Administrative Services

ASM REVISION

How to Track and Estimate Costs and Make Payments for Semipostal Stamps

Effective December 27, 2001, the Administrative Support Manual (ASM) is revised to replace section 645 with new, simpler semipostal regulations. This change also reflects the enactment of the following three Acts:

• Semipostal Authorization Act, Pub. L. 106-253, 114 Stat. 634 (2000).

• 9/11 Heroes Stamp Act of 2001, Pub. L. 107-67, § 652, 115 Stat. 514 (2001).

• Stamp Out Domestic Violence Act of 2001, Pub. L. 107-67, § 653, 115 Stat. 514 (2001).

Semipostal Authorization Act

The Semipostal Authorization Act authorizes the Postal Service to establish a 10-year program to sell semipostal stamps. The 10-year period begins on the date the Postal Service makes semipostal stamps selected under its discretionary authority available to the public.

Public Law 107-67

Public Law 107-67, the Treasury, and General Government Appropriations Act of 2002, which enacts the 9/11 Heroes Stamp Act of 2001 in section 652 and the Stamp Out Domestic Violence Act of 2001 in section 653, extends the sales period of the Breast Cancer Research Stamp until December 31, 2003, and requires that the Postal Service issue two additional semipostal stamps. The details of the two additional stamps are in the following table:

The following revisions to the ASM simplify the provisions of section 645. The provisions apply to all semipostal stamps issued by the Postal Service. Section 645 delegates internal procedures to delegate responsibility and establishes internal procedures. This section does not confer any substantive rights upon any other person or entity.

We will incorporate these revisions into the printed version of ASM 14 and into an incremental update of the online ASM on the Policies and Procedures PolicyNet page on the intranet at http://blue.usps.gov/cpim; click on Manuals.

Administrative Support Manual (ASM)

6 Support Services

64 Stamp Services

[Revise the heading and replace the text in 645 with the following:]

645 Semipostal Stamps

645.1 Definitions

645.11 Semipostal Stamps

The term Semipostal Stamp means a postage stamp that is issued and sold by the Postal Service at a price that exceeds the postage value of the stamp. The stamp helps provide funding for a particular cause.

645.12 Differential

The term differential means the difference between the sales price of a semipostal stamp (as determined by the Governors of the United States Postal Service) and the First-Class Mail single-piece first-ounce rate in effect at the time of purchase.

645.2 Offsets

The Postal Service determines its reasonable costs to implement statutes that authorize the Postal Service to issue semipostal stamps. To the extent permitted by authorizing statutes, the reasonable costs of the Postal Service are offset against the differential associated with each semipostal stamp. The Postal Service retains any reasonable costs it offsets under section 645. The Postal Service also retains revenue from the sale of semipostal stamps that represents the First-Class Mail single-piece first-ounce rate in effect at the time of purchase.

645.3 Payments From the Sale of a Semipostal

645.31 Breast Cancer Research Stamp

The Postal Service pays the following agencies as follows:

a. National Institutes of Health (NIH). At least twice a year, we pay NIH 70 percent of the difference between the amount of the differential associated with the Breast Cancer Research Stamp, and the amount to recover any reasonable costs to the Postal Service (see section 645 to determine reasonable costs).

b. Department of Defense (DOD). At least twice a year, we pay DOD 30 percent of the difference between the amount of differential associated with the Breast Cancer Research Stamp, and the amount to recover any reasonable costs to the Postal Service (see section 645.52 to determine reasonable costs).

Note: We specify how often we make payments in Memoranda of Understanding with the NIH and DOD.

645.32 Heroes Semipostal Stamp

The Postal Service pays the Federal Emergency Management Agency (FEMA) the differential associated with the Heroes Semipostal Stamp less an amount to recover the reasonable costs of the Postal Service as determined by it under section 645.52. Before transferring to FEMA any amount becoming available from the sale of the semipostal over any period, the Postal Service ensures that it has recovered the full cost incurred by the Postal Service in connection with such semipostal stamp through the end of such period. The Postal Service and FEMA execute a Memorandum of Understanding that specifies the frequency of payment terms.

645.33 Domestic Violence Program Semipostal Stamp

The Postal Service pays the U.S. Department of Health and Human Services (DHHS) the differential associated with the Domestic Violence Program Semipostal Stamp less an amount to recover the reasonable costs of the Postal Service as determined by it under section 645. Before transferring to DHHS any amount becoming available from the sale of the Domestic Violence Program Semipostal Stamp over any period, the Postal Service ensures that it has recovered the full cost incurred by the Postal Service in connection with such semipostal stamp through the end of such period. Frequency of payment shall be specified according to the terms of a Memorandum of Understanding executed with DHHS.

645.4 Cost Reporting and Estimation

645.41 Headquarters Offices

The following offices at Postal Service Headquarters are responsible for tracking or, as appropriate, estimating costs related to semipostal stamps:

* These organizations are part of the Customer Service Operations segment of the new Delivery and Retail organization.

645.42 Requirements

645.421 When to Report Costs

All offices listed in Section 645.41 must report the cost information each accounting period (AP) to the office of Accounting, Finance, Controller. Send the report no later than 4 weeks after the close of the accounting period in which the costs were incurred. The report should be sent via e-mail if possible.

645.422 Separate Reports

The report should identify the semipostal stamp to which the costs incurred apply. Report the costs for each semipostal stamp separately.

645.423 Recordkeeping

Each office must maintain cost records for 1 year after the date that sales end for the semipostal stamp to which the costs incurred apply.

645.424 Local Promotional Events

Unless the office of Stamp Services grants an exception, costs for promotional events of field offices must not exceed $3,000 and must be funded locally. Field promotional expenses not exceeding $3,000 need not be reported pursuant to ASM 645.52(b)(1).

645.5 Policy to Offset Costs for Semipostal Stamps

The Postal Service's policy to offset costs for all semipostal stamps, including the Breast Cancer Research Stamp, is set forth in sections 645.51 through 645.63.

645.51 Responsibility

Overall responsibility for tracking costs associated with semipostal stamps rests with the office of Accounting, Finance, Controller. Individual organizational units incurring costs will provide supporting documentation to the office of Accounting, Finance, Controller.

645.52 Policy

Postal Service policy is to recover from the differential revenue for each semipostal stamp those costs that are determined to be attributable to the semipostal stamp and that would not normally be incurred for commemorative stamps having similar sales; physical characteristics; and marketing, promotional, and public relations activities (hereinafter "comparable stamps").

645.52 Procedure

a. For each semipostal stamp, the office of Stamp Services, in coordination with Accounting, Finance, Controller, shall, based on judgment and available information, identify the comparable commemorative stamp(s) and create a profile of the typical cost characteristics of the comparable stamp(s) (e.g., manufacturing process, gum type), thereby establishing a baseline for cost comparison purposes. The determination of comparable commemorative stamps may change during or after the sales period, if the projections of stamp sales differ from actual experience.

b. Except as specified, all costs associated with semipostal stamps will be tracked by the office of Accounting, Finance, Controller. Costs that will not be tracked include:

(1) Costs that the Postal Service determines to be inconsequentially small, which include those cost items not exceeding $3,000 per invoice.

(2) Costs for which the cost of tracking would be burdensome (e.g., costs for which the cost of tracking exceeds the cost to be tracked).

(3) Costs attributable to mail to which semipostal stamps are affixed (which are attributable to the appropriate class and/or subclass of mail).

(4) Administrative and support costs that the Postal Service would have incurred whether or not the Semipostal Stamp Program had been established.

c. Cost items recoverable from the differential revenue may include, but are not limited to, the following:

(1) Packaging costs in excess of the cost to package comparable stamps.

(2) Printing costs of flyers and special receipts.

(3) Costs of changes to equipment.

(4) Costs of developing and executing marketing and promotional plans in excess of the cost for comparable stamps.

(5) Other costs specific to the semipostal stamp that would not normally have been incurred for comparable stamps.

645.53 Differential Maximization

The Semipostal Stamp Program incorporates the following provisions that are intended to maximize differential revenues available to the selected causes. These include, but are not limited to, the following:

a. Avoiding, to the extent practicable, promotional costs that exceed those of comparable stamps.

b. Establishing restrictions on the number of concurrently issued semipostal stamps.

c. Making financial and retail system changes in conjunction with regularly scheduled revisions.

645.54 Other Costs

Other costs that are attributable to semipostals that would normally be incurred for comparable stamps are recovered through the postage component of the semipostal stamp price. These include, but are not limited to, the following:

a. Stamp design (including market research).

b. Stamp production and printing.

c. Stamp shipping and distribution.

d. Estimated training for field staff, except for special training associated with semipostal stamps.

e. Stamp sales (including employee salaries and benefits).

f. Withdrawal of the stamp issue from sale.

g. Destruction of unsold stamps.

h. Incorporation of semipostal stamp images into advertising for the Postal Service as an entity.

645.6 Sales Periods

645.61 Breast Cancer Research Stamp

The Breast Cancer Research stamp will be sold through December 31, 2003.

645.62 Heroes Semipostal Stamp

The Heroes Semipostal Stamp will be issued as soon as practicable and sold to the public for a period ending on or before December 31, 2004. The office of Stamp Services determines the dates of the sales period.

645.63 Domestic Violence Program Semipostal Stamp

The Domestic Violence Program Semipostal Stamp will issued no later January 1, 2004, and may be sold to the public for a period ending on or before December 31, 2006. The office of Stamp Services determines the dates of the sales period.

- Stamp Services, Government Relations and Public Policy, 12-27-01

NOTICE

Temporary Telephone Number - Inspection Service Personnel Relocated From Brentwood Facility

The temporary telephone number for Inspection Service personnel, who have been relocated from the Main Post Office, Brentwood Facility, in Washington, D.C., is 301-499-7346.

- Field Operations,Postal Inspection Service, 12-27-01

Customer Relations

Domestic Mail

DMM REVISION

New Sort Level for Flats on Pallets

Effective March 31, 2002, Domestic Mail Manual (DMM) E650.6.1, E752.3.0, M011.1.0, M031.4.9, M041.5.0, M045.3.0, M920, M930, M940, and P012.2.4 are revised and labeling list L006 is added to allow a new optional level of pallet sort for a limited number of sectional center facility (SCF) service areas. This option is available for Periodicals nonletters (flats and irregular parcels), Standard Mail flats, and Bound Printed Matter flats prepared on pallets.

In some areas of the country, a single SCF service area is served by multiple mail processing facilities. This is most prevalent in large metropolitan areas such as New York City and Chicago. Current labeling lists direct all of the mail on 3-digit and SCF pallets to a single facility even though, in certain situations, not all of the mail is processed at that facility. New labeling list L006 allows mailers to prepare flats on pallets based on specific groupings of 5-digit ZIP Codes to facilitate the entry of the pallets directly into the facility where that mail is processed. To implement this change, we have added a new optional pallet level called a "5-digit metro" pallet prepared using labeling list L006. These pallets will contain mail for certain groupings of 5-digit ZIP Codes that are all processed within a single facility. In the sortation hierarchy, the 5-digit metro pallet follows the 5-digit scheme and 5-digit sort levels and precedes the 3-digit and SCF sort levels. A 5-digit metro pallet could contain carrier route, 5-digit, and 3-digit packages.

Although the 5-digit metro pallet may appear to resemble the 5-digit scheme pallet in that they both contain mail for multiple 5-digit ZIP Codes going to the same mail processing facility, they are in fact very different sort levels. L001 is designed primarily to direct a pallet containing carrier route packages for multiple 5-digit ZIP Codes that are sorted to carriers in the same delivery unit to that delivery unit. L006 is designed to direct a pallet containing mail for more than one delivery unit to the appropriate plant where the carrier route, 5-digit, and 3-digit packages for the ZIP Codes on the pallet are most efficiently sorted to a flat sorting machine or delivery unit. Mailers must prepare 5-digit scheme pallets for those ZIP Codes listed in labeling list L001; mailers will have the option (but will not be required) to prepare 5-digit metro pallets for ZIP Codes listed in labeling list L006.

The Postal Service and its customers will benefit from this new optional sort because mail will be prepared and deposited more efficiently, going directly to the facility where the packages of mail are processed by the Postal Service and avoiding extra handling and transportation.

A few things to keep in mind:

• The 5-digit metro sort is optional.

• Only mail prepared as packages on pallets is eligible for this new sort level.

• For all flats and irregular parcels on pallets, the 3-digit sort level remains optional and is not affected by the addition of the optional 5-digit metro sort level. Mailers may prepare both optional sort levels or only one.

• For the purposes of rate eligibility, mail on pallets labeled to the facilities listed in L006 are eligible for destination SCF (DSCF) discounts and destination delivery unit (DDU) discounts where permitted by the standards for each class of mail.

• It is recommended that mailers who choose to perform SCF or bulk mail center (BMC) pallet protection (M045.4.0 and 5.0) adjust their presort software so that 5-digit metro pallets are not created at the expense of the SCF or BMC pallets. If, by creating 5-digit metro pallets, a significant quantity of mail falls beyond the SCF or BMC pallet level, then mailers should consider not creating metro pallets. As a reminder, PAVE-certified software is required to perform SCF and BMC pallet protection.

• PAVE-certified presort software is not required to sort mail to 5-digit metro pallets. However, the 5-digit metro pallet sort will be included in the next PAVE testing cycle.

We will incorporate this revision into the printed version of DMM Issue 57 and into the monthly update of the online version available via Postal Explorer at http://pe.usps.gov.

Domestic Mail Manual (DMM)

E Eligibility

E600 Standard Mail

E650 Destination Entry

6.0 DSCF DISCOUNT

6.1 Definition

[Revise 6.1 to show that the DSCF discount for Standard Mail includes mail entered at the facilities listed in L006:]

For this standard, destination sectional center facility (DSCF) refers to the facilities listed in L002, Column C, and L006, Column C.

E700 Package Services

E750 Destination Entry

E752 Bound Printed Matter

3.0 DESTINATION SECTIONAL CENTER FACILITY (DSCF) RATES

3.1 General Eligibility

[Revise 3.1 to show that the DSCF discount for Bound Printed Matter includes mail entered at the facilities listed in L006:]

Pieces in a mailing meeting the standards in 1.0, 3.0, and 5.0 through 7.0 are eligible for the DSCF rate when they meet all of the following conditions:

a. Are eligible for and prepared to qualify for Presorted or Carrier Route rates, subject to the corresponding standards for those rates.

b. Are deposited at a facility listed in L005 or L006, except that machinable parcels prepared on pallets for the 5-digit ZIP Codes listed in Exhibit E751.6.0 must be deposited at the corresponding BMC facility shown in that exhibit (not at the SCF) unless an exception is requested and granted. An exception to Exhibit E751.6.0 must be requested at least 15 days in advance of the mailing in writing from the area manager, Operations Support, who has jurisdiction over the BMC and SCF. Exceptions, if granted, are for a limited time.

c. Are addressed for delivery to one of the 3-digit ZIP Codes served by the facility where the mail is deposited.

d. Are placed in a sack or pallet that is labeled to the facility where deposited or labeled to a postal facility within that facility's service area.

3.2 Presorted Flats

Presorted flats in sacks for the 5-digit, 3-digit, and SCF sort levels or on pallets at the 5-digit scheme, 5-digit, 5-digit metro, 3-digit, SCF, and ASF sort levels may claim DSCF rates. Mail must be deposited at the appropriate facility under 3.1.

3.5 Carrier Route Flats

Carrier route flats in sacks at all sort levels or on pallets at the 5-digit scheme carrier routes, 5-digit carrier routes, 5-digit metro, 3-digit, SCF, and ASF sort levels may claim DSCF rates. Mail must be entered at the appropriate facility under 3.1.

L Labeling Lists

L000 General Use

[Add new Labeling List L006:]

L006 5-Digit Metro Scheme - Periodicals Flats and Irregular Parcels, Standard Mail Flats, and Bound Printed Matter Flats

L006 is an optional 5-digit metro-area scheme pallet preparation for Periodicals flats and irregular parcels, Standard Mail flats, and Bound Printed Matter flats. The scheme describes situations where processing responsibility for 5-digit ZIP Code destinations within a 3-digit ZIP Code prefix have been split between two or more facilities.

The first column, 3-digit ZIP Codes, lists the 3-digit ZIP Codes that have zones (5-digit ZIP Codes) assigned to the scheme shown in Column A. Residual 3-digit packages may be placed on 5-digit metro pallets as shown in Column B. Label containers as shown in Column C.

M Mail Preparation and Sortation

M000 General Preparation Standards

M010 Mailpieces

M011 Basic Standards

1.0 TERMS AND CONDITIONS

1.2 Presort Levels

[Renumber items l through u as m through v, respectively, and add new item l for the 5-digit metro pallet:]

l. 5-digit metro pallets for Periodicals flats and irregular parcels and Standard Mail and Bound Printed Matter flats: the 5-digit ZIP Codes on pieces in carrier route, automation, and Presorted rate packages are all destined for the same mail processing facility listed in L006.

1.3 Preparation Instructions

[Renumber items q through ac as r through ad, respectively, and add new item q for the 5-digit metro pallet:]

q. A 5-digit metro sort for Periodicals nonletters (flats and irregular parcels), Standard Mail flats, and Bound Printed Matter flats prepared as packages on pallets results in 5-digit metro pallets containing carrier route, 5-digit, and 3-digit packages (automation and Presorted) for the 5-digit ZIP Codes listed in L006. The ZIP Codes in L006 are treated as a single presort destination, with no further separation by 5-digit ZIP Code required. The 5-digit metro sort is optional and need not be done for all possible destinations in L006.

M030 Containers

M031 Labels

4.0 PALLET LABELS

4.9 Automation/Nonautomation Status

[The "Barcoded/Nonbarcoded" indicator is required on 5-digit metro pallet labels. However, for clarification, we are revising 4.9 to delete references to specific sort levels.]

If a pallet contains automation rate mail, the contents line must show "BARCODED" or "BC." If a pallet of Periodicals or Standard Mail letters, flats, and irregular parcels contains presorted rate and/or carrier route rate mail, the contents line must show "NONBARCODED" or "NBC." If a pallet contains a combination of automation, Presorted, and carrier route mail, the contents line must show "BARCODED/NONBARCODED" or "BC/NBC." See M920, M930, and M940 for required Line 2 information for merged 5-digit scheme and merged 5-digit pallets.

M040 Pallets

M041 General Standards

5.0 PREPARATION

5.2 Required Preparation

[Revise 5.2a to add the 5-digit metro pallet as a sort level. Item b is unchanged.]

These standards apply to:

a. Periodicals, Standard Mail, and Package Services (except for Parcel Post mailed at BMC Presort, OBMC Presort, DSCF, and DDU rates). A pallet must be prepared to a required sortation level when there are 500 pounds of mail in packages or sacks; 500 pounds of parcels; or six layers of letter trays. When mailers choose to use package reallocation to protect the SCF pallet (M045.4.0), not all mail for a 5-digit scheme carrier routes, merged 5-digit scheme, 5-digit scheme, 5-digit carrier routes, merged 5-digit, 5-digit, 5-digit metro, or 3-digit pallet is required to be on that corresponding pallet level. When mailers choose to use package reallocation to protect the BMC pallet (M045.5.0), not all mail for an ASF pallet must be on an ASF pallet. Mixed ADC and mixed BMC pallets of sacks, trays, or machinable parcels must be labeled to the BMC or ADC serving the post office where mailings are deposited into the mailstream. The processing and distribution manager of that facility may issue a written authorization to the mailer to label mixed BMC or mixed ADC pallets to the post office or processing and distribution center serving the post office where mailings are deposited. These pallets contain all mail remaining after required and optional pallets are prepared to finer sortation levels under M045, as appropriate.

5.3 Minimum Load

These standards apply to:

[Revise 5.3a to add the metro pallet as a sort level. Item b is unchanged.]

a. Periodicals, Standard Mail, and Package Services (except for Parcel Post mailed at BMC Presort, OBMC Presort, DSCF, and DDU rates). In a single mailing, the minimum load per pallet is 250 pounds of mail in packages or sacks; 250 pounds of parcels; or three layers of letter trays. In a mailing or mailing job presented for acceptance at a single postal facility, one overflow pallet may be prepared containing less than 250 pounds or three layers of letter trays if the mail is for the service area of the entry facility and the pallet is properly labeled under M045, based on its contents. Exceptions: There is no minimum load per pallet for pallets entered at a destination delivery unit by the mailer or mailer's agent if the mail on those pallets is for that unit's service area. For mail entered at an SCF, the manager of that facility must issue a written authorization allowing preparation of any 5-digit, 5-digit metro, 3-digit, or SCF pallets containing less than the minimum required volume if the mail on those pallets is for that SCF's service area.

M045 Palletized Mailings

3.0 PALLET PRESORT AND LABELING

3.1 Periodicals Packages, Sacks, or Trays on Pallets

Mailers must prepare pallets in the sequence listed below. For mailings of sacks or trays on pallets, mailers must begin preparing pallets under 3.1c. Pallets must be labeled according to the Line 1 and Line 2 information listed below and under M031. At the mailer's option, packages of Periodicals nonletters (flats and irregular parcels) may be palletized in accordance with one of the advanced presort options under M920, M930, or M940.

[Renumber items e through h (3-digit through mixed ADC sort levels) as items f through i, respectively. Add new item e for the 5-digit metro pallet.]

e. 5-Digit Metro. Optional for packages of flats and irregulars. Not permitted for sacks or trays. May contain carrier route, automation, and/or Presorted rate packages for the 5-digit ZIP Codes listed in L006, Column A, and for the 3-digit ZIP Code areas listed in L006, Column B.

(1) Line 1: use L006, Column C.

(2) Line 2: "PER" or "NEWS"; followed by "FLTS" or "IRREG"; followed by "METRO" or "MET"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate and/or carrier route mail.

3.2 Standard Mail Packages, Sacks, Irregular Parcels, or Trays on Pallets

Mailers must prepare pallets in the sequence listed below. For mailings of sacks or trays on pallets, mailers must begin preparing pallets under 3.1c. Pallets must be labeled according to the Line 1 and Line 2 information listed below and under M031. At the mailer's option, packages of Standard Mail flats may be palletized in accordance with one of the advanced presort options under M920, M930, or M940.

[Renumber items e through i (3-digit through mixed BMC sort levels) as items f through j, respectively. Add new item e for the metro pallet.]

e. 5-Digit Metro. Optional for packages of flats. Not permitted for sacks or trays. May contain carrier route, automation, and/or Presorted rate packages for the 5-digit ZIP Codes listed in L006, Column A, and for the 3-digit ZIP Code areas listed in L006, Column B.

(1) Line 1: use L006, Column C.

(2) Line 2: "STD FLTS" followed by "METRO" or "MET"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate and/or carrier route mail.

3.3 Bound Printed Matter Flats - Packages and Sacks on Pallets

Mailers must prepare pallets in the sequence listed below. For mailings of sacks on pallets, mailers must begin preparing pallets under 3.1c. Pallets must be labeled according to the Line 1 and Line 2 information listed below and under M031.

[Renumber items e through i (3-digit through mixed BMC sort levels) as items f through j, respectively. Add new item e for the metro pallet.]

e. 5-Digit Metro. Optional. Not permitted for sacks. May contain Carrier Route and/or Presorted rate packages for the 5-digit ZIP Codes listed in L006, Column A, and for the 3-digit ZIP Code areas listed in L006, Column B.

(1) Line 1: use L006, Column C.

(2) Line 2: "PSVC FLTS " followed by "METRO" or "MET" and if applicable, as shown in L006, Column C.

4.0 PACKAGE REALLOCATION TO PROTECT SCF PALLET FOR PERIODICALS FLATS AND IRREGULAR PARCELS AND STANDARD MAIL FLATS ON PALLETS

4.1 Basic Standards

[Revise 4.1 to show that metro pallets are considered to be 3-digit pallets for the purpose of package reallocation to protect the SCF pallet.]

Package reallocation to protect the SCF pallet is an optional preparation method (if performed, package reallocation must be done for the entire mailing job); only PAVE-certified presort software may be used to create pallets under the standards in 4.2 through 4.4. Presort software determines if mail for an SCF service area would fall beyond the SCF level if all finer level pallets are prepared. Reallocation is performed only when there is mail for the SCF service area that would fall beyond the SCF pallet level (e.g., to an ADC or BMC pallet). The amount of mail required to bring the mail that would fall beyond the SCF level back to an SCF level is the minimum volume that will be reallocated. For the purposes of reallocation, 5-digit metro pallets are considered to be 3-digit pallets (because they contain subsets of mail for a 3-digit ZIP Code area).

M900 Advanced Preparation Options for Flats

M920 Merged Containerization of Packages Using the City State Product

1.0 PERIODICALS

1.5 Pallet Preparation and Labeling

Mailers must prepare pallets of packages in the manner and sequence listed below and under M041. When sortation under this option is performed, mailers must prepare all merged 5-digit scheme, 5-digit scheme carrier routes, 5-digit scheme, and merged 5-digit pallets that are possible in the mailing based on the volume of mail to the destination using L001 and/or the City State Product. Mailers must label pallets according to the Line 1 and Line 2 information listed below and under M031. If, due to the physical size of the mailpieces, the automation rate pieces are considered flat-size under C820 and the carrier route sorted pieces and Presorted rate pieces are considered irregular parcels under C050, "FLTS" must be shown as the processing category on the pallet label. If a mailing contains no automation rate pieces and the carrier route mailing and the Presorted rate mailing are irregular parcels, use "IRREG" for the processing category on the contents line of the label.

[Renumber items g through i (3-digit through ADC sort levels) as items h through j, respectively. Add new item g for the 5-digit metro pallet.]

g. 5-Digit Metro. Optional. May contain carrier route, automation, and Presorted rate packages for the 5-digit ZIP Codes listed in L006, Column A, and for the 3-digit ZIP Code areas listed in L006, Column B.

(1) Line 1: use L006, Column C.

(2) Line 2: "PER" or "NEWS"; followed by "FLTS" or "IRREG"; followed by "METRO" or "MET"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate and/or carrier route mail.

2.0 STANDARD MAIL

2.5 Pallet Preparation and Labeling

Mailers must prepare pallets in the manner and sequence listed below and under M041. Mailers must prepare all merged 5-digit scheme, 5-digit scheme carrier routes, 5-digit scheme, and merged 5-digit pallets that are possible in the mailing based on the volume of mail to the destination using L001 and/or the City State Product. Mailers must label pallets according to the Line 1 and Line 2 information listed below and under M031.

[Renumber items g through j (3-digit through BMC sort levels) as items h through k, respectively. Add new item g for the 5-digit metro pallet.]

g. 5-Digit Metro. Optional. May contain carrier route, automation, and Presorted rate packages for the 5-digit ZIP Codes listed in L006, Column A, and for the 3-digit ZIP Code areas listed in L006, Column B.

(1) Line 1: use L006, Column C.

(2) Line 2: "STD FLTS" followed by "METRO" or "MET"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate and/or carrier route mail.

M930 Merged Palletization of Packages Using a 5% Threshold

1.0 PERIODICALS

1.5 Pallet Preparation and Labeling

Mailers must prepare pallets of packages in the manner and sequence listed below and under M041. Mailers must prepare all merged 5-digit scheme, 5-digit scheme carrier routes, 5-digit scheme, and merged 5-digit pallets that are possible in the mailing based on the volume of mail to the destination using L001 and the 5% threshold, as applicable. Mailers must label pallets according to the Line 1 and Line 2 information listed below and under M031. If, due to the physical size of the mailpieces, the automation rate pieces are considered flat-size under C820 and the carrier route sorted pieces and Presorted rate pieces are considered irregular parcels under C050, "FLTS" must be shown as the processing category on the pallet label. If a mailing contains no automation rate pieces and the carrier route mailing and the Presorted rate mailing are irregular parcels, use "IRREG" for the processing category on the contents line of the pallet label.

[Renumber items g through i (3-digit through ADC sort levels) as items h through j, respectively. Add new item g for the 5-digit metro pallet.]

g. 5-Digit Metro. Optional. May contain carrier route, automation, and Presorted rate packages for the 5-digit ZIP Codes listed in L006, Column A, and for the 3-digit ZIP Code areas listed in L006, Column B.

(1) Line 1: use L006, Column C.

(2) Line 2: "PER" or "NEWS"; followed by "FLTS" or "IRREG"; followed by "METRO" or "MET"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate and/or carrier route mail.

2.0 STANDARD MAIL

2.4 Pallet Preparation and Labeling

Mailers must prepare pallets of packages in the manner and sequence listed below and under M041. Mailers must prepare all merged 5-digit scheme, 5-digit scheme carrier routes, 5-digit scheme, and merged 5-digit pallets that are possible in the mailing based on the volume of mail to the destination using L001 and the 5% threshold. Mailers must label pallets according to the Line 1 and Line 2 information listed below and under M031.

[Renumber items g through j (3-digit through BMC sort levels) as items h through k, respectively. Add new item g for the 5-digit metro pallet.]

g. 5-Digit Metro. Optional. May contain carrier route, automation, and Presorted rate packages for the 5-digit ZIP Codes listed in L006, Column A, and for the 3-digit ZIP Code areas listed in L006, Column B.

(1) Line 1: use L006, Column C.

(2) Line 2: "STD FLTS" followed by "METRO" or "MET"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate and/or carrier route mail.

M940 Merged Palletization of Packages Using the City State Product and a 5% Threshold

1.0 PERIODICALS

1.5 Pallet Preparation and Labeling

Mailers must prepare pallets of packages in the manner and sequence listed below and under M041. Mailers must prepare all merged 5-digit scheme, 5-digit scheme carrier routes, 5-digit scheme, and merged 5-digit pallets that are possible in the mailing based on the volume of mail to the destination (M041) using L001, the City State Product, and the 5% threshold (1.4), as applicable. Mailers must label pallets according to the Line 1 and Line 2 information listed below and under M031. If, due to the physical size of the mailpieces, the automation rate pieces are considered flat- size under C820 and the carrier route sorted pieces and Presorted rate pieces are considered irregular parcels under C050, "FLTS" must be shown as the processing category on the pallet label. If a mailing contains no automation rate pieces and the carrier route mailing and the Presorted rate mailing are irregular parcels, use "IRREG" for the processing category on the contents line of the pallet label.

[Renumber items g through i (3-digit through ADC sort levels) as items h through j, respectively. Add new item g for the 5-digit metro pallet.]

g. 5-Digit Metro. Optional. May contain carrier route, automation, and Presorted rate packages for the 5-digit ZIP Codes listed in L006, Column A, and for the 3-digit ZIP Code areas listed in L006, Column B.

(1) Line 1: use L006, Column C.

(2) Line 2: "PER" or "NEWS"; followed by "FLTS" or "IRREG"; followed by "METRO" or "MET"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate and/or carrier route mail.

2.0 STANDARD MAIL

2.4 Pallet Preparation and Labeling

Mailers must prepare pallets of packages in the manner and sequence listed below and under M041. Mailers must prepare all merged 5-digit scheme, 5-digit scheme carrier routes, 5-digit scheme, and merged 5-digit pallets that are possible in the mailing based on the volume of mail to the destination using L001, the City State Product, and the 5% threshold. Mailers must label pallets according to the Line 1 and Line 2 information listed below and under M031.

[Renumber items g through j (3-digit through BMC sort levels) as items h through k, respectively. Add new item g for the 5-digit metro pallet.]

g. 5-Digit Metro. Optional. May contain carrier route, automation, and Presorted rate packages for the 5-digit ZIP Codes listed in L006, Column A, and for the 3-digit ZIP Code areas listed in L006, Column B.

(1) Line 1: use L006, Column C.

(2) Line 2: "STD FLTS" followed by "METRO" or "MET"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate and/or carrier route mail.

P Postage and Payment Methods

P000 Basic Information

P010 General Standards

P012 Documentation

2.0 STANDARDIZED DOCUMENTATION - FIRST-CLASS MAIL, PERIODICALS, AND STANDARD MAIL

2.4 Sortation Level

[Revise 2.4 by adding the new "5-digit metro" pallet level and its abbreviation "METR" between "5-Digit" and "3-Digit Carrier Routes," as follows:]

The actual sortation level (or corresponding abbreviation) is used for the package, tray, sack, or pallet levels required by 2.2 and shown below:

- Mail Preparation and Standards,Pricing and Classification, 12-27-01

DMM REVISION

Express Mail Custom Designed Service

Effective December 27, 2001, the Domestic Mail Manual (DMM) is revised to reflect the elimination of the Signature Waiver option with Express Mail Custom Designed Service® and to update the language on the availability of COD service with Express Mail® service. Affected sections are DMM M500.2.2, S500.1.4, S500.1.5, and S921.1.9.

We will incorporate these revisions into the printed version of DMM 57 and into the monthly update of the online DMM, which is available via Postal Explorer at http://pe.usps.gov.

Domestic Mail Manual (DMM)

M Mail Preparation and Sortation

M500 Express Mail

2.0 EXPRESS MAIL CUSTOM DESIGNED SERVICE

2.2 Waiver of Signature

[Revise 2.2 to read as follows:]

Waiver of signature is not available for Express Mail Custom Designed Service.

S Special Services

S500 Special Services for Express Mail

1.0 AVAILABLE SERVICES

1.4 COD

[Revise 1.4 to read as follows:]

Collect on delivery (COD) service under S921 may be purchased with Express Mail next day and second day service only.

1.5 Insurance and Indemnity

Express Mail is insured against loss, damage, or rifling, subject to these standards:

[Revise the last sentence in 1.5b to read as follows:]

b. *** A waiver of signature may not be used for Express Mail Custom Designed Service, Express Mail COD, or Express Mail with additional insurance.

S900 Special Postal Services

S920 Convenience

S921 Collect on Delivery (COD) Mail

1.0 BASIC INFORMATION

1.9 Express Mail COD

[Revise the first sentence of 1.9 to read as follows:]

Any article sent COD may also be sent by Express Mail next day and second day service.

- Product Information Requirements,Product Development, 12-27-01

DMM REVISION

Manifest Mailing System

Effective January 10, 2002, Domestic Mail Manual (DMM) P910, Manifest Mailing System (MMS), is updated to reflect minor revisions to procedures for manifest mailings. The approval process for agreements has been revised to allow some types of MMS to be approved by district managers instead of Postal Service Headquarters. Also, manifests are now required to have a separate postage payment summary page if postage is reported on more than one postage statement even when the postage statement is a computer-generated facsimile. Minor editorial changes were made to some text.

We will incorporate these revisions into the printed version of DMM Issue 57 and into the online version available through Postal Explorer at http://pe.usps.gov.

Domestic Mail Manual (DMM)

P Postage and Payment Methods

P900 Special Postage Payment Systems

P910 Manifest Mailing System

[Revise 1.0 as follows:]

1.0 DESCRIPTION

The Manifest Mailing System (MMS) is a method to verify postage payment of permit imprint mailings instead of weight verification. The MMS is an automated system that allows a mailer to document postage and fees for all pieces in First-Class Mail, Standard Mail, Package Service mail, and international mail permit imprint mailings. Each piece is assigned a unique identification number that is listed on the manifest along with pertinent information about the mailpiece. The Postal Service randomly selects pieces from the mailing and compares them to the manifest to determine if postage was accurately reported. The standards below describe how to mail using an MMS.

2.0 BASIC STANDARDS

2.1 Service Agreement

[Revise 2.1 as follows:]

A service agreement must be signed by the mailer and Postal Service representative(s). The agreement contains provisions regarding mailer and Postal Service responsibilities, including document retention, quality control, and the duration of the agreement.

2.2 Mailer System

[Revise 2.2 as follows:]

The mailer must have an automated system that produces mail consistent with postal standards and calculates postage accurately. For presorted mail, the system also must determine the qualifying presort level and the correct rate of postage for each piece, and perform the presort routines. The mailer must assign a unique identification number to each piece. Letter- or flat-size mail produced using batch processing must bear the keyline information in 3.0. The system must produce a manifest for each mailing that allows Postal Service verification of the postage and levels of presort, as applicable.

The manifest must account for every piece in the mailing, as follows:

a. For presorted letter- or flat-size mail produced using batch processing, the manifest must list destination ZIP Codes, presort categories, batch number ranges, postage amounts, and cumulative postage amounts.

b. For mail produced using itemized processing, the manifest must list the postage for each piece and those factors, such as the destination postal zone and piece weight, used to calculate the correct amount of postage. Each page of the manifest must show cumulative postage totals.

c. When special services (e.g., COD or insurance) are used, the manifest must include the applicable fees for each piece.

d. A summary listing the required information on the postage statement must be included as the last page of the manifest unless the MMS produces a computer-generated postage statement facsimile and postage is reported on only one postage statement.

e. A separate summary and register of mailings is required for all plant-verified drop shipment (PVDS) mailings.

[Add new 2.3 as follows:]

2.3 Manifest Format

The two basic manifest formats are:

a. Itemized Processing - Each piece of mail is individually listed by unique identification number, weight, and other pertinent information. Publication 401, Guide to the Manifest Mailing System, contains specific formats for manifests using itemized processing.

b. Batch Processing - The mailing is divided into groups of mailpieces with consecutive identification numbers. Only the identification numbers of the first and last pieces of each group are listed, along with the piece count and the total postage charges for the entire batch. This method is limited to piece-rate letter- and flat-size mailings. Publication 401 contains specific formats for manifests using batch processing.

[Revise existing 2.3, and renumber 2.3 as 2.4 as follows:]

2.4 Mailer Quality Control

The mailer must implement a quality control program that ensures proper mail preparation and provides accurate documentation. The service agreement must detail the Postal Service-approved quality control procedures.

[Revise existing 2.4, and renumber 2.4 as 2.5 as follows:]

2.5 Permit Imprint

Mailings deposited under the MMS program must meet the standards for permit imprint mail in P040, except that presorted letter- or flat-size mail produced using batch processing must include the qualified rate abbreviation in the keyline.

[Revise existing 2.5, and renumber 2.5 as 2.6 as follows:]

2.6 Marking

MMS mailings must meet the marking standards for the rate claimed. Markings on presorted letter- or flat-size mail produced using batch processing are placed in the keyline as described in 3.3. Markings on itemized mailpieces may be:

a. Incorporated as part of the permit imprint.

b. Printed, computer-printed, or rubber-stamped above the address and immediately below or to the left of the permit imprint.

c. Produced as otherwise specified in the MMS authorization.

d. Provided in an endorsement line in the address area, directly above the top line of the address, if no additional information except carrier route information appears on the endorsement line.

[Delete existing 2.6.]

[Revise heading and text of 2.8 as follows:]

2.8 Manifest Adjustments

When mailpieces are mutilated, spoiled, or destroyed during normal operations and cannot be presented as part of the mailing, a method of adjusting the manifest and postage statement that has been approved by the Postal Service must be used. Whether the method in 2.8a or 2.8b is used, the total number of pieces must be deducted at the end of the manifest and the postage statement adjusted. Use one of the following methods, as applicable.

a. For manifests using itemized processing, line out the identification number, weight, and postage information (if applicable, also line out the piece on Form 3877) or write the unique identification number, piece weight, and postage (and, if applicable, the fee amount) on a separate listing. Deduct the total number of pieces, piece weights, and postage and fees from the totals shown on the manifest, summary, and postage statement.

b. For manifests using batch processing, write the adjustments directly on the manifest listing showing the consecutive serial number, weight increment, rate category, and postage of each item next to the batch that includes the serial number. Alternatively, a separate list may be prepared as an attachment to the manifest showing, for each spoiled piece, the consecutive serial number, weight increment, rate category, and postage. The total number of pieces, piece weight, and postage must be deducted from the batch, manifest summary, and postage statement.

3.0 KEYLINE

[Revise heading and text of 3.1 as follows:]

3.1 Batch Mailings

The keyline printed on each piece of presorted letter- or flat-size First-Class Mail or Standard Mail produced using batch processing must contain, in order, the consecutive unique piece number, the weight increment (First-Class Mail only), the rate category for which the piece qualifies, and the postage paid by weight and rate category (see Exhibit 3.1).

[Revise heading and text of 3.4 as follows:]

3.4 Keyline Location - Batch Mailings

The keyline must be readily identifiable and placed anywhere on the address side that does not conflict with other standards (see Exhibit 3.1 for examples). On letter-size mail, the keyline must not interfere with the OCR read area or barcode clear zone (C830.) If printed on an insert, the keyline must conform to C840.2.0.

[Revise heading and text of 3.5 as follows:]

3.5 Unique Identification Number Location - Itemized Mailings

The unique identification number must be printed on the address side of each itemized piece. It may be a product number or any other number that is not duplicated within the mailing. The numbers must be printed in overall ascending order, or in ascending order within each zone or 5-digit, 3-digit, or BMC ZIP Code area on the manifest list.

4.0 AUTHORIZATION

4.1 Application

[Revise 4.1 as follows:]

The mailer must submit an MMS application and supporting documentation as specified on the application to the postmaster of each post office where mailings are to be deposited. Publication 401, Guide to the Manifest Mailing System, available through local post offices or on the Internet at www.usps.com, contains an application to mail using an MMS.

[Revise heading and text of 4.2 as follows:]

4.2 Approval Review

After the mailer completes the development and installation of the MMS, the Postal Service will review the system and give temporary approval if the system is functioning as required. A final approval review will be conducted within 90 days of the temporary approval, and final approval will be given if the system is functioning as required.

[Revise heading and text of 4.3 as follows (items b, c, d, and e are unchanged):]

4.3 General Requirements for Authorization

General requirements for authorization are as follows:

a. Verification samples are deemed representative of the entire mailing, and postage adjustment calculations are applied to the total mailing. The mailer must pay additional postage, for any underpayments identified during Postal Service verification. A mailer may elect to overpay postage for pieces that are borderline weight or rate increments to avoid postage underpayment adjustments.

[Revise heading and text of 4.4 as follows:]

4.4 Approval Authority

The final approval authority for manifest mailing approval is as follows:

a. The district Customer Service and Sales manager approves systems that produce separate or mixed mailings of single-piece First-Class Mail, Standard

Mail, Package Services, or international mail, including mailings with special services and predetermined weights.

b. The Business Mailer Support manager, Headquarters, approves systems that produce presorted mailings, including First-Class Mail, Standard Mail, Package Services mail, and plant-verified drop- shipment mailings.

[Revise 4.5 as follows:]

4.5 Denial

If an MMS application is denied final approval, then the mailer may appeal the decision as follows:

a. For MMS authorizations denied final approval by the district Customer Service and Sales manager, the mailer may, within 15 days from the receipt of the notice, file a written appeal, including additional evidence showing why the MMS should be authorized. The appeal is sent to the Business Mailer Support manager at Headquarters, who issues the final agency decision.

b. For MMS authorizations denied final approval by the Business Mailer Support manager, the mailer may, within 15 days from the receipt of the notice, file a written appeal, including additional evidence showing why the MMS should be authorized. The appeal is sent to the Business Mail Acceptance manager, Headquarters, who issues the final agency decision (see G043 for address).

[Revise existing 4.6 as follows:]

4.6 Renewal

An MMS authorization may be renewed before its expiration date after a review. The district Customer Service and Sales manager will review systems originally given final approval by that office. The Business Mailer Support manager reviews systems originally given final approval by that office. If the system remains qualified, the following applies:

a. When the review determines that the system remains qualified, without any modifications, the existing service agreement is extended for 2 years. The approval to extend the existing agreement is sent in writing from the authorized Postal Service manager.

b. When the review determines that the system was modified but continues to remain qualified, a new service agreement that details the changes to the system must be prepared. The revised service agreement must be signed by the authorized Postal Service manager and by the mailer.

c. When the review determines that modifications are needed before renewal, the mailer is informed in writing of the necessary modifications. If the mailer chooses to make the modifications, the system is reviewed again under 4.6b.

[Delete existing 4.7 though 4.9.]

[Add new 5.0, 5.1, 5.2, 5.3, and 5.4 as follows:]

5.0 REVOCATION

5.1 Revocation Authority

The revocation authority for MMS is as follows:

a. The district Customer Service and Sales manager may revoke a mailer's MMS authorization that was originally given final approval by that office.

b. The Business Mailer Support manager may revoke an MMS authorization original given approval by that office or by the district Customer Service and Sales manager.

5.2 Reasons for Revocation

An MMS authorization may be revoked if:

a. The mailer provides incorrect data on the manifest list and appears unable or unwilling to correct the problems.

b. The mailer is not properly completing the required quality control procedures.

c. The mailings no longer meet MMS criteria established by this standard and in the MMS service agreement.

d. The mailer does not present mailings under MMS for more than 6 months (except as noted in the service agreement).

e. The mailer continues to present mailings that are improperly prepared, and proper postage is not being paid.

5.3 Corrective Action

After a notice of revocation is issued, the mailer and the Postal Service determine corrective action, including an implementation schedule. At the conclusion, the Postal Service reexamines the mailer's system. Failure to correct identified problems is sufficient grounds to revoke the mailer's MMS authorization.

5.4 Appeal of Revocation

After initial notice of revocation is received, the mailer may appeal. The mailer can continue to mail under the MMS during the appeal process. Appeals are handled as follows:

a. For MMS authorizations given final approval by the district Customer Service and Sales manager, the mailer has 15 days from date of receipt of the notice to file a written appeal with the Business Mailer Support manager at Headquarters. The appeal must include showing why the MMS authorization should not be revoked. The Business Mailer Support manager issues the final agency decision. The final revocation decision takes effect 15 days after receipt by the mailer.

b. For MMS authorizations given final approval by the Business Mailer Support manager, the mailer has 15 days from the date of receipt of the notice to file a written appeal with the Business Mail Acceptance manager, Headquarters. The appeal must include evidence showing why the MMS authorization should not be revoked. The Business Mail Acceptance manager issues the final agency decision. The final revocation decision takes effect 15 days after receipt by the mailer.

- Marketing Technology and Channel Management, Business Mail Acceptance, 12-27-01

POM REVISION

Retail Management

Effective December 27, 2001, Postal Operations Manual (POM) 137.454 is revised with updated Delivery ConfirmationTM service information, 137.455 is added with Signature ConfirmationTM service information, and 146.3 is revised with updated language on refund of retail service fees.

We will incorporate these revisions into the printed version of POM Issue 9 and into the online version available via the corporate intranet at http://blue.usps.gov (click on Information, then Policies and Procedures, then Manuals, and then the link for the POM).

Postal Operations Manual (POM)

1 Retail Management

13 Retail Service at Counters

137 Mail Acceptance and Handling

137.4 Domestic Mail Acceptance

137.45 Special Services Mail

137.454 Delivery Confirmation

[Revise 137.454 to read as follows:]

Delivery Confirmation provides the customer with information about the date and time an article was delivered or, if delivery was attempted but not successful, the date and time of the delivery attempt. Delivery information can be obtained from an electronic file, via the Postal Internet at http://www.usps.com/shipping/epstrac.htm, or by calling the toll-free number noted in 817.24. No acceptance record is kept at the office of mailing. See 817 and DMM S918 for detailed information.

[Add new 137.455 to read as follows:]

137.455 Signature Confirmation

Signature Confirmation provides the customer with information about the date and time an article was delivered or, if delivery was attempted but not successful, the date and time of the delivery attempt. The delivery record, including the recipient's signature, is available via fax or mail, upon request. Delivery information can be obtained from an electronic file, via the Postal Internet at http://www.usps.com/shipping/epstrac.htm, or by calling the toll-free number noted in 818.24. No acceptance record is kept at the office of mailing. See 818 and DMM S919 for detailed information.

14 Other Retail Services Management

146 Exchanges and Refunds for Payment of Excess Postage

146.3 Refund Application for Retail Services

Application for refund of fees collected for retail services must be initiated by the mailer on PS Form 3533. Applications are processed as follows:

[Revise 146.3a to read as follows:]

a. The application and any supporting papers are reviewed by an authorized Postal Service employee. If the mailer is due a refund for services not rendered (as stated in DMM P014.2.0), the Postal Service employee completes and witnesses the approval part of PS Form 3533. PS Form 3533 is then returned to the mailer for submission to the retail services section for payment.

- Product Information Requirements,Product Development, 12-27-01