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65FR31815 Preparation Changes for Palletized Standard Mail (A) and Bound Printed Matter and for Standard Mail (A) and Standard Mail (B) Claimed at DBMC Rates

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May 19, 2000, 3:00:00 AM5/19/00
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Archive-Name: gov/us/fed/nara/fed-register/2000/may/19/65FR31815
Posting-number: Volume 65, Issue 98, Page 31815

[Federal Register: May 19, 2000 (Volume 65, Number 98)]
[Rules and Regulations]
[Page 31815-31820]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19my00-9]


[[Page 31815]]

=======================================================================
-----------------------------------------------------------------------

POSTAL SERVICE

39 CFR Part 111


Preparation Changes for Palletized Standard Mail (A) and Bound
Printed Matter and for Standard Mail (A) and Standard Mail (B) Claimed
at DBMC Rates

AGENCY: Postal Service.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule sets forth the Domestic Mail Manual (DMM)
standards adopted by the Postal Service requiring mailers to utilize
one Labeling List (L605) for palletized mailings of Standard Mail (A)
packages of flats, letter trays, and sacks prepared on pallets,
regardless of whether the mail is prepared for entry at destination
bulk mail center (DBMC) rates; to require mailers to utilize Labeling
List L605 for Standard Mail (A) and Standard Mail (B) machinable
parcels prepared in sacks or on pallets for pieces claimed at DBMC
rates; to implement package reallocation between auxiliary service
facilities (ASFs) and BMCs for Standard Mail (A) packages of flats
placed on pallets; and to utilize Labeling List L605 for the
preparation of all Standard Mail (B) that is claimed at DBMC rates and
for Bound Printed Matter other than machinable parcels prepared on
pallets.

DATES: Effective date: October 15, 2000. Compliance is optional as of
October 15, 2000. Compliance will be required early January 2001 on a
date to be announced in the Federal Register that coincides with
implementation of the R2000 omnibus rate case.

FOR FURTHER INFORMATION CONTACT: Karen A. Magazino, (202) 268-3854 or
Cheryl Beller, (202) 268-5166.

SUPPLEMENTARY INFORMATION: On January 4, 2000, the Postal Service
published for public comment in the Federal Register a proposed rule
(65 FR 264-270) to allow offshore mail to ride along on DBMC pallets
(or in sacks of machinable parcels) drop shipped to destination BMCs.
In addition, the document also proposed requiring mailers to use
Labeling List L605 for all Standard Mail (A) flats, letter trays, and
sacks prepared on pallets, regardless of where the mail is deposited or
the rates are claimed. L605 currently is used for BMC and Origin BMC
(OBMC) Presort of nonmachinable Parcel Post discounts. L605 delineates
the ASF service areas and also includes the ZIP Codes for the offshore
destinations within their respective BMC service areas. With this final
rule, the offshore mail will ``ride along'' with the mail that is
eligible for DBMC rate but will not be eligible for the DBMC discount.
The benefit is that offshore mail will bypass the origin BMC and should
receive better service. The three BMCs that presently service offshore
destinations (New Jersey, San Francisco, and Seattle) already are
receiving BMC service area pallets and sacks that contain offshore mail
prepared using Labeling List L601. Therefore, the addition of offshore
mail to these DBMC containers should have no negative impact.
Requiring the use of Labeling List L605 for all Standard Mail (A)
flats, letter trays, and sacks prepared on pallets regardless of
whether DBMC rates are claimed also will ensure that the eight ASFs
always are included in the presort logic hierarchy and that ASF pallets
are prepared when the volume warrants.
Labeling List L601 will be retained and will continue to be
applicable for Standard Mail (A) and Standard Mail (B) machinable
parcels, except when DBMC rates are claimed for such mail deposited at
ASFs.
Current Labeling List L602, which contains the ZIP Code ranges for
DBMC rate eligibility, will be deleted from the DMM. This information
will appear, instead, in DMM Module E. This Final Rule does change
current standards for DBMC rate eligibility. However, DMM E651.5.0 has
been revised to reorganize and clarify eligibility requirements for
Standard Mail (A) DBMC discounts.

Package Reallocation To Protect the BMC Pallet

To ensure that the creation of an ASF pallet does not take away
from BMC pallets, the Postal Service will allow protection of the BMC
pallet through the optional use of package reallocation between a
``child'' ASF and the ``parent'' BMC pallet. Package reallocation for
protecting a BMC pallet is similar to the option implemented on July
29, 1999, for protecting the SCF pallet. In protecting a BMC pallet,
any amount of mail necessary to achieve the minimum BMC pallet weight
could be reallocated from one ASF pallet and the ASF pallet could be
eliminated if necessary. Mailers who choose to utilize package
reallocation to protect the BMC pallet must use PAVE-certified presort
software.

Utilization of Labeling Lists L601 and L605 for Preparation of
Standard Mail (B)

Rather than sorting to L601, palletized Bound Printed Matter (other
than machinable parcels) will be required to be prepared using L605 for
sortation of mail to both BMC and ASF pallets. L601 will continue to be
used for sortation of Bound Printed Matter machinable parcels both in
sacks and on pallets.
The elimination of Labeling List L602 affects Parcel Post (Parcel
Select) claimed at DBMC rates. Rather than using L602 for both DBMC
rate eligibility and mail preparation, Parcel Post (Parcel Select)
mailers claiming DBMC rates must sort to and deposit mail at a BMC or
ASF using L605. However, eligibility for the DBMC rates (which does not
change) will be determined using new DMM Exhibit E652.1.3d. For Parcel
Post (Parcel Select) machinable parcels, mailers claiming the DBMC
rates may continue the current practice of opting to sort mail using
L601 (BMC sortation only) under the condition that mail for 3-digit ZIP
Codes served by an ASF in Exhibit E652.1.3d is not eligible for DBMC
rates, nor is mail for 3-digit ZIP Codes that do not appear on Exhibit
E652.1.3d.
L605 will continue to be used for BMC Presort and OBMC Presort
mailings of nonmachinable Parcel Post. L601 will continue to be
required for machinable parcels claiming BMC Presort and OBMC Presort
rates.

Summary of Comments From the Proposed Rule

The Postal Service received three pieces of correspondence
commenting on the Proposed Rule. Respondents included one mailer and
two direct marketing companies.
The specific points raised in the comments are presented below,
organized by general comments and by specific comments on particular
issues. In addition to receiving these comments from the mailing
industry, the Postal Service has had extensive ongoing exchanges of
viewpoints with representatives of the mailing industry and software
vendors. This cooperative effort has led to the development of revised
standards that the Postal Service believes strikes a better balance
between the interests of the mailers and those of the Postal Service.

1. General Comments

Two comments were received indicating that the elimination of L602
will create a positive effect in the data processing area by using one
labeling list for packages of flats, letter trays, and sacks prepared
on pallets. Commenters further explained that it is better to use one
list for identifying where the mail is going independent of the drop
shipment process. One mailer asked if the elimination of L602 was
required to implement this rule. The elimination of L602 is necessary
because mail for offshore destinations is not entitled to

[[Page 31816]]

the DBMC rate, these ZIPS are not included in L602, and mail for
offshore destinations currently cannot be placed on DBMC pallets.
Furthermore, when a mailer is sorting a list for entry at DBMC rates
using this list, the offshore mail will be entered at the origin BMC
and must be processed at the origin BMC and transported through the
postal network to the destinating BMC that serves the offshore ZIP
Codes. In addition, the offshore mail is frequently placed in sacks
because it cannot be placed on DBMC pallets.
One commenter indicated that the creation of the ASF pallet, when
volume warrants regardless of whether or not the mail is prepared for
entry at the DBMC rates, should have a positive effect on their
manufacturing area. Currently, if mail is prepared for DBMC rates and
drop shipment is not utilized, then the pallet label must be changed to
the appropriate BMC destination. Under this final rule, this would not
happen and labor costs could be saved.

2. Eligibility of Offshore Destination Mail for the DBMC Discount

Two comments were received from direct marketing companies
proposing that the offshore destinations that ``ride-along'' with the
DBMC mail be eligible for the DBMC discount. The commenters also
indicated that their customers would be paying freight costs to move
these pieces, and will be preparing mail to enter the postal system
further into the process, but will not be compensated by receiving the
DBMC discount. The Postal Service cannot extend the DBMC discount for
offshore destinations. The Postal Service needs the rates to fully
reflect the true processing costs when offering a discount. This mail
is unusual in its origin-destination characteristics and does not
necessarily comply with the existing destination entry discount
structure. The Postal Service still incurs significant transportation
costs while moving the mail to the offshore destinations. In addition,
the Postal Service does not want to discourage mailers from taking
advantage of the DSCF discounts that are available. Sectional center
facility mail entered at these offshore destinations might revert to
DBMC entry if the DBMC discount was offered.

3. No Discounts for ASF Mail on BMC Pallets

One commenter was concerned that a discount does not exist for ASF
mail on BMC pallets. If the discount requirements were more clearly
documented, drop ship mailers could evaluate the costs and benefits of
paying transportation costs for the ASF mail. The Postal Service would
like to emphasize that the eligibility of ASF mail to qualify for the
DBMC discount has not changed. ASF pallets are allowed and required
only if the DBMC rate is claimed for mail deposited at the ASF. The
significant change resulting from this final rule is that DMM E651
Exhibit 5.1 and DMM E652 Exhibit 1.3 will be used to determine
eligibility, not Labeling List L602. If packages of flats on pallets
are reallocated from an ASF pallet to a BMC pallet under M045.6.0, mail
for the ASF ZIP Codes placed on the BMC pallet are not eligible for the
DBMC rates.

4. Machine-Readable List for Section E and the Parent/Child BMC/ASF
Table

One commenter stated that if L602 (which lists the ZIP Codes
entitled to the DBMC discount) is moved from module L to module E, then
the Postal Service must still provide a machine-readable list of these
ZIP Codes. This commenter maintains if this list is not provided in
machine-readable form, then the authors of computer presort and entry
point analysis software, such as PAVE-certified software and Mail.dat
application software, would each be required to key in updates by hand
from a hard-copy printed list. Manual updates also could create an
unacceptable amount of redundant work and would create an environment
prone to numerous errors. This commenter also stated the Parent/Child
BMC/ASF table should be made available in machine-readable form because
the proposed changes for the protected BMC pallets will make this
information increasingly important to authors of PAVE-certified and
Mail.dat application software. The Postal Service has had extensive
ongoing discussions with representatives from the USPS National
Customer Support Service center and Distribution Networks at USPS
headquarters. To address this concern the Postal Service will provide
an electronic product to mailers of the Parent/Child table and the new
Module E eligibility tables. The Postal Service believes that this
effort strikes a better balance between the interests of the mailers
and their concerns and the needs of the Postal Service to provide high
quality service and optimize operational efficiency.

5. Package Reallocation

One commenter emphasized that the package reallocation options
should be clearly stated. To clarify the package reallocation option,
the Postal Service will review the DMM language for clarification
purposes. In addition, a new Quick Service Guide will be designed to
demonstrate the standards for package reallocation, protecting the SCF
or BMC pallet level. Package reallocation will remain optional and if
performed must be done for the complete mailing job using PAVE-
certified software.

6. Lead Time for Software Vendors

One commenter indicated that the lead time for software changes
should be factored into the implementation schedule. For the required
elements, the Postal Service met with the software vendors and mailers
to discuss this concern. Based on the comments received the Postal
Service has determined to place all the provisions of this final rule
into effect on an optional basis on October 15, 2000. The required
provisions of this final rule will be required on the same date that
new rules are implemented for the R-00 Omnibus Rate Case (expected in
January 2001). Mail presented on and after that effective date must be
prepared in accordance with the required provisions of this Final Rule.
Generally, requests for exceptions to these required preparation
standards on or after the implementation date will not be honored if
the reason for the request is that software was not available to
mailers in time to prepare the mailings. It is expected that this
phased implementation period will provide software vendors and mailers
enough time to develop, test, and implement the required provisions so
that the mailings entered on or after the effective date will be
prepared under these new standards.

List of Subjects in 39 CFR Part 111

Administrative practice and procedure, Postal Service.

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, 414,
3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.


2. Revise the following sections of the Domestic Mail Manual (DMM)
as set forth below:

Domestic Mail Manual (DMM)

E ELIGIBILITY

E600 Standard Mail

* * * * *

[[Page 31817]]

E650 Destination Entry

E651 Regular, Nonprofit, and Enhanced Carrier Route Standard Mail

* * * * *
5.0 DBMC DISCOUNT

5.1 Definition

[Amend 5.1 by replacing ``L602'' with ``E651.5.0 Exhibit 5.1'' to
read as follows:]
For this standard, destination bulk mail center (DBMC) includes all
bulk mail centers (BMCs) and auxiliary service facilities (ASF's) as
shown in Exhibit 5.1.
[Add new Exhibit 5.1.]

Exhibit 5.1--BMC/ASF--DBMC Rates
----------------------------------------------------------------------------------------------------------------
Eligible destination ZIP codes DBMC pallets
----------------------------------------------------------------------------------------------------------------
005, 068-079, 085-098, 100-119, 124-127, BMC NEW JERSEY NJ 00102
340.
010-067, 120-123, 128, 129................. BMC SPRINGFIELD MA 05500
130-136, 140-149........................... ASF BUFFALO NY 140
150-168, 260-266, 439-447.................. BMC PITTSBURGH PA 15195
080-084, 137-139, 169-199.................. BMC PHILADELPHIA PA 19205
200-212, 214-239, 244, 254, 267, 268....... BMC WASHINGTON DC 20499
240-243, 245-249, 270-297, 376............. BMC GREENSBORO NC 27075
298, 300-312, 317-319, 350-352, 354-368, BMC ATLANTA GA 31195
373, 374, 377-379, 399.
299, 313-316, 320-339, 341, 342, 344, 346, BMC JACKSONVILLE FL 32099
347, 349.
369-372, 375, 380-397, 700, 701, 703-705, BMC MEMPHIS TN 38999
707, 708, 713, 714, 716, 717, 719-729.
250-253, 255-259, 400-418, 421, 422, 425- BMC CINCINNATI OH 45900
427, 430-433, 437, 438, 448-462, 469-474.
434-436, 465-468, 480-497.................. BMC DETROIT MI 48399
500-516, 520-528, 612, 680, 681, 683-689... BMC DES MOINES IA 50999
498, 499, 540-551, 553-564, 566............ BMC MPLS/ST PAUL MN 55202
570-577.................................... ASF SIOUX FALLS SD 570
565, 567, 580-588.......................... ASF FARGO ND 580
590-599, 821............................... ASF BILLINGS MT 590
463, 464, 530-532, 534, 535, 537-539, 600- BMC CHICAGO IL 60808
611, 613.
420, 423, 424, 475-479, 614-620, 622-631, BMC ST LOUIS MO 63299
633-639.
640, 641, 644-658, 660-662, 664-679, 739... BMC KANSAS CITY KS 64399
730, 731, 734-738, 740, 741, 743-746, 748, ASF OKLAHOMA CITY OK 730
749.
706, 710-712, 718, 733, 747, 750-799, 885.. BMC DALLAS TX 75199
690-693, 800-816, 820, 822-831............. BMC DENVER CO 80088
832-834, 836, 837, 840-847, 898, 979....... ASF SALT LAKE CTY UT 840
850, 852, 853, 855-857, 859, 860, 863, 864. ASF PHOENIX AZ 852
865, 870-875, 877-884...................... ASF ALBUQUERQUE NM 870
889-891, 893, 900-908, 910-928, 930-935.... BMC LOS ANGELES CA 90901
894, 895, 897, 936-966..................... BMC SAN FRANCISCO CA 94850
835, 838, 970-978, 980-986, 988-994........ BMC SEATTLE WA 98000
----------------------------------------------------------------------------------------------------------------

[Delete current 5.2 and 5.3 and replace with new 5.2 through 5.5.
Redesignate current 5.4 and 5.5 as 5.6 and 5.7.]

5.2 General Eligibility

Pieces in a mailing that meet the standards in 1.0 through 5.0 are
eligible for the DBMC rate when they meet all of the following
conditions: (1) are deposited at a BMC or ASF, (2) 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 5.1, and (3) are placed in a tray,
sack, or pallet (subject to the standards for the rate claimed) that is
labeled to the BMC or ASF where deposited, or labeled to a postal
facility within that BMC's or ASF's service area (see Exhibit 5.1). If
packages of flats on pallets are reallocated from an ASF pallet to a
BMC pallet under M045.6.0, mail for the ASF ZIP Codes placed on the BMC
pallet are not eligible for the DBMC rates. DBMC rate mail must also be
eligible for Presorted, automation, or Enhanced Carrier Route rates,
subject to the corresponding standards for those rates.

5.3 Eligibility for ADC or AADC Sortation

All pieces in an ADC or AADC sack or tray are eligible for the DBMC
discount if the ADC or AADC facility ZIP Code (as shown on Line 1 of
the corresponding container label) is within the service area of the
BMC or ASF as shown in Exhibit 5.1 at which the sack or tray is
deposited. All pieces in a palletized ADC package or bundle are
eligible for the DBMC discount if the ADC facility that is the
destination of the package or bundle (determined by using the label to
ZIP Code in Column B of L004) is within the service area of the BMC or
ASF at which it is deposited as shown in Exhibit 5.1.

5.4 Eligibility in Mixed ADC or Mixed AADC Containers

Mail in mixed ADC or mixed AADC sacks or trays qualify for the DBMC
rates only if all the pieces in the sack or tray are for the service
area of the DBMC or DASF as shown in Exhibit 5.1. Mailers who opt to
claim the DBMC rates for mail in Mixed ADC or Mixed AADC containers
must prepare separate mixed ADC or mixed AADC sacks or trays for pieces
eligible for and claimed at the DBMC rate and for pieces not claimed at
the DBMC rate. Otherwise applicable restrictions (e.g., minimum volume,
number of less-than-full trays) are excepted when necessary to comply
with this standard.

5.5 Additional Standards for Machinable Parcels

Additional standards are as follows:
a. Destination BMC/ASF Containers. Machinable parcels palletized
under M045 or sacked under M610 may be sorted to destination BMCs under
L601 or to destination BMCs and ASFs under L605. When machinable
parcels are sorted to both destination BMCs and ASFs under L605, they
qualify for DBMC rates under 5.2. Mailers also may opt to sort
machinable parcels to only destination BMCs under L601. If machinable
parcels are sorted under L601, then only mail for 3-digit ZIP Codes
served by a BMC as listed in Exhibit 5.1 are eligible for DBMC rates
(i.e., mail for 3-digit ZIP Codes served by an ASF in Exhibit 5.1 is
not eligible

[[Page 31818]]

for DBMC rates, nor is mail for 3-digit ZIP Codes that do not appear on
Exhibit 5.1).
b. Mixed BMC Containers. Pieces in mixed BMC sacks or on mixed BMC
pallets that are sorted to the origin BMC under M045 or M610 are
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.
(2) The pieces are for 3-digit ZIP Codes listed as eligible
destination ZIP Codes for that BMC in Exhibit 5.1.
* * * * *

E652 Parcel Post

1.0 BASIC STANDARDS
* * * * *

1.2 General

[Revise 1.2 to read as follows:]
For Parcel Post mailings claimed at DBMC, DSCF, or DDU rates,
pieces must meet the applicable standards in 1.0 through 6.0 and the
following criteria:
a. May be bedloaded, on pallets, in pallet boxes on pallets, in
sacks, or in other authorized containers as specified in 2.0 through
6.0, depending on the facility at which the pieces are deposited.
b. Is not plant-loaded.
c. Be part of a single mailing of 50 or more pieces that are
eligible for and claimed at any Parcel Post rate or rates.
d. Be deposited at a destination BMC (DBMC) or destination
auxiliary service facility (DASF) or other equivalent facility;
destination sectional center (DSCF); or destination delivery unit (DDU)
as applicable for the rate claimed and as specified by the USPS.
e. Be addressed for delivery within the ZIP Code ranges that the
applicable entry facility serves.
[Revise 1.3 to read as follows:]

1.3 DBMC Rates

For DBMC rates, pieces must meet the applicable standards in 1.0
through 6.0 and the following:
a. Pieces must be part of a Parcel Post mailing that is deposited
at a BMC or ASF under L605.
b. Pieces deposited at each BMC or ASF must be addressed for
delivery within the ZIP Code range of that facility.
c. Pieces must be addressed for delivery within a ZIP Code eligible
for DBMC rates under Exhibit 1.3, and if sacked or palletized must be
prepared in accordance with M041 and M045 or M630. Mail meeting the
additional criteria in 4.0 may be deposited at a designated facility
other than the BMC or ASF where the DBMC parcels would otherwise be
deposited.
[Move formerly designated 1.3 (e) and (f) to new section as 1.4 (a)
and (b).]
[Add new Exhibit 1.3]

Exhibit 1.3--BMC/ASF--DBMC Rates
----------------------------------------------------------------------------------------------------------------
Eligible destination ZIP codes DBMC pallets
----------------------------------------------------------------------------------------------------------------
005, 068-079, 085-098, 100-119, 124-127, BMC NEW JERSEY NJ 00102
340.
010-067, 120-123, 128, 129................. BMC SPRINGFIELD MA 05500
130-136, 140-149........................... ASF BUFFALO NY 140
150-168, 260-266, 439-447.................. BMC PITTSBURGH PA 15195
080-084, 137-139, 169-199.................. BMC PHILADELPHIA PA 19205
200-212, 214-239, 244, 254, 267, 268....... BMC WASHINGTON DC 20499
240-243, 245-249, 270-297, 376............. BMC GREENSBORO NC 27075
298, 300-312, 317-319, 350-352, 354-368, BMC ATLANTA GA 31195
373, 374, 377-379, 399.
299, 313-316, 320-339, 341, 342, 344, 346, BMC JACKSONVILLE FL 32099
347, 349.
369-372, 375, 380-397, 700, 701, 703-705, BMC MEMPHIS TN 38999
707, 708, 713, 714, 716, 717, 719-729.
250-253, 255-259, 400-418, 421, 422, 425- BMC CINCINNATI OH 45900
427, 430-433, 437, 438, 448-462, 469-474.
434-436, 465-468, 480-497.................. BMC DETROIT MI 48399
500-516, 520-528, 612, 680, 681, 683-689... BMC DES MOINES IA 50999
498, 499, 540-551, 553-564, 566............ BMC MPLS/ST PAUL MN 55202
570-577.................................... ASF SIOUX FALLS SD 570
565, 567, 580-588.......................... ASF FARGO ND 580
590-599, 821............................... ASF BILLINGS MT 590
463, 464, 530-532, 534, 535, 537-539, 600- BMC CHICAGO IL 60808
611, 613.
420, 423, 424, 475-479, 614-620, 622-631, BMC ST LOUIS MO 63299
633-639.
640, 641, 644-658, 660-662, 664-679, 739... BMC KANSAS CITY KS 64399
730, 731, 734-738, 740, 741, 743-746, 748, ASF OKLAHOMA CITY OK 730
749.
706, 710-712, 718, 733, 747, 750-799, 885.. BMC DALLAS TX 75199
690-693, 800-816, 820, 822-831............. BMC DENVER CO 80088
832-834, 836, 837, 840-847, 898, 979....... ASF SALT LAKE CTY UT 840
850, 852, 853, 855-857, 859, 860, 863, 864. ASF PHOENIX AZ 852
865, 870-875, 877-884...................... ASF ALBUQUERQUE NM 870
889-891, 893, 900-908, 910-928, 930-935.... BMC LOS ANGELES CA 90901
894, 895, 897, 936-966..................... BMC SAN FRANCISCO CA 94850
835, 838, 970-978, 980-986, 988-994........ BMC SEATTLE WA 98000
----------------------------------------------------------------------------------------------------------------

[Redesignate 1.4 through 1.5 as 1.5 through 1.6 and insert new
number 1.4 to read as follows:]

1.4 DSCF and DDU Rates

For DSCF and DDU rates, pieces must meet the applicable standards
in 1.0 through 1.6 and the following criteria:
[Insert old 1.3e and 1.3f as new 1.4a and 1.4b.]
* * * * *
L LABELING LISTS
* * * * *

L600 Standard Mail

[Amend the heading of Labeling List 601 by removing ``Machinable
Parcels'' to read as follows:]

L601 Bulk Mail Centers

[Revise introductory paragraph to read as follows:]
Use this list for the following:

[[Page 31819]]

(1) Standard Mail (A) machinable parcels if ASF mail is not
prepared and claimed at DBMC rates.
(2) Bound Printed Matter machinable parcels.
(3) Parcel Post if ASF mail is not prepared and claimed at DBMC
rates except non-machinable BMC and OBMC Presort rate mail.
(4) Presorted Special Standard Mail and Presorted Library Mail to
BMC destinations.
* * * * *
[Remove Labeling List 602.]
* * * * *
[Revise the heading of Labeling List 605 to read as follows:]

L605 BMCs/ASFs

[Revise introductory paragraph to read as follows:]
Use this list for the following:
(1) Standard Mail (A) pallets of packages of flats, letter trays,
and/or sacks.
(2) Parcel Post machinable parcels if ASF mail is entered at the
ASF and claimed at the DBMC rates.
(3) Standard Mail (A) machinable parcels if ASF mail is entered at
the ASF and claimed at DBMC rates.
(4) Parcel Post nonmachinable parcels claimed at OBMC and BMC
Presort rates.
(5) Bound Printed Matter packages and/or sacks on pallets.
* * * * *
M MAIL PREPARATION AND SORTATION

M000 General Preparation Standards

M010 Mailpieces

M011 Basic Standards

1.0 TERMS AND CONDITIONS
* * * * *

1.2 Presort Levels

[Amend 1.2 by revising 1.2n to read as follows:]
Terms used for presort levels are defined as follows:
* * * * *
n. ASF/BMC: all pieces are addressed for delivery in the service
area of the same auxiliary service facility (ASF) or bulk mail center
(BMC) (see L601 or L605, as applicable).
* * * * *

M040 Pallets

M041 General Standards

* * * * *
5.0 PREPARATION

5.1 Presort

[Amend 5.1 by revising the last two sentences to read as follows:]
* * * The standards for package reallocation to protect the SCF or
BMC pallet (M045.5.0 and 6.0) are optional methods of pallet
preparation designed to retain as much mail as possible at the SCF or
BMC level. These standards may result in some packages of Periodicals
and Standard Mail (A) flats and irregular parcels that are part of a
mailing job prepared in part as palletized flats at automation rates
not being placed on the finest level of pallet possible. Mailers must
use PAVE-certified presort software to prepare mailings using package
reallocation (package reallocation is optional, but, if performed, must
be done for the complete mailing job).

5.2 Required Preparation

[Amend 5.2 by revising 5.2a to read as follows:]
These standards apply to:
a. Periodicals, Standard Mail (A), and Parcel Post (other than BMC
Presort, OBMC Presort, DSCF, and DDU rate mail). A pallet must be
prepared to a required sortation level when there are 500 pounds of
Periodicals or Standard Mail packages, sacks, or parcels or six layers
of Periodicals or Standard Mail (A) letter trays. For packages of
Periodicals flats, irregular parcels, and packages of Standard Mail (A)
flats on pallets prepared under the standards for package reallocation
(M045.5.0), not all mail for a required 5-digit destination is required
to be on a 5-digit pallet or optional 5-digit scheme pallet. For
packages of Standard Mail (A) flats on pallets prepared under the
standards for package reallocation (M045.6.0), not all mail for a
required ASF pallet is required to be on an ASF pallet. Mixed pallets
of sacks, trays, or machinable parcels must be labeled to the BMC or
ADC (as appropriate) serving the post office where mailings are entered
into the mailstream. The processing and distribution manager of that
facility may issue a written authorization to the mailer to label mixed
BMC or mixed ADC pallets to the post office or processing and
distribution center serving the post office where mailings are entered.
These pallets contain all mail remaining after required and optional
pallets are prepared to finer sortation levels under M045, as
appropriate.
* * * * *
6.0 COPALLETIZED, COMBINED, OR MIXED-RATE LEVEL MAILINGS OF FLAT-SIZE
MAILPIECES
* * * * *

6.4 Standard Mail (A)

[Amend 6.4 by and replacing the first sentence with the following
sentence to read as follows:]
To copalletize different Standard Mail (A) flat-size mailings, the
mailer must consolidate on pallets all independently sorted packages
from each mailing to achieve the finest presort level for the mailing,
except that a copalletized mailing prepared under M045.5.0 or 6.0,
using package reallocation, may not always result in all packages being
placed on the finest pallet level possible.* * *
* * * * *

M045 Palletized Mailings

* * * * *
4.0 PALLET PRESORT AND LABELING

4.1 Packages, Bundles, Sacks, or Trays on Pallets

[Amend 4.1 by revising 4.1e to read as follows:]
Preparation sequence and Line 1 labeling:
* * * * *
e. As appropriate:
(1) Periodicals: ADC: required; for Line 1, use L004.
(2) Standard Mail: BMC/ASF: required, except that an ASF may not be
required if using package reallocation used under 6.0; for Line 1, use
L605.
* * * * *

4.2 Machinable Parcels--Standard Mail

[Amend 4.2 by revising 4.2b and 4.2c to read as follow:]
Preparation sequence and Line 1 labeling:
* * * * *
b. ASF: allowed and required only if DBMC rate is claimed for mail
deposited at ASF; for Line 1, use L605. Exhibit E651.5.1 or Exhibit
E652.1.3 determines DBMC rate eligibility.
c. Destination BMC: required; for Line 1, use L601 (L605 if DBMC
rate is claimed for mail deposited at ASF under 4.2b).
* * * * *
[Revise heading of 5.0 to read as follows:]

[[Page 31820]]

5.0 PACKAGE REALLOCATION TO PROTECT SCF PALLET FOR PERIODICALS FLATS
AND IRREGULAR PARCELS AND STANDARD MAIL (A) FLATS ON PALLETS

5.1 Basic Standards

[Amend 5.1 by revising the first sentence to read as follows:]
Package reallocation to protect the SCF pallet is an optional
preparation method (if performed, package reallocation must be done for
the complete mailing job); only PAVE-certified presort software may be
used to create pallets under the standards in 5.2 through 5.4 * * *
* * * * *
[Redesignate 6.0 through 14.0 as 7.0 through 15.0, respectively,
and insert new 6.0 to read as follows:]
6.0 PACKAGE REALLOCATION TO PROTECT BMC PALLET FOR STANDARD MAIL (A)
FLATS ON PALLETS

6.1 Basic Standards

Package reallocation to protect the BMC pallet level is an optional
preparation method (if performed, package reallocation to protect the
BMC pallet must be done for the complete mailing job); only PAVE-
certified presort software may be used to create pallets under the
standards in 6.2 through 6.4. The software will determine if mail

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