[Federal Register Volume 64, Number 138 (Tuesday, July 20, 1999)]
[Rules and Regulations]
[Pages 38831-38832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18510]
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POSTAL SERVICE
39 CFR Part 111
Domestic Mail Manual Changes To Implement Nonprofit and Classroom
Periodicals Classification Changes and Notice of Refund Procedures
AGENCY: Postal Service.
ACTION: Final rule.
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SUMMARY: This document sets forth the changes to the Domestic Mail
Manual to implement the July 12, 1999, Decision of the Governors of the
United States Postal Service on the Recommended Decision of the Postal
Rate Commission (PRC) on Periodicals Classification Changes. In
addition, it contains procedures for obtaining refunds for the
difference between postage paid on certain mailings at Periodicals
Nonprofit or Classroom rates and postage computed at Periodicals
Regular rates on those same mailings.
EFFECTIVE DATE: August 1, 1999.
FOR FURTHER INFORMATION CONTACT: Jerry Lease, 202-268-5188.
SUPPLEMENTARY INFORMATION: On April 9, 1999, the Postal Service filed
with the PRC a request for a recommended decision on Periodicals
classification changes designed to provide a remedy to a rate anomaly
resulting from the last omnibus rate case, Docket No. R97-1. The PRC
designated the filing as Docket No. MC99-3. On April 23, 1999, the PRC
published a notice of the filing, with a description of the Postal
Service's proposal, in the Federal Register (64 FR 13613).
On June 23, 1999, the PRC issued to the Governors of the Postal
Service its recommended decision on the Postal Service's request. The
PRC recommended the changes proposed by the Postal Service. On July 12,
1999, the Governors of the United States Postal Service voted to
approve the PRC's recommendations, and the Board of Governors set an
effective date of August 1, 1999.
This final rule contains the Domestic Mail Manual (DMM) standards
adopted by the Postal Service to implement the Governors' decision. The
revised DMM standards take effect on August 1, 1999.
Because of the unusual circumstances of this anomaly, the Postal
Service has also decided to make refunds available for the excess of
postage paid using Nonprofit or Classroom rate schedules over postage
computed using the Regular rate schedule. These circumstances include
the following. The anomaly was an unintended byproduct of the highly
complex Periodicals rate design process,
[[Page 38832]]
resulting in higher postage for Preferred rate publications than
Regular rate publications for certain mail with the same
characteristics. Moreover, both the Regular and Preferred rates were
available to the publications affected by the anomaly at the time of
mailing; and mailers would have qualified for the lower Regular rates
if they had surrendered their Nonprofit or Classroom authorizations.
For mailings made prior to August 1, a publisher of a Nonprofit or
Classroom Periodicals publication may request a refund for the
difference between postage paid at Nonprofit or Classroom rates and
postage computed at Regular rates, if the Regular postage is lower. On
April 26, 1999, the Postal Service published a notice in the Federal
Register (see 64 FR 20340-20341) of procedures for tracking differences
in postage between Regular rates and Nonprofit or Classroom rates, for
the purpose of making refunds for mailings made starting April 9, 1999.
The Postal Service has decided that appropriate refunds may be made
back to January 10, 1999.
An application for a refund will consist of a written statement
that the mailer is currently authorized to use either Classroom or
Nonprofit Periodicals rates and wishes to retain that authorization,
but also wishes to be considered under these procedures for a refund to
be calculated with reference to Regular rate postage statements to be
submitted with the refund application and Preferred rate postage
statements on file at the post office. Mailers must use the
instructions published in the April 26, 1999, Federal Register notice.
Some publishers may have already submitted refund requests for mailings
made between April 9, 1999, and August 1, 1999. Refund requests must be
submitted according to published instructions and received no later
than September 15, 1999. No refunds will be given for mailings entered
on or after August 1, 1999, regardless of whether a mailer could have
claimed a lower postage rate.
Under the new rules, the mailer must choose either Regular or
Preferred rates for each issue of a publication and complete the
applicable postage statement, except that a supplemental mailing at
least 10 calendar days after other mailings for the issue can be
treated separately. All postage statements for a particular issue
should be provided with an application for a refund, but a supplemental
mailing at least 10 calendar days after other mailings does not need to
be included in calculating refunds.
List of Subjects in 39 CFR Part 111
Postal Service.
For the reasons discussed above, the Postal Service hereby adopts
the following amendments to the Domestic Mail Manual, which is
incorporated by reference in the Code of Federal Regulations (see 39
CFR Part 111).
PART 111--[AMENDED]
1. The authority citation for 39 CFR Part 111 continues to read as
follows:
Authority: 5 U.S.C. 552(a); 39 U.S.C 101, 401, 403, 404, 3001-
3011, 3201-3219, 3403-3406, 3621, 3626, 5001.
2. Revise the following sections of the Domestic Mail Manual as
follows:
E Eligibility
E200 Periodicals
* * * * *
E270 Preferred Periodicals
* * * * *
2.0 NONPROFIT RATE--BASIC INFORMATION:
* * * * *
[Add new 2.4 as follows:]
2.4 Rate Anomaly
When the Nonprofit postage computed for a single issue is higher
than the Regular postage computed for the same issue, that issue is
eligible for postage at Regular rates. Mailers cannot use different
rate schedules for the same issue, except for a supplemental mailing
for a particular issue entered at least 10 calendar days after other
mailings for that issue. Publications claimed at Regular rates under
this section with an advertising percentage of 10% or less are
considered 100% nonadvertising for Regular rate purposes. Those
publications may use ``0'' as the ``advertising percentage'' when
computing the nonadvertising adjustment to be applied to outside-county
piece rate charges.
* * * * *
5.0 CLASSROOM RATES
* * * * *
[Add new 5.5 as follows:]
5.5 Rate Anomaly
When the Classroom postage computed for a single issue is higher
than the Regular postage computed for the same issue, that issue is
eligible for postage at Regular rates. Mailers cannot use different
rate schedules for the same issue, except for a supplemental mailing
for a particular issue entered at least 10 calendar days after other
mailings for that issue. Publications claimed at Regular rates under
this section with an advertising percentage of 10% or less are
considered 100% nonadvertising for Regular rate purposes. Those
publications may use ``0'' as the ``advertising percentage'' when
computing the nonadvertising adjustment to be applied to outside
county-piece rate charges.
An appropriate amendment to 39 CFR 111.3 will be published to
reflect these changes.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 99-18510 Filed 7-19-99; 8:45 am]
BILLING CODE 7710-12-P
