[Federal Register: August 29, 2000 (Volume 65, Number 168)] [Proposed Rules] [Page 52479-52528] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr29au00-42] [[Page 52479]] ----------------------------------------------------------------------- Part II Postal Service ----------------------------------------------------------------------- 39 CFR Part 111 Domestic Mail Manual to Implement Docket No. R2000-1, Proposed Changes; Proposed Rule [[Page 52480]] ----------------------------------------------------------------------- POSTAL SERVICE 39 CFR Part 111 Proposed Changes to the Domestic Mail Manual to Implement Docket No. R2000-1 AGENCY: Postal Service. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: On January 12, 2000, the United States Postal Service, in conformance with sections 3622 and 3623 of the Postal Reorganization Act (39 U.S.C. 101 et seq.), filed a request for a recommended decision by the Postal Rate Commission (PRC) on proposed rate, fee, and classification changes. The PRC designated this filing as Docket No. R2000-1. The PRC issued a notice of filing in Order No. 1279 on January 14, 2000. This proposed rule provides information on the implementing rules for the rate, fee, and classification changes that the Postal Service proposes to adopt if the PRC's recommended decision on R2000-1 is consistent with the Postal Service's request and if the Governors of the Postal Service, acting pursuant to 39 U.S.C. 3625, approve that recommended decision. DATES: Comments must be received on or before October 2, 2000. ADDRESSES: Mail or deliver written comments to the Manager, Mail Preparation and Standards, USPS Headquarters, 475 L'Enfant Plaza SW, Room 6800, Washington DC 20260-2405. Fax: 202-268-4336. Copies of all written comments will be available for inspection and photocopying between 9 a.m. and 4 p.m., Monday through Friday, at USPS Headquarters Library, 475 L'Enfant Plaza SW, 11th Floor N, Washington, DC. FOR FURTHER INFORMATION CONTACT: Karen Magazino, 202-268-3854 (for information on Express Mail, First-Class Mail, and Priority Mail); Joel Walker, 202-268-3340 (for information on Periodicals); Lynn Martin, 202-268-6351 (for information on Standard Mail); Paul Lettman, 202-268- 6261 (for information on Parcel Post, Media Mail, and Library Mail); Thomas DeVaughan, 202-268-4491, or Lynn Martin, 202-268-6351 (for information on Bound Printed Matter); Thomas DeVaughan, 202-268-4491, or Anne Emmerth, 202-268-2363 (for information on special services); Anne Emmerth, 202-268-2363 (for information on post office boxes); Carrie Bornitz, 202-268-6797 (for information on Signature Confirmation). General contact for all subjects is Lynn Martin, 202- 268-6351. SUPPLEMENTARY INFORMATION: The Postal Service's request in Docket No. R2000-1 includes major classification and rate structure changes and increases in most existing rate and fee categories. The proposed major classification changes and rate structure changes are as follows: (1) For Priority Mail, a separate price for pieces weighing 1 pound or less would be added. (2) For First-Class Mail automation flats, the current 3/5-digit presort rate would be replaced with a separate 5-digit rate and a separate 3-digit rate. (3) For Periodicals, based on an anticipated legislative change, the Regular, Nonprofit, and Classroom subclasses will be merged into a new ``Outside-County'' subclass. The preferred nature of Nonprofit and Classroom publications would be recognized by applying a 5% discount off of the total computation of Outside-County postage, except that the discount would not apply to postage for advertising pounds. Furthermore, the 5% discount would not apply to commingled nonsubscriber, nonrequester, complimentary, and sample copies in excess of the 10% allowance under Domestic Mail Classification Schedule (DMCS) sections 412.34 and 413.42, or to Science-of-Agriculture mail. (4) For Periodicals, physical restrictions would be added to specify that a mailpiece may not weigh more than 70 pounds or measure more than 108 inches in length and girth combined, and that additional size limitations may apply to pieces mailed at individual rate categories. (5) For Standard Mail (A), which would be renamed Standard Mail, a new barcoded discount would be available for machinable parcels that are subject to the residual shape surcharge and that are entered as Regular or Nonprofit subclass mail. (Mail entered at carrier route rates would not be eligible.) (6) For Standard Mail (A), which would be renamed Standard Mail, a separate residual shape surcharge would be added for Enhanced Carrier Route and Nonprofit Enhanced Carrier route pieces. This surcharge would be lower than the residual shape surcharge for Regular and Nonprofit mail. (7) For Standard Mail (A), which would be renamed Standard Mail, all automation letters would have a weight limit of 3.5 ounces. All other Standard Mail letters would be subject to a maximum weight limit of 3.3 ounces for minimum per-piece rates. (8) Standard Mail (B) would be renamed Package Services. Package Services would include Parcel Post, Bound Printed Matter, Media Mail (formerly Special Standard Mail), and Library Mail. (9) For Parcel Post, the minimum 16-ounce weight requirement would be removed. Pieces weighing less than 1 pound would be subject to the full, applicable rate for a piece weighing 2 pounds. (10) For Parcel Post, a nonmachinable surcharge would be added for intra-BMC/ASF rate mail and a separate nonmachinable surcharge would be added for destination bulk mail center (DBMC) rate mail. (11) For Bound Printed Matter (BPM), the minimum 16-ounce weight requirement would be removed. Presorted and Carrier Route rate pieces weighing less than 1 pound would be subject to the full, applicable rate for a piece weighing 1 pound and single-piece rate BPM pieces weighing less than 1 pound would be subject to the full, applicable rate for a piece weighing 1.5 pounds. (12) For all Bound Printed Matter, the separate local zone rate category would be removed. Mail for local zones would be subject to the same rates as mail for zones 1 and 2. (13) For Bound Printed Matter, three destination entry discounts would be added for mail entered at the destination bulk mail center (DBMC), destination sectional center facility (DSCF), and destination delivery unit (DDU). (14) Special Standard Mail would be renamed Media Mail. (15) For Bulk Parcel Return Service, mailers would be required to pay an annual accounting fee. (16) For Collect on Delivery (COD), the limit for collection would increase from $600 to $1,000. (17) For Delivery Confirmation, electronic option Delivery Confirmation would be extended to Standard Mail (formerly Standard Mail (A)) pieces that are subject to the residual shape surcharge. (18) For insurance, bulk insurance service would be extended to Standard Mail (formerly Standard Mail (A)) pieces that are subject to the residual shape surcharge. (19) For merchandise return service, the per-piece (transaction) fee for pieces returned to the permit holder would be removed, and permit holders would be required to pay an annual accounting fee. Senders (those who use MRS labels to return a parcel to the permit holder) would be permitted to add insurance to a MRS piece at their own discretion and expense. No other special services could be added by the sender. [[Page 52481]] (20) For meter service, the name of the service ``on-site meter settings'' would be changed to ``on-site meter service.'' The ``additional meters'' fee category would be replaced with a ``meter reset and/or examined'' fee category that would be applicable to each meter reset or examined, including the first meter. Secured postage meters would be exempt from the checking in/out fee. (21) For post office boxes, the box fee groups would be realigned to better match fees with the costs of providing post office box service. A nonrefundable fee would be added for replacing or duplicating post office box keys. A nonrefundable fee would be added for changing a post office box lock. (22) For business reply mail, a new ``high-volume'' fee category is added for Qualified Business Reply Mail (QBRM). The high-volume fee category would give permit holders the option of paying a quarterly fee (in addition to the annual accounting fee) and thereby qualify for a lower per piece charge. (23) For return receipt for merchandise, service would be extended to Standard Mail (formerly Standard Mail (A)) pieces that are subject to the residual shape surcharge. Return receipt for merchandise service also would be extended to unnumbered insured items. (24) For Shipper Paid Forwarding, an annual accounting fee would be added for mailers who choose to pay forwarding charges through an advance deposit account. (25) A new classification for Signature Confirmation service has been proposed. (26) For stamped envelopes, the current three categories of stamped envelopes would be realigned into two categories: household (basic) and special. Part A of this proposed rule summarizes the proposed revisions to the Domestic Mail Manual (DMM) necessary to implement R2000-1 by class of mail and special service category. Part B summarizes the proposed changes by DMM module and section. The actual proposed changes to the DMM follow at the end of this proposed rule. Comments are solicited on the implementing DMM standards that appear at the end of this proposed rule. As information, the DMM language in this proposed rule incorporates revisions to the DMM from four previously published Federal Register final rules that also will take effect on the date that coincides with implementation of the rates resulting from the R2000-1 rate case. These final rules are: 1. ``Sack Preparation Changes for Periodicals Nonletter-Size Pieces and Periodicals Prepared on Pallets'' published on July 28, 2000 (65 FR 46361). 2. ``Line-of-Travel Sequencing for Basic Carrier Route Periodicals'' published on July 28, 2000 (65 FR 46363). 3. ``Preparation Changes for Palletized Standard Mail (A) and Bound Printed Matter and for Standard Mail (A) and Standard Mail (B) Claimed at DBMC Rates'' published on August 8, 2000 (65 FR 48385). 4. ``Domestic Mail Manual Changes for Sacking and Palletizing Periodicals Nonletters and Standard Mail (A) Flats, for Traying First- Class Flats, and for Labeling Pallets'' published on August 16, 2000 (65 FR 50054). Accordingly, the numbering and the language of the DMM sections in this proposed rule have been synchronized with these final rules and may not match the numbering and language in current DMM Issue 55. Although proposed rates, rate categories, and rate structures are included in this language, they are outside the scope of this rulemaking process because they are still under review by the Postal Rate Commission. For example, comments on whether destination entry rates for Bound Printed Matter should be offered, or offered at a different rate, would not be appropriate. However, comments suggesting changes to the way the Postal Service implements standards for destination entry Bound Printed Matter would, however, be appropriate. Similarly, comments on the provisions contained in the four Federal Register notices listed above are outside the scope of this rulemaking because they have already been subject to the comment process and published as final rules. A. Summary of Proposed Changes by Class of Mail 1. Express Mail a. Express Mail Rate Highlights Overall, Express Mail rates are proposed to increase by an average of 3.8%. Moderate increases are proposed for all Express Mail rates, except for a $0.30 decrease in the 1/2-pound rates for Custom Designed Service and for Next Day and Second Day Post Office to Post Office Service. The fee for pickup service is proposed to increase from $8.25 to $10.25 per occurrence. The fee for delivery stops (Custom Designed Service only) is proposed to increase from $8.25 to $10.25. The fee for every $100 increment of additional insurance desired above the standard $500 of coverage would increase from $0.95 to $1.00. b. Express Mail Rate Structure There are no proposed changes to the rate structure of Express Mail. c. Express Mail Preparation Changes There are no proposed changes to mail preparation requirements for Express Mail. 2. Priority Mail a. Priority Mail Rate Highlights Overall, Priority Mail rates are proposed to increase by an average of 15%. The fee for pickup service is proposed to increase from $8.25 to $10.25 per occurrence. b. Priority Mail Rate Structure (1) One Pound or Less Priority Mail Rate A unique Priority Mail rate is proposed for pieces weighing 1 pound or less. Currently all Priority Mail pieces weighing 2 pounds or less pay the same rate. The proposed 1-pound Priority Mail rate is $0.35 more than the proposed First-Class Mail rate ($3.10) for a 13-ounce piece. Mail that is placed in a Priority Mail flat-rate envelope will continue to be charged the 2-pound rate even if the actual weight is 1 pound or less. (2) Keys and Identification Devices It is proposed that keys and identification devices that weigh more than 13 ounces but not more than 1 pound will be eligible for the new 1-pound Priority Mail rate plus the fee. The fee for keys and identification devices is proposed to increase from $0.30 to $0.35. c. Priority Mail Preparation Changes There are no proposed changes to mail preparation requirements for Priority Mail. 3. First-Class Mail a. First-Class Mail Rate Highlights Overall, First-Class Mail rates are proposed to increase by an average of 3.6%. It is proposed that the single-piece first-ounce letter rate be increased by only one cent, from $0.33 to $0.34, and that the rate for additional ounces increases by only one cent from $0.22 to $0.23. The Postal Service also is proposing a $0.01 increase in the single-piece card rate from $0.20 to $0.21. It is proposed that the first-ounce letter rate for Qualified Business Reply Mail (QBRM) increase from $0.30 to $0.31, and that the card rate for QBRM remain the same at $0.18. [[Page 52482]] The nonstandard surcharge for single-piece rate mail weighing one ounce or less would remain the same at $0.11. The nonstandard surcharge for Presorted rate and Automation rate pieces would remain the same at $0.05. Small increases are proposed for Automation and Presorted rates. The Postal Service proposes a $0.01 increase in the basic automation flat rate, from $0.30 to $0.31. The combined 3/5-digit rate category for automation flats would be eliminated. It is proposed that new and separate automated rate categories for 3-digit automation flats and for 5-digit automation flats be implemented. The annual presort mailing fee is proposed to increase from $100 to $125. b. First-Class Mail Rate Structure It is proposed to split the current automation flats 3/5-digit rate into two separate rates: a 5-digit automation rate and a 3-digit automation rate. c. First-Class Mail Preparation Changes (1) Automation Flats (DMM M011, M030, M033, M820, M910) The Postal Service is proposing to change the standards for preparation of 5-digit packages and 5-digit trays of automation flats under DMM 820 from required levels of sortation to optional levels of sortation. This is supported by the new rate structure that provides separate 5-digit and 3-digit rates for automation flats. All other current mail preparation requirements would remain the same. It is also proposed to add a new tray-based presort option for automation flats. When using this option, mailers would not need to prepare automation flats in 5-digit, 3-digit, ADC and mixed ADC packages. Instead, mailers would prepare flat trays to 5-digit (optional), 3-digit, ADC, and mixed ADC destinations whenever there were 90 or more pieces to a presort destination. Ninety is the average number of pieces that fills a flat tray up to the bottom of the handholds when at least a single stack of mail is lying flat on the bottom of the tray. When there are 90 or more pieces for a presort destination, mailers would be required to physically fill flat tray(s) for that destination and would be allowed one less-than-full tray or one overflow tray per presort destination. Preparation of 5-digit trays also would be optional under this tray-based preparation option. Rates would be based on the sortation level of the tray to which a piece is sorted. If this proposal is adopted, mailers choosing to prepare their mail using this option would not be eligible to prepare their mail as outlined in new M910 which will also go into effect when the rates resulting from the R2000-1 rate case are implemented. (M910 will permit co-traying of packages from automation rate mailings and packages from Presorted rate mailings that are part of the same mailing job and meet other criteria.) (2) Tray Containers (DMM M033) For clarification, it is proposed to add information to M033.1.2 to show that the lids required to be placed on First-Class Mail flat trays must be placed on the tray green side up prior to strapping under M033.1.5b. 4. Periodicals a. Periodicals Rate Highlights The average increase for Periodicals in the current proposal is 12.6%. Outside-County Periodicals would have an average increase of 12.7% while Within-County Periodicals would have an average increase of 8.6%. However, as the result of a joint effort by the Postal Service and the Periodicals industry, further cost savings were identified that have the potential to reduce the proposed increases. The proposed rates assume that the Revenue Forgone Reform Act (RFRA) is amended. It is proposed to combine two of the preferred subclasses (Nonprofit and Classroom) with the Regular subclass to form an Outside- County subclass with one set of rates. Nonprofit and Classroom publications would receive a 5% discount on total Outside-County postage, excluding the postage for advertising pounds. The Within- County subclass would remain a separate subclass with a separate set of rates. It is proposed that the nonadvertising percentage per-piece discount, the delivery unit (Outside-County and In-county) per-piece discounts, and the SCF per-piece discount will increase. The Outside- County, Science-of-Agriculture, and In-County pound rates will increase along with all per-piece rates for both subclasses (Outside-County and Within County). See DMM R200 for individual proposed rates and discounts. It is proposed that the fee for original entry would increase from $305 to $350. The re-entry and newsagents fees will decrease from $50 to $40. b. Periodicals Rate Structure Regular, Nonprofit, and Classroom publications would use the same rate schedule. Nonprofit and Classroom publications would receive a 5% discount on total Outside-County postage, excluding the postage for advertising pounds. The 5% discount does not apply to commingled nonsubscriber copies in excess of the 10% allowance provided under DMM E215. In-County rates would remain a separate rate schedule. c. Periodicals Mail Preparation Changes (1) Bundles on Pallets The current DMM describes a ``bundle'' as a group of packages secured together as a unit that equates to a sack. The current DMM provides both for preparation of packages on pallets under DMM M045.2.0 and for preparation of bundles on pallets under DMM M045.3.0. The Postal Service is not aware of any mailers that currently opt to prepare bundles on pallets. Accordingly, the Postal Service is proposing to delete the option to prepare bundles on pallets under current DMM M045.3.0. The provisions for preparing packages on pallets would remain in DMM M045.2.0. (2) Previous Rulemakings Mailers are reminded that three final rule Federal Register notices have previously been published that set forth required and optional preparation requirements for Periodicals that also will be effective on the date that the rates resulting from the R2000-1 rate case are implemented. These are: (1) ``Sack Preparation Changes for Periodicals Nonletter-Size Pieces and Periodicals Prepared on Pallets'' published on July 28, 2000 (65 FR 46361), (2) ``Line-of-Travel Sequencing for Basic Carrier Route Periodicals'' published on July 28, 2000 (65 FR 46363), and (3) ``Domestic Mail Manual Changes for Sacking and Palletizing Periodicals Nonletters and Standard Mail (A) Flats, for Traying First-Class Flats, and for Labeling Pallets'' published August 16, 2000 (65 FR 50054). 5. Standard Mail (Formerly Standard Mail (A)) a. Standard Mail Rate Highlights The overall average proposed rate increase is 7.7%. Regular rates are proposed to increase by an average of 9.4%. Rates for commercial Enhanced Carrier Route (ECR) mail are proposed to increase by an average of 4.9%. Rates for Nonprofit mail are proposed to increase by an average of 14.8%. Rates for Nonprofit Enhanced Carrier Route are proposed to increase by an average of 5.6%. The proposed rates for Nonprofit and Nonprofit Enhanced Carrier Route are based on anticipated changes to the Revenue Forgone Reform Act (RFRA). However, subsequent to the [[Page 52483]] filing of the Request (for rate increases), mailer associations and the Postal Service engaged in further discussions concerning nonprofit rates. Responsible committees in Congress have since drafted legislation that would change the RFRA. This legislation would provide that nonprofit rates be set so that the estimated average revenue per piece received by the Postal Service from each subclass of nonprofit Standard Mail would be equal, as nearly as practicable, to 60% of the estimated average revenue per piece to be received from the most closely corresponding commercial subclass of mail. If the Postal Service had followed the mechanism in the legislation introduced in Congress in developing its proposal, the Postal Service would have proposed an average rate increase of 4.8% for Nonprofit and 17.3% for Nonprofit Enhanced Carrier Route. Increased discounts are proposed for destination entry rate mail (DBMC, DSCF, and DDU). The annual presort mailing fee would increase from $100 to $125. b. Standard Mail Rate Structure It is proposed that automation letter mail would be subject to a weight limit of 3.5 ounces (.2188 pound). All other Standard Mail letters and non-letters would be subject to a weight limit of 3.3 ounces (.2063 pound) for the minimum per-piece charge. A new barcoded discount of $0.03 is proposed for Standard Mail machinable parcels that are subject to the residual shape surcharge and that meet other preparation requirements. This discount would be available only for the Regular and Nonprofit Standard Mail subclasses (it would not be available for pieces mailed at the Enhanced Carrier Route and Nonprofit Enhanced Carrier Route subclasses). Two different residual shape surcharges are proposed. Enhanced Carrier Route and Nonprofit Enhanced Carrier Route mail would have a residual shape surcharge of $0.15, and Regular and Nonprofit mail would have a residual shape surcharge of $0.18. It is proposed to allow use of return receipt for merchandise, bulk insurance, and electronic option Delivery Confirmation with Standard Mail parcels that are subject to the residual shape surcharge. c. Standard Mail Preparation Changes (1) Name Change and DMM Restructuring The Postal Service proposes to change the name of this mail class from ``Standard Mail (A)'' to ``Standard Mail.'' Throughout this proposed rule, ``Standard Mail'' is used consistently in the DMM text to indicate the class formerly known as ``Standard Mail (A).'' For brevity, not all sections that had only name changes were reproduced in this final rule. This change will, however, be implemented throughout all of DMM Issue 56, which will transmit the final implementing rules for R2000-1. DMM sections C600, D600, E600, P600, and R600 would contain standards for only Standard Mail. Matter in these sections that contain standards for Package Services mail would be moved into new sections under C700, D700, E700, P700, and R700, respectively. (Former P700, that contains information on special postage payment systems, would be renumbered as P900.) Matter pertaining only to Standard Mail in former E611 and E612 has been consolidated and reorganized into new E610. E620 and E630 have been reorganized so that E620 pertains to Presorted rate Standard Mail and E630 pertains to Enhanced Carrier Route Standard Mail. (2) Sack and Pallet Labels (DMM M031, M032, M045, M600) Currently, the contents line of sack and pallet labels for irregular parcel and machinable parcel mailings must show ``STD A'' or ``STD B'' as applicable for the class being mailed. Because of the name changes of ``Standard Mail (A)'' to ``Standard Mail'' and of ``Standard Mail (B)'' to ``Package Services,'' the use of ``STD A'' on ``Standard Mail'' sack and pallet labels for irregular parcel and machinable parcel mailings would be changed to ``STD'' (Package Services labels would use ``PSVC''). (3) Weight Limit for Automation Letters (DMM C810) The maximum weight for heavy letters that may qualify for automation letter rates would be increased to 3.5 ounces (.2188 pound). Pieces of automation heavy letters weighing over 3 ounces up to 3.5 ounces would be required to meet the additional preparation requirements currently in effect for heavy letters in DMM C810 and C840. Because it is proposed that automation letters have a weight limit of 3.5 ounces (.2188 pound) and other mail be subject to a maximum of 3.3 ounces (.2063 pound) for the minimum per-piece rates, some mailers could enter a mailing job that consists of an automation letters mailing weighing over 3.3 ounces (.2063 pound) for which the pieces would be subject to the automation minimum per-piece rates and a mailing(s) of Enhanced Carrier Route and/or Presorted rate mail for which the pieces would be subject to the piece/pound rates. Such mailing jobs may continue to be reported on the same postage statement. (4) Dimensions for Machinable Parcels (DMM C050) The minimum dimensions for a machinable parcel in DMM C050.4.1a would change to not less than 6 inches long, 3 inches high, \1/4\ inch thick, and 6 ounces in weight. (A mailpiece exactly \1/4\ inch thick would be subject to the 3\1/2\-inch height minimum under C010.) The current minimum weight is 8 ounces unless certain other conditions are met. Some parcels may be successfully processed on BMC parcel sorters although they do not conform to the machinability standards in DMM C050.4.1. If this is the case, a BMC plant manager may authorize a mailer to enter such parcels as machinable parcels if the parcels are tested on BMC parcel sorters and prove to be machinable. Such an authorization will only apply to mail that is both entered at a post office within the service area of the authorizing BMC area and is for delivery to an address within the service area of that BMC. These changes also would apply to Package Services mail. (5) Preparation of Bundles The current DMM describes a ``bundle'' as a group of packages secured together as a unit that equates to a sack. The current DMM provides both for preparation of packages on pallets under DMM M045.2.0 and for preparation of bundles on pallets under DMM M045.3.0. The Postal Service is not aware of any mailers that currently opt to prepare bundles on pallets. Accordingly, the Postal Service is proposing to delete the option to prepare bundles on pallets under current DMM M045.3.0. The provisions for preparing packages on pallets would remain in DMM M045.2.0. The current DMM also provides for preparation of bedloaded bundles of Presorted and carrier route rate mail under DMM M610.6.0 and M620.6.0, respectively. Such preparation requires Rates and Classification Service Center (RCSC) authorization. The records of the Postal Service currently indicate that there are no mailers authorized to prepare bedloaded bundles in the manner described in the DMM. Because of this, and because bedloaded bundles are generally not cost- efficient for the Postal Service to handle and process, the Postal Service is proposing to delete the options to prepare bedloaded [[Page 52484]] bundles under DMM M610.6.0 and M620.6.0. (6) Machinable Parcel Barcoded Discount (DMM C850, E610, E620, P600) The new machinable parcel barcoded discount of $0.03 would apply to machinable parcels (as defined in DMM C050) for which the residual shape surcharge (RSS) is paid and that bear a correct, readable 5-digit barcode under C850 for the ZIP Code shown in the delivery address and are prepared as machinable parcels under M045 or M610. Machinable parcels prepared in 5-digit sacks or on 5-digit pallets entered at DSCF rates may qualify for the barcoded discount even though such pieces will not be processed using BMC barcode scanning equipment. Otherwise, rates for 5-digit sorted machinable parcels entered at DSCF rates could be higher than for BMC sorted machinable parcels that were entered at DBMC rates and which also qualified for the barcoded discount. Machinable parcels entered at DBMC rates may claim the machinable parcel barcoded discount only if they are not entered at an ASF. An exception is that properly prepared machinable pieces of DBMC rate mail entered at the Phoenix, Arizona, ASF may claim the barcoded discount because that facility uses barcode scanning equipment. The machinable parcel barcoded discount is not available for pieces mailed at the Enhanced Carrier Route or Nonprofit Enhanced Carrier Route subclasses. If all pieces in a mailing are eligible for the machinable parcel barcoded discount under E610 and E620, then the mailing may be paid with meter stamps, permit imprint, or precanceled stamps under the applicable standards. If fewer than 100 percent of the pieces in the mailing are eligible for the machinable parcel barcoded discount, then payment with precanceled stamps would not be permitted; metered postage would be permissible for use only if exact postage was affixed to each piece in the mailing; and use of permit imprints would be permitted only under a manifest mailing system (P910). (7) Special Services with Standard Mail (DMM E610, P600) It is proposed that Standard Mail that is subject to the residual shape surcharge (pieces prepared as parcels or that are not letter-size or flat-size as defined in DMM C050) may receive the following additional special services upon payment of the appropriate fees: bulk insurance, return receipt for merchandise, and electronic option Delivery Confirmation. Other Standard Mail would not be eligible for any special services. Mail prepared with detached address labels under A060 and mail using Bulk Parcel Return Service (BPRS) also would not be eligible for any special services. Mailpieces for which one or more of these special services are requested would be required to bear a return address under A010 and would be required to bear an ancillary service endorsement that results in return of the mailpiece to the sender if undeliverable as addressed (Address Service Requested, Forwarding Service Requested, or Return Service Requested). Mailings for which bulk insurance is requested would be required to pay postage and fees through a manifest mailing system (P910). For electronic option Delivery Confirmation, the following postage payment requirements would apply. If electronic option Delivery Confirmation is requested for all the pieces in the mailing and the mailing consists of pieces of identical weight, then postage may be paid with metered postage or permit imprints under the existing standards in P600.2.0 and P600.3.0 (as restructured in this proposed rule). However, if Delivery Confirmation is not requested for all pieces in the mailing, or if the pieces are not identical weight, then either the exact metered postage must be affixed to each piece or a manifest mailing system must be used for permit imprint mail under P910. Precanceled stamps may not be used for postage payment on pieces with Delivery Confirmation (see current DMM S918.1.5). It is proposed that, if return receipt for merchandise is requested for all the pieces in the mailing and the mailing consists of pieces of identical weight, then postage must be paid with metered postage or permit imprints under the applicable standards in DMM P600.2.0 and P600.3.0. If return receipt for merchandise is not requested for all of the pieces in the mailing, or if the pieces are not identical weight, then either the exact metered postage must be affixed to each piece, or a manifest mailing system must be used for permit imprint mail under P910. Precanceled stamps would not be permitted for use with return receipt for merchandise. 6. Package Services (formerly Standard Mail (B))--General a. Name Change and DMM Restructuring The Postal Service proposes to change the name of this mail class from ``Standard Mail (B)'' to ``Package Services.'' Package Services would include Parcel Post, Bound Printed Matter, Media Mail (formerly Special Standard Mail) and Library Mail. The standards in current DMM sections C600, D600, E600, P600, and R600 that pertain to Package Services mail would be moved into new sections under DMM C700, D700, E700, P700, and R700. Former P700, which contains information on special postage payment systems would be renumbered as P900. The standards for Package Services mail contained in current DMM E611 and E613 have been consolidated and reorganized into new E710. Current DMM E630 and E650, which contain eligibility standards for Package Services would be moved into new DMM E700. The four subclasses of Package Services mail would each have their own eligibility sections: DMM E711 for Parcel Post; DMM E712 for Bound Printed Matter; DMM E713 for Media Mail (formerly Special Standard Mail); and DMM E714 for Library Mail. Information pertaining to eligibility of Package Services for destination entry rates would be moved to DMM E750. Current DMM M630 would be moved and reorganized into new DMM M710 for Parcel Post, DMM M720 for Bound Printed Matter, DMM M730 for Media Mail, and DMM M740 for Library Mail. b. Combining Different Subclasses of Package Services to Qualify for DSCF and DDU Rates New provisions are added in DMM E753 that allow mailers to combine different subclasses of Package Services machinable and irregular parcels in the same 5-digit sack or on the same 5-digit pallet to qualify for DSCF and DDU rates. For sack preparation, 10 or more parcels of any combination of Package Services subclasses, except for mail at Carrier Route Bound Printed Matter rates, would be allowed to be placed in the same 5-digit sack and entered at destination SCFs or at destination delivery units. For pallet preparation, 5-digit pallets that contain either 50 pieces and 250 pounds or that contain at least 36 inches of Package Services parcels (any combination of subclasses, except mail at Carrier Route Bound Printed Matter rates) may be prepared and entered at destination SCFs or at destination delivery units. Any Parcel Post pieces and any Presorted Bound Printed Matter in such sacks or on such pallets would be eligible for the appropriate DSCF or DDU rate provided all other eligibility requirements for the applicable destination entry rate are met. Media Mail and Library Mail pieces would be subject to their respective single-piece or 5-digit rates [[Page 52485]] depending upon whether the 500-piece minimum quantity requirement for the 5-digit rates was met for each subclass. See E753 for a full description of the requirements and rate applicability. 7. Parcel Post a. Parcel Post Rate Highlights Parcel Post rates are proposed to increase by an average of 1.3%. It is proposed to increase the nonmachinable surcharge for Inter-BMC Parcel Post from $1.65 to $1.79 per parcel. The Parcel Post Origin BMC Presort and BMC Presort discounts would increase from $0.57 to $0.93 per piece and from $0.22 to $0.23 per piece, respectively. The barcoded discount for qualifying Parcel Post machinable parcels would remain at $0.03 per piece. The annual destination entry fee for Parcel Select is proposed to increase from $100 to $125. b. Parcel Post Rate Structure It is proposed that pieces weighing less than 16 ounces would be eligible for Parcel Post rates; however, there are no proposed rates for pieces less than 2 pounds. Therefore, if a piece weighs less than 2 pounds, it will be charged the rate that would apply to a 2-pound parcel. It is proposed to add a $0.40 nonmachinable surcharge for Intra-BMC Parcel Post and to add a $0.45 nonmachinable surcharge to DBMC Parcel Select. c. Parcel Post Mail Preparation Changes (1) Rate Markings (DMM M012 and M710) There are no proposed changes to the marking requirements for Parcel Post and Parcel Select. (2) Sack and Pallet Labels (DMM M031, M032, M045, M710) It is proposed to change the abbreviation ``STD'' or ``STD B'' on the contents line of sack and pallet labels for Parcel Post to ``PSVC'' (an abbreviation for Package Services). Labels for 5-digit sacks and pallets prepared to qualify for DSCF and DDU rates are further revised to add the processing category ``PARCELS'' to the contents line to read ``PSVC PARCELS 5D.'' For containers of combined Package Services parcels, line 2 also would read ``PSVC PARCELS 5D.'' (3) Dimensions for Machinable Parcels (DMM C050) The minimum dimensions for a machinable parcel in DMM C050.4.1a would change to not less than 6 inches long, 3 inches high, \1/4\ inch thick, and 6 ounces in weight. (A mailpiece exactly \1/4\ inch thick would be subject to the 3\1/2\-inch height minimum under C010.) The current minimum weight is 8 ounces unless certain other conditions are met. Some parcels may be successfully processed on BMC parcel sorters although they do not conform to the machinability standards in DMM C050.4.1. If this is the case, a BMC plant manager may authorize a mailer to enter such parcels as machinable parcels if the parcels are tested on BMC parcel sorters and prove to be machinable. Such an authorization only applies to mail that is both entered at a post office within the authorizing BMC's service area and is for delivery to an address within that BMC's service area. These changes also would apply to Standard mail. (4) Machinable Parcel Preparation Requirements (DMM M045 and M710) The rules for sacking and palletizing Parcel Post machinable parcels are clarified to point out that they are optional preparation methods for Parcel Post. In addition, the sacking rules are modified to delete the 1,000 cubic inch option for preparing sacks of machinable parcels. If Parcel Post mailers choose to sack under the machinable parcel preparation standards, sacks for a 5-digit, ASF, or BMC destination would have a minimum volume requirement of 10 pieces or 20 pounds. (5) Postage Payment (P700) P700 would be clarified to indicate that precanceled stamps must not be used for payment of any Parcel Post mail, including matter at single-piece rates. 8. Bound Printed Matter a. Bound Printed Matter Rate Highlights Bound Printed Matter (BPM) rates are proposed to increase by an average of 18.1%. New destination entry discounts for Presorted rate and Carrier Route rate mailings of Bound Printed Matter are being offered to encourage the deposit of mail at the destination BMC, SCF, or delivery unit. An annual destination entry mailing fee for mail entered at destination entry rates of $125 is proposed. The barcoded discount for qualifying Presorted Bound Printed Matter machinable parcels would remain at $0.03 per piece. b. Bound Printed Matter Rate Structure The local zone rate category would be eliminated for Bound Printed Matter. Destination entry rates are proposed for Presorted and Carrier Route Bound Printed Matter entered at destination BMCs, SCFs, and delivery units. To qualify for destination entry rates mailers would need to pay the annual destination entry mailing fee described above and meet the preparation requirements in DMM E752 that are summarized below. There are no destination entry rates for single-piece Bound Printed Matter. Another major change is that pieces weighing less than 16 ounces would be eligible for Bound Printed Matter rates; however, there are no proposed rates for pieces less than 1.5 pounds (for single piece) and 1 pound (for Presorted and Carrier Route). Therefore, single-piece Bound Printed Matter that weighs less than 1 pound will be charged the 1.5- pound rate and Presorted and Carrier Route Bound Printed Matter that weighs less than 1 pound will be charged the full 1-pound rate, plus the applicable per-piece charge. c. Bound Printed Matter Mail Preparation Changes (1) Rate Markings (DMM M012 and M720) Two changes are proposed to the current marking requirements for Bound Printed Matter. The first would give mailers the option to use the abbreviation ``BPM'' as the basic (sub-class) marking that must appear in the postage area on each piece. The second would be to prohibit use of the ``Presorted Standard'' (or ``PRSRT STD'') marking on Presorted and Carrier Route Bound Printed Matter after a 1-year grace period. Because of the renaming of Standard Mail (B) to Package Services, ``Standard'' and ``STD'' would no longer be applicable as a class of mail description for Bound Printed Matter. Mailers would have until January 1, 2002 to discontinue use of the ``Presorted Standard'' (or ``PRSRT STD'') marking. (2) Sack and Pallet Labels (DMM M031, M032, M045, M700) It is proposed to change the abbreviation ``STD'' or ``STD B'' on the contents line of sack and pallet labels for Bound Printed Matter to ``PSVC'' (an abbreviation for Package Services). (3) Address Matching Requirements for Presorted Bound Printed Matter (DMM E712) The Postal Service is proposing that all 5-digit ZIP Codes included in addresses on pieces claimed at Presorted Bound Printed Matter rates must be verified and corrected within 12 months before the mailing date using a USPS-approved method. The mailer must certify that this standard has been met when the mail is presented to the USPS. This standard applies to each [[Page 52486]] address individually, not to a specific list or mailing. See E712.3.1. (4) Dimensions for Machinable Parcels (DMM M050) The minimum dimensions for a machinable parcel in DMM C050.4.1a would change to not less than 6 inches long, 3 inches high, \1/4\ inch thick, and 6 ounces in weight. (A mailpiece exactly \1/4\ inch thick would be subject to the 3\1/2\-inch height minimum under C010.) The current minimum weight is 8 ounces unless certain other conditions are met. Some parcels may be successfully processed on BMC parcel sorters although they do not conform to the machinability standards in DMM C050.4.1. If this is the case, a BMC plant manager may authorize a mailer to enter such parcels as machinable parcels if the parcels are tested on BMC parcel sorters and prove to be machinable. Such an authorization only applies to mail that is both entered at a post office within the authorizing BMC's service area and is for delivery to an address within that BMC's service area. These changes also would apply to Standard mail. (5) Sortation for Sacked Presorted Bound Printed Matter (DMM M722) It is proposed to require all flats and all irregular parcels that weigh 10 pounds or less to be prepared in packages prior to sacking. Machinable parcels would still be placed directly in sacks without packaging, and irregular parcels weighing more than 10 pounds would be placed into sacks without packaging. The provision for preparing sacks to a particular presort destination based on a 1,000 cubic inch minimum criteria would be deleted. For flats prepared in sacks, mailers would be required to prepare packages whenever there are at least 10 pieces or 10 pounds of mail, whichever occurs first, for a presort destination (5-digit, 3-digit, ADC), with remaining pieces placed in mixed ADC packages. The maximum weight of any package would be 20 pounds, except that 5-digit packages placed in 5-digit sacks could weigh up to 40 pounds. This will allow packages prepared in other than 5-digit sacks to be processed on small parcel and bundle sorters (SPBSs). Each physical package would be required to contain at least 2 addressed pieces except for mixed ADC packages. These packages would be required to be placed in sacks whenever there were at least 20 pieces or 20 pounds, whichever occurs first, for a sack destination (5-digit, 3-digit, optional SCF, ADC), with remaining packages placed in mixed ADC sacks. For Presorted irregular parcels, mailers would be required to prepare the mail in packages if the individual pieces weighed 10 pounds or less. Packages would be prepared whenever there were at least 10 pieces or 10 pounds to a presort destination, whichever occurs first. The package destinations would be the same as for flat-size pieces (5- digit, 3-digit, ADC, and mixed ADC). Mixed ADC packages could contain fewer than 10 pieces or 10 pounds of mail. Sortation to ADCs would be made using DMM L004 instead of L603 and mixed ADC sacks would be labeled using DMM L004 instead of L604. The maximum weight of any package would be 20 pounds, except that 5-digit packages placed in 5- digit sacks could weigh up to 40 pounds. Each physical package would be required to contain at least 2 addressed pieces except for mixed ADC packages. These packages would be required to be placed in sacks whenever there were at least 10 pieces or 20 pounds, whichever occurs first, for a sack destination (5-digit, 3-digit, optional SCF, ADC), with remaining packages placed in mixed ADC sacks. Presorted irregular parcels that weigh over 10 pounds would not be packaged, but would be placed in 5-digit, 3-digit, optional SCF and ADC sacks whenever there were 10 or more pieces or 20 or more pounds, whichever occurs first, for a sack destination. Remaining pieces would be placed in mixed ADC sacks. Sortation to ADCs would be made using DMM L004 instead of L603 and mixed ADC sacks would be labeled using DMM L004 instead of L604. Irregular parcel-size pieces that weigh over 10 pounds would be required to be individually enveloped, placed in a full-length sleeve or wrapper, or be polywrapped. For machinable parcels, there would be no change in sortation other than eliminating the option to use 1,000 cubic inches as a minimum sacking criteria as described above. (6) Sortation for Sacked Carrier Route Bound Printed Matter (DMM M020, M723) For flat-size mail the basic eligibility requirement to qualify for carrier route rates of a minimum of 10 pieces/20 pounds/1,000 cubic inches of mail for the same carrier route would be changed to require a minimum of 10 pieces or 20 pounds of mail prepared in a package or packages for the same carrier route. In addition, the maximum weight of any flat-size package will be 40 pounds. Each physical package would be required to contain a minimum of two addressed pieces. The only exception to a minimum two-piece package is that the last physical package to an individual carrier route destination could contain less than the minimum package size and could consist of a single addressed piece provided that all other packages to that carrier route destination meet the minimum package size and contain at least two addressed pieces, and that the total group of pieces to that carrier route meets the Carrier Route rate eligibility minimum in E712. Packages of flat-sized mail would be sacked for an individual carrier route whenever there were at least 20 pieces or 20 pounds of mail for a carrier route. Remaining carrier route packages would be sacked in 5- digit carrier routes sacks or, at the mailer's option, be sacked to 5- digit scheme carrier routes sacks using L001. For irregular parcel-size mail the basic eligibility requirement of at least 10 pieces or 20 pounds of mail for the same carrier route would be retained. For Carrier Route irregular parcels, mailers would be required to prepare the mail in packages if the individual pieces weighed 10 pounds or less. Packages would be prepared whenever there were at least 10 pieces or 20 pounds of mail to an individual carrier route. The maximum weight of any package would be 40 pounds. Each physical package would be required to contain a minimum of two addressed pieces. The only exception to a minimum two-piece package is that the last physical package to an individual carrier route destination could contain less than the minimum package size and could consist of a single addressed piece provided that all other packages to that carrier route destination meet the minimum package size and contain at least two addressed pieces, and that the total group of pieces to that carrier route meets the Carrier Route rate eligibility minimum in E712. Carrier route packages of irregular parcels would be required to be placed in direct carrier route sacks when there were 10 or more pieces or 20 or more pounds to a carrier route. Carrier route packages that could not be placed in direct carrier route sacks would be placed in 5- digit carrier routes sacks. Preparation of 5-digit scheme carrier routes sacks for irregular parcels would not be permitted. For irregular parcels weighing over 10 pounds, the mail would not be prepared in packages, but would be placed only in direct carrier route sacks that each contained a minimum of 20 pounds of mail. Machinable parcels would be permitted to qualify for Carrier Route Bound Printed Matter rates if placed in [[Page 52487]] direct carrier route sacks that each contained a minimum of 10 pieces or 20 pounds of mail. (Machinable parcels prepared on pallets under M045 would not be eligible for Carrier Route Bound Printed Matter rates.) The provisions for marking and sortation of residual pieces that do not qualify for the Carrier Route Bound Printed Matter rates would change. Such pieces would no longer be sorted to carrier route and would no longer be permitted to bear the ``Carrier Route Presort'' marking. Such residual pieces would be required to be marked and sorted in accordance with the requirements for Presorted rate mailings and would continue to qualify for the Presorted rates (M723.1.5). (7) Preparation of Packages on Pallets (DMM M040 and M045) Flats prepared as packages on pallets would be permitted to be palletized using scheme sort (DMM L001). For flat-size pieces prepared in a copalletized mailing job that contains both a Presorted rate mailing and a Carrier Route rate mailing, it is proposed that separate 5-digit pallets must be prepared for carrier route mail (optional 5- digit scheme carrier routes and required 5-digit carrier routes pallets) and separate 5-digit pallets must be prepared for Presorted rate mail (optional 5-digit scheme and required 5-digit pallets). For irregular parcels prepared as packages on pallets, mailers would continue to co-palletized Carrier Route and Presorted mail on the same 5-digit pallet. Scheme sortation would not be permitted for packages of irregular parcels on pallets. For flats and irregular parcels, packages would be required to be made to a required package destination (carrier route, 5-digit, 3- digit, ADC) whenever there were 10 or more pieces or 10 or more pounds for a presort destination. ADC packages would be prepared using DMM L004 instead of L603. The maximum physical package size would be 20 pounds except as follows. For Presorted rate mail, 5-digit packages could weigh up to 40 pounds if placed on a 5-digit scheme (flats only) or 5-digit pallet. For Carrier Route rate mail, flat-size carrier route packages could weigh up to 40 pounds if they were placed on 5-digit scheme carrier routes, or 5-digit carrier routes pallets, and irregular parcel-size carrier route packages could weigh up to 40 pounds if they are placed on a 5-digit pallet. Each physical package would be required to contain at least 2 pieces. If individual pieces weigh more than 10 pounds and therefore could not meet both the 2-piece package minimum and the 20-pound package maximum, they could not be prepared as packages on pallets (except in those instances where 40-pound packages are permitted as described above). Such pieces that weigh over 10 pounds would be required to be prepared either as machinable parcels on pallets (eligible only for Presorted rates) or in sacks under M722 (Presorted rates) and/or M723 (Carrier Route rates). The new 20-pound package weight limit for flats and irregular parcels will allow the packages to be processed on small parcel and bundle sorters (SPBSs). (8) PAVE Certification and Package Reallocation This proposal does not include a requirement for the use of standardized documentation or PAVE-certified software for Bound Printed Matter. The Postal Service plans to develop PAVE tests for Bound Printed Matter subsequent to implementation of the R2000-1 rate case. At that time, standardized documentation requirements will be developed and a Federal Register proposed rule to require either standardized documentation or use of PAVE-certified software for Presorted and Carrier Route Bound Printed Matter will be published for comment. Because use of optional package reallocation to protect SCF and BMC pallets requires use of PAVE-certified software, use of package reallocation for Bound Printed Matter will not be offered as an option at the time the rates from the R2000-1 rate case are implemented. Use of package reallocation will be offered for Bound Printed Matter once use of PAVE-certified software becomes available. (9) Bedloaded Bundles (DMM M722, M723) The provisions for preparing bedloaded bundles in current DMM M630.7.0 would be removed. A ``bundle'' is described as a group of packages secured together as a unit that equates to a sack. The Postal Service does not believe that any mailers are currently preparing true bedloaded ``bundles,'' although some mailers do prepare bedloaded ``packages.'' The Postal Service is proposing preparation rules for Bound Printed Matter that are designed to reduce handling and processing costs. Bedloaded packages or bundles are generally not cost- efficient for the Postal Service to handle and process. Therefore the proposed sortation rules would eliminate preparation of bedloaded bundles, and would allow mailers to prepare bedloaded packages only for mail that is prepared for and entered at the DDU rates. Such bedloaded packages may weigh up to 40 pounds each. See M722 and M723. (10) Destination Bulk Mail Center (DBMC) Rates (DMM E752) Destination Bulk Mail Center (DBMC) rates apply to Presorted and Carrier Route Bound Printed Matter mailings that are prepared in any permissible sack or pallet level and that are deposited at a BMC or ASF, are addressed for delivery to one of the 3-digit ZIP Codes served by the BMC or ASF where deposited that are listed in Exhibit E751.5.0, and are placed in a sack or pallet that is labeled to the BMC or ASF where deposited, or labeled to a postal facility within the service area of that BMC or ASF under Exhibit E751.5.0. Flats or irregular parcels in an ADC sack or in a palletized ADC package would be eligible for the DBMC rates if the ADC facility ZIP Code (as shown in Line 1 of the corresponding sack label or the ADC facility that is the destination of the palletized ADC package as would be shown on an ADC sack label for that facility using DMM L004, Column B) is within the service area of the BMC or ASF at which the sack is deposited. Flats or irregular parcels in mixed ADC sacks would qualify for the DBMC rates only if all the pieces in the sack are for the service area of the DBMC or DASF as shown in Exhibit E751.5.0. Mailers who opt to claim the DBMC rates for mail in mixed ADC sacks would be required to prepare separate mixed ADC sacks for pieces eligible for and claimed at the DBMC rate and for pieces not claimed at the DBMC rate. Machinable parcels palletized under M045 or sacked under M722 could be sorted to destination BMCs under L601 or to destination BMCs and ASFs under L601 and L602. Sortation of machinable parcels to ASFs would be optional but would be required for mail with a 3-digit ZIP Code prefix within the ASF service area in Exhibit E751.5.0 to be eligible for DBMC rates. Mailers may opt to sort some or all machinable parcels for ASF service area ZIP Codes to ASFs only when the mail will be deposited at the respective ASFs where the DBMC rates are claimed, under applicable volume standards, using L602. Mailers may also opt to sort machinable parcels only to destination BMCs under L601. If machinable parcels are sorted to only destination BMCs under L601, then only mail for 3-digit ZIP Codes served by a BMC as listed in Exhibit E751.5.0 would be eligible for DBMC rates (mail for 3-digit ZIP Codes served by an ASF in Exhibit E751.5.0 sorted to the BMC [[Page 52488]] pallet would not eligible for DBMC rates, nor would mail for 3-digit ZIP Codes that do not appear in Exhibit E751.5.0). Machinable parcels in mixed BMC sacks or on mixed BMC pallets that are sorted to the origin BMC under M045 or M722 would be eligible for the DBMC rates if both of the following conditions are met: 1) the mixed BMC sack or pallet is entered at the origin BMC facility to which it is labeled, and 2) the pieces are for 3-digit ZIP Codes listed as eligible destination ZIP Codes for that BMC in Exhibit 5.1. (11) Destination Sectional Center Facility (DSCF) rates (DMM E752) Destination Sectional Center Facility (DSCF) rates would apply to Presorted and Carrier Route Bound Printed Matter mailings that meet all of the following conditions: (a) Are eligible for and prepared to qualify for Presorted, or Carrier Route rates. (b) Are deposited at an SCF listed in L005, except that machinable parcels prepared on pallets for the 5-digit ZIP Codes listed in Exhibit E751.6.0 must be entered at the corresponding BMC facility shown in that Exhibit (not at the SCF) unless an exception is requested and granted. An exception to Exhibit 751.6.0 must be requested at least 15 days in advance of the mailing in writing from the area manager of operations support who has jurisdiction over the BMC and SCF. Exceptions, if granted, will be for a limited time. (c) Are addressed for delivery to one of the 3-digit ZIP Codes served by the SCF where deposited under L005. (d) Are placed in a sack or on a pallet (subject to the standards for the rate claimed) that is labeled to the DSCF where deposited, or labeled to a postal facility within the service area of that SCF (see L005). Flats in sacks for the carrier route, 5-digit carrier routes scheme, 5-digit carrier routes, 5-digit, 3-digit, and optional SCF sort levels would be able to claim DSCF rates under the conditions described above. Flats on 5-digit scheme carrier routes, 5-digit carrier routes, 5-digit scheme, 5-digit, 3-digit, SCF, and ASF pallets would be able to claim DSCF rates under the conditions described above. Irregular parcels in sacks for the carrier route, 5-digit carrier routes, 5-digit, 3-digit, and optional SCF sort levels would be able to claim DSCF rates under the conditions described above. Irregular parcels on 5-digit, 3-digit, SCF, and ASF pallets would be able to claim DSCF rates under the conditions described above. Machinable parcels in direct carrier route sacks, in 5-digit sacks, or on 5-digit pallets would be able to claim DSCF rates under the conditions described above. Machinable parcels prepared to claim Carrier Route rates would be eligible for DSCF rates only when prepared in direct carrier route sacks (machinable parcels would qualify for Carrier Route rates only when prepared in direct carrier route sacks). Machinable parcels on 5-digit pallets would be able to claim DSCF rates under the conditions described above. Note that machinable parcels for the 5-digit ZIP Codes listed in Exhibit E751.6.0 would be required to be entered at the BMC to claim DSCF rates. (12) Destination Delivery Unit (DDU) Rates (DMM E752) Destination Delivery Unit (DDU) rates apply to Presorted and Carrier Route rate Bound Printed Matter mailings that are addressed for delivery within the ZIP Code(s) served by the destination delivery unit and are deposited at the appropriate destination delivery unit facility. For flat-size mail, DDU rates would be available only for mail prepared to qualify for Carrier Route Bound Printed Matter rates that is prepared in carrier route, optional 5-digit carrier routes scheme, and 5-digit carrier routes sacks; on 5-digit scheme carrier routes scheme and 5-digit carrier routes pallets; or in bedloaded carrier route packages. Flat-size mail must be entered at the facility where the carrier cases flat-size mail as shown in the Drop Ship Product. For irregular parcels, DDU rates would be available for carrier route packages and 5-digit packages prepared in direct carrier route, 5-digit carrier routes, and 5-digit sacks, or on 5-digit pallets. Irregular parcels prepared as bedloaded carrier route packages or bedloaded 5-digit packages also would be eligible for DDU rates. For machinable parcels, DDU rates would be available for Carrier Route rate parcels prepared in direct carrier route sacks and for Presorted rate parcels prepared in 5-digit sacks or on 5-digit pallets. To claim the DDU rates, both irregular and machinable parcels would be required to be entered at the facility that delivers parcels to the addresses appearing on the deposited pieces. Mailers would use the Drop Ship Product to determine the location of the 5-digit delivery facility and whether it can handle pallets. When the Drop Ship Product shows that parcels for a single 5-digit ZIP Code area is delivered out of more than one postal facility, then the facility from which the majority of city carrier routes are delivered would be used as the facility at which the DDU mail must be entered and to determine whether that facility can handle pallets, unless the 5-digit ZIP Code is listed in Exhibit E751.7.0 or Exhibit E751.8.0. For ZIP Codes in E751.7.0 and Exhibit E751.8.0, mailers would use the name of the facility associated with the 5-digit ZIP Code on the respective exhibit as the facility at which DDU mail for that 5-digit ZIP Code mail must be entered. (13) Destination Entry Mail Preparation--Plant-Verified Drop Shipment (PVDS) (DMM E752) Pieces would be required to be part of a mailing of at least 300 pieces of Presorted Bound Printed Matter or part of a mailing of at least 300 pieces of Carrier Route Bound Printed Matter to qualify for DBMC, DSCF, and DDU rates. When Presorted Bound Printed Matter or Carrier Route Bound Printed Matter mailings are submitted under PVDS procedures, mailers would be able to use the total of all line items for all destinations on a PVDS register or PVDS postage statement to meet the respective 300-piece minimum volume requirements. This means that a mailer may enter fewer than 300 pieces per Presorted or Carrier Route mailing at an individual destination, provided there is a total of at least 300 Presorted rate pieces and/or 300 Carrier Route rate pieces for all of the entry points for that single mailing job listed on the PVDS register or PVDS postage statement. (14) Detached Address Label Mailings (DMM A060) Currently, Bound Printed Matter may be prepared with detached address labels (DALs) only when for delivery in the local zone of the post office of mailing. The local zone rates are removed under this rate proposal. Accordingly, revised preparation requirements for use of DALs with Bound Printed Matter mailings are included in this proposal. Under the proposal, mailers would prepare Bound Printed Matter with DALs under either a pallet preparation option or a sacking preparation option. When prepared on pallets, mailers would be permitted to enter mail prepared with DALs at any post office where mail is verified provided only 5-digit pallets are prepared and if the following additional requirements and restrictions are met. The 5-digit pallets would be required to meet the minimum volume and other requirements for pallet preparation under M040 and M045, except that for flat-size mail, separate 5-digit pallets for Carrier Route rate and for Presorted rate mail would [[Page 52489]] not be required. The mail would not be permitted to be prepared on pallets when the Drop Ship Product indicates that the delivery unit that serves the 5-digit pallet destination cannot handle pallets. The destination delivery unit is determined using the Drop Ship Product under the provisions for the DDU rate in E752. (For delivery units that cannot handle pallets mail with DALs would be required to be prepared in sacks.) The trays or cartons of DALs would be required to be prepared under A060.3.0 and placed on the same pallet as the pieces and trays of DALs and the items would be required to be stretch-wrapped together as one unit. For mail prepared with DALs in sacks, the matter would be required to be prepared in 5-digit sacks and entered at the destination delivery unit. The destination delivery unit would be determined using the Drop Ship Product under the provisions for the DDU rate in DMM E752. The DALs would be required to be packaged under A060.3.0 and presented to the destination delivery unit with the accompanying items to be distributed with the DALs. (15) Ancillary Service Endorsements It is proposed that undeliverable-as-addressed (UAA) Bound Printed Matter pieces mailed with no special service (e.g., Delivery Confirmation, insured), and with no ancillary service endorsement, would be disposed of by the USPS as waste at the delivery unit. This would make the handling of undeliverable-as-addressed Bound Printed Matter pieces that are not mailed with a special service or an ancillary service endorsement the same as for Standard Mail. Mailers of Bound Printed Matter who want to have their undeliverable-as-addressed pieces forwarded and returned could continue to choose the appropriate ancillary service endorsement to obtain such service. No other changes to the treatment of undeliverable-as-addressed Package Services mail are proposed. (16) Postage Payment DMM P700 would be amended to clarify that precanceled stamps may not be used for payment of Bound Printed Matter. 9. Media Mail (Formerly Special Standard Mail) a. Media Mail Rate Highlights Media Mail (formerly Special Standard Mail) rates would increase by an average of 4.9%. The barcoded discount for qualifying Media Mail would remain at $0.03 per piece. Separate rate schedules would be implemented for Media Mail and Library Mail as the shared rate structure would be discontinued. It is proposed to increase the annual presort mailing fee for Media Mail to $125. b. Media Mail Rate Structure It is proposed to implement separate rate schedules for Media Mail and Library Mail. c. Media Mail (Formerly Special Standard Mail) Preparation Changes (1) Rate Marking (DMM M012 and M730) Special Standard Mail is being renamed ``Media Mail,'' and the marking that is required to appear on each piece would be changed from ``Special Standard'' to ``Media Mail.'' A phase-in period through January 1, 2002, is proposed in order to give mailers time to adjust to this change and deplete any existing stocks of permit imprints that may bear the `` Special Standard'' marking. (2) Sack and Pallet Labels (DMM M031, M045, and M730) The abbreviation ``STD'' or ``STD B'' that currently appears on sack and pallet labels for Package Services mailings would be changed to ``PSVC'' (an abbreviation for Package Services). (3) Clarification of Preparation Requirements Current M630.4.0 provides for preparing Media Mail as bedloaded bundles under current M630.7.0. However, current M630.7.0 provides only for preparation of Bound Printed Matter as bedloaded bundles, and the eligibility requirements for the Media Mail rates in current E630.4.0 provide only for preparation in sacks, on pallets, or as outside parcels prepared as prescribed by the postmaster of the mailing office. Accordingly, the provisions for preparing bedloaded bundles of Media Mail have been deleted from proposed new M730 that contains the requirements for presorted Media Mail. Current E630.4.0 (renumbered as E713) provides for preparing 5-digit and BMC bundles of Media Mail on pallets. The terminology in this section would be changed to provide for ``packages'' of Media Mail on pallets. Furthermore, the reference in current M630.4.0 (new M730) that refers to preparing mail according to the machinable parcel preparation rules has been deleted from proposed DMM M730. There are no provisions for such preparation to qualify for presorted Media Mail rates in proposed E713. The option to prepare sacks and qualify for presorted 5-digit or BMC rates based on a minimum of 1,000 cubic inches of mail would be deleted; however, the eight-piece or 20-pound minimum per 5-digit sortation level and the four-piece or 20 pound minimum per BMC sortation level would be retained. (4) Postage Payment (DMM P700) DMM P700 would be amended to clarify that precanceled stamps may not be used for payment of Media Mail. 10. Library Mail a. Library Mail Rate Highlights Library Mail rates would increase by an average of 4.5%. The barcoded discount for qualifying Library Mail would remain at $0.03 per piece. Separate rate schedules would be implemented for Media Mail and Library Mail as the shared rate structure would be discontinued. It is proposed to increase the annual presort mailing fee for Library Mail to $125. b. Library Mail Rate Structure It is proposed to implement separate rate schedules for Library Mail and Media Mail. c. Library Mail Preparation Changes (1) Rate Markings (DMM M012 and M740) The optional use of ``Library Rate'' as a rate marking for Library Mail would be discontinued. Matter mailed at Library Mail rates would be required to use only the marking ``Library Mail.'' A phase-in period through January 1, 2002, is proposed in order to give mailers time to adjust to this change and deplete any existing stocks of permit imprints that may bear the ``Library Rate'' marking. (2) Sack and Pallet Labels (DMM M031, M045, and M740) The abbreviation ``STD'' or ``STD B'' that currently appears on sack and pallet labels for Package Services mailings would be changed to ``PSVC'' (an abbreviation for Package Services). (3) Sack Preparation Minimums (DMM M740) The option to prepare sacks and qualify for presorted 5-digit or BMC rates based on a minimum of 1,000 cubic inches of mail would be deleted (see M740). (4) Postage Payment (DMM P700) DMM P700 would be amended to clarify that precanceled stamps may not be used for payment of Library Mail. [[Page 52490]] 11. Special Services and Other Services a. Address Changes for Election Boards (DMM A910) The fee is proposed to increase from $0.17 to $0.24 for each address card. There are no classification changes proposed for this service. See DMM R900.12.3. b. Address Correction Notifications (DMM F030) The manual (hard-copy) fee is proposed to increase from $0.50 to $0.60 for each notification. There is no proposed change to the automated (electronic) fee notification (currently $0.20 each). There are no classification changes proposed for this service. See DMM R900.1.0. c. Bulk Parcel Return Service (DMM S924) The per-piece charge is proposed to decrease from $1.75 to $1.65 for each piece returned under Bulk Parcel Return Service (BPRS). It is proposed that the annual BPRS permit fee increase from $100 to $125. It is proposed to establish a new annual accounting fee of $375 for BPRS. This fee covers the costs of providing account maintenance services to mailers and is consistent with accounting fees charged for other special services. Current BPRS permit holders would have 30 days from the date of implementation of this classification change to pay their initial annual accounting fee. See DMM R900.3.0. No special services would be available for pieces returned through BPRS. d. Business Reply Mail (1) Business Reply Mail (BRM) (DMM S922) It is proposed to increase the annual business reply mail (BRM) permit fee from $100 to $125. The per-piece charge for low-volume BRM (BRM without an annual accounting fee) is proposed to increase from $0.30 to $0.35. This per- piece charge is in addition to single-piece First-Class Mail (or Priority Mail) postage. The per-piece charge for high-volume BRM (BRM with an annual accounting fee) is proposed to increase from $0.08 to $0.10. This per-piece charge is in addition to single-piece First-Class Mail (or Priority Mail) postage. It is proposed to increase the annual accounting fee, required for high-volume BRM, from $300 to $375. (2) Qualified Business Reply Mail (QBRM) (DMM E150, S922) The discounted automation rate for qualified business reply mail (QBRM) is proposed to increase from $0.30 to $0.31 as described under the First-Class Mail Summary. The annual accounting fee (required to participate in QBRM) is proposed to increase from $300 to $375. It also is proposed to split QBRM into two categories with different per-piece charges to mirror the current fee structure of BRM. The first category is the existing classification and will be called ``low-volume'' QBRM. The per-piece charge for low-volume QBRM is proposed to increase from $0.05 to $0.06. This per-piece charge is in addition to the lower QBRM First-Class Mail postage listed in R100. The proposed new classification, called ``high-volume QBRM,'' recognizes that, for large volume users, some costs are relatively fixed, rather than varying with marginal volume. The high-volume QBRM category includes a lower per-piece charge and requires payment of a new (separate) quarterly fee in addition to the annual accounting fee. It is proposed to charge $0.03 per piece returned under high-volume QBRM service. This per-piece charge is in addition to the lower QBRM First-Class Mail postage listed in R100. It is proposed to charge an $850.00 quarterly fee (in addition to the $375.00 annual accounting fee). Mailers may ``opt in'' to high-volume QBRM by paying the quarterly fee at any time as their volume warrants, thereby paying lower per-piece charges when they expect a larger volume of returned pieces. Quarterly fees would apply to any three consecutive calendar months, beginning with the first calendar day of the first month and ending on the last calendar day of the third month. If the quarterly fee is paid on or before the 15th of the month, then the quarterly fee is counted as if it was paid on the first day of that calendar month, but the lower per-piece charges begin on the day the fee is paid. If the quarterly fee is paid after the 15th of the month, then the lower per-piece charges begin immediately, but the quarterly fee is credited as if it was paid on the first day of the following calendar month and continues through three calendar months. Mailers may not apply for ``retroactive'' refunds of per-piece charges. See DMM R900.4.0 (3) Nonletter-Size Business Reply Mail (DMM S922) Clarifying language would be added to ensure that the maintenance fee applies to the bulk weight-averaging method only. No changes are proposed to the per-piece charge or to the monthly maintenance fee. The annual business reply mail permit fee is proposed to increase from $100 to $125. The annual accounting fee is proposed to increase from $300 to $375. See DMM R900.4.0. e. Carrier Sequencing of Address Cards (DMM A920) The fee is proposed to increase from $0.20 to $0.25 for each card removed due to an incorrect or undeliverable address and for each card added with a new address. There are no classification changes proposed for this service. See DMM R900.2.0. f. Certificate of Mailing (DMM S914) For individual pieces, the fee for the original certificate of mailing is proposed to increase from $0.60 to $0.75. While no change is proposed to the firm mailing book fee, the fee for an additional copy of a certificate of mailing is proposed to increase from $0.60 to $0.75. For bulk quantities, the fee for one certificate of mailing (for the first 1,000 pieces) is proposed to increase from $3.00 to $3.50. There is no proposed change to the fee for a certificate for each additional group of 1,000 pieces. The fee for an additional copy of a bulk certificate of mailing is proposed to increase from $0.60 to $0.75. There are no classification changes proposed for this service. See DMM R900.6.0. g. Certified Mail (DMM S912) The fee is proposed to increase from $1.40 to $2.10 in order to cover newly estimated costs for this service. See DMM R900.7.0. h. Collect on Delivery (COD) (DMM S921) Fees are proposed to increase by $.50 for every $100 value level. It is proposed to increase the maximum COD value level from $600 to $1,000. No change is proposed to the fees for registered COD, the notice of nondelivery, or the alteration of COD charges (Form 3849-D). The money order limit is proposed to remain at $700; therefore, if the recipient pays in cash for COD amounts over $700, then the USPS will send two postal money orders to the mailer (and collect two money order fees from the recipient). See DMM R900.8.0. i. Correction of Mailing Lists (DMM A910) The charge per correction is proposed to increase from $0.20 to $0.25. In conjunction, the minimum charge per list is proposed to increase from $7.00 [[Page 52491]] to $7.50. There are no classification changes proposed for this service. See DMM R900.12.0. j. Delivery Confirmation (DMM S918) The fee for retail option Priority Mail Delivery Confirmation (i.e., purchased by a customer over a retail counter) is proposed to increase from $0.35 to $0.40. The fee for retail option Package Services Delivery Confirmation is proposed to increase from $0.60 to $0.65. No change is proposed to the fees for electronic option Delivery Confirmation for Priority Mail and Package Services. It is proposed to extend electronic option Delivery Confirmation service to Standard Mail (both Regular and Nonprofit subclasses). Delivery Confirmation service would be limited to Standard Mail parcels that are subject to the residual shape surcharge. No retail option is proposed for Standard Mail. The proposed fee for electronic option Delivery Confirmation for Standard Mail is $0.25 per piece, which mirrors the current fee for Package Services. See DMM R900.9.0. k. Express Mail Insurance (DMM S500) Fees for Express Mail insurance are proposed to increase. There are no classification changes proposed for this service. See DMM R900.10.0. l. Insurance (DMM S913) Fees for insurance are proposed to increase for all value levels. It is proposed to offer separate bulk discounts for unnumbered and numbered insurance. In addition, it is proposed to extend bulk insurance to Standard Mail (both regular and nonprofit). Bulk insurance would be limited to Standard Mail parcels that are subject to the residual shape surcharge. No regular insurance is proposed for Standard Mail. See DMM R900.11.0. It is proposed to remove the requirement that insured pieces sent at First-Class Mail and Priority Mail rates be marked ``Standard Mail Enclosed.'' m. Mailing Fees Presort mailing fees and destination entry mailing fees for all classes of mail are proposed to increase. Specific fees and classification changes are included under the separate summary for each class of mail. n. Merchandise Return Service (DMM S923) It is proposed to eliminate the per-piece (transaction) fee for parcels returned to the permit holder via merchandise return service (MRS). It is proposed to establish a new annual accounting fee of $375 for MRS. This fee covers the costs of accounting services provided to mailers and is consistent with accounting fees charged for other special services. Current MRS permit holders would have 30 days from the date of implementation of this classification change to pay their initial annual accounting fee. See DMM R900.13.0. It is proposed to allow customers (those who use merchandise return service labels to return a parcel to the permit holder) to add insurance to a MRS parcel at their own discretion and expense. No other special services could be added by the sender. Previously, insurance could be added to a parcel only if specified by the permit holder. It is proposed to remove the requirement that MRS parcels sent at First- Class Mail and Priority Mail rates be marked ``Standard Mail Enclosed.'' It is proposed that parcels that do not bear a class or rate marking, regardless of weight, would be treated as Parcel Post and would be charged Parcel Post Inter-BMC/ASF rates. These same changes are proposed to apply to penalty merchandise return service. o. Money Orders (DMM S020) It is proposed to increase the fee for domestic money orders from $0.80 to $0.90 per money order. It is proposed to increase the fee for APO/FPO money orders from $0.30 to $0.35 per money order. It is proposed to increase the inquiry fee from $2.75 to $3.00. There are no classification changes proposed for this service and the maximum amount would remain at $700. See DMM R900.15.0. p. Parcel Airlift Service (PAL) (DMM S930) There are no proposed fee or classification changes for this service. See DMM R900.16.0. q. Permit Imprint Application Fee (DMM P040) The application fee for permit imprints is proposed to increase from $100 to $125. Other kinds of permit fees (e.g., business reply mail) are covered under separate summary sections. See DMM R900.17.0. r. Pickup Service (DMM D010) The pickup service fee is proposed to increase from $8.25 to $10.25 per pickup. There are no classification changes proposed for this service. See DMM R900.18.0. s. Post Office Boxes, Caller Service, and Reserve Call Numbers (DMM D910 and D920) The Postal Service is proposing to restructure post office box fee groups and to establish fees in each of the new groups. Compared to equivalent current post office box fees, the proposed fees represent both increases and decreases. It is proposed to charge a nonrefundable $4.00 fee for each key, over two, requested by a customer. In addition, the Postal Service is proposing a $10.00 lock replacement fee. In an attempt to better align fees with the actual cost of providing post office box service, the Postal Service is proposing to change the classification structure for post office boxes. The current classification (and therefore fees) of post office boxes are based primarily on the type of carrier delivery at a particular postal facility. The Postal Service has undertaken a major project to align post office box fees with actual costs by 5-digit ZIP Codes. In other words, post office boxes that have similar costs would be grouped together and have the same fee. These ``actual costs'' include estimated rental value of the space used to provide post office boxes. For this proposal, each 5-digit ZIP Code was assigned to one of six cost-based groups based on the estimated cost per square foot of the postal facilities within that ZIP Code. All facilities with post office boxes in the same 5-digit ZIP Code are in the same cost group and will charge the same fees for post office boxes. Therefore, facilities (stations and branches) within the same geographic area that are in different ZIP Codes may charge different fees for the same size post office box. Movement of ZIP Codes from old fee groups to new groups has been constrained to mitigate ``fee shock'' for customers whose post office box fees would have changed significantly. There are no proposed changes to free (Group E) box service. Therefore, customers qualifying for free box service would continue to receive free service. The Postal Service is developing a new data system to track post office box costs by 5-digit ZIP Code. At this time, the Postal Service is still adding data to this system and checking existing data for accuracy. A draft list of 5-digit ZIP Codes and fee group assignments will be made available to the public at a future date; the fee group assignments are not open for comment as part of this proposed rule. If this proposal is adopted, a final list will be published before implementation of new post office box fees. [[Page 52492]] The Postal Service believes that this post office box reclassification will result in fairer, more equitable post office box fees for all customers because the fees will more accurately reflect the true costs of providing that service. Current post office box customers would not pay the proposed fees until their current box rental period ends. See DMM R900.19.0. Under the same reclassification effort, the caller service fee is proposed to increase to $375 for all customers at all postal facilities. Caller service fees would no longer be broken out according to post office fee groups. The annual call number reservation fee is proposed to decrease from $36 per semi-annual period to $30 per semi- annual period. See R900.5.0. t. Registered Mail (DMM S911) All registered mail fees are proposed to increase. The incremental fee for registered mail per value level is proposed to increase from $0.55 to $0.75. The handling charge per $1,000 in value, or fraction thereof, for items valued over $25,000 also is proposed to increase from $0.55 to $0.75. There are no classification changes proposed for this service. See DMM R900.20.0. u. Restricted Delivery (DMM S916) The restricted delivery fee is proposed to increase from $2.75 to $3.20. There are no classification changes proposed for this service. See DMM R900.21.0. v. Return Receipt (DMM S915) The regular return receipt fee is proposed to increase from $1.25 to $1.50. The return receipt for merchandise fee is proposed to increase from $1.40 to $2.35. The fee for a return receipt after mailing is proposed to decrease from $7.00 to $3.50. These changes reflect improved cost estimates and the impact of electronic signature capture. See DMM R900.22.0. The Postal Service is proposing two classification changes. The first change would allow return receipt for merchandise to be combined with unnumbered insurance. The second change would extend return receipt for merchandise service to Standard Mail (Regular and Nonprofit subclasses); this service would be limited to Standard Mail parcels that are subject to the residual shape surcharge. Enhanced Carrier Route and Nonprofit Enhanced Carrier Route subclasses would not be eligible for return receipt for merchandise. w. Shipper Paid Forwarding (DMM F010) The Postal Service is proposing to establish an annual accounting fee of $375 for shipper paid forwarding for customers who choose to pay forwarding charges through a postage due account. This fee is consistent with accounting fees charged for other special services. See DMM R900.24.0. x. Signature Confirmation (DMM S919) The Postal Service proposes to establish a new classification and fee schedule for Signature Confirmation. Signature Confirmation will capture and provide access to all Delivery Confirmation data and an image of recipient signatures. Signature Confirmation will be available only at the time of mailing for Priority Mail and all subclasses of Package Services. For Priority Mail Signature Confirmation, the proposed fees are $1.25 for electronic option and $1.75 for retail option. For Package Services Signature Confirmation, the proposed fees are $1.25 for electronic option and $1.75 for retail option. See DMM R900.25.0. Before the implementation of R2000-1, it is possible that an equivalent service will be implemented as electronic return receipt service with Delivery Confirmation, based on the PRC's recommendation on Docket No. R97-1. y. Special Handling (DMM S930) There are no proposed fee or classification changes for this service. See DMM R900.26.0. z. ZIP Code Sortation of Mailing Lists (DMM A910) Fees for sorting mailing lists by 5-digit ZIP Code for post offices with multiple ZIP Codes are proposed to increase from $70.00 to $73.00 per 1,000 addresses. There are no classification changes proposed for this service. See DMM R900.12.0. 12. On-Site Meter Service (DMM P030) It is proposed to change the name of the service from ``on-site meter settings'' to ``on-site meter service.'' It is proposed to replace the ``single meter'' and ``unscheduled appointment'' categories with a new ``meter service'' category. It is proposed to replace the ``additional meters'' category with a ``meter reset and/or examined'' category. These categories are proposed in order to consolidate similar fees and make the service simpler. New fees have been proposed for these realigned categories. The proposed fee for meter service is $31.00. The proposed fee for getting a meter reset and/or examined is $4.00 per meter. The proposed fee for checking a meter in or out of service is proposed to decrease from $8.00 to $4.00 per meter. See DMM R900.14.0. The Postal Service proposes that these fees for checking a meter in and out would not apply to ``secured postage'' meters. To qualify as a ``secured postage'' meter, a meter must: (1) Include a USPS-approved postal security device; (2) print information-based indicia; and (3) be remotely set. Because of the enhanced security that these meters provide, they do not require labor intensive activities during installation or withdrawal. Therefore, these meters do not have significant check-in/out costs. 13. Stamps and Stationery (DMM P021) a. Stamped Cards The fee for a single stamped card is proposed to increase from $0.01 to $0.02. The fee for double stamped cards is proposed to increase from $0.02 to $0.04, and the fee for a sheet of 40 stamped cards is proposed to increase from $0.40 to $0.80. These fees are in addition to the postage that is pre-printed on the cards and covers the cost of printing and manufacturing stamped cards. See DMM R000.3.0. b. Stamped Envelopes The fees for all categories of stamped envelopes are proposed to increase. This fee is paid in addition to the postage pre-printed on the envelopes. The following classification changes are proposed for stamped envelopes: (1) Merge the printed household 6 \3/4\ inch and 10 inch categories into a single category called printed household (basic). (2) Eliminate the banded categories for 6 \3/4\ inch and 10 inch envelopes. (3) Expand the hologram category to include all envelopes that have a patched-in stamp and rename that category ``special'' stamped envelopes. See DMM R000.1.0 and R000.2.0. B. Summary of Changes to the Domestic Mail Manual The following are proposed changes organized by DMM module. They are intended as an overview only and should not be viewed by commenters as defining every proposed revision. Global Name Changes Throughout the DMM sections included in this document, the following name changes have been made: 1. ``Special Standard Mail'' has been changed to ``Media Mail.'' 2. ``Standard Mail (A)'' has been changed to ``Standard Mail.'' 3. ``Standard Mail (B)'' has been changed to ``Package Services.'' Package [[Page 52493]] Services includes all of the Standard Mail (B) subclasses: Parcel Post (including Parcel Select), Bound Printed Matter, Media Mail, and Library Mail. In addition, the current DMM 600 series, which contains combined rules for Standard Mail (A) and Standard Mail (B), has been split into a 600 series for Standard Mail and a 700 series for Package Services. Within these new series, individual units and sections have been split up and reorganized for clarity. Current DMM P700, which contains standards for special postage payment systems, is renumbered as P900. Throughout the language in the DMM, references to ``Standard Mail'' have been retained as ``Standard Mail'' or changed to ``Package Services'' or ``Standard Mail and Package Services,'' as appropriate. A Addressing A010 is amended to change DMM references to reflect new DMM module numbering. A060 1.4 is amended to incorporate new requirements for preparation of Bound Printed Matter mailings with DALs because of the elimination of local zone rates. Also, it is clarified that mailings made with DALs may not contain any special services or an ancillary service endorsement. A new A060.1.7 is added to exclude DALs on special services mail. C Characteristics and Content C010 and C020 are revised to reflect new DMM module numbering. C050 is revised to decrease the machinable parcel minimum piece weight from 8 ounces to 6 ounces, to clarify that packaging requirements for soft goods may be found in C010, and to clarify that a destinating BMC manager may authorize the entry of parcels as machinable rather than as irregular if they are tested for machinability and are delivered within the service area of the authorizing facility. C200.5.0 is added to specify size and weight limitations for Periodicals. C600 is revised to delete sections 1.3 and 2.0, which pertain to Package Services and have been moved to new C700. C700 is added to include characteristics and content standards for Package Services (former C600.1.3 and 2.0 are included in this new section). C700.2.0 is amended to provide for the addition of new nonmachinable surcharges for intra-BMC and Parcel Select DBMC parcels. C810.2.3 is added to include instructions for determining the length and height for automation letters. C810.2.4 (former C810.2.3) is amended to provide for the new maximum weight of 3.5 ounces for heavy letters. C850 is amended to add Standard Mail machinable parcels as items eligible for barcoded discounts. D Deposit, Collection, and Delivery D600 is revised to remove information pertaining to Package Services, to add information about deposit of mail under plant-verified drop shipment procedures, and to clarify language. D700 is added to include deposit information for Package Services (formerly contained in D600). D910.1.5 is amended to clarify that post office box customers must pay the correct fee for the box service they receive. D910.1.7 is added to clarify that post office box service is provided in 6-month increments. D910.1.8 (formerly D910.1.7) is amended to add information about the new key duplication fee and the new lock resetting fee. D910.3.1 is amended for clarity. D910.3.7 is amended to clarify that a post office box may not be used when the primary purpose is to have the Postal Service redirect or transfer mail to another address. D910.4.1 is amended to change the basis of post office box fees. D910.4.3 is deleted to remove references to fee groups; subsequent sections are renumbered. Renumbered D910.4.3 is amended to specify the conditions under which post office box fees can change. D910.4.4 is amended to clarify when post office box fees must be paid. D910.4.7 is amended to show that the exception for payment periods is applicable to all offices with fewer than 500 post office boxes, regardless of fee group. D910.5.1 is amended to explain the new system for grouping ZIP Codes into fee groups. D910.5.2 and 5.3 are amended to clarify the conditions under which a customer could qualify for fee (Group E) post office box service. Exhibits D910.5.3a and 5.3b are deleted because of the change to a new fee system. D910.6.1 is amended to clarify how refunds for post office box fees are calculated. D910.7.0 is revised to include the new fee for replacement or duplicate keys and the new fee for replacing post office box locks. D920.1.4 is amended to move information about reserved caller numbers into new D920.1.5. D920.3.4 amended to clarify that caller service may not be used when the primary purpose is to have the Postal Service redirect or transfer mail to another address. D920.4.0 is amended and Exhibit 4.1 is deleted to remove references to caller service fee groups. D920.4.2 is amended to clarify that reserved number fees are not refundable. D920.4.3 is amended to remove references to deleted sections. D920.4.5 is amended to clarify the payment periods for caller service. D920.4.8 is amended to show that the exception for payment periods is applicable to all offices with fewer than 500 post office boxes. D920.5.1 is amended to clarify how refunds for caller service fees are calculated. D920.5.3 is added to show that the reserve number fee is not refundable. E Eligibility Throughout the E module, references to ``Regular'' are changed to ``Outside-County,'' as appropriate. E010.1.4 is amended to change references from ``C600'' to ``C700.'' E010.1.6 is amended to add clarity to the first sentence. The first sentence of E020.1.4 is added to clarify that Express Mail cannot be sent through the Department of State. E020.2.3 is amended to show that Signature Confirmation is not available for mail sent through the Department of State. E040.4.1 is amended to change references from ``C600'' to ``C700.'' E060 5.3 is amended to reflect the current requirement for a ``Parcel Post'' rate marking for single-piece rate Parcel Post. E060.10.1 is amended to clarify standards for penalty reply mail. E060.11.1 is amended to add QBRM as an option for penalty business reply mail and to clarify when the annual accounting fee is paid. E060.12.1 is amended by adding a reference to S923. A new E060.12.2 is added to clarify how penalty merchandise return service (MRS) parcels are charged postage and fees. A new E060.12.3 is added to require MRS permit holders to pay an annual accounting fee. E060.12.7c is added to indicate where the recommended rate marking should appear on the MRS label. E060.12.8 is amended to clarify standards for permit holders who choose to add insurance to MRS parcels. E060.12.9 is renumbered as E060.12.10 and new E060.12.9 is added to allow senders to add insurance to MRS parcels at their own discretion and expense. E070.4.2 is amended to change the reference from ``E600'' to ``E700.'' E070.6.2 is revised to specify Presorted rate mail must be prepared under Bound printed Matter standards. E120.2.4 is revised to add provisions for a new minimum Priority Mail rate for pieces weighing 1 pound or less, and to add information on rates applicable to keys and identification devices. E130.2.2 is revised to clarify the fee for keys and identification devices. E130.2.3 is relocated to M110.1.0. E140.2.2 and E140.2.3 is revised to add separate 5-digit (optional) and 3-digit (required) rate eligibility requirements for automation flats. E150.2.0 is amended by removing the last sentence. E150.3.2 is amended by adding a [[Page 52494]] quarterly QBRM fee under E150.3.2d. E211.13.1 is amended by revising 13.1d(3). E211.13.2 is amended for clarity, no fee is charged if reentry is only to change eligibility to preferred rates or the preferred rate discount. E211.14.0 has been revised and renumbered as E220.1.0. E212.2.4 has been revised and renumbered as E220.4.0. E215.2.3 is amended by adding references to Preferred rate discount and clarifying qualification categories. New E215.2.4 is added for Publications of Institutions and Societies. E215.2.7 is amended by replacing the second sentence and deleting the third sentence. A new E220 is created that describes and clarifies basic rate eligibility standards for Periodicals including the new preferred rate discount for Nonprofit and Classroom publications which provides a 5% discount on total Outside-County postage, excluding the postage for advertising pounds. E270 is amended by removing 1.0 and 6.0 and renumbering 2.0 through 9.0 as 1.0 through 7.0 and replacing the word in 1.0 ``RATES'' with the word ``ELIGIBILITY.'' Removing the word ``rates'' and replacing the reference 3.0 and 4.0 as 2.0 and 3.0 amends renumbered E270.1.1. Removing the word ``regular'' amends renumbered E270.1.3. E270.1.4 is removed. Removing the word ``RATES'' with the word ``ELIGIBILITY'' amends renumbered E270.2.0. E270.2.1 and E270.2.2 are amended by replacing the reference ``3.3 through 3.10'' with ``2.3 through 2.10.'' Removing the word ``RATES'' with the word ``ELIGIBILITY'' amends renumbered E270.3.0. Removing the word ``regular'' in the last sentence amends renumbered E270.4.0. E270.5.1 is amended by adding a new first sentence requiring the Preferred rate discount is available only after USPS authorization. E270.5.5, Rate Anomaly, renumbered as E270.4.5 is removed. In renumbered E270.5.0, 5.1 is removed and E270 5.2 and 5.3 are renumbered as 5.1 and 5.2. Renumbered E270.5.1 is amended by adding a new first sentence describing the Preferred rate discount and revising the second sentence applicable to authorization procedures for Nonprofit and Classroom publications. Adding reference to preferred rate and replacing ``Regular Periodicals'' with ``Outside-County'' amends renumbered E270.6.1 and E270.6.2. Renumbered E270.7.4 is amended by replacing ``Regular'' with ``Outside-County,'' and the reference ``9.5'' with ``7.5.'' E611 is amended to provide basic eligibility requirements for only Standard Mail and is renumbered as E610. E610.1.0 is amended to show that Standard Mail no longer includes matter previously referred to as Standard Mail (B) or fourth-class mail, and add the weight limit from former E612.1.0. E610.4.6 is removed because this section is no longer needed since all Package Services mail may now weigh less than 16 ounces. E610.5.0 is amended for clarity and incorporates new maximum limits for minimum per-piece rates. E610.5.4 is added for machinable parcels prepared with barcodes to be eligible for a barcoded discount. E610.5.5 is added for mail that is prepared as a parcel or is not a letter-size or flat-size mailpiece defined in C050 is subject to a residual shape surcharge. E612.4.9 is renumbered as E612.8.0. E612.8.0 is amended for clarity and provides use of detached address labels. E610.5.6 is amended to provide for the residual shape surcharge. Renumbered E610.5.7 is amended to remove the reference to 4.6 and to delete ``bulk'' and to change ``pound rates'' to ``piece/pound rate.'' E612 is removed and its information added to new E610. E620 is amended to remove information pertaining to Enhanced Carrier Route Mail, and to add new 4.0, which contains standards for the barcoded discount. Information in current E630 has been moved to new E700. E630 now contains eligibility for Standard Mail Enhanced Carrier Route mail. E640 is amended to change references replacing ``Standard Mail (A)'' with ``Standard Mail'' and amended current ``E611 and E612'' to a consolidated and reorganized ``E610.'' E650 has been revised by renumbering E651 to E650 and amended current ``E611 and E612'' to a reorganized ``E610.'' E670 is amended to add a reference replacing ``P750,'' which has been moved to ``P950.'' A new E700 is created for Package Services as part of the restructuring to establish separate modules for Standard Mail and Package Services mail. A new description has been added above E710 to match the description in the new E610 section. Existing E611 and E613 are renumbered to be part of the basic standards in E710 and sections of existing E630 are renumbered as new E711, E712, E713, E714, and E715. Existing E613.1.0 is renumbered as E710.1.2 and amended to reflect that minimum weights for subclasses of Package Services mail have been eliminated. E630.1.3 is renumbered as E711.2.2 and amended to add the new Intra-BMC and Parcel Select-DBMC nonmachinable surcharges, and E711.2.3 is revised to clarify that certain parcels mailed at a balloon rate may be subject to a nonmachinable surcharge. E630.2.0 is renumbered as E712 and revised in its entirety. The definition of a full sack is revised in E713 and in all other sections by eliminating the 1,000 cubic inch volume requirement and retaining only the piece and sack weight criteria. E630.5.1 is renumbered as E714 and amended to change the class name from Library Mail to Package Services. E652 is renumbered as E750 for destination entry Package Services mail. E751.4.4 and 4.5 are revised to clarify that an exception to the appointment requirement exists for destination entry shipments containing 100 percent Periodicals or shipments of perishables. E752 is created for new destination entry discounts for Presorted rate and Carrier Route rate mailings of BPM encouraging the deposit of mail at a destinating BMC, SCF, or delivery unit. An annual destination entry fee for mail entered at destination entry rates is proposed. This new section also explains Destination Entry Mail Preparation when mailing under plant-verified drop shipment (PVDS). E753 has been added to provide for the combining of Package Services parcels in 5-digit sacks (E753.2.0) and on 5-digit pallets (E753.3.0) for destination entry at the SCF and DDU levels if also presented with an approved manifest. Sacks containing at least 10 combined pieces or a combined weight of 20 pounds and pallets having at least 50 combined pieces and a combined weight of 250 pounds of mail, or 36 inches of mail, will be allowed. BPM parcels claimed at a Carrier Route rate may not be combined with the other Package Services parcels. F Forwarding and Related Services F010.4.5 is amended to add that Standard Mail with insurance is forwarded and returned. F010.4.6 is added to make the standards for undeliverable metered mail in this module consistent with standards elsewhere in the DMM. F010.5.3g is added and the chart in F010.5.3 is amended to prohibit the use of the ``Change Service Requested'' endorsement on Standard Mail with special services. F010.5.4c is added and the chart F010.5.4 is amended to allow BPM with no ancillary service endorsement and no special service to be disposed of by the Postal Service. F010.7.4 is amended to specify that combination parcels are returned at Parcel Post Inter-BMC/ASF rates. F030.2.5 is amended to give mailers participating in Shipper Paid Forwarding the option of paying forwarding charges through a postage due account. If mailers choose this option, then they must pay the annual [[Page 52495]] accounting fee. F030.4.2 is amended to include information about forwarding and return of Standard Mail. L Labeling Lists L001 is amended to change the introductory paragraph to show that this labeling list may be used with Bound Printed Matter flats. L002 is amended to add ``and per-piece'' to the rate description for Periodicals SCF rates. L004 is amended to show that it may be used with Bound Printed Matter. L601 is amended to show that packages of Bound Printed Matter irregular parcels on pallets may use this list and to show the instructions for labeling mixed BMC containers that were inadvertently omitted from the Federal Register published August 8, 2000 (65 FR 48385). L602 is amended to remove the term ``bundles,'' and to provide for use of this list by Bound Printed Matter machinable parcels when DBMC rates are claimed. M Mail Preparation and Sortation M011.1.3 is amended to add preparation instructions for less-than- full and overflow flat trays and to revise the preparation instructions for 5-digit/scheme carrier routes sort and 5-digit/scheme sort to provide for use of these levels of sortation with BPM flats. M012.3.1 is amended to eliminate the use of ``Library Rate'' marking effective January 1, 2002 (after which date only ``Library Mail'' may be used as the marking), to change the marking ``Special Standard'' to ``Media Mail'' (``Special Standard'' or ``SPEC STD'' may be used only until January 1, 2002). M012.3.2 is amended to add the marking ``Parcel Select.'' M012.3.3 is amended to eliminate use of the marking ``Presorted Standard'' instead of ``Presorted'' with Presorted BPM effective January 1, 2002 (after which date only ``Presorted'' and ``Bound Printed Matter'' may be used), and to add use of the abbreviation ``BPM'' as an optional marking for ``Bound Printed Matter.'' M013.1.1 is updated to include a carrier route package optional endorsement line information for Carrier Route BPM. M013.2.5 is amended for clarity and to change the labeling list used for ADC sortation of BPM irregular parcels from L603 to L004, to change the labeling list used for mixed ADC sortation from L604 to L004. M020.1.4 is amended to delete references to bundles. Current M020.1.5 and 1.6 are renumbered 1.6 and 1.7 and a new M020.1.5 is added to describe new physical preparation of BPM packages. M020.2.2 is amended to show that First-Class Mail automation flats prepared under the new tray-based preparation rules are not prepared in packages and to show that the exception in renumbered M020.1.7 also applies to First-Class flats in trays. M020.3.0 is amended to show that the requirements for facing slips used to label carrier route packages applies to all classes of mail. M031.4.7 is amended to specify that the words ``CARRIER ROUTES'' must appear on 5-digit pallets of BPM only when the pallet consists entirely of irregular parcels eligible for the carrier route rate and that the words ``CARRIER ROUTES'' must appear after the ``5D'' pallet level description. M031.4.12 is amended to delete the term ``bundle.'' M031.5.0 is amended to add new abbreviations for First-Class Mail and Package Services mail. Exhibit M032.1.3a is amended to reflect changes in the content line and CIN numbers of Package Services sack labels. M033.1.2 is amended to clarify that lids on First-Class flat trays must be placed on the trays green side up. M033 is amended to provide for less-than-full and overflow trays for First-Class Mail automation rate mailings prepared under the new tray-based option. M041.5.6 is amended to require for flat-size BPM that Presorted rate mail be placed on separate 5-digit pallets (5-digit scheme and 5- digit pallets) than Carrier Route rate mail (5-digit carrier routes or 5-digit scheme carrier routes pallets), and to remove references to palletized bundles. M045.2.0 is revised to clarify requirements and for BPM to revise the package minimums, maximums, and physical packaging requirements. Current M045.3.0, which provides for optional preparation of bundles on pallets for Periodicals and Standard Mail is deleted. M045.4 (as set forth in the final rules published in 65 FR 50054 (August 16, 2000)) is renumbered as M045.3. M045.3 is amended to provide for separate pallet preparation requirements for BPM flats in M045.3.3 and for irregular parcels in M045.3.4, to renumber the remainder of that section, and to revise the class abbreviation on the contents lines for Package Services mail from ``STD'' or ``STD B'' to ``PSVC.'' M045.5 through M045.15 (as set forth in the final rule published in 65 FR 50054 (August 16, 2000)) is renumbered as M045.4 through M045.14. Renumbered M045.6.4 and M045.9.2 will be amended by changing the reference ``M630'' to ``M710 or M720.'' Renumbered 10.0 and 11.0 are amended by changing ``STD'' or ``STD B'' to ``PSVC.'' Renumbered 12.1 is amended to change ``M630'' to M710,'' to change the pallet label contents lines class abbreviation from ``STD B'' to ``PSVC,'' and to add ``PARCELS'' after the class abbreviation. Renumbered 12.2 is amended to change ``M630'' to ``M710,'' to change the pallet label contents lines class abbreviation from ``STD B'' to ``PSVC,'' and to add ``PARCELS'' after the class abbreviation. M045.12.3 is amended to change ``Exhibits E652.7.0 and E652.8.0'' to ``Exhibits E751.7.0 and E751.8.0.'' M045.12.4 is amended to change ``E652.6.0'' to ``E751.6.0.'' M045.13.0 is amended to change ``M630'' to ``M710'' and to change the class abbreviation on the contents line of the pallet label from ``STD B'' to ``PSVC.'' M045.14.0 is amended to change the pallet label contents lines class abbreviation from ``STD B'' to ``PSVC,'' and to add ``PARCELS'' after the class abbreviation. M072.2.4 is amended by changing ``P710, P720, or P730'' to ``P910, P920, or P930,'' and by changing ``E652'' to ``E751.'' M073.2.3 is amended to change ``P710'' to ``P910.'' M110 is added to show the preparation requirements for single-piece First-Class Mail formerly located in E130.2.3. M610.6.0, which provided for preparation of Standard Mail bedloaded bundles, is deleted. M620.1.1a is amended by changing ``E620'' to ``E630.'' M630.1 pertaining to Parcel Post is renumbered in new M710. M710.1.1 is added to describe general requirements for Parcel Post. Renumbered M710.1.3 (formerly M630.1.2) is revised to show that DSCF and DDU rate mail need not be separated by zone and to change ``P710, P720, or P730'' to ``P910, P920, or P930.'' M710.1.4 is added to contain standard for commingled zones (formerly M630.8.0). M710.1.5 contains the documentation information formerly in M630.1.3 and is amended to clarify the standards and to change ``P710, P720, or P730'' to ``P910, P920, or P930.'' M710.2.1 contains standards, formerly in M630.1.4, that are amended by changing the reference ``1.5'' to ``2.2,'' by changing ``Exhibit E652.6.0'' to ``Exhibit E751.6.0,'' and by changing the reference ``Exhibit E652.6.0 and Exhibit E652.8.0'' to ``Exhibit E751.7.0 and Exhibit E751.8.0.'' M710.2.2 (formerly M630.1.5) contains standards that are amended to replace ``STD B 5D'' on the contents line of DSCF 5-digit sacks with ``PSVC PARCELS 5D.'' M710.4.0 (formerly M630.6.0) is added to contain provisions for preparation of machinable parcels and is amended to show that this preparation is optional for Parcel Post. M720 (formerly M630.2.0 and 3.0) is added to contain standards for BPM. M721 contains the preparation standards for single-piece rate BPM. M722 contains the preparation standards for Presorted [[Page 52496]] BPM. M722.2.1 contains new packaging requirements for Presorted flats. M722.2.2 contains new sacking requirements for Presorted flats. M722.3.0 contains new line 2 sack labeling requirements that change the abbreviation ``STD'' to ``PSVC.'' M722.3.1 contains new packaging requirements for Presorted BPM irregular parcels that weigh 10 pounds or less. M722.3.2 contains new sack preparation requirements for Presorted BPM irregular parcels weighing 10 pounds or less, including a requirement to use L004 instead of L603 for preparation of ADC sacks and to use L004 instead of L604 for mixed ADC sacks. M722.3.3 contains new line 2 sack labeling requirements for Presorted BPM irregular parcels weighing 10 pounds or less that change the abbreviation ``STD B'' to ``PSVC.'' M722.3.4 contains a provision to allow preparation of bedloaded 5-digit packages of Presorted BPM irregular parcels weighing up to 40 pounds when prepared for and entered at DDU rates. M722.4.0 contains preparation requirements for Presorted BPM irregular parcels weighing over 10 pounds. M722.4.1 prohibits packaging of such pieces and requires that each individual piece must be enclosed in an envelope, full-length sleeve, full-length wrapper, or polywrap before being placed in sacks. M722.4.2 contains sacking requirements for Presorted BPM irregular parcels weighing over 10 pounds including a requirement to use L004 instead of L603 for preparation of ADC sacks and to use L004 instead of L604 for mixed ADC sacks. M722.4.3 contains new line 2 sack labeling requirements for BPM irregular parcels weighing over 10 pounds that change the abbreviation ``STD B'' to ``PSVC.'' M722.4.4 contains a provision to allow preparation of bedloaded 5-digit packages of Presorted BPM irregular parcels weighing up to 40 pounds when prepared for and entered at DDU rates. M722.5.0 contains provisions for preparing Presorted machinable parcels that contains the provisions of former M630.6.0 that are amended to clarify preparation when DBMC rates are claimed and when they are not and to change the line 2 sack labeling class abbreviation from ``STD B'' to ``PSVC.'' M723 is added that contains the provisions for preparing Carrier Route BPM. M723.2.0 contains the preparation requirements for Carrier Route BPM flats. M723.2.1 contains new packaging requirements. M723.2.2 contains new sacking minimums, requires preparation of carrier route sacks, and provides for optional preparation of 5-digit scheme carrier routes sacks for Carrier Route BPM flats. M723.2.3 contains line 2 sack labels that are amended to change the class abbreviation from ``STD B'' to ``PSVC.'' M724.2.4 contains a provision to allow preparation of bedloaded carrier route packages of BPM flats weighing up to 40 pounds when prepared for and entered at DDU rates. M723.3.0 contains preparation requirement for Carrier Route BPM weighing 10 pounds or less. M723.3.1 sets forth new packaging requirements for Carrier Route BPM irregular parcels weighing 10 pounds or less. M723.3.2 contains sack preparation requirements that change the carrier route sack minimum and make it a required level of sack. M723.3.3 contains line 2 sack labels that are amended to change the class abbreviation from ``STD B'' to ``PSVC.'' M723.3.4 contains a provision to allow preparation of bedloaded carrier route packages of BPM irregular parcels weighing up to 40 pounds when prepared for and entered at DDU rates. M723.4.1 requires Carrier Route BPM irregular parcels weighing over 10 pounds to be prepared only in direct carrier route sacks containing a minimum of 20 pounds of mail. M723.5.1 permits machinable parcels to qualify for Carrier Route BPM rates only if prepared in a direct carrier route sack that contains a minimum of 10 addressed pieces or 20 pounds. M730 is added to contain standards for Media Mail (formerly in M630.4.0) and is amended to reflect the subclass name change to ``Media Mail.'' M730.1.0 contains basic standards. M730.2.1 contains sack and package on pallet preparation for 5-digit Media Mail rates from former M630.4.4 amended to change ``bundles'' to ``packages'' and to remove ``/1,000 cubic inches.'' M730.2.2 (formerly M630.4.5) contains sack preparation for BMC Media Mail rates and is amended to remove ``/1,000 cubic inches.'' M730.2.3 contains Line 2 sack label information for Media Mail (formerly in M630.4.6) amended to change ``STD'' and ``STD B'' to ``PSVC.'' M740 is added that contains the standards for Library Mail in former M630.5.0. M740.1.0 contains basic standards for Library Mail in former M630.5.1 through 5.3, amended to discontinue use of the ``Library Rate'' marking beginning January 1, 2002. M740.2.1 contains sack preparation requirements for the 5-digit Library Mail rates from former M630.5.4 amended to remove ``/1,000 cubic inches.'' M740.2.2 contains sack preparation requirements for the BMC Library Mail rates from former M630.5.5 amended to remove ``1,000 cubic inches.'' M740.2.3 contains Line 2 sack label information for Library Mail from former M630.5.6 amended to change ``STD'' and ``STD B'' to ``PSVC.'' M820.1.2 is amended to incorporate the proposed separate rates for 5-digit and 3-digit First-Class automation flats. M820.1.5 is amended to exclude First-Class automation flats prepared under the new tray- based preparation rules from package preparation standards. M820.1.11 is added to prohibit combining FSM 881 and FSM 1,000 mailpieces in the same tray when the new tray-based preparation option for First-Class Mail automation flats is used. M820.2.1 is amended to make preparation of 5-digit packages for First-Class automation flats optional. M820.2.2 is amended to make preparation of 5-digit trays for First-Class automation flats optional. M820.3.0 is added to provide for an optional tray-based preparation for First-Class automation flats. M910.1.2 is amended to change the reference ``M820'' to the more specific reference ``M820.2.1'' so that it is clear the mail must be packaged and must not be prepared under the new option for First-Class Mail automation flats in M820.3.0 for tray-based preparation. P Postage and Payment Methods P011.1.1b is amended by renumbering 1.1b through 1.1e as 1.1c through 1.1f and add new 1.1b to include prepayment conditions for merchandise return service. P011.3.3 and 3.4 are added to clarify standards for advance deposit accounts and annual accounting fees. A separate annual accounting fee must be paid for each special service deducted from the same account. P012.2.2 is amended to include in the body elements of the standardized documentation tray levels and tray destinations when choosing the new tray-based preparation option for Automation First-Class flat mailings. P013.1.4 and P013.1.5 is amended to reflect the proper affixing of postage to other than single-piece rate mailings and affixing postage to single-piece rate mailings. P012.2.3 is amended to add a new table to include the proposed rate level and abbreviations for Automation First-Class Mail when opting to prepare tray-based presorts. P013.2.4 is revised to reflect the new proposed one-pound minimum Priority Mail rate. P013.2.6 is amended to reflect keys and identification devices weighing more than 13 ounces but no more than one-pound would be charged the new one-pound rate. Computing and affixing postage on Package Services mail is clarified and the minimum postage rate computation for Presorted and Carrier route Bound Printed Matter is clarified. [[Page 52497]] P014.2.4I is amended to include when the destination entry mailing fee is eligible for a full (100%) refund. P022.1.2 is amended by removing payment with postage due stamps from the second sentence. P070.5.4 is amended by replacing ``Special Standard Mail'' with ``Media Mail'' and to include the inter-BMC/ASF rates to the rating of unmarked parcels. P600.4.0 and 5.0 are added to clarify eligibility for barcoded discounts and payment methods with special services. Current P700, Special Postage Payment Systems, is redesignated as P900. Current P710, P720, P730, P750, and P760 are redesignated as P910, P920, P930, P950, and P960, respectively. A new P700 is created from P600 for Package Services with the only change in content being the name change from Standard Mail (B) to Package Services. R Rates and Fees The entire module is revised to reflect new rates and fees for all classes of mail. S Special Services S010.2.1 is amended to show that the sender of a merchandise return service parcel may file a claim for loss if the sender has purchased the insurance. S911.1.5 is amended to add Signature Confirmation as an additional service that may be combined with registered mail. S912.1.4 is amended to specify the additional services that may be combined with certified mail and S912.1.5 is amended to clarify the standards for a delivery record. S912.2.5a is amended to specify the form number used by customers. S913.1.2 and 1.3 are amended to show that bulk insurance may be added to Standard Mail pieces that are subject to the residual shape surcharge and to remove the required ``Standard Mail Enclosed'' marking. S913.1.5 is amended to add Signature Confirmation as an additional service that may be combined with insurance. S913.1.6 is added to clarify that customers may request a delivery record after mailing. S913.4.0 is amended to change ``parcel'' to ``item.'' S914.1.1 is amended to show that certificate of mailing is evidence that mail has been presented for mailing but does not provide a record of delivery. S914.1.2, 1.3, and 1.4 are rewritten for clarity; there are no changes to these standards for bulk certificate of mailing. S914.1.7 is added to specify the additional services that may be combined with certificate of mailing. S915.1.1 is amended to show that the return receipt is mailed back to the sender. S915.1.2 is amended to show the classes of mail that are eligible for return receipt service and the prerequisite services. S915.1.7 is added to specify the additional services that may be combined with return receipt. S915.2.2 is amended to clarify how to apply for a delivery record after mailing. S915.2.3 is added to specify the time limit for requesting a delivery record after mailing. S916.1.2 is amended to clarify that restricted delivery cannot be used with Standard Mail. S916.1.7 is added to specify the additional services that may be combined with restricted delivery, including new Signature Confirmation service. S917.1.1 is amended to show that the return receipt is mailed back to the sender. S917.1.2 is amended to show that return receipt for merchandise service is available for Standard Mail pieces that are subject to the residual shape surcharge. S917.1.3 is amended to specify the special services that may be combined with return receipt for merchandise. S917.2.7 is added to clarify how mailers may request a delivery record if return receipt service was not provided. S917.3.0 is amended to remove information about the delivery record. S918.1.2 is amended to show that electronic option Delivery Confirmation is available for Standard Mail pieces that are subject to the residual shape surcharge. S918.1.3 is amended to show that Delivery Confirmation service is not available for Standard Mail cards, letters, and flats (i.e., pieces that are not subject to the residual shape surcharge). The last sentence of S918.5.0a is deleted to eliminate redundancy. New unit S919 is added for Signature Confirmation service. S921.1.1 is amended to show the new $1,000 limit for COD and to clarify that recipients who pay CODs with cash will be charged the applicable money order fee(s). S921.1.4 is amended to specify the additional services that may be combined with COD. S922.3.4 and 3.5 are added to add a new classification of high- volume qualified business reply mail (QBRM) that includes a quarterly fee and a lower per-piece charge. Renumbered S922.3.6 is revised to clarify that the maintenance fee applies only to nonletter-size weight averaged BRM. S923.1.1, 1.3, and 2.7 are amended to remove references to the per- piece fee for pieces returned through merchandise return service (MRS). S923.1.11 is amended and 1.12 is removed to show that unmarked MRS pieces will be treated as Parcel Post. S923.2.3 is amended to clarify references to the annual accounting fee. S923.3.0 is amended in its entirety to clarify how postage is paid on returned pieces, to remove references to the per-piece charge, and to add the annual accounting fee for the required advance deposit account. S923.4.1 and 4.2 are amended to show that the sender (the person using the merchandise return service label to return a parcel to the permit holder) may add insurance to a MRS parcel at their own discretion and expense. S923.5.6c is amended to clarify that rate markings are optional on MRS pieces. All of the exhibits in S923 are amended to remove references to the per-piece fee. S924.1.1 is amended to add a sentence about payment information for Bulk Parcel Return Service (BPRS). S924.1.4 is added to show that no special services can be added to pieces sent through BPRS. S924.3.2, 3.3, and 3.4 are added to clarify the per-piece charges and to describe the new annual accounting fee. S924.3.5 is added to specify that the permit holder is responsible for payment of all applicable fees. Exhibit S924.5.0 is amended to change the class marking to ``Standard Mail.'' S930.1.3 is amended to specify that Signature Confirmation service can be combined with special handling. S930.1.7 is added to clarify that the Parcel Post nonmachinable surcharge is not added to parcels sent special handling. S930.2.3 is amended to specify the additional services that may be combined with parcel airlift service (PAL). Although exempt from the notice and comment requirements of the Administrative Procedure Act (5 U.S.C. 553(b), (c)) regarding proposed rulemaking by 39 U.S.C. 410(a), the Postal Service invites comments on the following revisions of the Domestic Mail Manual (DMM), incorporated by reference in the Co