96-20815. Changes in Domestic Mail Rates and Classifications  

  • [Federal Register Volume 61, Number 159 (Thursday, August 15, 1996)]
    [Notices]
    [Pages 42464-42476]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-20815]
    
    
    
    [[Page 42463]]
    
    
    _______________________________________________________________________
    
    Part II
    
    
    
    
    
    Postal Service
    
    
    
    
    
    _______________________________________________________________________
    
    
    
    Changes in Domestic Mail Rates and Classification; Notice
    
    Federal Register / Vol. 61, No. 159 / Thursday, August 15, 1996 / 
    Notices
    
    [[Page 42464]]
    
    
    
    POSTAL SERVICE
    
    
    Changes in Domestic Mail Rates and Classifications
    
    AGENCY: Postal Service.
    
    ACTION: Notice of implementation of changes in certain domestic mail 
    rates and classification schedules.
    
    -----------------------------------------------------------------------
    
    SUMMARY: This notice sets forth the changes in rates and 
    classifications regarding preferred rate mail to be implemented as a 
    result of the decision of the Governors of the Postal Service on phase 
    two of classification reform, and the changes in preferred rates to be 
    implemented as a result of moving to the next step of phasing.
    
    EFFECTIVE DATE: October 6, 1996.
    
    FOR FURTHER INFORMATION CONTACT: Eric Koetting, (202) 268-2992.
    
    SUPPLEMENTARY INFORMATION: On April 4, 1996, 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 regarding certain types of 
    preferred rate mail (``Classification Reform II (Nonprofit Mail)'', PRC 
    Docket No. MC96-2. The PRC published a notice in the Federal Register 
    on April 11, 1996 (61 FR 16129-16146) describing the Postal Service's 
    request and offering interested parties an opportunity to intervene.
        On July 19, 1996, the PRC issued an Opinion and Recommended 
    Decision in Docket No. MC96-2. The PRC's recommendations very closely 
    tracked the Postal Service's proposals, with the exception that the 
    Commission deferred action on the minor changes proposed regarding the 
    Classroom subclass of Periodicals mail. On August 5, 1996, the 
    Governors of the Postal Service, pursuant to their authority under 39 
    U.S.C. 3625, approved the permanent rate and classification changes 
    recommended by the PRC in Docket No. MC96-2. A copy of the attachments 
    to that Decision, presenting the permanent rate and classification 
    changes approved by the Governors, is set forth below.
        Also on August 5, 1996, the Board of Governors of the Postal 
    Service, pursuant to its authority under 39 U.S.C. 3625(f), determined 
    to implement the permanent rate and classification changes approved by 
    the Governors effective at 12:01 a.m. on October 6, 1996 (Resolution 
    No. 96-4). The Board also determined in Resolution No. 96-4 to exercise 
    its authority under 39 U.S.C. 3642 to establish temporary phased rates 
    for FY 1997 at Step 4 of the phasing schedules for some, but not all, 
    preferred rates.
        Because of the restrictions placed by 39 U.S.C. 3942(d) on the 
    level of temporary phased rates that can be implemented for non-letter-
    shaped mail in the nonprofit subclasses of Standard Mail, the Board did 
    not implement temporary phased rates for rate cells effected by that 
    subsection. Rates for those rate cells will be implemented at the full 
    rate levels (Step 6) approved by the Governors as permanent rates. 
    Although these Step 6 rates will be higher than the otherwise 
    applicable Step 4 rates, they are still lower than the Step 4 rates in 
    the Docket No. R94-1 phasing schedules. In this respect, they are 
    consistent with the higher level of mailer preparation associated with 
    classification reform. A copy of the attachment to Resolution No. 96-4, 
    presenting the preferred rate phasing schedules, is also set forth 
    below. For those rate elements in the phasing schedules for the 
    nonprofit categories of Standard Mail which display ``N/A'' (for ``not 
    applicable'') under Step 4, the rates to be implemented on October 6, 
    1996, will be the rates shown as Step 6. For all other preferred rates, 
    the rates to be implemented on October 6, 1996, will be the rates shown 
    as Step 4.
        In accordance with the Decision of the Governors and Resolution No. 
    96-4, the Postal Service hereby gives notice that the rate and 
    classification changes set forth below will become effective at 12:01 
    a.m. on October 6, 1996. Implementing regulations also become effective 
    at that time, as noted elsewhere in this issue.
    Stanley F. Mires,
    Chief Counsel, Legislative.
    
    Attachment A to the Decision of the Governors, Docket No. MC96-2 
    Attachment B to the Decision of the Governors, Docket No. MC96-2 
    Attachment One to Resolution No. 96-4
    
    Attachment A to the Decision of the Governors
    
    Changes in Permanent Rates
    
    Docket No. MC96-2
    
    Standard Mail Rate Schedule 321.4A Nonprofit Subclass
    
    Presort Categories \1\ Full Rates
    
    ------------------------------------------------------------------------
                                                                    Proposed
                                                                      rate  
                                                                    (cents) 
    ------------------------------------------------------------------------
    Letter Size:                                                            
      Piece Rate:                                                           
        Basic....................................................       13.8
        3/5-Digit................................................       12.0
      Destination Entry Discount per Piece:                                 
        BMC......................................................        1.3
        SCF......................................................        1.8
    Non-Letter Size:                                                        
      Piece Rate:                                                           
        Minimum per Piece: \2\                                              
            Basic................................................       20.1
            3/5-Digit............................................       14.9
        Destination Entry Discount per Piece:                               
            BMC..................................................        1.3
            SCF..................................................        1.8
      Pound Rate \2\.............................................       48.4
        Plus per Piece Rate:                                                
            Basic................................................       10.0
            3/5-Digit............................................        4.8
        Destination Entry Discount per Pound:                               
            BMC..................................................        6.2
            SCF..................................................        8.8
    ------------------------------------------------------------------------
    
    Schedule 321.4A Notes
    
        \1\ A fee of $85.00 must be paid once each 12-month period for 
    each bulk mailing permit.
        \2\ Mailer pays either the minimum piece rate or the pound rate, 
    whichever is higher.
    
    Standard Mail Rate Schedule 321.4B Nonprofit Subclass
    
    Automation Categories \1\ Full Rates
    
    ------------------------------------------------------------------------
                                                                    Proposed
                                                                      Rate  
                                                                    (cents) 
    ------------------------------------------------------------------------
    Letter Size: \2\                                                        
      Piece Rate:                                                           
        Basic Letter \3\.........................................       10.5
        3-Digit Letter \4\.......................................       10.1
        5-Digit Letter \5\.......................................        8.8
      Destination Entry Discount per Piece:                                 
        BMC......................................................        1.3
        SCF......................................................        1.8
    Flat Size: \6\                                                          
      Piece Rate:                                                           
        Minimum per Piece: \7\                                              
            Basic Flat \8\.......................................       17.7
            3/5-Digit Flat \9\...................................       12.5
        Destination Entry Discount per Piece:                               
            BMC..................................................        1.3
            SCF..................................................        1.8
      Pound Rate \7\.............................................       48.4
        Plus per Piece Rate:                                                
            Basic Flat...........................................        7.6
            3/5-Digit Flat.......................................        2.4
        Destination Entry Discount per Pound:                               
            BMC..................................................        6.2
            SCF..................................................        8.8
    ------------------------------------------------------------------------
    
    Schedule 321.4B Notes
    
        \1\A fee of $85.00 must be paid once each 12-month period for 
    each bulk mailing permit.
        \2\ For letter-size automation pieces meeting applicable Postal 
    Service regulations.
    
    [[Page 42465]]
    
        \3\ Rate applies to letter-size automation mail not mailed at 3-
    digit, 5-digit or carrier route rates.
        \4\ Rate applies to letter-size automation mail presorted to 
    single or multiple three-digit ZIP Code destinations as prescribed 
    by the Postal Service.
        \5\ Rate applies to letter-size automation mail presorted to 
    single or multiple five-digit ZIP Code destinations as prescribed by 
    the Postal Service.
        \6\ For flat-size automation mail meeting applicable Postal 
    Service regulations.
        \7\ Mailer pays minimum piece rate or pound rate, whichever is 
    higher.
        \8\ Rate applies to flat-size automation mail not mailed at 3/5-
    digit rate.
        \9\ Rate applies to flat-size automation mail presorted to 
    single or multiple three- and five-digit ZIP Code destinations as 
    specified by the Postal Service.
    
    Standard Mail Rate Schedule 321.5 Nonprofit Enhanced Carrier Route 
    Subclass \1\
    
    Full Rates
    
    ------------------------------------------------------------------------
                                                                    Proposed
                                                                      rate  
                                                                    (cents) 
    ------------------------------------------------------------------------
    Letter Size:                                                            
      Piece Rate:                                                           
            Basic................................................        9.9
            Basic Automated Letter \2\...........................        8.5
            High Density.........................................        9.3
            Saturation...........................................        8.7
    Destination Entry Discount per Piece:                                   
        BMC......................................................        1.3
            SCF..................................................        1.8
            DDU \3\..............................................        2.4
    Non-Letter Size:                                                        
      Piece Rate:                                                           
        Minimum per Piece: \4\                                              
            Basic................................................      10.7#
            High Density.........................................       10.0
            Saturation...........................................        9.4
        Destination Entry Discount per Piece:                               
            BMC..................................................        1.3
            SCF..................................................        1.8
            DDU \3\..............................................        2.4
      Pound Rate \4\.............................................       45.1
        Plus per Piece Rate:                                                
            Basic................................................        1.3
            High Density.........................................        0.6
            Saturation...........................................        0.0
        Destination Entry Discount per Pound:                               
            BMC..................................................        6.2
            SCF..................................................        8.8
            DDU \3\..............................................       11.4
    ------------------------------------------------------------------------
    
    Schedule 321.5 Notes
    
        \1\ A fee of $85.00 must be paid each 12-month period for each 
    bulk mailing permit.
        \2\ Rate applies to letter-size automation mail presorted to 
    routes specified by the Postal Service.
        \3\ Applies only to enhanced carrier route mail.
        \4\ Mailer pays either the minimum piece rate or the pound rate, 
    whichever is higher.
    
    Periodicals Rate Schedule 423.2 Within County
    
    Full Rates
    
    ------------------------------------------------------------------------
                                                Postage rate unit     Cents 
    ------------------------------------------------------------------------
    Per Pound:                                                              
      General...............................  Pound................     12.6
      Delivery Office \1\...................  Pound................     11.6
    Per Piece:                                                              
      Required Presort......................  Piece................      8.2
      Carrier Route Presort.................  Piece................      4.4
    Per Piece Discounts:                                                    
      Delivery Office \2\...................  Piece................      0.3
      High Density \3\......................  Piece................      0.5
      Saturation............................  Piece................      0.7
      Automation Discounts for Automation                                   
       Compatible Mail \4\                                                  
        From Required:                                                      
            3-Digit Prebarcoded Letter Size.  Piece................      0.4
            5-Digit Prebarcoded Letter Size.  Piece................      1.7
            3/5 Prebarcoded Flats...........  Piece................     1.5 
    ------------------------------------------------------------------------
    \1\ Applicable only to the pound charge of carrier route (including high
      density and saturation) presorted pieces to be delivered within the   
      delivery area of the originating post office.                         
    \2\ Applicable only to carrier presorted pieces to be delivered within  
      the delivery area of the originating post office.                     
    \3\ Applicable only to high density mail, deducted from carrier         
      presorted pieces.                                                     
    \4\ For automation compatible pieces meeting applicable Postal Service  
      regulations.                                                          
    
    Periodicals Rate Schedule 423.3 Publications of Authorized 
    Nonprofit Organizations \10\
    
    Full Rates \1\
    
    ------------------------------------------------------------------------
                                                Postage rate unit     Cents 
    ------------------------------------------------------------------------
    Per Pound:                                                              
      Nonadvertising portion:...............  Pound................     14.2
      Advertising portion: \9\                                              
        Delivery Office \2\.................  Pound................     16.9
            SCF \3\.........................  Pound................     19.0
            1&2.............................  Pound................     21.4
            3...............................  Pound................     22.4
            4...............................  Pound................     25.1
            5...............................  Pound................     29.2
            6...............................  Pound................     33.6
            7...............................  Pound................     38.8
            8...............................  Pound................     43.2
    Per Piece:                                                              
      Less Nonadvertising Factor of \4\.....  .....................      4.2
      Required Preparation \5\..............  Piece................     21.9
      Presorted to 3-digit city/5-digit.....  Piece................     17.4
      Presorted to Carrier Route............  Piece................     10.7
      Discounts:                                                            
        Prepared to Delivery Office \2\.....  Piece................      1.2
        Prepared to SCF \3\.................  Piece................      0.6
        High Density \6\....................  Piece................      0.7
        Saturation \7\......................  Piece................      2.1
      Automation Discounts for Automation                                   
       Compatible Mail: \8\                                                 
        From Required:                                                      
            Prebarcoded Letter Size.........  Piece................      3.0
            Prebarcoded Flats...............  Piece................      2.4
        From 3/5 Digit:                                                     
            3-Digit Prebarcoded Letter Size.  Piece................      2.3
            5-Digit Prebarcoded Letter Size.  Piece................      2.3
            Prebarcoded Flats...............  Piece................      2.4
    ------------------------------------------------------------------------
    
    Schedule 423.3 Notes
    
        \1\ Charges are computed by adding the appropriate per-piece 
    charge to the sum of the nonadvertising portion and the advertising 
    portion, as applicable.
        \2\ Applies to carrier route (including high density and 
    saturation) mail delivered within the delivery area of the 
    originating post office.
        \3\ Applies to mail delivered within the SCF area of the 
    originating SCF office.
        \4\ For postage calculation, multiply the proportion of 
    nonadvertising content by this factor and subtract from the 
    applicable piece rate.
        \5\ Mail presorted to 3-digit (other than 3-digit city), SCF, 
    states, or mixed states.
        \6\ Applicable to high density mail, deducted from carrier route 
    presort rate.
        \7\ Applicable to saturation mail, deducted from carrier route 
    presort rate.
        \8\ For automation compatible mail meeting applicable Postal 
    Service regulations.
        \9\ Not applicable to publications containing 10 percent or less 
    advertising content.
        \10\ If qualified, nonprofit publications may use Within-County 
    rates for applicable portions of a mailing.
    
    Attachment B to the Decision of the Governors
    
    Changes in the Domestic Mail Classification Schedule
    
    Docket No. MC96-2
        Amend the Standard Mail Classification Schedule by Inserting the 
    Italicized Text and Deleting the Text in Brackets, as Follows:
    * * * * *
    321.1  Single Piece Subclass
        321.11  Definition. The Single Piece subclass consists of Standard 
    Mail weighing less than 16 ounces that is not mailed under sections 
    321.2, 321.3, 321.4, 321.5 or 323.
    * * * * *
    321.2  Regular Subclass
        321.21  General. [Definition.] The Regular subclass consists of 
    Standard
    
    [[Page 42466]]
    
    Mail weighing less than 16 ounces that is not mailed under sections 
    321.1, 321.3, 321.4, 321.5 or 323. [, and that:
    
        a. Is prepared in a mailing of at least 200 addressed pieces or 
    50 pounds of addressed pieces;
        b. Is presorted, marked, and presented as prescribed by the 
    Postal Service; and
        c. Meets the machinability, addressing, and other preparation 
    requirements prescribed by the Postal Service.]
    
        321.22  [Regular] Presort Rate Categories.
        321.221  General. The presort rate categories apply to Regular 
    subclass mail that:
        a. Is prepared in a mailing of at least 200 addressed pieces or 50 
    pounds of addressed pieces;
        b. Is presorted, marked, and presented as prescribed by the Postal 
    Service; and
        c. Meets the machinability, addressing, and other preparation 
    requirements prescribed by the Postal Service.
        321.222[1]  Basic [Sortation] Rate Categor[y]ies. The basic rate 
    categories apply to presort rate category mail not mailed under section 
    321.223. [Mailers must sort Regular subclass mail as prescribed by the 
    Postal Service. Mail which is not presorted to three-digit or five-
    digit ZIP Code areas or to carrier routes qualifies for the basic rates 
    in Rate Schedule 321.2A.]
    
        {Ed. Note: Existing 321.222 is renumbered 321.232 with 
    modifications}
    
        321.223  Three- and Five-Digit [Presort Level] Rate Categor[y]ies. 
    The three- and five-digit [presort level] rate categor[y]ies appl[ies]y 
    to presort rate category [Regular subclass] mail presorted to single or 
    multiple three- and five-digit ZIP Code destinations[,] as prescribed 
    by the Postal Service.
    
        {Ed. Note: Existing 321.23 is renumbered 321.24}
    321.23  Automation Rate Categories
        321.231  General. The automation rate categories apply to Regular 
    subclass mail that:
        a. Is prepared in a mailing of at least 200 addressed pieces or 50 
    pounds of addressed pieces;
        b. Is presorted, marked, and presented as prescribed by the Postal 
    Service;
        c. Bears a barcode representing not more than 11 digits (not 
    including ``correction'' digits) as prescribed by the Postal Service;
        d. Meets the machinability, addressing, barcoding, and other 
    preparation requirements prescribed by the Postal Service.
        [321.222] 321.232  Basic [Sortation, Pre-]Barcoded Rate Category. 
    The basic [sortation, pre-]barcoded rate category applies to letter-
    size automation rate category mail not mailed under section 321.233 or 
    321.234. [mail mailed under section 321.21 which bears a barcode 
    representing not more than 11 digits (not including ``correction'' 
    digits) as prescribed by the Postal Service, and which meets the 
    machinability, addressing, and barcoding specifications, and other 
    preparation requirements prescribed by the Postal Service.]
        [321.224] 321.233  Three-Digit [Presort Level, Pre-]Barcoded Rate 
    Category. The three-digit [presort level, pre-]barcoded rate category 
    applies to letter-size automation rate category mail [mailed under 
    section 321.21 which is] presorted to single or multiple three-digit 
    ZIP Code destinations as prescribed by the Postal Service. [three 
    digits, which bears a barcode representing not more than 11 digits (not 
    including ``correction'' digits) as prescribed by the Postal Service, 
    and which meets the machinability, addressing, and barcoding 
    specifications and other preparation requirements prescribed by the 
    Postal Service.]
        [321.225] 321.234  Five-Digit [Presort Level, Pre-]Barcoded Rate 
    Category. The five-digit [presort level, pre-]barcoded rate category 
    applies to letter-size automation rate category mail [mailed under 
    section 321.21 which is] presorted to single or multiple five-digit ZIP 
    Code destinations as prescribed by the Postal Service. [five digits, 
    which bears a barcode representing not more than 11 digits (not 
    including ``correction'' digits) as prescribed by the Postal Service, 
    and which meets the machinability, addressing, and barcoding 
    specifications and other preparation requirements prescribed by the 
    Postal Service.]
        321.235  Basic Barcoded Flats Rate Category. The basic barcoded 
    flats rate category applies to flat-size automation rate category mail 
    not mailed under section 321.236.
        [321.226] 321.236  Three- and Five-Digit [Presort Level, Pre-
    ]Barcoded Flats Rate Category. The three- and five-digit [presort 
    level, pre-]barcoded flats rate category applies to flat-size 
    automation rate category mail [mailed under section 321.21 which is] 
    presorted to single or multiple three- and five-digit ZIP Code 
    destinations as prescribed by the Postal Service. [,which bears a 
    barcode representing not more than 11 digits (not including 
    ``correction'' digits) as prescribed by the Postal Service, and which 
    meets the machinability, addressing, and barcoding specifications and 
    other preparation requirements prescribed by the Postal Service.]
        [321.23] 321.24  Destination Entry Discounts. Destination entry 
    discounts apply to Regular subclass mail prepared as prescribed by the 
    Postal Service and addressed for delivery within the service area of 
    the BMC (or auxiliary service facility), or sectional center facility 
    (SCF), at which it is entered, as defined by the Postal Service.
    321.3  Enhanced Carrier Route Subclass
        321.31  Definition. The Enhanced Carrier Route subclass consists of 
    Standard Mail weighing less than 16 ounces that is not mailed under 
    section 321.1, 321.2, 321.4, 321.5 or 323, and that:
    
        a. Is prepared in a mailing of at least 200 addressed pieces or 
    50 pounds of addressed pieces;
        b. Is prepared, marked, and presented as prescribed by the 
    Postal Service;
        c. Is presorted to carrier routes as prescribed by the Postal 
    Service;
        d. Is sequenced as prescribed by the Postal Service; and
        e. Meets the machinability, addressing, and other preparation 
    requirements prescribed by the Postal Service.
    * * * * *
    321.4  Nonprofit Subclass
    321.41  [Definition
        321.411]  General. The Nonprofit subclass consists of Standard Mail 
    weighing less than 16 ounces that is not mailed under section 321.1, 
    321.2, 321.3, 321.5 or 323, and that is [prepared in quantities of at 
    least 50 pounds or 200 pieces, presorted and marked as prescribed by 
    the Postal Service, and] mailed by authorized nonprofit organizations 
    or associations of the following types:
        a. Religious, as defined in section 1009,
        b. Educational, as defined in section 1009,
        c. Scientific, as defined in section 1009,
        d. Philanthropic, as defined in section 1009,
        e. Agricultural, as defined in section 1009,
        f. Labor, as defined in section 1009,
        g. Veterans', as defined in section 1009,
        h. Fraternal, as defined in section 1009,
        i. Qualified political committees,
        j. State or local voting registration officials when making a 
    mailing required or authorized by the National Voter Registration Act 
    of 1993.
        321.411[2]  Qualified Political Committees. [Nonprofit 
    Organizations and Associations. Nonprofit organizations or associations 
    are
    
    [[Page 42467]]
    
    organizations or associations not organized for profit, none of the net 
    income of which benefits any private stockholder or individual, and 
    which meet the qualifications set forth below for each type of 
    organization or association. The standard of primary purpose applies to 
    each type of organization or association, except veterans' and 
    fraternal. The standard of primary purpose requires that each type of 
    organization or association be both organized and operated for the 
    primary purpose. The following are the types of organizations or 
    associations which may qualify as authorized nonprofit organizations or 
    associations.
        a. Religious. A nonprofit organization whose primary purpose is one 
    of the following:
        i. To conduct religious worship;
        ii. To support the religious activities of nonprofit organizations 
    whose primary purpose is to conduct religious worship;
        iii. To perform instruction in, to disseminate information about, 
    or otherwise to further the teaching of particular religious faiths or 
    tenets.
        b. Educational. A nonprofit organization whose primary purpose is 
    one of the following:
        i. The instruction or training of the individual for the purpose of 
    improving or developing his capabilities;
        ii. The instruction of the public on subjects beneficial to the 
    community. An organization may be educational even though it advocates 
    a particular position or viewpoint so long as it presents a 
    sufficiently full and fair exposition of the pertinent facts to permit 
    an individual or the public to form an independent opinion or 
    conclusion. On the other hand, an organization is not educational if 
    its principal function is the mere presentation of unsupported opinion.
        c. Scientific. A nonprofit organization whose primary purpose is 
    one of the following:
        i. To conduct research in the applied, pure or natural sciences;
        ii. To disseminate systematized technical information dealing with 
    applied, pure or natural sciences.
        d. Philanthropic. A nonprofit organization primarily organized and 
    operated for purposes beneficial to the public. Philanthropic 
    organizations include, but are not limited to, organizations which are 
    organized for:
        i. Relief of the poor and distressed or of the underprivileged;
        ii. Advancement of religion;
        iii. Advancement of education or science;
        iv. Erection or maintenance of public buildings, monuments, or 
    works;
        v. Lessening of the burdens of government;
        vi. Promotion of social welfare by organizations designed to 
    accomplish any of the above purposes or:
        (A) To lessen neighborhood tensions;
        (B) To eliminate prejudice and discrimination;
        (C) To defend human and civil rights secured by law; or
        (D) To combat community deterioration and juvenile delinquency.
        e. Agricultural. A nonprofit organization whose primary purpose is 
    the betterment of the conditions of those engaged in agricultural 
    pursuits, the improvement of the grade of their products, and the 
    development of a higher degree of efficiency in agriculture. The 
    organization may advance agricultural interests through educational 
    activities; the holding of agricultural fairs; the collection and 
    dissemination of information concerning cultivation of the soil and its 
    fruits or the harvesting of marine resources; the rearing, feeding, and 
    management of livestock, poultry, and bees, or other activities 
    relating to agricultural interests. The term agricultural nonprofit 
    organization also includes any nonprofit organization whose primary 
    purpose is the collection and dissemination of information or materials 
    relating to agricultural pursuits.
        f. Labor. A nonprofit organization whose primary purpose is the 
    betterment of the conditions of workers. Labor organizations include, 
    but are not limited to, organizations in which employees or workmen 
    participate, whose primary purpose is to deal with employers concerning 
    grievances, labor disputes, wages, hours of employment and working 
    conditions.
        g. Veterans'. A nonprofit organization of veterans of the armed 
    services of the United States, or an auxiliary unit or society of, or a 
    trust or foundation for, any such post or organization.
        h. Fraternal. A nonprofit organization which meets all of the 
    following criteria:
        i. Has as its primary purpose the fostering of brotherhood and 
    mutual benefits among its members;
        ii. Is organized under a lodge or chapter system with a 
    representative form of government;
        iii. Follows a ritualistic format; and
        iv. Is comprised of members who are elected to membership by vote 
    of the members.
        i. Qualified political committees.] The term ``qualified political 
    committee'' means a national or State committee of a political party, 
    the Republican and Democratic Senatorial Campaign Committees, the 
    Democratic National Congressional Committee, and the National 
    Republican Congressional Committee:
        [i.]a. The term ``national committee'' means the organization 
    which, by virtue of the bylaws of a political party, is responsible for 
    the day-to-day operation of such political party at the national level; 
    and
        [ii.]b. The term ``State committee'' means the organization which, 
    by virtue of the bylaws of a political party, is responsible for the 
    day-to-day operation of such political party at the State level.
        321.412[3] Limitation on Authorization. An organization authorized 
    to mail at the nonprofit Standard rates for qualified nonprofit 
    organizations may mail only its own matter at these rates. An 
    organization may not delegate or lend the use of its permit to mail at 
    special Standard rates to any other person, organization or 
    association.
    321.42  [Nonprofit] Presort Rate Categories
        321.421  General. The presort rate categories apply to Nonprofit 
    subclass mail that:
        a. Is prepared in a mailing of at least 200 addressed pieces or 50 
    pounds of addressed pieces;
        b. Is presorted, marked, and presented as prescribed by the Postal 
    Service; and
        c. Meets the machinability, addressing, and other preparation 
    requirements prescribed by the Postal Service.
        321.422[1]  Basic [Sortation] Rate Categories[y]. The basic rate 
    categories apply to presort rate category mail not mailed under section 
    321.423. [Mailers must sort Nonprofit subclass mail as prescribed by 
    the Postal Service. Mail which is not presorted to three-digit or five-
    digit ZIP Code areas or to carrier routes qualifies for the basic rates 
    in Rate Schedule 321.4.]
        [321.422 Basic Sortation, ZIP + 4 Rate Category. The basic 
    sortation, ZIP + 4 rate category applies to mail mailed under section 
    321.421 which bears a proper ZIP + 4 code and which meets the 
    machinability, address readability and other preparation requirements 
    prescribed by the Postal Service.]
    
        [Ed. Note: Existing 321.423 is renumbered 321.432 with 
    modifications]
    
        321.423[4]  Three- and Five-Digit [Presort Level] Rate 
    Categories[y]. The three- and five-digit [presort level] rate 
    categories[y] apply[ies] to presort rate category [Nonprofit subclass] 
    mail [which is] presorted to single or multiple three-[digit or] and 
    five-digit ZIP Code destinations [areas. The mail must be prepared in 
    the manner] as prescribed by the Postal Service.
    
    [[Page 42468]]
    
    321.43  Automation Rate Categories
        321.431  General. The automation rate categories apply to Nonprofit 
    subclass mail that:
        a. Is prepared in a mailing of at least 200 addressed pieces or 50 
    pounds of addressed pieces;
        b. Is presorted, marked, and presented as prescribed by the Postal 
    Service;
        c. Bears a barcode representing not more than 11 digits (not 
    including ``correction'' digits) as prescribed by the Postal Service;
        d. Meets the machinability, addressing, barcoding, and other 
    preparation requirements prescribed by the Postal Service.
        321.432[23]  Basic [Sortation, Pre-] Barcoded Rate Category. The 
    basic [sortation, pre-]barcoded rate category applies to letter-size 
    automation rate category mail not mailed under section 321.433 or 
    321.434. [321.421 which bears a barcode representing not more than 11 
    digits (not including ``correction'' digits) as prescribed by the 
    Postal Service, and which meets the machinability, addressing, and 
    barcoding specifications and other preparation requirements prescribed 
    by the Postal Service.]
        [321.425  Three- and Five-Digit Presort Level, ZIP + 4 Rate 
    Category. The three- and five-digit presort level, ZIP + 4 rate 
    category applies to mail mailed under section 321.424 which bears a 
    proper ZIP + 4 code and which meets the machinability, address 
    readability and other preparation requirements prescribed by the Postal 
    Service.]
        321.433[26]  Three-Digit [Presort Level, Pre-]Barcoded Rate 
    Category. The three-digit [presort level, pre-]barcoded rate category 
    applies to letter-size automation rate category mail [mailed under 
    section 321.424 which is] presorted to single or multiple three-digit 
    ZIP Code destinations [three digits, which bears a barcode representing 
    not more than 11 digits (not including ``correction'' digits) as 
    prescribed by the Postal Service, and which meets the machinability, 
    addressing, and barcoding specifications and other preparation 
    requirements] as prescribed by the Postal Service.
        321.434[27]  Five-Digit [Presort Level, Pre-]Barcoded Rate 
    Category. The five-digit [presort level, pre-]barcoded rate category 
    applies to letter-size automation rate category mail [mailed under 
    section 321.424 which is] presorted to single or multiple five-digit 
    ZIP Code destinations [five digits, which bears a barcode representing 
    not more than 11 digits (not including ``correction'' digits) as 
    prescribed by the Postal Service, and which meets the machinability, 
    addressing, and barcoding specifications, and other preparation 
    requirements] as prescribed by the Postal Service.
        [321.428  Carrier Route Presort Level Rate Category. The carrier 
    route presort level rate category applies to Nonprofit subclass mail 
    which is presorted to a carrier route, with at least 10 pieces to each 
    carrier route. The mail must be prepared in the manner prescribed by 
    the Postal Service.]
        321.435[29] Basic Barcoded [Pre-barcoded] Flats Rate Category. The 
    basic barcoded flats rate category applies to flat-size automation rate 
    category mail not mailed under section 321.436. [The pre-barcoded flats 
    rate category applies to Nonprofit subclass flat size pieces which are 
    properly prepared and presorted, bear a barcode as prescribed by the 
    Postal Service, and meet the flats machinability and address 
    readability specifications of the Postal Service. Such flats must be 
    presented for mailing in a manner which does not require cancellation.]
        321.436 Three- and Five-Digit Barcoded Flats Rate Category. The 
    three- and five-digit barcoded flats rate category applies to flat-size 
    automation rate category mail presorted to single or multiple three- 
    and five-digit ZIP Code destinations as prescribed by the Postal 
    Service.
    [321.43 Nonprofit Subclass Discounts
        321.431 Saturation Discount. The saturation discount applies to 
    Nonprofit subclass mail presented in a carrier route presort mailing 
    which is walk sequenced and which meets the saturation and preparation 
    requirements prescribed by the Postal Service.
        321.432 125-Piece Walk-sequence Discount. The 125-piece walk-
    sequence discount applies to Nonprofit subclass mail presented in a 
    carrier route presort mailing which is walk sequenced and contains a 
    minimum of 125 pieces per carrier route, and which meets the 
    preparation requirements prescribed by the Postal Service.]
        321.44[33] Destination Entry Discounts. [The d]Destination entry 
    discounts apply[ies] to Nonprofit subclass mail prepared as prescribed 
    by the Postal Service and addressed [which is destined] for delivery 
    within the service area of the BMC (or auxiliary service facility)[,] 
    or sectional center facility (SCF)[, or destination delivery unit 
    (DDU)] at which it is entered, as defined by the Postal Service.
    321.5 Nonprofit Enhanced Carrier Route Subclass
        321.51 Definition. The Nonprofit Enhanced Carrier Route subclass 
    consists of Standard Mail weighing less than 16 ounces that is not 
    mailed under section 321.1, 321.2, 321.3, 321.4 or 323, that is mailed 
    by authorized nonprofit organizations or associations (as defined in 
    section 321.41) under the terms and limitations stated in section 
    321.412, and that:
        a. Is prepared in a mailing of at least 200 addressed pieces or 50 
    pounds of addressed pieces;
        b. Is prepared, marked, and presented as prescribed by the Postal 
    Service;
        c. Is presorted to carrier routes as prescribed by the Postal 
    Service;
        d. Is sequenced as prescribed by the Postal Service; and
        e. Meets the machinability, addressing, and other preparation 
    requirements prescribed by the Postal Service.
        321.52 Basic Rate Category. The basic rate category applies to 
    Nonprofit Enhanced Carrier Route subclass mail not mailed under section 
    321.53, 321.54 or 321.55.
        321.53 Basic Pre-Barcoded Rate Category. The basic pre-barcoded 
    rate category applies to letter-size Nonprofit Enhanced Carrier Route 
    subclass mail which bears a barcode representing not more than 11 
    digits (not including ``correction'' digits), as prescribed by the 
    Postal Service, and which meets the machinability, addressing, and 
    barcoding specifications and other preparation requirements prescribed 
    by the Postal Service.
        321.54 High Density Rate Category. The high density rate category 
    applies to Nonprofit Enhanced Carrier Route subclass mail presented in 
    walk-sequence order and meeting the high density requirements 
    prescribed by the Postal Service.
        321.55 Saturation Rate Category. The saturation rate category 
    applies to Nonprofit Enhanced Carrier Route subclass mail presented in 
    walk-sequence order and meeting the saturation requirements prescribed 
    by the Postal Service.
        321.56 Destination Entry Discounts. Destination entry discounts 
    apply to Nonprofit Enhanced Carrier Route subclass mail prepared as 
    prescribed by the Postal Service and addressed for delivery within the 
    service area of the BMC (or auxiliary service facility), sectional 
    center facility (SCF), or destination delivery unit (DDU) at which it 
    is entered, as defined by the Postal Service.
    * * * * *
    
    [[Page 42469]]
    
    323.2 Library Subclass
    * * * * *
        323.212 Definition of Nonprofit Organizations and Associations. 
    Nonprofit organizations or associations are defined in section 1009. 
    [organizations or associations not organized for profit, none of the 
    net income of which benefits any private stockholder or individual, and 
    which meet the qualifications set forth below for each type of 
    organization or association. The standard of primary purpose applies to 
    each type of organization or association, except veterans' and 
    fraternal. The standard of primary purposes requires that each type of 
    organization or association be both organized and operated for the 
    primary purpose. The following are the types of organizations or 
    associations which may qualify as authorized nonprofit organizations or 
    associations:
        a. Religious. A nonprofit organization whose primary purpose is one 
    of the following:
        i. To conduct religious worship;
        ii. To support the religious activities of nonprofit organizations 
    whose primary purpose is to conduct religious worship;
        iii. To perform instruction in, to disseminate information about, 
    or otherwise to further the teaching of particular religious faiths or 
    tenets.
        b. Educational. A nonprofit organization whose primary purpose is 
    one of the following:
        i. The instruction or training of the individual for the purpose of 
    improving or developing his capabilities;
        ii. The instruction of the public on subjects beneficial to the 
    community.
        An organization may be educational even though it advocates a 
    particular position or viewpoint so long as it presents a sufficiently 
    full and fair exposition of the pertinent facts to permit an individual 
    or the public to form an independent opinion or conclusion. On the 
    other hand, an organization is not educational if its principal 
    function is the mere presentation of unsupported opinion.
        c. Scientific. A nonprofit organization whose primary purpose is 
    one of the following:
        i. To conduct research in the applied, pure or natural sciences;
        ii. To disseminate systematized technical information dealing with 
    applied, pure or natural sciences.
        d. Philanthropic. A nonprofit organization primarily organized and 
    operated for purposes beneficial to the public. Philanthropic 
    organizations include, but are not limited to, organizations which are 
    organized for:
        i. Relief of the poor and distressed or of the underprivileged;
        ii. Advancement of religion;
        iii. Advancement of education or science;
        iv. Erection or maintenance of public buildings, monuments, or 
    works;
        v. Lessening of the burdens of government;
        vi. Promotion of social welfare by organizations designed to 
    accomplish any of the above purposes or:
        (A) To lessen neighborhood tensions;
        (B) To eliminate prejudice and discrimination;
        (C) To defend human and civil rights secured by law; or
        (D) To combat community deterioration and juvenile delinquency.
        e. Agricultural. A nonprofit organization whose primary purpose is 
    the betterment of the conditions of those engaged in agricultural 
    pursuits, the improvement of the grade of their products, and the 
    development of a higher degree of efficiency in agriculture. The 
    organization may advance agricultural interests through educational 
    activities; the holding of agricultural fairs; the collection and 
    dissemination of information concerning cultivation of the soil and its 
    fruits or the harvesting of marine resources; the rearing, feeding, and 
    management of livestock, poultry, and bees, or other activities 
    relating to agricultural interests. The term agricultural nonprofit 
    organization also includes any nonprofit organization whose primary 
    purpose is the collection and dissemination of information or materials 
    relating to agricultural pursuits.
        f. Labor. A nonprofit organization whose primary purpose is the 
    betterment of the conditions of workers. Labor organizations include, 
    but are not limited to, organizations in which employees or workmen 
    participate, whose primary purpose is to deal with employers concerning 
    grievances, labor disputes, wages, hours of employment and working 
    conditions.
        g. Veterans'. A nonprofit organization of veterans of the armed 
    services of the United States, or an auxiliary unit or society of, or a 
    trust or foundation for, any such post or organization.
        h. Fraternal. A nonprofit organization which meets all of the 
    following criteria:
        i. Has as its primary purpose the fostering of brotherhood and 
    mutual benefits among its members;
        ii. Is organized under a lodge or chapter system with a 
    representative form of government;
        iii. Follows a ritualistic format; and
        iv. Is comprised of members who are elected to membership by vote 
    of the members.]
    * * * * *
    330 Physical Limitations
    331 Size
        Standard Mail may not exceed 108 inches in length and girth 
    combined. Additional size limitations apply to individual Standard Mail 
    subclasses. The maximum size for mail presorted to carrier route in the 
    Enhanced Carrier Route and Nonprofit Enhanced Carrier Route subclasses 
    is 14 inches in length, 11.75 inches in width, and 0.75 inch in 
    thickness. For merchandise samples mailed with detached address cards, 
    the carrier route maximum dimensions apply to the detached address 
    cards and not to the samples.
    * * * * *
    340  Postage and Preparation
    341  Postage
        Postage must be paid as set forth in section 3000. When the postage 
    computed at a Single Piece, Regular, Enhanced Carrier Route, [or] 
    Nonprofit or Nonprofit Enhanced Carrier Route Standard rate is higher 
    than the rate prescribed in any of the Standard subclasses listed in 
    322 or 323 for which the piece also qualifies (or would qualify, except 
    for weight), the piece is eligible for the applicable lower rate. All 
    mail mailed at a bulk or presort rate must have postage paid in a 
    manner not requiring cancellation.
    * * * * *
    344  Attachments and Enclosures
        344.1  Single Piece, Regular, Enhanced Carrier Route, [and] 
    Nonprofit and Nonprofit Enhanced Carrier Route Subclasses (section 321)
    * * * * *
        344.21  General. First-Class Mail or Standard Mail from any of the 
    subclasses listed in section 321 (Single Piece, Regular, Enhanced 
    Carrier Route, [or] Nonprofit or Nonprofit Enhanced Carrier Route) may 
    be attached to or enclosed in Standard Mail mailed under sections 322 
    and 323. The piece must be marked as prescribed by the Postal Service. 
    Except as provided in sections 344.22 and 344.23, additional postage 
    must be paid for the attachment or enclosure as if it had been mailed 
    separately. Otherwise, the entire combined piece is subject to the 
    First-Class or section 321 Standard rate for which it qualifies (unless 
    the rate applicable to the host piece is higher), or, if a combined 
    piece with a section 321 Standard Mail attachment or
    
    [[Page 42470]]
    
    enclosure weighs 16 ounces or more, the piece is subject to the Parcel 
    Post rate for which it qualifies.
    * * * * *
        353.1  Single Piece, Regular, Enhanced Carrier Route, [and] 
    Nonprofit and Nonprofit Enhanced Carrier Route Subclasses (section 321)
        Undeliverable-as-addressed Standard Mail mailed under section 321 
    will be returned on request of the mailer, or forwarded and returned on 
    request of the mailer. Undeliverable-as-addressed combined First-Class 
    and Standard pieces will be returned as prescribed by the Postal 
    Service. The Single Piece Standard rate is charged for each piece 
    receiving return only service. Charges for forwarding-and-return 
    service are assessed only on those pieces which cannot be forwarded and 
    are returned. The charge for those returned pieces is the appropriate 
    Single Piece Standard rate for the piece plus that rate multiplied by a 
    factor equal to the number of section 321 Standard pieces nationwide 
    that are successfully forwarded for every one piece that cannot be 
    forwarded and must be returned.
    * * * * *
    360  Ancillary Services
    361  All Subclasses
        All Standard Mail will receive the following services upon payment 
    of the appropriate fees:
    
    ------------------------------------------------------------------------
                       Service                             Schedule         
    ------------------------------------------------------------------------
    a. Address correction.......................  SS-1                      
    b. Certificates of mailing indicating that a  SS-4                      
     specified number of pieces has been mailed.                            
    ------------------------------------------------------------------------
    
        Certificates of mailing are not available for Regular, Enhanced 
    Carrier Route, [and] Nonprofit and Nonprofit Enhanced Carrier Route 
    subclass mail when postage is paid by permit imprint.
    * * * * *
    370  Rates and Fees
        The rates and fees for Standard Mail are set forth as follows:
    
    ------------------------------------------------------------------------
                                                           Schedule         
    ------------------------------------------------------------------------
    a. Single Piece subclass....................  321.1                     
    b. Regular subclass.........................  321.2                     
    c. Enhanced Carrier Route subclass..........  321.3                     
    d. Nonprofit subclass.......................  321.4                     
    e. Nonprofit Enhanced Carrier Route subclass  321.5                     
    f[e]. Parcel Post subclass                                              
      Basic.....................................  322.1A                    
      Destination BMC...........................  322.1B                    
    g[f]. Bound Printed Matter subclass                                     
      Single Piece..............................  322.3A                    
      Bulk and Carrier Route....................  322.3B                    
    h[g]. Special subclass......................  323.1                     
    i[h]. Library subclass......................  323.2                     
    j[i]. Fees..................................  1000                      
    ------------------------------------------------------------------------
    
    380  Authorizations and Licenses
        381  Regular, Enhanced Carrier Route, [and] Nonprofit and Nonprofit 
    Enhanced Carrier Route Subclasses
        A mailing fee as set forth in Rate Schedule 1000 must be paid once 
    each year by mailers of Regular, Enhanced Carrier Route, [and] 
    Nonprofit and Nonprofit Enhanced Carrier Route subclass mail.
    * * * * *
        Amend the Periodicals Classification Schedule by Inserting the 
    Italicized Text and Deleting the Text in Brackets, as Follows:
    423  Preferred Rate Periodicals
    * * * * *
    423.3  Nonprofit Subclass
        [423.31  Definition.] Nonprofit mail is Preferred Rate Periodicals 
    class mail entered by authorized nonprofit organizations or 
    associations of the following types:
        a. Religious, as defined in section 1009,
        b. Educational, as defined in section 1009,
        c. Scientific, as defined in section 1009,
        d. Philanthropic, as defined in section 1009,
        e. Agricultural, as defined in section 1009,
        f. Labor, as defined in section 1009,
        g. Veterans', as defined in section 1009,
        h. Fraternal, as defined in section 1009, and
        i. Associations of rural electric cooperatives,
        j. One publication, which contains no advertising (except 
    advertising of the publisher) published by the official highway or 
    development agency of a state,
        k. Program announcements or guides published by an educational 
    radio or television agency of a state or political subdivision thereof 
    or by a nonprofit educational radio or television station,
        l. One conservation publication published by an agency of a state 
    which is responsible for management and conservation of the fish or 
    wildlife resources of such state.
        [423.32  Definitions of Nonprofit Organizations and Associations. 
    Nonprofit organizations or associations are organizations or 
    associations not organized for profit, none of the net income of which 
    benefits any private stockholder or individual, and which meet the 
    qualifications set forth below for each type of organization or 
    association. The standard of primary purpose applies to organizations 
    listed under section 423.31a through f. The standard of primary purpose 
    requires that each type of organization or association be both 
    organized and operated for the primary purpose.
        a. Religious. A nonprofit organization whose primary purpose is one 
    of the following:
        i. To conduct religious worship;
        ii. To support the religious activities of nonprofit organizations 
    whose primary purpose is to conduct religious worship;
        iii. To perform instruction in, to disseminate information about, 
    or otherwise to further the teaching of particular religious faiths or 
    tenets.
        b. Educational. A nonprofit organization whose primary purpose is 
    one of the following:
        i. The instruction or training of the individual for the purpose of 
    improving or developing his capabilities;
        ii. The instruction of the public on subjects beneficial to the 
    community.
        An organization may be educational even though it advocates a 
    particular position or viewpoint so long as it presents a sufficiently 
    full and fair exposition of the pertinent facts to permit an individual 
    or the public to form an independent opinion or conclusion. On the 
    other hand, an organization is not educational if its principal 
    function is the mere presentation of unsupported opinion.
        c. Scientific. A nonprofit organization whose primary purpose is 
    one of the following:
        i. To conduct research in the applied, pure or natural sciences;
        ii. To disseminate systematized technical information dealing with 
    applied, pure or natural sciences.
        d. Philanthropic. A nonprofit organization primarily organized and 
    operated for purposes beneficial to the public. Philanthropic 
    organizations include, but are not limited to, organizations which are 
    organized for:
        i. Relief of the poor and distressed or of the underprivileged;
        ii. Advancement of religion;
        iii. Advancement of education or science;
        iv. Erection or maintenance of public buildings, monuments, or 
    works;
        v. Lessening of the burdens of government;
    
    [[Page 42471]]
    
        vi. Promotion of social welfare by organizations designed to 
    accomplish any of the above purposes or;
        (a) To lessen neighborhood tensions;
        (b) To eliminate prejudice and discrimination;
        (c) To defend human and civil rights secured by law; or
        (d) To combat community deterioration and juvenile delinquency.
        e. Agricultural. A nonprofit organization whose primary purpose is 
    the betterment of the conditions of those engaged in agricultural 
    pursuits, the improvement of the grade of their products, and the 
    development of a higher degree of efficiency in agriculture. The 
    organization may advance agricultural interests through educational 
    activities; the holding of agricultural fairs; the collection and 
    dissemination of information concerning cultivation of the soil and its 
    fruits or the harvesting of marine resources; the rearing, feeding, and 
    management of livestock, poultry, and bees, or other activities 
    relating to agricultural interests. The term agricultural nonprofit 
    organization also includes any nonprofit organization whose primary 
    purpose is the collection and dissemination of information or materials 
    relating to agricultural pursuits.
        f. Labor. A nonprofit organization whose primary purpose is the 
    betterment of the conditions of workers. Labor organizations include, 
    but are not limited to, organizations in which employees or workmen 
    participate, whose primary purpose is to deal with employers concerning 
    grievances, labor disputes, wages, hours of employment and working 
    conditions.
        g. Veterans'. A nonprofit organization of veterans of the armed 
    services of the United States, or an auxiliary unit or society of, or a 
    trust or foundation for, any such post or organization.
        h. Fraternal. A nonprofit organization which meets all of the 
    following criteria:
        i. Has as its primary purpose the fostering of brotherhood and 
    mutual benefits among its members;
        ii. Is organized under a lodge or chapter system with a 
    representative form of government;
        iii. Follows a ritualistic format; and
        iv. Is comprised of members who are elected to membership by vote 
    of the members.]
    423.4  Classroom Subclass
        Classroom mail is [of] Preferred Rate Periodicals class mail 
    which[,] consists of religious, educational, or scientific publications 
    designed specifically for use in school classrooms or religious 
    instruction classes.
    * * * * *
    
    423.6  Preferred Rate Pound Rates
    
        For Preferred Rate Periodicals entered under sections 423.3, 423.4 
    and 423.5, an unzoned pound rate applies to the nonadvertising portion. 
    A zoned pound rate applies to the advertising portion and may be 
    reduced by applicable destination entry discounts. The pound rate 
    postage is the sum of the nonadvertising portion charge and the 
    advertising portion charge. For Preferred Rate Periodicals entered 
    under section 423.2, one pound rate applies to the pieces presorted to 
    carrier route to be delivered within the delivery area of the 
    originating post office, and another pound rate applies to all other 
    pieces.
    
    423.7  Preferred Rate Piece Rates
    
        423.71  Basic Rate Category. The basic rate category applies to all 
    Preferred Rate Periodicals not mailed under section 423.72 or 423.73.
        423.72  Three-Digit City and Five-Digit Rate Category. The rates 
    for this category apply to Preferred Rate Periodicals entered under 
    sections 423.3, 423.4. or 423.5 that are presorted to three-digit 
    cities and five-digit ZIP Code destinations as prescribed by the Postal 
    Service.
        423.73  Carrier Route Rate Category. The carrier route rate 
    category applies to Preferred Rate Periodicals presorted to carrier 
    routes as prescribed by the Postal Service.
    [423.6  Preferred Rate Discounts
        423.61  Destination Entry Discounts. Copies of any Preferred Rate 
    Periodicals class mail which are destined for delivery within the 
    destination sectional center facility (SCF) area or the destination 
    delivery unit (DDU) area in which they are entered, as defined by the 
    Postal Service, qualify for the applicable discount as set forth in 
    Rate Schedules 423.2, 423.3, and 423.4.
        423.62  ZIP + 4 and Pre-barcoded Letter Discounts. Copies of any 
    automation compatible Preferred Rate Periodicals class mail which bear 
    a proper ZIP + 4 code, or which bear a barcode representing not more 
    than 11 digits (not including ``correction'' digits) as prescribed by 
    the Postal Service, and which meet the machinability, addressing, and 
    barcoding specifications and other preparation requirements prescribed 
    by the Postal Service qualify for the applicable ZIP + 4 or pre-
    barcoding discounts as set forth in Rate Schedules 423.2, 423.3, and 
    423.4.
        423.63  125-piece Walk-sequence Discount. Copies of Preferred Rate 
    Periodicals class mail presented in mailings which are walk sequenced 
    and contain a minimum of 125 pieces per carrier route and which meet 
    the preparation requirements prescribed by the Postal Service are 
    eligible for the applicable discount set forth in Rate Schedules 423.2, 
    423.3, and 423.4.
        423.64  Saturation Discount. Saturation Preferred Rate Periodicals 
    class mail presented in mailings which are walk sequenced and which 
    meet the saturation and preparation requirements prescribed by the 
    Postal Service qualifies for the applicable discount set forth in Rate 
    Schedules 423.2, 423.3, and 423.4.
        423.65  Pre-barcoded Flats Discounts. Pre-barcoded Preferred Rate 
    Periodicals class flats which are properly prepared and presorted, 
    which bear a barcode as prescribed by the Postal Service, and which 
    meet the flats machinability and address readability specifications of 
    the Postal Service, are eligible for the applicable discounts for pre-
    barcoded flats set forth in Rate Schedules 423.2, 423.3, and 423.4.]
    
    423.8  Preferred Rate Discounts
    
        423.81  Barcoded Letter Discounts. Barcoded letter discounts apply 
    to letter size Preferred Rate Periodicals mailed under sections 423.71 
    and 423.72 which bear a barcode representing not more than 11 digits 
    (not including ``correction'' digits) as prescribed by the Postal 
    Service, and which meet the machinability, addressing, and barcoding 
    specifications and other preparation requirements prescribed by the 
    Postal Service.
        423.82  Barcoded Flats Discounts. Barcoded flats discounts apply to 
    flat size Preferred Rate Periodicals mailed under sections 423.71 and 
    423.72 which bear a barcode representing not more than 11 digits (not 
    including ``correction'' digits) as prescribed by the Postal Service, 
    and meet the flats machinability, addressing, and barcoding 
    specifications and other preparation requirements prescribed by the 
    Postal Service.
        423.83  High Density Discount. The high density discount applies to 
    Preferred Rate Periodicals mailed under section 423.73, presented in 
    walk sequence order, and meeting the high density and preparation 
    requirements prescribed by the Postal Service.
        423.84  Saturation Discount. The saturation discount applies to 
    Preferred Rate Periodicals mailed under section 423.73, presented in 
    walk-sequence order, and meeting the saturation and preparation 
    requirements prescribed by the Postal Service.
    
    [[Page 42472]]
    
        423.85  Destination Entry Discounts. Destination entry discounts 
    apply to Preferred Rate Periodicals which are destined for delivery 
    within the service area of the destination sectional center facility 
    (SCF) or the destination delivery unit (DDU) in which they are entered, 
    as defined by the Postal Service. The DDU discount only applies to 
    Carrier Route rate category mail; the SCF discount is not available for 
    mail entered under section 423.2.
        423.86  Nonadvertising Discount. The nonadvertising discount 
    applies to Preferred Rate Periodicals entered under sections 423.3, 
    423.4, and 423.5 and is determined by multiplying the proportion of 
    nonadvertising content by the discount factor set forth in Rate 
    Schedules 421, 423.3 or 423.4 and subtracting that amount from the 
    applicable piece rate.
    * * * * *
        Amend General Definitions, Terms and Conditions by Inserting the 
    Following New Section 1009:
    
    1009  Nonprofit Organizations and Associations
    
        Nonprofit organizations or associations are organizations or 
    associations not organized for profit, none of the net income of which 
    benefits any private stockholder or individual, and which meet the 
    qualifications set forth below for each type of organization or 
    association. The standard of primary purpose applies to each type of 
    organization or association, except veterans' and fraternal. The 
    standard of primary purpose requires that each type of organization or 
    association be both organized and operated for the primary purpose. The 
    following are the types of organizations or associations which may 
    qualify as authorized nonprofit organizations or associations.
        a. Religious. A nonprofit organization whose primary purpose is one 
    of the following:
        i. To conduct religious worship;
        ii. To support the religious activities of nonprofit organizations 
    whose primary purpose is to conduct religious worship;
        iii. To perform instruction in, to disseminate information about, 
    or otherwise to further the teaching of particular religious faiths or 
    tenets.
        b. Educational. A nonprofit organization whose primary purpose is 
    one of the following:
        i. The instruction or training of the individual for the purpose of 
    improving or developing his capabilities;
        ii. The instruction of the public on subjects beneficial to the 
    community.
        An organization may be educational even though it advocates a 
    particular position or viewpoint so long as it presents a sufficiently 
    full and fair exposition of the pertinent facts to permit an individual 
    or the public to form an independent opinion or conclusion. On the 
    other hand, an organization is not educational if its principal 
    function is the mere presentation of unsupported opinion.
        c. Scientific. A nonprofit organization whose primary purpose is 
    one of the following:
        i. To conduct research in the applied, pure or natural sciences;
        ii. To disseminate systematized technical information dealing with 
    applied, pure or natural sciences.
        d. Philanthropic. A nonprofit organization primarily organized and 
    operated for purposes beneficial to the public. Philanthropic 
    organizations include, but are not limited to, organizations which are 
    organized for:
        i. Relief of the poor and distressed or of the underprivileged;
        ii. Advancement of religion;
        iii. Advancement of education or science;
        iv. Erection or maintenance of public buildings, monuments, or 
    works;
        v. Lessening of the burdens of government;
        vi. Promotion of social welfare by organizations designed to 
    accomplish any of the above purposes or:
        (A) To lessen neighborhood tensions;
        (B) To eliminate prejudice and discrimination;
        (C) To defend human and civil rights secured by law; or
        (D) To combat community deterioration and juvenile delinquency.
        e. Agricultural. A nonprofit organization whose primary purpose is 
    the betterment of the conditions of those engaged in agricultural 
    pursuits, the improvement of the grade of their products, and the 
    development of a higher degree of efficiency in agriculture. The 
    organization may advance agricultural interests through educational 
    activities; the holding of agricultural fairs; the collection and 
    dissemination of information concerning cultivation of the soil and its 
    fruits or the harvesting of marine resources; the rearing, feeding, and 
    management of livestock, poultry, and bees, or other activities 
    relating to agricultural interests. The term agricultural nonprofit 
    organization also includes any nonprofit organization whose primary 
    purpose is the collection and dissemination of information or materials 
    relating to agricultural pursuits.
        f. Labor. A nonprofit organization whose primary purpose is the 
    betterment of the conditions of workers. Labor organizations include, 
    but are not limited to, organizations in which employees or workmen 
    participate, whose primary purpose is to deal with employers concerning 
    grievances, labor disputes, wages, hours of employment and working 
    conditions.
        g. Veterans'. A nonprofit organization of veterans of the armed 
    services of the United States, or an auxiliary unit or society of, or a 
    trust or foundation for, any such post or organization.
        h. Fraternal. A nonprofit organization which meets all of the 
    following criteria:
        i. Has as its primary purpose the fostering of brotherhood and 
    mutual benefits among its members;
        ii. Is organized under a lodge or chapter system with a 
    representative form of government;
        iii. Follows a ritualistic format; and
        iv. Is comprised of members who are elected to membership by vote 
    of the members.
    
    [END]
    
    Attachment One to Resolution No. 96-4
    
    Phasing Schedules Steps 4, 5, and 6
    
    Phasing Schedule (Rate Schedule 321.4A)
    
                                         Standard Nonprofit--Presort Categories                                     
                                                         [Cents]                                                    
    ----------------------------------------------------------------------------------------------------------------
                                                                                  Step 4       Step 5       Step 6  
    ----------------------------------------------------------------------------------------------------------------
    Letter Size:                                                                                                    
        Piece Rate:                                                                                                 
            Basic............................................................         13.2         13.5         13.8
            3/5-Digit........................................................         11.4         11.7         12.0
        Destination Entry Discount per Piece:                                                                       
            BMC..............................................................          1.3          1.3          1.3
    
    [[Page 42473]]
    
                                                                                                                    
            SCF..............................................................          1.8          1.8          1.8
    Non-Letter Size:                                                                                                
        Piece Rate:                                                                                                 
            Minimum per Piece:                                                                                      
                Basic........................................................         19.5         19.8         20.1
                3/5-Digit....................................................          N/A          N/A         14.9
            Destination Entry Discount per Piece:                                                                   
                BMC..........................................................          1.3          1.3          1.3
                SCF..........................................................          1.8          1.8          1.8
        Pound Rate:                                                                                                 
                Basic........................................................         45.5         47.0         48.4
                3/5-Digit....................................................          N/A          N/A         48.4
            Plus per Piece Rate:                                                                                    
                Basic........................................................         10.0         10.0         10.0
                3/5-Digit....................................................          N/A          N/A          4.8
            Destination Entry Discount per Pound:                                                                   
                BMC..........................................................          6.2          6.2          6.2
                SCF..........................................................          8.8          8.8          8.8
    ----------------------------------------------------------------------------------------------------------------
    
    
    
    Phasing Schedule (Rate Schedule 321.4B)
    
                                        Standard Nonprofit--Automation Categories                                   
                                                         [Cents]                                                    
    ----------------------------------------------------------------------------------------------------------------
                                                                                  Step 4       Step 5       Step 6  
    ----------------------------------------------------------------------------------------------------------------
    Letter Size:                                                                                                    
        Piece Rate:                                                                                                 
            Basic Letter.....................................................          9.9         10.2         10.5
            3-Digit Letter...................................................          9.5          9.8         10.1
            5-Digit Letter...................................................          8.2          8.5          8.8
        Destination Entry Discount per Piece:                                                                       
            BMC..............................................................          1.3          1.3          1.3
            SCF..............................................................          1.8          1.8          1.8
    Flat Size:                                                                                                      
        Piece Rate:                                                                                                 
            Minimum per Piece:                                                                                      
                Basic Flat...................................................         17.1         17.4         17.7
                3/5-Digit Flat...............................................          N/A          N/A         12.5
            Destination Entry Discount per Piece:                                                                   
                BMC..........................................................          1.3          1.3          1.3
                SCF..........................................................          1.8          1.8          1.8
        Pound Rate:                                                                                                 
                Basic Flat...................................................         45.5         47.0         48.4
                3/5-Digit Flat...............................................          N/A          N/A         48.4
            Plus per Piece Rate:                                                                                    
                Basic Flat...................................................          7.6          7.6          7.6
                3/5-Digit Flat...............................................          N/A          N/A          2.4
            Destination Entry Discount per Pound:                                                                   
                BMC..........................................................          6.2          6.2          6.2
                SCF..........................................................          8.8          8.8          8.8
    ----------------------------------------------------------------------------------------------------------------
    
    Phasing Schedule (Rate Schedule 321.5)
    
                                        Standard Nonprofit Enhanced Carrier Route                                   
                                                         [Cents]                                                    
    ----------------------------------------------------------------------------------------------------------------
                                                                                  Step 4       Step 5       Step 6  
    ----------------------------------------------------------------------------------------------------------------
    Letter Size:                                                                                                    
        Piece Rate:                                                                                                 
            Basic............................................................          8.7          9.3          9.9
            Basic Automated Letter...........................................          7.9          8.2          8.5
            High-Density.....................................................          8.1          8.7          9.3
            Saturation.......................................................          7.5          8.1          8.7
    
    [[Page 42474]]
    
                                                                                                                    
        Destination Entry Discount per Piece:                                                                       
            BMC..............................................................          1.3          1.3          1.3
            SCF..............................................................          1.8          1.8          1.8
            DDU..............................................................          2.4          2.4          2.4
    Non-Letter Size:                                                                                                
        Piece Rate:                                                                                                 
            Minimum per Piece:                                                                                      
                Basic........................................................          N/A          N/A         10.7
                High Density.................................................          N/A          N/A         10.0
                Saturation...................................................          N/A          N/A          9.4
            Destination Entry Discount per Piece:                                                                   
                BMC..........................................................          N/A          N/A          1.3
                SCF..........................................................          N/A          N/A          1.8
                DDU..........................................................          N/A          N/A          2.4
        Pound Rate:                                                                    N/A          N/A         45.1
            Plus per Piece Rate:                                                                                    
                Basic........................................................          N/A          N/A          1.3
                High Density.................................................          N/A          N/A          0.6
                Saturation...................................................          N/A          N/A          0.0
            Destination Entry Discount per Pound:                                                                   
                BMC..........................................................          N/A          N/A          6.2
                SCF..........................................................          N/A          N/A          8.8
                DDU..........................................................          N/A          N/A         11.4
    ----------------------------------------------------------------------------------------------------------------
    
    
    
    Phasing Schedule (Rate Schedule 323.2)
    
                                               Standard Mail--Library Rate                                          
                                                         [Cents]                                                    
    ----------------------------------------------------------------------------------------------------------------
                                                                                  Step 4       Step 5       Step 6  
    ----------------------------------------------------------------------------------------------------------------
    First Pound..............................................................          112          112          112
    Each Additional Pound through 7 pounds...................................           41           41           42
    Each Additional Pound over 7 pounds......................................           22           22           22
    ----------------------------------------------------------------------------------------------------------------
    
    Phasing Schedule Periodicals Rate Schedule 423.2 Within County
    
    ----------------------------------------------------------------------------------------------------------------
                                                                                  Step 4       Step 5       Step 6  
                                                     Postage rate unit           (cents)      (cents)      (cents)  
    ----------------------------------------------------------------------------------------------------------------
    Per Pound:                                                                                                      
        General.............................  Pound..........................         12.2         12.2         12.6
        Delivery Office.....................  Pound..........................         11.2         11.2         11.6
    Per Piece:                                                                                                      
        Required Presort....................  Piece..........................          8.1          8.2          8.2
        Carrier Route Presort...............  Piece..........................          4.3          4.4          4.4
    Per Piece Discounts:                                                                                            
        Delivery Office.....................  Piece..........................          0.3          0.3          0.3
        High Density........................  Piece..........................          0.5          0.5          0.5
        Saturation..........................  Piece..........................          0.7          0.7          0.7
        Automation Discounts for Automation                                                                         
         Compatible Mail:                                                                                           
            From Required:                                                                                          
                3-Digit Prebarcoded Letter    Piece..........................          0.4          0.4          0.4
                 Size.                                                                                              
                5-Digit Prebarcoded Letter    Piece..........................          1.7          1.7          1.7
                 Size.                                                                                              
                3/5 Prebarcoded Flats.......  Piece..........................          1.5          1.5          1.5
    ----------------------------------------------------------------------------------------------------------------
    
    Phasing Schedule Periodicals Rate Schedule 423.3 Publications of 
    Authorized Nonprofit Organizations
    
    [[Page 42475]]
    
    
    
    ----------------------------------------------------------------------------------------------------------------
                                                                                  Step 4       Step 5       Step 6  
                                                     Postage rate unit           (cents)      (cents)      (cents)  
    ----------------------------------------------------------------------------------------------------------------
    Per Pound:                                                                                                      
        Nonadvertising portion..............  Pound..........................         13.8         14.2         14.2
        Advertising portion:                                                                                        
            Delivery Office.................  Pound..........................         16.9         16.9         16.9
                SCF.........................  Pound..........................         19.0         19.0         19.0
                1&2.........................  Pound..........................         21.4         21.4         21.4
                3...........................  Pound..........................         22.4         22.4         22.4
                4...........................  Pound..........................         25.1         25.1         25.1
                5...........................  Pound..........................         29.2         29.2         29.2
                6...........................  Pound..........................         33.6         33.6         33.6
                7...........................  Pound..........................         38.8         38.8         38.8
                8...........................  Pound..........................         43.2         43.2         43.2
    Per Piece:                                                                                                      
        Less Nonadvertising Factor of.......  ...............................          4.2          4.2          4.2
        Required Preparation................  Piece..........................         21.6         21.7         21.9
        Presorted to 3-digit city/5-digit...  Piece..........................         17.1         17.2         17.4
        Presorted to Carrier Route..........  Piece..........................         10.4         10.5         10.7
        Discounts:                                                                                                  
            Prepared to Delivery Office.....  Piece..........................          1.2          1.2          1.2
            Prepared to SCF.................  Piece..........................          0.6          0.6          0.6
            High Density....................  Piece..........................          0.7          0.7          0.7
            Saturation......................  Piece..........................          2.1          2.1          2.1
        Automation Discounts for Automation                                                                         
         Compatible Mail:                                                                                           
            From Required:                                                                                          
                Prebarcoded Letter Size.....  Piece..........................          3.0          3.0          3.0
                Prebarcoded Flats...........  Piece..........................          2.4          2.4          2.4
            From 3/5 Digit:                                                                                         
                3-Digit Prebarcoded Letter    Piece..........................          2.3          2.3          2.3
                 Size.                                                                                              
                5-Digit Prebarcoded Letter    Piece..........................          2.3          2.3          2.3
                 Size.                                                                                              
                Prebarcoded Flats...........  Piece..........................          2.4          2.4          2.4
    ----------------------------------------------------------------------------------------------------------------
    
    Phasing Schedule Periodicals Rate Schedule 423.4 Classroom Publications
    
    ----------------------------------------------------------------------------------------------------------------
                                                                                  Step 4       Step 5       Step 6  
                                                     Postage rate unit           (cents)      (cents)      (cents)  
    ----------------------------------------------------------------------------------------------------------------
    Per Pound:                                                                                                      
        Nonadvertising portion:.............  Pound..........................         11.0         11.1         11.3
        Advertising portion:                                                                                        
            Delivery Office.................  Pound..........................         18.0         18.0         18.0
                SCF.........................  Pound..........................         19.1         19.1         19.1
                1&2.........................  Pound..........................         21.2         21.2         21.2
                3...........................  Pound..........................         22.3         22.3         22.3
                4...........................  Pound..........................         25.0         25.0         25.0
                5...........................  Pound..........................         29.2         29.2         29.2
                6...........................  Pound..........................         33.5         33.5         33.5
                7...........................  Pound..........................         38.8         38.8         38.8
                8...........................  Pound..........................         43.2         43.2         43.2
    Per Piece:                                                                                                      
        Less Nonadvertising Factor of.......  ...............................          3.5          3.5          3.5
        Required Preparation................  Piece..........................         16.9         17.0         17.1
        Presorted to 3-digit city/5-digit...  Piece..........................         12.6         12.7         12.8
        Presorted to Carrier Route..........  Piece..........................          8.8          8.9          9.0
        Discounts:                                                                                                  
            Prepared to Delivery Office.....  Piece..........................          0.5          0.5          0.5
            Prepared to SCF.................  Piece..........................          0.3          0.3          0.3
            High Density....................  Piece..........................          0.2          0.2          0.2
            Saturation......................  Piece..........................          0.7          0.7          0.7
                                                                                                                    
    
    [[Page 42476]]
    
                                                                                                                    
        Automation Discounts for Automation                                                                         
         Compatible Mail:                                                                                           
            From Required:                                                                                          
                ZIP + 4 Letter Size.........  Piece..........................          0.7          0.7          0.7
                Prebarcoded Letter Size.....  Piece..........................          1.7          1.7          1.7
                Prebarcoded Flats...........  Piece..........................          2.3          2.3          2.3
            From 3/5 Digit:                                                                                         
                ZIP + 4 Letter Size.........  Piece..........................          0.4          0.4          0.4
                3-Digit Prebarcoded Letter    Piece..........................          1.0          1.0          1.0
                 Size.                                                                                              
                5-Digit Prebarcoded Letter    Piece..........................          1.7          1.7          1.7
                 Size.                                                                                              
                Prebarcoded Flats...........  Piece..........................          1.5          1.5          1.5
    ----------------------------------------------------------------------------------------------------------------
    
    
    
    [FR Doc. 96-20815 Filed 8-12-96; 1:21 pm]
    BILLING CODE 7710-12-P
    
    
    

Document Information

Effective Date:
10/6/1996
Published:
08/15/1996
Department:
Postal Service
Entry Type:
Notice
Action:
Notice of implementation of changes in certain domestic mail rates and classification schedules.
Document Number:
96-20815
Dates:
October 6, 1996.
Pages:
42464-42476 (13 pages)
PDF File:
96-20815.pdf