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Daily Rules, Proposed Rules, and Notices of the Federal Government

POSTAL SERVICE

39 CFR Part 111

Domestic Competitive Products Pricing and Mailing Standards Changes

AGENCY: Postal ServiceTM.
ACTION: Final rule.
SUMMARY: The Postal Service is revisingMailing Standards of the United States Postal Service,Domestic Mail Manual (DMM(r)), to reflect changes to prices and mailing standards for the following competitive products: Express Mail(r), Priority Mail(r), First-Class Package ServiceTM, Parcel Select(r), Parcel Post(r), Extra Services, Return Services, Mailer Services, and Recipient Services.
DATES: Effective Date:January 27, 2013.
FOR FURTHER INFORMATION CONTACT: Margaret Choiniere (202) 268-7231 or Garry Rodriguez (202) 268-7281.
SUPPLEMENTARY INFORMATION:

This final rule describes new prices and product features for competitive products, by class of mail, established by the Governors of the United States Postal Service®. New prices are available under Docket Number CP2013-3 on the Postal Regulatory Commission's (PRC) Web site athttp://www.prc.gov,and are also located on the Postal Explorer® Web site athttp://pe.usps.com.

Competitive product prices and changes are identified by product as follows:

Express Mail Prices

Overall, Express Mail prices will increase 5.9 percent. Express Mail will continue to offer zoned Retail, Commercial BaseTMand Commercial PlusTMpricing tiers.

Retail prices will increase an average of 6.5 percent. The price for the Retail Flat Rate Envelope, Legal Flat Rate Envelope, and the recently-introduced Padded Flat Rate Envelope is increasing to $19.95. The Flat Rate Box price will remain at $39.95.

The existing Commercial Base prices offer lower prices to customers who use online and other authorized postage payment methods. Commercial Base prices will increase 2.0 percent.

The existing Commercial Plus price category offers price incentives to large volume customers. Commercial Plus prices will increase 1.0 percent.

Priority Mail Prices

Overall, Priority Mail prices will increase 6.3 percent. The price increase varies by price cell and price tier.

Retail prices will increase an average of 9.0 percent, but Retail Priority Mail will now include USPS® tracking and confirmation of delivery at no additional charge, offsetting about 3 percent of the increase. The regular Flat Rate envelope will be priced at $5.60, with the Legal Flat Rate Envelope priced at $5.75 and Padded Flat Rate Envelope priced at $5.95. Flat Rate Box prices will be: Small, $5.80; Medium, $12.35; Large, $16.85 and Large APO/FPO, $14.85.

Commercial Base prices offer lower prices to customers who use online and other authorized postage payment methods. Commercial Base prices will increase an average of 3.7 percent. Commercial Base pricing will offer an average 11.3 percent discount off retail prices.

Commercial Plus price category offers attractive price incentives to large volume customers. Commercial Plus prices will increase an average of 3.8 percent. Commercial Plus pricing will offer an average 16.2 percent discount off retail prices.

Critical Mail

Critical Mail® letters and flats are enhanced with a new option, signature upon delivery, as part of the service offering. The Critical Mail letter with signature option is priced at $4.60; the Critical Mail flat with signature option is priced at $5.35.

Critical Mail Returns

The Postal Service is providing a new option within the suite of USPS Returns Services to include Critical Mail pieces. This new product will afford customers the ability to expedite their returns by using barcoded USPS Critical Mail (letters and flats).

First-Class Package Service Prices

Overall, First-Class Package Service prices will increase 3.0 percent. The Intelligent Mail® package barcode (IMpb) will continue to provide free USPS tracking and confirmation of delivery with these parcels.

New Payment Method for First-Class Package Service Commercial Plus

The Postal Service is revising the DMM to add PC Postage endicia as a new payment method for First-Class Package Service Commercial Plus parcels.

Surcharges for First-Class Package Service Parcels

First-Class Package Service mailers are currently assessed a $0.05 per piece surcharge for parcels weighing less than 2 ounces, parcels that are irregularly shaped (such as rolls, tubes or triangles), or parcels that lack a unique tracking barcode (previously a Postal routing barcode). These surcharges relate to additional handling required in Postal Service processing in order to work these pieces. As a result, the surcharge was not assessed for First-Class Package Service parcels presented in 5-digit/scheme containers.

The Postal Service is eliminating the surcharge for First-Class Package Service parcels under 2 ounces since the new prices will reflect that these pieces are generally nonmachinable. The Postal Service will retain a surcharge for First-Class Package Service parcels that are irregularly shaped, but will also retain the prior exclusion for parcels that are presented in 5-digit/scheme containers.

The standards implementing Intelligent Mail package barcodes (IMpb) requires an IMpb on First-Class Package Service parcels claiming presort pricing, effective January 7, 2013 (extended to January 27, 2013). Therefore the surcharge for parcels not bearing a barcode is no longer applicable for First-Class Package Service parcels claiming 5-digit, 3-digit or area distribution center (ADC) prices. The Postal Service will retain the surcharge for First-Class Package Service parcels claiming mixed ADC/single-piece prices that do not have a barcode. This surcharge and the surcharge for irregularly shaped First-Class Package Service parcels will increase to $0.08 per piece.

Parcel Select Prices

On average, Parcel Select prices will increase 9.0 percent.

The average price increase for Parcel Select Destination Entry destination delivery unit (DDU) is 8.0 percent, for destination sectional center facility (DSCF) 4.9 percent, and for destination network distribution center (DNDC) 4.8 percent.

The prices for Parcel Select NDC (network distribution center) and ONDC (origin network distribution center) presorted parcels are increasing 5.7 and 4.3 percent respectively. The prices for Parcel Select Nonpresort parcels are increasing 4.2 percent.

The prices for Parcel Select LightweightTM(PSLW) will increase 9.8 percent. The IMpb will continue to provide free USPS tracking and confirmation of delivery with PSLW as well.

Parcel Select Regional Ground

The Postal Service has decided to discontinue Parcel Select Regional GroundTMservice due to inadequate usage.

Parcel Post

On July 20, 2012, in Docket No. MC2012-13, the PRC gave conditional approval for Parcel Post to be transferred to the competitive product list. The three conditions outlined in the docket have been met. Parcel Post is now a competitive product and pending review by the PRC the product will be renamed “Standard PostTM”. A global change will be made to the DMM for the January 27, 2013, update.

As a result of the transfer of Parcel Post to a competitive product, it will no longer be included under the list of products that comprise Package Services. Parcel Post will only be offered through retail channels, and will include USPS tracking and confirmation of delivery at no additional charge. Customers will now be able to access processing and delivery scans for their parcels online at USPS.com®.

Extra Services Adult Signature Service

Adult Signature Service prices are increasing. The price for Adult Signature Required is $4.95 and Adult Signature Restricted Delivery is $5.15.

New Delivery Confirmation Label

In response to the structural changes being made to Delivery Confirmation extra service labels, the Postal Service will replace the current Label 314,electronic Delivery Confirmation,with a new Label 400,USPS Tracking.Label 400 will include an Intelligent Mail package barcode and will be provided for use by electronic option mailers. These labels may also be affixed to retail mailpieces by USPS retail associates when an applicable mailpiece is presented at a retail location without postage validation imprint (PVI) capability.

Return Services Parcel Return Service

Parcel Return Service (PRS) prices will have an overall price increase of 4.8 percent. Return Network Distribution Center (RNDC) prices will have a 1.0 percent increase; Return Sectional Center Facility (RSCF) prices will increase less than 1.0 percent, and Return Delivery Unit (RDU) prices will increase 8.5 percent.

The Parcel Return Service annual permit fee and annual account maintenance fee are increasing. Information on fees can be found in the Domestic Mailing ServicesFederal RegisterNotice.

Nonstandard PRS Labels

PRS participants are required to use labels that meet the specific criteria described in the DMM. To allow for the consistent capture and staging of PRS mailpieces at their intended pick-up points, the Postal Service has constructed a rigorous precertification process to assure PRS labels meet these established criteria.

The Postal Service has recently become aware of incidents where PRS permit holders have used noncompliant labels, resulting in PRS parcels being routed to the address on mailpiece, instead of the intended pick-up point. In addition, some PRS permit holders have requested exceptions for the use of noncompliant dual-purpose labels that have also resulted in the misdirection of PRS mailpieces to the address on the label. Currently, the Postal Service does not have a pricing mechanism to account for these instances where additional handling has occurred due to a mailer's noncompliant label.

As a result, the Postal Service will now specify when noncompliant labels are affixed to PRS parcels, which travel through the postal network to the delivery address on the label, the permit holder will be charged postage at the appropriate Parcel Post price, calculated from the parcel's entry point in the USPS network to its delivery address. If the parcel's entry point can not be determined, then postage will be calculated at Zone 4.

Parcel Return Service—Full Network

The Postal Service is introducing a new option for mailers receiving large quantities of return parcels, Parcel Return Service—Full Network (PRS—Full Network). Mailers with an annual volume of 50,000 or more return parcels, and who desire a full-network option from the USPS may enroll in PRS—Full Network.

PRS—Full Network provides a new returns option for mailers to receive return parcels entered by their customers anywhere within the Postal Service's network. PRS—Full Network features full network pricing, encompassing all eight USPS zones. To expedite delivery, PRS—Full Network will generally bypass the mailer's local delivery unit and will provide delivery of return parcels directly from the processing facility/sectional center facility (SCF) servicing the location of the mailer's designated return site.

PRS—Full Network participants will be required to pay postage through the scan based payment (SBP) program as specified in the DMM, and must obtain a Centralized Account Payment System (CAPS) debit account (instructions for enrollment are provided on the RIBBS Web site athttp://ribbs.usps.gov). Participants will also be required to pay an annual Parcel Return Service (PRS) fee and an annual PRS account maintenance fee.

Each PRS—Full Network mailpiece must bear an Intelligent Mail package barcode that includes the appropriate service type code (STC), and a selection of STCs have been developed for use with PRS—Full Network mailpieces. Detailed specifications are defined in Publication 91,Confirmation Services Technical Guide.

The addition of PRS—Full Network to the USPS product line provides an alternative to the current first-mile option available through its regular PRS returns network, and a full network solution for those mailers who are unable to pick-up their returns at the locations specified in conventional PRS agreements.

This revision also incorporates clarifying language in the DMM under Scan Based Payment, providing that participants must pay postage through a Centralized Account Payment System (CAPS) debit account. This requirement has been a condition for the use of Scan Based Payment since its inception.

Mailer Services Premium Forwarding Service

The enrollment fee for Premium Forwarding Service® (PFS®) will not increase, remaining at $15.00. The price of the weekly reshipment charge will increase from $15.25 to $17.00.

USPS Package Intercept

The USPS Package InterceptTMfee will not change for January 2013.

Pickup on Demand

The Pickup on Demand® service daily fee will increase from $15.30 to $20.00.

The Postal Service is revising the DMM to include Pickup on Demand enhancements that automate the payment method for all package pickup services, and also adds an option for requesting recurring pickups through the online package pickup program atwww.usps.com.

Additionally, the Postal Service is revising the DMM to rename “Carrier Pickup” (a pickup that occurs as part of a regularly scheduled delivery or collection stop) as Package Pickup.

Recipient Services Post Office Box Service

The competitive Post Office BoxTMservice prices will increase an average of 2.6 percent within the existing price ranges previously set.

Other

New for January 2013, customers can order flat rate packaging supplies online in smaller quantities than currently provided and will be able to pay a fee to get supplies delivered faster than the current free service provided. The new expedited service fee is priced at $2.50.

Resources

The Postal Service provides additional resources to assist customers with this price change for Shipping Services. These tools include price lists, downloadable price files, andFederal RegisterNotices, which may be found on the Postal Explorer Web site atpe.usps.com.

The Postal Service adopts the following changes toMailing Standards of the United States Postal Service,Domestic Mail Manual (DMM), incorporated by reference in theCode of Federal Regulations.See 39 CFR 111.1.

List of Subjects in 39 CFR Part 111

Administrative practice and procedure, Postal Service.

Accordingly, 39 CFR part 111 is amended as follows:

PART 111—[AMENDED] 1. The authority citation for 39 CFR part 111 continues to read as follows: Authority:

5 U.S.C. 552(a); 13 U.S.C. 301-307; 18 U.S.C. 1692-1737; 39 U.S.C. 101, 401, 403, 404, 414, 416, 3001-3011, 3201-3219, 3403-3406, 3621, 3622, 3626, 3632, 3633, and 5001.

2. Revise the following sections ofMailing Standards of the United States Postal Service,Domestic Mail Manual (DMM) as follows: Mailing Standards of the United States Postal Service,Domestic Mail Manual (DMM) 100Retail Mail 102Elements On the Face of a Mailpiece 3.0Placement and Content of Mail Markings 3.3Mail Markings

[Revise the first sentence in the introductory text of 3.3 as follows:]

Mailers must print the basic required Package Services subclass marking—“Media Mail,” or “Library Mail”—or “Parcel Post” on each piece claimed at the respective price. * * *

[Revise the first sentence of item 3.3a as follows:]

a. The service icon that will identify Parcel Post and all Package Services subclasses will be a 1-inch solid black square. * * *

[Revise the second sentence of item 3.3b as follows:]

b. * * * If the service banner is used, Parcel Post or the appropriate Package Services subclass marking (e.g., “MEDIA MAIL,” “LIBRARY MAIL”) must be preceded by the text “USPS” and must be printed in minimum 20-point bold sans serif typeface, uppercase letters, centered within the banner, and bordered above and below by minimum 1-point separator lines. * * *

[Revise the heading of Exhibit 3.3 as follows:]

Exhibit 3.3Parcel Post and Package Services Indicator Examples

[Revise the first example to have the indicator read “USPS PARCEL POST” instead of “USPS PARCEL SELECT”.]

120Priority Mail 126Deposit 1.0Deposit

[Delete 1.3, Returns, in its entirety.]

130First-Class Mail 136Deposit 1.0Deposit for First-Class Mail

[Delete the heading 1.1, Single-Piece and Card Mailings, and move text under 1.0. Delete 1.2, Returns, in its entirety.]

150Parcel Post 153Prices and Eligibility 1.0Parcel Post Prices and Fees

[Delete 1.2, Determining Single-Piece Weight, in its entirety. Renumber 1.3 through 1.7 as 1.2 through 1.6.]

1.2Parcel Post Price Application

[Revise the text of renumbered 1.2 by adding a new last sentence as follows:]

* * * See Notice 123—Price List.

[Delete renumbered 1.3, Computing Postage—Parcel Post With Permit Imprint, in its entirety. Renumber 1.4 through 1.6 as 1.3 through 1.5.]

[Delete renumbered 1.5, Prices, in its entirety.]

2.0Basic Eligibility Standards for Parcel Post 2.1Definition of Parcel Post

[Revise the text of 2.1 as follows:]

Parcel Post is a separate product offered only through retail channels.

2.4Delivery and Return Addresses

[Revise the text of 2.4 as follows:]

All Parcel Post mail must bear a delivery and return address.

154Postage Payment Methods 1.0Postage Payment Methods for Parcel Post

[Delete the heading 1.1, Payment Method, and move the text under 1.0. Revise the text as follows:]

The mailer is responsible for proper postage payment. Subject to the corresponding standards, postage for Parcel Post mail may be paid by postage evidencing system indicia (see 604) or by ordinary postage stamps. Pieces with postage affixed must bear the correct numerical value of postage.

[Delete 1.2, Affixing Postage—Single-Piece Mailings, and 2.0, Postage Paid With Permit Imprint, in their entirety.]

155Mail Preparation 1.0Preparation for Parcel Post 1.1Basic Preparation

[Revise the text of 1.1 as follows:]

There are no presort, sacking, or labeling standards for Parcel Post pieces.

1.2Delivery and Return Addresses

[Revise the text of 1.2 as follows:]

All Parcel Post pieces must bear both a delivery address and the sender's return address.

1.3Basic Markings

[Revise the first sentence of 1.3 as follows:]

The basic required marking—“Parcel Post”—must be printed on each piece. * * *

[Delete 1.4, Required Use, in its entirety.]

156Deposit 1.0Deposit for Parcel Post

[Revise the heading of 1.1 as follows:]

1.1Deposit

[Revise the text of 1.1 as follows:]

Parcel Post mail must be deposited at a time and place specified by the postmaster or designee at the office of mailing. Parcel Post is primarily intended to be presented at a USPS retail service counter where USPS tracking and confirmation of delivery service can be initiated.

[Delete 1.2, 1.3, and 1.4. Renumber 1.5 through 1.7 as new 1.2 through 1.4.]

[Delete renumbered 1.4, Returns, in its entirety.]

200Commercial Letters and Cards 220Priority Mail 223Prices and Eligibility 1.0Prices and Fees 1.4Critical Mail Prices

[Renumber 1.4.1 and 1.4.2 as 1.4.2 and 1.4.3. Add new 1.4.1 as follows:]

1.4.1Prices

Critical Mail letters has two price options, Critical Mail letters and Critical Mail letters with signature. For prices, see Notice 123—Price List.

300Commercial Flats 320Priority Mail 323Prices and Eligibility 1.0Prices and Fees 1.4Critical Mail Prices

[Renumber 1.4.1 and 1.4.2 as 1.4.2 and 1.4.3. Add new 1.4.1 as follows:]

1.4.1Prices

Critical Mail flats has two price options, Critical Mail flats and Critical Mail flats with signature. For prices, see Notice 123—Price List.

400Commercial Parcels 401Physical Standards 1.0Physical Standards for Parcels 1.3Maximum Weight and Size

[Revise the second sentence of 1.3 as follows:]

* * * Lower weight limits apply to parcels mailed at Priority Mail commercial plus cubic, Regional Rate Box, First-Class Package Service, Standard Mail, and Bound Printed Matter prices. ***

2.0Additional Physical Standards by Class of Mail 2.5Parcel Select

[Delete 2.5.3, Parcel Select Regional Ground, in its entirety and renumber 2.5.4 as 2.5.3.]

402Elements on the Face of a Mailpiece 2.0Placement and Content of Markings

[Revise the heading of 2.5 as follows:]

2.5Parcel Select, Parcel Post, Bound Printed Matter, Media Mail, and Library Mail Markings 2.5.1Basic Markings

[Revise the first sentence of the introductory text of 2.5.1 as follows:]

The basic required marking (e.g., “Parcel Select”, “Parcel Select Lightweight”, “Parcel Post”, “Bound Printed Matter”, “Media Mail”, “Library Mail”) must be printed on each piece claimed at the respective price. * *

[Delete item 2.5.1b and renumber 2.5.1c as 2.5.1b.]

2.5.2Parcel Select Markings

[Delete item 2.5.2e and renumber item 2.5.2f as 2.5.2e.]

[Delete 2.5.3, Parcel Select Regional Ground Markings, in its entirety. Renumber 2.5.4 through 2.5.7 as 2.5.3 through 2.5.6.]

430First-Class Package Service 433Prices and Eligibility 1.0Prices and Fees for First-Class Package Service 1.5Surcharge

A surcharge applies for parcels with the following characteristics:

[Revise the text of item 1.5a as follows:]

a. Unless prepared in 5-digit/scheme containers, presorted parcels that are irregularly shaped, such as rolls, tubes, and triangles.

[Revise the text of item 1.5b by deleting the last sentence.]

3.0Basic Standards for First-Class Package Service Parcels 3.4IMpb Standards

[Revise the text of 3.4 as follows:]

First-Class Package Service parcels claiming presorted prices or with postage paid through a PC Postage system must bear an Intelligent Mail package barcode prepared under 708.5.0.

434Postage Payment and Documentation 1.0Basic Standards for Postage Payment 1.1Postage Payment Options

[Revise the first sentence of 1.1 as follows:]

Postage for First-Class Package Service parcels must be paid with postage evidencing system postage or permit imprint as specified below. * * *

2.0Postage Payment for Presorted First-Class Package Service Parcels 2.2Affixed Postage for First-Class Package Service Parcels

[Revise the introductory text of 2.2 as follows:]

Each presorted First-Class Package Service parcel bearing postage evidencing system indicia (IBI Meter or PC Postage permitted for Commercial Base, or PC Postage permitted for Commercial Plus parcels) must bear one of the following:

450Parcel Select 453Prices and Eligibility 1.0Prices and Fees 1.1Price Application

[Revise the fourth sentence in the introductory text of 1.1 by deleting the parenthetical at the end of the sentence.]

[Delete item 1.1d and renumber item 1.1e as 1.1d.]

[Revise the heading of 3.0 as follows:]

3.0Price Eligibility for Parcel Select and Parcel Select Lightweight

[Delete 3.4, Parcel Select Regional Ground, in its entirety. Renumber 3.5 through 3.9 as 3.4 through 3.8.]

3.7Delivery and Return Address

[Revise the third sentence of renumbered 3.7 as follows:]

* * * Alternative addressing formats under 602.3.0 or detached address labels under 602.4.0 may be used. * *

3.8Hold for Pickup

[Revise the text of renumbered 3.8 as follows:]

Only Parcel Select Nonpresort parcels are eligible for Hold For Pickup service and are held at a designated Post Office location for pickup by a specified addressee or designee (see 508.8.0).

454Postage Payment and Documentation 1.0Basic Standards for Postage Payment 1.1Postage Payment Options

[Delete 1.1.1 in its entirety.]

455Mail Preparation 1.0General Information for Mail Preparation 1.8Parcel Select Markings

[Delete item 1.8e and renumber item 1.8f as 1.8e.]

[Delete 7.0, Preparing Parcel Select Regional Ground, in its entirety and renumber 8.0 as 7.0.]

456Enter and Deposit 1.0Verification 1.1Verification and Entry

[Delete the last sentence of 1.1.]

1.2Office of Mailing

[Delete the heading 1.2.1, Parcel Select, and move the text under 1.2. Delete 1.2.2 in its entirety.]

1.3Redirected Mailings

[Revise the introductory text of 1.3 as follows:]

A shipper who presents large shipments of zoned Parcel Select mail may be authorized or directed to deposit such shipments at another postal facility when processing or logistics make such an alternative desirable for the USPS, subject to these conditions:

1.4NDC Acceptance

[Revise the introductory text of 1.4 as follows:]

A mailer may present Parcel Select at a NDC for acceptance if:

2.0Deposit

[Delete 2.18 and 2.19 in their entirety.]

500Additional Mailing Services 503Extra Services 1.0Extra Services for Express Mail 1.2Express Mail Drop Shipment

For an Express Mail drop shipment, the content of each Express Mail pouch is considered one mailpiece for indemnity coverage, and the mail enclosed may receive only the following services:

[Revise the text of item 1.2d as follows:]

d. Parcel Post, Package Services and Parcel Select mail may be sent with special handling or, for parcels only, electronic option Delivery Confirmationservice or electronic option Signature Confirmation service.

4.0Insured Mail 4.2Basic Information 4.2.2Eligible Matter

The following types of mail may be insured:

[Revise the text of item 4.2.2a as follows:]

a. First-Class Mail, First-Class Package Service and Priority Mail (including Critical Mail), if it contains matter that is eligible to be mailed at Standard Mail, Parcel Post, or Package Services prices.

[Revise the text of item 4.2.2c as follows:]

c. Parcel Post, Package Services, and Parcel Select pieces.

4.2.4Additional Services

* * * The following additional services may be combined with insurance if the applicable standards for the services are met and additional service fees are paid:

[Revise item 4.2.4f as follows:]

f. Adult Signature Required and Adult Signature Restricted Delivery are available for insured Express Mail, Priority Mail (including Critical Mail), and Parcel Select Nonpresort.

5.0Certificate of Mailing 5.2Basic Information 5.2.2Eligible Matter—Single Piece

[Revise the text of 5.2.2 as follows:]

Form 3817, or a USPS approved facsimile, is used for a certificate of mailing for an individual First-Class Mail, Priority Mail (excluding Critical Mail), Parcel Return Service, Parcel Post, or Package Services mailpiece.

6.0Return Receipt 6.2Basic Information 6.2.2Eligible Matter

Return receipt service is available for:

[Revise the text of item 6.2.2d as follows:]

d. Parcel Post or Package Services when purchased at the time of mailing with COD or insured mail (for more than $200.00).

6.2.4Additional Services

If return receipt service has been purchased with one of the services listed in 6.2.2, one or more of the following extra services may be added at the time of mailing if the standards for the services are met and the additional service fees are paid:

[Revise the text of items 6.2.4a and 6.2.4b as follows:]

a. Delivery Confirmation (First-Class Mail parcels, Priority Mail, Parcel Post, Package Services, and Parcel Select parcels).

b. Parcel airlift service (PAL) (Priority Mail, Parcel Post, and Package Services).

[Revise the text of item 6.2.4d as follows:]

d. Signature Confirmation (Priority Mail, Parcel Post, Package Services, and Parcel Select parcels).

8.0Restricted Delivery 8.2Basic Information 8.2.2Eligible Matter

Restricted Delivery service is available for:

[Revise the text of item 8.2.2c as follows:]

c. Parcel Post, Package Services, or Parcel Select pieces when purchased at the time of mailing with COD or insured mail (for more than $200.00).

9.0Adult Signature 9.2Basic Information 9.2.3Eligible Matter

Adult Signature Required and Adult Signature Restricted Delivery are available for:

[Delete item 9.2.3d.]

9.2.4Ineligible Matter

Adult Signature Required and Adult Signature Restricted Delivery are not available for:

[Renumber items 9.2.4c through 9.2.4h as 9.2.4d through 9.2.4i. Add new 9.2.4c as follows:]

c. Parcel Post.

9.2.6Additional Services

Adult Signature may also be combined with:

c. Hold For Pickup

[Delete item 9.2.6c4.]

10.0Return Receipt for Merchandise 10.2Basic Information 10.2.2Eligible Matter

[Revise the text of 10.2.2 as follows:]

Return receipt for merchandise is available for merchandise sent as Priority Mail (excluding Critical Mail), Standard Mail machinable and irregular parcels, Parcel Post, Package Services, and Parcel Select pieces.

11.0Delivery Confirmation 11.1Delivery Confirmation Fee 11.1.2Fees and Postage

[Revise the last sentence of 11.1.2 as follows:]

* * * The electronic price is applicable when customers privately print an electronic Delivery Confirmation label or Label 400 and establish an electronic link with the USPS to exchange acceptance and delivery data.

11.2Basic Information 11.2.2Eligible Matter

[Revise the first sentence of the introductory text of 11.2.2 as follows:]

Delivery Confirmation service is available for First-Class Mail parcels and First-Class Package Service parcels (electronic option only); all Priority Mail pieces (at no additional charge); Standard Mail parcels (electronic option only); Package Services parcels, Parcel Post parcels (at no additional charge) and Parcel Select parcels. * * *

11.2.5Service Options

The Delivery Confirmation service options are:

[Revise the text of items 11.2.5a and 11.2.5b as follows:]

a. Retail option: Available at the time of mailing and a mailing receipt is provided. A mailer may mail articleswith retail option Delivery Confirmation (Form 152) affixed at a Post Office, branch, or station, or give articles to a rural carrier. A mailer may also present Parcel Post or Priority Mail packages to a retail employee at a Post Office, station, or branch and the retail associate will affix a Delivery Confirmation label to the package at no additional charge. Mailers can access delivery information over the Internet atwww.usps.comor by calling 1-800-222-1811 toll-free and providing the article number.

b. Electronic option: Privately printed forms or labels or Label 400 options are available to mailers who establish an electronic link with the USPS to exchange acceptance and delivery data. Since no mailing receipt is provided with the electronic option, mailers wishing to obtain a mailing receipt may use Form 3877 (11.2.8).

[Delete 11.2.7 in its entirety and renumber 11.2.8 as 11.2.7.]

11.3Labels 11.3.1Types of Labels

[Revise the introductory text of 11.3.1 as follows:]

Mailers not printing their own labels must use one of the label options shown below (for additional information see Publication 91,Confirmation Services Technical Guide):

[Revise the text of item 11.3.1b as follows:]

b. Label 400 is intended for use by electronic option mailers, and may be affixed to mailpieces by an associate when an applicable mailpieces are presented at retail locations without postage validation imprint (PVI) capability.

[Revise the heading and insert new Exhibit 11.3.1b as follows:]

Exhibit 11.3.1bLabel 400

[Insert “Label 400” here.]

[Revise the text of item 11.3.1c as follows:]

c. Privately printed barcoded labels must meet the requirements in 11.3 and 11.4 and must include an Intelligent Mail package barcode prepared under 11.4 and 708.5.0. On the Priority Mail label, mailers must use the registered trademark symbol following the Priority Mail text or add the following statement at the bottom of the label in at least 6-point Helvetica type: “Priority Mail is a registered trademark of the U.S. Postal Service.”

[Add new item 11.3.1d and Exhibit 11.3.1d as follows:]

d. Integrated Retail Systems Labels may be affixed to mailpieces, as applicable, by a retail associate when presented by a mailer at a Post Office, station, or branch.

Exhibit 11.3.1dIntegrated Retail Systems PVI Label

[Insert “PVI Label” here.]

11.4Barcodes 11.4.1Barcode Use and Symbology

[Revise the introductory text of 11.4.1 as follows:]

Labels printed by mailers with Intelligent Mail package barcodes must meet the following GS1-128 barcode symbology requirements:

[Revise the first sentence of item11.4.1a as follows:]

a. Mailers printing their own barcodes and using the retail service option (11.2.5a) must use an Intelligent Mail package barcode with GS1-128 barcode symbology. * * *

[Revise the first sentence of item 11.4.1b as follows:]

b. Mailers printing their own Intelligent Mail package barcodes and using the electronic service option (11.2.5b) must use the GS1-128 barcode symbology. * * *

11.4.4Integrated Barcodes

[Revise the fifth sentence of the introductory text of 11.4.4 as follows:]

* * * Minor modifications allow users to request multiple extra services on Priority Mail, Parcel Post, and Package Services parcels. * * *

12.0Signature Confirmation 12.2Basic Information 12.2.2Eligible Matter

[Revise the introductory text of 12.2.2 as follows:]

Signature Confirmation is available for First-Class Mail parcels and First-Class Package Service parcels (electronic option only); all Priority Mail pieces; Parcel Post, Package Services, and Parcel Select parcels under 401.1.0. For the purposes of using Signature Confirmation with Parcel Post, Package Services or Parcel Select parcels, the parcel must meet these additional requirements:

13.0Collect on Delivery (COD) 13.2Basic Information 13.2.2Eligible Matter

[Revise the introductory text of 13.2.2 as follows:]

COD service may be used for Express Mail, First-Class Mail, Priority Mail (excluding Critical Mail), Parcel Post, and any Package Services or Parcel Select (except Parcel Select Lightweight) sub-category if:

13.4Mailing 13.4.6Where to Mail

[Revise the text of 13.4.6 as follows:]

COD mail must be mailed at a Post Office, station, or branch or through a rural carrier. It may not be placed in a Post Office maildrop or in or on a street letterbox. It may be placed in, but not on, a rural mailbox.

14.0Special Handling 14.2Basic Information 14.2.2Eligible Matter

[Revise the text of 14.2.2 as follows:]

Special handling service is available only for First-Class Mail, Priority Mail (excluding Critical Mail), Parcel Post, Package Services, and Parcel Select (except Parcel Select Lightweight) pieces.

14.2.3Additional Services

The following extra services may be combined with special handling if the applicable standards for the services are met and the additional service fees are paid:

[Revise item 14.2.3d as follows:]

d. PAL (for Parcel Post or Package Services only).

505Return Services 3.0Merchandise Return Service 3.2Basic Standards 3.2.1Description

[Revise the text of 3.2.1 as follows:]

Merchandise return service allows an authorized permit holder to pay thepostage and extra service fees on single-piece price First-Class Mail, First-Class Package Service, Priority Mail, Parcel Post, Parcel Select and Package Services parcels that are returned to the permit holder by the permit holder's customers via a special label produced by the permit holder.

3.7Priority Mail Reshipment 3.7.1Description

[Revise the first sentence of 3.7.1 as follows:]

An authorized permit holder may use merchandise return service to have mail (previously sent at First-Class Mail, Parcel Post, and Package Services prices) reshipped by Priority Mail to the Post Office where the permit is held. * * *

4.0USPS Return Services 4.1Description

[Revise the first sentence of 4.1 as follows:]

Priority Mail Return Service (including Critical Mail), First-Class Package Return Service and Ground Return Service provide return service options to customers who meet the applicable standards in this section. * * *

4.3Extra Services

[Revise the text of 4.3 as follows:]

Only USPS insurance for items with a value of $200 or less can be purchased by the mailer at retail for Priority Mail Return Service (including Critical Mail), First-Class Package Return Service and Ground Return Service.

4.4Pricing 4.4.2Commercial Plus Prices

Permit holders may combine cumulative volumes for Priority Mail Return Service and First-Class Package Return Service. Eligibility for commercial plus prices are available to permit holders who qualify for commercial base prices, and at least one of the following:

[Add new item 4.4.2e as follows:]

e. Have a signed commercial plus Critical Mail commitment agreement with USPS.

4.5Computing Postage

[Revise the first sentence of 4.5 as follows:]

Postage is calculated based on the weight of the parcel and zone, except for First-Class Package Return Service, for which postage is based on the weight of the parcel and Critical Mail returns, for which postage is based on flat rate pricing. * * *

4.7Priority Mail Return Service

[Add new 4.7.5 as follows:]

4.7.5Critical Mail Returns

In addition to the applicable standards in 4.0, mailers may use Critical Mail barcoded letters and flats meeting eligibility standards in 223.0 and 323.0 for returns.

4.9Ground Return Service 4.9.3Prices and Eligibility

[Revise the third sentence of 4.9.3 as follows:]

* * * Ground Return Service eligibility and pricing are the same as retail Parcel Post.

5.0Parcel Return Service 5.3Prices 5.3.4Parcel Post Prices

[Revise the text of 5.3.4 as follows:]

PRS-labeled parcels shipped from origin ZIP Codes 006-009, 967-969, and 995-999 that are picked up at an RNDC are subject to retail Parcel Post prices.

[Add new 5.3.5 as follows:]

5.3.5Noncompliant Labels

PRS permit holders must use USPS-certified labels meeting the standards in 5.4. When noncompliant labels are affixed to PRS parcels, which travel through the Postal network to the delivery address of the label, the permit holder will be assessed the appropriate Parcel Post price, calculated from the parcel's entry point in the USPS network to its delivery address. If the parcel's entry point can not be determined, then postage will be calculated at zone 4.

[Renumber 6.0 as 7.0. Add new 6.0 as follows:]

6.0Parcel Return Service—Full Network 6.1Description

Parcel Return Service—Full Network (PRS—Full Network) provides for the bulk delivery of parcels to authorized permit holders or their agents. Permit holders must guarantee payment of postage for all parcels mailed with a PRS—Full Network label. By providing an approved PRS—Full Network label to its customers, the merchant or other party designates the permit holder identified on the label as their agent for receipt of mail bearing that label, and authorizes the USPS to deliver that mail to the permit holder or its designee. Payment for parcels returned under PRS—Full Network is deducted from a separate advance deposit (postage-due) account funded through the Centralized Account Processing System (CAPS) debit account as provided in 705.25,Scan Based Payment.

6.1.2Conditions for Mailing

Parcels may be mailed as PRS—Full Network when all of the following conditions apply:

a. Parcels contain only matter that is eligible as Parcel Post, as described in 153.3.0 and 153.4.0.

b. Parcels bear a PRS—Full Network label that meets the standards in 6.4.

c. The permit holder has paid the annual PRS permit fee and the annual PRS account maintenance fee.

d. Permit holders must participate in the scan based payment (SBP) program under 705.25.0.

e. Permit holders must demonstrate an annual volume of at least 50,000 qualifying parcels to each location.

f. Each mailpiece must bear an accurate Intelligent Mail package barcode prepared under 708.5.0.

6.1.3Services

Pieces using PRS—Full Network may not bear an ancillary service endorsement (see 102.4.0 and 507.1.5).

6.1.4Customer Mailing Options

Returned parcels may be deposited as follows:

a. At any Post Office, station, or branch.

b. In any collection box (except an Express Mail box).

c. With any letter carrier.

d. As part of a collection run for other mail (special arrangements may be required).

e. At any place designated by the postmaster for the receipt of mail.

6.1.5Application

Companies who wish to participate in PRS—Full Network must send a request on company letterhead to the manager, Business Mailer Support (see 608.8.0 for address). The request must contain the following information:

a. Company name and address.

b. An individual's contact name, telephone number, fax number, and email address.

c. The proposed delivery locations requested.

6.1.6Approval

The manager, Business Mailer Support reviews each request and proceeds as follows:

a. If the applicant meets the criteria, the manager, Business Mailer Support approves the letter of request and sends an authorization letter outlining the terms and conditions for the program.

b. If the application does not meet the criteria, the manager, Business Mailer Support denies the request and sends a written notice to the applicant with the reason for denial.

6.1.7Cancellation

The USPS may cancel a PRS—Full Network permit for any of the following reasons:

a. The permit holder fails to provide for adequate facilities to permit the delivery of PRS—Full Network mailpieces in bulk.

b. The permit holder fails to meet the terms of their SBP authorization or CAPS account agreement.

c. The permit holder does not fulfill the terms and conditions of the PRS—Full Network permit authorization.

d. The return labels do not conform to the specifications in 6.4.

6.1.8Reapplying After Cancellation

To receive a new PRS—Full Network permit after cancellation under 6.1.7 the mailer must:

a. Submit a letter to the manager, Business Mailer Support requesting a permit and a new agreement.

b. Pay a new permit fee.

c. Provide evidence showing that the reasons for cancellation no longer exist.

d. Maintain adequate available funds to cover the expected number of returns.

6.1.9Delivery Schedule and Location

Permit holders or their agents will receive parcels on a regular schedule from designated Postal facilities. Permit holders must provide an adequate location, appropriate to the volume of parcels received, for which to receive delivery of their PRS—Full Network mailpieces. When volume dictates, permit holders may be required to provide a delivery location with a dock or lift, and the ability to accept pallets or other USPS mail transport equipment.

6.2Postage and Fees 6.2.1Postage

Postage for PRS—Full Network includes prices for any machinable and non-machinable parcels. See Notice 123—Price List.

6.2.2Fees

The participant must pay an annual PRS permit fee and an annual PRS account maintenance fee at each location where a PRS—Full Network permit is held. See Notice 123—Price List for applicable fee.

6.3Prices 6.3.1PRS—Full Network Prices

PRS—Full Network prices are zone-based, beginning from where the article entered the postal network to its designated delivery location.

6.3.2Balloon and Oversized Prices

Parcels weighing less than 20 pounds but measuring more than 84 inches in combined length and girth are charged the applicable price for a 20-pound parcel (balloon price). Regardless of weight, any parcel that measures more than 108 inches (but not more than 130 inches) in combined length and girth must pay the oversized price.

6.4Label Formats 6.4.1Label Preparation

PRS—Full Network labels must be certified by the USPS for use prior to distribution as defined in the service agreement. Labels must be prepared in accordance with the standards for Intelligent Mail package barcodes under 708.5.0. Any photographic, mechanical, or electronic process or any combination of these processes may be used to produce PRS—Full Network labels. The background of the label may be any light color that allows the address, barcodes, and other required information to be easily distinguished. If labels are electronically transmitted to customers for their local printing, the permit holder must advise customers of these printing requirements as part of the instructions in 6.4.3.

6.4.2Labeling Methods

If all applicable contents and formats are approved (including instructions to the user), permit holders or their agents may distribute a PRS—Full Network label by any of the following methods:

a. As an enclosure with merchandise when initially shipped as part of the original invoice accompanying the merchandise, or as a separate label preprinted by the permit holder. If the reverse side of the label bears an adhesive, it must be strong enough to bond the label securely to the mailpiece.

b. As an electronic file created by the permit holder for local printing by the customer.

6.4.3Instructions

Regardless of label distribution method, permit holders or their agents must always provide written instructions to the PRS—Full Network label end-user that, at a minimum, directs them as follows:

a. If your name and address are not already printed in the return address area, please print them neatly in that area or attach a return address label there.

b. Attach the label provided by the merchant squarely onto the largest side of the mailpiece, centered when possible. Place the label at least 1 inch from the edge of the parcel, so that it does not fold over to another side. If you are using tape to attach the new label, do not put tape over any barcodes on the label, even if the tape is clear.

c. If you are reusing the original container to return the merchandise, use the label to cover your original delivery address, barcodes, and any other postal information on the container. If it is not possible to cover all that information with the label, remove the old labels, mark them out completely with a permanent marker, or cover them completely with blank labels or paper that cannot be seen through. If that cannot be done, or if the original container is no longer sound, please use a new container to return the merchandise and attach the return label to the new container.

d. Once repackaged and labeled, mail the parcel at a Post Office, deposit it in a collection box, or leave it with your letter carrier.

6.4.4Label Format Elements

PRS—Full Network standard label sizes are 3 inches by 6 inches, 4 inches by 4 inches, or 4 inches by 6 inches. All other label sizes require written approval from the National Customer Support Center (NCSC). The label must accommodate all required elements and must be prepared according to standards in this section and in 708.5.1. All PRS—Full Network label elements must be legible including the required Intelligent Mail package barcode (IMpb). Except where a specific type size is required, elements must be large enough to be legible from a normal reading distance and be separate from other elements on the label (see Exhibit 6.4.4). The following elements, in addition to the standards in 708.5.1, are required:

a. Product Marking.All PRS—Full Network mailpieces will bear “Ground Return Service” product marking as illustrated in Exhibit 6.4.4.

b. Customer's return address.The return address of the customer using thelabel to mail the parcel back to the permit holder must appear in the upper left corner. If it is not preprinted by the permit holder or merchant, space must be provided for the customer to enter the return address.

c. Address forPRS—Full Networklabels.The address must consist of three or four lines in all capital letters, as specified below. The ZIP Code must be printed in at least 12-point type.

1. Line 1: PRS PERMIT HOLDER'S/AGENT'S OR MERCHANT'S NAME.

2. Line 2: ATTENTION: RETURNS.

3. Line 3: The complete address and ZIP Code of the PRS Permit Holder/Agent or Merchant's delivery location, or unique Postal ZIP Code if assigned by the USPS in the service agreement.

Exhibit 6.4.4PRS—Full Network Label

[Insert “Ground Return Service Label” here.]

7.0Bulk Parcel Return Service 7.3.2Availability

A mailer may be authorized to use BPRS when the following conditions apply:

[Revise renumbered item 7.3.2i as follows:]

i. Standard Mail or Parcel Select Lightweight parcels that qualify for a Media Mail or Library Mail price under the applicable standards, and that contain the name of the Package Service price in the mailer's ancillary service endorsement (507.1.5.3d) are not eligible for BPRS.

507Mailer Services