Federal Register / Vol. 69, No. 145 / Thursday, July 29, 2004 / Rules and Regulations 45259

SUMMARY: The U.S. Army Corps of Area would have no impact on the § 334.783 Arlington Channel, U.S. Coast Engineers is amending its regulations to public, no anticipated navigational Guard Base Mobile, Mobile, Alabama, Coast establish a Restricted Area in the waters hazard or interference with existing Guard Restricted Area. of Arlington Channel surrounding the waterway traffic, and accordingly, (a) The area. The waters of Arlington U.S. Coast Guard Base Mobile Docks at certifies that this proposal, if adopted, Channel west of a line from latitude Mobile, Alabama. The designation will have no significant economic 30°–39′—09′′N, longitude 088°–03′–24′′ would ensure public safety and satisfy impact on small entities. W to latitude 30°–38′–54°° N., longitude the security, safety, and operational 088′–03°–17′′ W. C. Review Under the National requirements as they pertain to vessels (b) The regulations. The restricted Environmental Policy Act at Coast Guard Base Mobile, by area is open to U.S. Government vessels establishing an area into which The Mobile District has prepared an and transiting vessels only. U.S. unauthorized vessels and persons may Environmental Assessment (EA) for this Government vessels include U.S. Coast not enter. action. We have concluded that this Guard vessels, Department of Defense vessels, state and local law enforcement DATES: Effective August 30, 2004. action will not have a significant impact on the human environment, and and emergency services vessels and ADDRESSES: U.S. Army Corps of vessels under contract with the U.S. Engineers, ATTN: CECW–OR, 441 G preparation of an Environmental Impact Statement (EIS) is not required. The EA Government. Vessels transiting the Street, NW., Washington, DC 20314– restricted area shall proceed across the 1000. will be available for review at the Mobile District office listed at the end area by the most direct route and FOR FURTHER INFORMATION CONTACT: Ms. without unnecessary delay. Fishing, of the FOR FURTHER INFORMATION Joanne M. Barry, Headquarters trawling, net-fishing and other aquatic CONTACT paragraph above. Regulatory Branch at (202) 761–7763 or activities are prohibited in the restricted Mr. John B. McFadyen, Corps Mobile D. Unfunded Mandates Act area without prior approval from the District, at (251) 690–3261. Commanding Officer, U.S. Coast Guard This rule does not impose an SUPPLEMENTARY INFORMATION: Pursuant Group Mobile or his designated enforceable duty among the private to its authorities in Section 7 of the representative. sector and, therefore, is not a Federal Rivers and Harbors Act of 1917 (40 Stat. (c) Enforcement. The regulations in private sector mandate and is not 266; 33 U.S.C. 1) and Chapter XIX of the this section shall be enforced by the subject to the requirements of Section Army Appropriation Act of 1919 (40 Commanding Officer, U.S. Coast Guard 202 or 205 of the Unfunded Mandates Stat.892; 33 U.S.C. 3) the Corps is Group Mobile or his designated Act. We have also found under Section amending the Restricted Area representative. 203 of the Act that small governments regulations in 33 CFR Part 334 by will not be significantly and uniquely Dated: July 21, 2004. establishing a new Restricted Area at affected by this rulemaking. Michael B. White, 334.783, in the waters of Arlington Chief, Operations Division, Directorate of Channel surrounding U.S. Coast Guard E. Submission to Congress and the Civil Works. Base Mobile at Mobile, Alabama. The General Accounting Office [FR Doc. 04–17263 Filed 7–28–04; 8:45 am] points defining the proposed restricted BILLING CODE 3710–92–P area were selected to minimize Pursuant to Section 801(a)(1)(A) of the interference with other users of Administrative Procedure Act, as amended by the Small Business Arlington Channel, and to minimize the POSTAL SERVICE restricted area’s interference with Regulatory Enforcement Fairness Act of 1996, the Army has submitted a report commercial and recreational fisheries. 39 CFR Part 111 In addition to the publication of the containing this rule to the U.S. Senate, proposed rule, the Mobile District the U.S. House of Representatives, and Merged Five-Digit and Five-Digit Engineer published public notices dated the Comptroller General of the General Scheme Pallets for Periodicals, 18 July 2003 and 20 April 2004. No Accounting Office. This rule is not a Standard Mail, and Package Services objections to establishment of the final major rule within the meaning of Mail Restricted Area were received. Section 804(2) of the Administrative Procedure Act, as amended. AGENCY: Postal Service. Procedural Requirements ACTION: Final rule. List of Subjects in 33 CFR Part 334 A. Review Under Executive Order 12866 SUMMARY: This final rule amends Danger zones, Marine safety, This rule is issued with respect to mailing standards in the Domestic Mail Navigation (water), Restricted areas, security and safety functions of the U.S. Manual (DMM TM) to allow mailers to Waterways. Coast Guard and the provisions of merge (place together) on the same 5- Executive Order 12866 do not apply. I For the reasons set out in the preamble, digit scheme pallet (using labeling list DMM L001) or same 5-digit pallet both B. Review Under the Regulatory we are amending 33 CFR Part 334 to read carrier route bundles of flat-size or Flexibility Act as follows: irregular parcel mailpieces and This rule has been reviewed under the PART 334—DANGER ZONE AND noncarrier route 5-digit bundles of flat- Regulatory Flexibility Act (Pub. L. 96– RESTRICTED AREA REGULATIONS size mailpieces not meeting the criteria 354), which requires the preparation of for the automated flat sorting machine a regulatory flexibility analysis for any I 1. The authority citation for Part 334 (AFSM) 100, as well as noncarrier route regulation that will have a significant continues to read as follows: 5-digit bundles of irregular parcel economic impact on a substantial Authority: 40 Stat. 266; (33 U.S.C. 1) and mailpieces. number of small entities (i.e., small 40 Stat. 892; (33 U.S.C. 3). Prior to this amendment, mailing businesses and small governments). The standards for palletizing mail under Corps expects that the economic impact I 2. Section 334.783 is added to read as DMM M045 permitted mailers to merge of the establishment of this Restricted follows: carrier route bundles and noncarrier

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route 5-digit bundles of flat-size pieces have the 5-digit bundles of UFSM 1000- two printers and mail service providers, only, and only on 5-digit metro pallets, compatible flats merged on the same 5- and one software developer. The Postal 3-digit pallets, sectional center facility digit or 5-digit scheme pallets with the Service appreciates the time, effort, and (SCF) pallets, area distribution center corresponding carrier route bundles so thought taken by these parties in (ADC) pallets (for Periodicals mail that both the carrier route mail and the preparing the comments. The comments only), auxiliary service facility (ASF) noncarrier route mail can be cross- have each been identified and, when pallets (for Standard Mail and Package docked to the delivery unit at the mail possible, grouped together under the Services pieces only), and bulk mail processing facility. same heading. The Postal Service has center (BMC) pallets (for Standard Mail The addition of these merged pallet carefully reviewed these comments and and Package Services pieces only). sort levels to the existing pallet sort has provided responses below. DATES: Effective date: September 2, levels should increase operational Compliance Date 2004. Compliance date: Mailings efficiencies by reducing the total presented for verification and number of pallets that must be prepared. Comment. All five parties approved acceptance after 12:01 a.m. on These additional pallet levels should the proposed rule, with three expressly Thursday, January 6, 2005, must comply also improve customer service by citing the benefits that both the mailing with this rule. transporting more mail closer to the industry and the Postal Service would gain from the implementation of this FOR FURTHER INFORMATION CONTACT: point of delivery. Unlike the limitations Neil rule. One commenter stated that the Berger, Mailing Standards, at (202) 268– in DMM M920, M930, and M940, preparation of merged 5-digit scheme implementation of this rule would 7267; or Thomas L. DeVaughan, improve mail preparation and mail Operational Requirements, at (202) 268– and merged 5-digit pallets under revised M045.3.0 is accomplished without entry, increase operational and 7643. distribution efficiencies, and enhance SUPPLEMENTARY INFORMATION: Before the limitations (that is, without the use of the ‘‘A’’ and ‘‘C’’ or the ‘‘B’’ and ‘‘D’’ service for the mailing industry and the effective date of this final rule, pallet Postal Service. Another commenter preparation standards in DMM indicators in the City State Product, along with a 5 percent threshold for 5- believed that the major change from the M045.3.0 prohibited mailers from implementation of this rule would be merging (placing together) carrier route digit noncarrier route bundles). Besides adding the new merged pallet the placement of mail on 5-digit pallets, bundles and noncarrier route 5-digit increasing productivity for the mailing bundles of flat-size pieces on the same levels in DMM M045, this final rule: • Standardizes the presentation and industry and the Postal Service. Another 5-digit scheme pallet or on the same 5- language of mailing standards used for commenter noted that the digit pallet until the ‘‘5-digit metro’’ pallet preparation and labeling in DMM implementation of this rule would allow pallet level had been reached. Mailers E230, L001, L802, M011, M041.5.0, and better utilization of mailers’ equipment wanting to perform such mergers at a M045.3.0, including the standards for and, equally important, that it would finer pallet level previously had to use Package Services irregular parcels and reduce the number of times that certain the preparation options in DMM M900. for Standard Mail and Package Services 5-digit palletized mail is handled, Those optional standards, however, are machinable parcels. decreasing potential damage to the mail limited to flat-size mail only, and were • Clarifies the rate eligibility for before delivery to customers. generally developed for application On account of the benefits that the Periodicals irregular parcels in DMM with flat-size mailpieces compatible mailing industry and the Postal Service E220 and for Standard Mail irregular with the automated flat sorting machine would derive from this rule, one parcels in DMM E620. 100 (AFSM 100). These optional commenter specifically requested • Clarifies the availability of DMM standards will continue to be available immediate implementation of the rule. M045.3.0 for palletizing flat-size for mailer use. Another commenter, however, believed mailpieces cobundled under DMM The previous prohibition on merged that an implementation date in January M950. 5-digit scheme and merged 5-digit 2005 would be more appropriate than • Replaces the term ‘‘package’’ with pallets under M045.3.0 also applied to an immediate implementation date, ‘‘bundle’’ when referring to multiple bundles of all flats, including upgraded given the number of changes in the rule flat sorting machine (UFSM) 1000- pieces prepared as a single unit to a and the additional complexities compatible automation flats and presort destination. This change was associated with those changes. The irregular parcels (generally flat-shaped announced in Postal Bulletin 22132 (7– same commenter also noted that many pieces exceeding the maximum 8–04, page 35). vendors and developers supplying dimensions for flats). The operational Comments presort software used by mailers would need for this prohibition, however, is be shipping releases early this summer relevant only to flat-size pieces Background in support of the August 1 compatible with the AFSM 100. DMM On April 26, 2004, the Postal Service implementation of the new minimum criteria for AFSM 100-compatible flats published a proposed rule in the volume requirements for 5-digit scheme (DMM C820.2.0) can be viewed using Federal Register (69 FR 22464–22470) and (individual) 5-digit bundles for Postal Explorer at http://pe.usps.gov. that amended mailing standards in the Standard Mail flat-size pieces. The final Five-digit bundles of non-AFSM 100- Domestic Mail Manual (DMM) by requirements were first published on compatible flat-size pieces (that is, flats adding merged 5-digit scheme (DMM April 1 in the Federal Register. See 69 meeting the physical criteria of the L001) and merged 5-digit pallet sort FR 17059–17063. UFSM 1000 under DMM C820.3.0) are levels to the sequence of sort levels Response. In view of the many further sorted to carrier routes at the already available in DMM M045.3.0 for operational efficiencies and improved delivery unit, where the carriers prepare Periodicals, Standard Mail, and Bound service that mailers would gain from the mail for delivery, rather than the mail Printed Matter pieces. change to current pallet preparation processing facility, where employees The Postal Service received comments standards in DMM M045.3.0, yet still handle and stage the palletized mail on the proposed rule from five different mindful of the complications posed by before its transport to the delivery unit. parties, all involved in some aspect of immediate implementation, the Postal As a consequence, it is more practical to mail preparation: two national mailers, Service has determined to make this

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rule optional at first, with an effective compatible flat-size pieces were standards for Standard Mail rates in date of September 2, 2004, and then permitted, and no noncarrier route DMM E620.2.0. mandatory, with an effective date of pieces were on the same pallet, the The commenter believed that irregular January 6, 2005 (both dates coinciding pallet would be essentially no different parcels prepared in 5-digit and 3-digit with monthly online updates of the from a 5-digit scheme carrier routes bundles and placed in or on the electronic DMM). The mandatory pallet. appropriate containers, including compliance date of January 6, 2005, The commenter noted that wording in pallets, should be eligible for the should give mailers and software the proposed rule for this sort level corresponding rates for Periodicals mail developers sufficient time to prepare for stipulated that bundles containing (either 5-digit or 3-digit rate) and for this change and make appropriate noncarrier route AFSM 100-compatible Standard Mail (3/5 rate) service. adjustments to their internal mailing flats under C820.2.0 are not permitted Response. The Postal Service believes operations. on the merged 5-digit scheme and that pallet preparation standards and The use of an advance (optional) merged 5-digit pallets. By contrast, rate eligibility standards should effective date before the mandatory bundles of carrier route AFSM 100- represent clearly and reflect accurately compliance date complicates the online compatible flats and bundles of carrier the relationship between the two. The presentation and the continued route UFSM 1000-compatible flats are following explanation for both availability of the existing mailing both permitted on the same merged Periodicals rates and Standard Mail standards for palletized mail. Beginning pallet. rates for palletized bundles reconciles on September 2, 2004, mailers may use Response. The Postal Service and clarifies this relationship. either the existing standards or the new acknowledges that the commenter is Periodicals Rates standards for palletizing mail. correct in questioning how a pallet with Beginning on January 6, 2005, the new only carrier route mail could be The Periodicals rate structure standards must be used exclusively. The designated as a merged pallet. By its recognizes nonautomation rates and new standards are designated as DMM very definition, a merged pallet must automation rates. Automation rates are M045.3.0 as presented in this final rule. contain not only carrier route mail but further divided into two separate rate The existing standards are placed at the also noncarrier route mail (presorted categories: one for letter-size mail end of DMM M045 and redesignated as rate mail and/or automation rate mail). meeting the physical characteristics in new DMM M045.15.0. This placement The proposed rule presented the correct DMM C810, and one for flat-size mail simplifies their elimination when the definitions of merged pallets in various meeting the physical characteristics in new standards become mandatory on sections in revised DMM M011.1.2 and DMM C820. Similar to First-Class Mail January 6, 2005. M011.1.3, but failed to carry those Presorted rates, Periodicals definitions forward to the proposed nonautomation piece rates make no rate Abbreviation of ‘‘Scheme’’ on Pallet pallet preparation standards in DMM distinction by processing category. Labels M045.3.0 for merged 5-digit scheme The wording for presorted rate Comment. One commenter requested (DMM L001) and merged 5-digit pallets. eligibility standards has therefore been that the mailing standards for labeling The final rule corrects the wording revised to reflect the actual intent of the scheme pallets consistently permit the throughout DMM M045.3.0 by requiring rate structure as presented in the optional use of the abbreviation ‘‘SCH’’ the placement of either presorted rate or Domestic Mail Classification Schedule, for ‘‘SCHEME’’ for all applicable sort automation rate mail or both on the which classifies Periodicals rate levels. In the proposed rule, for same pallet with the carrier route mail. categories as nonautomation, example, DMM M045.3.1a permits only automation letter, and automation flat. ‘‘SCHEME’’ on pallet labels for merged UFSM 1000 Flats on Pallets Under For purposes of mail preparation, the 5-digit scheme pallets, whereas DMM DMM M930 and M940 revised wording in DMM E220.2.0 M045.3.1b permits either ‘‘SCHEME’’ or Comment. One commenter requested distinguishes between letter-size mail the abbreviation ‘‘SCH’’ for pallet labels clarification whether mailers preparing and nonletter-size mail (which includes for 5-digit scheme carrier routes pallets. mailings of UFSM 1000-compatible flats flat-size mailpieces and irregular parcel Response. The Postal Service agrees could still palletize those mailings mailpieces). As a result, this final rule with the commenter’s request and has under DMM M930 and M940. aligns the revised rate eligibility corrected this oversight in the final rule. Response. The Postal Service assures standards for irregular parcels with the The pallet labeling instructions now mailers that they may continue using pallet preparation standards for consistently permit the optional the preparation options in DMM M930 irregular parcels. Neither the proposed alternative abbreviation ‘‘SCH’’ for and M940 for palletizing UFSM 1000- rule nor this final rule changes the ‘‘SCHEME’’ at all sort levels. compatible flats. For many mailers, Periodicals rate eligibility standards in however, the revisions to M045.3.0 effect since January 10, 1999. Carrier Route AFSM 100-Compatible simplify preparation of UFSM 1000- Flats on Merged Pallets Standard Mail Rates compatible flats on pallets and, with the Comment. One commenter questioned new merged sort levels, provide The Standard Mail rate structure whether carrier route bundles of flat- operational efficiencies for pallet recognizes presorted rates size mailpieces meeting the criteria for preparation without the complexity and (nonautomation rates) and automation the automated flat sorting machine limitations of the preparation options in rates. Both rate categories are further (AFSM) 100 under DMM C820.2.0 are M900. divided into two separate categories for permitted on merged 5-digit scheme and pieces weighing 3.3 ounces or less: one merged 5-digit pallets. The commenter Irregular Parcel Rate Eligibility for letter-size mail meeting the physical noted that noncarrier route pieces (in 5- Comment. One commenter noted that characteristics in DMM C050.2.0 and, digit bundles) meeting the criteria in irregular parcels as defined in DMM for automation rates, DMM C810; and DMM C820.2.0 are not permitted. The C050.4.0 qualify only for basic rates one for nonletter-size mail meeting the same commenter reasoned that if under the eligibility standards for physical characteristics in DMM bundles of both AFSM 100-compatible Periodicals rates in DMM E220.2.0 and C050.3.0 for flats, DMM C050.4.0 for carrier route pieces and UFSM 1000- only for basic rates under the eligibility machinable parcels, DMM C050.5.0 for

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irregular parcels, and DMM C820 for into sacks without first preparing DMM M045.3.0 should, in certain cases, automation rate flats. The actual presort destination bundles apply to improve delivery service for Periodicals preparation standards, however, impose nearly all Standard Mail irregular parcel mail. Under the final rule for placing specific requirements based on mail mailings except for those infrequent Periodicals rate mail on merged 5-digit processing categories. For example, the mailings containing ‘‘oversized flats’’ scheme (DMM L001) and merged 5-digit preparation of letter-size mail is quite and irregular parcels that are less than pallets for example, the pallets must different from the preparation of flat- 1⁄2 inch thick. Here 5-digit and 3-digit contain carrier route bundles, and the size mail, machinable parcels, or pieces can qualify for the 3/5 rate as same pallets must also contain irregular parcels. sacked pieces. automation rate and/or presorted rate Irregular parcels (see DMM C050.5.0), The eligibility standards for Standard bundles for the same 5-digit ZIP Code. in particular, are best described as Mail 3/5 rate application have remained The merged pallet levels do not permit ‘‘none of the above’’ when reviewing the unchanged for the past 10 years. The noncarrier route 5-digit bundles dimensional standards in DMM C050 mailing standards for pallet preparation, containing AFSM 100-compatible flats for letter-size mail and flat-size mail, however, have been revised in the past under DMM C820.2.0. and the dimensional standards and 10 years in nearly every issue of the If the commenter intended ‘‘regardless relative uniform shape of machinable DMM, most substantially in DMM Issue of the presort level of each piece’’ to parcels. Only in rare occurrences, such 56 (effective January 7, 2001). With the mean both pieces in carrier route as a publication or catalog exceeding the evolution of those standards, the direct bundles, and pieces in noncarrier route maximum 15-inch length or maximum placement of bundles of flat-size pieces 5-digit bundles on the same pallet, this 12-inch height permitted for flat-size and bundles of irregular parcels onto merged 5-digit pallet level should mailpieces and thus categorizing it as an pallets was permitted, even though the alleviate the delivery issue mentioned irregular parcel, would bundles of eligibility for 3/5 rates had not been by the commenter, as long as the pieces irregular parcels be uniform in thickness extended to Standard Mail irregular in the noncarrier route 5-digit bundles and suitable for placement directly onto parcels not first prepared in sacks. are UFSM 1000-compatible pieces pallets without compromising the In view of the possibility that a under DMM C820.3.0. integrity or stability of the pallets. Standard Mail irregular parcel could Mailers are reminded that merged 5- Before this final rule, all irregular consist of a catalog or printed digit scheme and merged 5-digit pallets parcels eligible for the 3/5 rate were publication (similar to a Periodicals are for bundles only. Sacked mail is not required to be sacked (whether first publication) of flat, uniform thickness permitted on these merged pallets. bundled or not), including irregular and prepared in stable presort Moreover, these pallets must also parcels to be placed onto pallets. Five- destination bundles suitable for nesting contain a minimum load of 250 pounds digit scheme (L606) groups, 5-digit directly onto pallets, the Postal Service of mail. groups, and 3-digit groups of irregular amends the rate eligibility standards for parcels placed directly into sacks before such irregular parcels (oversized flats) Low-Volume Periodicals Bundles placement on pallets compensate for in DMM E620.2.0. parcels not even in shape or uniform in For purposes of mail preparation, the Comment. One commenter thickness, such as padded bags revised wording in DMM E620.2.0 recommended that the final rule clarify containing film or cylindrical medicine distinguishes between irregular parcels whether the new merged pallet levels bottles, or parcels not easily stackable, that are of uniform thickness (that is, for Periodicals mail would permit such as rolls or mailing tubes. Requiring printed publications or catalogs that can placement of low-volume 5-digit sacking of such irregular parcels be prepared in presort destination bundles on 5-digit or 5-digit scheme stabilizes the pallets and prevents bundles under DMM M020), placed pallets. The commenter pointed out that individual presort destination bundles directly onto pallets, and those that are permitting low-volume 5-digit bundles from breaking apart, thus assuring the not. As a result, this final rule aligns the of UFSM-compatible 1000 flats on maintenance of the required separations revised rate eligibility standards for merged pallets would give mailers the for the rates being claimed. irregular parcels with the pallet ability to place all mail for a given 5- Other points about Standard Mail preparation standards for irregular digit or 5-digit scheme on a single irregular parcels that can affect the parcels. pallet, which can be cross-docked to the placement of presort destination Mailers are reminded that Standard delivery unit. bundles directly onto pallets include Mail irregular parcels of uniform Response. The Postal Service agrees preparation of 5-digit scheme (DMM thickness prepared in presort with this recommendation and has L001) pallets and exceptions to required destination bundles are still subject to added wording to the appropriate bundling (DMM M610.5.3). The 5-digit the residual shape surcharge in addition sections in the DMM to allow low- scheme under DMM L606 may be used to the applicable Standard Mail volume 5-digit bundles of Periodicals on only for sacking machinable and nonletter rates (see DMM E620.3.0). merged 5-digit scheme (DMM L001) and irregular parcels (usually consisting of merged 5-digit pallets. This revision to merchandise), or placing sacks Nonautomation Flats on Five-Digit ZIP the final rule thus aligns the preparation (containing parcels) onto pallets, or for Code Pallet standards in DMM M045 with those for placing machinable parcels directly Comment. One commenter palletizing low-volume 5-digit bundles onto a pallet. The L606 5-digit scheme recommended that the final rule allow found in other sections of the DMM. was not developed for preparing presort all nonautomation rate Periodicals flats Extension of Merging to Sacked Mail destination bundles (mailpieces for the same 5-digit ZIP CodeTM to be consisting of publications, catalogs, placed on the same 5-digit pallet, Comment. One commenter noted that etc.). In the final rule, the 5-digit scheme regardless of the presort level of each even though the proposed rule would preparation for flats and irregular piece. That commenter believed making help move UFSM 1000-compatible flats parcels, which is under DMM L001, this change would improve delivery from lower pallet sort levels such as 3- applies to pallets as the containers. service for such mail. digit and sectional center facility (SCF) The standards in DMM M610.5.3 that Response. The Postal Service believes to higher sort levels such as merged 5- permit sorting irregular parcels directly that the addition of merged pallets to digit scheme and merged 5-digit pallets,

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the rule would not improve the certified software for the revisions to 2.0 RATES situation for flats prepared in sacks. DMM M045.3.0. [Revise heading and text of 2.1 to read The commenter recommended that Response. The Postal Service agrees as follows:] current mailing standards should be with the commenter and plans to offer revised to allow 5-digit bundles of tests for PAVE certification as an option 2.1 Preparation UFSM 1000-compatible flats to be but will not require the use of PAVE- Preparation to qualify eligible pieces placed in merged 5-digit scheme and certified software with the palletization for carrier route rates is optional and merged 5-digit sacks regardless of the standards in revised DMM M045.3.0. need not be performed for all carrier Address Management System (AMS) List of Subjects in 39 CFR Part 111 routes in a 5-digit area. Carrier route City/State indicator. In addition, the rates apply to copies that are prepared allowance for low-volume 5-digit Postal Service. in carrier route bundles of six or more bundles of Periodicals flats should be addressed pieces each subject to these PART 111—[AMENDED] extended to merged sacks of non-AFSM standards: 100 flats. I a. Letter-size mailings. Carrier route Response. The Postal Service notes 1. The authority citation for 39 CFR part 111 continues to read as follows: rates apply to carrier route bundles that that current standards in DMM M920 do are sorted into carrier route, 5-digit permit merged sacks using the City State Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, carrier routes, or 3-digit carrier routes Product. Allowing merged sacks 401, 403, 404, 414, 416, 3001–3011, 3201– trays under M220. Trays may be without the use of this product would 3219, 3403–3406, 3621, 3626, 5001. palletized under M045. require some modification of existing I 2. Amend the following sections of the b. Nonletter-size mailings. Carrier documentation standards, but it could Domestic Mail Manual as set forth below: route rates apply to carrier route provide simpler preparation for bundles that are sorted onto pallets Periodicals mailings that do not warrant Domestic Mail Manual (DMM) prepared under M045, M920, M930, or preparation on pallets. * * * * * M940, as appropriate, or prepared in The Postal Service believes, carrier route, 5-digit scheme (L001) nevertheless, that this recommendation E Eligibility carrier routes, or 5-digit carrier routes has merit for non-AFSM 100 Periodicals * * * * * sacks under M220. Sacks may be flats, especially from the perspective of palletized under M045. E200 Periodicals production and operational efficiencies. * * * * * Allowing the merger of flats in sacks * * * * * could build density at the 5-digit level, E600 Standard Mail E220 Presorted Rates and it could possibly eliminate a large * * * * * number of low-volume sacks that many * * * * * publishers currently prepare. E620 Presorted Rates 2.0 RATES For publishers who enter their * * * * * publications at destination delivery 2.1 5-Digit Rates units (DDUs), merged sacks could 2.0 RATES Subject to M045, M210, or M900, 5- possibly improve delivery service. Even * * * * * so, mailing standards would require digit rates apply to: clarification on how to claim DDU rates * * * * * 2.3 3/5 Rates for the bundles of carrier route mail and [Revise 2.1b to read as follows:] * * * * * the destination sectional center facility b. Nonletter-size pieces in 5-digit [Revise 2.3d, redesignate current 2.3e as (DSCF) rate for the noncarrier route 5- scheme (L007) bundles and 5-digit new 2.3f, and add new 2.3e to read as digit bundles. Many other mailing bundles of six or more addressed pieces follows:] standards would also be affected by this each, placed in applicable merged 5- d. For irregular parcels (see C050.5.0) recommended change. As a digit scheme (L001) sacks, merged 5- of uniform thickness and more than 15 consequence, the Postal Service believes digit sacks, 5-digit scheme (L001) sacks, inches long or more than 12 inches high that this recommendation and the or 5-digit sacks, or palletized under in a 5-digit bundle of 10 or more pieces, associated modifications to mailing M045, M920, M930, or M940. or in a 3-digit bundle of 10 or more pieces, palletized under M045. standards warrant further study and 2.2 3-Digit Rates comment from the mailing industry and e. For all other irregular parcels (see therefore would not be appropriate to Subject to M045, M210, or M900, 3- C050.5.0) in a 5-digit scheme (L606), 5- incorporate in this final rule. digit rates apply to: digit, or 3-digit sack containing at least * * * * * 125 parcels or 15 pounds of parcels. PAVE Certification [Revise 2.2b to read as follows:] (The 3/5 rates are available only when Comment. One commenter asked b. Nonletter-size pieces in 5-digit all possible 5-digit scheme and 5-digit whether Presort Accuracy Validation scheme (L007) bundles, 5-digit bundles, sacks are prepared.) and Evaluation (PAVE) certification of and 3-digit bundles of six or more * * * * * presort software would be required for addressed pieces each, placed in 3-digit L Labeling Lists merging non-AFSM 100-compatible sacks; or 3-digit bundles of six or more automation mail and/or presorted rate addressed pieces each, placed onto 3- L000 General Use mail with carrier route mail on the same digit or lower pallets under M045, [Revise heading of L001 to read as pallet. The commenter believed that the M920, M930, or M940. follows:] Postal Service should offer PAVE * * * * * certification testing for software L001 5-Digit Scheme—Periodicals, developers wishing to update their E230 Carrier Route Rates Standard Mail, and Package Services range of certified products for * * * * * Flats and Irregular Parcels competitive reasons but that the Postal [Revise heading of 2.0 to read as [Revise introductory text to read as Service should not require PAVE- follows:] follows:]

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L001 describes the 5-digit scheme sort digit bundles and/or presorted rate 5- merged 5-digit scheme sacks is list for pallets and sacks of Periodicals, digit bundles). performed, it must be done for all 5- Standard Mail, and Package Services * * * * * digit scheme destinations in L001. flats and irregular parcels destined for l. Merged 5-digit scheme pallet: q. A merged 5-digit scheme sort for multiple 5-digit ZIP Codes served by a contains carrier route bundles and Periodicals flats and irregular parcels, single delivery unit. When the 5-digit noncarrier route 5-digit bundles Standard Mail flats and irregular scheme sort is used, mail for the 5-digit (automation rate 5-digit bundles and/or parcels, and Bound Printer Matter flats ZIP Codes shown in Column A must be presorted rate 5-digit bundles) for those and irregular parcels prepared as combined on pallets or in sacks as 5-digit ZIP Codes that are part of a bundles on pallets under M045, M920, follows: single scheme as shown in L001. M930, or M940, as appropriate, yields * * * * * m. 5-digit metro pallets for merged 5-digit scheme pallets that Periodicals, Standard Mail, and Bound contain carrier route bundles and L800 Automation Rate Mailings Printed Matter flats and irregular noncarrier route 5-digit bundles * * * * * parcels: the 5-digit ZIP Codes on pieces (automation rate and/or presorted rate 5- [Revise heading of L802 to read as in carrier route, automation rate, and digit bundles) for those 5-digit ZIP follows:] presorted rate bundles are all destined Codes that are part of a single scheme for the same mail processing facility as shown in L001. Pallets prepared for L802 BMC/ASF Entry—Periodicals listed in L006. a merged 5-digit scheme destination that and Standard Mail letters, Flats and * * * * * contain only a single rate level of Irregular Parcels, and Package Services bundle(s) (only carrier route bundle(s) Flats and Irregular Parcels Mail 1.3 Preparation Instructions or only automation rate 5-digit bundle(s) Summary For purposes of preparing mail: or only presorted rate 5-digit bundle(s)), or only two rate levels of bundle(s), or [Revise text to read as follows:] * * * * * [Revise 1.3o through 1.3r to read as bundles for only one of the schemed 5- L802 lists the 3-digit ZIP Code prefix digit ZIP Codes are still considered to be for labeling mixed automation rate and follows:] o. A merged 5-digit sort for merged 5-digit scheme sorted and must nonautomation rate Periodicals, Periodicals, Standard Mail, and Bound be labeled accordingly. If preparation of Standard Mail, and Package Services Printed Matter flats and irregular merged 5-digit scheme pallets is mailings entered at an ASF or BMC. parcels prepared as bundles on pallets performed, it must be done for all 5- * * * * * yields merged 5-digit pallets that digit scheme destinations in L001. M Mail Preparation and Sortation contain carrier route bundles and r. A 5-digit metro sort for Periodicals, noncarrier route 5-digit bundles Standard Mail, and Bound Printed M000 General Preparation Standards (automation rate 5-digit bundles and/or Matter flats and irregular parcels M010 Mailpieces presorted rate 5-digit bundles). The prepared as bundles on pallets yields 5- merged 5-digit sort is optional for digit metro pallets that contain carrier M011 Basic Standards Periodicals flats and irregular parcels route and/or noncarrier route 5-digit 1.0 TERMS AND CONDITIONS and Standard Mail flats prepared in and 3-digit bundles (automation rate and/or presorted bundles) for the 5-digit * * * * * sacks under M920. Sacks or pallets prepared for a merged 5-digit ZIP Codes listed in L006. The ZIP Codes 1.2 Presort Levels destination that contain only a single in L006 are treated as a single presort rate level of bundle(s) (only carrier route destination, with no further separation Terms used for presort levels are by 5-digit ZIP Code required. The 5-digit defined as follows: bundle(s) or only automation rate 5-digit bundle(s) or only presorted rate 5-digit metro sort is optional and need not be * * * * * bundle(s)) or only two rate levels of done for all possible destinations in [Revise 1.2f, 1.2g, 1.2j, 1.2l, and 1.2m, to bundle(s) are still considered to be L006. read as follows:] merged 5-digit sorted and must be * * * * * f. 5-digit scheme carrier routes (pallets labeled accordingly. M040 Pallets and sacks) for Periodicals flats and p. A merged 5-digit scheme sort for irregular parcels, Standard Mail flats, Periodicals flats and irregular parcels M041 General Standards Bound Printed Matter flats (sacks only); and Standard Mail flats prepared in * * * * * and Bound Printed Matter irregular sacks under M920 yields merged 5-digit parcels (pallets only): the ZIP Code in scheme sacks that contain carrier route 5.0 PREPARATION the delivery address on all pieces in bundles and noncarrier route 5-digit * * * * * carrier route bundles is one of the 5- bundles (automation rate 5-digit digit ZIP Codes processed by the USPS bundles and/or presorted rate 5-digit 5.6 Mail on Pallets as a single scheme, as shown in L001. bundles) for those 5-digit ZIP Codes that * * * * * g. 5-digit scheme (pallets) for are part of a single scheme as shown in [Combine current 5.6g and 5.6h into Periodicals flats and irregular parcels L001. Sacks prepared for a merged 5- new 5.6g and redesignate current 5.6i as and Bound Printed Matter flats and digit scheme destination that contain new 5.6h to read as follows:] irregular parcels: the ZIP Code in the only a single rate level of bundle(s) f. For Bound Printed Matter irregular delivery address on all pieces is one of (only carrier route bundle(s) or only parcels, presorted and carrier route rate the 5-digit ZIP Codes processed by the automation rate 5-digit bundle(s) or only mail may be combined on all pallet USPS as a single scheme, as shown in presorted rate 5-digit bundle(s)), or only levels. For Bound Printed Matter flats, L001. two rate levels of bundle(s), or bundles presorted and carrier route rate mail * * * * * for only one of the schemed 5-digit ZIP may be combined on all levels of pallet j. Merged 5-digit pallet: contains Codes are still considered to be merged except as provided in 5.6g. carrier route bundles and noncarrier 5-digit scheme sorted and must be g. For sacks of Periodicals, Standard route 5-digit bundles (automation rate 5- labeled accordingly. If preparation of Mail, and Bound Printed Matter flats or

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irregular parcels, carrier route rate mail parcels under 3.5 and qualify for bundles) for the same 5-digit scheme must be prepared on separate 5-digit presorted rates or be prepared in sacks under L001. For 5-digit destinations not pallets from automation rate and/or under M723 and qualify for carrier route part of L001, merged 5-digit pallet presorted rate mail. rates. preparation begins with 3.1d. Pallet h. Periodicals, Standard Mail, and (2) Bundles must be prepared under labeling: Bound Printed Matter flats or irregular M722, M723, or M950, as appropriate. (1) Line 1: L001. parcels prepared in carrier route and The minimum bundle size is 10 (2) Line 2: ‘‘PER’’ or ‘‘NEWS,’’ as noncarrier route 5-digit bundles may be addressed pieces or 10 pounds, applicable; followed by ‘‘FLTS’’ or placed on the same merged 5-digit whichever occurs first, except that the ‘‘IRREG,’’ as applicable; followed by scheme, merged 5-digit, and 5-digit last bundle to a presort destination may ‘‘CR/5D’’; followed by ‘‘SCHEME’’ (or metro pallet, as appropriate. contain fewer than 10 pieces or weigh ‘‘SCH’’). * * * * * less than 10 pounds. When there are at b. 5-Digit Scheme Carrier Routes least 10 pieces but less than 10 pounds (required). Permitted for bundles only. M045 Palletized Mailings for a presort destination, the pieces Pallet must contain only carrier route * * * * * must be prepared in a single physical bundles for the same 5-digit scheme bundle. The maximum physical bundle under L001. For 5-digit destinations not 2.0 BUNDLES ON PALLETS size for pallets prepared under 3.3a part of L001, 5-digit carrier routes pallet 2.1 Applicability through 3.3g, and 3.4a through 3.4g is preparation begins with 3.1e. Pallet 40 pounds. The maximum physical [Revise 2.1 to read as follows:] labeling: bundle size for pallets prepared under Presort destination bundles of (1) Line 1: L001. 3.3h through 3.3l, and 3.4h through 3.4l Periodicals, Standard Mail, and Package (2) Line 2: ‘‘PER’’ or ‘‘NEWS,’’ as is 20 pounds. The total number of Services flats and irregular parcels may applicable; followed by ‘‘FLTS’’ or bundles for a single presort destination be placed directly on pallets under 2.2 ‘‘IRREG,’’ as applicable; followed by must not exceed the number of 10- through 2.5, 3.0 (and, until January 6, ‘‘CARRIER ROUTES’’ (or ‘‘CR–RTS’’); pound increments to that destination. 2005, under 15.0). Mail that cannot be followed by ‘‘SCHEME’’ (or ‘‘SCH’’). Each physical bundle must contain at placed on pallets must be prepared in c. 5-Digit Scheme (required). least two addressed pieces. sacks under the applicable standards in Permitted for bundles only. Not [Delete current 2.5c.] M200, M600, M700, M910, or M920. permitted for bundles containing AFSM [Redesignate current 3.0 as new 15.0. 100-compatible flats under C820. Sacks containing any remaining bundles Add new 3.0 to read as follows:] after all pallets are prepared may be Required for bundles containing all presented with the palletized portion of * * * * * other flats and irregular parcels. Pallet the mailing job (and, subject to 8.5, 3.0 PALLET PRESORT AND must contain only 5-digit bundles of reported on the same postage statement) LABELING automation rate and/or presorted rate if the sacked portion is presented mail for the same 5-digit scheme under seprately from the palletized portion. 3.1 Periodicals—Bundles, Sacks, or L001. For 5-digit destinations not part of Trays L001, 5-digit pallet preparation begins 2.2 Basic Bundling Standards Until January 6, 2005, Periodicals with 3.1f. Pallet labeling: [Revise 2.2 to read as follows:] mailings may also be palletized under (1) Line 1: L001. Bundle preparation for Periodicals, 15.1. Pallets must be prepared under (2) Line 2: ‘‘PER’’ or ‘‘NEWS,’’ as Standard Mail, and Package Services M041 in the sequence listed below and applicable; followed by ‘‘FLTS’’ or mailpieces must meet the general completed at each required level before ‘‘IRREG,’’ as applicable; followed by standards in M010 and M020 as well as the next optional or required level is ‘‘5D’’; followed by ‘‘BARCODED’’ (or the applicable standards in M200, prepared. Unless indicated as optional, ‘‘BC’’) if pallet contains automation rate M600, M700, M820, and M950, except all sort levels are required under the mail; followed by ‘‘NONBARCODED’’ as noted in 2.3 through 2.5. Bundles conditions shown. See E250 for (or ‘‘NBC’’) if pallet contains presorted may be sorted onto pallets under 3.0 additional requirements for destination rate mail; followed by ‘‘SCHEME’’ (or (and, until January 6, 2005, under 15.0), entry rates eligibility. For mailings of ‘‘SCH’’). as well as M920, M930, and M940. sacks or trays on pallets, pallet d. Merged 5-Digit (required). * * * * * preparation begins with 3.1e. Pallets Permitted for bundles only. Not must be labeled according to the Line 1 permitted for bundles containing 2.5 Bound Printed Matter and Line 2 information listed below and noncarrier route AFSM 100-compatible * * * * * under M031. All pallets prepared under flats under C820. Required for bundles [Revise 2.5b by combining current 3.1 may contain firm bundles, and containing all other flats or irregular 2.5b and 2.5c into new 2.5b to read as pallets prepared under 3.1a through 3.1i parcels. Pallet must contain carrier route follows:] may contain low-volume bundles. bundles and noncarrier route 5-digit b. Presorted and Carrier Route Bound Bundles of Periodicals nonletters (flats bundles (automation rate and/or Printed Matter: and irregular parcels) may also be presorted rate bundles) for the same 5- (1) Only individual pieces of flats or palletized under M920, M930, or M940. digit ZIP Code. Pallet labeling: irregular parcels that weigh less than 10 a. Merged 5-Digit Scheme (required). (1) Line 1: city, state, and 5-digit ZIP pounds each may be prepared as Permitted for bundles only. Not Code destination (see M031 for overseas bundles on pallets. Presorted rate pieces permitted for bundles containing military mail). that weigh 10 or more pounds each noncarrier route AFSM 100-compatible (2) Line 2: ‘‘PER’’ or ‘‘NEWS,’’ as must be prepared and palletized as flats under C820. applicable; followed by ‘‘FLTS’’ or machinable parcels under 3.5 or Required for bundles containing all ‘‘IRREG,’’ as applicable; followed by prepared in sacks under M722. Carrier other flats or irregular parcels. Pallet ‘‘CR/5D.’’ Route pieces that individually weigh 10 must contain carrier route bundles and e. 5-Digit Carrier Routes (required or more pounds each must either be noncarrier route 5-digit bundles except for trays). Permitted for bundles, prepared and palletized as machinable (automation rate and/or presorted rate sacks, and trays. Pallet must contain

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only carrier route mail for the same 5- and/or presorted rate mail for the 3-digit pallets, pallet preparation begins with digit ZIP Code. Pallet labeling: ZIP Code groups in L005. Pallet 3.2d. Pallets must be labeled according (1) Line 1: city, state, and 5-digit ZIP labeling: to the Line 1 and Line 2 information Code destination (see M031 for overseas (1) Line 1: L002, Column C. listed below and under M031. Bundles military mail). (2) Line 2: ‘‘PER’’ or ‘‘NEWS,’’ as of Standard Mail flats may also be (2) Line 2: ‘‘PER’’ or ‘‘NEWS,’’ as applicable; followed by ‘‘FLTS,’’ palletized under M920, M930, or M940. applicable; followed by ‘‘FLTS,’’ ‘‘IRREG,’’ or ‘‘LTRS,’’ as applicable; a. Merged 5-Digit Scheme (required). ‘‘IRREG,’’ or ‘‘LTRS,’’ as applicable; followed by ‘‘SCF’’; followed by Permitted for bundles only. Not followed by ‘‘CARRIER ROUTES’’ (or ‘‘BARCODED’’ (or ‘‘BC’’) if pallet permitted for bundles containing ‘‘CR–RTS’’). contains automation rate mail; followed noncarrier route AFSM 100-compatible f. 5-Digit (required except for trays). by ‘‘NONBARCODED’’ (or ‘‘NBC’’) if flats under C820. Required for bundles Permitted for bundles, sacks, and trays. pallet contains carrier route and/or containing all other flats or irregular Pallet must contain only automation presorted rate mail. parcels. Pallet must contain carrier route rate and/or presorted rate mail for the j. ADC (required). Permitted for bundles and noncarrier route 5-digit same 5-digit ZIP Code or the same 5- bundles, sacks, and trays. Pallet may bundles (automation rate and/or digit scheme under L007 (for AFSM contain carrier route, automation rate, presorted rate bundles) for the same 5- 100-compatible flats only under C820). and/or presorted rate mail for the 3-digit digit scheme under L001. For 5-digit Five-digit scheme (L007) bundles are ZIP Code groups in L004. Pallet destinations not part of L001, merged 5- assigned to pallets according to the OEL labeling: digit pallet preparation begins with 3.2c. ‘‘label to’’ 5-digit ZIP Code. Pallet (1) Line 1: L004. Pallet labeling: labeling: (2) Line 2: ‘‘PER’’ or ‘‘NEWS,’’ as (1) Line 1: L001. (1) Line 1: city, state, and 5-digit ZIP applicable; followed by ‘‘FLTS,’’ (2) Line 2: ‘‘STD’’ followed by ‘‘FLTS’’ Code destination (see M031 for overseas ‘‘IRREG,’’ or ‘‘LTRS,’’ as applicable; or ‘‘IRREG,’’ as applicable; followed by military mail). followed by ‘‘ADC’’; followed by ‘‘CR/5D’’; followed by ‘‘SCHEME’’ (or (2) Line 2: ‘‘PER’’ or ‘‘NEWS,’’ as ‘‘BARCODED’’ (or ‘‘BC’’) if pallet ‘‘SCH’’). applicable; followed by ‘‘FLTS,’’ contains automation rate mail; followed b. 5-Digit Scheme Carrier Routes ‘‘IRREG,’’ or ‘‘LTRS,’’ as applicable; by ‘‘NONBARCODED’’ (or ‘‘NBC’’) if (required). Permitted for bundles only. followed by ‘‘5D’’; followed by pallet contains carrier route and/or Pallet must contain only carrier route ‘‘BARCODED’’ (or ‘‘BC’’) if pallet presorted rate mail. bundles for the same 5-digit scheme contains automation rate mail; followed k. Mixed ADC (optional). Permitted under L001. For 5-digit destinations not by ‘‘NONBARCODED’’ (or ‘‘NBC’’) if for sacks and trays only. Pallet may part of L001, 5-digit carrier routes pallet pallet contains presorted rate mail. contain carrier route, automation rate, preparation begins with 3.2d. Pallet g. 5-Digit Metro (optional). Permitted and/or presorted rate mail. Pallet labeling: for bundles only. Pallet may contain labeling: (1) Line 1: L001. carrier route, automation rate, and/or (1) Line 1: ‘‘MXD’’ followed by city, (2) Line 2: ‘‘STD’’ followed by ‘‘FLTS’’ presorted rate bundles for the 5-digit state, and ZIP Code information for ADC or ‘‘IRREG,’’ as applicable; followed by ZIP Codes in L006, Column A, and for serving 3-digit ZIP Code prefix of entry ‘‘CARRIER ROUTES’’ (or ‘‘CR–RTS’’); 3-digit ZIP Code groups in L006, post office as shown in L004, Column A followed by ‘‘SCHEME’’ (or ‘‘SCH’’). Column B. Pallet labeling: (label to plant serving entry post office c. Merged 5-Digit (required). Permitted (1) Line 1: L006. if authorized by processing and for bundles only. Not permitted for (2) Line 2: ‘‘PER’’ or ‘‘NEWS,’’ as distribution manager). bundles containing noncarrier route applicable; followed by ‘‘FLTS’’ or (2) Line 2: ‘‘PER’’ or ‘‘NEWS,’’ as AFSM 100-compatible flats under C820. ‘‘IRREG,’’ as applicable; followed by applicable; followed by ‘‘FLTS,’’ Required for bundles containing all ‘‘METRO’’ (or ‘‘MET’’); followed by ‘‘IRREG,’’ or ‘‘LTRS,’’ as applicable; other flats or irregular parcels. Pallet ‘‘BARCODED’’ (or ‘‘BC’’) if pallet followed by ‘‘BARCODED’’ (or ‘‘BC’’) if must contain carrier route bundles and contains automation rate mail; followed pallet contains automation rate mail; noncarrier route 5-digit bundles by ‘‘NONBARCODED’’ (or ‘‘NBC’’) if followed by ‘‘NONBARCODED’’ (or (automation rate and/or presorted rate pallet contains carrier route and/or ‘‘NBC’’) if pallet contains carrier route bundles) for the same 5-digit ZIP Code. presorted rate mail. and/or presorted rate mail; followed by Pallet labeling: h. 3-Digit (optional). Option not ‘‘WKG.’’ (1) Line 1: city, state, and 5-digit ZIP available for 3-digit ZIP Code prefixes 3.2 Standard Mail—Bundles, Sacks, Code destination (see M031 for overseas marked ‘‘N’’ in L002. Permitted for or Trays military mail). bundles, sacks, and trays. Pallet may (2) Line 2: ‘‘STD’’ followed by ‘‘FLTS’’ contain carrier route, automation rate, Until January 6, 2005, Standard Mail or ‘‘IRREG,’’ as applicable; followed by and/or presorted rate mail. Pallet mailings may also be palletized under ‘‘CR/5D.’’ labeling: 15.2. Pallets must be prepared under d. 5-Digit Carrier Routes (required (1) Line 1: L002, Column A. M041 in the sequence listed below and except for trays). Permitted for bundles, (2) Line 2: ‘‘PER’’ or ‘‘NEWS,’’ as completed at each required level before sacks, and trays. Pallet must contain applicable; followed by ‘‘FLTS,’’ the next optional or required level is only carrier route mail for the same 5- ‘‘IRREG,’’ or ‘‘LTRS,’’ as applicable; prepared. Unless indicated as optional, digit ZIP Code. Pallet labeling: followed by ‘‘3D’’; followed by all sort levels are required under the (1) Line 1: city, state, and 5-digit ZIP ‘‘BARCODED’’ (or ‘‘BC’’) if pallet conditions shown. See E650 for Code destination (see M031 for overseas contains automation rate mail; followed additional requirements for destination military mail). by ‘‘NONBARCODED’’ (or ‘‘NBC’’) if entry rates eligibility. Irregular parcels (2) Line 2: For flats and irregular pallet contains carrier route and/or prepared in bundles directly onto parcels, ‘‘STD’’ followed by ‘‘FLTS’’ or presorted rate mail. pallets are limited those mailpieces that ‘‘IRREG,’’ as applicable; followed by i. SCF (required). Permitted for are of uniform thickness and more than ‘‘CARRIER ROUTES’’ (or ‘‘CR–RTS’’). bundles, sacks, and trays. Pallet may 15 inches long or more than 12 inches For letters, ‘‘STD LTRS’; followed by contain carrier route, automation rate, high. For mailings of sacks or trays on ‘‘CARRIER ROUTES’’ (or ‘‘CR–RTS’’);

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followed by ‘‘BC’’ if pallet contains machinable letters; followed by ‘‘MAN’’ sorted to BMC pallets according to the barcoded letters; followed by ‘‘MACH’’ if pallet contains nonmachinable letters. ‘‘label to’’ ZIP Code in L802. All mixed if pallet contains machinable letters; h. SCF (required). Permitted for ADC bundles, sacks, and trays and followed by ‘‘MAN’’ if pallet contains bundles, sacks, and trays. Pallet may mixed AADC trays must contain only nonmachinable letters. contain carrier route, automation rate, pieces destinating within the BMC in e. 5-Digit (required except for trays). and/or Presorted rate mail for the 3-digit Exhibit E650.5.1. Pallet labeling: Permitted for bundles, sacks, and trays. ZIP Code groups in L005. Pallet (1) Line 1: L601. Pallet must contain only automation labeling: (2) Line 2: For flats and irregular rate and/or Presorted rate mail for the (1) Line 1: L002, Column C. parcels, ‘‘STD’’ followed by ‘‘FLTS’’ or same 5-digit ZIP Code or same 5-digit (2) Line 2: For flats and irregular ‘‘IRREG,’’ as applicable; followed by scheme under L007 (for AFSM 100- parcels, ‘‘STD’’ followed by ‘‘FLTS’’ or ‘‘BMC’’; followed by ‘‘BARCODED’’ (or compatible flats only under C820). Five- ‘‘IRREG,’’ as applicable; followed by ‘‘BC’’) if pallet contains automation rate digit scheme (L007) bundles are ‘‘SCF’’; followed by ‘‘BARCODED’’ (or mail; followed by ‘‘NONBARCODED’’ assigned to 5-digit pallets according to ‘‘BC’’) if pallet contains automation rate (or ‘‘NBC’’) if pallet contains carrier the OEL ‘‘label to’’ 5-digit ZIP Code. mail; followed by ‘‘NONBARCODED’’ route and/or Presorted rate mail. For Pallet labeling: (or ‘‘NBC’’) if pallet contains carrier letters, ‘‘STD LTRS BMC’’; followed by (1) Line 1: city, state, and 5-digit ZIP route and/or Presorted rate mail. For ‘‘BC’’ if pallet contains barcoded letters; Code destination (see M031 for overseas letters, ‘‘STD LTRS SCF’’; followed by followed by ‘‘MACH’’ if pallet contains ‘‘BC’’ if pallet contains barcoded letters; military mail). machinable letters; followed by ‘‘MAN’’ followed by ‘‘MACH’’ if pallet contains (2) Line 2: For flats and irregular if pallet contains nonmachinable letters. machinable letters; followed by ‘‘MAN’’ k. Mixed BMC (optional). Permitted parcels, ‘‘STD’’ followed by ‘‘FLTS’’ or if pallet contains nonmachinable letters. for sacks and trays only. Pallet may ‘‘IRREG,’’ as applicable; followed by i. ASF (required, unless bundle contain carrier route, automation rate, ‘‘5D’’; followed by ‘‘BARCODED’’ (or reallocation used under 5.0). Permitted and/or Presorted rate mail. Pallet ‘‘BC’’) if pallet contains automation rate for bundles, sacks, and trays. Pallet may labeling: mail; followed by ‘‘NONBARCODED’’ contain carrier route, automation rate, (1) Line 1: ‘‘MXD’’ followed by (or ‘‘NBC’’) if pallet contains Presorted and/or Presorted rate mail for the 3-digit information in L601, Column B, for rate mail. For letters, ‘‘STD LTRS 5D’’; ZIP Code groups in L602. ADC bundles, BMC serving 3-digit ZIP Code prefix of followed by ‘‘BC’’ if pallet contains sacks, or trays are assigned to pallets entry post office (label to plant serving barcoded letters; followed by ‘‘MACH’’ according to the ‘‘label to’’ ZIP Code in entry post office if authorized by if pallet contains machinable letters; L004 or L603, as appropriate. AADC processing and distribution manager). followed by ‘‘MAN’’ if pallet contains trays are assigned to pallets according to (2) Line 2: For flats and irregular nonmachinable letters. the ‘‘label to’’ ZIP Code for the AADC parcels, ‘‘STD’’ followed by ‘‘FLTS’’ or f. 5-Digit Metro (optional). Permitted tray in L801. At the mailer’s option, ‘‘IRREG,’’ as applicable; followed by for bundles only. Pallet may contain appropriate mixed ADC bundles, sacks, ‘‘BARCODED’’ (or ‘‘BC’’) if pallet carrier route, automation rate, and/or or trays and mixed AADC trays may be contains automation rate mail; followed Presorted rate bundles for the 5-digit sorted to ASF pallets according to the by ‘‘NONBARCODED’’ (or ‘‘NBC’’) if ZIP Codes in L006, Column A, and for ‘‘label to’’ ZIP Code in L802. All mixed pallet contains carrier route and/or 3-digit ZIP Code groups in L006, ADC bundles, sacks, and trays and Presorted rate mail; followed by Column B. Pallet labeling: mixed AADC trays must contain only ‘‘WKG.’’ For letters, ‘‘STD LTRS’’; (1) Line 1: L006. pieces destinating within the ASF in followed by ‘‘BC’’ if pallet contains (2) Line 2: For flats and irregular Exhibit E650.5.1. Pallet labeling: barcoded letters; followed by ‘‘MACH’’ parcels, ‘‘STD’’ followed by ‘‘FLTS’’ or (1) Line 1: L602. if pallet contains machinable letters; ‘‘IRREG,’’ as applicable; followed by (2) Line 2: For flats and irregular followed by ‘‘MAN’’ if pallet contains ‘‘METRO’’ (or ‘‘MET’’); followed by parcels, ‘‘STD’’ followed by ‘‘FLTS’’ or nonmachinable letters; followed by ‘‘BARCODED’’ (or ‘‘BC’’) if pallet ‘‘IRREG,’’ as applicable; followed by ‘‘WKG.’’ contains automation rate mail; followed ‘‘ASF’’; followed by ‘‘BARCODED’’ (or by ‘‘NONBARCODED’’ (or ‘‘NBC’’) if ‘‘BC’’) if pallet contains automation rate 3.3 Package Services Flats—Bundles pallet contains carrier route and/or mail; followed by ‘‘NONBARCODED’’ and Sacks Presorted rate mail. (or ‘‘NBC’’) if pallet contains carrier Until January 6, 2005, Package g. 3-Digit (optional). Option not route and/or Presorted rate mail. For Services mailings of flats may also be available for 3-digit ZIP Code prefixes letters, ‘‘STD LTRS ASF’’; followed by palletized under 15.3. Pallets must be marked ‘‘N’’ in L002. Permitted for ‘‘BC’’ if pallet contains barcoded letters; prepared under M041 in the sequence bundles, sacks, and trays. Pallet may followed by ‘‘MACH’’ if pallet contains listed below and completed at each contain carrier route, automation rate, machinable letters; followed by ‘‘MAN’’ required level before the next optional and/or Presorted rate mail. Pallet if pallet contains nonmachinable letters. or required level is prepared. Unless labeling: j. BMC (required). Permitted for indicated as optional, all sort levels are (1) Line 1: L002, Column A. bundles, sacks, and trays. Pallet may required under the conditions shown. (2) Line 2: For flats and irregular contain carrier route, automation rate, Carrier route mail and presorted rate parcels, ‘‘STD’’ followed by ‘‘FLTS’’ or and/or Presorted rate mail for the 3-digit mail with a barcode apply only to ‘‘IRREG,’’ as applicable; followed by ZIP Code groups in L601. ADC bundles, Bound Printed Matter mailings. ‘‘3D’’; followed by ‘‘BARCODED’’ (or sacks, or trays are assigned to pallets Destination entry rate eligibility also ‘‘BC’’) if pallet contains automation rate according to the ‘‘label to’’ ZIP Code in applies only to Bound Printed Matter mail; followed by ‘‘NONBARCODED’’ L004 or L603, as appropriate. AADC (see E752). At the mailer’s option, all (or ‘‘NBC’’) if pallet contains carrier trays are assigned to pallets according to Package Services flats may be prepared route and/or Presorted rate mail. For the ‘‘label to’’ ZIP Code for the AADC for destination entry. For mailings of letters, ‘‘STD LTRS 3D’’; followed by tray in L801. At the mailer’s option, sacks on pallets, pallet preparation ‘‘BC’’ if pallet contains barcoded letters; appropriate mixed ADC bundles, sacks, begins with 3.3e. Pallets must be labeled followed by ‘‘MACH’’ if pallet contains or trays and mixed AADC trays may be according to the Line 1 and Line 2

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information listed below and under only Presorted rate mail with or without according to the ‘‘label to’’ ZIP Code in M031. a barcode for the same 5-digit ZIP Code L004. At the mailer’s option, a. Merged 5-Digit Scheme (required). or same 5-digit scheme under L007 (for appropriate mixed ADC bundles or Permitted for bundles only. Not AFSM 100-compatible flats only under sacks may be sorted to ASF pallets permitted for bundles containing C820). Five-digit scheme (L007) bundles according to the ‘‘label to’’ ZIP Code in noncarrier route AFSM 100-compatible are assigned to pallets according to the L802. All mixed ADC bundles and sacks flats under C820. Required for bundles OEL ‘‘label to’’ 5-digit ZIP Code. Pallet must contain only pieces destinating containing all other flats. Pallet must labeling: within the ASF in Exhibit E751.1.3. contain carrier route bundles and (1) Line 1: city, state, and 5-digit ZIP Pallet labeling: noncarrier route 5-digit bundles Code destination (see M031 for overseas (1) Line 1: L602. (presorted rate bundles) for the same 5- military mail). (2) Line 2: ‘‘PSVC FLTS ASF’’; digit scheme under L001. For 5-digit (2) Line 2: ‘‘PSVC FLTS 5D’’; followed followed by ‘‘BARCODED’’ (or ‘‘BC’’) if destinations not part of L001, merged 5- by ‘‘BARCODED’’ (or ‘‘BC’’) if pallet pallet contains presorted rate mail with digit pallet preparation begins with contains presorted rate mail with a a barcode; followed by 3.3d. Pallet labeling: barcode; followed by ‘‘NONBARCODED’’ (or ‘‘NBC’’) if pallet (1) Line 1: L001. ‘‘NONBARCODED’’ (or ‘‘NBC’’) if pallet contains carrier route and/or presorted (2) Line 2: ‘‘PSVC FLTS CR/5D’’; contains presorted rate mail without a rate mail without a barcode. followed by ‘‘SCHEME’’ (or ‘‘SCH’’). barcode. k. BMC (required). Permitted for b. 5-Digit Scheme Carrier Routes g. 5-Digit Metro (optional). Permitted bundles and sacks. Pallet may contain (required). Permitted for bundles only. for bundles only. Pallet may contain carrier route and/or presorted rate mail Pallet must contain only carrier route carrier route and/or presorted rate mail with or without a barcode for the 3-digit bundles for the same 5-digit scheme with or without a barcode for the 5-digit ZIP Code groups in L601. ADC bundles under L001. For 5-digit destinations not ZIP Codes in L006, Column A, and for or sacks are assigned to pallets part of L001, 5-digit carrier routes pallet the 3-digit ZIP Code groups in L006, according to the ‘‘label to’’ ZIP Code in preparation begins with 3.3e. Pallet Column B. Pallet labeling: L004. At the mailer’s option, labeling: (1) Line 1: L006. appropriate mixed ADC bundles or (1) Line 1: L001. (2) Line 2: ‘‘PSVC FLTS’’; followed by sacks may be sorted to BMC pallets (2) Line 2: ‘‘PSVC FLTS’’; followed by ‘‘METRO’’ (or ‘‘MET’’); followed by according to the ‘‘label to’’ ZIP Code in ‘‘CARRIER ROUTES’’ (or ‘‘CR–RTS’’); ‘‘BARCODED’’ (or ‘‘BC’’) if pallet L802. All mixed ADC bundles and sacks followed by ‘‘SCHEME’’ (or ‘‘SCH’’). contains presorted rate mail with a must contain only pieces destinating c. 5-Digit Scheme (required). barcode; followed by within the BMC in Exhibit E751.1.3. Permitted for bundles only. Not ‘‘NONBARCODED’’ (or ‘‘NBC’’) if pallet permitted for bundles containing AFSM Pallet labeling: contains carrier route and/or presorted (1) Line 1: L601. 100-compatible flats under C820. rate mail without a barcode. (2) Line 2: ‘‘PSVC FLTS BMC’’; Required for bundles containing all h. 3-Digit (optional). Option not followed by ‘‘BARCODED’’ (or ‘‘BC’’) if other flats. Pallet must contain only 5- available for 3-digit ZIP Code prefixes pallet contains presorted rate mail with digit bundles of presorted rate mail for marked ‘‘N’’ in L002. Permitted for a barcode; followed by the same 5-digit scheme under L001. bundles and sacks. Pallet may contain ‘‘NONBARCODED’’ (or ‘‘NBC’’) if pallet For 5-digit destinations not part of L001, carrier route and/or presorted rate mail contains carrier route and/or presorted 5-digit pallet preparation begins with with or without a barcode. Pallet rate mail without a barcode. 3.3f. Pallet labeling: labeling: l. Mixed BMC (optional). Permitted for (1) Line 1: L001. (2) Line 2: ‘‘PSVC FLTS 5D’’; followed (1) Line 1: L002, Column A. sacks only. Pallet may contain carrier (2) Line 2: ‘‘PSVC FLTS 3D’’; followed by ‘‘SCHEME’’ (or ‘‘SCH’’). route and/or presorted rate mail with or d. Merged 5-Digit (required). by ‘‘BARCODED’’ (or ‘‘BC’’) if pallet without a barcode. Pallet labeling: Permitted for bundles only. Not contains presorted rate mail with a (1) Line 1: ‘‘MXD’’ followed by permitted for bundles containing barcode; followed by information in L601, Column B, for noncarrier route AFSM 100-compatible ‘‘NONBARCODED’’ (or ‘‘NBC’’) if pallet BMC serving 3-digit ZIP Code prefix of flats under C820. Required for bundles contains carrier route and/or presorted entry post office (label to plant serving containing all other flats. Pallet must rate mail without a barcode. entry post office if authorized by contain carrier route bundles and i. SCF (required). Permitted for processing and distribution manager). noncarrier route 5-digit bundles bundles and sacks. Pallet may contain (2) Line 2: ‘‘PSVC FLTS WKG.’’ carrier route and/or presorted rate mail (presorted rate bundles) for the same 5- 3.4 Package Services Irregular with or without a barcode for the 3-digit digit ZIP Code. Pallet labeling: Parcels—Bundles and Sacks (1) Line 1: city, state, and 5-digit ZIP ZIP Code groups in L005. Pallet Until January 6, 2005, Package Code destination (see M031 for overseas labeling: Services mailings of irregular parcels military mail). (1) Line 1: L002, Column C. (2) Line 2: ‘‘PSVC FLTS CR/5D.’’ (2) Line 2: ‘‘PSVC FLTS SCF’’; may also be palletized under 15.4. e. 5-Digit Carrier Routes (required). followed by ‘‘BARCODED’’ (or ‘‘BC’’) if Pallets must be prepared under M041 in Permitted for bundles and sacks. Pallet pallet contains presorted rate mail with the sequence listed below and must contain only carrier route mail for a barcode; followed by completed at each required level before the same 5-digit ZIP Code. Pallet ‘‘NONBARCODED’’ (or ‘‘NBC’’) if pallet the next optional or required level is labeling: contains carrier route and/or presorted prepared. Unless indicated as optional, (1) Line 1: city, state, and 5-digit ZIP rate mail without a barcode. all sort levels are required under the Code destination (see M031 for overseas j. ASF (required). Permitted for conditions shown. Carrier route (3.4a, military mail). bundles and sacks. Pallet may contain 3.4b, 3.4d, and 3.4e) applies to Bound (2) Line 2: ‘‘PSVC FLTS’’; followed by carrier route and/or presorted rate mail Printed Matter mailings only. ‘‘CARRIER ROUTES’’ (or ‘‘CR–RTS’’). with or without a barcode for the 3-digit Destination entry rate eligibility applies f. 5-Digit (required). Permitted for ZIP Code groups in L602. ADC bundles only to Parcel Select (see E751) and bundles and sacks. Pallet must contain or sacks are assigned to pallets Bound Printed Matter (see E752). At the

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mailer’s option, all Package Services (2) Line 2: ‘‘PSVC IRREG 5D.’’ 3.5 Machinable Parcels—Standard irregular parcels also may be prepared g. 5-Digit Metro (optional). Permitted Mail and Package Services for destination entry (see E753). For for bundles only. Pallet must contain Until January 6, 2005, Standard Mail mailings of sacks on pallets, pallet carrier route and/or presorted rate and Package Services mailings of preparation begins with 3.4e. Pallets bundles for the 5-digit ZIP Codes in machinable parcels may also be must be labeled according to the Line 1 L006, Column A, and for the 3-digit ZIP palletized under 15.5. Pallets must be and Line 2 information listed below and Code groups in L006, Column B. Pallet prepared under M041 in the sequence under M031. labeling: listed below and completed at each a. Merged 5-Digit Scheme (required). (1) Line 1: L006. required level before the next optional Permitted for bundles only. Pallet must (2) Line 2: ‘‘PSVC IRREG’’; followed or required level is prepared. Unless contain carrier route bundles and by ‘‘METRO’’ (or ‘‘MET’’). indicated as optional, all sort levels are noncarrier route 5-digit bundles h. 3-Digit (optional). Option not required under the conditions shown. (presorted rate bundles) for the same 5- available for 3-digit ZIP Code prefixes At the mailer’s option, Inter-BMC/ASF digit scheme under L001. For 5-digit marked ‘‘N’’ in L002. Permitted for and Intra-BMC/ASF Parcel Post destinations not part of L001, merged 5- bundles and sacks. Pallet may contain mailings may be prepared on pallets digit pallet preparation begins with carrier route and/or presorted rate mail. under this section. Destination entry 3.4d. Pallet labeling: Pallet labeling: (1) Line 1: L001. (1) Line 1: L002, Column A. rates eligibility applies only to Standard (2) Line 2: ‘‘PSVC IRREG CR/5D’’; (2) Line 2: ‘‘PSVC IRREG 3D.’’ Mail (see E650), Parcel Select (see followed by ‘‘SCHEME’’ (or ‘‘SCH’’). i. SCF (required). Permitted for E751), and Bound Printed Matter (see b. 5-Digit Scheme Carrier Routes bundles and sacks. Pallet may contain E752). At the mailer’s option, all (required). Permitted for bundles only. carrier route and/or presorted rate mail Package Services machinable parcels Pallet must contain only carrier route for the 3-digit ZIP Code groups in L005. also may be prepared for destination bundles for the same 5-digit scheme Pallet labeling: entry (see E753). Combined mailings of under L001. For 5-digit destinations not (1) Line 1: L002, Column C. Standard Mail and Package Services part of L001, 5-digit carrier routes pallet (2) Line 2: ‘‘PSVC IRREG SCF.’’ machinable parcels must also meet the preparation begins with 3.3e. Pallet j. ASF (required). Permitted for standards in M073. Pallets must be labeling: bundles and sacks. Pallet may contain labeled according to the Line 1 and Line (1) Line 1: L001. carrier route and/or presorted rate mail 2 information listed below and under (2) Line 2: ‘‘PSVC IRREG’’; followed for the 3-digit ZIP Code groups in L602. M031. by ‘‘CARRIER ROUTES’’ (or ‘‘CR–RTS’’); ADC bundles or sacks are assigned to a. 5-Digit Scheme (optional). Pallet followed by ‘‘SCHEME’’ (or ‘‘SCH’’). pallets according to the ‘‘label to’’ ZIP may contain parcels for the same 5-digit c. 5-Digit Scheme (required). Code in L004. At the mailer’s option, scheme under L606. Pallets need not be Permitted for bundles only. Pallet must appropriate mixed ADC bundles or prepared for all 5-digit scheme contain only 5-digit bundles of sacks may be sorted to ASF pallets destinations. For 5-digit destinations not presorted rate mail for the same 5-digit according to the ‘‘label to’’ ZIP Code in part of L606, or for which scheme sorts scheme under L001. For 5-digit L802. All mixed ADC bundles and sacks are not performed, 5-digit pallets are destinations not part of L001, 5-digit must contain only pieces destinating prepared under 3.5b. Pallet labeling: pallet preparation begins with 3.4d. within the ASF in Exhibit E751.1.3. (1) Line 1: L606. Pallet labeling: Pallet labeling: (2) Line 2: ‘‘STD MACH 5D’’ or (1) Line 1: L001. (1) Line 1: L602. ‘‘PSVC MACH 5D,’’ as applicable; (2) Line 2: ‘‘PSVC IRREG 5D’’; (2) Line 2: ‘‘PSVC IRREG ASF.’’ followed by ‘‘SCHEME’’ (or ‘‘SCH’’). followed by ‘‘SCHEME’’ (or ‘‘SCH’’). k. BMC (required). Permitted for b. 5-Digit (required). Optional for d. Merged 5-Digit (required). 3 bundles and sacks. Pallet may contain Standard Mail if ⁄5 rates are not Permitted for bundles only. Pallet must carrier route and/or presorted rate mail claimed. Pallet must contain parcels contain carrier route bundles and only for the same 5-digit ZIP Code. noncarrier route 5-digit bundles for the 3-digit ZIP Code groups in L601. ADC (L004) bundles or sacks are Pallet labeling: (presorted rate bundles) for the same 5- (1) Line 1: city, state, and 5-digit ZIP assigned to pallets according to the digit ZIP Code. Pallet labeling: Code destination (see M031 for military ‘‘label to’’ ZIP Code in L004. At the (1) Line 1: city, state, and 5-digit ZIP mail). Code destination (see M031 for overseas mailer’s option, appropriate mixed ADC (2) Line 2: ‘‘STD MACH 5D’’ or military mail). bundles or sacks may be sorted to BMC ‘‘PSVC MACH 5D,’’ as applicable. (2) Line 2: ‘‘PSVC IRREG CR/5D.’’ pallets according to the ‘‘label to’’ ZIP c. ASF (required if claiming DBMC e. 5-Digit Carrier Routes (required). Code in L802. All mixed ADC bundles rates, otherwise optional). Not available Permitted for bundles and sacks. Pallet and sacks must contain only pieces for the Buffalo, NY ASF in L602. Pallets must contain only carrier route mail for destinating within the BMC in Exhibit must contain only parcels for the 3-digit the same 5-digit ZIP Code. Pallet E751.1.3. Pallet labeling: ZIP Code groups in L602. labeling: (1) Line 1: L601. (1) Line 1: L602. (1) Line 1: city, state, and 5-digit ZIP (2) Line 2: ‘‘PSVC IRREG BMC.’’ (2) Line 2: ‘‘STD MACH ASF’’ or Code destination (see M031 for overseas l. Mixed BMC (optional). Permitted for ‘‘PSVC MACH ASF,’’ as applicable. military mail). sacks only. Pallet may contain carrier d. BMC (required). Pallets must (2) Line 2: ‘‘PSVC IRREG’’; followed route and/or presorted rate mail. Pallet contain only parcels for the 3-digit ZIP by ‘‘CARRIER ROUTES’’ (or ‘‘CR–RTS’’). labeling: Code groups in L601. Pallet labeling: f. 5-Digit (required). Permitted for (1) Line 1: ‘‘MXD’’ followed by (1) Line 1: L601. bundles and sacks. Pallet must contain information in L601, Column B, for (2) Line 2: ‘‘STD MACH BMC’’ or only presorted rate mail for the same 5- BMC serving 3-digit ZIP Code prefix of ‘‘PSVC MACH BMC,’’ as applicable. digit ZIP Code. Pallet labeling: entry post office (or labeled to plant e. Mixed BMC (optional). Pallet (1) Line 1: city, state, and 5-digit ZIP serving entry post office if authorized by labeling: Code destination (see M031 for overseas processing and distribution manager). (1) Line 1: ‘‘MXD’’ followed by military mail). (2) Line 2: ‘‘PSVC IRREG WKG.’’ information in L601, Column B, for

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BMC serving 3-digit ZIP Code prefix of 1.9 Exception—Periodicals limitations, when and to what extent entry post office (or labeled to plant Preparation they may adopt its policies and serving entry post office if authorized by [Revise 1.9 to read as follows:] procedures. The Purchasing Manual processing and distribution manager). As a general exception to 4.1 and 4.2, then became fully effective on January (2) Line 2: ‘‘STD MACH WKG’’ or Periodicals may be prepared in low- 27, 2000. ‘‘PSVC MACH WKG,’’ as applicable. volume 5-digit scheme, 5-digit, and 3- Subsequently, Issue 2 of the digit bundles containing fewer than six Purchasing Manual was issued on * * * * * January 31, 2002. Pending the updating [Redesignate current 3.0 as new 15.0, pieces, when the publisher determines that such preparation improves service, of purchasing support systems for and renumber accordingly.] if those bundles are placed in 5-digit consistency with the new policies 15.0 PALLET PRESORT AND scheme, 5-digit, and 3-digit sacks under contained in Issue 2, purchasing LABELING (Effective until January 6, M820. Low-volume bundles may also be organizations were advised that they 2005) placed in merged 5-digit scheme, might adopt the policies and procedures contained in Issue 2 immediately, or * * * * * merged 5-digit, 5-digit, 5-digit scheme, 3-digit, and SCF sacks under M920. might continue to follow the policies M200 Periodicals (Nonautomation) Low-volume sacks may also consist of a and procedures contained in Issue 1. If a purchasing organization adopted Issue M210 Presorted Periodicals firm bundle(s) when optional 5-digit scheme sortation is performed with 2 policies and procedures for any 1.0 BASIC STANDARDS mailings prepared in sacks. Low-volume category or categories of purchases, it would be required to use those policies * * * * * bundles also may be placed on merged 5-digit scheme, 5-digit scheme, merged and procedures consistently for that 1.5 Low-Volume Bundles and Sacks 5-digit, 5-digit, 5-digit metro, 3-digit, category or categories, and not revert to previous policies and procedures. and SCF pallets. [Revise 1.5 to read as follows:] Contracting officers were required to As a general exception to 2.0 and 4.0, * * * * * ensure that solicitations and other An appropriate amendment to 39 CFR nonletter-size Periodicals may be purchasing documents made part 111 will be published to reflect prepared in low-volume 5-digit and 3- prospective offerors fully aware of the these changes. digit bundles containing fewer than six authority (Issue 2 or Issue 1, as revised pieces when the publisher determines Neva R. Watson, through November 15, 2001) pursuant to that such preparation improves service, Attorney, Legislative. which an individual purchase was if those bundles are placed in 5-digit, 3- [FR Doc. 04–17303 Filed 7–28–04; 8:45 am] made. Particular care was required that digit, and SCF sacks. Low-volume BILLING CODE 7710–12–P previous versions of provisions and bundles also may be placed on merged clauses were not used in purchases 5-digit scheme, 5-digit scheme, merged made under the policies and procedures 5-digit, 5-digit, 5-digit metro, 3-digit, POSTAL SERVICE of Issue 2, and vice versa. To date, the and SCF pallets. Postal Service has not formally * * * * * 39 CFR Part 601 transitioned from PM Issue 1 to PM Issue 2 primarily because of problems in M220 Carrier Route Periodicals Issue 2 of the Purchasing Manual; updating purchasing support systems Incorporation by Reference 1.0 BASIC INFORMATION for consistency with the new policies AGENCY: Postal Service. contained in Issue 2. The end of this * * * * * transition period will be announced in ACTION: Final rule. 1.5 Low-Volume Bundles and Sacks the Federal Register. SUMMARY: The Postal Service announces The Purchasing Manual is published [Revise 1.5 to read as follows:] the publication of Issue 2 of the Postal and available to all users on the World As a general exception to 2.4 and 4.0, Service Purchasing Manual. Issue 2 Wide Web at http://www.usps.com/ nonletter-size Periodicals may be supersedes previous editions of the business, and contains the Postal prepared in low-volume carrier route Purchasing Manual, and is incorporated Service’s purchasing policy. bundles containing fewer than six by reference in the Code of Federal It will be noted that on March 24, pieces when the publisher determines Regulations. 2004 (69 FR 13786), the Postal Service that such preparation improves service, published a proposed rule in the DATES: Effective Date: This final rule is Federal Register entitled ‘‘Purchasing of if those bundles are placed in merged 5- effective on July 29, 2004. The digit scheme, 5-digit scheme carrier Property and Services’’. In this incorporation by reference of the document, the Postal Service proposed routes, merged 5-digit, or 5-digit carrier Purchasing Manual, Issue 2 is approved routes sacks. Low-volume carrier route to amend its regulations in order to by the Director of the Federal Register implement the acquisition portions of bundles also may be placed on merged as of July 29, 2004. 5-digit scheme, 5-digit scheme carrier its Transformation Plan (April 2000) FOR FURTHER INFORMATION CONTACT: and the similar recommendations of the routes, merged 5-digit, 5-digit carrier Michael J. Harris (202) 268–5653. routes, 5-digit metro, 3-digit, and SCF President’s Commission on the United SUPPLEMENTARY INFORMATION: Issue 1 of pallets. States Postal Service (July 2003) as they the Purchasing Manual was issued on relate to the acquisition of property and * * * * * January 31, 1997, as the successor to services. That earlier, ongoing M800 All Automation Mail former USPS Publication 41, the U.S. rulemaking is proceeding separately and Postal Service Procurement Manual. At independently, and should not be * * * * * that time, purchasing organizations considered to be a part of this current M820 Flat-Size Mail were advised that, pending the updating notice. of contract-writing systems, the On June 28, 2004 (69 FR 36018), the 1.0 BASIC STANDARDS purchasing organizations could Postal Service published in the Federal * * * * * determine, subject to specific Register a detailed discussion of the

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