New Origin Entry Separation & Containerization Standards, 13704-13767 [2011-5273]

Agencies

• Postal Service

[Federal Register Volume 76, Number 49 (Monday, March 14, 2011)]
[Proposed Rules]
[Pages 13704-13767]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-5273]



[[Page 13703]]

Vol. 76

Monday,

No. 49

March 14, 2011

Part II





Postal Service





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39 CFR Part 111



New Origin Entry Separation & Containerization Standards; Proposed Rule

Federal Register / Vol. 76 , No. 49 / Monday, March 14, 2011 / 
Proposed Rules

[[Page 13704]]


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POSTAL SERVICE

39 CFR Part 111


New Origin Entry Separation & Containerization Standards

AGENCY: Postal Service TM.

ACTION: Proposed rule.

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SUMMARY: The Postal Service is proposing to revise Mailing Standards of 
the United States Postal Service, Domestic Mail Manual (DMM[reg]) to 
change the preparation requirements for mail entered at origin, either 
as an entire mailing or as the residual volume for plant verified drop 
shipment (PVDS) mailings.

DATES: We must receive your comments on or before April 13, 2011.

ADDRESSES: Mail or deliver written comments to the Manager, Mailing 
Standards, U.S. Postal Service, 475 L'Enfant Plaza SW., Room 4446, 
Washington DC 20260-5015. You may inspect and photocopy all written 
comments at USPS[reg] Headquarters Library, 475 L'Enfant Plaza SW., 
11th Floor N, Washington, DC, between 9 a.m. and 4 p.m., Monday through 
Friday. E-mail comments concerning the proposed rule, containing the 
name and address of the commenter, may be sent to: 
MailingStandards@usps.gov, with a subject line of ``New Origin Entry 
Standards.'' Faxed comments are not accepted.

FOR FURTHER INFORMATION CONTACT: Karen McManus at 202-268-4005 or Kevin 
Gunther at 202-268-7208.

SUPPLEMENTARY INFORMATION: On December 20, 2006, the Postal 
Accountability Enhancement Act was signed into law. A provision of the 
law required the Postal Service to establish modern service standards, 
measure service performance against these standards and publish the 
results. In recognition of this goal, the Postal Service consulted with 
the Postal Regulatory Commission (PRC) and worked closely with mailer 
groups and other mailing industry representatives to develop standards 
and measurement processes. During these discussions, various strategies 
and suggestions were offered to help improve service provided to 
commercial mailings entered at origin. Modern service standards 
resulting from these consultations were announced 12 months after the 
bill was signed into law and are expected to improve efficiency and 
service and to coordinate the preparation and entry of mail with 
changes in the USPS distribution network. For more information see 
Federal Register final rule, Modern Service Standards for Market 
Dominant Products, published December 19, 2007 (72 FR 72216-72231).
    In May 2009, the Postal Service began transforming its distribution 
network by converting Bulk Mail Centers into Network Distribution 
Centers. The realignment permitted the consolidation of transportation 
and created new work flows to facilitate movement of mail through the 
network. The redesign of the network necessitates some adjustments to 
internal USPS work methods as well as modifications to the preparation 
of origin-entered commercial mail to align with the new transportation 
flows and work processes. The proper preparation of origin-entered 
mailings will allow the Postal Service to eliminate unnecessary 
processing at the local plant and will facilitate the transportation of 
these mailings within its network. Working with various segments of the 
mailing industry, the Postal Service has developed and is proposing new 
preparation standards that align with the revised network and a 
corresponding communications program to relate these changes to the 
mailing industry. The following proposal is the result of these 
efforts.

Separation of Residual Mail Entered at Origin

    This proposed rule applies to origin-entered commercial mail only, 
and may apply to entire mailings or to the residual portion of a plant 
verified PVDS mailing not being dropshipped to a destination. Existing 
presort requirements for mailings and the number of pieces required per 
presort level will remain the same. Except as defined below, all 
handling unit separations currently required will also remain 
unchanged. For the purpose of this proposal, a handling unit is defined 
as the mail transport equipment used to carry an aggregate of 
mailpieces sorted to a specific price level for a presort destination, 
and would include letter trays, flat trays (tubs), sacks, bundles and 
packages. A container is defined as the equipment used to transport 
handling units, and would include pallets, all purpose containers (APC) 
and hampers. In certain circumstances involving low volume mailings, or 
mail that can not be palletized, containers may also include flat 
trays.
    Under this proposal, after all required handling units and 
containers have been prepared, mailers must separate the remaining mail 
(or residue from a PVDS mailing) as follows:
    Standard Mail and Package Services:
    Origin Network Distribution Center: Required for letters, flats and 
parcels. For bundles of flats or parcels, do not sack prior to 
containerizing the mail. Separate all handling units destinating in the 
service area of the origin Network Distribution Center (NDC) from the 
rest of the mailing. Use column A of Labeling List L601 (L604 for 
Standard Mail letters and flats) to determine the ZIP Codes in the 
service area of the NDC. Handling units must be placed in containers. 
Prepare container (pallet) placards using the column B ``Label to'' 
information in L601 (column C ``Label to'' information in L604 for 
Standard Mail letters and flats). There is no minimum load threshold 
for this separation.
    Tier Two Network: Required for letters, flats and parcels. For 
bundles of flats or parcels, do not sack prior to containerizing the 
mail. Place any remaining handling units on a second container, or when 
applicable, separate as follows. Prepare container (pallet) placards 
using the column C ``Label to'' information in L604 (L603 for parcels). 
When the origin NDC is Chicago, Cincinnati, St. Louis or San Francisco, 
use Labeling List L604 (L603 for parcels) to separate the remaining 
mail into two directionally-based containers which will route residue 
mail either east or west (Chicago, Cincinnati or Saint Louis) or north 
or south (San Francisco) as needed from origin. Prepare container 
placards using the column C ``Label to'' information in L604 or L603. 
There is no minimum load threshold for this separation.

Periodicals

    Local Surface Transport: Required for letters, flats and parcels. 
For bundles of flats or parcels, do not sack prior to palletizing the 
mail. Separate all handling units destinating in the surface 
transportation network area of the origin entry site from the rest of 
the mailing. Use column B of Labeling List L201 to determine the ZIP 
Codes in the surface transportation area of the origin site. Handling 
units must be placed in containers. Prepare container (pallet) placards 
using the column C ``Label to'' information in L201. There is no 
minimum load threshold for this separation.
    Extended Surface Network: Required for letters, flats and parcels. 
For bundles of flats or parcels, do not sack prior to containerizing 
the mail. Place any remaining handling units on a second container. Use 
column A of Labeling List L009 to determine the location for 
Periodicals piece processing based on the origin entry point. Prepare 
container (pallet) placards using the column B

[[Page 13705]]

``Label to'' information in L009. There is no minimum load threshold 
for this separation.

Palletization Required When Possible

    Current standards for containerization of nonpalletized mailings 
are determined by mailpiece shape. Letters are placed in trays, flats 
are bundled and placed in sacks or flat trays (tubs) or placed loose in 
flat trays and parcels are bedloaded or placed in sacks.
    Under these proposed standards, trays, bundles or parcels that 
cannot be prepared on a direct pallet must be placed on the appropriate 
pallet for the Origin NDC, Local Surface Transport, Tier Two Network or 
Extended Surface Network, when the volume reaches one hundred and fifty 
(150) pounds or 36 linear feet of trays for each pallet. Mailers may 
optionally make pallets with less than 150 pounds, or 36 linear feet of 
trays, for these separations. Mailers choosing not to make pallets 
weighing less than 150 pounds, or who are unable to palletize, must 
prepare bundles in flat trays or approved alternate containers in 
accordance with applicable preparation standards.
    The Postal Service does not currently provide a container price 
applicable to Periodicals bundles placed directly on mixed ADC pallets 
or equivalent containers. The Postal Service is currently considering 
this matter and expects to introduce a price for mixed ADC containers 
as a separate initiative prior to the implementation of the final 
standards.
    These new proposed requirements will apply to all origin or 
destination entered mailings. For mailers who are unable to palletize 
flats or parcels, the Postal Service proposes to require the use of 
flat trays (tubs) or approved alternate containers when performing the 
separations described in this proposed rule or under current DMM 
standards. The use of flat trays (tubs) or alternate containers will 
afford mailers more flexibility in how mail is presented at origin or 
destination entry points. Alternatives to the use of flat trays may be 
approved by the local plant manager or designee.
    Mailers of flats, or parcels presorted to a 3-digit ZIP Code or 
less finely, who do not palletize must use flat trays (tubs) in lieu of 
sacking. Flat trays must also be used for all presort levels (except 5-
digit, 5-digit scheme and carrier route separations of parcels) being 
deposited at origin or destination entry points. Lids will not be 
required on origin entry 3-digit and SCF, origin NDC, tier 2 network, 
local surface transport and extended surface network flat trays only. 
These proposed preparation standards will provide for a reduction of 
sack handling and the expedited processing of individual pieces, and 
will result in increased efficiencies and improved service.

Optional Requirement--Origin SCF Separation

    For the purpose of this proposed rule, separation means the 
creation of an additional container of residual mailpieces, after all 
other required separations have been made, for the origin sectional 
center facility (SCF) or for each of the 3-digit ZIP Codes of the 
origin SCF. Current standards require mailers of commercial First-Class 
Mail[supreg] and Periodicals letters and flats to separately prepare 
trays or bundles for mailpieces destinating within the SCF servicing 
the facility where the mail is verified (origin). Origin SCF (or origin 
3-digit) separations are optional for other mail classes and shapes. 
The Postal Service proposes to extend the option for mailers to make 
such origin SCF separations for all classes and shapes of mailpieces.
    In this proposal segregation means physical removal of the 
separated containers from the remainder of the mailing and separately 
placing them into transport units, placing them in a conspicuous 
location on top of the origin SCF pallet, or otherwise presenting them 
separately to USPS acceptance personnel. In order to improve the 
identification and processing of these mailpieces, the Postal Service 
is proposing to require mailers of all commercial mail (letters, flats 
and parcels) to segregate origin SCF separations (and finer sortation 
levels) containers, bundles or parcels from the remainder of the 
mailing. This requirement will apply to all required separations and to 
all optional separations (whenever the mailer chooses to make that 
separation). This new requirement should improve service by preventing 
mailpieces for the processing plant's service area from being 
transported to another processing facility prior to delivery.

Other Proposed Mail Preparation Changes

    There are no current mail preparation standards pertaining to 
barcoded tray labels for Library Mail and Media Mail. This proposed 
rule will establish such standards. We have eliminated standards for 
the use of 1-inch sack labels for all types of mail. These labels are 
no longer supported by USPS Engineering, their use in the field should 
be limited, and equipment compatible with the use of 2-inch labels is 
widely available. We are also proposing to revise language in DMM 
705.10.1 to align with other standards that specify that nonmachinable 
flat-size Periodicals prepared under 707.26 cannot be merged with 
machinable flats. We also are eliminating the option for mailers to 
place mixed ADC or mixed AADC bundles, sacks or trays on auxiliary 
service facility (ASF) or NDC pallets. Changes in processing at these 
facilities no longer make this option practical.
    Although the Postal Service is exempt from the notice and comment 
requirements of the Administrative Procedure Act (5 U.S.C. of 553(b), 
(c)) regarding proposed rulemaking by operation of 39 U.S.C. 410(a), we 
invite public 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 111.1.

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); 13 U.S.C. 301-307; 18 U.S.C. 1692-
1737; 39 U.S.C. 101, 401, 403, 404, 414, 416, 3001-3011, 3201-3219, 
3403-3406, 3621, 3622, 3626, 3632, 3633, and 5001.

    2. Revise the following sections of Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM), as follows:
* * * * *

200 Commercial Mail Letters and Cards

* * * * *

230 First-Class Mail

* * * * *

235 Mail Preparation

* * * * *

3.0 Letter Trays

* * * * *

3.3 Letter Tray Preparation

    Letter trays are prepared as follows:
* * * * *
    [Revise the last sentence of 3.3c as follows:]
    c. * * * Except for 3-digit/scheme trays destined within the 
origin/entry SCF, mailers may optionally move any pieces remaining to 
the next higher

[[Page 13706]]

presort level at which there is a minimum quantity (e.g., 150 pieces).
* * * * *
    [Delete 3.6, Origin/Entry 3--Digit/Scheme Trays, in its entirety.]
* * * * *

5.0 Preparing Nonautomation Letters

* * * * *

5.2 Machinable Preparation

* * * * *

5.2.2 Traying and Labeling

    [Revise the introductory paragraph of 5.2.2 as follows:]
    Mailers must segregate trays destined within the origin/entry SCF 
under 236.1.5. Preparation sequence, tray size, and labeling:
    [Revise 5.2.2a as follows:]
    a. Origin/entry 3-digit/scheme (required); separate trays required 
for each 3-digit/scheme ZIP Code within the origin/entry SCF; no 
minimum piece requirement; one less-than-full tray permitted for each 
3-digit/scheme; labeling:
    1. Line 1: L002, Column B.
    2. Line 2: ``FCM LTR 3D MACH.''
* * * * *

5.3 Nonmachinable Preparation

* * * * *

5.3.2 Traying and Labeling

    [Revise the introductory paragraph of 5.3.2 as follows:]
    Mailers must segregate trays destined within the origin/entry SCF 
under 236.1.5. Preparation sequence, tray size, and labeling:
* * * * *
    [Resequence current items 5.3.2b through d as the new c through e, 
and add a new item b as follows:]
    b. Origin/entry 3-digit; required; no minimum piece requirement; 
one less-than-full tray for each origin/entry 3-digit; labeling:
    1. Line 1: L002, Column A.
    2. Line 2: ``FCM LTR 3D MANUAL.''
    [Revise the opening sentence only of resequenced 5.3.2c as 
follows:]
    c. 3-digit (required); full trays (no overflow); labeling:
* * * * *

6.0 Preparing Automation Letters

* * * * *

6.6 Tray Preparation

    [Revise the introductory paragraph of 6.6 as follows:]
    Except for origin/entry 3-digit/scheme trays, mailers may place 
fewer than 150 overflow pieces in the next tray level when a tray of 
150 or more pieces can be made. Mailers must segregate trays destined 
within the origin/entry SCF under 236.1.5. Mailers must note these 
trays on standardized documentation (see 708.1.2). Pieces placed in the 
next tray level must be grouped by destination and placed in the front 
or back of that tray. Mailers may use this option selectively for 3-
digit and AADC ZIP Codes. Preparation sequence and Line 1 labeling:
    [Revise item 6.6a as follows:]
    a. 5-digit/scheme (see 1.4e): optional, but required for 5-digit 
price (150-piece minimum); overflow allowed; when making these 
separations.
    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).
    [Resequence current items 6.6b through d as the new c through e, 
and add a new item b as follows:]
    b. Origin/entry 3-digit; required; separate trays required for each 
origin 3-digit/scheme, no minimum; one less-than-full tray allowed for 
each 3-digit/scheme; for Line 1, use L002, Column B.
    [Revise resequenced 6.6c as follows:]
    c. 3-digit/scheme: Optional, but required for 3-digit price (150-
piece minimum); overflow allowed; for Line 1, use L002, Column B.
* * * * *

6.8 Presentation

    [Revise 6.8 as follows:]
    Mailers must present all mixed AADC trays together when presenting 
mailings for USPS verification. Mixed AADC trays must either be 
adjacent to one another, and must be placed as the top layer(s) on any 
container; or may be placed immediately below origin/entry 5-digit or 
3-digit/scheme trays, when segregated under 236.1.5. Containerization 
instructions for First-Class Mail letters and cards may be established 
by local USPS managers.

236 Enter and Deposit

1.0 Deposit

* * * * *
    [Add a new 1.5 as follows:]

1.5 Segregation of Trays for the Origin/Entry SCF

    Mailers must make all required, and may make any optional, origin/
entry 3-digit (scheme) and origin/entry 5-digit (scheme) separations 
destinating in the service area of the SCF serving the Post Office 
where the mail is verified, or the service area of the SCF/plant where 
mail is entered. For all such separations mailpieces must be trayed in 
accordance with 235.0 and segregated from the remainder of the mailing 
by one of these methods: Separately containerize the trays; place the 
trays in a conspicuous location on top of origin SCF pallet or other 
container; or present them separately to acceptance personnel.
* * * * *

240 Standard Mail

* * * * *

245 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *
    [Add a new 1.5 to reference required palletization as follows:]

1.5 Required Pallet Preparation

    Mailers must prepare pallets under 705.8 when they have at least 72 
linear feet of trays to a presort destination. If a mailer is unable to 
palletize, mail must be separated and placed in approved alternate 
containers.
* * * * *

3.0 Letter Trays

* * * * *

3.3 Letter Tray Preparation

    Letter trays are prepared as follows:
* * * * *
    [Revise the third sentence of 3.3c as follows:]
    c. * * * Except for 3-digit/scheme trays destined within the 
origin/entry SCF, mailers may optionally move any pieces remaining to 
the next higher presort level at which there is a minimum quantity 
(e.g., 150 pieces).
* * * * *
    [Delete 3.6, Origin/Entry 3-Digit/Scheme Tray, in its entirety.]
* * * * *

5.0 Preparing Nonautomation Letters

* * * * *

5.3 Machinable Preparation

* * * * *

5.3.2 Traying and Labeling

    [Revise the introductory paragraph of 5.3.2 by adding a new second 
sentence as follows:]
    * * * Mailers must segregate trays destined within the origin/entry 
SCF under 246.1.3. * * *
* * * * *

5.4 Nonmachinable Preparation

* * * * *

5.4.2 Traying and Labeling

    [Revise the introductory sentence of 5.4.2 as follows:]

[[Page 13707]]

    Overflow trays are not allowed. Mailers must segregate trays 
destined within the origin/entry SCF under 246.1.3. Preparation 
sequence, tray size, and labeling:
* * * * *
    [Resequence current items 5.4.2b through d as the new c through e 
and add new item b as follows:]
    b. Origin/entry 3-digit (optional); separate trays required for 
each origin 3-digit ZIP Code; no minimum piece requirement; one less-
than-full tray for each origin/entry 3-digit; when making these 
separations; labeling:
    1. Line 1: L002, Column A.
    2. Line 2: ``STD LTR 3D MANUAL.''
    [Revise resequenced 5.4.2c as follows:]
    c. 3-digit (required); 150-piece minimum; labeling:
    1. Line 1: L002, Column A.
    2. Line 2: ``STD LTR 3D MANUAL.''
* * * * *

6.0 Preparing Enhanced Carrier Route Letters

* * * * *

6.6 General Traying and Labeling

    [Revise the introductory paragraph of 6.6 as follows:]
    For all mailings containing any ECR letters over 3 ounces and all 
mailings of nonautomation ECR letters, prepare trays as explained 
below. Mailers must segregate trays destined within the origin/entry 
SCF under 246.1.3. Prepare letters with simplified addresses in 
separate trays from pieces with other forms of addressing. For ECR 
barcoded automation-compatible letters that weigh up to 3 ounces, 
prepare trays under 6.7. Preparation sequence, tray size, and labeling:
    [Revise the opening paragraphs only of items 6.6a through c as 
follows:]
    a. Carrier route: Required; full trays only, no overflow.
* * * * *
    b. 5-digit carrier routes: Required if full tray, optional with 
minimum one 10-piece bundle.
* * * * *
    c. 3-digit carrier routes: Optional with minimum one 10-piece 
bundle for each of two or more 5-digit areas.
* * * * *

6.7 Traying and Labeling for Automation-Compatible ECR Letters

    [Add a new seventh sentence to the introductory paragraph of 6.7 as 
follows:]
    * * * Mailers must segregate trays destined within the origin/entry 
SCF under 246.1.3. * * *
* * * * *

7.0 Preparing Automation Letters

* * * * *

7.5 Tray Preparation

    [Revise the introductory text of 7.5 as follows:]
    Instead of preparing overflow trays with fewer than 150 pieces, 
mailers may include these pieces in an existing qualified tray of at 
least 150 or more pieces at the next tray level. (For example, 30 
overflow 5-digit pieces for 20260 may be added to a qualified 3-digit 
tray (prefix 202) and the overflow 5-digit pieces will qualify for the 
5-digit price.) Pieces that are placed in the next tray level must be 
grouped by destination and placed in the front or back of that tray. 
This option does not apply to origin/entry 3-digit/scheme trays. When 
making 5-digit/scheme and origin 3-digit/scheme trays, mailers must 
segregate trays destined within the origin/entry SCF as described in 
246.1.3 Preparation sequence, tray size, and Line 1 labeling:
* * * * *
    [Resequence current items 7.5b through d as the new c through e, 
and add new item b as follows:]
    b. Origin 3-digit/scheme; optional; separate trays required for 
each origin 3-digit/scheme; no minimum piece requirement; one less-
than-full tray for each origin/entry 3-digit; for Line 1, use L002, 
Column B.
    [Revise resequenced 7.5c as follows:]
    c. 3-digit/scheme; optional, but required for 3-digit price (150-
piece minimum); overflow allowed; for Line 1, use L002, Column B.
* * * * *

7.7 Presentation

    [Revise 7.7 as follows:]
    Mailers must present all mixed AADC trays together for USPS 
verification, placed as the top layer(s) on any given container, or 
immediately below origin/entry carrier route, 5-digit/scheme or 3-
digit/scheme trays, when segregated under 246.1.3.
* * * * *

246 Enter and Deposit

1.0 Presenting a Mailing

* * * * *
    [Add a new 1.3 as follows:]

1.3 Segregation of Origin SCF Trays

    Mailers must make all required, and may make any optional, origin/
entry carrier routes, 5-digit (scheme) and 3-digit (scheme) separations 
destinating in the service area of the SCF serving the Post Office 
where the mail is verified, or the service area of the SCF/plant where 
mail is entered. For all origin/entry separations made, mailpieces must 
be trayed under 245.3.0 and segregated from the remainder of the 
mailing by one of these methods: separately containerize the trays; 
place the trays in a conspicuous location on top of origin SCF pallet 
or other container; or present them separately to acceptance personnel.
* * * * *

300 Commercial Flats

* * * * *

330 First-Class Mail

* * * * *

335 Mail Preparation

* * * * *

3.0 Flat Trays

* * * * *
    [Delete 3.6, Origin/Entry 3-Digit/Scheme Trays, in its entirety.]
* * * * *

5.0 Preparation of Nonautomation Flats

* * * * *

5.5 Traying and Labeling

    [Revise the introductory paragraph of 5.5 as follows:]
    Mailers must segregate trays destined within the origin/entry SCF 
under 336.1.5. Preparation sequence and labeling:
* * * * *
    [Resequence current items 5.5 b through d as the new c through e, 
and add a new item b as follows:
    b. Origin/entry 3-digit (required); separate trays required for 
each origin 3-digit ZIP Code; no minimum piece requirement; one less-
than-full tray for each origin/entry 3-digit; mailers must segregate 
trays destined within the origin/entry SCF under 336.1.5; labeling:
    1. Line 1: L002, Column A.
    2. Line 2: ``FCM FLTS 3D NON BC.''
    [Revise the opening paragraph of resequenced 5.5c as follows:]
    c. 3-digit (required); full trays (no overflow); labeling:
* * * * *

6.0 Preparation of Automation Flats

* * * * *

6.5 First-Class Mail Required Bundle-Based Preparation

* * * * *

6.5.2 Traying and Labeling

    [Revise the introductory paragraph of 6.5.2 as follows:]
    Mailers must segregate trays destined within the origin/entry SCF 
under

[[Page 13708]]

336.1.5. Preparation sequence and labeling:
* * * * *

6.6 First-Class Mail Optional Tray-Based Preparation

    [Revise the opening paragraph of 6.6 as follows:]
    Mailers must segregate trays destined within the origin/entry SCF 
under 336.1.5. Preparation, sequence, and Line 1 labeling:
* * * * *

336 Enter and Deposit

1.0 Deposit

* * * * *
    [Revise 1.0 by adding a new 1.5 as follows:]

1.5 Segregation of Origin SCF Trays

    Mailers must make all required, and may make any optional, origin/
entry 3-digit (scheme) and origin/entry 5-digit (scheme) separations 
destinating in the service area of the SCF serving the Post Office 
where the mail is verified, or the service area of the SCF/plant where 
mail is entered. For all such separations, mailpieces must be trayed or 
placed in alternate containers under 335.0 and segregated from the 
remainder of the mailing by one of these methods: separately 
containerize the trays; place the trays in a conspicuous location on 
top of origin SCF pallet or other container; or present them separately 
to acceptance personnel.
* * * * *

340 Standard Mail

343 Prices and Eligibility

* * * * *

5.0 Additional Eligibility Standards for Nonautomation Standard Mail 
Flats

* * * * *

5.3 5-Digit Prices for Flats

    The 5-digit price applies to flat-size pieces:
    [Revise 5.3a as follows:]
    a. In a 5-digit/scheme bundle of 10 or more pieces, or 15 or more 
pieces, as applicable; placed in a 5-digit/scheme flat tray or approved 
alternate container containing at least 125 pieces or 15 pounds of 
pieces. Eligibility is also met by placing at least 125 pieces or 15 
pounds per destination in more than one flat tray when the flat trays 
are full, according to 345.1.4e.
* * * * *
    [Revise 5.3c as follows:]
    c. In a 5-digit bundle of 10 or more pieces, or 15 or more pieces, 
as applicable; placed in a merged 5-digit/scheme or 5-digit flat tray 
or approved alternate container under 705.10.0.

5.4 3-Digit Prices for Flats

    The 3-digit price applies to flat-size pieces:
    [Revise 5.4a as follows:]
    a. In a 5-digit/scheme bundle of 10 or more pieces, or 15 or more 
pieces, as applicable, or in a 3-digit/scheme bundle of 10 or more 
pieces; placed in a 3-digit flat tray or approved alternate container 
of at least 125 pieces or 15 pounds of pieces. Eligibility is also met 
by placing at least 125 pieces or 15 pounds per destination in more 
than one flat tray when the flat trays are full, according to 345.1.4e.
* * * * *

5.5 ADC Prices for Flats

    ADC prices apply to flat-size pieces:
    [Revise items 5.5a and b as follows:]
    a. In a 5-digit/scheme, 3-digit/scheme, or ADC bundle of 10 or more 
pieces placed in an ADC flat tray or approved alternate container of at 
least 125 pieces or 15 pounds of pieces. Eligibility is also met by 
placing at least 125 pieces or 15 pounds per destination in more than 
one flat tray when the flat trays are full, according to 345.1.4e.
    b. In a 3-digit/scheme origin/entry flat tray or approved alternate 
container.
* * * * *

5.6 Mixed ADC Prices for Flats

    [Revise 5.6 as follows:]
    Mixed ADC prices apply to flat-size pieces in bundles that do not 
qualify for 5-digit, 3-digit, or ADC prices.
* * * * *

6.0 Additional Eligibility Standards for Enhanced Carrier Route 
Standard Mail Flats

* * * * *

6.3 Basic Price Enhanced Carrier Route Standards

* * * * *

6.3.2 Basic Price Eligibility

    Basic prices apply to each piece in a carrier route bundle of 10 or 
more pieces that is:
* * * * *
    [Revise items 6.3.2b through d as follows:]
    b. Placed in a carrier route flat tray or approved alternate 
container containing at least 125 pieces or 15 pounds of pieces. 
Eligibility is also met by placing at least 125 pieces or 15 pounds per 
destination in more than one flat tray when the flat trays are full, 
according to 345.1.4e.
    c. Placed in a merged 5-digit scheme, 5-digit scheme carrier 
routes, merged 5-digit, or 5-digit carrier routes flat trays or 
approved alternate containers.
    d. Entered at a destination delivery unit as untrayed or 
uncontainerized bundles, under 345.2.0 and 346.5.0.
* * * * *

6.4 High Density Enhanced Carrier Route Standards

* * * * *

6.4.2 High Density Prices for Flats

    High density prices apply to each piece in a carrier route bundle 
of 10 or more pieces that is:
* * * * *
    [Revise items 6.4.2b and c as follows:]
    b. Placed in a carrier route flat tray or approved alternate 
container containing at least 125 pieces or 15 pounds of pieces. 
Eligibility is also met by placing at least 125 pieces or 15 pounds per 
destination in more than one flat tray when the flat trays are full, 
according to 345.1.4e.
    c. Placed in a merged 5-digit scheme, 5-digit scheme carrier 
routes, merged 5-digit, or 5-digit carrier routes flat tray or approved 
alternate container.
* * * * *

6.5 Saturation Enhanced Carrier Route Standards

* * * * *

6.5.2 Saturation Prices for Flats

    Saturation prices apply to each piece in a carrier route bundle of 
10 or more pieces that is:
* * * * *
    [Revise items 6.5.2b and c as follows:]
    b. Placed in a carrier route flat tray or approved alternate 
container containing at least 125 pieces or 15 pounds of pieces. 
Eligibility is also met by placing at least 125 pieces or 15 pounds per 
destination in more than one flat tray when the flat trays are full, 
according to 345.1.4e.
    c. Placed in a merged 5-digit scheme, 5-digit scheme carrier 
routes, merged 5-digit, or 5-digit carrier routes flat tray or approved 
alternate container.
* * * * *

345 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.3 Terms for Presort Levels

    Terms used for presort levels are defined as follows:
* * * * *
    [Revise items 1.3c through 1.3h as follows:]
    c. 5-digit scheme (bundles, flat trays or approved alternate 
containers) for

[[Page 13709]]

flats meeting the automation standards in 301.3.0: The delivery ZIP 
Code on all pieces is one of the 5-digit ZIP Code areas in as a single 
scheme, as shown in L007.
    d. 5-digit scheme carrier routes (pallets, flat trays or approved 
alternate containers) for Standard Mail flats: The delivery ZIP Code on 
all pieces in carrier route bundles is one of the 5-digit ZIP Codes 
processed by the USPS as a single scheme, as shown in L001.
    e. Merged 5-digit trays: The carrier route bundles and 5-digit 
bundles, in a flat tray or approved alternate container, are all for a 
5-digit ZIP Code that has an ``A'' or ``C'' indicator in the Carrier 
Route Indicators field in the City State Product.
    f. Merged 5-digit pallet: Contains carrier route bundles and 
noncarrier route 5-digit bundles.
    g. Merged 5-digit scheme trays: The 5-digit ZIP Codes on pieces in 
carrier route bundles and 5-digit bundles in a flat tray or approved 
alternate container are all for 5-digit ZIP Codes that are part of a 
single scheme as shown in L001, and the 5-digit bundles also are for 5-
digit ZIP Codes that have an ``A'' or ``C'' indicator in the Carrier 
Route Indicators field in the City State Product.
    h. Merged 5-digit scheme pallet: Contains carrier route bundles and 
noncarrier route bundles for those 5-digit ZIP Codes that are part of a 
single scheme under L001.
* * * * *
    [Revise the second sentence of 1.3k as follows:]
    k. * * * These separations are optional, but mailers making these 
separations must segregate trays for each 3-digit area under 346.1.3.
* * * * *
    [Revise 1.3m as follows:]
    m. Origin/entry SCF: The separation includes bundles for one or 
more 3-digit areas served by the same sectional center facility (SCF) 
(see L005) in whose service area the mail is verified/entered. 
Mailpieces may be separated for each such 3-digit area regardless of 
the volume of mail. Mailers making these separations must segregate 
trays, approved alternate containers or pallets from the remainder of 
the mailing under 346.1.3.
* * * * *
    [Revise 1.3q as follows:]
    q. Residual pieces/bundles/trays/alternate containers: Contain mail 
remaining after completion of a presort sequence. Residual mail lacks 
the volume for preparation to a particular destination.

1.4 Preparation Definitions and Instructions

    For purposes of preparing mail:
* * * * *
    [Delete current items 1.4e through t in their entirety and replace 
with new e through u as follows:]
    e. A full flat tray is one that is physically full. Although a 
specific minimum volume of at least one stack of mail lying flat on the 
bottom of the tray and filling the tray to the bottom of the handholds 
is required for a tray prepared to a presort destination, trays must be 
filled with additional available pieces (up to the reasonable capacity 
of the tray) when standards require full trays.
    f. A less-than-full flat tray is one that contains flats for the 
same destination regardless of quantity or whether a full tray was also 
prepared for that destination.
    g. An approved alternate container is a container authorized by the 
USPS instead of a flat tray (tub) or pallet, for the handling and 
transport of bundled flat-size mailpieces or parcels. Alternate 
containers could include sacks, other USPS mail transport equipment, or 
mailer-supplied containers.
    h. A 5-digit scheme sort for flats meeting the standards in 301.3.0 
is defined in 1.3c. When standards require 5-digit/scheme sort, mailers 
must prepare all possible 5-digit scheme bundles, flat trays or 
approved alternate containers, then prepare all possible 5-digit 
bundles, flat trays or alternate containers. Label bundles using an 
optional endorsement line (OEL) under 708.7.0 or with a red ``5 SCH'' 
bundle label. Place bundles in appropriate containers using the OEL 
``label to'' 5-digit ZIP Code or using L007 column B.
    i. A 5-digit scheme carrier routes sort is defined in 1.3d. Flat 
trays, alternate containers or pallets labeled to a 5-digit scheme 
carrier routes destination that contain bundles for only one of the 5-
digit areas are considered to be sorted to 5-digit scheme carrier 
routes. Preparation of 5-digit scheme carrier routes trays or pallets 
must be done for all 5-digit scheme destinations.
    j. A merged 5-digit sort is an optional sort for Standard Mail 
flats in flat trays or alternate containers and is defined in 1.3e. If 
preparation of merged 5-digit trays is performed, it must be done for 
all 5-digit ZIP Code destinations with an ``A'' or ``C'' indicator in 
the Carrier Route Indicators field in the City State Product.
    k. The merged 5-digit sort is optional for bundles of Standard Mail 
flats prepared on pallets under 705.10 and is defined in 1.3f. Pallets 
labeled to a merged 5-digit destination that contain only a single 
price level of bundle(s) are considered to be merged 5-digit sorted.
    l. A merged 5-digit scheme sort for Standard Mail flats prepared in 
flat trays or approved alternate containers under 705.10.0 is defined 
in 1.3g. Trays or alternate containers labeled to a merged 5-digit 
scheme destination that contain only a single price level of bundle(s) 
or bundles for only one of the schemed 5-digit ZIP Codes are considered 
to be merged 5-digit scheme sorted.
    m. A merged 5-digit scheme sort for bundles of Standard Mail flats 
on pallets under 705.8.0, 705.10.0, 705.12.0, or 705.13.0 is defined in 
1.3h. Pallets labeled to a merged 5-digit scheme destination that 
contain only a single price level of bundle(s) or bundles for only one 
of the 5-digit ZIP Codes are considered to be merged 5-digit sorted. If 
preparation of merged 5-digit scheme pallets is performed, it must be 
done for all 5-digit scheme destinations in L001.
    n. A 3-digit scheme sort for bundles of flats meeting the standards 
in 301.3.0 is defined in 1.3j. When standards require 3-digit/scheme 
sort for flats, mailers must prepare all possible 3-digit scheme 
bundles of flats, then prepare all possible 3-digit bundles. Label 
bundles using an optional endorsement line (OEL) under 708.7.0 or with 
a green ``3SCH'' bundle label. Place bundles in appropriate containers 
using the OEL ``label to'' 3-digit ZIP Code or using L008 column B.
    o. An origin 3-digit (or origin 3-digit scheme) tray contains all 
mail (regardless of quantity) for a 3-digit ZIP Code (or 3-digit 
scheme) area processed by the SCF in whose service area the mail is 
verified. A separate tray may be prepared for each 3-digit ZIP Code (or 
3-digit scheme) area.
    p. The required at [quantity] instruction means that the particular 
unit must be prepared for the corresponding presort level whenever the 
specified quantity of mail is reached or exceeded, up to the maximum 
size or weight.
    q. The optional at [quantity] instruction means that the particular 
unit may be prepared for the corresponding presort level whenever the 
specified quantity is reached or exceeded, up to the maximum size or 
weight.
    r. Entry [facility] (or origin [facility]) refers to the USPS mail 
processing facility (e.g., ``entry NDC'') that serves the Post Office 
at which the mail is entered by the mailer. If the Post Office where 
the mail is entered is not the one

[[Page 13710]]

serving the mailer's location (e.g., for plant-verified drop shipment), 
the Post Office of entry determines the entry facility. Entry SCF 
includes both single-3-digit and multi-3-digit SCFs. Entry NDC includes 
subordinate ASFs unless otherwise specified.
    s. A bundle is a group of addressed pieces secured together as a 
unit. Bundle preparation is described in 2.0.
    t. A ``logical'' presort destination represents the total number of 
pieces that are eligible for a specific presort level but which might 
not be contained in a single bundle or in a single flat tray, approved 
alternate container or pallet due to preparation requirements or the 
size of the individual pieces. For example, there may be 42 mailpieces 
for ZIP Code 43112 forming a ``logical'' 5-digit bundle, and the pieces 
are prepared in three physical 5-digit bundles.
    u. Cobundling is an alternate preparation method available under 
705.11.0 for Standard Mail that allows the combining of flat-size 
automation price and Presorted price pieces within the same bundle 
under the single minimum bundle size requirement. Regardless of the 
class of mail, pieces may not be combined in more than one physical 
bundle for each logical presort destination unless presented using an 
approved manifest mailing system under 705.2.0.
    [Revise title and text of 1.5 as follows:]

1.5 Required Pallet Preparation

    Mailers must prepare pallets under 705.8 when they have reached the 
minimum loads described in 705.8.5.3. If a mailer is unable to 
palletize, mail must be separated and placed in flat trays or approved 
alternate containers.
* * * * *

2.0 Bundles

* * * * *

2.2 Address Visibility

    * * * This standard does not apply to the following:
* * * * *
    [Revise items 2.2b and c as follows:]
    b. Bundles placed in or on 5-digit or 5-digit scheme (L001) flat 
trays, alternate containers or pallets.
    c. Bundles placed in carrier route(s) flat trays or alternate 
containers.
* * * * *
    [Revise title of 2.6 and text of the introductory sentence as 
follows:]

2.6 Preparing Bundles in Flat Trays or Alternate Containers

    In addition to the standards in 2.5, mailers must prepare bundles 
in flat trays or approved alternate containers as follows:
* * * * *
    [Revise title and introductory sentence only of 2.7 as follows:]

2.7 Additional Standards for Untrayed Bundles Entered at DDU Facilities

    Mailers may enter untrayed, nonpalletized bundles of flat-size 
pieces at destination delivery units (DDUs) if all the following 
conditions are met:
* * * * *

2.9 Pieces With Simplified Address

    [Revise the last sentence of 2.9 as follows:]
    * * * Bundles must be secure and stable subject to weight limits in 
705.8.0 if placed on pallets, and other limits in 2.6 if placed in 
trays or alternate containers.
* * * * *
    [Revise title of 3.0 as follows:]

3.0 Trays and Alternate Containers

3.1 Standard Containers

    [Revise the first sentence of the introductory paragraph of 3.1 as 
follows:]
    If mailers are unable to palletize, mailings must be prepared in 
flat trays or approved alternate containers except as permitted in 
letter trays under 3.4 and under other standards in this section. * * *
* * * * *
    [Revise title and text of 3.2 as follows:]

3.2 Tray Preparation

    Tray and alternate container preparation is subject to these 
standards:
    a. Each tray or alternate container must bear the correct tray 
label.
    b. The weight of a tray, or alternate container, and its content 
must not exceed 70 pounds.
* * * * *

3.4 Preparing Flats in Letter Trays

    [Revise the introductory paragraph of 3.4f as follows:]
    Standard Mail flat-size pieces may be prepared in letter trays 
instead of flat trays only if the following standards are met:
* * * * *
    [Revise 3.4f as follows:]
    f. All pieces in the mailing must be placed in letter trays on 
pallets, separated by presort destination when the required minimum 
pallet load in 705.8.5.3 cannot be met.
* * * * *
    [Delete 3.6, Strapping Exception, in its entirety.]
* * * * *
    [Revise title of 4.0 as follows:]

4.0 Tray Labels

4.1 Basic Standards

    [Revise 4.1 as follows:]
    Tray labels are subject to the following:
    a. Labels for flat trays or approved alternate containers for 
automation mailings are subject to 4.9 and 708.6.5.
    b. Only legible labels, including hand written labels, are 
acceptable. Machine-printed labels (available from the USPS) ensure 
legibility.
    c. Intelligent Mail tray labels are subject to the standards in 
708.6.5 and to the specifications posted at https://ribbs.usps.gov.
* * * * *
    [Delete 4.7, Sack Label, in its entirety, and renumber current 
items 4.8 and 4.9 as the new 4.7 and 4.8.]
* * * * *
    [Revise the title of renumbered 4.8 and text of the introductory 
sentence only as follows:]

4.8 Use of Barcoded Tray Labels

    Exhibit 4.8 shows the types of mail requiring barcoded tray labels. 
Barcoded labels must meet these general standards:
* * * * *
    [Revise renumbered items 4.8d and e as follows:]
    d. Mailers must insert a barcoded label completely into the label 
holder on the tray or alternate container.
    e. Intelligent Mail tray labels must be used on all trays and 
alternate container for mailings entered under the full-service 
Intelligent Mail automation option.

Exhibit 4.9 Required Barcoded Container Labels

    [Revise the ``price or type'' description in the second row of 
Exhibit 4.9 to replace the word ``cosacked'' with ``cotrayed'' under 
Standard Mail as follows:]
PRICE OR TYPE
Standard Mail
* * * * *
Cobundled and Cotrayed Under 705.9.0 Through 705.13.0
* * * * *

5.0 Preparing Nonautomation Flats

5.1 Basic Standards

* * * * *

[[Page 13711]]

    b. All pieces must meet the applicable general preparation 
standards in 1.0 through 4.0 and the following:
* * * * *
    [Revise 5.1b2 as follows:]
    2. All pieces must be in the flat-size processing category and must 
be bundled and placed on pallets, or bundled and placed in flat trays 
or approved alternate containers. Certain flat-size pieces may be 
prepared in letter trays under 3.0.
* * * * *

5.2 Required Bundling

    [Revise the first sentence of 5.2 as follows:]
    Bundling is required before placing flats on pallets, in flat trays 
or alternate containers. * * *
* * * * *
    [Delete current 5.4, Loose Packing, in its entirety and renumber 
current items 5.5 through 5.9 as the new 5.4 through 5.8:]
    [Revise title of renumbered 5.4 as follows:]

5.4 Required Traying

    [Revise the introductory paragraph of renumbered 5.4 as follows:]
    If unable to palletize under 705.8.0, or except as provided in 5.5, 
a tray or alternate container must be prepared when the quantity of 
mail for a required presort destination reaches either 125 pieces or 15 
pounds of pieces, whichever occurs first, subject to these conditions:
* * * * *
    b. For nonidentical-weight pieces, mailers must apply either one of 
these methods:
* * * * *
    [Revise 5.4b2 as follows:]
    2. The actual piece count or mail weight for each tray or container 
is used, if documentation shows the number of pieces and the total 
weight of pieces in each tray.
* * * * *
    [Revise title and introductory sentence of renumbered 5.6 as 
follows;]

5.6 Traying and Labeling

    Mailers must segregate trays destined within the origin/entry SCF 
under 346.1.3. Preparation sequence and labeling:
* * * * *
    [Delete current item 5.6e in its entirety and add new items e 
through g as follows:]
    e. Origin Network Distribution Center (NDC) Network (required); no 
minimum; labeling:
    1. Line 1: L604, Column C.
    2. Line 2: ``STD FLTS NDC NON BC.''
    f. Tier 2 Network (required); no minimum; labeling:
    1. Line 1: L604, Column C.
    2. Line 2: ``STD FLTS NON BC WKG.''
    g. Tier 2 Network (required for specified acceptance locations); if 
the origin NDC is Chicago, Cincinnati or Saint Louis, use Labeling List 
L604 to separate the remaining mail into two east or west 
directionally-based containers; if the origin NDC is San Francisco, use 
Labeling List L604 to separate the remaining mail into two north or 
south directionally-based containers; no minimum; labeling:
    1. Line 1: L604, Column C.
    2. Line 2: ``STD FLTS NON BC WKG.''
* * * * *
    [Resequence numbered items 5.7 and 5.8 as the new 5.8 and 5.9 and 
add a new 5.7 as follows:]

5.7 Containerization--Flat Tray Preparation and Labeling

    Mailers must prepare bundles on pallets under 705.8.0 when minimum 
volume is available for a required pallet level. Mailers who are unable 
to palletize, or mailers of small volume mailings, must prepare bundles 
in flat trays or approved alternate containers as shown in items a 
through c. Mailers entering mailings at acceptance locations specified 
in 5.7d must prepare mailings according to the instructions in d 
instead of c. Preparation sequence and labeling:
    a. Origin-Entry 3 Digit (optional); no minimum; when making these 
separations, mailers must segregate trays as described in 346.1.3; 
labeling:
    1. Line 1: Column A, L002
    2. Line 2: ``STD FLTS 3D NON BC
    b. Origin Network Distribution Center (NDC) Network (required); no 
minimum; labeling:
    1. Line 1: L604, Column C information for the facility serving the 
3-digit ZIP Code prefix of entry Post Office.
    2. Line 2: ``STD FLTS NON BC.''
    c. Tier 2 Network (required); no minimum; labeling:
    1. Line 1: L604, Column C based on information for the facility 
serving the 3-digit ZIP Code prefix of entry Post Office.
    2. Line 2: ``STD FLTS NON BC.''
    d. Tier 2 Network (required for specified acceptance locations); if 
the origin NDC is Chicago, Cincinnati or Saint Louis, use Labeling List 
L604 to separate the remaining mail into two east or west 
directionally-based containers; if the origin NDC is San Francisco, use 
Labeling List L604 to separate the remaining mail into two north or 
south directionally-based containers; no minimum; labeling:
    1. Line 1: L604, Column C, based on information for the facility 
serving the 3-digit ZIP Code prefix of entry Post Office
    2. Line 2: ``STD FLTS NON BC.''

5.8 Cotraying and Cobundling Flats With Automation Mail

    The following standards apply:
* * * * *
    [Revise items 5.8b through d as follows:]
    b. If the mailing job contains an automation mailing and a 
nonautomation mailing, it must be prepared under the cotraying 
standards in 705.9.0.
    c. If the mailing job contains a carrier route mailing and a 
nonautomation mailing, it must be separately trayed under 5.0 and 6.0 
or under the merged traying option in 705.10.0.
    d. If the mailing job contains a carrier route mailing and an 
automation mailing, then it must be separately trayed under 6.0 and 7.0 
or under the merged traying option in 705.10.0.
* * * * *

5.9 Merged Containerization of Carrier Route, Automation, and 
Nonautomation Flats

    [Revise the first sentence of 5.9 as follows:]
    Under the optional preparation in 705.10.0, nonautomation 5-digit 
bundles prepared under 5.0 are combined in trays or approved alternate 
containers with carrier route bundles and automation 5-digit bundles in 
merged 5-digit scheme trays and merged 5-digit trays. * * *
* * * * *

6.0 Preparing Enhanced Carrier Route Flats

6.1 Basic Standards

    All mailings and all pieces in each mailing at Enhanced Carrier 
Route Standard Mail and Nonprofit Enhanced Carrier Route Standard Mail 
nonautomation prices are subject to specific preparation standards in 
6.2 through 6.7 and to these general standards:
* * * * *
    c. All pieces must meet the standards in 2.0 through 4.0 and 302, 
and the following:
* * * * *
    [Revise 6.1c2 as follows:]
    2. Flat-size pieces must be bundled and placed on pallets under 
705.8.0, or if unable to palletize placed into flat trays or alternate 
containers or, if applicable, in letter trays under 3.4. When entering 
flat-size pieces at DDUs,

[[Page 13712]]

mailers may prepare untrayed, nonpalletized bundles under 2.7.
* * * * *

6.3 Carrier Route Bundle Preparation

    Prepare carrier route bundles of flat-size mail as follows:
* * * * *
    [Revise 6.3c as follows:]
    c. Label carrier route bundles based on the following tray levels:
    1. Carrier route tray: No bundle labeling is required.
    2. 5-digit scheme or 5-digit carrier routes tray: Bundles must have 
a facing slip unless the pieces in the bundle have a carrier 
information line or an optional endorsement line (OEL).
    [Revise title and text of 6.4 as follows:]

6.4 Bundles and Trays With Fewer Than the Minimum Number of Pieces 
Required

    As a general exception to 6.2 through 6.7, a mailer may prepare a 
bundle or tray with fewer than the minimum number of pieces required 
for a carrier route when pieces meet the saturation standards.
* * * * *
    [Revise title and text of the introductory paragraph only of 6.6 as 
follows:]

6.6 Required Tray Minimums

    When traying or containerization is required, mailers must prepare 
a tray or approved alternate container when the quantity of mail for a 
required presort destination reaches either 125 pieces or 15 pounds of 
pieces, whichever occurs first. The following conditions apply:
* * * * *
    [Revise 6.6b as follows:]
    b. For nonidentical-weight pieces, mailers must either use the 
minimum that applies to the average piece weight for the entire mailing 
or tray the pieces according to the actual piece count or mail weight 
for each tray, if documentation shows the number and total weight in 
each tray.
* * * * *
    [Revise 6.6d as follows:]
    d. Trays with fewer than 125 pieces or less than 15 pounds of 
pieces may be prepared to a carrier route when pieces meet the 
saturation standards.
* * * * *
    [Revise title and introductory paragraph only of 6.7 as follows:]

6.7 Tray Preparation

    Mailers must segregate trays destined within the origin/entry SCF 
under 346.1.3. Preparation sequence and labeling:
* * * * *

6.8 Merged Containerization of Carrier Route, Automation, and Presorted 
Price Flats

    [Revise the first sentence of 6.8 as follows:]
    Under the optional preparation in 705.10.0, carrier route bundles 
are combined in trays or approved alternate containers with 5-digit 
bundles (both presorted and automation) in merged 5-digit scheme trays 
and merged 5-digit trays. * * *
* * * * *

7.0 Preparing Automation Flats

7.1 Basic Standards

    [Revise the second sentence of 7.1 as follows:]
    * * * Trays must bear the appropriate barcoded container labels 
under 4.9.
* * * * *

7.4 Standard Mail Bundle Preparation

* * * * *
    [Revise title of 7.4.2 as follows:]

7.4.2 Required Traying

    [Revise the introductory paragraph of 7.4.2 as follows:]
    If unable to palletize under 705.8.0, a tray or approved alternate 
container must be prepared when the quantity of mail for a required 
presort destination reaches either 125 pieces or 15 pounds of pieces, 
whichever occurs first, subject to these conditions:
* * * * *
    [Revise 7.4.2b as follows:]
    b. For nonidentical-weight pieces, mailers must either use the 
minimum that applies to the average piece weight for the entire mailing 
or tray by the actual piece count or mail weight for each tray, if 
documentation shows the number and total weight of pieces in each tray.
* * * * *
    [Revise title and text of the introductory paragraph only of 7.4.3 
as follows:]

7.4.3 Traying and Labeling

    Mailers must segregate trays destined within the origin/entry SCF 
under 346.1.3. Preparation sequence and labeling:
    [Revise the opening paragraph only of 7.4.3 a and c as follows:]
* * * * *
    [Delete current 7.4.3e in its entirety and add new items e through 
g as follows:]
    e. Origin Network Distribution Center (NDC) Network (required); no 
minimum; labeling:
    1. Line 1: L604, Column C.
    2. Line 2: ``STD FLTS NDC BC.''
    f. Tier 2 Network (required); no minimum; labeling:
    1. Line 1: L604, Column C.
    2. Line 2: ``STD FLTS BC WKG.''
    g. Tier 2 Network (required for specified acceptance locations); if 
the origin NDC is Chicago, Cincinnati or Saint Louis, use Labeling List 
L604 to separate the remaining mail into two east or west 
directionally-based containers; if the origin NDC is San Francisco, use 
Labeling List L604 to separate the remaining mail into two north or 
south directionally-based containers; no minimum; labeling:
    1. Line 1: L604, Column C.
    2. Line 2: ``STD FLTS BC WKG.''
* * * * *
    [Renumber current items 7.6 and 7.7 as the new 7.7 and 7.8 and add 
a new 7.6 as follows:]

7.6 Containerization--Flat Tray Preparation and Labeling

    Mailers must prepare bundles on pallets under 705.8.0 when minimum 
volume is available for a required pallet level. Mailers who are unable 
to palletize, or mailers of small volume mailings, must prepare bundles 
in flat trays or approved alternate containers under 7.6a through 7.6c. 
Mailers entering mailings at acceptance locations specified in item d 
must prepare mailings according to the instructions in 7.6d instead of 
c. Preparation sequence and labeling:
    a. Origin-Entry 3 Digit (optional); no minimum; when making this 
separation, mailers must segregate trays under 346.1.3; labeling:
    1. Line 1: Column A, L002.
    2. Line 2: ``STD FLTS 3D BC.
    b. Origin Network Distribution Center (NDC); (required); no 
minimum; labeling:
    1. Line 1: L604, Column C information for the facility serving the 
3-digit ZIP Code prefix of entry Post Office.
    2. Line 2: ``STD FLTS BC WKG.''
    c. Tier 2 Network (required); no minimum; labeling:
    1. Line 1: L604, Column C based on information for the facility 
serving the 3-digit ZIP Code prefix of entry Post Office.
    2. Line 2: ``STD FLTS BC WKG.''
    d. Tier 2 Network (required for specified acceptance locations); if 
the origin NDC is Chicago, Cincinnati or Saint Louis, use Labeling List 
L604 to separate the remaining mail into two east or west 
directionally-based containers; if the origin NDC is San Francisco, use 
Labeling List L604 to separate the remaining mail into two north or 
south directionally-based containers; no minimum; labeling:

[[Page 13713]]

    1. Line 1: L604, Column C, based on information for the facility 
serving the 3-digit ZIP Code prefix of entry Post Office.
    2. Line 2: ``STD FLTS BC WKG.''

7.7 Merged Containerization With Presorted and Carrier Route Flats

    [Revise renumbered 7.7 as follows:]
    When the standards in 705.10.0, 705.12.0, or 705.13.0 are met, 5-
digit bundles and carrier route bundles that are part of the same 
mailing job and mail class may be combined on merged 5-digit scheme 
trays or pallets and merged 5-digit trays or pallets. Automation flats 
may be cobundled with nonautomation flats under 705.11.0.

7.8 Exception--Automation and Nonautomation Pieces on Pallets

    [Revise the third and fifth sentences of renumbered 7.8 as 
follows:]
    * * * Mailing jobs prepared entirely in trays and claiming this 
exception must be cobundled under 705.11.0. * * * The nonautomation 
pieces that cannot be placed on NDC or finer level pallets may be 
prepared in flat trays and paid at nonautomation flat-size prices. * * 
*
* * * * *

346 Enter and Deposit

1.0 Presenting a Mailing

* * * * *
    [Add a new 1.3 as follows:]

1.3 Segregation of Origin SCF Mailpieces

    Mailers must make all required, and may make any optional, origin/
entry carrier route, 5-digit (scheme) carrier route, (merged) 5-digit 
(scheme) and 3-digit (scheme) separations destinating in the service 
area of the SCF serving the Post Office where the mail is verified, or 
the service area of the SCF/plant where mail is entered. For all such 
separations, mailpieces must be trayed or placed in alternative 
containers under 345.0 and segregated from the remainder of the 
mailing. Mailers must segregate the origin/entry trays by one of these 
methods: Separately containerize the trays; place the trays in a 
conspicuous location on top of origin SCF pallet or other container; or 
present them separately to acceptance personnel.
* * * * *

3.0 Destination Network Distribution Center (DNDC) Entry

* * * * *

3.2 Eligibility

    [Revise 3.2 as follows:]
    Pieces in a correctly prepared Standard Mail mailing that meet the 
standards in 2.0 and 3.0 are eligible for the DNDC price when they meet 
all of the following conditions:
    a. Pieces are addressed for delivery to one of the 3-digit ZIP 
Codes served by the NDC or ASF where deposited that are listed in 
Exhibit 3.1.
    b. Pieces are correctly placed on a pallet or in a tray that is 
labeled to an NDC or ASF, or to a postal facility within the service 
area of that NDC or ASF (see Exhibit 3.1), and deposited at that NDC or 
ASF.
    c. If bundles of flats on pallets are reallocated from an ASF 
pallet to a NDC pallet under 705.8.14, mail for the ASF ZIP Codes 
placed on the NDC pallet is not eligible for the DNDC prices.

3.3 Eligibility for ADC Mailpieces

    [Revise the first sentence of 3.3 as follows:]
    All pieces in an ADC tray are eligible for the DNDC discount if the 
ADC facility ZIP Code (as shown on Line 1 of the corresponding 
container label) is within the service area of the NDC or ASF at which 
the tray is deposited as shown in Exhibit 3.1. * * *
    [Revise title and text of 3.4 as follows:]

3.4 Eligibility for Mixed ADC Bundles or Trays

    Mailpieces in a mixed ADC bundle or tray can qualify for the DNDC 
prices if the following standards are met:
    a. All pieces (no minimum) in the bundle or tray must destinate 
within the ASF or NDC service area shown in Exhibit 3.1.
    b. Use labeling list L009 when labeling bundles or trays containing 
such pieces.
* * * * *

4.0 Destination Sectional Center Facility (DSCF) Entry

* * * * *

4.2 Eligibility

    Pieces in a mailing that meets the standards in 2.0 and 4.0 are 
eligible for the DSCF price, as follows:
    [Revise items 4.2a and b as follows:]
    a. When deposited at a DSCF (or USPS-designated facility), 
addressed for delivery within that facility's service area, and placed 
on a pallet or in a tray labeled to that DSCF or to a postal facility 
within its service area.
    b. When prepared in 5-digit bundles and placed on or in a merged 5-
digit scheme or merged 5-digit pallet or tray deposited at the 
destination delivery unit as defined in 5.1.
* * * * *

360 Bound Printed Matter

* * * * *

365 Mail Preparation

1.0 General Information for Mail Presentation

1.1 Basic Preparation--Nonpresorted

    [Revise 1.1as follows:]
    There are no presort, traying, containerization, or labeling 
standards for nonpresorted Bound Printed Matter.
* * * * *

1.4 Terms for Presort Levels

    Terms used for presort levels are defined as follows:
* * * * *
    [Renumber current 1.4i through k as the new j through l and add a 
new item i as follows:]
    i. Origin/entry SCF: The separation includes bundles for one or 
more 3-digit areas served by the same sectional center facility (SCF) 
(see L005) in whose service area the mail is verified/entered. 
Mailpieces may be separated for each such 3-digit area regardless of 
the volume of mail. Mailers making these separations must segregate 
flat trays, approved alternate containers or pallets labeled to 
destinations within the origin 3-digit area from the remainder of the 
mailing as described in 366.2.7.
* * * * *

1.5 Preparation Definitions and Instructions

    For purposes of preparing mail:
* * * * *
    [Revise 1.5b as follows:]
    b. An approved alternate container is a container that is 
authorized by the USPS, instead of a flat tray (tub) or pallet. 
Alternate containers could include sacks, other USPS-supplied mail 
transport equipment, or mailer-supplied containers.
    [Revise the second sentence of 1.5c as follows:]
    c. * * * When standards require 5-digit/scheme sort, mailers must 
prepare all possible 5-digit scheme bundles and trays or approved 
authorized containers before preparing 5-digit bundles, and trays or 
containers. * * *
    [Revise item 1.5d as follows:]
    d. A 5-digit scheme carrier routes sort is required for Carrier 
Route Bound Printed Matter flats prepared in trays, or approved 
alternate containers, or as bundles on pallets and yields a 5-digit 
scheme carrier routes trays, alternate containers or pallets for those 
5-digit ZIP Codes listed in L001 and 5-digit carrier routes trays, 
alternate containers or pallets for other areas. The 5-digit ZIP Codes 
in each scheme are treated as one

[[Page 13714]]

presort destination subject to a single minimum tray, alternate 
container or pallet volume. Trays, alternate containers or pallets 
prepared for a 5-digit scheme carrier routes destination that contain 
carrier route bundles for only one of the schemed 5-digit areas are 
considered to be sorted to 5-digit scheme carrier routes. Preparation 
of 5-digit scheme carrier routes trays, alternate containers or pallets 
must be done for all 5-digit scheme destinations.
* * * * *
    [Revise 1.5g as follows:]
    g. The required at [quantity] instruction means that the particular 
unit must be prepared for the corresponding presort level whenever the 
specified quantity of mail is reached or exceeded, up to the maximum 
size or weight.
    [Revise 1.5h as follows:]
    h. The optio