[Federal Register: June 10, 1997 (Volume 62, Number 111)] [Rules and Regulations] [Page 31512-31516] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr10jn97-5] ======================================================================= ----------------------------------------------------------------------- POSTAL SERVICE 39 CFR Part 111 Special Services Reform; Implementation Standards AGENCY: Postal Service. ACTION: Supplementary final rule. ----------------------------------------------------------------------- SUMMARY: This supplementary final rule sets forth the remaining Domestic Mail Manual (DMM) standards adopted by the Postal Service to implement the Decision of the Governors of the United States Postal Service on the Recommended Decision of the Postal Rate Commission on Special Services and Fees, Docket No. MC96-3. These standards constitute only minor changes or refinements to internal operational procedures that have been made since publication of the final rule in the Federal Register on May 12, 1997 (62 FR 26086-26099). The standards in this supplementary final rule do not, in any way, affect the fees or attributes of the special services as they were published in the final rule for post office box service and caller service, certified mail, insurance (insured mail and Express Mail), parcel airlift, registered mail, return receipt service, return receipt for merchandise service, and stamped cards (formerly named postal cards). Although no substantive changes have been made to the final rule, this supplementary final rule does respond to comments that the Postal Service had sought with publication of the final rule. EFFECTIVE DATE: June 8, 1997. FOR FURTHER INFORMATION CONTACT: Neil Berger, (202) 268-2859. SUPPLEMENTARY INFORMATION: On June 7, 1996, pursuant to its authority under 39 U.S.C. 3621, et seq., the Postal Service filed with the Postal Rate Commission (PRC) a request for a recommended decision on several special service reform proposals. The PRC designated the filing as Docket No. MC96-3. The PRC published a notice of the filing, with a description of the Postal Service's proposals, on June 21, 1996, in the Federal Register (61 FR 31968-31979). Pursuant to 39 U.S.C. 3624, on April 2, 1997, the PRC issued its [[Page 31513]] Recommended Decision on the Postal Service's Request to the Governors of the Postal Service. The PRC's Recommended Decision made revisions to some of the restructuring of the post office box fees requested by the Postal Service. In other areas, the PRC's Recommended Decision generally followed the requests made by the Postal Service to increase the fee for certified mail, merge the two options for return receipt service, merge the two options for return receipt for merchandise, increase the maximum available indemnity for insured mail to $5,000, add optional insurance to $5,000 for Express Mail and refine the current available indemnity structure, simplify the fee schedule for registered mail, and eliminate special delivery. Although the PRC did not recommend a fee for postal cards (renamed stamped cards), it did suggest that the Postal Service remove costs unique to stamped cards from total stamped cards and postcards subclass costs to support any proposed fee in addition to the face value of the cards. To implement the Governors' decision, the Postal Service published a final rule containing the DMM standards adopted by the Postal Service in the May 12, 1997, Federal Register (62 FR 26086-26099). The revised DMM standards took effect June 8, 1997. As explained in that final rule, because the PRC's Recommended Decision, as approved by the Governors, established standards that were not previously published for public comment in a proposed rule, the Postal Service solicited comments from customers in three areas involving implementation of the PRC's Recommended Decision and the Governors' Decision. Comments were solicited on the following standards: 1. Standards for post office box service as provided in DMM D910, including eligibility for box service in offices that offer no form of carrier delivery. 2. Standards for indemnity as provided in DMM S010, S500, and S913. 3. Standards for return receipt service and return receipt service for merchandise in DMM S915 and S917, including the merger of the options currently available. After considering the potential effects of these provisions, the Postal Service determined to allow 15 days for public comment through May 27, 1997. Although a longer comment period is usually provided, the Postal Service concluded that a 15-day comment period was warranted in this case for two reasons: 1. First, the list of provisions on which comment was sought was short and straightforward. Customers and mailers would have little difficulty evaluating the effect of these provisions on their personal or commercial mailing requirements. 2. Second, the Postal Service wanted to ensure that customers and mailers had sufficient time after the close of the comment period and publication of any possible revisions to the final rule to make the necessary changes to their operations before the June 8, 1997, implementation date. Part A of this supplementary final rule provides an analysis of comments received and the Postal Service responses. Part B describes the minor operational changes and clarifying amendments made to certain DMM standards as originally published in the final rule for post office box service and caller service. The affected text of the revised DMM standards that have been subsequently amended are published at the end of this supplementary final rule. A. Summary of Comments The Postal Service received only two pieces of correspondence offering comments on the three identified aspects of the final rule. Both commenters were individual customers. Of those aspects on which comment was sought, one commenter wrote on issues relevant to all three aspects, whereas the second commenter wrote on only return receipt service. Some of the comments did not directly address the issues as requested in the final rule; instead, they touched on minor areas not within the scope of the final rule--for example, the use of special services stamps. Although comment was sought on only three specific aspects of the final rule, one commenter submitted comments on one other issue as discussed in section 4. 1. Post Office Box Service a. Physical Address One commenter stated that the requirement in DMM D910.2.4 that a post office box applicant or current box customer must identify his or her physical address would preclude those customers who operate from a mobile home from obtaining a post office box. Furthermore, this commenter believed that any such requirement should be limited to those customers who obtain a box at the Group D or Group E fees. The Postal Service has not imposed a new requirement with the final rule. This requirement was included in the final rule for completeness and to provide readers the context for those standards that were changed by the final rule. The current box application form (PS Form 1093, Application for Post Office Box or Caller Service) requires applicants, including those who operate from a mobile home, to provide a physical address (such as that of a mobile home park). The Postal Service believes that customers already have to identify a physical address for postal as well as many nonpostal purposes, and they should be able to identify such an address when applying for a post office box. b. Box Termination One commenter stated that the regulation in DMM D910.8.2 that allows post office box service to be terminated if a box customer conducts himself or herself in a violent, threatening, or otherwise abusive manner on postal property is too subjective and should not apply only to box customers. The final rule merely codifies existing practices and policies. This regulation stems from problems that the Postal Service has experienced with box customers in particular and responds to those particular problems. Any customer whose box service is terminated on such grounds has a right of appeal as provided under DMM D910.8.3. Moreover, this basis for terminating box service has already been upheld by the Judicial Officer Department of the Postal Service, so inclusion of the language simply serves to identify all the applicable grounds for termination of box service. 2. Indemnity Standards One commenter stated that the lower bound in the first value increment for insured registered mail in DMM Exhibit R900.16.0 should be changed from $0.00 to $0.01 because the commenter asserted that insurance cannot be purchased for articles having no value. The lower bound in the first increment in the insured registry fee schedule begins at $0.00 for simplicity and parallel structure with the uninsured registry fee option. The Postal Service doubts, moreover, that customers mailing articles of no value will pay the marginally higher fee for insured registry because the option of purchasing registry without insurance will be available for a slightly lower fee. Retail postal clerks can assist customers in selecting the service option that best meets the needs of those customers. 3. Return Receipt Services Both commenters suggested that the Postal Service modify the green return receipt postcard (PS Form 3811, [[Page 31514]] Domestic Return Receipt) to enable the delivery employee to indicate on the card whether the addressee's delivery address matches the delivery address printed on the mailpiece. Currently, the delivery employee does not mark the address block on the card if the address of delivery matches the address on the mailpiece. The commenters emphasized that redesigning the card with a checkbox would provide further confirmation to the sender that the delivery address on the piece was correct. The Postal Service believes that this proposal merits adoption. This measure would provide further confirmation to the sender of the correctness of the addressee's address. The Postal Service is in the process of redesigning the return receipt card. Owing to large inventories of the current card, the Postal Service will not begin to introduce a new card until later this year. 4. Other One commenter requested that the Postal Service permit customers to use previously issued special delivery stamps for any purpose. The last special delivery stamp was issued 26 years ago in May 1971 and withdrawn from general sale in 1974. The commenter also requested that other special services stamps (certified mail, registered mail, and special handling) be valid for the particular service and that the old newspaper stamps and parcel post stamps be permitted for any use. Under DMM P022.2.2, certified mail stamps (last issued in 1955), special delivery stamps (last issued in 1974), and special handling stamps (last issued in 1955) are ``not valid to pay postage for U.S. domestic or U.S.-originated international mail.'' Although registry stamps are not listed in that regulation, they were issued on December 11, 1911, and were withdrawn from general sale on May 28, 1913. It is unlikely that customers would use these stamps to pay registry fees because these stamps have much higher value as philatelic items. Parcel post stamps, last issued in 1913, have been valid for any domestic postal purpose since July 1, 1913. Newspaper stamps were first issued in 1865 for bulk mailings of newspapers and periodicals. Starting in 1875, the stamps were affixed to special cards, canceled, and kept by the postmaster as a record of proper payment. The Post Office Department discontinued issuing these stamps on July 1, 1898. Newspaper stamps were a precursor to the current required use of advance deposit accounts to pay Periodicals postage. Currently, Periodicals mail, unlike any other class of mail, may not be paid with adhesive stamps, postage meter stamps, or permit imprint indicia. When the Post Office Department introduced many of its special services, it issued distinctive stamps to enable customers to pay the fees for the particular special service as well as serve as a means of endorsement. As a customer convenience and a cost-saving measure for the Postal Service, issuance of new special services stamps was discontinued and customers were permitted to use ordinary postage stamps to pay the postage and the applicable special service fees. To ensure proper handling, the Postal Service has required the use of endorsements to indicate the purchase of services. Since 1994, the Postal Service has required customers to use special labels for most of these special services. This policy ensures that the mail is properly handled according to the service purchased. To avoid confusion, the Postal Service does not intend to change its policy of disallowing the use of special delivery stamps. Customers who possess special delivery stamps may use them to pay the special delivery fee for international special delivery mail. Section 373 of the International Mail Manual clearly provides that the sender ``may pay the special delivery fee with special delivery stamps, postage stamps, postage validation imprinter (PVI) labels, or postage meter stamps. However, special delivery stamps may only be used for the payment of the special delivery fee.'' B. Summary of DMM Changes 1. Post Office Box Service The scope of the amendments to the final rule on post office box service under DMM D910.5.0 covers clarifying definitions to the administrative and delivery boundaries of post offices that provide delivery to other offices. Additionally, the ambiguous term ``smallest available size'' in reference to no-fee boxes available to certain customers was specified as ``the smallest box currently vacant'' rather than the smallest box installed in the particular postal facility. Further, the amended language notes that boxes at Group E fees are also available as provided under the rules for post offices without any carrier delivery. Eligibility for Group E fees was additionally defined with the exclusion of customers who receive mail at single-point delivery stops such as hotels, colleges, military installations, and transient trailer parks. Finally, McLean, VA 22103 is deleted from DMM Exhibit D910.5.3, Facilities Assigned Location-Based Box Fees, with the relocation in 1992 of that ZIP Code from a Group B location to a Group C postal facility. Customers receiving service at that ZIP Code are to be charged Group C fees. 2. Caller Service Postmasters in Group D post offices are given the option under new DMM D920.4.8 of synchronizing customer payments for caller service to April 1 and October 1 if the office has fewer than 500 post office boxes. This option was already available for post office box fees in Group D offices, but it was not available for caller service because, before the June 8 implementation of the final rule, caller service was not offered at Group D offices. Finally, McLean, VA 22103 is moved from Group B to Group C in DMM Exhibit D920.4.1, Caller Service Groups, with the relocation of that ZIP Code in 1992 from a Group B location to a Group C postal facility. Caller service customers receiving service at that ZIP Code are to be charged Group C fees. PART 111--[AMENDED] 1. The authority citation for 39 CFR part 111 continues to read as follows: Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 3001- 3011, 3201-3219, 3403-3406, 3621, 3626, 5001. 2. In view of the foregoing, amend the following sections of Domestic Mail Manual Issue 51 as set forth below: D DEPOSIT, COLLECTION, AND DELIVERY * * * * * D900 Other Delivery Services D910 Post Office Box Service * * * * * 5.0 FEE GROUP ASSIGNMENTS 5.1 Post Offices For purposes of fee group assignment, and as defined in 4.3, a post office includes all subordinate facilities or units administered by that post office, such as classified stations, classified branches, and contractor-operated facilities. Additionally, the type of carrier delivery service available at any one facility administered by a post office determines the fee group applicable to all facilities of that post office as follows: [Amend 5.1a by replacing ``boundaries of any delivery area ZIP Code'' with ``delivery ZIP Code boundaries''; by [[Page 31515]] adding ``(i.e., the smallest box currently vacant)'' after ``smallest available size''; and by adding ``Boxes at Group E fees are also available as provided under 5.1c.'' to the end of the section to read as follows:] a. Post Office With City Delivery. A post office that provides city carrier delivery at any of its administered facilities applies Group C fees, except as provided in 5.3. A customer whose physical residence or business location is within the geographic delivery ZIP Code boundaries administered by that city delivery post office, who is ineligible for any form of carrier delivery service from that post office and who does not receive carrier delivery via an out-of-bounds delivery receptacle, may obtain one box of the smallest available size (i.e., the smallest box currently vacant) at the Group E fee (no fee). Boxes at Group E fees are also available as provided under 5.1c. b. Post Office With Only Rural or Highway Contract Carrier Delivery. A post office that does not provide city carrier delivery but provides only rural carrier or highway contract carrier delivery at any of its administered facilities applies Group D fees, except as provided in 5.3, with two exceptions: [Amend 5.1b(1) by replacing ``boundaries of any delivery area ZIP Code'' with ``delivery ZIP Code boundaries''; by adding ``(i.e., the smallest box currently vacant)'' after ``smallest available size''; and by adding ``Boxes at Group E fees are also available as provided under 5.1c.'' to the end of the section to read as follows:] (1) A customer whose physical residence or business location is within the geographic delivery ZIP Code boundaries administered by that non-city delivery post office, who is ineligible for any form of carrier delivery service, who does not receive carrier delivery via an out-of-bounds delivery receptacle, and who resides outside the immediate vicinity of the post office as specified in Postal Operations Manual 653, may obtain one box of the smallest available size (i.e., the smallest box currently vacant) at the Group E fee (no fee). Boxes at Group E fees are also available as provided under 5.1c. (2) A customer whose ineligibility for carrier service arises from residing in the immediate vicinity of the post office as specified in Postal Operations Manual 653 is afforded continued access to general delivery service. [Amend 5.1c by replacing ``boundaries of other post offices'' with ``ZIP Code boundaries of another post office'' to read as follows:] c. Post Office Without Any Carrier Delivery. A post office that does not provide any form of carrier delivery (i.e., a nondelivery post office) exists within the geographic delivery ZIP Code boundaries of another post office. A nondelivery post office applies Group D fees or Group E fees (no fees), based on the box customer's physical residence or business location relative to the geographic boundaries of the post office containing the nondelivery office, as follows: [Amend 5.1c(1) by replacing in the first sentence ``inside the geographic ZIP Code boundaries'' with ``within the geographic delivery ZIP Code boundaries''; by replacing in the second sentence ``a box at either the nondelivery office or the containing delivery office'' with ``a box of any size at the nondelivery office or the smallest vacant box at the containing delivery office'' to read as follows:] (1) If the box customer's physical residence or business location is within the geographic delivery ZIP Code boundaries of the post office containing the nondelivery office, and the customer is eligible for carrier delivery service, a box at the nondelivery office is provided at the Group D fee. If the customer is not eligible for carrier delivery service and does not receive carrier delivery via an out-of-bounds delivery receptacle, a box of any size at the nondelivery office or the smallest vacant box at the containing delivery office is provided at the Group E fee (no fee). [Amend 5.1c(2) by replacing ``geographic ZIP Code boundaries'' with ``geographic delivery ZIP Code boundaries'' to read as follows:] (2) If the box customer's physical residence or business location is outside the geographic delivery ZIP Code boundaries of the post office containing the nondelivery office, a box is provided at the Group D fee. [Add new 5.1d to read as follows:] d. Single-Point Delivery. Eligibility for Group E fees does not extend to individual tenants, contractors, employees, or other individuals receiving or eligible to receive single-point delivery such as delivery to a hotel, college, military installation, or transient trailer park. [Amend 5.2 by adding ``and not under the administration of a post office'' after ``post office boxes'' to read as follows:] 5.2 Mail Processing Facilities Mail processing facilities with post office boxes and not under the administration of a post office apply Group C fees to post office boxes, except as provided in 5.3. [Amend 5.3 by removing ``McLean, VA 22103'' in Exhibit 5.3 to read as follows:] 5.3 Facilities Assigned Location-Based Box Fees The facilities defined by the ZIP Codes in Exhibit 5.3 constitute exceptions to the fee groupings described in 5.1 and 5.2. Group A or B fees apply as identified. Facilities Assigned Location-Based Box Fees--Exhibit 5.3 ---------------------------------------------------------------------------------------------------------------- Group Location ZIP Codes ---------------------------------------------------------------------------------------------------------------- A.................................. New York, NY............... 10001-10299 B.................................. Boston, MA................. 02113, 02115, 02117, 02128, 02134, 02135, 02139, 02140, 02142, 02146, 02158-02162, 02164-02168, 02178, 02179, 02181, 02205, 02214-02216, 02218, 02238 Staten Island, NY.......... 10301-10399 Long Island City, NY....... 11101-11199 Brooklyn, NY............... 11201-11299 Queens (Flushing), NY...... 11301-11399 Queens (Jamaica), NY....... 11401-11499 Queens (Far Rockaway), NY.. 11601-11699 Philadelphia, PA........... 19101-19104, 19105, 19107 Washington, DC............. 20004-20009, 20013, 20026, 20033, 20035, 20036, 20037, 20038, 20043, 20044, 20050, 20056 Bethesda, MD............... 20813, 20824, 20825, 20827 Arlington, VA.............. 22202, 22209, 22210, 22216 [[Page 31516]] Chicago, IL 60606, 60610, 60611, 60654, 60664, 60680, 60681, 60684, 60690. Los Angeles, CA............ 90019, 90024, 90025, 90034, 90035, 90048, 90049, 90064, 90067, 90069 Beverly Hills, CA.......... 90210-90212 Santa Monica, CA........... 90401-90405 San Francisco, CA.......... 94101, 94107, 94108, 94126, 94133, 94147, 94159, 94164 Honolulu, HI............... 96801-96815, 96830 ---------------------------------------------------------------------------------------------------------------- * * * * * D920 Caller Service * * * * * 4.0 BASIS OF FEES AND PAYMENT [Amend 4.1 by removing ``McLean, VA 22103'' from Exhibit 4.1 to read as follows:] 4.1 Basic Caller Fee The caller service fee groups are shown in Exhibit 4.1 and are charged per semiannual (6-month) period. The fee must be paid for each caller number or separation used, with two exceptions: * * * * * Caller Service Groups--Exhibit 4.1 ---------------------------------------------------------------------------------------------------------------- Group Location ZIP Codes ---------------------------------------------------------------------------------------------------------------- A.................................. New York, NY............... 10001-10299 B.................................. Boston, MA................. 02113, 02115, 02117, 02128, 02134, 02135, 02139, 02140, 02142, 02146, 02158-02162, 02164-02168, 02178, 02179, 02181, 02205, 02214-02216, 02218, 02238 Staten Island, NY.......... 10301-10399 Long Island City, NY....... 11101-11199 Brooklyn, NY............... 11201-11299 Queens (Flushing), NY...... 11301-11399 Queens (Jamaica), NY....... 11401-11499 Queens (Far Rockaway), NY.. 11601-11699 Philadelphia, PA........... 19101-19104, 19105, 19107 Washington, DC............. 20004-20009, 20013, 20026, 20033, 20035, 20036, 20037, 20038, 20043, 20044, 20050, 20056 Bethesda, MD............... 20813, 20824, 20825, 20827 Arlington, VA.............. 22202, 22209, 22210, 22216 Chicago, IL................ 60606, 60610, 60611, 60654, 60664, 60680, 60681, 60684, 60690 Los Angeles, CA............ 90019, 90024, 90025, 90034, 90035, 90048, 90049, 90064, 90067, 90069 Beverly Hills, CA.......... 90210-90212 Santa Monica, CA........... 90401-90405 San Francisco, CA.......... 94101, 94107, 94108, 94126, 94133, 94147, 94159, 94164 Honolulu, HI............... 96801-96815, 96830 C.................................. (1)All post offices with city delivery and all nondelivery mail processing facilities not listed in Group A or B. D.................................. (1)All post offices with no city delivery but with only rural or highway contract delivery and not listed in Group A or B. ---------------------------------------------------------------------------------------------------------------- * * * * * [Add new 4.8 to read as follows:] 4.8 Exception for Group D Offices Postmasters at Group D offices with fewer than 500 post office boxes may set April 1 and October 1 as the beginning of payment periods for caller service customers in their offices. Payment periods beginning other than April 1 or October 1 are brought into alignment with these respective dates by adjusting fees as follows: a. New service, one-sixth of the semiannual fee is charged for each remaining month between the beginning of the new payment period and the next April 1 or October 1. b. Existing service, one-sixth of the semiannual fee is charged for each remaining month between the end of all currently paid periods and the next April 1 or October 1. c. Next one or two semiannual payment periods, an adjustment may be accepted in addition to fees. * * * * * Stanley F. Mires, Chief Counsel, Legislative. [FR Doc. 97-15125 Filed 6-9-97; 8:45 am] BILLING CODE 7710-12-P