New Standards for Domestic Mailing Services, 56588-56656 [06-7751]

Agencies

• Postal Service

[Federal Register Volume 71, Number 187 (Wednesday, September 27, 2006)]
[Proposed Rules]
[Pages 56588-56656]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-7751]



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Part II





Postal Service





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39 CFR Part 111



New Standards for Domestic Mailing Services; Proposed Rule

Federal Register / Vol. 71, No. 187 / Wednesday, September 27, 2006 / 
Proposed Rules

[[Page 56588]]


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POSTAL SERVICE

39 CFR Part 111


New Standards for Domestic Mailing Services

AGENCY: Postal Service.

ACTION: Proposed rule.

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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. 
R2006-1. This proposed rule provides the mailing standards that would 
accompany the new prices if the R2006-1 price change proposal is 
adopted.

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

ADDRESSES: Mail or deliver written comments to the Manager, Mailing 
Standards, U.S. Postal Service, 475 L'Enfant Plaza SW., Room 3436, 
Washington DC 20260-3436. You may inspect and photocopy all written 
comments at USPS Headquarters Library, 475 L'Enfant Plaza SW., 11th 
Floor N, Washington DC between 9 a.m. and 4 p.m., Monday through 
Friday.

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

SUPPLEMENTARY INFORMATION: The Postal Service's request in Docket No. 
R2006-1 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 R2006-1 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 https://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 mailpiece--letter, 
flat, and parcel--has 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 First-Class Mail, our 
current price is 63 cents for a 2-ounce 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 First-Class Mail flat are folded and 
placed into a letter-size 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 
``5-digit/scheme'' and ``3-digit/scheme'' as the preparation of bundles 
and containers for 5-digit and 3-digit ZIP Code combinations in any of 
our scheme labeling lists, and single 5-digit and 3-digit ZIP Codes not 
on these lists. We also propose to require all flat-size pieces to be 
uniformly thick.

First-Class 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.

First-Class Mail Retail Letters, Flats, and Parcels

    The single-piece 1-ounce First-Class Mail letter price would 
increase $0.03, to $0.42, and the single-piece card price also would 
increase $0.03, to $0.27. The additional-ounce 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 First-Class Mail single-piece 1-ounce letter rate at any time 
in the future, without the addition of extra postage.
    Our pricing proposal would eliminate the nonmachinable surcharge. 
Instead, a letter-size mailpiece with nonmachinable characteristics 
would pay the flat-size price. Our additional handling costs are 
included in the proposed 1-ounce flat-size price, so no surcharge is 
necessary. To qualify for letter rates, the maximum weight for letter-
size pieces would be 3.5 ounces.

First-Class Mail Discount Letters and Flats

    The additional-ounce price for automation letters would decrease 
from $0.237 to $0.155. We would maintain the 150-piece minimum tray 
preparation requirement for automation First-Class Mail letters and 
cards. Sort levels would be 5-digit/scheme, 3-digit/scheme, 3-digit 
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, 
letter-size mailpieces with nonmachinable characteristics would pay 
flat-size prices. Presorted prices would be available for machinable 
letters sorted to the 3-digit origin, AADC, and mixed AADC levels.
    To help reduce the costs of handling mail in letter trays, we 
propose a no-overflow 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.

First-Class Mail Discount Parcels

    The structure for discount parcels includes new workshare prices. 
The proposed rate levels are 5-digit, 3-digit, ADC, and single piece. 
At least 10 pounds of parcels would be required for 5-digit sacks, 3-
digit sacks, and ADC sacks. Remaining pieces sorted to a mixed ADC sack 
would pay the single-piece First-Class Mail parcel price.
    Discount parcels would require a 5-digit UCC/EAN 128 or POSTNET 
barcode. Unless prepared in 5-digit 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 5-digit/scheme, 3-digit/
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 5-digit, 3-digit, 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 flat-size rate or the Not Flat-Machinable 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 no-overflow 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 Flat-Machinable Pieces

    Our proposal includes a new Not Flat-Machinable (NFM) 
classification for rigid flat-size pieces and for pieces that are 
currently automation-compatible only by meeting UFSM 1000 standards. We 
propose no bundling requirement for most NFMs and to have mailers 
prepare pieces in 5-digit/scheme, 3-digit, ADC/BMC, and mixed ADC/BMC 
containers. We propose allowing a DDU entry discount for NFMs sorted to 
5-digit 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 5-digit 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 Flat-Machinable pieces when they 
are able to combine them in 5-digit 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 5-digit rate for 
Not Flat-Machinable 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 flat-size 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 Outside-County mail closer to 
its destination.
    The pricing proposal includes a new $0.85 Outside-County Container 
Rate. The container rate would apply to pallets, sacks, or trays of 
Outside-County Periodicals mail. We also propose new drop ship prices 
based on nonadvertising pounds, in addition to increased per-piece 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 15-pound 
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 20-pound 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

    Single-piece 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 flat-size pieces increases to 
$0.16. The $0.03 per piece POSTNET barcode discount for flat-size mail 
and the $0.03 per piece barcode discount for machinable parcels would 
remain the same.

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

Media Mail and Library Mail

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

Priority Mail

    We continue to offer convenience in Priority Mail. The USPS-
produced flat-rate envelope still would pay the 1-pound price, $4.65 
under the proposal, regardless of weight or destination. USPS-produced 
flat-rate 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 15-pound 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 20-pound 
rates. The new balloon rate would apply only to pieces addressed for 
local delivery and to zones 1-4.
    Priority Mail pieces that exceed 1 cubic foot and are addressed to 
zones 5-8 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 2-pound price. To 
keep Express Mail a viable, low-cost alternative for mailers, the 
pricing proposal would add a new 1-pound price.
    The flat-rate envelope would continue to pay the half-pound 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 undeliverable-as-addressed mail.
    The Address Change Service electronic option for First-Class 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 
First-Class 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 unit-based 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 
First-Class 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.
    On-site meter services are no longer offered. The fees associated 
with on-site 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, 
3001-3011, 3201-3219, 3403-3406, 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

    Flat-size 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 one-half 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 flat-size 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 Flat-Size Pieces Not Eligible for Flat-Size Rates

    Mailpieces that do not meet the standards in 2.1 through 2.3 are 
not eligible for flat-size 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 USPS-produced Priority Mail flat-rate 
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 First-Class Mail

* * * * *

6.4 Nonmachinable Pieces

6.4.1 Nonmachinable Letters

[Revise 6.4.1 as follows:]

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

6.4.2 Nonmachinable Flats

    Flat-size pieces that do not meet the standards in 2.0 are subject 
to the applicable postage for a parcel-size 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, Flat-Rate Envelope, Express Mail items are 
charged the 0.5-pound 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 1-pound 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 1-4

[Revise 1.3 as follows:]

    Parcels addressed for delivery to Zones 1-4 (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 20-pound 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 Low-Density Parcels to Zones 5-8

    Postage for parcels addressed for delivery to Zones 5-8 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 
70-pound rate.

1.5 Flat-Rate Boxes and Envelopes

    Any amount of material may be mailed in a USPS-produced Priority 
Mail flat-rate box or flat-rate envelope. When sealing a flat-rate box 
or flat-rate 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 Flat-Rate Boxes--Rate and Eligibility

    Each USPS-produced Priority Mail flat-rate box is charged $8.80, 
regardless of the actual weight of the piece or its destination. Only 
USPS-produced flat-rate boxes are eligible for the flat-rate box rate.

1.5.2 Flat-Rate Envelopes--Rate and Eligibility

    Each USPS-produced Priority Mail flat-rate envelope is charged 
$4.65, regardless of the actual weight of the piece or its destination. 
Only USPS-produced flat-rate envelopes are eligible for the flat-rate 
envelope rate.
* * * * *

130 Retail Mail: First-Class Mail

133 Rates and Eligibility

[We provide the proposed rates and fees for all First-Class Mail 
services in ``Rates and Fees'' at the end of this notice, after all of 
the proposed mailing standards.]

1.0 First-Class Mail Rates and Fees

1.1 First-Class Mail Single-Piece Rate Application

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

    b. The letter rate applies to letter-size 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 flat-size pieces that meet the 
standards in 101.2.1 and letter-size pieces with one or more of the 
nonmachinable characteristics in 101.1.2.
    d. The parcel rate applies to parcel-size pieces under 101.3.0 and 
to flat-size 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 single-piece First-Class 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 1-pound 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 2-pound 
Priority Mail rate for zone 4 plus the fee. * * *
* * * * *

2.0 Basic Eligibility Standards for First-Class Mail

2.1 Description of Service

* * * * *

2.1.2 Rate Options

[Revise 2.1.2 to add shape-based reference as follows:]

    First-Class Mail offers shape-based single-piece 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 20-pound parcel (balloon rate).
* * * * *

1.7 Inter-BMC/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 20-pound parcel (balloon rate).

1.8 Inter-BMC/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 20-pound parcel (balloon 
rate). * * *

1.10 Local and Intra-BMC/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 20-pound parcel (balloon rate). * 
* *

1.11 Local and Intra-BMC/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 20-pound 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 First-Class Mail 
machinable letters to 3.5 ounces as follows:]

    The maximum weight for Presorted First-Class 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 First-Class Mail Nonmachinable Letters

    Letter-size 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 flat-size 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 First-Class Mail Automation Letters and Cards

[Revise 3.3 to change the weight limit as follows:]

    Maximum weight for First-Class 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: First-Class 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. 
First-Class Mail letters not marked ``AUTO'' must bear both the 
``Presorted'' or ``PRSRT'' and ``First-Class'' 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 two-letter 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: First-Class Mail

233 Rates and Eligibility

[We provide the proposed rates and fees for all First-Class 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 First-Class 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 First-Class Mail Letters

[Revise the first sentence in 1.2 to add ``letter'' as follows:]

    First-Class 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 First-Class Mail Letters

3.1 Description of Service

* * * * *

3.1.2 Rate Options

[Revise 3.1.2 as follows:]

    First-Class Mail letters offer shape-based single-piece 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 First-Class Mail

[Revise introductory text in 3.3 as follows:]

    All pieces of presorted First-Class 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 5-digit 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 CASS-certified 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 5-digit 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 USPS-approved 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 First-Class 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 flat-size rate. In addition to the standards in 
3.0, Basic Standards for First-Class Mail Letters, all pieces in a 
First-Class Mail Presorted nonmachinable letter-size 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 First-Class 
Mail Letters

[Revise heading of 5.1 as follows:]

5.1 Basic Standards for Automation First-Class 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 First-Class 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 Application--Automation 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 5-digit/scheme trays qualify for 
the 5-digit rate. Preparation to qualify for the 5-digit rate is 
optional. Pieces placed in full 3-digit/scheme trays in lieu of 5-
digit/scheme overflow trays under 235.6.6 are eligible for the 5-digit 
rates.
    b. Groups of 150 or more pieces in 3-digit/scheme trays qualify for 
the 3-digit rate. Pieces placed in full AADC trays in lieu of 3-digit/
scheme overflow trays under 235.6.6 are eligible for the 3-digit rates.
    c. Groups of fewer than 150 pieces in origin 3-digit/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 First-Class 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 1-ounce 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 pressure-sensitive 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 5-digit tray. Renumber items b 
through d as

[[Page 56595]]

new items a through c. Revise renumbered item a to reflect the 3-digit 
origin tray as follows:]

    a. Separate 3-digit origin trays required for each origin 3-digit 
ZIP Code; one less-than-full 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 second-to-last 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. First-Class Mail. A single automation rate First-Class Mail 
mailing may include pieces prepared at 5-digit, 3-digit, 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 single-piece rate 
marking (``SNGLP'' or ``Single-Piece'') 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 card-size pieces and for pieces in overflow and less-than-
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 3-digit 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. 5-digit/scheme (see 1.4e): optional, but required for 5-digit 
rate (150-piece minimum); overflow allowed.
    1. For 5-digit scheme trays, use destination shown in the current 
USPS City State Product.
    2. For 5-digit trays, use city, state, and 5-digit 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 second-to-last 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. Letter-size 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 high-density or saturation rates.
    b. Pieces mailed at automation letter rates or Enhanced Carrier 
Route high-density 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 5-digit 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 CASS-certified 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 5-digit 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 USPS-approved 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 5-digit nonentry rates for Not 
Flat-Machinable 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 letter-size 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 letter-size 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 letter-size 
pieces (including card-size pieces) weighing 3.3 ounces or less that 
have one or more of the nonmachinable characteristics in 201.2.1. 
Nonmachinable letter-size pieces weighing more than 3.3 ounces are 
subject to Not Flat-Machinable rates (see 443).

5.5.1 5-Digit Rate

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

5.5.2 3-Digit Rate

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

5.5.3 ADC Rate

    The ADC rate applies to letter-size 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 letter-size 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 5-digit/scheme trays qualify for 
the 5-digit rate. Preparation to qualify for that rate is optional. 
Pieces placed in full 3-digit/scheme trays in lieu of 5-digit/scheme 
overflow trays are eligible for 5-digit rates (see 245.7.5).
    b. Groups of 150 or more pieces in 3-digit/scheme trays qualify for 
the 3-digit rate. Pieces placed in full AADC trays in lieu of 3-digit/
scheme overflow trays are eligible for 3-digit rates (see 245.7.5).
    c. Groups of fewer than 150 pieces in origin/entry 3-digit/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 5-digit/scheme sort, mailers must 
prepare all possible 5-digit scheme trays, then prepare all possible 5-
digit trays.

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

    f. * * * When standards require 3-digit/scheme sort, mailers must 
prepare all possible 3-digit 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); 150-piece 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. 5-digit (required); 150-piece minimum; labeling: * * *
* * * * *
    b. 3-digit (required); 150-piece minimum; labeling: * * *
* * * * *
    c. ADC (required); 150-piece 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 card-size 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 automation-compatible, 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 5-digit carrier routes trays. Except for 
card-size pieces, pieces must not be bundled. Group pieces together by 
carrier route in 5-digit and 3-digit 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 5-digit carrier 
routes trays, grouping pieces together by carrier route. If pieces for 
multiple carrier routes do not result in a full 5-digit tray, mailers 
must combine pieces for more than one 5-digit ZIP Code to make 3-digit 
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 5-digit 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. 5-digit carrier routes: required; full trays only, no overflow, 
no bundling.
    1. Line 1: city, state, and 5-digit ZIP Code on mail (see 4.0 for 
overseas military mail).
    2. Line 2: ``STD LTR 5-D CR-RT BC.''
    c. 3-digit carrier routes: required; bundling required in less than 
full trays.
    1. Line 1: city, state, and 3-digit ZIP Code prefix shown in L002, 
Column A, that corresponds to 3-digit ZIP Code prefix on mail.
    2. Line 2: ``STD LTR 3-D CR-RT 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 card-size pieces and for pieces in overflow and less-than-
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. 5-digit/scheme (see 1.4e): optional, but required for 5-digit 
rate (150-piece minimum); overflow allowed; for Line 1, label as 
follows:
    1. For 5-digit scheme trays, use destination shown in the current 
USPS City State Product.
    2. For 5-digit trays, use city, state, and 5-digit 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 3-digit 
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 USPS-designated 
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:]

    Letter-size 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 letter-size 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 5-digit carrier routes trays, or on pallets under 
705.8.0.
    3. The pieces are eligible for and claimed at a carrier route rate.
    b. Letter-size 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 Flat-Size 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 flat-size piece must be rectangular. See 2.0 for additional 
standards by class of mail.

1.4 Flexibility

    Flat-size 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 one-half 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 damage