M620. 1.2 Flats and Merchandise Samples Enhanced Carrier Route rate flats may not be more than 11\3/4\ inches wide, 14 inches long, or \3/4\ inch thick. Merchandise samples with detached address labels may exceed these dimensions if the labels meet the standards in A060. 1.3 Preparation Preparation to qualify for any of the Enhanced Carrier Route rates is optional and need not be performed for all carrier routes in a 5- digit area. An Enhanced Carrier Route mailing may include pieces at Basic, High Density, and Saturation Enhanced Carrier Route rates. Automation Basic Carrier Route rate pieces must be prepared as a separate mailing, subject to the eligibility standards in E641. 1.4 Carrier Route Information Subject to A930 and A950, mailers must apply carrier route codes to mailings using CASS-certified software and the current USPS Carrier Route Information System (CRIS) scheme or another AIS product containing carrier route information. The carrier route information must be updated within 90 days before the mailing date. Carrier route and City/State File information must be updated within 90 days before the mailing date. 1.5 Sequencing Basic Carrier Route rate mail must be prepared either in carrier walk sequence or in line-of-travel (LOT) sequence according to LOT schemes prescribed by the USPS (see M050). High Density and Saturation rate mailings must be prepared in carrier walk sequence according to schemes prescribed by the USPS. 1.6 Addressing--High Density and Saturation Mail High Density and Saturation rate mail may be prepared with detached address labels, subject to A060, or with an alternative addressing format, subject to A040. High Density pieces must have a complete delivery address or an address in occupant or exceptional format. Saturation pieces addressed for delivery on a city route must have a complete delivery address or an address in occupant or exceptional format, except that official mail from certain government entities may also use the simplified format. Saturation pieces for delivery on rural or highway contract routes, or through general delivery or a post office box, must have a complete delivery address or an alternative address format. 1.7 Density--High Density and Saturation Mail High Density and Saturation rate mailings are subject to these density standards: a. There is no minimum volume per 5-digit ZIP Code delivery area. Pieces need not be sent to all carrier routes within a 5-digit delivery area. b. For the High Density rate, at least 125 pieces must be prepared for each carrier route for which that discount is claimed, except that fewer pieces may be prepared and the High Density rate may be claimed for carrier routes of 124 or fewer possible deliveries if a piece is addressed to every possible delivery on the route. Multiple pieces per delivery address can count toward this density standard. c. For the Saturation rate, pieces must be addressed either to 90% or more of the active residential addresses or to 75% or more of the total number of active possible delivery addresses, whichever is less, on each carrier route receiving this mail, except that mail addressed in the simplified address format must meet the 100% coverage standard in A040. Multiple pieces per delivery address do not count toward this delivery standard. Sacks with fewer than 125 pieces and less than 15 pounds of pieces may be prepared to a carrier route when the Saturation rate is claimed for the contents and the applicable density standard is met. 2.0 Rate Application 2.1 Automation Basic Automation Basic Carrier Route rates apply to each piece that is sorted under M810 into full carrier route trays, or in carrier route groups of 10 or more pieces each placed in 5-digit carrier routes trays. (Preparation to qualify for that rate is optional and need not be performed for all carrier routes in a 5-digit area.) 2.2 Basic Basic (nonautomation) Carrier Route rates apply to each piece that is sorted under M620 into the corresponding qualifying groups: a. Letter-size pieces in a full carrier route tray, or in a carrier route package of 10 or more pieces placed in a 5-digit carrier routes tray. 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 carrier routes sack. c. Irregular parcels in a carrier route sack containing 125 pieces or 15 pounds of pieces, in a carrier route carton(s) of merchandise samples prepared with detached address labels under A060 containing a total of 125 pieces or 15 pounds of pieces, or in a 5-digit carrier routes sack or carton. (Pieces must be in [[Page 10136]] packages of 10 or more irregular parcels each if packaging is required under M610.) 2.3 High Density and Saturation High Density and Saturation rates apply to pieces qualified for the Basic rates that also meet the applicable addressing and density standards in 1.6 and 1.7. [Insert text of current E414.2.0 and redesignate as E633; revise as follows:] E633 Bulk Bound Printed Matter 1.0 Basic Information 1.1 Preparation Bulk bound printed matter must meet the basic standards in E623 and the applicable preparation standards in M630. Mailings may contain nonidentical-weight pieces only if the correct postage is affixed to each piece or if the RCSC serving the office of mailing has authorized payment of postage by permit imprint. Each mailing must contain 300 or more pieces of bound printed matter. Insurance, special delivery, special handling, and COD services may be used, but selective use of these services for individual parcels must be approved by the RCSC. 1.2 Additional Standards for Carrier Route Carrier route bulk bound printed matter is subject to these additional standards: a. Each mailing must contain 300 or more pieces sorted under M630 into groups of at least 10 pieces, 20 pounds, or 1,000 cubic inches each for the same carrier route, rural route, highway contract route, post office box section, or general delivery unit. b. Residual pieces (not sorted as described in 1.2a) do not count toward the minimum specified in 1.2a, are ineligible for the carrier route presort level rate, and must have postage paid at the appropriate bulk bound printed matter rate. Residual pieces may be included in a carrier route presort rate mailing and be endorsed ``Carrier Route Presort'' or ``CAR-RT SORT.'' The number of residual pieces to any single 5-digit ZIP Code area may not exceed 5% of the total qualifying carrier route pieces addressed to that 5-digit area. Residual pieces must be separated from the pieces that qualify for the carrier route rate and must be prepared under M630. c. Subject to A930, mailers must apply carrier route codes to mailings using CASS-certified software and the current USPS Carrier Route Information System (CRIS) scheme or another AIS product containing carrier route information. The carrier route information must be updated within 90 days before the mailing date. [Insert text of current E416.2.0 and redesignate as E634; revise as follows:] E634 Presorted Special Standard Mail 1.0 Basic Information The Presorted Special Standard Mail rates apply to Special Standard Mail rate matter mailed in minimum quantities at a place and time designated by the postmaster, subject to the preparation standards in M630. The size and content of each piece in the mailing does not need to be identical. Nonidentical pieces may be merged, sorted together, and presented as a single mailing either with postage paid with a permit imprint if authorized by the RCSC serving the post office of mailing, or with the correct postage affixed to each piece in the mailing. 2.0 Presort Rates 2.1 Mailing Fee A mailing fee must be paid once each 12-month period at each office of mailing by or for any person who mails at the Presorted Special Standard Mail rates. The fee may be paid in advance only for the next year and only during the last 30 days of the current service period. The fee charged is that in effect on the date of payment. 2.2 One Presort Level A Presorted Special Standard Mail rate mailing receives only one level of presort rate. The mailer may, however, prepare two or more mailings with separate postage statements to use both levels of presort rates. Pieces that do not qualify for a presort rate must be presented for mailing under a separate postage statement if postage is paid with a permit imprint. 2.3 Definitions For this standard: a. Full sack means either at least eight pieces or a quantity of pieces equaling at least 1,000 cubic inches of volume or weighing from 20 to 70 pounds. b. Substantially full sack means either at least four pieces or a quantity of pieces equaling at least 1,000 cubic inches of volume or weighing from 20 to 70 pounds. 2.4 5-Digit Rate To qualify for the Presorted Special Standard Mail 5-digit rate, a piece must be in a mailing of at least 500 pieces receiving identical service, properly prepared and sorted either under M630 to full 5-digit sacks or under M045 to 5-digit pallets. These conditions also apply: a. Mailings of at least 500 nonmachinable outside parcels may qualify for the Presorted Special Standard Mail 5-digit rate if prepared to preserve sortation by 5-digit ZIP Code as prescribed by the mailing office postmaster. The postmaster may require up to a 24-hour notice before the mailing is presented. b. Mailings prepared as palletized bundles must consist of 5-digit bundles each containing at least eight pieces, or a quantity of pieces equaling 1,000 cubic inches of volume or weighing 20 pounds. No bundle may exceed 40 pounds. If there is more than 20 pounds of mail to a 5- digit destination, mailers must prepare the minimum number of bundles that do not exceed 40 pounds each. 2.5 BMC Rate To qualify for the Presorted Special Standard Mail BMC rate, a piece must be in a mailing of at least 500 sacked pieces receiving identical service, properly prepared and sorted either under M630 to full or substantially full bulk mail center (BMC) sacks or under M045 to BMC pallets. Mailings of at least 500 nonmachinable outside parcels may qualify for the Presorted Special Standard Mail BMC rate if prepared to preserve sortation by BMC as prescribed by the mailing office postmaster. The postmaster may require up to a 24-hour notice before the mailing is presented. E639 Nonprofit Standard Mail [Insert text of current E331 and E332 and redesignate, renumber, and revise as E639.1.0; insert text of current E333 and redesignate, renumber, and revise as E639.2.0; insert text of current E334 and redesignate, renumber, and revise as E639.3.0.] 1.0 Basic and 3/5 Rates 1.1 Qualifying Pieces Nonprofit Basic and 3/5 rates apply to Nonprofit Standard Mail letters, flats, and machinable and irregular parcels, weighing less than 16 ounces, that meet the basic standards in E611 and E612 and are prepared under M692. Basic rates apply to pieces that do not meet the standards for the 3/5 rates described below. Basic rate and 3/5 rate pieces may be prepared as part of the same mailing, subject to a single minimum volume standard. Pieces not sorted to qualify for the 3/5 rate must be paid at the basic rate and prepared accordingly. Pieces may qualify for the 3/5 rate if prepared: a. In 5-digit or 3-digit packages of 10 or more pieces each, placed in 5-digit or [[Page 10137]] 3-digit sacks that contain at least 125 pieces or 15 pounds of pieces. b. In 5-digit or 3-digit packages of 10 or more pieces each, placed in 5-digit or 3-digit trays. c. In full or overflow 5-digit, 3-digit, or SCF trays, prepared under the standards for ZIP+4 tray-based mailings in M891. d. In 5-digit packages of 10 or more pieces each, or 3-digit packages of 50 or more pieces each, prepared under the standards for ZIP+4 package-based mailings in M892. e. In 5-digit, 3-digit, or SCF trays, prepared under the standards for letter-size Barcoded tray-based mailings in M893. f. In 5-digit packages of 10 or more pieces each, or 3-digit packages of 50 or more pieces each, prepared under the standards for letter-size Barcoded package-based mailings in M894 and M895. g. In 5-digit or 3-digit packages of 10 or more pieces each, prepared under the standards for flat-size 3/5 ZIP+4 Barcoded rate mailings in M897. h. In 5-digit or 3-digit packages of 10 or more pieces each, palletized under M045. i. In 5-digit, destination ASF (if required), or destination BMC sacks containing at least 10 pounds of machinable parcels. (The 3/5 rates are available only if all possible 5-digit sacks are prepared.) j. On 5-digit or destination BMC pallets of machinable parcels. (The 3/5 rates are available only if all possible 5-digit pallets are prepared.) k. In 5-digit or 3-digit sacks of irregular parcels. 1.2 Optional Preparation At the mailer's option, nonautomation Nonprofit Standard Mail may be prepared under the standards for nonautomation Regular Standard Mail in M610, including presort. Under this option, nonautomation Nonprofit Standard Mail may claim nonautomation Nonprofit Basic or 3/5 rates if all corresponding eligibility standards in E631 for nonautomation Regular Basic and 3/5 rates are met. 1.3 Carrier Route Pieces A 3/5 rate mailing may not include pieces claimed at the carrier route or walk-sequence rates. The 3/5 rate pieces and carrier route or walk-sequence rate pieces may be reported on the same postage statement only under D600. 2.0 Carrier Route Rates 2.1 General All pieces in a carrier route rate mailing must be presented at one post office as part of a single mailing of at least 200 pieces or 50 pounds of pieces prepared under M693 to carrier routes. Pieces may not be more than 11\3/4\ inches wide, 14 inches long, or \3/4\ inch thick. Merchandise samples with detached address labels may exceed these dimensions if the labels meet the standards in A060. 2.2 Optional Preparation At the mailer's option, carrier route Nonprofit Standard Mail may be prepared under the standards for Basic, High Density, or Saturation rate Enhanced Carrier Route Standard Mail in M620, including presort. Under this option, Nonprofit Standard Mail may claim Nonprofit carrier route rates if all corresponding eligibility standards in E632 are met for the Basic, High Density, or Saturation Enhanced Carrier Route rate. Automation Basic Carrier Route rates may not be claimed under this option. 2.3 Other Rates A carrier route rate mailing may include pieces claimed at the basic rate if the entire mailing meets the standard in 3.1. The basic rate pieces must be prepared under M692, but they do not have to meet a separate 200-piece/50-pound minimum. A carrier route rate mailing may not include pieces claimed at the 3/5 rates. The 3/5 rate and carrier route rate pieces may be reported on the same postage statement only under D600. 2.4 Required Listing At the time of mailing, the mailer must give the post office a list of the number of qualifying pieces to each 5-digit ZIP Code area. After the first mailing, the postmaster may authorize the mailer to keep the records and submit them on request. The mailer must keep these records for 90 days after the mailing date, or until any action pending on the recalculation of postage is resolved to USPS satisfaction. 2.5 Carrier Route Information Mailers must apply carrier route codes to mailings by using the current USPS Carrier Route Information System (CRIS) scheme or another AIS product containing carrier route information (see A930). Carrier route information must be updated within 90 days before the mailing date. 2.6 Qualifying Presort Each qualifying piece must be prepared under M693 as part of a group of 10 or more pieces in the same carrier route package that, in turn, is placed in a carrier route, 5-digit carrier routes, or 3-digit carrier routes tray or sack. To carrier route and 5-digit carrier routes destinations, trays must be full and sacks must contain at least 125 pieces or 15 pounds of pieces. Qualifying mail also includes: a. Carrier route packages in a 5-digit carrier routes tray that is less than full, or in a 5-digit carrier routes sack that contains fewer than 125 pieces and less than 15 pounds of pieces if that 5-digit area does not have enough residential deliveries to meet the applicable full tray or 125-piece/15-pound sack minimum at a 90% saturation level. b. The last tray or sack to a 3-digit ZIP Code destination. The last tray may be less than full and the last sack may contain fewer than 125 pieces and less than 15 pounds of pieces. c. Carrier route packages palletized under M045. 2.7 Residual Residual pieces are those not sorted under M693 to qualify for carrier route rates. These pieces may be included in a carrier route rate mailing and may be marked ``Carrier Route Presort,'' subject to these conditions: a. Residual pieces do not count toward the minimum quantity for carrier route rates. b. The number of residual pieces to any single 5-digit ZIP Code area may not exceed 5% of the total qualifying carrier route pieces addressed to that 5-digit ZIP Code area. c. Residual pieces are not eligible for the carrier route rate and must have postage paid at the basic rate and must be prepared as specified in M693. 3.0 Walk-Sequence Rates 3.1 General All pieces in a walk-sequence rate mailing must be presented at one post office as part of a single mailing of at least 200 pieces or 50 pounds of pieces sorted to carrier routes. Subject to compliance with these standards, the saturation walk-sequence rate may be claimed by pieces in both the ``letters'' and ``other-than-letters'' categories. The 125-piece walk-sequence rate may be claimed only by pieces in the ``other-than-letters'' category, as defined in E612. 3.2 Optional Preparation At the mailer's option, carrier route Nonprofit Standard Mail may be prepared under the standards for Enhanced Carrier Route Standard Mail in M620, including presort. Under this option, Nonprofit Standard Mail may claim Nonprofit 125-piece walk-sequence or saturation walk- sequence [[Page 10138]] rates if all corresponding eligibility standards in E632 for Enhanced Carrier Route High Density or Saturation rates are met. 3.3 Other Rates A walk-sequence rate mailing may include pieces claimed at the carrier route and basic rates, but only the carrier route pieces count toward the standard in 3.1. The basic rate pieces must be prepared as required for residual pieces under 1.0, but they do not have to meet a separate 200-piece/50-pound minimum. When presented to the USPS, the trays or sacks containing the walk-sequence rate pieces must be separated from other trays or sacks. Any effective separation method may be used. A walk-sequence rate mailing may not include pieces claimed at the 3/5 rate. The 3/5 rate and walk-sequence rate pieces may be reported on the same postage statement only under D600. 3.4 Addressing Walk-sequence rate mail must meet these addressing standards: a. Mailings may be prepared with detached address labels, subject to A060. b. Pieces prepared with an alternative addressing format must meet the applicable standards in A040. c. For the 125-piece walk-sequence discount, each piece must have a complete delivery address or an address in occupant or exceptional format. d. For the saturation walk-sequence discount, each piece addressed for delivery on a city route must have a complete delivery address or an address in occupant or exceptional format, except that official mail from certain government entities may also use the simplified format. Pieces for delivery on rural or highway contract routes, or through general delivery or a post office box, must have a complete delivery address or an alternative address format. 3.5 Density Standards Walk-sequence rate mailings are subject to these density standards: a. There is no minimum volume per 5-digit ZIP Code delivery area. Walk-sequence mail need not be sent to all carrier routes within a 5- digit delivery area. b. For the 125-piece walk-sequence discount, at least 125 walk- sequenced pieces must be prepared for each carrier route for which that discount is claimed, except that for carrier routes of 124 or fewer possible deliveries, the 125-piece walk-sequence discount may be claimed if a piece is addressed to every possible delivery on the route. Multiple pieces per delivery address can count toward this density standard. c. For the saturation walk-sequence discount, pieces must be addressed either to 90% or more of the active residential addresses or 75% or more of the total number of active possible delivery addresses, whichever is less, on each carrier route receiving this mail, except that mail addressed in the simplified address format must meet the coverage standard in A040. Multiple pieces per delivery address do not count toward this density standard. d. Sacks with fewer than 125 pieces and less than 15 pounds of pieces may be prepared to a carrier route when a walk-sequence discount is claimed for the contents and the applicable density standard in 3.5b or 3.5c is met. E640 Automation Standard Mail Rates [Insert text of current E342, E344, and E345 and redesignate as E641; revise as follows:] E641 Automation Regular and Enhanced Carrier Route Standard Mail 1.0 Automation Regular Rates 1.1 All Pieces All pieces in an automation rate Regular Standard Mail mailing must: a. Meet the basic standards for Standard Mail in E611 and E612. b. Be part of a single mailing of at least 200 pieces or 50 pounds of pieces of automation rate Regular Standard Mail. c. Meet the physical standards in C810 (letters and cards) or C820 (flats). d. Bear a delivery address that includes the correct ZIP Code, ZIP+4 code, or numeric equivalent to the delivery point barcode (DPBC). e. Meet the address quality and coding standards in 1.2 (if applicable), A800, and A950. f. Be marked, sorted, and documented as specified in M810 (letters and cards) or M820 (flats). g. Bear an accurate barcode, either a DPBC if a card or letter (on the piece or on an insert showing through a barcode window) or a ZIP+4 barcode or DPBC if a flat, that meets the barcode standards in C840. A letter-size mailpiece with a barcode window in the lower right corner must have the correct DPBC appearing through that window. 1.2 Enclosed Reply Cards and Envelopes Effective January 1, 1997, all courtesy reply and business reply mail (BRM) cards and letter-size envelopes provided as enclosures in automation rate Regular Standard Mail must meet the standards in C810 for enclosed cards and envelopes. Mailers must certify that this standard has been met when the corresponding mail is presented to the USPS. 1.3 Rate Application--Letters and Cards Regular automation rates apply to each piece that is sorted under M810 into the corresponding qualifying groups: a. Groups of 150 or more pieces in 5-digit trays (and all pieces in one less-than-full overflow tray) qualify for the 5-Digit automation rate. (Preparation to qualify for that rate is optional and need not be performed for all 5-digit destinations.) b. Groups of 150 or more pieces in 3-digit or 3-digit scheme trays (and all pieces in one less-than-full overflow tray) qualify for the 3- Digit automation rate. c. Pieces in full or overflow AADC trays and in all mixed AADC trays qualify for the Basic automation rate. 1.4 Rate Application--Flats Regular automation rates apply to each piece that is sorted under M820 into the corresponding qualifying groups: a. Pieces in 5-digit or 3-digit packages of 10 or more pieces each qualify for the 3/5 automation rate. b. Pieces in ADC or mixed ADC packages qualify for the Basic automation rate. 2.0 Enhanced Carrier Route Rates 2.1 All Pieces All pieces in an automation rate Enhanced Carrier Route Standard Mail mailing (available for letters only) must: a. Meet the basic standards for Standard Mail in E611 and E612. b. Be part of a single mailing of at least 200 pieces or 50 pounds of pieces of automation rate Enhanced Carrier Route Standard Mail. c. Be sorted to carrier routes, marked, and documented under M045 (if palletized) or M810. d. Bear a delivery address that includes the correct ZIP Code, ZIP+4 code, or numeric equivalent to the delivery point barcode (DPBC). e. Meet the address quality and coding standards in 1.5, A800, and A950. f. Bear an accurate DPBC that meets the barcode standards in C840. A letter-size mailpiece with a barcode window in the lower right corner must have the correct DPBC appearing through that window. [[Page 10139]] 2.2 Preparation Preparation to qualify for any of Enhanced Carrier Route automation rates is optional and need not be performed for all carrier routes in a 5-digit area. An automation rate Enhanced Carrier Route mailing may not include pieces at Basic, High Density, and Saturation Enhanced Carrier Route rates. 2.3 Carrier Route Information Subject to A930 and A950, mailers must apply carrier route codes to mailings using CASS-certified software and the current USPS Carrier Route Information System (CRIS) scheme or another AIS product containing carrier route information. The carrier route information must be updated within 90 days before the mailing date. Carrier route and City/State File information must be updated within 90 days before the mailing date. The automation Basic Carrier Route rate is available only for letter-size mail and only for those 5-digit ZIP Code areas identified in the USPS City/State File used for address coding. 2.4 Rate Application Automation Basic Carrier Route rates apply to each piece that is sorted under M810 into full carrier route trays, or in carrier route groups of 10 or more pieces each placed in 5-digit carrier routes trays. (Preparation to qualify for that rate is optional and need not be performed for all carrier routes in a 5-digit area.) E649 Automation Nonprofit Standard Mail [Insert text of current eligibility standards in E342, E344, and E345 and redesignate and renumber as E649.1.0, E649.2.0, and E649.3.0, respectively.] 1.0 ZIP+4 Discounts 1.1 All Pieces All pieces in a Nonprofit Standard Mail ZIP+4 rate mailing must: a. Meet the basic standards for Standard Mail in E611 and E612. b. Be presented at one post office as part of a single mailing of at least 200 pieces or 50 pounds of pieces of automation rate Nonprofit Standard Mail. c. Meet the physical standards in C810. d. Bear a delivery address with the correct ZIP Code or ZIP+4 code (or, if only prepared with a delivery point barcode (DPBC), the numeric equivalent to the DPBC). e. Meet the address quality and coding standards of A800 and A950. f. Meet the standards in C830 or, for pieces with the correct DPBC, the barcode standards in C840. g. Be marked, sorted, and documented as specified in M891 or M892. h. Separately qualify under the standard for any other discount claimed. 1.2 Rate Application Nonprofit ZIP+4 rates apply to each piece that also: a. Is sorted under M891 or M892 into the corresponding qualifying groups described in 1.7 and 1.8. b. Bears a delivery address with the correct numeric ZIP+4 code or bears the correct DPBC. c. Meets the applicable standards in 1.3 through 1.6. 1.3 Barcode Window A mailpiece meeting the standards in 1.1 and 1.2, but with a barcode window in the lower right corner, may be eligible for any Nonprofit automation rate only if the correct DPBC appears through that window. 1.4 5-Digit Barcodes Nonprofit ZIP+4 rate mailings may include pieces with correct 5- digit barcodes if those pieces meet the standards in 1.1 and 1.2 and the standards for 5-digit barcodes in C840. Such pieces may qualify for the Nonprofit ZIP+4 rates only if the barcode is printed on the piece and the address contains the correct numeric ZIP+4 code. 1.5 ZIP+4 Barcodes Nonprofit ZIP+4 rate mailings may include pieces with correct ZIP+4 barcodes if the barcode is located in the address block and those pieces meet the standards in 1.1 and 1.2 and the standards for ZIP+4 barcodes in C840. Such pieces may qualify for Nonprofit ZIP+4 rates only if, additionally, each has a barcode clear zone (without a window) in the lower right corner and bears an address that contains the correct numeric ZIP+4 code. Pieces that bear a ZIP+4 barcode in the lower right corner may not be included in a Nonprofit ZIP+4 rate mailing. 1.6 85% Rule At least 85% of all pieces in a Nonprofit ZIP+4 rate mailing (regardless of presort level or rate) must bear the correct numeric ZIP+4 code or DPBC for the delivery address, as defined by the address quality and coding standards in A800 and A950. The 85% requirement applies to each mailing unless excepted by other standards. 1.7 Qualifying Tray-Based Presort In tray-based mailings under M891, ZIP+4 coded or DPBC pieces in full or overflow 5-digit, 3-digit, and SCF trays qualify for the Nonprofit 3/5 ZIP+4 rate; other pieces qualify for the Nonprofit 3/5 rate. One less-than-full SCF tray for the origin SCF is permitted. ZIP+4 coded or DPBC pieces in AADC, mixed AADC, or working trays qualify for the Nonprofit Basic ZIP+4 rate; other pieces qualify for the Nonprofit Basic rate. 1.8 Qualifying Package-Based Presort In package-based mailings under M892, ZIP+4 coded or DPBC pieces in 5-digit packages of 10 or more pieces each, and 3-digit packages of 50 or more pieces each, qualify for the Nonprofit 3/5 ZIP+4 rate; other pieces in these packages qualify for the Nonprofit 3/5 rate. Residual ZIP+4 coded or DPBC pieces qualify for the Nonprofit Basic ZIP+4 rate; other pieces qualify for the Nonprofit Basic rate. 2.0 Barcoded Discounts (Letter-Size Pieces) 2.1 All Pieces All pieces in a Nonprofit Standard Mail Barcoded rate letter-size mailing must: a. Meet the basic standards for Standard Mail in E611 and E612. b. Be presented at one post office as part of a single mailing of at least 200 pieces or 50 pounds of pieces. c. Meet the physical standards in C810. d. Bear a delivery address that includes the correct ZIP Code or ZIP+4 code (or, only if prepared with a delivery point barcode (DPBC), the numeric equivalent to the DPBC). e. Meet the address quality and coding standards of A800 and A950. f. Either bear the correct DPBC meeting the barcode standards in C840 or meet the applicable standards in 2.5. g. Be marked, sorted, and documented as specified in M893, M894, or M895. h. Meet the postage payment standards in P013 and P600. i. Separately qualify under the standard for any other discount claimed. 2.2 Rate Application Nonprofit Barcoded rates apply to each piece that also: a. Is sorted under M893, M894, or M895 into the corresponding qualifying groups described in 2.8, 2.9, and 2.10. b. Bears the correct DPBC that meets the barcode standards in C840. c. Meets the applicable standards in 2.3 through 2.7. [[Page 10140]] 2.3 Optional Preparation At the mailer's option, barcoded Nonprofit Standard Mail may be prepared under the standards for Automation Standard Mail in M810, including presort. Under this option, barcoded Nonprofit Standard Mail may claim Nonprofit carrier route, 5-Digit Barcoded, 3-Digit Barcoded, and Basic Barcoded rates if all corresponding eligibility standards in E631 and E641 for Automation Carrier Route, 5-Digit, 3-Digit, and Basic rates are met. 2.4 Barcode Window A mailpiece with a barcode window in the lower right corner is ineligible for any Nonprofit automation rate unless the correct DPBC appears through that window. 2.5 Pieces Without DPBCs Subject to 2.6 and 2.7, Nonprofit Barcoded rate mailings may include nonbarcoded, 5-digit barcoded, or ZIP+4 barcoded pieces if each such piece (regardless of rate) meets the standards in 2.1, has a barcode clear zone in the lower right corner meeting the reflectance standards in C840, meets the applicable 5-digit or ZIP+4 barcode standards in C840. Additionally, to qualify for a Nonprofit ZIP+4 rate, subject to 2.8, 2.9, and 2.10: a. Nonbarcoded and 5-digit barcoded pieces must bear an address with the correct ZIP+4 code and meet the standards in C830, and must not have a window in the lower right corner. b. ZIP+4 barcoded pieces must have the barcode in the address block, meet the standards in C830, and bear an address with the correct ZIP+4 code, and must not have a window in the lower right corner. 2.6 85% Rule Subject to 2.7, at least 85% of all pieces in a Nonprofit Barcoded rate mailing (regardless of presort level or rate) must bear the correct DPBC for the delivery address, as defined by the standards for address quality and coding accuracy in A800 and A950. The 85% requirement applies to each mailing unless excepted by other standards. 2.7 100% Barcoding Each piece must bear the correct delivery point barcode: a. In 5-digit trays in a tray-based mailing under M893. b. In 5-digit packages in a package-based mailing under M894 or M895. c. In any mailing containing heavy letters (as defined in C810). 2.8 Qualifying Tray-Based Presort In tray-based mailings under M893: a. Pieces in full or overflow 5-digit trays qualify for the 5-digit Nonprofit Barcoded rate. b. In full or overflow 3-digit and SCF trays, DPBC pieces qualify for the 3-digit Nonprofit Barcoded rate; subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for the Nonprofit \3/5\ ZIP+4 rate; other pieces qualify for the Nonprofit \3/5\ rate. One less-than-full SCF tray is permitted for the SCF serving the post office where the mailing is entered. c. In AADC, mixed AADC, and working trays, DPBC pieces qualify for the Nonprofit Basic Barcoded rate; subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for the Nonprofit Basic ZIP+4 rate; other pieces qualify for the Nonprofit Basic rates. 2.9 Qualifying Two-Tier Package-Based Presort In two-tier package-based mailings under M894: a. Pieces in 5-digit packages of 10 or more pieces each qualify for the Nonprofit 5-digit Barcoded rate. b. In 3-digit packages of 50 or more pieces each, DPBC pieces qualify for the Nonprofit 3-digit Barcoded rates; subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for the Nonprofit \3/5\ ZIP+4 rate; other pieces qualify for the Nonprofit \3/5\ rate. c. In the residual portion, DPBC pieces qualify for the Nonprofit Basic Barcoded rate; subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for the Nonprofit Basic ZIP+4 rate; other pieces qualify for Nonprofit Basic rate. 2.10 Qualifying Three-Tier Package-Based Presort In three-tier package-based mailings under M895: a. Pieces in 5-digit packages of 10 or more pieces each in the 5- digit tier qualify for the Nonprofit 5-digit Barcoded rate. b. In 3-digit packages of 50 or more pieces each in the 3-digit tier, DPBC pieces qualify for the Nonprofit 3-digit Barcoded rate; subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for the Nonprofit \3/5\ ZIP+4 rate; other pieces qualify for the Nonprofit \3/5\ rate. c. In the residual tier, DPBC pieces qualify for the Nonprofit Basic Barcoded rate; subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for the Nonprofit Basic ZIP+4 rate; other pieces qualify for the Nonprofit Basic rate. 3.0 ZIP+4 Barcoded Discounts (Flat-Size Pieces) 3.1 All Pieces All pieces in a Nonprofit Standard Mail ZIP+4 Barcoded rate flat- size mailing must: a. Meet the basic standards for Standard Mail in E611 and E612. b. Be presented at one post office as part of a single mailing of at least 200 pieces or 50 pounds of pieces. c. Meet the physical standards in C820. d. Bear a delivery address that includes the correct ZIP Code or ZIP+4 code (or, only if prepared with a delivery point barcode (DPBC), the numeric equivalent to the DPBC). e. Meet the address quality and coding standards of A800 and A950. f. Bear the correct 5-digit barcode, ZIP+4 barcode, or DPBC, subject to C840, except for pieces in specific portions of mailings prepared under M897. g. Be marked, sorted, and documented as specified in M897. h. Meet the postage payment standards in P013 and P600. i. Separately qualify under the standard for any other discount claimed. 3.2 Rate Application Nonprofit ZIP+4 Barcoded rates apply to each piece that also: a. Is sorted under M897 into the qualifying groups described in 3.6. b. Bears the correct ZIP+4 barcode or DPBC. 3.3 Optional Preparation At the mailer's option, barcoded Nonprofit Standard Mail may be prepared under the standards for Automation Standard Mail in M820, including presort. Under this option, barcoded Nonprofit Standard Mail may claim Nonprofit \3/5\ Barcoded and Basic Barcoded rates if all corresponding eligibility standards in E631 and E641 for Automation \3/ 5\ and Basic rates are met. 3.4 5-Digit Barcodes Nonprofit ZIP+4 Barcoded rate mailings may include pieces with correct 5-digit barcodes if those pieces meet the standards in 3.1 through 3.3 and the standards for 5-digit barcodes in C840. Pieces with a 5-digit barcode could be eligible for a presort rate under 3.6. 3.5 85% Rule Generally, at least 85% of all pieces in a Nonprofit ZIP+4 Barcoded rate mailing (regardless of presort level or rate) must bear the correct ZIP+4 barcode or DPBC for the delivery address, as defined by the standards for address quality and coding accuracy in A800 and A950. Remaining pieces must bear the correct 5-digit barcode meeting the applicable standards in C840. The 85% requirement applies to each [[Page 10141]] mailing unless excepted by other standards. Nonprofit ZIP+4 Barcoded rate mailings not meeting the 85% rule must be prepared under corresponding standards in M897. 3.6 Presort In 5-digit or 3-digit packages of 10 or more pieces each, ZIP+4 barcoded or DPBC pieces can qualify for the Nonprofit 3/5 ZIP+4 Barcoded rate; other pieces qualify for the Nonprofit 3/5 rate. In SCF packages of 10 or more pieces each, or in residual packages, ZIP+4 barcoded or DPBC pieces qualify for the Nonprofit Basic ZIP+4 Barcoded rate for flats; 5-digit barcoded pieces qualify for the Nonprofit Basic rate. E650 Destination Entry Discounts E651 Destination Entry--Regular, Nonprofit, and Enhanced Carrier Route Standard Mail [Insert text of current E350 and redesignate as E651; in 1.4, replace ``bulk third-class mail'' with ``bulk rate Standard Mail (A)''; in 3.9, replace ``third-class mail'' with ``Standard Mail (A)''; revise the rest of E651 as follows:] 1.0 Basic Standards 1.1 Rate Application Regular, Nonprofit, and Enhanced Carrier Route Standard Mail meeting the basic standards in E611 and E612 may qualify for the destination BMC, SCF, or DDU entry rates if deposited at the correct destination postal facility, subject to the general standards below and the specific standards in 5.0, 6.0, and 7.0, respectively. Only one destination reduction may be claimed for each mailpiece. * * * * * 5.0 DBMC Discount [In 5.1, replace ``L708'' with ``L602.''] * * * * * 5.2 Eligibility [Add the following text after the first sentence:] * * * All pieces in an ADC or AADC sack or tray are eligible for the DBMC discount if the ADC or AADC facility ZIP Code (as shown on Line 1 of the corresponding container label) is within the service area of the BMC at which the sack or tray is deposited. All pieces in a palletized ADC package are eligible for the DBMC discount if the ADC facility that is the destination of the package is within the service area of the BMC at which it is deposited. [Replace current 5.3 with new 5.3 as follows:] 5.3 Separate Containers Separate mixed ADC or mixed AADC sacks or trays must be prepared for pieces eligible for and claimed at the DBMC rate and for pieces not claimed at the DBMC rate. Otherwise applicable restrictions (e.g., minimum volume, number of less-than-full trays) are excepted when necessary to comply with this standard. Alternatively, the mailer may waive this separation if no pieces in the resulting mixed ADC or mixed AADC containers are claimed at the DBMC rate. Separate destination BMC sacks or pallets are not required for machinable parcels claimed at the DBMC rate. * * * * * 6.0 DSCF DISCOUNT 6.1 Definition For this standard, destination sectional center facility (DSCF) refers to the facilities listed in L002, Column C. 6.2 Eligibility Pieces in a mailing that meet the standards in 1.0 through 4.0 and 6.0 are eligible for the DSCF rate when deposited at a DSCF, addressed for delivery within that facility's service area, and placed in other than an ADC, AADC, mixed ADC, or mixed AADC tray or sack, or BMC sack or pallet (as permitted by the standards for the rate claimed) that is labeled to that DSCF or to a postal facility within its service area. DSCF rate mail may also be eligible for a presort or automation discount subject to the corresponding standards. * * * * * 7.0 DDU Discount 7.1 Definition For this standard, destination delivery unit (DDU) refers to the facility designated by the USPS district drop shipment coordinator (for automation rate Standard Mail) or the facility (post office, branch, station, etc.) where the carrier cases mail for delivery to the addresses on pieces in the mailing (for other Standard Mail (A)). * * * * * [Remove 7.3.] E652 Destination Entry--Parcel Post [Insert text of current E450 and redesignate as E652; in 1.4, replace ``fourth-class'' with ``Standard Mail (B)''; no other change in text.] E670 Nonprofit Standard Mail [Insert text of current E370 and redesignate as E670; in 1.1, 1.3, 2.1, 3.1, 3.3, 4.1, 4.2, 5.1, 5.2, 5.3, 5.4, 5.4a, 5.4b, 5.4c, 5.4d(1), 5.6a, 5.6b, 5.6b(1), 5.6b(2), 5.6b(3), 5.6e, 5.8, 5.9, 5.10, 5.10c, 5.11, 5.12, 6.0, 7.1, 7.3, 8.1, 8.3, 9.1, 9.2, 9.3, 9.4, 11.1, and 11.4, replace ``[s]pecial bulk third-class rate[s],'' ``special bulk rate[s],'' or ``special rate[s]'' with ``Nonprofit Standard Mail rate[s]''; in 1.3, replace ``for all bulk third-class mail in E311 and E312'' with ``in E611 and E612''; in 3.3, 5.4d(2), 5.6b, 5.11, 9.2, and 9.3b, replace ``third-class'' with ``Standard Mail (A)''; in 5.8d, replace the reference ``E211.11.0'' with ``E211''; in 5.10c, replace the reference ``E370.5.0'' with ``5.0''; in 9.2, replace ``First-'' with ``First-Class'' and ``regular'' with ``Regular or Enhanced Carrier Route''; no other change in text.] F Forwarding and Related Services F000 Basic Services F010 Basic Information [In 3.0d, replace ``fourth-class'' and ``third-class'' with ``Standard Mail (B)'' and ``Standard Mail (A),'' respectively; in Exhibit 4.2, 5.2 (heading and text), 5.2a, 5.2b, 5.2e, 5.2f, 5.2g, and 6.1, replace ``[S]econd-[C]lass [[M]ail]'' with ``Periodicals''; in 4.4, replace the reference ``M011'' with ``M012''; in 4.6b, 5.2e, the table following 5.2g, 6.1, 7.1, and 8.1e, replace ``third- or fourth-class'' with ``Standard Mail''; in 4.6d, 5.3b, 5.4 (heading and text), 5.4b, 5.4c, 5.4d, 5.4e, and 6.3, replace ``[F]ourth-[C]lass [[M]ail]'' with ``Standard Mail (B)''; in 5.3 (heading and text), 5.3a, 5.3f, 5.3g, the table following 5.3g, 6.2, 8.1a, 8.1b, and 8.1e, replace ``[T]hird- [C]lass [[M]ail]'' with ``Standard Mail (A)''; in 7.1a and 7.2, replace ``second, third-, or fourth-class'' with ``Periodicals or Standard Mail''; in 7.4, replace ``special fourth-class'' with ``Special Standard Mail''; in 8.1e, replace ``third- and fourth-class'' with ``Standard Mail''; no other change in text.] F020 Forwarding [In 2.3, 2.4, and 2.6, replace ``First-, second-, and fourth-class mail [,] and [all] single-piece rate third-class mail'' with ``First-Class, Periodicals, Standard Mail (B), and single-piece rate Standard Mail (A)''; in 3.4 (heading and text), replace ``Second-[C]lass'' with ``Periodicals''; in 3.5 (heading and text), replace ``Third-[C]lass [mail],'' ``fourth-class,'' and ``Special Fourth-Class'' with ``Standard Mail (A),'' ``Standard Mail (B),'' and ``Special Standard Mail,'' respectively; in 3.6 (heading and text), replace ``[F]ourth- [C]lass [mail]'' with ``Standard Mail (B)''; no other change in text.] [[Page 10142]] F030 Address Correction, Address Change, and Return Services [In 1.2 (heading and text) and 2.3 (heading and text), replace ``[S]econd-[C]lass'' with ``Periodicals''; in 1.3, replace ``third- and fourth-class mail'' and ``Express Mail, First-, third-, or fourth-class mail'' with ``Standard Mail'' and ``Express Mail, First-Class Mail, and Standard Mail,'' respectively; in 3.2d, replace ``third-class mail'' with ``Standard Mail (A)''; in 3.2e, replace ``fourth-class mail'' with ``Standard Mail (B)''; no other change in text.] G General Information * * * * * G020 Mailing Standards [In 2.2, replace ``mailing statement'' with ``postage statement''; no other change.] * * * * * L LABELING LISTS L000 General Use L001 Optional Multi-ZIP Coded Post Offices--Preferred Periodicals and Nonprofit Standard Mail Only [Amend the heading as follows; no change to list entries.] As permitted by the standards for the rate claimed, Preferred Periodicals mailings may be sorted to the following multi-ZIP Coded cities. * * * * * [Replace current L002 as follows:] L002 3-Digit ZIP Code Prefix Matrix This table provides information about 3-digit ZIP Code prefixes as follows: ------------------------------------------------------------------------ Column A For 3- Column B For 3- digit digit/scheme Column C For SCF 3-Digit ZIP destinations, destinations, destinations, code prefix label container label container label container to to to ------------------------------------------------------------------------ 001 X 002 X 003 X 004............ WESTCHESTER NY WESTCHESTER NY SCF WESTCHESTER 004. 004. NY 105. 005............ MID-ISLAND NY 005 MID-ISLAND NY 005 SCF MID-ISLAND NY 117. 006............ SAN JUAN PR 006.. SAN JUAN PR 006 S SCF SAN JUAN PR 006. 007............ SAN JUAN PR 007.. SAN JUAN PR 006 S SCF SAN JUAN PR 006. 008............ (1).............. SAN JUAN PR 006 S (1). 009............ SAN JUAN PR 009 U SAN JUAN PR 006 S SCF SAN JUAN PR 006. 010............ SPRINGFIELD MA SPRINGFIELD MA SCF SPRINGFIELD 010. 010 S. MA 010. 011............ SPRINGFIELD MA SPRINGFIELD MA SCF SPRINGFIELD 011 U. 010 S. MA 010. 012............ PITTSFIELD MA 012 PITTSFIELD MA 012 PITTSFIELD MA 012 D. 013............ SPRINGFIELD MA SPRINGFIELD MA SCF SPRINFIELD MA 013. 010 S. 010. 014............ WORCESTER MA 014. WORCESTER MA 015 SCF WORCESTER MA S. 015. 015............ WORCESTER MA 015. WORCESTER MA 015 SCF WORCESTER MA S. 015. 016............ WORCESTER MA 016 WORCESTER MA 016. SCF WORCESTER MA U. 015. 017............ WORCESTER MA 017. WORCESTER MA 015 SCF WORCESTER MA S. 015. 018............ MIDDLESEX-ESSX MA MIDDLESEX-ESSX MA SCF MIDDLESEX- 018. 018 S. ESSX MA 018. 019............ MIDDLESEX-ESSX MA MIDDLESEX-ESSX MA SCF MIDDLESEX- 019. 018 S. ESSX MA 018. 020............ BROCKTON MA 020.. BROCKTON MA 023 S SCF BROCKTON MA 023. 021............ BOSTON MA 021 U.. BOSTON MA 021 S.. SCF BOSTON MA 021. 022............ BOSTON MA 022 U.. BOSTON MA 021 S.. SCF BOSTON MA 021. 023............ BROCKTON MA 023.. BROCKTON MA 023 S SCF BROCKTON MA 023. 024............ BROCKTON MA 024 U BROCKTON MA 023 S SCF BROCKTON MA 023. 025............ BUZZARDS BAY MA BUZZARDS BAY MA SCF BUZZARDS BAY 025. 025 S. MA 025. 026............ BUZZARDS BAY MA BUZZARDS BAY MAY SCF BUZZARDS BAY 026. 025 S. MA 025. 027............ PROVIDENCE RI 027 PROVIDENCE RI 028 SCF PROVIDENCE RI S. 028. 028............ PROVIDENCE RI 028 PROVIDENCE RI 028 SCF PROVIDENCE RI S. 028. 029............ PROVIDENCE RI 029 PROVIDENCE RI 029 SCF PROVIDENCE RI U. 028. 030............ MANCHESTER NH 030 MANCHESTER NH 030 SCF MANCHESTER NH 030. 031............ MANCHESTER NH 031 MANCHESTER NH 031 SCF MANCHESTER NH U. 030. 032............ MANCHESTER NH 032 MANCHESTER NH 032 SCF MANCHESTER NH 030. 033............ CONCORD NH 033 U. CONCORD NH 033... SCF MANCHESTER NH 030. 034............ MANCHESTER NH 034 MANCHESTER NH 034 SCF MANCHESTER NH 030. 035............ WHITE RVR JCT VT WHITE RVR JCT VT SCF WHITE RVR JCT 035. 051 S. VT 050. SCHEME B 036............ WHITE RVR JCT 036 WHITE RVR JCT VT SCF WHITE RVR JCT 051 S. VT 050. SCHEME B 037............ WHITE RVR JCT 037 WHITE RVR JCT VT SCF WHITE RVR JCT 050 S. VT 050. SCHEME C......... 038............ PORTSMOUTH NH 038 PORTSMOUTH NH 038 SCF PORTSMOUTH NH S. 038. 039............ PORTSMOUTH NH 039 PORTSMOUTH NH 038 SCF PORTSMOUTH NH S. 038. 040............ PORTLAND ME 040.. PORTLAND ME 040.. SCF PORTLAND ME 040. 041............ PORTLAND ME 041 U PORTLAND ME 041.. SCF PORTLAND ME 040. 042............ PORTLAND ME 042.. PORTLAND ME 042.. SCF PORTLAND ME 040. 043............ PORTLAND ME 043.. PORTLAND ME 043 S SCF PORTLAND ME 040. 044............ BANGOR ME 044.... BANGOR ME 044.... SCF BANGOR ME 044. 045............ PORTLAND ME 045.. PORTLAND ME 043 S SCF PORTLAND ME 040 046............ BANGOR ME 046.... BANGOR ME 046.... SCF BANGOR ME 044. 047............ BANGOR ME 047.... BANGOR ME 047.... SCF BANGOR ME 044. 048............ PORTLAND ME 048.. PORTLAND ME 048.. SCF PORTLAND ME 040 049............ BANGOR ME 049.... BANGOR ME 049.... SCF BANGOR ME 044. [[Page 10143]] 050............ WHITE RVR JCT VT WHITE RVR JCT VT SCF WHITE RVR JCT 050. 050 S. VT 050. SCHEME C 051............ WHITE RVR JCT VT WHITE RVR JCT VT SCF WHITE RVR JCT 051. 051 S. VT 050. SCHEME B 052............ WHITE RVR JCT VT WHITE RVR JCT VT SCF WHITE RVR JCT 052. 051 S. VT 050. SCHEME B 053............ WHITE RVR JCT VT WHITE RVR JCT VT SCF WHITE RVR JCT 053. 051 S. VT 050. SCHEME B 054............ BURLINGTON VT 054 BURLINGTON VT 054 SCF BURLINGTON VT S. 054. 055............ MIDDLESEX-ESSX MA MIDDLESEX-ESSX MA SCF MIDDLESEX- 055. 018 S. ESSX MA 018. 056............ BURLINGTON VT 056 BURLINGTON VT 054 SCF BURLINGTON VT S. 054. 057............ WHITE RVR JCT VT WHITE RVR JCT VT SCF WHITE RVR JCT 057. 057 S. VT 050. SCHEME A 058............ WHITE RVR JCT VT WHITE RVR JCT VT SCF WHITE RVR JCT 058. 057 S. VT 050. SCHEME A 059............ WHITE RVR JCT VT WHITE RVR JCT VT SCF WHITE RVR JCT 059. 051 S. VT 050. SCHEME B 060............ HARTFORD CT 060.. HARTFORD CT 060.. SCF HARTFORD CT 060. 061............ HARTFORD CT 061 U HARTFORD CT 061.. SCF HARTFORD CT 060. 062............ HARTFORD CT 062.. HARTFORD CT 062.. SCF HARTFORD CT 060. 063............ SOUTHERN CT 063.. SOUTHERN CT 063.. SCF SOUTHERN CT 064. 064............ SOUTHERN CT 064.. SOUTHERN CT 064.. SCF SOUTHERN CT 064. 065............ NEW HAVEN CT 065 NEW HAVEN CT 065. SCF SOUTHERN CT U. 064. 066............ BRIDGEPORT CT 066 BRIDGEPORT CT 066 SCF SOUTHERN CT U. 064. 067............ WATERBURY CT 067. WATERBURY CT 067. WATERBURY CT 067.D 068............ STAMFORD CT 068.. STAMFORD CT 068 S SCF STAMFORD CT 068. 069............ STAMFORD CT 069 U STAMFORD CT 068 S SCF STAMFORD CT 068. 070............ NEWARK NJ 070.... NEWARK NJ 070.... SCF NEWARK NJ 070. 071............ NEWARK NJ 071 U.. NEWARK NJ 071.... SCF NEWARK NJ 070. 072............ ELIZABETH NJ 072 ELIZABETH NJ 072. SCF NEWARK NJ 070 U. 073............ JERSEY CITY NJ JERSEY CITY NJ SCF NEWARK NJ 073 U. 073. 070. 074............ PATERSON NJ 074.. HACKENSACK NJ 074 SCF PATERSON NJ S. 074. 075............ PATERSON NJ 075 U PATERSON NJ 075.. SCF PATERSON NJ 074. 076............ HACKENSACK NJ 076 HACKENSACK NJ 074 HACKENSACK NJ S. 076.D 077............ MONMOUTH NJ 077.. KILMER NJ 077 S.. MONMOUTH NJ 077.D 078............ WEST JERSEY NJ WEST JERSEY NJ SCF WEST JERSEY 078. 078 S. NJ 079. 079............ WEST JERSEY NJ WEST JERSEY NJ SCF WEST JERSEY 079. 078 S. NJ 079. 080............ SOUTH JERSEY NJ SOUTH JERSEY NJ SCF SOUTH JERSEY 080. 080 S. NJ 080. SCHEME A 081............ CAMDEN NJ 081 U.. SOUTH JERSEY NJ SCF SOUTH JERSEY 080 S. NJ 080. SCHEME A 082............ SOUTH JERSEY NJ SOUTH JERSEY NJ SCF SOUTH JERSEY 082. 080 S. NJ 080. SCHEME B 083............ SOUTH JERSEY NJ SOUTH JERSEY NJ SCF SOUTH JERSEY 083. 080 S. NJ 080. SCHEME B 084............ ATLANTIC CITY NJ SOUTH JERSEY NJ SCF SOUTH JERSEY 084 U. 080 S. NJ 080. SCHEME B 085............ TRENTON NJ 085... TRENTON NJ 085 S. SCF TRENTON NJ 085. 086............ TRENTON NJ 086 U. TRENTON NJ 085 S. SCF TRENTON NJ 085. 087............ TRENTON NJ 087... TRENTON NJ 085 S. SCF TRENTON NJ 085. 088............ KILMER NJ 088.... KILMER NJ 077 S.. SCF KILMER NJ 088. 089............ NEW BRUNSWICK NJ NEW BRUNSWICK NJ SCF KILMER NJ 089 U. 089. 088. 090............ APO AE 090....... APO AE 090....... 091............ APO AE 091....... APO AE 091....... 092............ APO AE 092....... APO AE 092....... 093............ APO AE 093....... APO AE 093....... ................. 094............ APO/FPO AE 094... APO/FPO AE 094... ................. 095............ FPO AE 095....... FPO AE 095....... ................. 096............ APO/FPO AE 096... APO/FPO AE 096... ................. 097............ APO/FPO AE 097... APO/FPO AE 097... ................. 098............ APO/FPO AE 098... APO/FPO AE 098... ................. 099 X 100............ NEW YORK NY 100 U NEW YORK NY 100.. SCF NEW YORK NY 100. 101............ NEW YORK NY 101 U NEW YORK NY 101.. SCF NEW YORK NY 100. 102............ NEW YORK NY 102 U NEW YORK NY 102.. SCF NEW YORK NY 100. 103............ STATEN ISLAND NY STATEN ISLAND NY STATEN ISLAND NY 103 U. 103. 103 D. 104............ BRONX NY 104 U... BRONX NY 104..... BRONX NY 104 D. 105............ WESTCHESTER NY WESTCHESTER NY SCF WESTCHESTER 105. 105. NY 105. 106............ WHITE PLAINS NY WHITE PLAINS NY SCF WESTCHESTER 106 U. 106. NY 105. 107............ YONKERS NY 107 U. YONKERS NY 107... SCF WESTCHESTER NY 105. 108............ NEW ROCHELLE NY NEW ROCHELLE NY SCF WESTCHESTER 108 U. 108. NY 105. 109............ ROCKLAND NY 109.. ROCKLAND NY 109.. ROCKLAND NY 109 D. [[Page 10144]] 110............ QUEENS NY 110.... QUEENS NY 110 S.. SCF QUEENS NY 110. 111............ LONG ISLAND CITY LONG ISLAND CITY LONG ISLAND CITY NY 111 U. NY 111. NY 111 D. 112............ BROOKLYN NY 112 U BROOKLYN NY 112.. BROOKLYN NY 112 D. 113............ FLUSHING NY 113 U QUEENS NY 110 S.. SCF QUEENS NY 110. 114............ JAMAICA NY 114 U. QUEENS NY 110 S.. SCF QUEENS NY 110. 115............ WESTERN NASSAU NY WESTERN NASSAU NY WESTERN NASSAU NY 115. 115. 115 D. 116............ FAR ROCKAWAY NY QUEENS NY 110 S.. SCF QUEENS NY 116 U. 110. 117............ MID-ISLAND NY 117 MID-ISLAND NY 117 SCF MID-ISLAND NY 117. 118............ HICKSVILLE NY 118 HICKSVILLE NY 118 SCF MID-ISLAND NY U. 117. 119............ MID-ISLAND NY 119 MID-ISLAND NY 119 SCF MID-ISLAND NY 117. 120............ ALBANY NY 120.... ALBANY NY 120 S.. SCF ALBANY NY 120. 121............ ALBANY NY 121.... ALBANY NY 120 S.. SCF ALBANY NY 120. 122............ ALBANY NY 122 U.. ALBANY NY 120 S.. SCF ALBANY NY 120. 123............ SCHENECTADY NY ALBANY NY 120 S.. SCF ALBANY NY 123 U. 120. 124............ MID-HUDSON NY 124 MID-HUDSON NY 124 SCF MID-HUDSON NY S. 125. 125............ MID-HUDSON NY 125 MID-HUDSON NY 124 SCF MID-HUDSON NY S. 125. 126............ POUGHKEEPSIE NY POUGHKEEPSIE NY SCF MID-HUDSON NY 126 U. 126. 125. 127............ MID-HUDSON NY 127 MID-HUDSON NY 124 SCF MID-HUDSON NY S. 125. 128............ GLENS FALLS NY GLENS FALLS NY GLENS FALLS NY 128. 128. 128 D. 129............ PLATTSBURGH NY PLATTSBURGH NY PLATTSBURGH NY 129. 129. 129 D. 130............ SYRACUSE NY 130.. SYRACUSE NY 130 S SCF SYRACUSE NY 130. 131............ SYRACUSE NY 131.. SYRACUSE NY 130 S SCF SYRACUSE NY 130. 132............ SYRACUSE NY 132U. SYRACUSE NY 130 S SCF SYRACUSE NY 130. 133............ UTICA NY 133..... UTICA NY 133 S... SCF UTICA NY 133. 134............ UTICA NY 134..... UTICA NY 133 S... SCF UTICA NY 133. 135............ UTICA NY 135 U... UTICA NY 135..... SCF UTICA NY 133. 136............ WATERTOWN NY 136. WATERTOWN NY 136. WATERTOWN NY 136 D. 137............ BINGHAMTON NY 137 BINGHAMTON NY 137 SCF BINGHAMTON NY S. 137. 138............ BINGHAMTON NY 138 BINGHAMTON NY 137 SCF BINGHAMTON NY S. 137. 139............ BINGHAMTON NY 139 BINGHAMTON NY 137 SCF BINGHAMTON NY U. S. 137. 140............ BUFFALO NY 140... BUFFALO NY 140 S. SCF BUFFALO NY 140. 141............ BUFFALO NY 141... BUFFALY NY 140 S. SCF BUFFALY NY 140. 142............ BUFFALO NY 142 U. BUFFALO NY 140 S. SCF BUFFALO NY 140. 143............ NIAGARA FALLS NY BUFFALO NY 140 S. SCF BUFFALO NY 143 U. 140. 144............ ROCHESTER NY 144. ROCHESTER NY 144. SCF ROCHESTER NY 144. 145............ ROCHESTER NY 145. ROCHESTER NY 145. SCF ROCHESTER NY 144. 146............ ROCHESTER NY 146 ROCHESTER NY 146. SCF ROCHESTER NY U. 144. 147............ JAMESTOWN NY 147. JAMESTOWN NY 147. JAMESTOWN NY 147 D. 148............ ELMIRA NY 148.... ELMIRA NY 148.... SCF ELMIRA NY 148. 149............ ELMIRA NY 149 U.. ELMIRA NY 149.... SCF ELMIRA NY 148. 150............ PITTSBURGH PA 150 PITTSBURGH PA 150 SCF PITTSBURGH PA 150. 151............ PITTSBURGH PA 151 PITTSBURGH PA 151 SCF PITTSBURGH PA 150. 152............ PITTSBURGH PA 152 SCF PITTSBURGH PA 150.. 153............ PITTSBURGH PA 153 PITTSBURGH PA 153 SCF PITTSBURGH PA 150. 154............ PITTSBURGH PA 154 PITTSBURGH PA 154 SCF PITTSBURGH PA 150. 155............ JOHNSTOWN PA 155. JOHNSTOWN PA 155 SCF JOHNSTOWN PA S. 159. 156............ GREENSBURG PA 156 GREENSBURG PA 156 GREENSBURG PA 156 D. 157............ JOHNSTOWN PA 157. JOHNSTOWN PA 155 SCF JOHNSTOWN PA S. 159. 158............ DUBOIS PA 158.... DUBOIS PA 158.... DUBOIS PA 158 D. 159............ JOHNSTOWN PA 159. JOHNSTOWN PA 159. SCF JOHNSTOWN PA 159. 160............ NEW CASTLE PA 160 NEW CASTLE PA 160 SCF NEW CASTLE PA 161. 161............ NEW CASTLE PA 161 NEW CASTLE PA 161 SCF NEW CASTLE PA 161. 162............ NEW CASTLE PA 162 NEW CASTLE PA 162 SCF NEW CASTLE PA 161. 163............ OIL CITY PA 163.. OIL CITY PA 163.. OIL CITY PA 163.D 164............ ERIE PA 164...... ERIE PA 164 S.... SCF ERIE PA 164. 165............ ERIE PA 165 U.... ERIE PA 164 S.... SCF ERIE PA 164. 166............ ALTOONA PA 166... ALTOONA PA 166... SCF ALTOONA PA 166. 167............ BRADFORD PA 167.. BRADFORD PA 167.. BRADFORD PA 167.D 168............ ALTOONA PA 168... ALTOONA PA 168... SCF ALTOONA PA 166. 169............ WILLIAMSPORT PA WILLIAMSPORT PA SCF WILLIAMSPORT 169. 169 S. PA 177. 170............ HARRISBURG PA 170 HARRISBURG PA 170 SCF HARRISBURG PA 170. 171............ HARRISBURG PA 171 HARRISBURG PA 171 SCF HARRISBURG PA U. 170. 172............ HARRISBURG PA 172 HARRISBURG PA 172 SCF HARRISBURG PA 170. 173............ LANCASTER PA 173. LANCASTER PA 173. SCF LANCASTER PA 173. 174............ YORK PA 174 U.... YORK PA 174...... SCF LANCASTER PA 173. 175............ LANCASTER PA 175. LANCASTER PA 175. SCF LANCASTER PA 173. 176............ LANCASTER PA 176 LANCASTER PA 176. SCF LANCASTER PA U. 173. 177............ WILLIAMSPORT PA WILLIAMSPORT PA SCF WILLIAMSPORT 177. 169 S. PA 177. 178............ HARRISBURG PA 178 HARRISBURG PA 178 SCF HARRISBURG PA 170. 179............ READING PA 179... READING PA 179... SCF READING PA 195. 180............ LEHIGH VALLEY PA LEHIGH VALLEY PA SCF LEHIGH VALLEY 180. 180 S. PA 180. 181............ ALLENTOWN PA 181 LEHIGH VALLEY PA SCF LEHIGH VALLEY U. 180 S. PA 180. [[Page 10145]] 182............ WILKES BARRE PA WILKES BARRE PA SCF WILKES BARRE 182. 182. PA 186. 183............ LEHIGH VALLEY PA LEHIGH VALLEY PA SCF LEHIGH VALLEY 183. 180 S. PA 180 184............ SCRANTON PA 184.. SCRANTON PA 184.. SCF SCRANTON PA 184. 185............ SCRANTON PA 185 U SCRANTON PA 185.. SCF SCRANTON PA 184. 186............ WILKES BARRE PA WILKES BARRE PA SCF WILKES BARRE 186. 186. PA 186. 187............ WILKES BARRE PA WILKES BARRE PA SCF WILKES BARRE 187 U. 187. PA 186. 188............ SCRANTON PA 188.. SCRANTON PA 188.. SCF SCRANTON PA 184. 189............ SOUTHEASTERN PA SOUTHEASTERN PA SCF SOUTHEASTERN 189. 189. PA 189. 190............ PHILADELPHIA PA PHILADELPHIA PA SCF PHILADELPHIA 190. 190. PA 190. 191............ PHILADELPHIA PA PHILADELPHIA PA SCF PHILADELPHIA 191 U. 191 S. PA 190. 192............ PHILADELPHIA PA PHILADELPHIA PA SCF PHILADELPHIA 192. 191 S. PA 190. 193............ SOUTHEASTERN PA SOUTHEASTERN PA SCF SOUTHEASTERN 193. 193 S. PA 189. 194............ SOUTHEASTERN PA SOUTHEASTERN PA SCF SOUTHEASTERN 194. 193 S. PA 189. 195............ READING PA 195... READING PA 195... SCF READING PA 195. 196............ READING PA 196 U. READING PA 196... SCF READING PA 195. 197............ WILMINGTON DE 197 WILMINGTON DE 197 SCF WILMINGTON DE S. 197. 198............ WILMINGTON DE 198 WILMINGTON DE 197 SCF WILMINGTON DE U. S. 197. 199............ WILMINGTON DE 199 WILMINGTON DE 197 SCF WILMINGTON DE S. 197. 200............ WASHINGTON DC 200 WASHINGTON DC 200 SCF WASHINGTON DC U. 200. 201............ NORTHERN VA 201.. NORTHERN VA 201.. SCF NORTHERN VA 220. 202............ WASHINGTON DC 202 WASHINGTON DC 202 SCF WASHINGTON DC S. 200. 203............ WASHINGTON DC 203 WASHINGTON DC 202 SCF WASHINGTON DC S. 200. 204............ WASHINGTON DC 204 WASHINGTON DC 202 SCF WASHINGTON DC S. 200. 205............ WASHINGTON DC 205 WASHINGTON DC 202 SCF WASHINGTON DC S. 200. 206............ SOUTHERN MD 206.. SOUTHERN MD 206.. SCF SOUTHERN MD 206. 207............ SOUTHERN MD 207.. SOUTHERN MD 207.. SCF SOUTHERN MD 206. 208............ SUBURBAN MD 208.. SUBURBAN MD 208 S SCF SUBURBAN MD 208. 209............ SIVLER SPRING MD SUBURBAN MD 208 S SCF SUBURBAN MD 209 U. 208. 210............ BALTIMORE MD 210. BALTIMORE MD 210 SCF BALTIMORE MD S. 210. 211............ BALTIMORE MD 211. BALTIMORE MD 210 SCF BALTIMORE MD S. 210. 212............ BALTIMORE MD 212 BALTIMORE MD 212. SCF BALTIMORE MD U. 210. 213X 214............ ANNAPOLIS MD 214 ANNAPOLIS MD 214. SCF BALTIMORE MD U. 210. 215............ CUMBERLAND MD 215 CUMBERLAND MD 215 SCF CUMBERLAND MD 215. 216............ EASTON MD 216.... EASTON MD 216.... EASTON MD 216.D 217............ FREDERICK MD 217. FREDERICK MD 217. FREDERICK MD 217.D 218............ SALISBURY MD 218. SALISBURY MD 218. SALISBURY MD 218.D 219............ BALTIMORE MD 219. BALTIMORE MD 210 SCF BALTIMORE MD S. 210. 220............ NORTHERN VA 220.. NORTHERN VA 220.. SCF NORTHERN VA 220. 221............ NORTHERN VA 221.. NORTHERN VA 221.. SCF NORTHERN VA 220. 222............ ARLINGTON VA 222 ARLINGTON VA 222. SCF NORTHERN VA U. 220. 223............ ALEXANDRIA VA 223 ALEXANDRIA VA 223 SCF NORTHERN VA U. 220. 224............ RICHMOND VA 224.. RICHMOND VA 224 S SCF RICHMOND VA SCHEME B 230. 225............ RICHMOND VA 225.. RICHMOND VA 224 S SCF RICHMOND VA SCHEME B 230. 226............ WINCHESTER VA 226 WINCHESTER VA 226 WINCHESTER VA 226.D 227............ CULPEPER VA 227.. CULPEPER VA 227.. CULPEPER VA 227.D 228............ CHARLOTTESVILLE CHARLOTTESVILLE SCF VA 228. VA 228. CHARLOTTESVILLE VA 229. 229............ CHARLOTTESVILLE CHARLOTTESVILLE SCF VA 229. VA 229. CHARLOTTESVILLE VA 229. 230............ RICHMOND VA 230.. RICHMOND VA 230 S SCF RICHMOND VA SCHEME A 230. 231............ RICHMOND VA 231.. RICHMOND VA 230 S SCF RICHMOND VA SCHEME A 230. 232............ RICHMOND VA 232 U RICHMOND VA 232.. SCF RICHMOND VA 230. 233............ NORFOLK VA 233... NORFOLK VA 233 S. SCF NORFOLK VA 233. 234............ NORFOLK VA 234... NORFOLK VA 233 S. SCF NORFOLK VA 233. 235............ NORFOLK VA 235 U. NORFOLF VA 233 S. SCF NORFOLK VA 233. 236............ NORFOLK VA 236... NORFOLK VA 233 S. SCF NORFOLK VA 233. 237............ PORTSMOUTH VA 237 NORFOLK VA 233 S. SCF NORFOLK VA U. 233. 238............ RICHMOND VA 238.. RICHMOND VA 224 S SCF RICHMOND VA SCHEME B 230. 239............ FARMVILLE VA 239. FARMVILLE VA 239. FARMVILLE VA 239.D 240............ ROANOKE VA 240... ROANOKE VA 240 S. SCF ROANOKE VA 240. 241............ ROANOKE VA 241... ROANOKE VA 240 S. SCF ROANOKE VA 240. 242............ BRISTOL VA 242... BRISTOL VA 242... BRISTOL VA 242.D 243............ ROANOKE VA 243... ROANOKE VA 243... SCF ROANOKE VA 240. 244............ CHARLOTTESVILLE CHARLOTTESVILLE SCF VA 244. VA 244. CHARLOTTESVILLE VA 229. 245............ LYNCHBURG VA 245. LYNCHBURG VA 245. LYNCHBURG VA 245.D 246............ BLUEFIELD WV 246. BLUEFIELD WV 246. SCF BLUEFIELD WV 247. 247............ BLUEFIELD WV 247. BLUEFIELD WV 247. SCF BLUEFIELD WV 247. 248............ BLUEFIELD WV 248. BLUEFIELD WV 248. SCF BLUEFIELD WV 247. [[Page 10146]] 249............ LEWISBURG WV 249. LEWISBURG WV 249. LEWISBURG WV 249.D 250............ CHARLESTON WV 250 CHARLESTON WV 250 SCF CHARLESTON WV S. 250. 251............ CHARLESTON WV 251 CHARLESTON WV 250 SCF CHARLESTON WV S. 250. 252............ CHARLESTON WV 252 CHARLESTON WV 250 SCF CHARLESTON WV S. 250. 253............ CHARLESTON WV 253 CHARLESTON WV 253 SCF CHARLESTON WV U. 250. 254............ MARTINSBURG WV MARTINSBURG WV MARTINSBURG WV 254. 254. 254.D 255............ HUNTINGTON WV 255 HUNTINGTON WV 255 SCF HUNTINGTON WV 255. 256............ HUNTINGTON WV 256 HUNTINGTON WV 256 SCF HUNTINGTON WV 255. 257............ HUNTINGTON WV 257 HUNTINGTON WV 257 SCF HUNTINGTON WV U. 255. 258............ BECKLEY WV 258... BECKLEY WV 258... SCF BECKLEY WV 258. 259............ BECKLEY WV 259... BECKLEY WV 259... SCF BECKLEY WV 258. 260............ WHEELING WV 260.. WHEELING WV 260.. WHEELING WV 260.D 261............ PARKERSBURG WV PARKERSBURG WV PARKERSBURG WV 261. 261. 261.D 262............ CLARKSBURG WV 262 CLARKSBURG WV 262 SCF CLARKSBURG WV 263. 263............ CLARKSBURG WV 263 CLARKSBURG WV 263 SCF CLARKSBURG WV 263. 264............ CLARKSBURG WV 264 CLARKSBURG WV 264 SCF CLARKSBURG WV 263. 265............ CLARKSBURG WV 265 CLARKSBURG WV 265 SCF CLARKSBURG WV 263. 266............ GASSAWAY WV 266.. GASSAWAY WV 266.. GASSAWAY WV 266.D 267............ CUMBERLAND MD 267 CUMBERLAND MD 267 SCF CUMBERLAND MD 215. 268............ PETERSBURG WV 268 PETERSBURG WV 268 PETERSBURG WV 268.D 269 X 270............ GREENSBORO NC 270 GREENSBORO NC 270 SCF GREENSBORO NC 270. 271............ WINSTON-SALEM NC WINSTON-SALEM NC SCF GREENSBORO NC 271 U. 271. 270. 272............ GREENSBORO NC 272 GREENSBORO NC 272 SCF GREENSBORO NC 270. 273............ GREENSBORO NC 273 GREENSBORO NC 273 SCF GREENSBORO NC 270. 274............ GREENSBORO NC 274 GREENSBORO NC 274 SCF GREENSBORO NC U. 270. 275............ RALEIGH NC 275... RALEIGH NC 275... SCF RALEIGH NC 275. 276............ RALEIGH NC 276 U. RALEIGH NC 276... SCF RALEIGH NC 275. 277............ DURHAM NC 277 U.. DURHAM NC 277.... SCF RALEIGH NC 275. 278............ ROCKY MOUNT NC ROCKY MOUNT NC SCF ROCKY MOUNT 278. 278 S. NC 278. 279............ ROCKY MOUNT NC ROCKY MOUNT NC SCF ROCKY MOUNT 279. 278 S. NC 278. 280............ CHARLOTTE NC 280. CHARLOTTE NC 280 SCF CHARLOTTE NC S. 280. 281............ CHARLOTTE NC 281. CHARLOTTE NC 280 SCF CHARLOTTE NC S. 280. 282............ CHARLOTTE NC 282 CHARLOTTE NC 282. SCF CHARLOTTE NC U. 280. 283............ FAYETTEVILLE NC FAYETTEVILLE NC SCF FAYETTEVILLE 283. 283. NC 283. 284............ FAYETTEVILLE NC FAYETTEVILLE NC SCF FAYETTEVILLE 284. 284. NC 283. 285............ KINSTON NC 285... KINSTON NC 285... KINSTON NC 285.D 286............ HICKORY NC 286... HICKORY NC 286... HICKORY NC 286.D 287............ ASHEVILLE NC 287. ASHEVILLE NC 287. SCF ASHEVILLE NC 287. 288............ ASHEVILLE NC 288 ASHEVILLE NC 288. SCF ASHEVILLE NC U. 287. 289............ ASHEVILLE NC 289. ASHEVILLE NC 289. SCF ASHEVILLE NC 287. 290............ COLUMBIA SC 290.. COLUMBIA SC 290 S SCF COLUMBIA SC 290. 291............ COLUMBIA SC 291.. COLUMBIA SC 290 S SCF COLUMBIA SC 290. 292............ COLUMBIA SC 292 U COLUMBIA SC 292.. SCF COLUMBIA SC 290. 293............ GREENVILLE SC 293 GREENVILLE SC 296 SCF GREENVILLE SC