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POSTAL SERVICE

Veterans Affairs Department

CFR Citation: 39 CFR Part 111

NOTICE: Part IV

DOCUMENT ACTION: Proposed rule.

SUBJECT CATEGORY: Proposed Changes to the Domestic Mail Manual To Implement Docket No. R2001-1

DATES: Comments must be received on or before March 1, 2002.

DOCUMENT SUMMARY: On September 24, 2001, the United States Postal Service, in conformance with sections 3622 and 3623 of the Postal Reorganization Act (39 U.S.C. 101 et seq.), filed a request for a recommended decision by the Postal Rate Commission (PRC) on proposed rate, fee, and classification changes. The PRC designated this filing as Docket No. R20011 and issued a notice of filing in Order No. 1324 on September 26, 2001.

On October 25, 2001, the PRC directed the participants to consider the possibility of a settlement. Noting the extraordinary national events experienced during September, and the potential effects that changed circumstances might have on the Postal Service's request, the PRC requested all participants consider whether substantial agreement on issues and objectives might permit a beneficial resolution of the proceeding.

Counsel for the Postal Service, the Office of the Consumer Advocate, and participating intervenors discussed the issues presented by this case at conferences on October 30, and November 16, 2001, to which all intervenors and the Office of the Consumer Advocate were invited. The Postal Service also consulted with intervenors individually and in smaller groups.

On December 17, 2001, the Postal Service filed a Stipulation and Agreement for settlement of Docket No. R20011, together with a motion for the establishment of preliminary procedures and a schedule. On December 26, 2001, the Postal Service with concurrence of its Board of Governors agreed to changes in the terms of the Stipulation and Agreement. These changes included specifying June 30, 2002, rather than June 2, 2002, as the earliest effective date for rate, fee, and classification changes. The revision also restored the rates for intra and interBMC parcel post back to the levels originally proposed in the September 24, 2001 request. Between December 26, 2001, and January 17, 2002, fifty parties adhered to the terms of the revised settlement by signing the agreement.

On January 17, 2002, the Postal Service filed a second revised Stipulation and Agreement that included several relatively minor changes in the rates proposed for the Enhanced Carrier Route (ECR) subclass of Standard Mail. In all other respects, the Stipulation and Agreement remained the same. Subsequently, six additional parties adhered to the settlement agreement. Only one participant opposed the settlement.

The PRC will hold hearings to consider the opposition to the settlement. It will then issue a recommended decision to the Postal Service Board of Governors, who will act on it. If the recommendations are approved, the Board of Governors will establish an effective date.

At this time, the Postal Service is publishing this proposed rule which provides information on the implementing standards for the rate, fee, and classification changes the Postal Service proposes to adopt if the terms of the second revised Stipulation and Agreement are consistent with the PRC's recommended decision on R20011 and if the Governors of the Postal Service, acting pursuant to 39 U.S.C. 3625, approve that recommended decision.

SUMMARY: Postal Service,

SUPPLEMENTAL INFORMATION

The Postal Service's request in Docket No. R20011 and as amended in the second revised Stipulation and Agreement filed on January 17, 2002, includes classification and rate structure changes, and increases in most existing rate and fee categories. This proposed rule contains the Domestic Mail Manual (DMM) standards the Postal Service would adopt to implement R20011. Part A of this document summarizes the proposed revisions to the DMM by class of mail and special service category. Part B summarizes the proposed changes by DMM module and section. The text of the proposed changes to the DMM standards appear after Part B.

Comments are solicited on the proposed implementing of DMM standards that appear in this proposed rule. As information, the DMM language in this proposed rule incorporates all revisions to the DMM from previously published Federal Register final rules that have taken effect or will take effect on or before the implementation of the rates resulting from the R20011 rate case. As a result, the numbering and the language of the DMM sections in this proposed rule have been synchronized with these final rules and may not match the numbering and language in the current DMM 56.

A 6month phasein period is proposed for mailer implementation of the requirements for formatting cardrate FirstClass Mail; for mail preparation and tray labeling of nonmachinable FirstClass Mail and Standard Mail; and, for the tray labeling changes affecting Standard Mail Enhanced Carrier Route high density and saturation rate letters. Mailers are asked to comment both on the language of these proposed requirements and their ability to meet the proposed 6month time frame.

Although proposed rates, rate categories, and rate structures are included in this proposed rule, they are outside the scope of this rulemaking process because they are still under review by the Postal Rate Commission. Accordingly, comments on whether the current basic automation rate for lettersize FirstClass Mail and Standard Mail should be split into an automated area distribution center (AADC) rate and a mixed AADC rate, or offered at different rates, would not be appropriate. However, comments suggesting changes to the way the Postal Service would implement standards for the proposed AADC and mixed AADC rates would be appropriate.

Part ASummary of Changes by Class of Mail

The following information details the R20011 proposed changes organized by class of mail and special service category. This information is intended as an overview only and should not be viewed as defining every proposed DMM revision.
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1. Express Mail

a. Express Mail Rate Highlights

Overall, Express Mail rates would increase an average of 9.4%. The most significant change to the Express Mail rate structure would be to the flatrate envelope. Currently, the rate for the Express Mail flat rate envelope is the same as the applicable 2pound rate. The proposed rate for the flatrate envelope would be the \1/2\pound rate, which is the lowest available rate for each Express Mail service offering. The rate for the flatrate envelope would decrease for Post Office to Addressee service from $16.25 to $13.65, but the size of the envelope would remain the same.

The indemnity included in the price of Express Mail would be reduced from $500 to $100 for both merchandise and document reconstruction. This adjustment would more closely align with general industry practice. The fee for every $100 increment of additional merchandise insurance desired above the standard $100 and up to $5,000 would be $1.00.

b. Express Mail Rate Structure

There would be no changes to the rate structure of Express Mail. c. Express Mail Preparation Changes

There would be no changes to mail preparation requirements for Express Mail.
2. Priority Mail

a. Priority Mail Rate Highlights

Overall, Priority Mail rates would increase an average of 13.5%. Currently, the rate for the Priority Mail flatrate envelope is the same as the 2pound rate. The rate for the flatrate envelope would be tied to the 1pound rate because of the proposed rezoning of all rates from 2 to 5 pounds. The 1pound rate would increase from $3.50 to $3.85 and remain an unzoned rate. The rate for the flatrate envelope would decrease from the current $3.95 to the proposed rate of $3.85. The Priority Mail flatrate envelope would continue to be the EP14F envelope available from the Postal Service.

b. Priority Mail Rate Structure

Currently, Priority Mail rates are not zoned for pieces weighing 2 through 5 pounds, but they are zoned for pieces weighing more than 5 pounds. The weight increments from more than 1 pound and up to 5 pounds would be zoned to more accurately reflect actual costs to the Postal Service for transportation and handling.

c. Priority Mail Preparation Changes

There would be no changes to mail preparation requirements for Priority Mail.
3. FirstClass Mail

a. FirstClass Mail Rate Highlights

Overall, FirstClass Mail rates would increase an average of 8.2%. The singlepiece 1ounce FirstClass Mail rate would increase from $0.34 to $0.37, and the singlepiece card rate from $0.21 to $0.23. The additional ounce rate for singlepiece FirstClass Mail would remain at $0.23. There would be a lower additional ounce rate for Presorted FirstClass Mail.

Business mailers would see larger automation presort discounts. The carrier route automation discount and the nonautomation presort discount would remain at the current levels. The proposed increase in automation discounts and the proposed halfcent reduction in the additionalounce rate would result in more attractive incentives, especially for largevolume FirstClass Mail users who presort and mail heavier pieces.
b. FirstClass Mail Rate Structure and Mail Preparation Changes (1) Lower Additional Ounce for Presorted and Automation Rates

Currently, there is a single additional ounce rate for all pieces mailed at FirstClass Mail rates. For presorted and automation pieces weighing more than 2 ounces, a heavy piece discount is deducted.

The Postal Service is proposing a lower additional ounce rate for FirstClass Mail sent at Presorted and automation rates (including automation carrier route). Pieces mailed at singlepiece rates would pay $0.23 for each additional ounce; pieces mailed at any discount rate would pay $0.225 for each additional ounce. This change would affect only postage rates; there would be no proposed eligibility or mail preparation changes.

(2) Automation Basic Rate Split Into Two New Rates

For automation cards and letters, the current rate structure contains a 5digit, 3digit, and basic rate. The proposed rate structure would split the basic rate into an automated area distribution center (AADC) rate (for all pieces in an AADC tray) and a mixed AADC rate (for all pieces in a mixed AADC tray). The AADC rate would also apply to pieces in a lessthanfull origin 3digit tray. In addition, the 3digit sort level, which is currently required, would become optional. The first required sort level would be the AADC sort.

For automation flats, the current rate structure contains a 5 digit, 3digit, and basic rate. The proposed rate structure would split the basic rate into an area distribution center (ADC) rate (for all pieces in an ADC package or tray) and a mixed ADC rate (for all pieces in a mixed ADC package or tray). The ADC rate also would apply to pieces in a lessthanfull origin 3digit tray. There are no proposed sortation changes for automation flats. The 5digit sort level would still be optional; all other sort levels would be required. (3) Format Changes for Card Rate Pieces

Formatting standards for pieces mailed at card rates are currently contained in the Domestic Mail Classification Schedule (DMCS). Specifically, the language includes prohibitions against perforations or tearing guides and restricts the kind and amount of nonaddress information (e.g., account information or billing codes) that can appear on the face of the card. Many utility companies and small businesses use postcards to send bills to customers. The Postal Service has received requests from these mailers to loosen and clarify these standards. However, because the language was contained in the DMCS, no DMM changes could be made without first revising the DMCS.

In Docket No. R20011, the Postal Service proposed to remove section 222.2, Restrictions, from the DMCS. Subsequently, DMM C100.2.0, which contains standards for physical construction and formatting of FirstClass Mail cards, would be revised to accommodate the proposed DMCS change. The proposed DMM standards would offer more options to mailers for placing billing information on the face of the card.

Specifically, the new standards require address information to be placed within a certain space for cards claimed at the Presorted or automation card rates. Perforated cards would be required to maintain a minimum ratio of 50:50 (stock to perforations).

The Postal Service is proposing a 6month phasein period for mailers to comply with these format changes (see new section C100.2.8). After the phasein period, Presorted and automation rate cards that do not meet the standards in C100.2.0 would not be eligible for card rates.

(4) Nonmachinable Surcharge

The definition of the current nonstandard surcharge would be expanded to include any physical
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criteria that could make a mailpiece nonmachinable. Pieces that are nonmachinable are excluded from automated processing and must be handled manually. Nonmachinable pieces also may impede mail flow or damage the mail or mail processing equipment. Manual pieces are considerably more costly to process than machinable letters.

The proposed criteria for the nonmachinable surcharge for letter size mail would be listed in DMM C050.2.2. The nonmachinable surcharge would apply to singlepiece and Presorted rate letters that weigh 1 ounce or less and meet one or more of the criteria in that section.

The nonmachinable surcharge also would apply to singlepiece, Presorted, and automation rate nonletters (flats and parcels) that weigh 1 ounce or less if any one of the following applies:
(a) The piece is greater than \1/4\inch thick.
(b) The length is more than 11\1/2\ inches or the height is more than 6\1/8\ inches.
(c) The aspect ratio (length divided by height) is less than 1.3 or more than 2.5.

The nonmachinable surcharge would be $0.12 for singlepiece rate pieces and $0.055 for Presorted and automation rate pieces.

The nonmachinable criteria in C050.2.2 would not apply to pieces mailed at any card rate.

The nonmachinable surcharge also would apply to lettersize pieces (including pieces mailed at the card rate) for which the mailer has chosen the manual only (``do not automate'') option.

This proposed change is consistent with the proposed nonmachinable surcharge for Standard Mail.

In conjunction with this change, trays of machinable and nonmachinable letters would be prepared and labeled differently. The preparation for machinable letters would be similar to the current preparation for upgradable letters (including the optional 5digit sort level); the preparation for nonmachinable pieces would be similar to the current packagebased preparation for Presorted letters. The current weight limit for upgradable letters (2.5 ounces) would be replaced with a weight limit of 3.3 ounces for machinable letters. Letters heavier than 3.3 ounces that are less than \1/4\inch thick would use the nonmachinable preparation and labeling but would not pay the surcharge (because it would apply only to pieces that weigh 1 ounce or less).

On tray labels, the current ``NON BC'' designation would be replaced with one of two designations: ``MACH'' for machinable pieces or ``MANUAL'' for nonmachinable pieces. Although Presorted cards would not be subject to the surcharge, mailers would be required to show on the tray label whether or not those pieces are machinable (for instance, a double card that is not tabbed is nonmachinable). The ``MANUAL'' designation would help the Postal Service direct the trays of mail to the appropriate mail processing operation. Mailers who choose the ``do not automate'' option would show ``MANUAL'' on Line 2 of the tray label, as currently required.

Software vendors should note that, as proposed, machinable and nonmachinable (manual) letters will use different content identifier numbers (CINs).

There are no proposed preparation or labeling changes for Presorted flats or parcels subject to the surcharge.

Mail preparation instructions for Presorted lettersize pieces subject to the nonmachinable surcharge would be in DMM M130. Preparation instructions for automation flats subject to the nonmachinable surcharge would not change (see current DMM M820).

The nonmachinable surcharge would be assessed on any piece mailed out as a different class of mail and returned as FirstClass Mail (for instance, Standard Mail endorsed ``Return Service Requested'') if the piece weighs 1 ounce or less and meets the criteria for
nonmachinability in C050.2.2. Pieces returned at FirstClass Mail card rates would not be subject to the nonmachinable surcharge.

The surcharge would take effect when the new rates are implemented, however, the Postal Service is proposing a 6month phasein period for these mail preparation and tray labeling changes.
(5) Delivery Confirmation and Signature Confirmation for FirstClass Mail Parcels

The Postal Service would add two new special service options for FirstClass Mail parcels: Delivery Confirmation and Signature Confirmation. Both services would be available in manual (retail) and electronic options. The fees for Delivery Confirmation would be $0.55 (retail) and $0.13 (electronic). The fees for Signature Confirmation would be $1.80 (retail) and $1.30 (electronic).

For the purposes of adding Delivery Confirmation and Signature Confirmation, a FirstClass Mail parcel is defined as any piece: (a) That has an address side with enough surface area to fit the delivery address, return address, postage, markings and endorsements, and special service label; and
(b) Is in a box or, if not in a box, is greater than \3/4\inch thick at its thickest point.

This definition would provide mailers with different packaging options for their FirstClass Mail parcels.

(6) Containerization and Labeling

For lettersize pieces, the definition of a full tray would change from the current threshold of 75% to 100%, with a range between 75% and 100%. The recommended default for presort software would be 85%. In addition, after the minimum volume for rate eligibility is reached (i.e., 150 pieces for a 3digit area), overflow would be optional for all sort levels of letter trays. Also, mailers would be required to use as few trays as possible. Under current standards, a mailer could prepare one full 1foot tray plus one lessthanfull 1foot tray; new standards would result in the preparation of a single lessthanfull 2 foot tray.

On all FirstClass Mail letter trays, ``LTRS'' would change to ``LTR'' and ``CRRTS'' would change to ``CRRT.'' This change would be necessary to allow more room for other information on the tray label. (7) Documentation

Mailers would no longer be required to present a hard copy Form 3553, Coding Accuracy Support System (CASS) Summary Report, with their mailings. Instead, mailers or mailer agents would be required to keep this documentation on file for 1 year from the date of mailing and make it available to the Postal Service on 24hour notice.

Software vendors and mailers should note that changes are proposed for manifest keyline rate codes (P910.3.0) and Multiline Optical Character Reader (MLOCR) rate markings (P960.3.0) to reflect the new FirstClass Mail rates.
4. Periodicals

a. Periodicals Rate Highlights

The overall proposed average increase for Periodicals would be 10%. OutsideCounty postage would increase on average 10.4%, while InCounty postage would increase on average 1.7%. Automation discounts would increase at the 5digit (from $0.025 to $0.03), 3digit (from $0.035 to $0.041), and basic (from $0.042 to $0.048) presort levels. The destination delivery unit (DDU) discount would increase (from $0.017 to $0.018), while the destination sectional center facility (DSCF) discount would remain at $0.008. The proposed new
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destination area distribution center (DADC) discount would be $0.002.

Original entry and additional entry application fees are proposed to increase from $350 to $375 and from $50 to $60, respectively, while the fees for reentry and news agent registry would remain at $40. b. Periodicals Rate Structure and Mail Preparation Changes

(1) Proposed Changes

Proposed changes to the rate design for Periodicals are as follows: (a) New DADC discounts for OutsideCounty and Scienceof
Agriculture Periodicals that would be deducted from the pound and addressed per piece rates.
(b) A change that would limit destination rates and discounts to mail entered at destination facilities (DDU, DSCF, and DADC). (c) A new per piece discount for each addressed nonlettersize piece (flatsize and irregular parcel) prepared in packages on pallets that contain at least 250 pounds of mail (except overflow pallets). This discount would apply to all pallet levels. The discount would not apply to pieces in sacks on pallets or in trays on pallets. (d) In addition to the per piece pallet discount, a new destination entry per piece pallet discount would apply to each addressed piece of nonlettersize mail (flats and irregular parcels) prepared in packages on any destination entry pallet of at least 250 pounds of mail (except overflow pallets). The discount is not available for pieces in sacks or trays on pallets.

In conjunction with the nommachinable surcharge, it is proposed that any Periodical returned to the sender at FirstClass Mail rates is subject to the nonmachinable surcharge if the piece weighs 1 ounce or less and meets any one of the nonmachinable criteria in C050.2.2. (2) Periodicals RideAlong

The RideAlong experiment would become a permanent classification. There would be no proposed changes in the current standards for eligibility. However, publishers would no longer be required to complete a data collection questionnaire, provide a sample in addition to the marked copy, or submit an additional copy of Form 3541X (postage statement). Form 3541X would be discontinued and mailers would use Form 3541. The standards for RideAlong would be relocated to new DMM E260. The RideAlong rate would increase from $0.10 to $0.124 per piece.

(3) Containerization

For lettersize pieces, the definition of a full tray would change from the current threshold of 75% to 100%, with a range between 75% and 100%. The recommended default for presort software would be 85%. In addition, after the minimum volume for rate eligibility is reached (i.e., 150 pieces for a 3digit area), overflow would be optional for all sort levels of letter trays. Also, mailers would be required to use as few trays as possible. Under current standards, a mailer could prepare one full 1foot tray plus one lessthanfull 1foot tray; new standards would result in the preparation of a single lessthanfull 2 foot tray.

In addition, the measurement for the minimum volume of trays on pallets would be measured in linear feet, not by the number of layers of trays.

(4) Documentation

Mailers would no longer be required to present a hard copy Form 3553, Coding Accuracy Support System (CASS) Summary Report, with their mailings. Instead, mailers or mailer agents would be required to keep this documentation on file for 1 year from the date of mailing and make it available to the Postal Service on 24hour notice.
5. Standard Mail

a. Standard Mail Rate Highlights

Overall, Standard Mail rates would increase an average of 7.3%. On average, within each subclass, rates for flatsize mail would increase more than rates for lettersize mail. Regular rates would increase an average of 8% and nonprofit rates would increase an average of 6.7%. As proposed, greater destination entry discounts would provide an incentive for mailers to use their own or thirdparty transportation to move Standard Mail closer to the point of delivery.
b. Standard Mail Rate Structure and Mail Preparation Changes (1) Automation Basic Letter Rate Split Into Two New Rates

For automation lettersize pieces, the current rate structure contains a 5digit, 3digit, and basic rate. The proposed rate structure would split the basic rate into an AADC rate (for all pieces in an AADC tray) and a mixed AADC rate (for all pieces in a mixed AADC tray). The AADC rate also would apply to all pieces in any lessthan full origin or entry 3digit or 3digit scheme tray. There are no proposed sortation changes for automation lettersize pieces. The 5 digit sort level would still be optional; all other sort levels would be required.

Unlike in FirstClass Mail, where the proposed ADC and mixed ADC rates would apply to automation flats, there are no proposed changes to the rate structure for Standard Mail automation flats.

(2) Nonmachinable Surcharge

A nonmachinable surcharge is proposed for Standard Mail lettersize pieces; the definition would include any physical criteria that could make a mailpiece nonmachinable. Pieces that are nonmachinable are excluded from automated processing and must be handled manually. Nonmachinable pieces also may impede mail flow or damage the mail or mail processing equipment. Manual letters are considerably more costly to process than machinable letters.

The proposed criteria for nonmachinability for lettersize pieces are in DMM C050.2.2. The nonmachinable surcharge would apply to Presorted rate lettersize pieces (including cards) that weigh 3.3 ounces or less and meet one or more of the criteria in that section.

Unlike FirstClass Mail, where the nonmachinable surcharge would also apply to flats, the Postal Service is not proposing to add a nonmachinable surcharge to Standard Mail flats. The Standard Mail rate structure includes separate rates for letters and nonletters and factors in the extra costs of handling nonmachinable nonletters.

The nonmachinable surcharge would be $0.04 per piece for regular rate pieces and $0.02 per piece for nonprofit rate pieces.

The nonmachinable surcharge also would apply to Presorted rate lettersize pieces for which the mailer has chosen the ``manual only'' (do not automate) option.

This proposed change is consistent with the proposed nonmachinable surcharge for FirstClass Mail.

In conjunction with this change, trays of machinable and nonmachinable letters would be prepared and labeled differently. The preparation for machinable letters would mirror the current preparation for upgradable letters (including the optional 5digit sort level). The preparation for nonmachinable pieces would mirror the current package based preparation for Presorted letters. The current weight limit for upgradable letters (2.5 ounces) would be replaced with a weight limit of 3.3 ounces for machinable letters.

On tray labels, the current ``NON BC'' designation would be replaced with one of two designations: ``MACH'' for machinable pieces or ``MANUAL'' for nonmachinable pieces. The ``MANUAL''
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designation would help the Postal Service direct the trays of mail to the appropriate mail processing operation. Mailers who choose the ``do not automate'' option would show ``MANUAL'' on Line 2 of the tray label, as currently required.

Software vendors should note that, as proposed, machinable and nonmachinable (manual) letters will use different content identifier numbers (CINs).

Mail preparation instructions for Standard Mail pieces subject to the nonmachinable surcharge are found in DMM M610.

In a mailing of nonmachinable lettersize pieces, residual pieces sent at FirstClass Mail rates would be subject to the FirstClass Mail nonmachinable surcharge only if the pieces weigh 1 ounce or less. Heavier pieces would not be subject to the FirstClass Mail nonmachinable surcharge, even though those same pieces would have been subject to the Standard Mail nonmachinable surcharge if they had remained in the Standard Mail mailing. Additionally, residual pieces that are mailed at FirstClass Mail card rates would not be subject to the nonmachinable surcharge.

Standard Mail pieces that are returned as FirstClass Mail (for instance, an undeliverable piece endorsed ``Return Service Requested'') would be charged the nonmachinable surcharge if the piece weighs 1 ounce or less and meets the criteria for nonmachinability in C050.2.2. The nonmachinable surcharge also would be figured into the calculation for the weighted fee for pieces that weigh 1 ounce or less. The nonmachinable surcharge would not be charged on pieces returned at FirstClass Mail card rates.

The surcharge would take effect when the new rates are implemented, however, the Postal Service is proposing a 6month phasein period for these mail preparation and tray labeling changes.

(3) Heavier Letters Are Eligible for Automation Rates

The maximum weight limit for automation letters would increase from 3.3 ounces to 3.5 ounces (inclusive). These pieces would be charged postage equal to the automation piece/pound rate for that piece and receive a discount equal to the automation nonletter piece rate (3.3 ounces or less) minus the corresponding automation letter piece rate (3.3 ounces or less) for the appropriate sort level. This change applies to regular and nonprofit automation letters.

For instance, each heavy automation letter sorted to a 5digit tray would receive a discount equal to the 3/5 automation nonletter rate minus the 5digit automation letter rate.

As an example, using the proposed postage rates, a regular automation letter weighing 3.4 ounces that is sorted in a 3digit tray for DSCF entry would be charged:
Nonletter piece rate (more than 3.3 ounces), 3/5 rate...... $0.115 Plus....................................................... Nonletter pound rate (more than 3.3 ounces), 3/5 rate, DSCF 0.1239 entry (3.4 ounces divided by 16 ounces equals 0.2125
pounds, multiplied by $0.583 per pound) (rounding off to
four decimal places)
Equals..................................................... 0.2389 Minus a discount that equals the 3/5 nonletter piece rate .058 (3.3 ounces or less) for DSCF entry minus the 3digit
letter piece rate (3.3 ounces or less) for DSCF entry
(0.235 minus 0.177)....................................... Equals postage per piece................................... 0.1809

This proposed change would allow mailers to avoid the substantial rate increase for lettershaped pieces exceeding 3.3 ounces. Under the current rate schedule, once an automation letter exceeds the 3.3ounce maximum weight, the piece become subject to the piece/pound rates.

There are no proposed mail preparation changes that accompany this change; these heavy letters would be required to meet the current standards for heavy automation letters in DMM C810.7.5 and would use the existing mail preparation sequence and labeling for automation letters. Mailers who choose to take this discount for heavy automation letters would be required to use a new postage statement to be designed for this purpose.

Current standards for mixed rate mailings would not change. Pieces from a heavy letter mailing that cannot be barcoded would be mailed at singlepiece FirstClass Mail rates or prepared as a Presorted Standard Mail letter mailing with postage paid at the piece/pound rate (for pieces over 3.3 ounces). Like today, these residual pieces would not need to meet a separate 200piece or 50pound minimum (see DMM E620.1.2).

(4) Barcode Requirement for ECR LetterSize Pieces

Enhanced Carrier Route (ECR) lettersize pieces mailed at high density and saturation per piece rates would be required to meet the physical standards for automationcompatible mail in DMM C810 and would be required to have a delivery point barcode. Pieces using simplified address would not be required to have a delivery point barcode, and therefore, would not need to meet the physical standards for automationcompatible mail.

This change would apply to both ECR and Nonprofit ECR.

Requiring high density and saturation letters to be barcoded would give the Postal Service operational flexibility and would eliminate the need to barcode these pieces before delivery point sequencing (DPS). The Postal Service updates its DPS sort plans daily. Therefore, any changes in route assignments between carriers are captured in the DPS process daily; mailers are permitted to use carrier route information that could be up to 90 days old.

The proposed automationcompatible requirement corresponds to the requirement for a delivery point barcodefor the Postal Service to read the barcode, the piece must be compatible with automated mail sorting equipment. These requirements would not apply to detached address labels (DALs) that accompany flatsize pieces or irregular parcels. Even though the DAL itself is lettersized, technically it is the label for the larger piece.

Pieces that do not meet the physical standards in C810 or that do not contain a delivery point barcode would be subject to the corresponding ECR high density or saturation nonletter rate. Pieces that are lettersize but claimed at the nonletter rates would be marked, sorted, and trayed as letters. Mailers
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also would have the option to pay the ECR basic letter rate (for which barcodes are not required).

There are no proposed changes to the sequencing requirements, markings, or sortation for ECR pieces. Tray labels would change to reflect whether the pieces in the tray are barcoded (``BC''), not barcoded but machinable (``MACH''), or nonmachinable, regardless of whether the pieces are barcoded (``MANUAL'' or ``MAN''). These designations help the Postal Service direct the trays of mail to the appropriate mail processing operation. Mailers would be required to use barcoded tray labels.

Pieces mailed with a simplified address format do not contain the necessary address elements to generate a delivery point barcode for that address. To qualify for the high density or saturation letter rates, those pieces would not have to bear a delivery point barcode, would not have to be automationcompatible, and would be labeled ``MAN'' (even if the pieces are automationcompatible).

Pieces mailed with an exceptional or occupant address format (A040) do contain the enough address elements to generate a delivery point barcode, and therefore, must be automationcompatible and must have a delivery point barcode in order to claim the high density or saturation letter rates.

Software vendors should note that, as proposed, within each of the three processing categories, the same content identifier number (CIN) would be used for all direct carrier route trays (full trays of mail for a single carrier route).

Mailers would not be permitted to combine barcoded and nonbarcoded pieces into the same mailing. As an example, a mailer has 200 pieces to a single carrier route but was able to barcode only 175 of those pieces. The barcoded pieces would be placed in a direct carrier route tray and would qualify for the saturation letter rate. The remaining 25 nonbarcoded pieces would qualify for the saturation nonletter rate (saturation because the density requirement has been met, nonletter because the pieces do not meet the new barcode requirement) but cannot be placed in the direct carrier route tray. Instead, the nonbarcoded pieces would be packaged in walk sequence and placed in a 5digit carrier routes tray or a 3digit carrier routes tray with other carrier route packages of nonbarcoded mail. It is possible that, for a single 5digit destination, a mailer could create two 5digit carrier routes trays: one that contains packages of barcoded mail, and one that contains packages of nonbarcoded mail.

The new requirements for high density and saturation letters would take effect when the new rates are implemented; however, the Postal Service is proposing a 6month phasein period for the tray label changes.

A minor change would be made to the wording in the DMM for how to qualify for high density rates. Currently, there are two ways to meet the density requirement: there must be at least 125 pieces for a single carrier route or, if there are fewer than 125 possible deliveries on the route, a piece must be addressed to every delivery on the route. To qualify for saturation rates, pieces must be addressed to at least 90% of the active residential deliveries or at least 75% of the total active deliveries. If a customer is meeting the high density standard by addressing a piece to each possible delivery (100%), then they also would qualify for saturation rates under either the 90% standard or the 75% standard, and would of course claim the lower saturation rate. Therefore, because no mailer would ever choose to qualify for the high density rate via the 100% standard, it would be eliminated. (5) Heavier ECR Saturation and High Density Letters Are Eligible for Letter Rates

The maximum weight limit for automationcompatible ECR letters would increase from 3.3 ounces to 3.5 ounces (inclusive). These pieces would be charged postage equal to the nonletter piece/pound rate for that piece and receive a discount equal to the nonletter piece rate (3.3 ounces or less) minus the corresponding letter piece rate (3.3 ounces or less) for the appropriate sort level. This proposed change would apply to regular and nonprofit ECR saturation and high density letters.

For regular ECR, the discount would be $0.005 per piece for high density letters and $0.008 per piece for saturation letters. For nonprofit ECR, the discount would be $0.008 per piece for high density letters and $0.009 per piece for saturation letters.

This change also would apply to pieces mailed at the ECR automation basic rate, but the calculation is slightly different because there are no corresponding nonletter rates with which to perform the calculation. These pieces would be charged postage equal to the basic nonletter piece/pound rate and receive a discount equal to the basic letter rate minus the automation basic letter rate. For regular ECR, the discount would be $0.023 per piece. For nonprofit ECR, the discount would be $0.015 per piece.

In this proposal, all pieces mailed at high density and saturation letter rates will be automationcompatible; therefore, this change is consistent with the proposed change for regular Standard Mail heavy automation letters. This change would not apply to lettersize pieces that are mailed at the nonletter rates (because they are not automation compatible or do not have a barcode).

This change would not apply to pieces mailed at the ECR basic letter rate (because the letter and nonletter rates are the same, there would be no discount to subtract) or to pieces mailed at the ECR automation basic letter rate (because there are no corresponding nonletter rates with which to perform the rate calculation) (see R600.2.0 and R600.4.0).

As an example, using the proposed postage rates, a high density letter weighing 3.4 ounces that is prepared for DSCF entry would be charged:
Nonletter piece rate (more than 3.3 ounces), high density.. $0.043 Plus....................................................... Nonletter pound rate (more than 3.3 ounces), high density, 0.1031 DSCF entry (3.4 ounces divided by 16 ounces equals 0.2125
pounds, multiplied by $0.485 per pound) (rounded off to
four decimal places)...................................... Equals..................................................... 0.1461 Minus a discount that equals the high density nonletter .005 piece rate (3.3 ounces or less) for DSCF entry minus the
high density letter piece rate (3.3 ounces or less) for
DSCF entry (0.143 minus 0.138)............................ Equals postage per piece................................... $0.1411 [[Page 4568]]

This proposed change would allow mailers to avoid the substantial rate increase for lettershaped pieces exceeding 3.3 ounces. Under the current rate schedule, once an ECR letter exceeds the 3.3ounce maximum weight, the pieces become subject to the piece/pound rates.

There are no proposed mail preparation changes that accompany this change; these heavy letters would be required to meet the current standards for heavy automation letters in DMM C810.7.5 and would use the existing mail preparation sequence and labeling for ECR letters. Mailers who choose to take this discount for heavy letters would be required to use a new postage statement to be designed for this purpose.

(6) Containerization and Labeling

For lettersize pieces, the definition of a full tray would change from the current threshold of 75% to 100%, with a range between 75% and 100%. The recommended default for presort software would be 85%. In addition, after the minimum volume for rate eligibility is reached (i.e., 150 pieces for a 3digit area), overflow would be optional for all sort levels of letter trays. Also, mailers would be required to use as few trays as possible: Under current standards, a mailer could prepare one full 1foot tray plus one lessthanfull 1foot tray; new standards would result in the preparation of a single lessthanfull 2 foot tray.

In addition, the minimum volume of trays on pallets would be measured in linear feet, not by the number of layers of trays.

On all Standard Mail letter trays, ``LTRS'' would change to ``LTR'' and ``CRRTS'' would change to ``CRRT.'' This change would be necessary to allow more room for other information on the tray label. (7) Documentation

Mailers would no longer be required to present a hard copy Form 3553, Coding Accuracy Support System (CASS) Summary Report, with their mailings. Instead, mailers or mailer agents would be required to keep this documentation on file for 1 year from the date of mailing and make it available to the Postal Service on 24hour notice.

Software vendors and mailers should note that changes are proposed for manifest keyline rate codes (P910.3.0) and Multiline Optical Character Reader (MLOCR) rate markings (P960.3.0) to reflect the new Standard Mail rates.

6. Package Services

There are four subclasses of Package Services: Parcel Post, Bound Printed Matter, Media Mail, and Library Mail. Each subclass is addressed separately in items 7 through 10.
7. Parcel Post

a. Parcel Post Rate Highlights

Parcel Post rates would increase an average of 10%. The nonmachinable surcharge for InterBMC Parcel Post would increase from $2.00 to $2.75 per parcel. The IntraBMC and DBMC nonmachinable surcharges would remain at their current levels: $1.35 for IntraBMC parcels and $1.45 for DBMC parcels. The Parcel Post Origin BMC Presort and BMC Presort discounts would increase from $0.90 to $1.17 and $0.23 to $0.28 per piece, respectively. The barcoded discount for qualifying Parcel Post (including Parcel Select) machinable parcels would remain at $0.03 per piece.

b. Parcel Post Rate Structure

Two changes are proposed. First, Parcel Select pieces would be eligible for nofee electronic Delivery Confirmation. The other change would create a DSCF rate for nonmachinable parcels sorted to 3digit ZIP Code prefixes and entered at destination SCFs. The pieces would be charged a surcharge of $1.09 per parcel in addition to the applicable DSCF rate.

c. Parcel Post Mail Preparation Changes

Except for a new 3digit nonmachinable parcel preparation option added for DSCF rate mail, there would be no other changes to the preparation requirements for Parcel Post and Parcel Select. 8. Bound Printed Matter

a. Bound Printed Matter Rate Highlights

The Bound Printed Matter (BPM) rates would increase an average of 9.1%. Destination entry mailings would be eligible for discounts that encourage the deposit of mail at the destination BMC, SCF, or delivery unit. There are two major changes to BPM rates: Separate rates for BPM flats and parcels, and a new POSTNET barcoded discount for singlepiece rate and presorted rate BPM flats. The parcel barcoded discount for presorted rate BPM singlepiece and presorted rate machinable parcels would remain at $0.03 per piece.

b. Bound Printed Matter Rate Structure

Rates for flatsize BPM would be lower than the rates for BPM parcels in all three rate categories (singlepiece, presorted, and carrier route) and in the three available destination entry rates (DDU, DSCF, and DBMC). A $0.03 discount would be available for singlepiece and presorted rate BPM flats prepared with a POSTNET barcode. To qualify for the barcoded discount, BPM flats would be required to meet the standards in DMM C820 for flat sorting machine (FSM) 881 processing.

c. Bound Printed Matter Mail Preparation Changes

BPM barcoded flats would be prepared using the standards in DMM M820.
9. Media Mail

a. Media Mail Rate Highlights

Media Mail rates would increase an average of 4%. b. Media Mail Rate Structure

There would be one fundamental change to the Media Mail rate structure. The 5digit rate would be retained, but the BMC rate would be renamed the basic rate.

c. Media Mail Preparation Changes

There would be two changes to the preparation requirements for Media Mail. The BMC sort level would be renamed the basic sort level. This change would allow the Postal Service to adjust the presort requirements for Media Mail to reflect current processing. Machinable parcels would continue to be presorted to BMCs using the new basic rate level.

The second change would eliminate the requirement for separate minimum volumes for each presort level and would reduce the minimum volume requirement for a mailing from 500 to 300 pieces. To qualify for presorted Media Mail, mailers would be required to have a minimum of 300 properly prepared and presorted pieces. Pieces in the mailing that meet 5digit rate requirements would be eligible for the 5digit rate. The remaining pieces in the mailing would be eligible for the basic rate.
10. Library Mail

a. Library Mail Rate Highlights

Library Mail rates would increase an average of 3.3%. b. Library Mail Rate Structure

There would be one fundamental change to the Library Mail structure. The 5digit rate would be retained, but the BMC rate would be renamed the basic rate.

c. Library Mail Preparation Changes

There would be two changes to the preparation requirements for Library
[[Page 4569]]
Mail. The BMC sort level would be renamed the basic sort level. This change would allow the Postal Service to adjust the presort requirements for Library Mail to reflect current processing. Machinable parcels would continue to be presorted to BMCs using the new basic rate level.

The second change would eliminate the requirement for separate minimum volumes for each presort level and would reduce the minimum volume requirement for a mailing from 500 to 300 pieces. To qualify for presorted Library Mail, mailers would be required to have a minimum of 300 properly prepared and presorted pieces. Pieces in the mailing that meet the 5digit rate requirements would be eligible for the 5digit rate. The remaining pieces in the mailing would be eligible for the basic rate.
11. Special Services and Other Services
a. Special Services Highlights

(1) Bulk Parcel Return Service (DMM S924)

The annual accounting fee for bulk parcel return service (BPRS) would increase from $375 to $475. The annual permit fee would increase from $125 to $150 and the per piece charge would increase from $1.62 to $1.80. See DMM R900.3.0.

(2) Business Reply Mail (DMM S922)

The per piece charge for high volume Qualified Business Reply Mail (QBRM) with the optional quarterly fee would decrease from $0.01 to $0.008. The QBRM quarterly fee of $1,800 for that category would remain the same. The basic QBRM per piece charge for the category without the optional quarterly fee would increase from $0.05 to $0.06. The annual permit fee for all business reply mail (BRM) would increase from $125 to $150. The monthly fee for bulk weight averaged nonlettersize BRM would increase from $600 to $750, while the per piece charge would remain the same. The annual accounting fee for advanced deposit accounts would increase from $375 to $475. The regular BRM per piece charge without an annual accounting fee would increase from $0.35 to $0.60 per piece. See DMM R900.4.0.

(3) Certificate of Mailing (DMM S914)

Certificate of mailing fees would increase. For individual pieces, the original certificate would increase from $0.75 to $0.90, the firm mailing book (Form 3877) would increase from $0.25 to $0.30 for each piece listed, and the charge for a duplicate copy would increase from $0.75 to $0.90.

For bulk pieces (Form 3606), fees for the first 1,000 pieces or fraction thereof would increase from $3.50 to $4.50. Each additional 1,000 pieces or fraction thereof would increase from $0.40 to $0.50, and the charge for a duplicate copy would increase from $0.75 to $0.90. Additional mailpieces listed on Form 3877 and having postage paid with a permit imprint would be permitted to pay the certificate of mailing fee using a permit imprint account. See DMM R900.6.0.

(4) Certified Mail (DMM S912)

The certified mail fee would increase from $2.10 to $2.30. A new service enhancement would be introduced to allow mailers to access delivery information for certified mail over the Internet at www.usps.com by providing the certified article number. See DMM R900.7.0.

(5) Collect on Delivery (DMM S921)

There would be no change to the current collect on delivery (COD) fees. See DMM R900.8.0.

(6) Delivery Confirmation (DMM S918)

Retail (manual) and electronic Delivery Confirmation options would be extended to FirstClass Mail parcels. For Package Services, Delivery Confirmation would be restricted to parcels only and would no longer be available for flatsize mail. For FirstClass Mail parcels, the fee would be $0.13 for the electronic option and $0.55 for the retail option. The fee for the retail option for Priority Mail would increase from $0.40 to $0.45. For Standard Mail, the fee for the electronic option would increase from $0.12 to $0.13. For Parcel Select, the electronic option would be included in postage. For all other Package Services, the fee would increase from $0.12 to $0.13 for the electronic option and from $0.50 to $0.55 for the retail option. See DMM R900.9.0.

For the purposes of adding Delivery Confirmation, a parcel would be defined as any piece that has an address side with sufficient surface area to fully display the delivery address, return address, postage, markings and endorsements, and the Delivery Confirmation label. The parcel would be required to be in a box, or if not in a box, would be required to be more than \3/4\inch thick at its thickest point. (7) Express Mail Insurance (DMM S500)

Insurance coverage included with Express Mail service would be lowered from $500 to $100. Incremental fees would be applied at $1.00 per each $100 of desired merchandise insurance coverage over $100. Document reconstruction maximum liability would decrease from $500 to $100. See DMM R900.11.0.

(8) Insurance (DMM S913)

The fee for unnumbered insurance of up to $50 (no insured number applied) would increase from $1.10 to $1.30. The fee for numbered insurance service over $50 and up to $100 (insured number applied) would increase from $2.00 to $2.20. The incremental fee of $1.00 for each $100 in value over $100 and up to $5,000 would remain the same. See DMM R900.12.0.

(9) Merchandise Return Service (DMM S923)

The annual accounting fee for merchandise return service would increase from $375 to $475. The annual permit fee would increase from $125 to $150. See DMM R900.14.0.

(10) Money Orders (DMM S020)

There would be two classification changes for money orders. The first change would increase the maximum amount from $700 to $1,000 for both domestic and APO/FPO money orders. The second change would introduce a twolevel fee structure for domestic money orders. The fee for amounts of $0.01 to $500 would be $0.90, and the fee for amounts of $500.01 to $1,000 would be $1.25. The inquiry fee would increase from $2.75 to $3.00. The fee for APO/FPO money orders would remain the same. See DMM R900.16.0.

(11) Parcel Airlift (DMM S930)

Parcel Airlift (PAL) fees would increase. For parcels weighing not more than 2 pounds, the fee would increase from $0.40 to $0.45. For parcels not more than 3 pounds, the fee would increase from $0.75 to $0.85. For parcels not more than 4 pounds, the fee would increase from $1.15 to $1.25. For parcels over 4 pounds but not more than 30 pounds, the fee would increase from $1.55 to $1.70. See DMM R900.17.0. (12) Registered Mail (DMM S911)

All registered mail fees would increase. The fee for registered mail without insurance would increase from $7.25 to $7.50. The incremental fee for registered mail with insurance per declared value level would increase from $0.75 to $0.85. The handling charge per $1,000 in value or fraction thereof for items valued over $25,000 also would increase from $0.75 to $0.85. A new service enhancement would be introduced to allow mailers to access delivery information for registered mail over the Internet at www.usps.com by [[Page 4570]]
providing the registered article number. See DMM R900.21.0. (13) Restricted Delivery (DMM S916)

The fee for restricted delivery would increase from $3.20 to $3.50. See DMM R900.22.0.

(14) Return Receipt (DMM S915)

The fee for regular return receipt service would increase from $1.50 to $1.75. The fee for return receipt after mailing would decrease from $3.50 to $3.25. A new service option would offer an electronic return receipt that includes delivery information and a copy of the signature to mailers who furnish an email address at the point of purchase or preregister on the Internet at www.usps.com (available Fall 2002). Mailers would also have the option to purchase a return receipt after mailing over the Internet using a credit card (available Fall 2002). The new electronic return receipt fee would be $1.30. See DMM R900.23.0.

(15) Return Receipt for Merchandise (DMM S917)

The fee for return receipt for merchandise would increase from $2.35 to $3.00. See DMM R900.24.0.

(16) Signature Confirmation (DMM S919)

Retail (manual) and electronic Signature Confirmation options would be extended to FirstClass Mail parcels. For Package Services, Signature Confirmation would be restricted to parcels only and would no longer be available for flatsize mail. For FirstClass Mail parcels, the fee would be $1.30 for the electronic option and $1.80 for the retail option. The fee for the retail option for Priority Mail would increase from $1.75 to $1.80. For Package Services parcels, the fee would increase from $1.25 to $1.30 for the electronic option and from $1.75 to $1.80 for the retail option. See DMM R900.26.0.

For the purposes of adding Signature Confirmation, a parcel would be defined as any piece that has an address side with sufficient surface area to fully display the delivery address, return address, postage, markings and endorsements, and the Signature Confirmation label. The parcel would be required to be in a box, or if not in a box, would be required to be more than \3/4\inch thick at its thickest point.

(17) Special Handling (DMM S930)

The fees for special handling would increase from $5.40 to $5.95 for pieces weighing up to 10 pounds and from $7.50 to $8.25 for pieces weighing over 10 pounds. See DMM R900.27.0.
b. Other Services Highlights

(1) Address Correction Service (DMM F030)

The fee for manual address correction service (ACS) notices would increase from $0.60 to $0.70. The fee for automated ACS would remain the same at $0.20. See DMM R900.1.0.

(2) Address Sequencing Service (DMM A920)

The fee for carrier sequencing of address cards service would increase from $0.25 to $0.30 per card. See DMM R900.2.0.

(3) Caller Service (DMM D920)

The caller service fee for each separation provided per semiannual period would increase from $375 to $412. The fee for each reserved call number per calendar year would increase from $30 to $32. See DMM R900.5.0.

(4) Mailing List Service (DMM A910)

The charge for correction of mailing lists would increase from $0.25 to $0.30 per correction. The minimum per list charge also would increase from $7.50 to $9.00 per list. The charge for sortation of mailing lists on cards into groups labeled by 5digit ZIP Code would increase from $73 to $100. The charge for address changes for election boards would increase from $0.23 to $0.27. See DMM R900.13.0. (5) Meter Service (DMM P030)

The fee for onsite meter service (per employee, per visit) would increase from $31 to $35. The fee for meter resetting and/or examination would increase from $4.00 to $5.00 per meter. The fee for check in/out of service (per meter) would remain the same. See DMM R900.15.0.

(6) Permit Imprint (DMM P040)

The permit imprint application fee would increase from $125 to $150.

(7) Pickup Service (DMM D010)

The fee for pickup service, available for Express Mail, Priority Mail, and Parcel Post, would increase from $10.25 to $12.50 (per pickup). See DMM R900.18.0.

(8) Post Office Box Service (DMM D910)

Overall, post office (PO) box fees would increase. A new PO box fee category would be introduced for PO box service in the lowestcost cities and highestcost rural areas. This new fee group would provide a bridge to eventually move highcost and lowcost ZIP Codes toward more appropriate fee assignments. PO box key duplication or replacement (after first two keys) would increase from $4.00 to $4.40 each. PO box lock replacement would increase from $10 to $11.

There would be no proposed change to nofee PO box service (Group E). See DMM R900.20.0.

(9) Shipper Paid Forwarding (DMM F010)

The accounting fee would increase from $375 to $475. See DMM R900.25.0.

(10) Stamped Cards and Stamped Envelopes

The fee for stamped cards would remain the same. Special stamped envelopes (i.e., those with holograms or patchin stamps) are no longer offered. The fees for the other types of available stamped envelopes would remain the same.

Part BSummary of Changes to the Domestic Mail Manual

The following information details the R20011 proposed changes organized by DMM module. This information is intended as an overview only and should not be viewed as defining every proposed DMM revision. The actual proposed DMM changes appear in this notice after Part B. A Addressing

A010 would be amended to remove information about upgradable mail (already included in C830) and to move Exhibit 4.5 to C830.1.0.

The title of A800 would be changed to show the standards apply to all automationcompatible mail, not just mail claimed at automation rates.

A950 would be revised to clarify that the mailer's signature on a postage statement certifies the mail meets the requirements for the rates claimed and to change the requirements for filing Form 3553, Coding Accuracy Support System (CASS) Summary Report. Mailers would no longer be required to submit Form 3553 with each mailing. They would have to retain the form on file for 1 year from the date of mailing and make it available to the Postal Service on 24hour notice.

C Characteristics and Content

C010 would be amended to show that Standard Mail ECR pieces are subject to the standards for mailpiece dimensions and to remove information about the FirstClass Mail nonstandard surcharge. C050 would be amended to add the nonmachinable criteria for letters. [[Page 4571]]

Exhibit C050.2.0 would be renumbered as Exhibit C050.1.0.

C100.2.0 would be revised to implement proposed changes to the Domestic Mail Classification Schedule (DMCS) for pieces mailed at FirstClass Mail card rates. This DMCS change would clarify the standards for physical construction, formatting, and addressing for card rate pieces. C100.4.0 would be revised to reflect changes to the nonmachinable surcharge (formerly the nonstandard surcharge) for some FirstClass Mail letters and flats.

C810 would be amended to remove references to upgradable First Class Mail and Standard Mail, to increase the weight limit for Standard Mail automation and ECR letters to 3.5 ounces, and to clarify that signing a postage statement certifies the mail meets the requirements for the rates claimed.

C820 would be amended to add a weight limit for Bound Printed Matter flats claimed at automation flat rates.

C840 would be amended to remove references to add barcode standards for ECR saturation and high density pieces and to remove references to upgradable mail.

D Deposit, Collection, and Delivery

D210.3.4 would be amended to reflect the change that the destination sectional center facility (DSCF) rate would apply to eligible mail entered at the DSCF under exceptional dispatch. D210.4.0 would be revised to show that the DSCF rate would not apply to mail entered at airport mail facilities (AMFs).

The provisions for Periodicals contingency entries would be deleted in D230.2.2 and 4.6.

D500 would be amended to include several additional provisions that affect postage refund requests for Express Mail when the service guarantee is not met.
E Eligibility

E100

E110.3.0 would be amended to implement changes to the Domestic Mail Classification Schedule (DMCS) for pieces mailed at FirstClass Mail card rates.

E120.2.2 would be amended to change the current Priority Mail flat rate priced at the 2pound rate to the new 1pound rate, regardless of the weight of the material placed in the flatrate envelope. E120.2.4 reflects changes to the correct postage for keys and identification devices. When they weigh more than 13 ounces but not more than 1 pound, they would be returned at the 1pound rate plus the fee shown in R100.10.0. Keys and identification devices that weigh more than 1 pound but not more than 2 pounds would be charged at the 2pound Priority Mail rate plus the fee in R100.10.0.

E130 would be amended to show that the nonmachinable surcharge would apply to keys and identification devices, certain lettersize and flatsize pieces mailed at singlepiece and Presorted rates, and all pieces where the mailer chooses the ``manual only'' (do not automate) preparation option. It also would be amended to clarify that signing a postage statement certifies the mail meets the requirements for the rates claimed.

E140 would be amended to reorganize the information about rate application into two separate sections: one for cards and lettersize mail (2.0) and one for flatsize mail (3.0). E140.2.0, Rate Application for Cards and Letters, would be amended to replace the basic rate with the new AADC and mixed AADC rates. E140.3.0, Rate Application for Flats, would be amended to replace the basic rate with the new ADC and mixed ADC rates and to clarify the definition of a piece that is subject to the nonmachinable surcharge. E140 would be amended to clarify that signing a postage statement certifies the mail meets the requirements for the rates claimed.

E200

E217.1.0 and 3.0 would be amended to reflect references to the new destination area distribution center (DADC) rates and discounts for OutsideCounty and OutsideCounty ScienceofAgriculture rates. E217.5.0 would be restructured for clarity and amended to include standards for the new per piece pallet and per piece destination entry pallet discounts.

The standards for combining multiple publications or editions in E220.3.0 and E230.4.0 would be consolidated into new M230. E220 and E240 would be amended to clarify that signing a postage statement certifies the mail meets the requirements for the rates claimed.

The proposal amends E250 by adding a new 1.0 that provides standards for new DADC rate eligibility, and renumbering former 1.0 (DSCF) and 2.0 (DDU) as 2.0 and 3.0, respectively. New E250.2.0 would reflect the change requiring DSCF rate mail to be entered at the SCF or another postaldesignated facility. It is proposed to further amend E250.2.0 to clarify that DSCF rates do not apply to mail placed in an ADC, AADC, mixed ADC or mixed AADC sack or tray, or on an ADC or mixed ADC pallet.

New E260 (former G094) would describe the standards for the Periodicals RideAlong classification and rate, which is proposed to become a permanent classification. All of G094 would be moved except for 2.0 and 3.0. Former 2.0, which contains rate information, would appear as part of R200. Former 3.0 would be deleted, as publishers would no longer be required to submit additional documentation with RideAlong mailings.

E500

E500 would be amended to change the current 2pound Express Mail flat rate to the new \1/2\pound rate regardless of the weight of the material placed in the flatrate envelope.

E600

E610.8.0 would be amended to remove references to upgradable Standard Mail.

E620 would be amended to remove references to upgradable mail and to show that the nonmachinable surcharge may apply to lettersize pieces that weigh 3.3 ounces or less and to all pieces where the mailer chooses the ``manual only'' (do not automate) option. New language would be added to explain the discount for automationcompatible pieces that weigh between 3.3 and 3.5 ounces.

E630 would be reorganized for clarity. Standards would be added to show that lettersize pieces mailed at saturation and high density letter rates must be automationcompatible and must have a delivery point barcode.

E640 would be amended to replace the basic automation letter rate with the new AADC and mixed AADC rates and to add the discount for automation letters that weigh between 3.3 and 3.5 ounces. E640.2.0 would be amended to add the discount for ECR basic automation letters that weigh between 3.3 and 3.5 ounces.

E620 and E640 would be amended to clarify that signing a postage statement certifies the mail meets the requirements for the rates claimed.

E700

E712.1.1b would be revised to add a weight limit for BPM flats claiming the barcoded discount. E712.1.4, which excluded BPM flats from eligibility to receive an automation rate, would be removed. E712.2 would be amended to add a new standard for BPM automation flats. E712.2.0e would be added to include a barcoded discount for automation flats. E712.3.0 would be amended to clarify that the mailer's signature on the postage statement
[[Page 4572]]
certifies the mail meets the requirements for the rates claimed.

E713 and E714 would be revised in their entirety to reflect the format used for BPM in E712, E713 and E714 would be amended to change references from ``BMC rate'' to ``basic rate'' and from ``500 pieces'' to ``300 pieces.'' E713 and E714 would be revised to allow preparation of Media Mail and Library Mail mailings with two presort levels.

E751.1.1 would be amended to add provisions to require mail on pallets for 3digit ZIP Code prefixes to be entered at the SCF. E751.1.4a would be amended to clarify that nonmachinable parcels sorted to 3digit ZIP Code prefixes must be entered at a designated SCF. In E751.2.2c, d, and e, references would be added to allow the preparation of ``3digit sacks'' and ``3digit pallets.'' E751.5 and E753 would be amended to change the references from ``BMC rate'' to ``basic rate.'' F Forwarding and Related Services

F010.4.0 would be amended to remove references to nonstandard mail. F010.5.2 would be amended to show the nonmachinable surcharge can be charged on Periodicals returned at FirstClass Mail singlepiece rates. F010.5.3 would be amended to show the FirstClass Mail singlepiece nonmachinable surcharge is included in the calculation of the weighted fee for returned pieces and is charged on some returned Standard Mail pieces. F010.6.0 would be amended to incl

FOR FURTHER INFORMATION CONTACT

General contact for all subjects: Jane Stefaniak, 7032923548.

For Express Mail and Priority Mail: Karen Magazino, 7032923644.

For FirstClass Mail and Standard Mail: Anne Emmerth, 7032923641.

For Periodicals: Joel Walker, 7032923652.

For Package Services: OB Akinwole, 7032923643.

For Special Services: Pat Bennett, 7032923639.