[Federal Register: July 25, 1997 (Volume 62, Number 143)] [Rules and Regulations] [Page 39946-39950] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr25jy97-21] ======================================================================= ----------------------------------------------------------------------- POSTAL SERVICE 39 CFR Part 111 Changes in Preferred Postage Rates--Periodicals and Standard Mail (A) AGENCY: Postal Service. ACTION: Postage rate changes. ----------------------------------------------------------------------- SUMMARY: Public Law 103-123 authorizes annual changes in the reduced rates formerly financed by appropriations for revenue forgone. This action implements these changes for FY 1998. EFFECTIVE DATE: The changes pertaining to postage rates will be implemented effective 12:01 a.m., Sunday, October 5, 1997. FOR FURTHER INFORMATION CONTACT: Patricia Bennett, (202) 268-6350 or Thomas DeVaughan, (202) 268-4491. SUPPLEMENTARY INFORMATION: Under 39 U.S.C. 3626(a) and 3642, the Postal Service is authorized to make annual adjustments in the Periodicals Preferred In-County per piece rates, the nonadvertising pound rates and per piece rates for Preferred Nonprofit publications, the nonadvertising pound rates and the per piece rates for Preferred Classroom publications; and postal rates for Nonprofit Standard Mail, Nonprofit Enhanced Carrier Route Standard Mail, and Library Mail. These adjustments are necessary to phase up the institutional-costs contribution of this mail to the levels required by law by FY 1999. The rates for Periodicals Science-of-Agriculture publications zones 1 and 2 will remain the same at 75 percent of the rates charged on advertising in regular-rate publications, as specified by law. These rates will not change until regular Periodicals advertising rates change through a general rate case. On June 2, 1997, the Board of Governors of the Postal Service, pursuant to its authority under 39 U.S.C. 3625(f), determined to implement the permanent rate changes for Classroom Periodicals approved by the Governors effective at 12:01 a.m. on October 5, 1997 (Resolution No. 97-9). The Board also determined in Resolution No. 97-9 to exercise its authority under 39 U.S.C. 3642 to establish temporary phased rates for Classroom Periodicals for FY 1998 at Step 5 of phasing schedule attached to the Resolution. The Step 5 rates for Classroom Periodicals will be implemented on October 5, 1997. Due to rounding adjustments, there are no changes to Library Mail rates. Under both the new permanent and temporary rate schedules for Classroom Periodicals, no discount will be available for ZIP+4 letter mail. In this respect, Classroom will join the other preferred subclasses of Periodicals, for which the ZIP+4 letter discount category was eliminated in the earlier portions of Docket No. MC96-2. In the past, only a minute portion of Classroom mail has qualified for the ZIP+4 letter discount. All references to Domestic Mail Manual (DMM) are based on DMM Issue 52 (July 1, 1997). List of Subjects in 39 CFR Part 111 Postal Service. [[Page 39947]] For the reasons discussed above, the Postal Service hereby adopts the following amendments to the Domestic Mail Manual, which is incorporated by reference in the Code of Federal Regulations (see 39 CFR Part 111). 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. Revise the following sections of the Domestic Mail Manual as set forth below: Domestic Mail Manual (DMM) C CHARACTERISTICS AND CONTENT C800 Automation-Compatible Mail C810 Letters and Cards * * * * * 2.0 DIMENSIONS * * * * * 2.3 Maximum Weight [Amend 2.3a and 2.3f to read as follows:] Maximum weight limits are as follows: a. 2.5 ounces: upgradable Presorted First-Class Mail and upgradable nonautomation Standard Mail. * * * * * f. 3.3362 ounces: automation First-Class Mail, automation Periodicals, and automation Nonprofit Standard Mail heavy letters, subject to 7.5. * * * * * C840 Barcoding Standards * * * * * 2.0 BARCODE LOCATION--LETTER-SIZE PIECE 2.1 Barcode Clear Zone [Amend the first sentence of 2.1 by removing ``each piece of ZIP+4 Classroom Periodicals'' to read as follows:] Each letter-size piece in an automation rate mailing and each piece of upgradable Presorted First-Class Mail or upgradable Standard Mail (A) must have a barcode clear zone unless the piece bears a DPBC in the address block. * * * * * * * * E ELIGIBILITY * * * * * E200 Periodicals * * * * * E240 Automation Rates 1.0 BASIC STANDARDS 1.1 All Pieces [Amend the introductory sentence to read as follows:] All pieces in an automation Periodicals mailing must: * * * * * [Revise the heading of 2.0 to read as follows:] 2.0 RATE APPLICATION [Revise the heading of 2.1 to read as follows:] 2.1 Letters--Other Than Classroom Periodicals [Amend 2.1b and 2.1d to read as follows:] Automation rates apply to each letter-size piece that is sorted under M810 into the corresponding qualifying groups: * * * * * b. Groups of 150 or more pieces in 5-digit, 5-digit scheme, or unique 3-digit trays (and all pieces in one less-than-full overflow tray) qualify for the 3/5 automation Regular, or Nonprofit rate, as applicable. * * * * * d. Pieces for a unique 3-digit destination that is part of a 3- digit scheme group in L003 qualify for the 3-digit automation In-County rate or the 3/5 automation Regular, or Nonprofit rate, as applicable, when placed in a 3-digit scheme tray if grouped separately from pieces for other 3-digit areas. [Redesignate current 2.2 as 2.3; redesignate and rename current 3.2 as 2.2; and amend redesignated 2.2 to read as follows:] 2.2 Letters--Classroom Periodicals Automation rates apply to each letter-size piece that is sorted under M810 into the corresponding qualifying groups: a. Groups of 150 or more pieces in 5-digit or 5-digit scheme trays (and all pieces in one less-than-full overflow tray) qualify for the 5- digit automation rate. b. Groups of 150 or more pieces in unique 3-digit trays (and all pieces in one less-than-full overflow tray) qualify for the 3-digit automation rate. c. Pieces for a unique 3-digit destination that is part of a 3- digit scheme group in L003 qualify for the 3-digit automation rate when placed in a 3-digit scheme tray if grouped separately from pieces for other 3-digit areas. d. Groups of fewer than 150 pieces in origin/entry 3-digit/scheme trays and groups of 150 or more pieces in other 3-digit, 3-digit scheme, or AADC trays and all pieces in mixed AADC trays qualify for the basic automation rate. [Delete current 3.0.] * * * * * E600 Standard Mail E610 Basic Standards * * * * * E612 Additional Standards for Standard Mail (A) * * * * * 4.0 BULK RATES * * * * * 4.2 Minimum Per Piece Rates [Amend 4.2 by revising the first sentence to read as follows:] The minimum per piece rates (i.e., the minimum postage that must be paid for each piece) apply to Enhanced Carrier Route rate pieces weighing no more than 0.2066 pound rounded (3.3062 ounces rounded); Regular nonautomation and automation rate pieces weighing no more than 0.2068 pound rounded (3.3087 ounces rounded); Nonprofit Enhanced Carrier Route rate pieces weighing no more than 0.2084 pound rounded (3.3348 ounces rounded); and Nonprofit nonautomation and automation rate pieces weighing no more than 0.2085 pound rounded (3.3362 ounces rounded.) * * * * * * * * M MAIL PREPARATION AND SORTATION * * * * * M000 General Preparation Standards M010 Mailpieces M011 Basic Standards 1.0 TERMS AND CONDITIONS * * * * * 1.3 Preparation Instructions [Amend 1.3g and 1.3h by removing the last sentence of each: ``Scheme sortation is not available for ZIP+4 Classroom Periodicals.''; no other change to text.] * * * * * M012 Markings and Endorsements * * * * * 4.5 OCR Read Area [Amend 4.5 to read as follows:] Any printing (including an endorsement or return address) on upgradable letter-size First-Class Mail or Standard Mail (A) must not interfere [[Page 39948]] with the delivery address lines within the OCR read area defined in C830. * * * * * M032 Barcoded Labels * * * * * 1.0 BASIC STANDARDS--TRAY AND SACK LABELS * * * * * 1.3 Content Line (Line 2) [Amend Exhibit 1.3a by removing the following two content identifier numbers (CINs) from the exhibit:] * * * * * PER Letters-ZIP+4 Presort (Classroom publications only) All tray levels--349 PER LTRS UPGR * * * * * NEWS Letters-ZIP+4 Presort (Classroom publications only) All tray levels--449 NEWS LTRS UPGR * * * * * M800 All Automation Mail M810 Letter-Size Mail 1.0 BASIC STANDARDS * * * * * 1.2 Mailings [Amend 1.2 by removing the last sentence to read as follows:] All pieces in a mailing must meet the standards in C810 and must be sorted together to the finest extent required. A single automation rate mailing may include pieces prepared at 5-digit, 3-digit, 3/5, and basic automation rates, as applicable; all may be reported on the same postage statement and documentation. The definitions of a mailing and permissible combinations are in M011. * * * * * 3.0 PERIODICALS 3.1 Tray Preparation [Amend 3.1a and 3.1b to read as follows:] Tray size, preparation sequence, and Line 1 labeling: a. 5-digit/scheme: 5-digit trays required (150-piece minimum), 5- digit scheme trays optional (150-piece minimum); overflow trays allowed; for Line 1, for required 5-digit trays use 5-digit ZIP Code destination of pieces, preceded for military mail by the prefixes under M031; for Line 1, for optional 5-digit scheme trays, use destination shown in the current City State File. b. 3-digit/scheme: required (150-piece minimum except no minimum for required origin/optional entry 3-digit(s)/scheme); overflow allowed; for Line 1, use L002, Column B. * * * * * P POSTAGE AND PAYMENT METHODS P000 Basic Information P010 General Standards * * * * * P013 Rate Application and Computation * * * * * 4.0 RATE APPLICATION--STANDARD MAIL (A) * * * * * 4.3 Bulk Rates [Amend 4.3 to read as follows:] Bulk rates are based on the weight of the pieces and are applied differently to pieces weighing less than or equal to a ``breakpoint'' (rounded to four decimal places) and those weighing more, as follows: a. The appropriate minimum per piece rate applies to pieces weighing 0.2066 pound (3.3062 ounces) or less (Enhanced Carrier Route rates), 0.2068 pound (3.3087 ounces) or less (Regular rates), 0.2084 pound (3.3348 ounces) or less (Nonprofit Enhanced Carrier Route rates), or 0.2085 pound (3.3362 ounces) or less (Nonprofit rates). b. A rate determined by adding the appropriate fixed per piece charge and the corresponding variable per pound charge (based on the weight of the piece) applies to pieces weighing more than 0.2066 pound (3.3062 ounces) (Enhanced Carrier Route rates), 0.2068 pound (3.3087 ounces) (Regular rates), 0.2084 pound (3.3348 ounces) (Nonprofit Enhanced Carrier Route rates), or 0.2085 pound (3.3362 ounces) (Nonprofit rates). * * * * * R RATES AND FEES * * * * * R100 First-Class Mail * * * * * [Amend footnote 3 of ``Summary of First-Class Rates'' chart to read as follows:] \3\ Weight not to exceed 3.3362 ounces; pieces over 3 ounces subject to additional standards. * * * * * R200 Periodicals * * * * * 2.0 PREFERRED--IN-COUNTY * * * * * 2.2 Piece Rates [Revise 2.2 to read as follows:] Per addressed piece: ------------------------------------------------------------------------ Automation \1\ ------------------- Presort level Nonautomation Letter- Flat- size size ------------------------------------------------------------------------ Basic................................ $0.082 $0.082 $0.082 3/5.................................. 0.067 3-Digit.............................. 0.078 5-Digit.............................. 0.065 Carrier Route........................ 0.044 High Density......................... 0.039 Saturation........................... 0.037 ------------------------------------------------------------------------ \1\ Lower maximum weight limits apply: letter-size at 3 ounces (or 3.3362 ounces for heavy letters); flat-size at 16 ounces. * * * * * 3.0 PREFERRED--NONPROFIT 3.1 Pound Rates [Amend 3.1a to read as follows:] Per pound or fraction: a. For the nonadvertising portion: $0.142 * * * * * 3.2 Piece Rates [Revise 3.2 to read as follows:] Per addressed piece: ------------------------------------------------------------------------ Automation\1\ ------------------- Presort level Nonautomation Letter- Flat- size size ------------------------------------------------------------------------ Basic................................ $0.217 $0.187 $0.193 3/5.................................. 0.172 ........ 0.148 3-Digit.............................. ............. 0.149 ........ 5-Digit.............................. ............. 0.149 ........ Carrier.............................. 0.105 ........ ........ Route................................ ............. ........ ........ High................................. 0.098 ........ ........ Density.............................. ............. ........ ........ Saturation........................... 0.084 ........ ........ ------------------------------------------------------------------------ \1\ Lower maximum weight limits apply: letter-size at 3 ounces (or 3.3362 ounces for heavy letters); flat-size at 16 ounces. * * * * * 4.0 PREFERRED--CLASSROOM 4.1 Pound Rates [Revise 4.1 to read as follows:] Per pound or fraction: a. For the nonadvertising portion: $0.143 b. For the advertising portion: ------------------------------------------------------------------------ Zone Rate ------------------------------------------------------------------------ Delivery Unit................................................ $0.169 SCF.......................................................... 0.190 1 & 2........................................................ 0.214 3............................................................ 0.224 4............................................................ 0.251 5............................................................ 0.292 6............................................................ 0.336 7............................................................ 0.388 [[Page 39949]] 8............................................................ 0.432 ------------------------------------------------------------------------ 4.2 Piece Rates [Revise 4.2 to read as follows:] Per addressed piece: ------------------------------------------------------------------------ Automation\1\ ------------------- Presort level Nonautomation Letter- Flat- size size ------------------------------------------------------------------------ Basic................................ $0.211 $0.191 $0.184 3/5.................................. 0.160 ........ 0.142 3-Digit.............................. ............. 0.148 ........ 5-Digit.............................. ............. 0.140 ........ Carrier Route........................ 0.115 ........ ........ High Density......................... 0.113 ........ ........ Saturation........................... 0.107 ........ ........ ------------------------------------------------------------------------ \1\ Lower maximum weight limits apply: letter-size at 3 ounces (or 3.3362 ounces for heavy letters); flat-size at 16 ounces. 4.3 Discounts [Amend 4.3 to read as follows:] Piece rate discounts: a. Nonadvertising adjustment for each 1% of nonadvertising content: $0.00042 per piece. b. Delivery unit zone piece discount or each addressed piece claimed in the pound rate portion at the delivery unit zone rate: $0.006. c. SCF zone piece discount for each addressed piece claimed in the pound rate portion at the SCF zone rate: $0.004. * * * * * R600 Standard Mail * * * * * 4.0 NONPROFIT STANDARD MAIL [Revise 4.0 to read as follows:] 4.1 Letter-Size Minimum Per Piece Rates Pieces 0.2085 pound (3.3362 ounces) or less: ---------------------------------------------------------------------------------------------------------------- Nonautomation Automation \1\ Entry discount ---------------------------------------------------------------- Basic 3/5 Basic 3-Digit 5-Digit ---------------------------------------------------------------------------------------------------------------- None........................................... $0.135 $0.117 $0.102 $0.098 $0.085 DBMC........................................... 0.122 0.104 0.089 0.085 0.072 DSCF........................................... 0.117 0.099 0.084 0.080 0.067 DDU............................................ ........... ........... ........... ........... ........... ---------------------------------------------------------------------------------------------------------------- \1\ Pieces weighing over 3 ounces subject to additional standards. 4.2 Nonletter-Size Minimum Per Piece Rates Pieces 0.2085 pound (3.3362 ounces) or less: ---------------------------------------------------------------------------------------------------------------- Nonautomation Automation \1\ Entry discount --------------------------------------------------- Basic 3/5 Basic 3/5 ---------------------------------------------------------------------------------------------------------------- None........................................................ $0.198 $0.149 $0.174 $0.125 DBMC........................................................ 0.185 0.136 0.161 0.112 DSCF........................................................ 0.180 0.131 0.156 0.107 DDU......................................................... ........... ........... ........... ........... ---------------------------------------------------------------------------------------------------------------- \1\ Available only for automation-compatible flats. 4.3 Piece/Pound Rates Pieces more than 0.2085 pound (3.3362 ounces): ---------------------------------------------------------------------------------------------------------------- Nonautomation Automation \2\ Piece/pound rate \1\ --------------------------------------------------- Basic 3/5 Basic 3/5 ---------------------------------------------------------------------------------------------------------------- Per Piece................................................... $0.100 $0.04 $0.076 $0.024 Per Pound (includes entry discount if applicable)........... PLUS PLUS PLUS PLUS None........................................................ 0.470 0.484 0.470 0.484 DBMC........................................................ 0.408 0.422 0.408 0.422 DSCF........................................................ 0.382 0.396 0.382 0.396 DDU......................................................... ........... ........... ........... ........... ---------------------------------------------------------------------------------------------------------------- \1\ Each piece is subject to both a piece rate and a pound rate. \2\ Available only for automation-compatible flats. 5.0 NONPROFIT ENHANCED CARRIER ROUTE STANDARD MAIL 5.1 Letter-Size Minimum Per Piece Rates [Revise 5.1 to read as follows:] Pieces 0.2084 pound (3.3348 ounces) or less: ---------------------------------------------------------------------------------------------------------------- Nonautomation Automation \1\ --------------------------------------------------- Entry discount High Basic density Saturation Basic ---------------------------------------------------------------------------------------------------------------- None........................................................ $0.093 $0.087 $0.081 $0.082 DBMC........................................................ 0.080 0.074 0.068 0.069 DSCF........................................................ 0.075 0.069 0.063 0.064 [[Page 39950]] DDU......................................................... 0.069 0.063 0.057 0.058 ---------------------------------------------------------------------------------------------------------------- \1\ Pieces weighing over 3 ounces subject to additional standards. * * * * * An appropriate amendment to 39 CFR 111.3 will be published to reflect these changes. Stanley F. Mires, Chief Counsel, Legislative. [FR Doc. 97-19640 Filed 7-24-97; 8:45 am] BILLING CODE 7710-12-U