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POSTAL SERVICE

United States Sentencing Commission

CFR Citation: 39 CFR Part 111

NOTICE: Part II

DOCUMENT ACTION: Proposed rule.

SUBJECT CATEGORY: New Standards for Domestic Mailing Services

DATES: We must receive your comments on or before November 13, 2006.

DOCUMENT SUMMARY: On May 3, 2006, the Postal Service filed a request with the Postal Rate Commission to change prices for virtually all domestic mailing services. The Commission designated the filing as Docket No. R20061. This proposed rule provides the mailing standards that would accompany the new prices if the R20061 price change proposal is adopted.

SUMMARY: Postal Service,

SUPPLEMENTAL INFORMATION

The Postal Service's request in Docket No. R20061 includes mail classification changes, new pricing structures, and price changes for most domestic mailing services. This proposed rule contains the revisions to Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM) that we would adopt to implement the R20061 price change proposal. We summarize our revisions by class of mail and extra service, and we provide our proposed changes to the mailing standards in the DMM. We invite your comments on all aspects of our proposed standards.

We also provide the proposed prices, price categories, and price structures that are currently under review by the Postal Rate Commission. The pricing proposal is subject to separate Commission proceedings. For more information visit http://www.prc.gov.

This is the first time since 2001 that we have proposed any restructuring to our prices. We adjusted prices in January 2006 solely to fund a $3.1 billion escrow account required by federal law. When our new prices are implemented in 2007, postage prices will have grown at or below the Consumer Price Index since 1971.

Overview

Our pricing proposal reflects changes in operations and the marketplace. Our proposal would enhance efficiency, offer more choices, and ensure that all types of mail cover their costs. We include incentives to create mailpieces compatible with our processing systems and deposit flats and parcels closer to where they are delivered.

Our proposed prices recognize that each shape of mailpieceletter, flat, and parcelhas substantially different processing costs that need to be covered. Our current prices do not distinguish between shapes as much as they could. For example, in FirstClass Mail, our current price is 63 cents for a 2ounce piece regardless of whether it is a letter, flat, or parcel.

We also provide opportunities to mitigate the impact of price increases. If the contents of a FirstClass Mail flat are folded and placed into a lettersize envelope, the mailer could save as much as 20 cents. If a parcel is reconfigured as a flat, the mailer could save up to 38 cents.

To better align mail preparation with our processing capabilities and to maximize access to lower rates for mailers, we propose to require scheme preparation wherever appropriate. We define the terms ``5digit/scheme'' and ``3digit/scheme'' as the preparation of bundles and containers for 5digit and 3digit ZIP Code combinations in any of our scheme labeling lists, and single 5digit and 3digit ZIP Codes not on these lists. We also propose to require all flatsize pieces to be uniformly thick.

FirstClass Mail

Our proposal introduces prices based on the shape of mail and our relative costs, with separate prices for letters, flats, and parcels. As shape becomes more important, weight becomes less important, and our proposal reduces prices for many pieces over 1 ounce.

FirstClass Mail Retail Letters, Flats, and Parcels

The singlepiece 1ounce FirstClass Mail letter price would increase $0.03, to $0.42, and the singlepiece card price also would increase $0.03, to $0.27. The additionalounce price would decrease $0.04, to $0.20.

We propose a ``forever stamp'' to make future price changes more convenient for consumers. The postage value of the forever stamp would equal the FirstClass Mail singlepiece 1ounce letter rate at any time in the future, without the addition of extra postage.

Our pricing proposal would eliminate the nonmachinable surcharge. Instead, a lettersize mailpiece with nonmachinable characteristics would pay the flatsize price. Our additional handling costs are included in the proposed 1ounce flatsize price, so no surcharge is necessary. To qualify for letter rates, the maximum weight for letter size pieces would be 3.5 ounces.

FirstClass Mail Discount Letters and Flats

The additionalounce price for automation letters would decrease from $0.237 to $0.155. We would maintain the 150piece minimum tray preparation requirement for automation FirstClass Mail letters and cards. Sort levels would be 5digit/scheme, 3digit/scheme, 3digit origin, automation area distribution center (AADC), and mixed AADC. We propose a simplified preparation to allow mailers of machinable letters to sort only to the AADC and mixed AADC levels. We would eliminate the carrier route automation preparation and discounts. The maximum weight for letter rates, including automation pieces, would be 3.5 ounces.

We would expand the current requirement for pieces to be rectangular to all flats. The physical standards for automation flats would be the current criteria for AFSM 100 pieces, with new standards for flexibility. We also propose to lessen the deflection standard.

Our proposal would eliminate the nonmachinable surcharge. Instead, lettersize mailpieces with nonmachinable characteristics would pay flatsize prices. Presorted prices would be available for machinable letters sorted to the 3digit origin, AADC, and mixed AADC levels.

To help reduce the costs of handling mail in letter trays, we propose a nooverflow tray option for automation letters. In addition, to encourage fuller trays, we propose to change our definition of a ``full letter tray'' to one in which the pieces fill the length of the tray between 85 percent and 100 percent full.

FirstClass Mail Discount Parcels

The structure for discount parcels includes new workshare prices. The proposed rate levels are 5digit, 3digit, ADC, and single piece. At least 10 pounds of parcels would be required for 5digit sacks, 3 digit sacks, and ADC sacks. Remaining pieces sorted to a mixed ADC sack would pay the singlepiece FirstClass Mail parcel price.

Discount parcels would require a 5digit UCC/EAN 128 or POSTNET barcode. Unless prepared in 5digit containers or paid at the single piece
[[Page 56589]]
rates, a surcharge would apply to all parcels that are not barcoded or weigh less than 2 ounces, or to irregularly shaped parcels such as triangles, tubes, rolls, and similar pieces.

Standard Mail

Our proposed prices encourage mail that is compatible with our operations and drop shipped closer to its destination. As in First Class Mail, Standard Mail pricing has greater recognition of shape and reduced reliance on weight.

Standard Mail Letters

Automation letter sort levels would be 5digit/scheme, 3digit/ scheme, AADC, and mixed AADC. We propose a simplified preparation to allow mailers of machinable letters to sort only to the AADC and mixed AADC levels.

Nonmachinable letter sort levels would be 5digit, 3digit, ADC, and mixed ADC, for which there would be separate rates. We would replace the nonmachinable surcharge with a separate rate structure for nonmachinable letters up to 3.3 ounces. Nonmachinable letters over 3.3 ounces would pay the flatsize rate or the Not FlatMachinable rate.

Destination delivery unit (DDU) drop shipment entry rates would not be available for letters. However, destination sectional center facility (DSCF) entry rates would be allowed for DDU entry of some Enhanced Carrier Route letters, including letters with simplified addresses. Enhanced Carrier Route automation basic rates would be eliminated.

To help reduce the costs of handling mail in letter trays, we propose a nooverflow tray option for automation letters. In addition, to encourage fuller trays, we propose to change our definition of a ``full letter tray'' to one in which the pieces fill the length of the tray between 85 percent and 100 percent full.

Standard Mail Flats

The physical standards for automation flats would be the criteria for AFSM 100 pieces, with new standards for flexibility. This change would maximize the number of flats we can process in automated operations and deliver as flats. We also propose to lessen the deflection standard.

We propose to increase the maximum size for carrier route flats so that the same standards apply to all flats, regardless of the rate paid. We would expand the current requirement for pieces to be rectangular to all flats, except Customized MarketMail.

Standard Mail Not FlatMachinable Pieces

Our proposal includes a new Not FlatMachinable (NFM) classification for rigid flatsize pieces and for pieces that are currently automationcompatible only by meeting UFSM 1000 standards. We propose no bundling requirement for most NFMs and to have mailers prepare pieces in 5digit/scheme, 3digit, ADC/BMC, and mixed ADC/BMC containers. We propose allowing a DDU entry discount for NFMs sorted to 5digit destinations when drop shipped directly to the DDU. There would be no minimum for NFMs drop shipped to DDUs. Unless prepared in 5 digit/scheme containers, a surcharge would apply to all NFMs that are not barcoded.

Standard Mail Parcels

We propose to eliminate the residual shape surcharge for Standard Mail parcels. We would no longer offer a $0.03 machinable barcode discount. Instead, parcel prices would include a requirement for barcodes. Unless prepared in 5digit containers, a surcharge would apply to all parcels that are not barcoded.

We would rename ``irregular'' parcels as ``nonmachinable'' parcels and remove the bundling requirement for all Standard Mail nonmachinable parcels except enhanced carrier route pieces. We propose to reduce the required minimum quantity of nonmachinable parcels in sacks to 10 pounds per sack.

We would allow mailers to commingle machinable parcels, nonmachinable parcels, and the new Not FlatMachinable pieces when they are able to combine them in 5digit containers. We would allow mailers to combine certain ZIP Codes for Standard Mail parcels, machinable Parcel Select, and Bound Printed Matter parcels when prepared in 3 digit containers and entered at designated SCFs.

We propose to allow a DDU entry discount for parcels sorted to 5 digit destinations when drop shipped directly to the DDU. There would be no minimum for the amount of parcels drop shipped to a DDU. The DDU discount is currently available only for pieces sorted to carrier routes.

Customized MarketMail

Rates for Customized MarketMail would equal the 5digit rate for Not FlatMachinable pieces, and mailers would still be required to drop ship Customized MarketMail pieces to DDUs.

Detached Address Labels

Our proposal includes a new $0.015 charge for detached address labels with Enhanced Carrier Route saturation flatsize pieces. Mailers who prepare mail with addresses on their mailpieces could avoid the new charge.

Periodicals

Our proposed Periodicals prices encourage mailers to use pallets rather than sacks, and to fill sacks with more mail. We also enhance drop ship incentives to encourage mailers, including publishers of high editorial content publications, to enter OutsideCounty mail closer to its destination.

The pricing proposal includes a new $0.85 OutsideCounty Container Rate. The container rate would apply to pallets, sacks, or trays of OutsideCounty Periodicals mail. We also propose new drop ship prices based on nonadvertising pounds, in addition to increased perpiece drop ship discounts.

To encourage fuller letter trays, we propose to change our definition of a ``full letter tray'' to one in which the pieces fill the length of the tray between 85 percent and 100 percent full. Package Services

Package Services includes Parcel Post, Bound Printed Matter, Media Mail, and Library Mail. Our proposal simplifies Package Services offerings and moves toward more efficient handling of parcels. Parcel Post

Currently, parcels weighing less than 15 pounds and measuring more than 84 inches in combined length and girth are charged the 15pound rates (the ``balloon rate''). Under our proposal, parcels weighing less than 20 pounds and measuring more than 84 inches in combined length and girth would be charged the 20pound rates.

The current $0.03 barcode discount available for machinable Parcel Select destination bulk mail center (DBMC) entry mail would be incorporated into the price and a barcode would be required. Nonbarcoded machinable pieces could claim only the applicable Intra BMC/ASF rate.

We do not propose any changes to mail preparation standards for Parcel Post.

Bound Printed Matter

Singlepiece Bound Printed Matter would be renamed ``nonpresorted'' Bound Printed Matter and would be eliminated as a retail option. The $0.08 discount off the parcel price for flatsize pieces increases to $0.16. The $0.03 per piece POSTNET barcode discount for flatsize mail and the $0.03 per piece barcode discount for machinable parcels would remain the same.

[[Page 56590]]

We propose to require 5digit/scheme and 3digit/scheme bundles and 5digit/scheme sacks for presorted flatsize Bound Printed Matter. We propose to require 5digit/scheme bundles for nonmachinable parcels weighing less than 10 pounds and 5digit/scheme sacks for machinable and nonmachinable parcels.

Media Mail and Library Mail

We propose to require 5digit/scheme and 3digit/scheme bundles and 5/digit scheme sacks for presorted flatsize Media Mail and Library Mail. We propose to require 5digit/scheme bundles for nonmachinable parcels and 5digit/scheme sacks for machinable and nonmachinable parcels.

Priority Mail

We continue to offer convenience in Priority Mail. The USPS produced flatrate envelope still would pay the 1pound price, $4.65 under the proposal, regardless of weight or destination. USPSproduced flatrate boxes would pay $8.80 under the proposal, regardless of weight or destination, and would become a permanent offering. Prices for all Priority Mail pieces weighing over 25 pounds would decrease for all zones, many by as much as 20 percent.

Currently, Priority Mail pieces weighing less than 15 pounds and measuring more than 84 inches in combined length and girth are charged the 15pound rates (the ``balloon rate''). Under the proposal, Priority Mail pieces weighing less than 20 pounds and measuring more than 84 inches in combined length and girth would be charged the 20pound rates. The new balloon rate would apply only to pieces addressed for local delivery and to zones 14.

Priority Mail pieces that exceed 1 cubic foot and are addressed to zones 58 could be subject to a new dimensional weight price. Postage for these pieces would be rated at the greater of their actual weight or their dimensional weight. In general, if a piece is relatively light for its size, it may be subject to a dimensional weight price. Dimensional weight is calculated using one of two formulas, one for rectangular and one for nonrectangular pieces.

Express Mail

Express Mail pieces often contain material that ranges from a half pound to 2 pounds. Currently, these pieces pay the 2pound price. To keep Express Mail a viable, lowcost alternative for mailers, the pricing proposal would add a new 1pound price.

The flatrate envelope would continue to pay the halfpound price, regardless of weight.

Extra Services

Our proposal keeps insured mail reliable, easy, and affordable. All insured pieces would have a barcoded label and receive a delivery scan. We would not require a signature for insured items with an indemnity of $200 or less.

We propose new prices for Bulk Parcel Return Service, Business Reply Mail, Certificate of Mailing, Certified Mail, Collect on Delivery, Delivery Confirmation, Bulk Insurance, Express Mail Insurance, Merchandise Return Service, Money Orders, Parcel Airlift, Parcel Return Service, Registered Mail, Restricted Delivery, Return Receipt, Return Receipt for Merchandise, Signature Confirmation, and Special Handling.

Other Services

Our proposal seeks to modernize our services, improve address quality, and reduce undeliverableasaddressed mail.

The Address Change Service electronic option for FirstClass Mail would decrease from $0.21 to $0.06. All other classes of mail would increase from $0.21 to $0.25. Manual Address Correction Service for all classes of mail would decrease from $0.75 to $0.50.

A new automated option for Address Change Service would allow FirstClass Mail letters to receive the first two notices at no charge, then each additional notice for $0.05 each. Standard Mail letters would receive the first two notices at $0.02, then each additional notice for $0.15 each. This new option would require mailers to use the new 4 State Customer Barcode.

Our proposed standards recognize the value of address matching software by encouraging mailers of all discount letters and flats to match their addresses using a Coding Accuracy Support System (CASS) certified address matching process and the correct ZIP+4 code on each piece in their mailings. Because smaller mailers may need time to initiate such a change, we propose to implement this requirement in July 2009.

The fee structure for Confirm service would change from the Silver, Gold, and Platinum tiers to a unitbased structure. Customers would pay standardized annual fees and purchase blocks of units that are redeemed for Confirm scans. Units are redeemed at the rates of one unit per FirstClass Mail scan or five units per scan for any other class of mail. The cost per block of units declines as volume thresholds are reached.

Onsite meter services are no longer offered. The fees associated with onsite meter service, meter resetting, examination, and checking meters in and out of service would be eliminated.

Individual post office box holders at different locations may experience varying price changes as we continue to align prices with our costs for each location. Our proposal would also align the Caller Service fees.

We propose price changes for Address Sequencing Service, Mailing List Service, Permit Imprint fees, Pickup on Demand service, Premium Forwarding Service, Shipper Paid Forwarding, Stamped Cards, Stamped Envelopes, and all annual mailing fees.

Although we are exempt from the notice and comment requirements of the Administrative Procedure Act (5 U.S.C 410 (a)), we invite comments on the following proposed revisions to Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM), incorporated by reference in the Code of Federal Regulations. See 39 CFR part 111. List of Subjects in 39 CFR Part 111

Administrative practice and procedure, Postal Service.

Accordingly, 39 CFR part 111 is proposed to be amended as follows: PART 111[AMENDED]

1. The authority citation for 39 CFR part 111 continues to read as follows:

Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 414, 30013011, 32013219, 34033406, 3621, 3626, 5001.

2. Revise the following sections of Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM), as follows: 100 Retail Mail: Letters, Cards, Flats, and Parcels
101 Physical Standards
1.0 Physical Standards for Letters
1.1 Dimensional Standards for Letters
* * * * *
[Renumber item c as item d. Insert new item c as follows:]

c. Not more than 3.5 ounces.
* * * * *
2.0 Physical Standards for Flats
2.1 General Definition
* * * * *
[Renumber current item c as new item f. Insert new items c through e as follows:]

c. Flexible (see 1.3).
[[Page 56591]]

d. Rectangular.

e. Uniformly thick (see 1.4)
* * * * *
[Insert new 2.2 through 2.4 as follows:]

2.2 Flexibility

Flatsize pieces must meet minimum flexibility criteria. Test flexibility as follows:

a. For pieces 10 inches or longer:

1. Place the piece with the length perpendicular to the edge of a flat surface and extend the piece 5 inches off the surface.

2. Press down on the piece at a central point about an inch off the edge of the surface, exerting a steady pressure.

3. The piece is flexible if it can bend at least 2 inches without being damaged.

b. For pieces less than 10 inches long:

1. Place the piece with the length perpendicular to the edge of a flat surface and extend the piece onehalf of its length off the surface.

2. Press down on the piece at a central point about an inch off the edge of the surface, exerting a steady pressure.

3. The piece is flexible if it can bend at least 1 inch without being damaged.

2.3 Uniform Thickness

The contents of a flatsize mailpiece must remain uniformly thick so that the dimensions of the envelope, wrapper, or sleeve remain constant. If the contents are of irregular thickness or significantly smaller than the envelope, wrapper, or sleeve, those contents must be secured to prevent shifting within the wrapping during processing and surrounded with material or padding to ensure that the mailpiece remains uniformly thick.

2.4 FlatSize Pieces Not Eligible for FlatSize Rates

Mailpieces that do not meet the standards in 2.1 through 2.3 are not eligible for flatsize rates and must pay applicable parcel rates. 3.0 Physical Standards for Parcels
* * * * *
[Change the terminology from ``irregular'' parcels to ``nonmachinable'' parcels in the heading and text of 3.5.]
* * * * *
5.0 Additional Physical Standards for Priority Mail
* * * * *
5.2 Two or More Packages

[Revise 5.2 as follows:]

With the exception of USPSproduced Priority Mail flatrate envelopes or boxes, two or more packages may be mailed as a single parcel if they are about the same size or shape, are securely wrapped or fastened together, and do not exceed the weight or size limits. * * * * *
6.0 Additional Physical Standards for FirstClass Mail
* * * * *
6.4 Nonmachinable Pieces
6.4.1 Nonmachinable Letters

[Revise 6.4.1 as follows:]

Lettersize pieces with one or more of the nonmachinable characteristics in 1.2 are subject to the applicable postage for a flatsize piece, based on weight.
[Revise heading and text of 6.4.2 as follows:]

6.4.2 Nonmachinable Flats

Flatsize pieces that do not meet the standards in 2.0 are subject to the applicable postage for a parcelsize piece, based on weight. * * * * *
[Delete 8.0, Additional Physical Standards for Bound Printed Matter. Renumber 9.0 and 10.0 as new 8.0 and 9.0.]
* * * * *
102 Elements on the Face of a Mailpiece
* * * * *
3.0 Placement and Content of Mail Markings
* * * * *
[Revise heading of 3.3 as follows:]
3.3 Mail Markings

[Revise first sentence of 3.3 as follows:]

Mailers must print the basic required Package Services subclass marking``Parcel Post'' or ``PP,'' ``Media Mail,'' or ``Library Mail''on each piece claimed at the respective rate. * * *
* * * * *
113 Rates and Eligibility
[We provide the proposed rates and fees for all Express Mail services in ``Rates and Fees'' at the end of this notice, after all of the proposed mailing standards.]
1.0 Express Mail Rates and Fees
* * * * *
1.2 Express Mail Rate Application

[Revise 1.2 as follows:]

Except under 1.4, FlatRate Envelope, Express Mail items are charged the 0.5pound rate for items up to 0.5 pound. Items over 0.5 pound are rounded up to the next whole pound. For example, if a piece weighs 0.25 pound, the weight (postage) increment is 0.5 pound; if a piece weighs 0.75 pound, the weight (postage) increment is 1 pound; if a piece weighs 1.2 pounds, the weight (postage) increment is 2 pounds. * * * * *
120 Retail Mail: Priority Mail
123 Rates and Eligibility
[We provide the proposed rates and fees for all Priority Mail services in ``Rates and Fees'' at the end of this notice, after all of the proposed mailing standards.]
1.0 Priority Mail Rates and Fees
* * * * *
1.2 Priority Mail Rate Application

[Revise 1.2 as follows:]

Except under 1.3, 1.4, and 1.5, Priority Mail rates are charged per pound; any fraction of a pound is rounded up to the next whole pound. For example, if a piece weighs 1.2 pounds, the weight (postage) increment is 2 pounds. The minimum postage amount per addressed piece is the 1pound rate. The Priority Mail rate up to 1 pound is based on weight only; rates for pieces weighing more than 1 pound are based on weight and zone. Other charges may apply. See Exhibit 1.2, Priority Mail Rates.
1.3 Minimum Rate for Parcels to Zones 14

[Revise 1.3 as follows:]

Parcels addressed for delivery to Zones 14 (including Local) that weigh less than 20 pounds but measure more than 84 inches (but not more than 108 inches) in combined length and girth are charged the applicable zone rate for a 20pound parcel (balloon rate).
[Delete 1.6 and 1.7; renumber 1.4 and 1.5 as new 1.6 and 1.7. Insert new 1.4 and 1.5 as follows:]
1.4 Dimensional Weight Rate for LowDensity Parcels to Zones 58

Postage for parcels addressed for delivery to Zones 58 and exceeding 1 cubic foot (1,728 cubic inches) is charged based on the actual weight or the dimensional weight (as calculated in 1.4.1 or 1.4.2), whichever is greater.
1.4.1 Determining Dimensional Weight for Rectangular Parcels

Follow these steps to determine the dimensional weight for a rectangular parcel:

a. Measure the length, width, and height in inches. Round off each measurement.

b. Multiply the length by the width by the height.

c. If the result exceeds 1,728 cubic inches, divide the result by 194 and round up to the next whole number to
[[Page 56592]]
determine the dimensional weight in pounds.
1.4.2 Determining Dimensional Weight for Nonrectangular Parcels

Follow these steps to determine the dimensional weight for a nonrectangular parcel:

a. Measure the length, width, and height in inches at their extreme dimensions. Round off each measurement.

b. Multiply the length by the width by the height.

c. Multiply the result by an adjustment factor of 0.785.

d. If the result exceeds 1,728 cubic inches, divide the result by 194 and round up to the next whole number to determine the dimensional weight in pounds.

e. If the dimensional weight exceeds 70 pounds, the parcel pays the 70pound rate.

1.5 FlatRate Boxes and Envelopes

Any amount of material may be mailed in a USPSproduced Priority Mail flatrate box or flatrate envelope. When sealing a flatrate box or flatrate envelope, the container flaps must be able to close within the normal folds. Tape may be applied to the flaps and seams to reinforce the container, provided the design of the container is not enlarged by opening the sides, and the container is not reconstructed in any way.

1.5.1 FlatRate BoxesRate and Eligibility

Each USPSproduced Priority Mail flatrate box is charged $8.80, regardless of the actual weight of the piece or its destination. Only USPSproduced flatrate boxes are eligible for the flatrate box rate. 1.5.2 FlatRate EnvelopesRate and Eligibility

Each USPSproduced Priority Mail flatrate envelope is charged $4.65, regardless of the actual weight of the piece or its destination. Only USPSproduced flatrate envelopes are eligible for the flatrate envelope rate.
* * * * *
130 Retail Mail: FirstClass Mail
133 Rates and Eligibility
[We provide the proposed rates and fees for all FirstClass Mail services in ``Rates and Fees'' at the end of this notice, after all of the proposed mailing standards.]
1.0 FirstClass Mail Rates and Fees
1.1 FirstClass Mail SinglePiece Rate Application
* * * * *

[Revise the weight limit in item b as follows:]

b. The letter rate applies to lettersize pieces that meet the standards in 101.1.1 and weigh 3.5 ounces or less, and that are not eligible for and claimed at the card rate.

[Insert new items c and d as follows:]

c. The flat rate applies to flatsize pieces that meet the standards in 101.2.1 and lettersize pieces with one or more of the nonmachinable characteristics in 101.1.2.

d. The parcel rate applies to parcelsize pieces under 101.3.0 and to flatsize pieces that do not meet the standards in 101.2.0. * * * * *
[Restructure the rate tables in 1.4 through 1.7 as new 1.4 through 1.8 and 1.10 to add separate letter, flat, and parcel rate tables. Delete current 1.9 and 1.10 for the nonmachinable surcharge. Renumber current 1.7 as new 1.9.]
1.9 Keys and Identification Devices
[Revise renumbered 1.9 to remove references to nonmachinable surcharge in the first three sentences as follows:]

Keys and identification devices (such as identification cards and uncovered identification tags) that weigh 13 ounces or less are returned at the applicable singlepiece FirstClass Mail parcel rate plus the fee. Keys and identification devices that weigh more than 13 ounces but not more than 1 pound are returned at the 1pound Priority Mail rate plus the fee. Keys and identification devices weighing more than 1 pound but not more than 2 pounds are mailed at the 2pound Priority Mail rate for zone 4 plus the fee. * * *
* * * * *
2.0 Basic Eligibility Standards for FirstClass Mail
2.1 Description of Service
* * * * *
2.1.2 Rate Options

[Revise 2.1.2 to add shapebased reference as follows:]

FirstClass Mail offers shapebased singlepiece rates in 1.0. * * * * *
150 Retail Mail: Parcel Post
153 Rates and Eligibility
[We provide the proposed rates and fees for all Parcel Post services in ``Rates and Fees'' at the end of this notice, after all of the proposed mailing standards.]
1.0 Parcel Post Rates and Fees
1.1 Rate Eligibility
* * * * *

[Revise item d as follows:]

d. Parcels that weigh less than 20 pounds but measure more than 84 inches (but not more than 108 inches) in combined length and girth are charged the applicable rate for a 20pound parcel (balloon rate). * * * * *
1.7 InterBMC/ASF Machinable Parcel Post
[Revise the last sentence in 1.7 as follows:]
* * * Parcels that weigh less than 20 pounds but measure more than 84 inches (but not more than 108 inches) in combined length and girth are charged the applicable rate for a 20pound parcel (balloon rate). 1.8 InterBMC/ASF Nonmachinable Parcel Post

[Revise the first three sentences in 1.8 as follows:]

Rates include the $3.62 nonmachinable surcharge. Regardless of weight, a parcel that meets any of the criteria in 101.7.2, Nonmachinable Parcel Post Standards, must pay the rate listed in Exhibit 1.9. Parcels that weigh less than 20 pounds but measure more than 84 inches (but not more than 108 inches) in combined length and girth are charged the applicable rate for a 20pound parcel (balloon rate). * * *
1.10 Local and IntraBMC/ASF Machinable Parcel Post
[Revise the third sentence in 1.10 as follows:]
* * * Parcels that weigh less than 20 pounds but measure more than 84 inches (but not more than 108 inches) in combined length and girth are charged the applicable rate for a 20pound parcel (balloon rate). * * *
1.11 Local and IntraBMC/ASF Nonmachinable Parcel Post

[Revise the first three sentences in 1.11 as follows:]

Rates include the $1.85 nonmachinable surcharge. Regardless of weight, a parcel that meets any of the criteria in 101.7.2, Nonmachinable Parcel Post Standards, must pay the rates in Exhibit 1.12. Parcels that weigh less than 20 pounds but measure more than 84 inches (but not more than 108 inches) in combined length and girth are charged the applicable rate for a 20pound parcel (balloon rate). * * * 160 Retail Mail: Bound Printed Matter
[Delete 160 in its entirety. These standards are incorporated into 360 and 460.]
* * * * *
[[Page 56593]]
200 Discount Mail: Letters and Cards
201 Physical Standards
1.0 Physical Standards for Machinable Letters and Cards
1.1 Physical Standards for Machinable Letters
* * * * *
1.1.2 Weight Standards for Machinable Letters
[Revise 1.1.2 to change the maximum weight for FirstClass Mail machinable letters to 3.5 ounces as follows:]

The maximum weight for Presorted FirstClass Mail machinable letters is 3.5 ounces (0.2188 pound). The maximum weight for Standard Mail machinable letters is 3.3 ounces (0.2063 pound).
* * * * *
2.0 Physical Standards for Nonmachinable Letters
* * * * *
[Delete 2.2.2. Renumber 2.2.1 as new 2.2 and revise as follows:] 2.2 Additional Criteria for FirstClass Mail Nonmachinable Letters

Lettersize pieces (except pieces eligible for and mailed at card rates) with one or more of the nonmachinable characteristics in 2.1 are subject to the rates for flatsize pieces
.[Delete 2.3.2. Renumber 2.3.1 as new 2.3 and revise as follows:] 2.3 Additional Criteria for Standard Mail Nonmachinable Letters

The nonmachinable rates in 243.1.5 apply to Standard Mail letter size pieces that weigh 3.3 ounces or less and have one or more of the nonmachinable characteristics in 2.1.
3.0 Physical Standards for Automation Letters and Cards
* * * * *
3.3 Weight Standards for FirstClass Mail Automation Letters and Cards [Revise 3.3 to change the weight limit as follows:]

Maximum weight for FirstClass Mail automation letters is 3.5 ounces (0.2188 pound). See 3.13.4 for pieces heavier than 3 ounces. 3.4 Weight Standards for Standard Mail Automation Letters
[Revise 3.4 to remove the reference to automation carrier route mail as follows:]

Maximum weight for Standard Mail mailed at automation and Enhanced Carrier Route high density and saturation rates is 3.5 ounces (0.2188 pound). See 3.13.4 for pieces heavier than 3 ounces.
* * * * *
202 Elements on the Face of a Mailpiece
* * * * *
3.0 Placement and Content of Mail Markings
* * * * *
3.3 Placement of Mail Markings
* * * * *
[Revise item b, item b3, and item c to delete ``AUTOCR.'']
* * * * *
3.4 Exceptions to Markings
* * * * *
[Revise item a to remove references to carrier route mail as follows:]

a. Automation Letters: FirstClass Mail and Standard Mail letters do not require an ``AUTO'' marking if they bear a delivery point barcode in the address block or on an insert visible through a window. FirstClass Mail letters not marked ``AUTO'' must bear both the ``Presorted'' or ``PRSRT'' and ``FirstClass'' markings. Standard Mail letters not marked ``AUTO'' must bear the appropriate basic marking in 3.3a.

[Revise the second sentence in item b as follows:]

b. * * * The twoletter rate category code required in the keyline on manifest mailing pieces prepared under 705.2.0, Manifest Mailing System, meets the requirement for other rate markings.
* * * * *
230 Discount Letters and Cards: FirstClass Mail
233 Rates and Eligibility
[We provide the proposed rates and fees for all FirstClass Mail services in ``Rates and Fees'' at the end of this notice, after all of the proposed mailing standards.]
1.0 Rates and Fees for FirstClass Mail
1.1 Rate Application

[Revise 1.1 to add ``letter'' as follows:]

Postage is based on the letter rate that applies to the weight of each addressed piece.
1.2 Rate Computation for FirstClass Mail Letters
[Revise the first sentence in 1.2 to add ``letter'' as follows:]

FirstClass Mail letter rates are charged per ounce or fraction thereof; any fraction of an ounce is considered a whole ounce. * * * * * * * *
[Delete 1.13, 1.14, and 1.16. Renumber 1.15 as new 1.13. Renumber 1.17 through 1.19 as new 1.14 through 1.16.]
* * * * *
3.0 Basic Standards for FirstClass Mail Letters
3.1 Description of Service
* * * * *
3.1.2 Rate Options

[Revise 3.1.2 as follows:]

FirstClass Mail letters offer shapebased singlepiece rates in 133.1.0 and discounted rates in 1.0 for presorted mailings of 500 or more pieces that weigh 3.5 ounces or less.
* * * * *
3.3 Additional Standards for FirstClass Mail

[Revise introductory text in 3.3 as follows:]

All pieces of presorted FirstClass Mail letters must: * * * * *
[Revise the weight in item b as follows:]

b. Weigh 3.5 ounces or less.
* * * * *
3.6 ZIP Code Accuracy
3.6.1 Basic Standards

[Revise the text in 3.6.1 as follows:]

The ZIP Code accuracy standard is a means of ensuring that the ZIP+4 or 5digit ZIP Code in the delivery address correctly matches the delivery address information. For the purposes of this standard, address means a specific address associated with a specific ZIP+4 or 5 digit ZIP Code. Effective July 2009, mailers of all discount letters, flats, and parcels must properly code and match their address lists using one of the CASScertified address matching methods in 708.3.0 and use the correct ZIP+4 code on each mailpiece. Mailers are encouraged to begin this practice immediately. Addresses used on pieces claiming discount rates must meet these requirements:

a. Each address and associated ZIP+4 or 5digit ZIP Code used on the mailpieces in a mailing must be verified and corrected within 12 months before the mailing date with one of the USPSapproved methods in 3.6.2.

b. If an address used on a mailpiece in a mailing at one class of mail and rate is verified and corrected with an approved method, the same address may be used during the following 12 months to meet the ZIP Code accuracy standard required for mailing at any other class of mail and rate.
* * * * *
[[Page 56594]]
4.0 Additional Eligibility Standards for Nonautomation FirstClass Mail Letters
* * * * *
[Revise heading of 4.3 as follows:]
4.3 Letters With Nonmachinable Characteristics

[Revise 4.3 to delete nonmachinable surcharge as follows:]

Letters with one or more of the nonmachinable characteristics in 201.2.1 must pay the flatsize rate. In addition to the standards in 3.0, Basic Standards for FirstClass Mail Letters, all pieces in a FirstClass Mail Presorted nonmachinable lettersize mailing must be marked, sorted, and documented according to 235.5.4, Nonmachinable Preparation.
* * * * *
[Revise heading of 5.0 to delete ``Carrier Route'' as follows:] 5.0 Additional Eligibility Standards for Automation Rate FirstClass Mail Letters
[Revise heading of 5.1 as follows:]
5.1 Basic Standards for Automation FirstClass Mail Letters
* * * * *
[Delete item d2. Move text in item d1 into item d.]
* * * * *
[Delete 5.2, Carrier Route Accuracy, and renumber 5.3 and 5.4 as new 5.2 and 5.3.]
* * * * *
5.2 Maximum Weight for Automation Letters
[Revise renumbered 5.2 to change maximum weight from 3.3 to 3.5 ounces as follows:]

Maximum weight for FirstClass Mail automation letters is 3.5 ounces (0.2188 pound) (see 201.3.13.4, Heavy Letter Mail, for pieces heavier than 3 ounces).
5.3 Rate ApplicationAutomation Cards and Letters
* * * * *
[Delete item a. Renumber items b through e as new items a through d and revise as follows:]

a. Groups of 150 or more pieces in 5digit/scheme trays qualify for the 5digit rate. Preparation to qualify for the 5digit rate is optional. Pieces placed in full 3digit/scheme trays in lieu of 5 digit/scheme overflow trays under 235.6.6 are eligible for the 5digit rates.

b. Groups of 150 or more pieces in 3digit/scheme trays qualify for the 3digit rate. Pieces placed in full AADC trays in lieu of 3digit/ scheme overflow trays under 235.6.6 are eligible for the 3digit rates.

c. Groups of fewer than 150 pieces in origin 3digit/scheme trays and all pieces in AADC trays qualify for the AADC rate. Pieces placed in mixed AADC trays in lieu of AADC overflow trays under 235.6.6 are eligible for the AADC rates.

d. Pieces in mixed AADC trays qualify for the mixed AADC rate, except for pieces prepared under 5.3c.
* * * * *
[Delete 5.5 and renumber 5.6 and 5.7 as new 5.4 and 5.5.]
* * * * *
[Delete renumbered 5.4.7, Rural and Highway Contract Routes.] * * * * *
234 Postage Payment and Documentation
* * * * *
2.0 Postage Payment for Presorted Letters
* * * * *
2.2 Affixed Postage for Presorted FirstClass Mail
* * * * *
[Revise item b to delete the reference to the nonmachinable surcharge as follows:]

b. A precanceled stamp or the full postage at the lowest First Class Mail 1ounce rate applicable to the mailing job, and full postage on metered pieces for any additional ounces or extra services. * * * * *
235 Mail Preparation
1.0 General Definition of Terms
* * * * *
1.2 Definitions of Mailings
* * * * *
[Revise the second sentence in item a to remove ``automation carrier route'' as follows:]

a. * * * Generally, automation and nonautomation letters must be prepared as separate mailings. * * *
* * * * *
1.3 Terms for Presort Levels
* * * * *
[Delete item a and renumber items b through k as new items a through j.]
* * * * *
1.4 Preparation Definitions and Instructions
* * * * *

[Revise item b as follows:]

b. A full letter tray is one in which faced, upright pieces fill the length of the tray between 85% and 100% full.
* * * * *
[Revise item e by deleting the last sentence.]
* * * * *
2.0 Bundles
* * * * *
2.3 Preparing Bundles
* * * * *
[Revise item a by deleting the first sentence and revising the remaining sentence as follows:]

a. The maximum thickness for bundles is 6 inches. * * * * *
[Delete item d and renumber items e and f as new items d and e.] * * * * *
2.8 Labeling Bundles
[Revise the first sentence in 2.8 by deleting the reference to carrier route bundles as follows:]

Unless excepted by standard, the presort level of each bundle must be identified either with an optional endorsement line under 708.7.0 or with a barcoded pressuresensitive bundle label. * * *
* * * * *
[Delete 2.10 and 2.11.]
* * * * *
4.0 Tray Labels
* * * * *
4.4 Line 2 (Content Line)
[Revise the table in item 4.4b to delete the entries for ``Carrier Route,'' ``Carrier Routes,'' ``General Delivery Unit,'' ``Highway Contract Route,'' ``Post Office Box Section,'' and ``Rural Route.''] * * * * *
5.0 Preparation for Nonautomation Letters
* * * * *
[Delete 5.2, Manual Only Option, and renumber 5.3 and 5.4 as new 5.2 and 5.3.]
5.2 Machinable Preparation
* * * * *
5.2.2 Traying and Labeling

[Revise the introductory text in 5.2.2 as follows:]

Instead of preparing overflow AADC trays with fewer than 150 pieces, mailers may include these pieces in mixed AADC trays. * * * * *
[Delete item a about labeling the 5digit tray. Renumber items b through d as
[[Page 56595]]
new items a through c. Revise renumbered item a to reflect the 3digit origin tray as follows:]

a. Separate 3digit origin trays required for each origin 3digit ZIP Code; one lessthanfull tray permitted for each origin ZIP Code; labeling:

1. Line 1: L002, Column A.

2. Line 2: ``FCM LTR 3D MACH.''
* * * * *
5.3 Nonmachinable Preparation
5.3.1 Nonmachinable Bundling
[Revise the secondtolast sentence in 5.3.1 as follows:]
* * * Smaller volumes are not permitted except for mixed ADC bundles. * * *
* * * * *
6.0 Preparation for Automation Rate Letters
* * * * *
6.2 Mailings
* * * * *

[Revise item b as follows:]

b. FirstClass Mail. A single automation rate FirstClass Mail mailing may include pieces prepared at 5digit, 3digit, origin 3 digit, AADC, and mixed AADC rates.
* * * * *
6.3 Marking
[Revise 6.3 to delete the carrier route references as follows:]

All automation rate pieces must be marked under 202.3.0, Placement and Content of Mail Markings, and 202.4.0, Endorsement Placement. Pieces claimed at an automation rate must bear the appropriate class marking and, except as provided in 202.3.0, Placement and Content of Mail Markings, and 202.4.0, Endorsement Placement, ``AUTO.'' Pieces not claimed at an automation rate must not bear ``AUTO'' unless single piece rate postage is affixed or the corrective singlepiece rate marking (``SNGLP'' or ``SinglePiece'') is applied.
6.4 General Preparation
[Revise 6.4 to delete carrier route references and add a new last sentence as follows:]

Grouping, bundling, and labeling are not generally required or permitted, except bundling is required in any mailing consisting entirely of cardsize pieces and for pieces in overflow and lessthan full trays, and grouping is required under 6.6.
* * * * *
[Delete 6.6 and 6.7. Renumber 6.8 through 6.10 as new 6.6 through 6.8.] 6.6 Tray Preparation
[Add introductory statement about overflow trays to 6.6 as follows:]

Instead of preparing overflow trays with fewer than 150 pieces, mailers may include these pieces in the next tray level if it results in a full tray. Pieces must be grouped by destination. This option does not apply to origin 3digit trays. When using this option, it must be applied to the entire mailing. Preparation sequence, tray size, and Line 1 labeling:
[Delete items a through c and renumber items d through g as new items a through d. Revise renumbered item a as follows:]

a. 5digit/scheme (see 1.4e): optional, but required for 5digit rate (150piece minimum); overflow allowed.

1. For 5digit scheme trays, use destination shown in the current USPS City State Product.

2. For 5digit trays, use city, state, and 5digit ZIP Code destination on pieces (see 4.0 for overseas military mail). * * * * *
6.7 Tray Line 2
* * * * *
[Delete items a through c and renumber items d through i as new items a through f.]
* * * * *
240 Discount Letters and Cards: Standard Mail
243 Rates and Eligibility
[We provide the proposed rates and fees for all Standard Mail services in ``Rates and Fees'' at the end of this notice, after all of the proposed mailing standards.]
1.0 Rates and Fees for Standard Mail
* * * * *
1.7 Computing Postage for Standard Mail
* * * * *
1.7.8 Discount for Heavy Automation Letters
[Revise 1.7.8 by deleting the secondtolast sentence about automation ECR.]
* * * * *
[Delete 1.7.10.]
* * * * *
3.0 Basic Standards for Standard Mail Letters
* * * * *
3.2 Defining Characteristics
3.2.1 Mailpiece Weight Limit

[Revise 3.2.1 as follows:]

All Standard Mail pieces must weigh less than 16 ounces. The following weight limits also apply to pieces mailed at Standard Mail letter rates:

a. Pieces mailed at machinable and nonmachinable letter rates may weigh up to 3.3 ounces. Lettersize pieces weighing more than 3.3 ounces and prepared as nonmachinable letters are mailable at Not Flat Machinable rates (see 443), unless they qualify for automation letter rates or Enhanced Carrier Route highdensity or saturation rates.

b. Pieces mailed at automation letter rates or Enhanced Carrier Route highdensity or saturation rates may weigh up to 3.5 ounces. * * * * *
3.3 Additional Basic Standards for Standard Mail
* * * * *

[Revise item e by adding a reference to 3.8.1 as follows:]

e. Each piece must bear the addressee's name and delivery address, including the correct ZIP Code or ZIP+4 code (see 3.8.1), unless an alternative addressing format is used subject to 602.3.0. Detached address labels may be used subject to 602.4.0.
* * * * *
3.8 ZIP Code Accuracy
3.8.1 Basic Standards
[Revise the introductory text and item a in 3.8.1 as follows:]

The ZIP Code accuracy standard is a means of ensuring that the ZIP+4 or 5digit ZIP Code in the delivery address correctly matches the delivery address information. For the purposes of this standard, address means a specific address associated with a specific ZIP+4 or 5 digit ZIP Code. Effective July 2009, mailers of all discount letters, flats, and parcels must properly code and match their address lists using one of the CASScertified address matching methods in 708.3.0 and use the correct ZIP+4 code on each mailpiece. Mailers are encouraged to begin this practice immediately. Except for mail bearing a simplified address, addresses used on pieces claiming discount rates must meet these requirements:

a. Each address and associated ZIP+4 or 5digit ZIP Code used on the mailpieces in a mailing must be verified and corrected within 12 months before the mailing date with one of the USPSapproved methods in 3.8.2.
[Delete item b and renumber items c and d as new items b and c.] * * * * *
4.0 Rate Eligibility for Standard Mail
* * * * *
[[Page 56596]]
4.2 Minimum Per Piece Rates
* * * * *
[Revise item b1 by deleting ``(nonletter).'']
* * * * *
[Revise item b3 by changing the base rate for Customized MarketMail as follows:]

3. Pieces mailed as Customized MarketMail under 705.1.0 must pay the Regular or Nonprofit Standard Mail 5digit nonentry rates for Not FlatMachinable pieces and must not exceed 3.3 ounces.
[Revise item c by deleting the last sentence about DDU rates.] * * * * *
[Delete 4.4, Residual Shape Surcharge.]
[Replace ``presorted'' with ``nonautomation'' throughout 5.0.] 5.0 Additional Eligibility Standards for Nonautomation Standard Mail Letters
* * * * *
[Revise heading and text of 5.4 to refer to new AADC and mixed AADC rates, instead of basic rates, as follows:]

5.4 Machinable Rate Application

Machinable letters are subject only to AADC and mixed AADC rates. 5.4.1 AADC Rate

The AADC rate applies to qualifying lettersize machinable pieces (see 201.1.0, Physical Standards for Machinable Letters and Cards) in quantities of 150 or more pieces prepared in AADC trays for a single AADC (see L801).

5.4.2 Mixed AADC Rate

The mixed AADC rate applies to qualifying lettersize machinable pieces that the mailer prepares in mixed AADC trays, except for pieces placed in mixed AADC trays in lieu of overflow AADC trays (see 245.5.3.2).
[Delete 5.5 and 5.6. Insert new 5.5 as follows:]

5.5 Nonmachinable Rate Application

Nonmachinable rates in 1.0 apply only to Standard Mail lettersize pieces (including cardsize pieces) weighing 3.3 ounces or less that have one or more of the nonmachinable characteristics in 201.2.1. Nonmachinable lettersize pieces weighing more than 3.3 ounces are subject to Not FlatMachinable rates (see 443).

5.5.1 5Digit Rate

The 5digit rate applies to lettersize pieces subject to the nonmachinable rates (see 5.5) prepared in quantities of 150 or more pieces for a 5digit ZIP Code and presented in 5digit trays under 245.5.0.

5.5.2 3Digit Rate

The 3digit rate applies to lettersize pieces subject to the nonmachinable rates (see 5.5) prepared in quantities of 150 or more pieces for a 3digit ZIP Code and presented in 3digit trays under 245.5.0.

5.5.3 ADC Rate

The ADC rate applies to lettersize pieces subject to the nonmachinable rates (see 5.5) prepared in quantities of 150 or more pieces for an ADC and presented in ADC trays under 245.5.0. 5.5.4 Mixed ADC Rate

The mixed ADC rate applies to lettersize pieces that are subject to the nonmachinable rates and prepared in mixed ADC trays. [Revise heading in 6.0 as follows:]
6.0 Additional Eligibility Standards for Enhanced Carrier Route Standard Mail Letters
6.1 General Enhanced Carrier Route Standards
6.1.1 Optional Preparation
[Revise 6.1.1 by deleting the last sentence about automation basic carrier route.]
* * * * *
6.1.2 Basic Eligibility Standards
* * * * *
[Revise item b by deleting the second sentence about automation basic carrier route.]
* * * * *
6.1.3 Maximum Weight for Enhanced Carrier Route Letters
[Revise 6.1.3 by deleting the reference to automation carrier route as follows:]

Maximum weight for Standard Mail Enhanced Carrier Route high density and saturation pieces: 3.5 ounces (0.2188 pound) (see 201.3.13.4, Heavy Letter Mail, for pieces heavier than 3 ounces). * * * * *
6.2 Carrier Route Accuracy
6.2.1 Basic Standards
* * * * *
[Revise item a by deleting the last sentence.]
* * * * *
[Delete 6.6, Automation ECR Standards.]
* * * * *
7.0 Eligibility Standards for Automation Rate Standard Mail * * * * *
7.3 Rate Application for Automation Letters
* * * * *
[Revise items a through d to accommodate an option to overflow trays as follows:]

a. Groups of 150 or more pieces in 5digit/scheme trays qualify for the 5digit rate. Preparation to qualify for that rate is optional. Pieces placed in full 3digit/scheme trays in lieu of 5digit/scheme overflow trays are eligible for 5digit rates (see 245.7.5).

b. Groups of 150 or more pieces in 3digit/scheme trays qualify for the 3digit rate. Pieces placed in full AADC trays in lieu of 3digit/ scheme overflow trays are eligible for 3digit rates (see 245.7.5).

c. Groups of fewer than 150 pieces in origin/entry 3digit/scheme trays and groups of 150 or more pieces in AADC trays qualify for the AADC rate. Pieces placed in mixed AADC trays in lieu of AADC overflow trays also are eligible for AADC rates (see 245.7.5).

d. Pieces in mixed AADC trays qualify for the mixed AADC rate, except for pieces prepared under 7.3c.
* * * * *
245 Mail Preparation
1.0 General Information for Mail Preparation
* * * * *
1.2 Definitions of Mailings
* * * * *
[Delete item b1 about automation ECR. Renumber items b2 through b8 as new items b1 through b7.]
* * * * *
1.4 Preparation Definitions and Instructions
* * * * *

[Revise item b as follows:]

b. A full letter tray is one in which faced, upright pieces fill the length of the tray between 85% and 100% full.
* * * * *

[Revise the last sentence in item e as follows:]

e. * * * When standards require 5digit/scheme sort, mailers must prepare all possible 5digit scheme trays, then prepare all possible 5 digit trays.

[Revise item f by adding a new last sentence as follows:]

f. * * * When standards require 3digit/scheme sort, mailers must prepare all possible 3digit scheme trays, then prepare all possible 3 digit trays.
* * * * *
[[Page 56597]]
2.0 Bundles
* * * * *
2.3 Preparing Bundles
* * * * *
[Revise item c by deleting ``and for Standard Mail pieces where the mailer has requested ``manual only'' processing.'' Revise item d by deleting the second sentence.]
* * * * *
[Revise heading in 5.0 as follows:]
5.0 Preparation for Nonautomation Letters
* * * * *
5.2 Marking
[Revise 5.2 by deleting ``AUTOCR'' in the last sentence.]
* * * * *
[Delete 5.3. Renumber current 5.4 and 5.5 as new 5.3 and 5.4.] 5.3 Machinable Preparation
5.3.1 Machinable Bundling
* * * * *
[Delete item b. Renumber item c as new item b.]
* * * * *
5.3.2 Traying and Labeling
[Replace the first sentence in 5.3.2 with new text as follows:]

Instead of preparing overflow AADC trays with fewer than 150 pieces, mailers may include these pieces in mixed AADC trays. * * * * * * * *
[Delete items a through c. Renumber items d and e as new items a and b and revise as follows:]

a. AADC (required); 150piece minimum (overflow allowed); labeling: * * *

* * * * *

b. Mixed AADC (required); no minimum; labeling: * * * * * * * *
5.4 Nonmachinable Preparation
5.4.1 Nonmachinable Bundling
[Revise renumbered 5.4.1 to delete the fourth sentence about manual processing.]
* * * * *
5.4.2 Traying and Labeling
[Revise introductory text in 5.4.2 and items a through c as follows:]

Overflow trays are not allowed. Preparation sequence, tray size, and labeling:

a. 5digit (required); 150piece minimum; labeling: * * * * * * * *

b. 3digit (required); 150piece minimum; labeling: * * * * * * * *

c. ADC (required); 150piece minimum; labeling: * * * * * * * *
6.0 Preparation for Enhanced Carrier Route Letters
6.1 Basic Standards
[Revise 6.1 by deleting ``(Enhanced Carrier Route automation rate mailings must be prepared under 7.0)'' in the introductory text.] * * * * *
6.4 Carrier Route Bundle Preparation
* * * * *

[Revise item a as follows:]

a. Mailers must prepare only carrier route bundles, except under 6.7. Carrier route bundles are not permitted in full carrier route trays, except for cardsize pieces.
* * * * *
[Revise heading of 6.6 as follows:]
6.6 General Traying and Labeling
* * * * *
[Renumber 6.7 through 6.9 as new 6.8 through 6.10. Insert new 6.7 as follows:]
6.7 Traying and Labeling for Enhanced Carrier Route Letters for ZIP Codes Identified in the City State Product

Mailers preparing automationcompatible, barcoded ECR letters that weigh up to 3 ounces for ZIP Codes identified with a ``C'' or a ``D'' in the Carrier Route indicators in the USPS City State Product must make full carrier route and 5digit carrier routes trays. Except for cardsize pieces, pieces must not be bundled. Group pieces together by carrier route in 5digit and 3digit carrier routes trays. If pieces for one carrier route do not result in a full tray, mailers must combine pieces for more than one route to make full 5digit carrier routes trays, grouping pieces together by carrier route. If pieces for multiple carrier routes do not result in a full 5digit tray, mailers must combine pieces for more than one 5digit ZIP Code to make 3digit carrier routes trays, grouping pieces together by carrier route. If pieces fill more than one tray but do not fill an additional tray, mailers must place excess pieces in a tray at the next sortation level. Preparation sequence, tray size, and labeling:

a. Carrier route: required; full trays only, no overflow.

1. Line 1: city, state, and 5digit ZIP Code on mail (see 4.0 for overseas military mail).

2. Line 2: for saturation, ``STD LTR BC WSS,'' followed by route type and number; for high density, ``STD LTR BC WSH,'' followed by route type and number; for basic, ``STD LTR BC LOT,'' followed by route type and number.

b. 5digit carrier routes: required; full trays only, no overflow, no bundling.

1. Line 1: city, state, and 5digit ZIP Code on mail (see 4.0 for overseas military mail).

2. Line 2: ``STD LTR 5D CRRT BC.''

c. 3digit carrier routes: required; bundling required in less than full trays.

1. Line 1: city, state, and 3digit ZIP Code prefix shown in L002, Column A, that corresponds to 3digit ZIP Code prefix on mail.

2. Line 2: ``STD LTR 3D CRRT BC.''
* * * * *
7.0 Preparation for Automation Rate Letters
* * * * *
7.2 Mailings
[Restructure 7.2 by deleting the introductory text and item b. Make item a the new text.]
* * * * *
7.3 Marking
[Revise 7.3 by deleting the parenthetical phrase in the second sentence and deleting ``AUTOCR'' in the last sentence.]
* * * * *
7.4 General Preparation
[Revise 7.4 to delete carrier route references and add a new last sentence as follows:]

Grouping, bundling, and labeling are not generally required or permitted, except bundling is required in any mailing consisting entirely of cardsize pieces and for pieces in overflow and lessthan full trays, and grouping is required under 7.5.
* * * * *
[Delete 7.5 and 7.6 about carrier route trays and pieces. Renumber 7.7 through 7.9 as new 7.5 through 7.7.]
7.5 Tray Preparation
[Add new first, second, and third sentences about overflow trays to renumbered 7.5 as follows:]

Instead of preparing overflow trays with fewer than 150 pieces, mailers may include these pieces in the next tray level if it results in a full tray. Pieces must be grouped by destination. When using this option, it must be applied to the entire mailing. Preparation sequence, tray size, and Line 1 labeling:
[Delete items a through c about carrier routes trays. Renumber items d through
[[Page 56598]]
g as new items a through d. Revise renumbered item a to require 5 digit/scheme trays for rate as follows:]

a. 5digit/scheme (see 1.4e): optional, but required for 5digit rate (150piece minimum); overflow allowed; for Line 1, label as follows:

1. For 5digit scheme trays, use destination shown in the current USPS City State Product.

2. For 5digit trays, use city, state, and 5digit ZIP Code destination on pieces (see 4.0 for overseas military mail). * * * * *
7.6 Tray Line 2
* * * * *
[Delete items a through c about carrier routes; renumber items d through i as new items a through f.]
* * * * *
246 Enter and Deposit
* * * * *
4.0 Destination Sectional Center Facility (DSCF) Entry
* * * * *
4.2 Eligibility
[Revise 4.2 to allow pieces placed in AADC trays in lieu of in 3digit trays under 245.7.5 to be eligible for DSCF rates, as follows:]

Pieces in a mailing that meet the standards in 2.0 and 4.0 are eligible for DSCF rates when deposited at a DSCF (or USPSdesignated facility); addressed for delivery within that SCF's service area; and placed in a tray that is labeled to that DSCF, to the AADC that includes that DSCF under the preparation option in 245.7.5, or to a postal facility within its service area. See 5.2 for additional DSCF rate eligibility for letters.
* * * * *
5.0 Destination Delivery Unit (DDU) Entry
* * * * *
5.2 Eligibility
[Revise 5.2 to reorganize text and eliminate the DDU entry discount as follows:]

Lettersize mailpieces are not eligible for a destination delivery unit (DDU) discount. Mailers may deposit mail at a DDU under all of the following conditions:

a. Mailers may deposit lettersize pieces that meet the standards in 2.0 and 5.0 at a DDU when:

1. Those pieces are addressed for delivery within that facility's service area (enhanced carrier route only).

2. The pieces are placed in properly prepared and labeled carrier route trays or 5digit carrier routes trays, or on pallets under 705.8.0.

3. The pieces are eligible for and claimed at a carrier route rate.

b. Lettersize mailpieces eligible for DDU entry under 5.2a are eligible for DSCF rates under either of these conditions:

1. The pieces are prepared with simplified addresses under 602.3.2.

2. Mailers may deposit only one mailing (of fewer than 2,500 pieces) per day. The annual presort mailing fee must be paid at the office of deposit.
* * * * *
300 Discount Mail: Flats
301 Physical Standards
1.0 Physical Standards for Flats
1.1 General Definition of FlatSize Mail
* * * * *
[Add an exception for Periodicals mail in item b as follows:]

b. Not more than 15 inches long, or more than 12 inches high, or greater than \3/4\ inch thick, except for Periodicals mail under 707.25.3.
[Replace items c and d with new items c and d as follows:]

c. Rectangular.

d. Other size or weight standards may apply to mail claimed at certain rates, mail addressed to certain APOs and FPOs, and mail sent by the Department of State to U.S. government personnel abroad. * * * * *
[Insert new 1.3 through 1.6 as follows:]

1.3 Shape

Each flatsize piece must be rectangular. See 2.0 for additional standards by class of mail.

1.4 Flexibility

Flatsize pieces must meet minimum flexibility criteria. Test flexibility as follows:

a. For pieces 10 inches or longer:

1. Place the piece with the length perpendicular to the edge of a flat surface and extend the piece 5 inches off the surface.

2. Press down on the piece at a central point about an inch off the edge of the surface, exerting a steady pressure.

3. The piece is flexible if it can bend at least 2 inches without being damaged.

b. For pieces less than 10 inches long:

1. Place the piece with the length perpendicular to the edge of a flat surface and extend the piece onehalf of its length off the surface.

2. Press down on the piece at a central point about an inch off the edge of the surface, exerting a steady pressure.

3. The piece is flexible if it can bend at least 1 inch without being damaged.
[Insert new 1.5 as follows:]

1.5 Uniform Thickness

The contents of a flatsize mailpiece must remain uniformly thick so that the dimensions of the envelope, wrapper, or sleeve remain constant. If the contents are of irregular thickness or significantly smaller than the envelope, wrapper, or sleeve, those contents must be secured to prevent shifting within the wrapping during processing and surrounded with material or padding to ensure that the mailpiece remains uniformly thick.
[Insert new 1.6 as follows:]

1.6 FlatSize Pieces Not Eligible for FlatSize Rates

Mailpieces that do not meet the standards in 1.3 through 1.5 are not eligible for flatsize rates and must pay applicable rates as follows:

a. FirstClass Mailparcel rates.

b. Standard MailNot FlatMachinable or parcel rates.

c. Bound Printed Matterparcel rates.
[Revise the heading of 2.0 to delete ``Presorted.'']
2.0 Physical Standards for Nonautomation Flats
2.1 FirstClass Mail

[Revise 2.1 as follows:]

These additional standards apply to FirstClass Mail flatsize pieces:

a. FirstClass Mail cannot exceed 13 ounces. FirstClass Mail weighing more than 13 ounces is Priority Mail.

b. Flatsize pieces that do not meet the standards in 1.3 through 1.5 must be prepared as parcels and pay the applicable parcel rate. * * * * *
2.2 Standard Mail
2.2.1 Basic Physical Standards

[Revise the introductory text as follows:]

These additional standards apply to Standard Mail flatsize pieces: * * * * *

[Delete item b. Insert new item b as follows:]

b. Flatsize pieces that do not meet the standards in 1.3 through 1.5 must be prepared as parcels or Not FlatMachinable pieces and pay the parcel or Not FlatMachinable rates (see 401).
* * * * *
[Delete current Exhibit 2.2.1b.]
* * * * *
2.3 Bound Printed Matter
2.3.1 General Standards
[Delete item c in 2.3.1. Renumber items a and b as new items b and c. Revise
[[Page 56599]]

the introductory text and insert new item a as follows:]

These additional standards apply to Bound Printed Matter:

a. Flatsize pieces that do not meet the standards in 1.3 through 1.5 must be prepared as parcels and pay the applicable parcel rate. * * * * *
2.4 Media Mail
* * * * *
[Delete item c. Renumber items a and b as new items b and c. Insert new item a as follows:]

a. Flatsize pieces that do not meet the standards in 1.3 through 1.5 must be prepared as parcels.
* * * * *
2.5 Library Mail
* * * * *
[Delete item c. Renumber items a and b as new items b and c. Insert new item a as follows:]

a. Flatsize pieces that do not meet the flexibility standards in 1.3

FOR FURTHER INFORMATION CONTACT Joel Walker, 202-268-7266.