Electronic Verification System Migrated to USPS Ship, 31639-31645 [2024-08814]

Agencies

• Postal Service

[Federal Register Volume 89, Number 81 (Thursday, April 25, 2024)]
[Rules and Regulations]
[Pages 31639-31645]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08814]


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POSTAL SERVICE

39 CFR Part 111


Electronic Verification System Migrated to USPS Ship

AGENCY: Postal ServiceTM.

ACTION: Final rule.

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SUMMARY: The Postal Service is amending Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM[supreg]) to require 
the use of USPS ShipTM (aka Package Platform) for the 
acceptance and payment of all commercial domestic and international 
parcel mailings and discontinue the use of the Electronic Verification 
System (eVS[supreg]).

DATES: Effective Date: February 1, 2025.

FOR FURTHER INFORMATION CONTACT: Diane Smith at (202) 268-8091, Vicki 
Bosch (202) 268-4978 or Garry Rodriguez at (202) 268-7281.

SUPPLEMENTARY INFORMATION: On November 28, 2023, the Postal Service 
published a notice of proposed rulemaking (88 FR 83056-83062) to 
require the use of USPS Ship. In response to the proposed rule, the 
Postal Service received two responses containing multiple comments, as 
follows:
    Comment: One commenter recommended the final rule clarify that USPS 
Ship will replace only eVS and that all other payment and acceptance 
channels including Click-N-Ship, ePostage, PC Postage, IBI postage 
meters, non-eVS (BMEU entered and permit imprint) will be unaffected 
unless specifically addressed.
    Response: All commercial packages will be verified through USPS 
Ship.
    Comment: One commenter recommended the final rule clarify that for 
purposes of the migration from eVS to USPS Ship, negotiated service 
agreement (NSA) provisions governing payment and acceptance processes 
will not be changed, rather USPS Ship will be deemed a successor system 
to eVS, and that the migration will not otherwise modify preexisting 
contractual payment and acceptance processes.
    Response: In Terms of NSAs, customers are expected to transition to 
the successor system which is USPS Ship.
    Comment: One commenter recommended the final rule clarify any 
planned changes in the refund and disputes processes to ensure quality 
control and quality assurance for fee assessment in connection with the 
migration to USPS Ship.
    Response: The Postal Service has the USPS Ship User Guide, which 
will be available on PostalPro at https://postalpro.usps.com, and 
mailers should reference the document for all information regarding 
USPS Ship including questions for refunds and disputes.
    Comment: Two commenters expressed concern over the implementation 
date. One commenter stated they appreciate the need to identify an 
aggressive target implementation date, in this case February 1, 2025. 
However, past experiences with comparable payment systems migrations 
underscore the countervailing importance of setting and measuring 
incremental progress against intermediate benchmarks. This is 
especially important for competitive package products offered in a 
highly competitive marketplace. Another commenter stated that there are 
concerns that the planned schedule will not allow sufficient time for 
the Postal Service's systems to stabilize or for shippers to make 
necessary system changes in response.
    Response: While the Postal Service works with the industry toward 
meeting the target implementation date, we will consider if any 
extensions to the date are needed.
    The Postal Service is requiring the use of USPS Ship for the 
acceptance and payment of all commercial domestic and international 
parcel mailings. USPS Ship combines the attributes captured from scan 
data and manifested attributes to ensure customers are charged accurate 
postage. For consolidators, if there are adjustments to inaccurate 
original postage, those individual package costs can be provided to the 
mail owners.
    USPS Ship offers online enrollment, individual package pricing, 
automated adjustments, online reports, and data feeds via IV-MTR. The 
automated capture enables individual package attributes to be compared 
to manifest data to validate accurate postage. Shortpaid (postage due) 
or overpaid (refunds) will be assessed upon package delivery and 
applied to the Enterprise Payment Account (EPA) on file.
    Requirements to participate in USPS Ship are as follows:
     Customers must enroll in USPS Ship and be assigned a 
unique Mailer Identifier (MID) for use on packages.
     Customers must submit valid rate ingredients for payment 
for each package within their shipment.
     Customers must upload manifests to USPS using the Parcel 
Data Exchange or Electronic Interchange (SFTP or AS2) for payment as 
noted in eVS Pub 205.
     Customers must pay postage through an Enterprise Payment 
Account.
     Packages must include a Tracking Number that is unique for 
120 days.
     Customers must ship the following products:
    [cir] Domestic Products--Priority Mail Express[supreg], Priority 
Mail[supreg], USPS Ground AdvantageTM (formerly First-Class 
Package[supreg] Service), Bound Printed Matter, Media Mail[supreg], 
Library Mail, USPS Marketing Mail[supreg] parcels, USPS Marking Mail 
Nonprofit parcels, Parcel Select[supreg] Destination Entry, USPS 
ConnectTM Local, USPS Connect Local Mail, and USPS 
Returns[supreg].
    [cir] International Products--Global Express Guaranteed[supreg], 
Priority Mail Express International[supreg], Priority Mail 
International[supreg], and First-Class Package International 
Service[supreg].

Manifest Mailing Operations in USPS Ship

    Mailers and shippers who meet program requirements must ship 
parcels using the following procedure:
    1. The mailer/parcel shipper transmits an electronic manifest to 
the Postal Service detailing all USPS Ship parcels to be deposited into 
the mailstream on or before the date of mailing.
    2. USPS Ship will validate the electronic manifest and calculate 
postage based on rate ingredients.
    3. Postage is charged to the EPA on the day that the manifest was 
submitted and processed. Transactions and manifest summary information 
can be

[[Page 31640]]

accessed through the online reports or data feeds.
    4. The mailer/parcel shipper transports and enters the mail at the 
appropriate origin or destination entry (NDC/RP&DC, SCF/RP&DC, DHub, 
DDU or S&DC) Postal Service facility.
    5. As parcels are deposited at the origin entry facilities, 
packages are run across Mail Processing Equipment (MPE) and captured 
attributes (weight, dimensions, entry, packaging) are transmitted to 
USPS Ship. The captured attributes are compared to manifested 
attributes to ensure the correct postage has been paid. If there are 
discrepancies, shortpaid/overpaid will be applied to the EPA.
    6. As parcels are deposited at the DDU or DS&DC facilities, 
packages are sampled, and the sampled attributes are compared to the 
manifested attributes. A Statistical Quality Assessment is performed, 
and additional postage will be charged to the EPA.
    7. Assessment details can be accessed through the online reports or 
data feeds.

Postage Assessments

    USPS Ship will collect postage daily based on the electronic 
manifest(s) received that day from mailers. In addition, postage will 
be calculated and assessed for the following types of errors when 
detected:
     Census Verification occurs for packages that are 
automatically captured while packages are processed on MPE. The 
individual package information captured may include the weight, 
dimensions, USPS packaging, ZIP Code of scan, and destination ZIP Code. 
The captured information will be compared to the manifest information 
after the delivery scan for the package. The correct postage will be 
assessed, additional postage will be charged or refunded to reflect the 
accurate postage for the individual packages.
    [cir] Misshipped is include in the Census Verification. The 
manifest is matched to a scan and the Destination ZIP Code and 
Destination Rate Indicator of the is compared to the Mail Direction 
File (MDF) to determine the correct Dropship location. The ZIP Code of 
the first scan event is compared to the expected Dropship location 
indicated in the MDF. If the ZIP Code of the first scan event does not 
match the expected Dropship location, then a Misshipped error is 
logged, and additional postage will be charged.
     Unmanifested packages are identified by scanned packages 
without a manifest for payment in USPS Ship.
     Duplicate packages are identified by scanned packages with 
duplicate barcodes without a payment for each package in USPS Ship.
     IMpb noncompliance is measured using the same evaluation 
and established thresholds for the month period as previously required 
by eVS.
     Presort is measured by the 24-hour period to meet presort 
minimums by mail class as previously required by eVS.
     Statistical Quality Assessment (SQA) occurs for Parcel 
Select, Bound Printed Matter, USPS Marketing Mail packages that are 
entered and claimed at Destination Delivery Unit (DDU) prices. This 
verification is similar to the Postage Adjustment Factor (PAF), but is 
limited to DDU or DS&DC entered packages. If the postage for the 
packages that are sampled at a DDU or DS&DC compared to the manifested 
data, exceeds 1.5% underpayment, the percentage in error will be 
multiplied by the total postage for the mail class for the month and 
this calculated additional postage charge will be assessed. Only 
packages that are prompted for sampling will be part of this 
verification, any non- prompted samples will be part of the Census 
Verification.
     Content Audit is measured using the same business rules as 
previously required by eVS.

Postage Payment

    Commercial shippers entering at a Business Mail Entry Unit (BMEU) 
with small quantities may use Click-N-Ship or USPS Ship to enter their 
parcels. Otherwise, payment applies as follows:
     Parcel shippers/consolidators and mailers using permit 
imprint as the payment method and claiming Commercial or NSA prices 
that are not using Click-N-Ship are required to use USPS Ship for 
postage manifesting and payment.
     Parcel shippers/consolidators and mailers who use USPS 
APIs to create labels and submit their manifest files are also required 
to enroll in USPS Ship.

Postage Payment Schedule

     Daily--Postage for manifest files is charged the day of 
the manifest receipt/processing. The census verification is charged/
refunded the day of delivery.
     Monthly--Unmanifested, duplicates, IMpb, presort, content 
audit and SQA are assessed monthly and charged on the 15th of the 
following month.

Retrieving Data

    USPS Ship enables customers to view manifest and assessment data by 
accessing online reports or subscribing to IV-MTR data feeds.
     Accessing Online Reports--The Online Dashboard provides 
summary details for manifests that were charged and package level 
details for postage adjustments. Customers should complete the 
following to access the USPS Ship Reports:

 Login to the Business Customer Gateway (BCG)
 Click ``Go to Service'' button on the USPS Ship Report service 
within Manage Services menu
 Click ``Summary Dashboard''
 Monthly Activity Report will be displayed
 Click ``Reports'' dropdown menu to view and select from the 
list of available reports
[cir] Reports can be filtered, sorted, and exported in Excel and CSV 
formats

     Subscribing to IV-MTR Data Feeds--IV-MTR allows customer 
to customize to select and organize fields to be included, chose 
frequency, choose file format, and choose delivery location. Customers 
should complete the following to setup IV-MTR subscriptions:

 Login to BCG
 Click ``Go to Service'' button on the Informed Visibility 
service within Manage Services Menu
 Click ``Create and Manage Data Feeds''
 Select Data Feed Type
 Select File Format
 Select Server for Data Feed Delivery
 Select Frequency of Data Feed Delivery
 Define Data Fields of Data Feed
[cir] Detailed Instructions for accessing IV-MTR can be found under 
Applying for Access to Informed Visibility Mail Tracking and Reporting 
on PostalPro. Detailed instructions for customizing data feeds can be 
found under `Orientation Training for Informed Visibility Mail Tracking 
and Reporting' on PostalPro

eVS Discontinued

    Due to the ability to automatically capture package attributes, and 
the new system infrastructure, the Postal Service will discontinue eVS.
    We believe the proposed revisions will provide customers with a 
more efficient mailing experience.
    The Postal Service adopts the described changes to Mailing 
Standards of the United States Postal Service, Domestic Mail Manual 
(DMM), incorporated by reference in the Code of Federal Regulations.
    We will publish an appropriate amendment to 39 CFR part 111 to 
reflect these changes.

[[Page 31641]]

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

    Accordingly, 39 CFR part 111 is amended as follows:

PART 111--[AMENDED]

0
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, 401-404, 414, 416, 3001-3018, 3201-3220, 3401-
3406, 3621, 3622, 3626, 3629, 3631-3633, 3641, 3681-3685, and 5001.


0
2. Revise the Mailing Standards of the United States Postal Service, 
Domestic Mail Manual (DMM) as follows:

Mailing Standards of the United States Postal Service, Domestic Mail 
Manual (DMM)

* * * * *

200 Commercial Mail Letters, Flats, and Parcels

* * * * *

202 Elements on the Face of a Mailpiece

* * * * *

3.0 Placement and Content of Mail Markings

* * * * *

3.8 Exceptions to Markings

    Exceptions are as follows:
* * * * *
    [Revise the last sentence of the introductory text of item b to 
read as follows:]
    b. * * * Mail manifested using the USPS Ship system under 
705.2.0 must bear the basic marking and the additional marking 
``USPS Ship'' in two places:
* * * * *

6.0 Barcode Placement for Parcels

* * * * *

6.3 Intelligent Mail Barcodes

    [Revise the first sentence of 6.3 to read as follows:]
    Intelligent Mail barcodes (IMb) do not meet barcode eligibility 
requirements for parcels and do not qualify for any barcode-related 
prices for parcels, but one barcode may be included only in the 
address block on a parcel, except on USPS Ship parcels. * * *
* * * * *

203 Basic Postage Statement, Documentation, and Preparation Standards

1.0 Postage Statements

1.1 Completing Postage Statements

    [Revise the first sentence under 1.1 to read as follows:]
    Unless manifested using USPS Ship under 705.2.9, any mailing 
claiming a discount and all permit imprint mailings must be 
accompanied by a postage statement completed and signed by the 
mailer (in duplicate if the mailer wants a receipted copy). * * *
* * * * *

2.0 Documentation

2.1 Basic Documentation Standards

    [Revise the second sentence of 2.1 to read as follows:]
    * * * Supporting documentation (see 3.0) of postage is required 
for each mailing except for USPS Ship mailings under 705.2.9, or 
unless the correct price is affixed to each piece or each piece is 
of identical weight and the pieces are separated by price and when 
applicable zone (including separation by In-County and Outside-
County prices and destination entry for Periodicals) when presented 
for acceptance. * * *
* * * * *

5.0 Letter and Flat Trays

* * * * *

5.13 Line 3 (Office of Mailing or Mailer Information Line)

    [Revise the text of 5.13 to read as follows:]
    Line 3 (origin line showing office of mailing or mailer 
information) must be the bottom line of required information unless 
the sack/flat tray contains mail manifested using the USPS Ship 
under 705.2.9. Line 3 must show either the city and state of the 
entry Post Office or the mailer`s name and the city and state of the 
mailer`s location. It is recommended that the mailer`s name also 
appear with the city and state of the entry Post Office. As an 
alternative to adding a fourth line for USPS Ship mailings as 
required by 5.6, ``USPS Ship'' may appear as the first element on 
Line 3.
* * * * *

6.0 Sacks

* * * * *

6.4 USPS Ship System

    [Revise the text of 6.4 to read as follows:]
    All sacks containing parcels prepared and identified using the 
USPS Ship program under 705.2.9 must show ``USPS Ship'' directly 
below Line 3 using the same size and lettering used for Line 3. As 
an option, ``USPS Ship'' may be placed as the first element on Line 
3.
* * * * *

204 Barcode Standards

* * * * *

2.0 Standards for Package and Extra Service Barcodes

2.1 Intelligent Mail Package Barcode

* * * * *

2.1.8 Compliance Quality Thresholds

* * * * *

Exhibit 2.1.8 IMpb Compliance Quality Thresholds

    Compliance Categories Compliance Codes Validations Compliance 
Thresholds
* * * * *
    [Revise the fifth bullet under the ``Validations'' column to 
read as follows:]
     Customers using USPS Ship must provide the address 
information before the Arrival at Unit (07) Event Scan and non-USPS 
Ship customers at the time of mailing.
* * * * *

210 Commercial Mail Priority Mail Express

213 Prices and Eligibility

1.0 Prices and Fees

* * * * *

1.2 Determining Single-Piece Weight

    [Revise the first sentence of 1.2 to read as follows:]
    When determining single-piece weight, express all weights in 
decimal pounds rounded off to two decimal places (except mailers 
using USPS Ship). * * *

1.3 Commercial Prices

    Priority Mail Express commercial prices are less than Priority 
Mail Express retail prices (see Notice 123--Price List). These 
prices are available to:
* * * * *
    [Revise the text of item d to read as follows:]
    d. Customers who pay postage with a permit imprint using the 
USPS Ship system to document and pay postage (see 705.2.9).
* * * * *

214 Postage Payment and Documentation

* * * * *

1.0 Basic Standards for Postage Payment Options

* * * * *

1.2 Commercial Prices

    Commercial Priority Mail Express postage may be paid with:
* * * * *
    [Revise the text of item d to read as follows:]
    d. Permit imprint through the USPS Ship system under 705.2.9.
* * * * *

220 Commercial Mail Priority Mail

223 Prices and Eligibility

1.0 Prices and Fees

* * * * *

1.3 Cubic

1.3.1 Cubic Eligibility

* * * * *
    [Revise the second sentence of item b to read as follows:]
    b. Permit imprint customers. * * * Customers are required to use 
the USPS Ship program or submit an electronic postage statement with 
a computerized manifest under 705.2.0. * * *
* * * * *

1.7 Determining Single-Piece Weight

    [Revise the third and fourth sentence in 1.7 to read as 
follows:]
    * * * Except for mailers using USPS Ship, express all single-
piece weights in decimal pounds rounded off to two decimal places.

[[Page 31642]]

Mailers using USPS Ship may round off to four decimals, and USPS 
Ship will automatically round to the appropriate decimal place. * * 
*
* * * * *

240 Commercial Mail USPS Marketing Mail

243 Prices and Eligibility

1.0 Prices and Fees

* * * * *

1.4 Fees

1.4.1 Presort Mailing Fee

    [Revise the third sentence in 1.4.1 to read as follows:]
    * * * For mail manifested using the USPS Ship System under 
705.2.9, only one annual mailing fee, paid at the Post Office of 
account where the permit imprint account is held, is required 
regardless of the number of Post Offices of mailing. * * *
* * * * *

244 Postage Payment and Documentation

1.0 Basic Standards for Postage Payment

    [Revise the third sentence in 1.0 to read as follows:]
    * * * Mail manifested using the USPS Ship system under 705.2.9 
must be paid with a permit imprint. * * *
* * * * *

250 Commercial Mail Parcel Select

253 Prices and Eligibility

1.0 Prices and Fees

* * * * *

1.3 Computing Postage

1.3.1 Determining Single-Piece Weight

    [Revise the third and fourth sentence in 1.3.1 to read as 
follows:]
    * * * Except for mailers using the USPS Ship system or preparing 
Parcel Select lightweight mailings, when determining single-piece 
weight for Parcel Select mailpieces, express all weights in decimal 
pounds rounded off to two decimal places. Mailers using USPS Ship 
may round off to four decimals, and USPS Ship will automatically 
round to the appropriate decimal place. * * *
* * * * *

254 Postage Payment and Documentation

1.0 Basic Standards for Postage Payment

1.1 Postage Payment Options

1.1.1 Parcel Select Destination Entry

    Parcel Select destination entry postage may be paid as follows:
* * * * *
    [Revise the first and second sentence of item c to read as 
follows:]
    c. Except for plant-verified drop shipments (see 705.17.0), USPS 
Ship shipments (see 705.2.9), and metered mail drop shipments (see 
705.19.0), the mailer must have a meter license or permit imprint 
authorization at the destination facility parent Post Office for 
mailings deposited for entry at a DNDC/DRP&DC or ASF/RP&DC, at a 
DSCF/DRP&DC, or at the parent Post Office of a DDU or DS&DC. Except 
for manifested mail using USPS Ship under 705.2.9, postage and fees 
are paid to the Post Office that verifies the mailings. * * *
* * * * *

2.0 Mailing Documentation

2.1 Completing Postage Statements

    [Revise the first sentence in 2.1 to read as follows:]
    All metered and permit imprint mailings of 50 pieces or more, 
except manifested mail using USPS Ship under 705.2.9, must be 
accompanied by a postage statement completed and signed by the 
mailer (in duplicate if the mailer wants a receipted copy). * * *
* * * * *

256 Enter and Deposit

* * * * *

2.0 Deposit

* * * * *

2.5 Mail Separation and Presentation of Destination Entry Mailings

    [Revise the second and third sentence in 2.5 to read as 
follows:]
    * * * Mailers may deposit only PVDS and USPS Ship mailings at a 
destination delivery unit not co-located with a Post Office or other 
Postal Service facility with a business mail entry unit. If 
authorized under 705.7.0, mailers may commingle Parcel Select with 
other approved parcel mail using USPS Ship. * * * Mailers presenting 
destination entry mailings to the Postal Service must meet the 
following requirements:
    [Revise the last sentence of item a to read as follows:]
    a. * * * If USPS Ship is used, include the marking ``USPS Ship'' 
on each piece as described in 604.5.0.
* * * * *
    [Revise the last sentence of items c and d to read as follows:]
    c. * * * USPS Ship mailings do not require these forms.
    d. * * * For PVDS mailings and USPS Ship mailings, separate 
mailings for deposit at different destination Postal Service 
facilities.
* * * * *

260 Commercial Mail Bound Printed Matter

263 Prices and Eligibility

1.0 Prices and Fees

* * * * *

1.2 Presorted and Carrier Route Bound Printed Matter

* * * * *

1.2.5 Destination Entry Mailing Fee

    [Revise the second sentence of 1.2.5 to read as follows:]
    * * * For BPM Flats destination entry mail manifested using USPS 
Ship under 705.2.9, only one annual BPM Flats destination entry 
mailing fee, paid at the Post Office where the USPS Ship permit 
imprint account is held, is required regardless of the number of 
Postal Service facilities where mailings are verified. * * *
* * * * *

265 Mail Preparation

* * * * *

8.0 Preparing Presorted Parcels

* * * * *

8.2 Preparing Irregular Parcels Weighing Less Than 10 Pounds

8.2.1 Required Bundling

    * * * Each physical bundle must contain at least two addressed 
pieces (except mixed ADC/RP&DC bundles). Bundling also is subject to 
these conditions:
* * * * *
    [Revise the text of item c to read as follows:]
    c. Mailers must note on the postage statement whether they 
applied the piece count, weight, or both, except for USPS Ship 
mailings prepared under 705.2.9.
* * * * *

8.2.3 Required Sacking

    * * * Sacking also is subject to these conditions:
* * * * *
    [Revise the text of item c to read as follows:]
    c. Mailers must note on the postage statement whether they 
applied the piece count or weight except for USPS Ship mailings 
prepared under 705.2.9.
* * * * *

8.4 Preparing Machinable Parcels Not Claiming DNDC Prices

8.4.1 Required Sacking

    * * * Sacking also is subject to these conditions:
* * * * *
    [Revise the text of item c to read as follows:]
    c. Mailers must note on the postage statement whether they 
applied the piece count or weight except for USPS Ship mailings 
prepared under 705.2.9.
* * * * *

8.5 Preparing Machinable Parcels Claiming DNDC Prices

8.5.1 Required Sacking

    * * * Sacking also is subject to these conditions:
* * * * *
    [Revise the text of item c to read as follows:]
    c. Mailers must note on the postage statement whether they 
applied the piece count or weight except for USPS Ship mailings 
prepared under 705.2.9.
* * * * *

266 Enter and Deposit

* * * * *

3.0 Destination Entry

* * * * *

[[Page 31643]]

3.2 Minimum Volume

    A destination entry price BPM mailing is subject to these 
minimum volume requirements:
* * * * *
    [Revise the first sentence of item f to read as follows:]
    f. When Bound Printed Matter presorted parcel mailings are 
presented together under the USPS Ship system, a mailer may use the 
total piece count for all line items to all destinations reported 
within the 24-hour mailing period defined in 705.2.9. * * *
* * * * *

270 Commercial Mail Media Mail and Library Mail

* * * * *

274 Postage Payment and Documentation

1.0 Basic Standards for Postage Payment

    [Revise the second sentence of 1.0 to read as follows:]
    * * * Mail manifested using USPS Ship under 705.2.9 must be paid 
with a permit imprint. * * *
* * * * *

275 Mail Preparation

* * * * *

6.0 Preparing Media Mail and Library Mail Parcels

* * * * *

6.2 Preparing Machinable Parcels

6.2.1 Required Sacking

    * * * Sacking also is subject to these conditions:
* * * * *
    [Revise the text of item c to read as follows:]
    c. Mailers must note on the postage statement which sacking 
method was used except for USPS Ship mailings prepared under 
705.2.9.
* * * * *

6.3 Preparing Irregular Parcels

6.3.1 Required Bundling

    * * * Bundling is also subject to these conditions:
* * * * *
    c. Mailers must note on the postage statement which sacking 
method was used except for USPS Ship mailings prepared under 
705.2.9.
* * * * *

6.3.3 Required Sacking

    * * * Sacking is also subject to these conditions:
* * * * *
    [Revise the text of item c to read as follows:]
    c. Mailers must note on the postage statement which sacking 
method was used except for USPS Ship mailings prepared under 
705.2.9.
* * * * *

276 Enter and Deposit

1.0 Verification and Deposit

    [Revise the first sentence of 1.0 to read as follows:]
    Except for USPS Ship shipments (see 705.2.9) or metered mail 
drop shipments (see 705.20.0), all presorted mailings must be 
presented for verification and acceptance at the Post Office where 
the permit or license is held. * * *
* * * * *

280 Commercial Mail USPS Ground Advantage--Commercial

* * * * *

284 Postage Payment and Documentation

* * * * *

2.0 Postage Payment for USPS Ground Advantage--Commercial

2.1 Permit Imprint Postage

    [Revise the second sentence of 2.1 to read as follows:]
    * * * All mail manifested using USPS Ship under 705.2.9 must be 
paid using a permit imprint. * * *
* * * * *

500 Additional Services

* * * * *

507 Mailer Services

* * * * *

3.0 Hold For Pickup

* * * * *

3.2 Basic Information

* * * * *

3.2.2 Basic Eligibility

    It is also available with commercial mailings of Priority Mail 
Express presented under 213.4.2 or 213.4.3, Priority Mail, USPS 
Ground Advantage--Commercial, Parcel Select Lightweight, and Bound 
Printed Matter parcels, when:
* * * * *
    [Revise the last sentence of item b to read as follows:]
    b. * * * If the pieces are not of identical weight, then either 
the exact postage must be affixed to each piece or postage must be 
paid with permit imprint using USPS Ship (705.2.9).
* * * * *

508 Recipient Services

* * * * *

7.0 Premium Forwarding Services

* * * * *

7.3 Premium Forwarding Service Commercial

* * * * *

7.3.3 Conditions

    * * * PFS-Commercial service is subject to these conditions:
* * * * *
    [Revise the text of item b to read as follows:]
    b. The annual enrollment fee and applicable Priority Mail 
Express or Priority Mail postage for each shipment container is paid 
using an USPS Ship account linked to the Enterprise Payment System 
(EPS).
* * * * *

600 Basic Standards for All Mailing Services

* * * * *

604 Postage Payment Methods and Refunds

* * * * *

5.0 Permit Imprint (Indicia)

5.1 General Standards

5.1.1 Definition

    [Revise the second sentence of 5.1.1 to read as follows:]
    * * * This payment method may be used for postage and extra 
service fees for Priority Mail Express (``USPS Ship'' only), 
Priority Mail, First-Class Mail, USPS Ground Advantage--Commercial, 
USPS Marketing Mail, Package Services, and Parcel Select mailpieces. 
* * *

5.1.2 Minimum Volume

    Permit imprint mailings must contain at least 200 pieces or 50 
pounds of mail, except:
* * * * *
    [Revise the first and second sentence of item g to read as 
follows:]
    g. A mailing containing 50 pieces or 50 pounds of nonpresorted 
single-piece domestic mail parcels submitted under the terms of an 
approved Manifest Mailing System (including USPS Ship) agreement 
under 705.2.0. Mailers may include any combination of the following 
products under this provision: Priority Mail Express (USPS Ship 
only), Priority Mail, USPS Ground Advantage--Commercial parcels, 
nonpresorted Bound Printed Matter parcels, and single-piece Media 
Mail and Library Mail parcels. * * *
* * * * *

5.1.5 Application Fee

    [Revise the first sentence of 5.1.5 to read as follows:]
    An application fee is required only when a permit imprint is 
used as the payment method for First-Class Mail, USPS Marketing 
Mail, Bound Printed Matter Flats and international mail, and the 
mailer does not use USPS Ship. * * *
* * * * *

5.3.6 Priority Mail Express, Priority Mail, First-Class Mail, and USPS 
Ground Advantage--Commercial Format

    A permit imprint indicia on Priority Mail Express, Priority 
Mail, First-Class Mail, or USPS Ground Advantage--Commercial 
mailpieces must be formatted as follows:
    [Revise the second sentence of item a to read as follows:]
    a. * * * If the USPS Ship program is used under 705.2.9, the 
marking ``USPS Ship'' must appear directly below the permit number. 
* * *
* * * * *

[[Page 31644]]

5.3.7 USPS Marketing Mail, Parcel Select and Package Services Format

    [Revise the second sentence of 5.3.7 to read as follows:]
    * * * If USPS Ship is used under 705.2.9, the marking ``USPS 
Ship'' must appear directly below the permit number. * * *
* * * * *

5.3.9 Use of a Company Permit Imprint

    [Revise the second and third sentence in the introductory text 
of 5.3.9 to read as follows:]
    * * * If a company permit imprint is used for USPS Ship under 
705.2.9, the marking ``USPS Ship'' is placed directly below the name 
on a separate line. As an option for USPS Ship mail only, ``Permit 
No.'' and the permit number used exclusively for USPS Ship may 
appear on a separate line between the company name and the marking 
``USPS Ship.'' * * *
* * * * *

608 Postal Information and Resources

* * * * *

7.0 Trademarks and Copyrights of the USPS

7.1 USPS Trademarks

    [Revise the list of trademarked items under 7.1 by deleting 
``eVS'' and ``e-VS'', and add USPS Ship alphabetically.]
* * * * *

609 Filing Indemnity Claims for Loss or Damage

1.0 General Filing Instructions

* * * * *

1.3 Who May File

    A claim may be filed by:
* * * * *
    [Revise the text of item e to read as follows:]
    e. Only the mailer, for insured or collect on delivery (COD) 
parcels paid using USPS Ship under 705.2.9.
* * * * *

3.0 Providing Evidence of Insurance and Value

3.1 Evidence of Insurance

    * * * Examples of acceptable evidence are:
* * * * *
    [Revise the introductory text of item d to read as follows:]
    d. For insured mail or COD mail paid using MMS or USPS Ship 
under 705.2.0, or for insured mail paid using an EPS account for 
USPS Returns service under 505.3.0, the mailer must use one of the 
following:
* * * * *

700 Special Standards

* * * * *

705 Advanced Preparation and Special Postage Payment Systems

* * * * *

2.0 Manifest Mailing System

2.1 Description

* * * * *

2.1.2 Eligible Mail

    [Revise the second sentence of 2.1.2 to read as follows:]
    * * * For Priority Mail Express (USPS Ship only) see 2.9. * * *
* * * * *

2.1.4 USPS Ship System

    [Revise the text of 2.1.4 to read as follows:]
    Mailers using a MMS when presenting Parcel Select destination 
entry mailings under 256.2.0 or commingled parcel mailings under 6.0 
or 7.0, may document and pay postage using USPS Ship (see 2.9). 
Business Acceptance Solutions, USPS Headquarters, must approve these 
systems. Unless authorized by Business Acceptance Solutions, mailers 
may not commingle USPS Ship mail with non-USPS Ship mail within the 
same mailing or place USPS Ship mail and non-USPS Ship mail in or on 
the same mailing container.
* * * * *

2.4 Authorization

2.4.1 Application

    The mailer must submit an MMS application and supporting 
documentation as specified on the application to the postmaster of 
each Post Office where mailings will be deposited and under the 
publications as follows:
* * * * *
    [Revise the text of item b to read as follows:]
    b. Publication 205, USPS Ship Technical Guide, provides the USPS 
Ship application procedures for mailers. Customers using an 
Electronic Manifesting Solution for Parcels must also establish a 
user account and mailer agreement with USPS in the Business Customer 
Gateway at https://gateway.usps.com.
* * * * *

2.4.3 General Requirements for Authorization

    General requirements for authorization are as follows:
* * * * *
    [Revise the introductory text of item c to read as follows:]
    c. For USPS Ship mailings prepared under 2.9, USPS charges USPS 
Ship mailers for postage due for any underpaid, unmanifested, or 
mis-shipped destination delivery unit (DDU) parcels at the end of 
the review period following the monthly mailing period as follows:
* * * * *
    [Revise the first sentence of item c2 to read as follows:]
    2. Unmanifested Parcels. USPS charges USPS Ship mailers for 
parcels not listed in the mailer`s manifest files but identified by 
USPS processing scans or acceptance and delivery scans as being 
mailed. * * *
    [Revise the first sentence of item c3 to read as follows:]
    3. Mis-Shipped DDU or DS&DC Parcels. USPS charges USPS Ship 
mailers the appropriate single-piece price less the original price 
paid for parcels identified by acceptance scans to be deposited at 
incorrect destination delivery units or sorting and delivery 
centers. * * *
* * * * *

2.4.5 Approval Authority

    Approval authority for manifest mailing systems is as follows:
* * * * *
    [Revise the text of item b to read as follows:]
    b. The director, Business Acceptance Solutions, USPS 
Headquarters, approves MMS that produce presorted First-Class Mail 
(except as noted in 2.4.5a) or USPS Marketing Mail mailings, Package 
Services or Parcel Select presort mailings, PVDS mailings, or USPS 
Ship mailings.
* * * * *
    [Revise the heading and text of 2.6 to read as follows:]

2.6 USPS Ship System

    The USPS Ship program is an electronic manifest mailing system 
that allows mailers to document and pay postage and extra services 
fees by transmitting electronic files to the Postal Service without 
generating paper manifests, postage statements, or clearance 
documents. Additional information on USPS Ship can be found online 
and in Publication 205, USPS Ship Business and Technical Guide, 
available on PostalPro at https://postalpro.usps.com.
* * * * *

7.0 Combining Package Services and Parcel Select Parcels for 
Destination Entry

7.1 Combining Parcels--DSCF/DRP&DC and DDU or DS&DC Entry

* * * * *

7.1.2 Basic Standards

    Package Services and Parcel Select parcels that qualify as 
machinable, nonmachinable, and irregular under 201 and meet the 
following conditions may be combined in 5-digit scheme and 5-digit 
sacks or 5-digit scheme and 5-digit pallets under these conditions:
* * * * *
    [Revise the second sentence of item b to read as follows:]
    b. * * * For mailings presented under 7.0, mailers may document 
and pay postage using USPS Ship under 2.9.
* * * * *

7.2 Combining Parcel Select and Package Services Machinable Parcels for 
DNDC/DRP&DC Entry

* * * * *

7.2.2 Basic Standards

    Parcel Select and Package Services parcels must meet the 
following conditions:
* * * * *
    [Revise the second sentence of item d to read as follows:]

[[Page 31645]]

    d. * * * For mailings presented under 7.0, mailers may document 
and pay postage using USPS Ship under 2.9.
* * * * *

8.0 Preparing Pallets

* * * * *

8.6 Pallet Labels

* * * * *

8.6.6 Line 3

    [Revise the third sentence of the introductory text of 8.6.6 to 
read as follows:]
    * * * Labels on containers of parcels prepared using USPS Ship 
under 2.9 must show ``USPS Ship'' either to the left of required 
line 3 information or directly below line 3 using the same size and 
lettering used for line 3. * * *
* * * * *

18.0 riority Mail Express Open and Distribute and Priority Mail Open 
and Distribute

18.1 Prices and Fees

* * * * *

18.1.6 Postage Statement for Enclosed Mail

    [Revise the text of 18.1.6 to read as follows:]
    The mailer must provide the correct postage statement for the 
enclosed mail unless prepared under USPS Ship. If the enclosed mail 
is zone-priced, the mailer must either provide documentation that 
details the pieces and postage, by zone for each Priority Mail 
Express Open and Distribute or Priority Mail Open and Distribute 
shipment destination or provide a separate postage statement for 
each Priority Mail Express Open and Distribute or Priority Mail Open 
and Distribute shipment destination. The mailer must always present 
the mailing to the designated USPS acceptance unit for verification 
of postage and fees. A postage statement is not required for the 
Priority Mail Express or Priority Mail portion of the Open and 
Distribute shipment, unless Priority Mail postage is paid by permit 
imprint not prepared under USPS Ship.
* * * * *

18.5 Preparation

* * * * *

18.5.3 Tags 257 and 267--Priority Mail Express Open and Distribute

    [Revise the second sentence of the introductory text of 18.5.3 
to read as follows:]
    * * * For mailings prepared under USPS Ship, use blue Tag 257-
EVS and yellow Tag 267-EVS. * * *
* * * * *

18.5.4 Tags 161 and 190--Priority Mail Open and Distribute

    [Revise the second sentence of the introductory text of 18.5.4 
to read as follows:]
    * * * For mailings prepared under USPS Ship, use green Tag 161-
EVS and pink Tag 190-EVS. * * *
* * * * *

18.5.7 Address Label Service Barcode Requirement

    [Revise the first sentence in the introductory text of 18.5.7 to 
read as follows:]
    An electronic service barcode must include USS 128 or 
Intelligent Mail package barcode (IMpb) (USPS Ship approved mailers) 
symbology for Priority Mail Express Open and Distribute, and the 
IMpb symbology for Priority Mail Open and Distribute in the address 
label. * * *
* * * * *

18.6 Enter and Deposit

* * * * *

18.6.3 Postmark and Signing Tags and Labels

    [Revise the text of 18.6.3 to read as follows:]
    Upon completion of the verification and acceptance of the 
contents, all Open and Distribute tags and labels must be postmarked 
and signed in the space provided unless prepared under an authorized 
USPS Ship manifest mailing system. Open and Distribute USPS Ship 
tags and labels bear the marking ``APPROVED USPS Ship MAILER'' in 
the space normally designated for the postmark and signature.
* * * * *

21.0 Optional Combined Parcel Mailings

21.1 Basic Standards for Combining Parcel Select, Package Services, and 
USPS Marketing Mail Parcels

* * * * *

21.1.2 Postage Payment

    [Revise the last sentence of 21.1.2 to read as follows:]
    * * * Mailers may document and pay postage using USPS Ship under 
2.9.
* * * * *

Index

* * * * *

E

* * * * *
    [Delete the ``Electronic Verification System (eVS), 705.2.9'' 
line item.
* * * * *

U

* * * * *
    [Alphabetically under ``U'' list the following:]

USPS Ship, 705.2.9

* * * * *

Colleen Hibbert-Kapler,
Attorney, Ethics and Legal Compliance.
[FR Doc. 2024-08814 Filed 4-24-24; 8:45 am]
BILLING CODE 7710-12-P