DMM Revision: USPS Returns Service

Effective March 12, 2020, the Postal Service™ is revising Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM^®), section 505.3.0 and various other sections, to remove references to the traditional Merchandise Return Service (MRS) portion of merchandise return service and to enhance USPS Returns^® service.

The Postal Service will remove references to “Merchandise Return Service”, both in section 505.3.0 and in the other sections that refer to Merchandise Return Service. When appropriate, these references are being replaced with references to USPS Returns service.

The Postal Service will also move forward with substantive changes to the returns options described in this article and will consolidate the new USPS Returns automated methodology material and the existing returns sections into one section. In addition, the Postal Service will update Quick Service Guides 220, 503, and 800, to reflect these DMM revisions.

The USPS Returns service’s new methodology was deployed January 27, 2019, allowing existing customers to migrate to the automated returns process and new customers to establish automated returns service. Current USPS Returns service and MRS customers must migrate to the new automated methodology by August 28, 2020.

Under the Package Platform initiative, the Postal Service leveraged devices that were installed as part of the Automated Package Verification system to enhance the capability of equipment used for processing package-size mailpieces. The upgraded equipment captures near real-time data on package dimensions, weight, mail class or product, and other attributes, and then transmits the data to Postal Service information systems.

The Postal Service will use this new technology to streamline its processes for the identification and postage assessment of each return package and enable account holders to pay the postage for their returns electronically. Mailers will receive detailed reports to monitor package level pricing as their returns are processed and delivered through the Postal Service network. This improved functionality will significantly reduce the need to manually weigh and invoice returns or to estimate postage via sampling under the Postage Due Weight Averaging Program for MRS packages and will eliminate the scan-based payment process currently used with USPS Returns services.

The USPS Returns service automated methodology will use the same commercial prices as those currently applied to USPS Returns services and MRS: Priority Mail^® Commercial Base and Commercial Plus (as applicable to the qualifying USPS Returns account holders), First-Class Package Service^® — Commercial, and Parcel Select Ground™, and will apply those prices to each individual return package. Negotiated Service Agreement (NSA) prices will be available for eligible customers using the USPS Returns service automated process.

USPS Returns service account holders will pay postage and fees through an Enterprise Payment System (EPS) account. EPS is a relatively new payment system designed to provide a single point for all payment-related activities. Returns customers of any type will be required to set up an EPS account for electronic funds transfer for payment of USPS Returns service postage. USPS Returns service account customers can view payment information in a consolidated format in their EPS account accessed through the Business Customer Gateway (BCG) at gateway.usps.com. The available information includes account balances, postage activity reports, transactions history, and other information.

For EPS account setup or support, email Postalone@usps.gov, or call the PostalOne! Help desk at 800-522-9085, or the USPS^® Mailing and Shipping Solution Center at 1-877-MRC-0007 (1-877-672-0007).

USPS Tracking^® service is included as part of the service for any USPS Returns service product. The extra services available for a fee for the USPS Returns service automated methodology include Insurance service, Signature Confirmation™ service, and Certificate of Mailing service. In cases when the USPS Returns service account holder must sign for multiple returns bearing accountable extra services, the Postal Service will create an electronic firm sheet to capture the recipient’s signature at the time of delivery and append it to the applicable associated returns. If all or part of the Intelligent Mail^® package barcode (IMpb^®) is unreadable, or the package is unable to be priced based on the availability of data collected, postage will be based on historical data or default data determined at the time of enrollment.

The Postal Service believes that these revisions to USPS Returns package product offerings will provide customers who choose the Postal Service for return services with a more efficient process and a superb customer experience.

Although the Postal Service will not publish these revisions in the DMM until May 4, 2020, the standards are effective immediately.

Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM)

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100 Retail Mail Letters, Cards, Flats, and Parcels

101 Physical Standards

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6.0 Additional Physical Standards for First-Class Mail and First-Class Package Service — Retail

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6.2 Cards Claimed at Card Prices

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6.2.9 Double Cards

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[Revise the last sentence of item b. to read as follows:]

b. ***The address side of the reply half may be prepared as Business Reply Mail, Courtesy Reply Mail, meter reply mail, or as a USPS Returns service label.

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200 Commercial Mail Letters, Cards, Flats, and Parcels

201 Physical Standards

1.0 Physical Standards for Machinable Letters and Cards

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1.2 Physical Standards for Cards Claimed at Card Prices

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1.2.9 Double Cards

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[Revise the last sentence of item b. to read as follows:]

b. ***The address side of the reply half may be prepared as business reply mail, courtesy reply mail, meter reply mail, or as a USPS Returns service label.

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202 Elements on the Face of a Mailpiece

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3.0 Placement and Content of Mail Markings

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3.3 Priority Mail Express and Priority Mail Markings

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3.3.3 Additional Markings for Priority Mail Express and Priority Mail

[Revise the first sentence of the introductory text of 3.3.3 to read as follows:]

In addition to the basic price marking in 3.3.1 and 3.3.2, except for pieces paid using a USPS Corporate Account, USPS Returns service, or permit imprint, Priority Mail Express and Priority Mail pieces claimed at Commercial Base or Commercial Plus prices also must bear the appropriate commercial price marking, printed on the piece or produced as part of the meter imprint or PC Postage indicia.***

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204 Barcode Standards

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2.0 Standards for Package and Extra Service Barcodes

2.1 Intelligent Mail Package Barcode

2.1.1 Definition

[Revise the fourth sentence of 2.1.1 to read as follows:]

***All mailers generating Intelligent Mail package barcodes (IMpb) must also submit piece-level information to USPS via an approved electronic file format (except for mailers generating barcodes for use on return services products, such as uninsured USPS Returns service packages).***

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2.1.7 Electronic File

[Revise the first sentence of the introductory text of 2.1.7 to read as follows:]

All mailers generating Intelligent Mail package barcodes (IMpb) must transmit piece-level information to USPS in an approved electronic file format (except for mailers generating barcodes for use on return services products, such as uninsured USPS Returns service packages).***

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220 Priority Mail

223 Prices and Eligibility

1.0 Prices and Fees

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1.2 Commercial Base Prices

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[Revise the text of item e. to read as follows:]

e. Permit holders using USPS Returns service for packages returned at Priority Mail prices when all requirements are met under 505.3.0.

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1.3 Commercial Plus Prices

1.3.1 Basic Eligibility

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[Revise the text of item d. to read as follows:]

d. Permit holders using USPS Returns service for packages returned at Priority Mail prices when all requirements are met under 505.3.0.

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1.4 Commercial Plus Cubic

1.4.1 Commercial Plus Cubic Eligibility

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[Revise the text of item c. to read as follows:]

c. Permit holders using USPS Returns service for packages returned at Priority Mail prices when all requirements are met under 503.3.0.

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224 Postage Payment and Documentation

1.0 Basic Standards for Postage Payment

1.1 Postage Payment Options

1.1.1 Commercial Base Pricing

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[Revise the text of item e. to read as follows:]

e. USPS Returns service used by permit holders for Priority Mail packages when all requirements are met under 505.3.0.

1.1.2 Commercial Plus Pricing

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[Revise the text of item c. to read as follows:]

c. USPS Returns service used by permit holders for Priority Mail packages. The permit holder must qualify for Commercial Base prices and have account volumes that exceed 100,000 pieces in the previous calendar year or have a customer commitment agreement with USPS (see 223.1.3.2).

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1.1.3 Commercial Plus Cubic Pricing

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[Revise the text of item c. to read as follows:]

c. USPS Returns service used by permit holders when packages are returned at Priority Mail prices and all requirements are met under 505.3.0.

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280 First-Class Package Service — Commercial

283 Prices and Eligibility

1.0 Prices and Fees

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1.2 Commercial Prices

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[Revise the text of item d. to read as follows:]

d. USPS Returns service used by permit holders for First-Class Package Service — Commercial packages when all requirements are met under 505.3.0.

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500 Additional Mailing Services

503 Extra Services

1.0 Basic Standards for All Extra Services

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1.4 Eligibility for Extra Services

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1.4.3 Eligibility — Domestic Returns

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Exhibit 1.4.3 Eligibility — Domestic Returns

[Revise Exhibit 1.4.3 table (replacing the current table in its entirety) to read as follows:]

Return Services	Eligible Extra Services (Paid by EPS Account or by Permit Holder)			Eligible Extra Services (Paid by Sender)
	Insurance $500 or Less	Insurance More than $500	Signature Confirmation	Insurance $500 or Less	Insurance More than $500	Signature Confirmation	Certificate of Mailing
USPS Returns:
Priority Mail Return Service	1	1, 2, 3	X	1	1, 2	X	4
First-Class Package Return Svs	3	2, 3	X	X	2	X	4
Ground Return Service	3	2, 3	X	X	2	X	4
Parcel Return Service	X	2		X	2		4
1. Insurance is not included for Priority Mail Return Service; it must be purchased. 2. A signature is not provided as part of the delivery record for USPS Returns service items insured for more than $500. 3. Insurance being purchased by the EPS account holder must be accompanied by electronic data that supports the value of the merchandise and the associated fee paid (see 4.3.1). 4. Individual pieces using PS Form 3817 or PS Form 3665 by sender only.

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2.0 Registered Mail

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2.2 Fees and Liability

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[Delete 2.2.4, Merchandise Return, in its entirety and renumber current 2.2.5 as 2.2.4.]

2.2.4 Indemnity

[Revise the text of renumbered 2.2.4 to read as follows:]

No indemnity is paid for any matter registered without prepayment of postage and fees.

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2.5 Inquiry on Uninsured Article

2.5.1 Who, When, and How to File

[Revise the second sentence of 2.5.1 to read as follows:]

***Only the mailer may file an inquiry for Registered Mail items with no declared value.***

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4.0 Insured Mail

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4.2 Insurance Coverage — Priority Mail

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[Revise the text of item e. to read as follows:]

e. Insurance coverage under 4.2a or 4.2b is not provided for Priority Mail packages mailed as USPS Returns service, Priority Mail Open and Distribute, or Premium Forwarding Service.

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4.3 Basic Standards

4.3.1 Description

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[Revise the text of item a. by adding a new third sentence to read as follows:]

a. ***For customer-generated integrated barcodes used for USPS Returns service or Parcel Return Service, the returns account holder must provide USPS with electronic data in a shipping services file, version 1.6 or higher, that identifies the USPS Tracking number of the insured return package, total postage paid, insurance fee paid, declared value, mailing date, origin ZIP Code, and delivery ZIP Code, along with the recipient’s name and address information.***

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505 Return Services

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[Revise the title and text of 3.0 to read as follows:]

3.0 USPS Returns Service

3.1 Basic Standards

3.1.1 Description

USPS Returns service allows an authorized account holder to pay the postage and fees on single-piece priced commercial Priority Mail, First-Class Package Service — Commercial, or Parcel Select Ground packages returned to the account holder by senders (mailers) via a return label, meeting the standards in 3.1.4, produced by the account holder. Unless otherwise restricted, any mailable matter may be mailed using any of the USPS Returns service options (Priority Mail Return Service, First-Class Package Return Service, and Ground Return Service or Parcel Select Ground). Any content that constitutes First-Class Mail matter may only be mailed using Priority Mail Return Service. USPS Returns service is subject to the following conditions:

a. Availability. USPS Returns service is available to the account holder for mailing to the account holder’s designated address on the USPS Returns label(s).

b. Payment Guarantee. The account holder must guarantee payment of the proper postage and fees, including any fees for Extra Services requested by the account holder, on all packages returned bearing a valid barcoded USPS Returns label produced by the account holder. The account holder must have sufficient funds in his or her associated Electronic Payment Account to pay the postage and fees on an ongoing basis.

c. Where Service Is Established. USPS Returns service accounts may be established at any Post Office in the United States and its territories and possessions or at any overseas U.S. Military Post Office (APO/FPO/DPO). USPS Returns service is not available for returns from any foreign country.

3.1.2 Accounts

USPS Returns service accounts are subject to the following:

a. Account Enrollment. An approved USPS Returns service account may be established by calling the Mailing and Shipping Solutions Center at 1-877-672-0007.

b. Advance Deposit Account. The account holder must pay postage and fees through an Enterprise Payment System (EPS) account, accessed through the Business Customer Gateway (BCG) at gateway.usps.com and agree to the terms and conditions for use of such EPS account as the EPS account holder.

c. Mailer Identification Code (MID). Applicants must request a new MID via the BCG, select the product type of nonmanifested returns, and select the applicable Service Type Codes (STCs) for the desired USPS Returns service products.

d. Application Process. Applicants must have a valid Enterprise Payment Account and be registered in the BCG.

e. Canceled Accounts. If the account is cancelled by the EPS account holder, USPS Returns service packages bearing the sender’s return address are returned to the sender; otherwise, they are treated as dead mail.

f. Account Cancellation. USPS may cancel an account if the EPS account holder refuses to accept and pay postage and fees for USPS Returns service packages, fails to keep sufficient funds in the advance deposit account to cover postage and fees, or distributes return labels that do not meet USPS standards.

g. Reapplying After Cancellation. To receive a new account after a previous USPS Returns service account is canceled, the applicant must re-register in the BCG and obtain a new MID for USPS Returns service use. If not using labels generated by the USPS Application Program Interface (API) at usps.com/business/web-tools-apis/welcome.htm, or Merchant Return Application (MRA), applicants must submit for approval two samples for each label format to the National Customer Support Center (NCSC). In addition, applicants must provide evidence that the reasons for the account cancellation are corrected, and maintain funds in their advance deposit account sufficient to cover normal returns for at least 2 weeks.

h. Using Other Post Offices. The authorized EPS account holder using USPS Returns may distribute USPS Returns labels for return through other Post Office locations.

3.1.3 Postage and Prices

Postage and prices are subject to the following:

a. Postage is calculated based on the weight of the return package and zone associated with the point of origin and delivery ZIP Code subject to the eligibility for commercial prices and fees based on the class of mail under 220, 250, and 280, except that postage for USPS Returns in flat-rate packaging is based on the packaging type used and the associated Universal Product Code (UPC) on the packaging. USPS Returns service packages are charged postage and fees based on the STC embedded in the IMpb and as provided under 3.1.3c. If all or part of the IMpb is unreadable, or the package is unable to be priced based on the data collected, postage will be determined by the Postal Service based on historical data, or default data determined at time of enrollment.

b. Prices for Priority Mail Return Service, First-Class Package Return Service, and Ground Return Service (Parcel Select Ground) packages are charged as follows:

1. Priority Mail Commercial Base prices are available for account holders using Priority Mail Return Service, when all applicable requirements are met.

2. Priority Mail Commercial Plus prices are available for Priority Mail Return Service packages that qualify for Commercial Base prices and for which the account holder has a customer commitment agreement with USPS (see 223.1.3).

3. First-Class Package Service — Commercial prices are available for First-Class Package Return Service packages when all applicable requirements are met.

4. Parcel Select Ground prices are available for Ground Return Service packages when all applicable requirements are met.

c. The account holder or mailer may obtain extra and additional services as follows:

1. Insurance is available for USPS Returns service (see 503.0). Insurance is not included with the postage for Priority Mail Return service. Insurance is available to the account holder for a fee on packages that have the applicable STC imbedded into the IMpb on the label, and for which the account holder has provided electronic data that supports the value of the merchandise (see 503.4.3.1a). Only the account holder may file a claim (see 609). Mailers mailing a USPS Returns service package may obtain insurance at their own expense at the time of mailing by presenting the labeled USPS Returns package at a Post Office retail unit to obtain the service.

2. Signature Confirmation is available for USPS Returns service (see 503.0). Signature Confirmation is available for a fee to the account holder for packages that have the applicable STC for Signature Confirmation imbedded into the IMpb on the label. Mailers mailing a USPS Returns package may obtain Signature Confirmation at their own expense at the time of mailing by presenting the labeled USPS Return package at a Post Office retail unit to obtain the service.

3. Certificate of Mailing is available only to mailers at their own expense at the time of mailing by presenting the certificate at a Post Office retail unit to obtain the receipt.

4. Pickup on Demand Service is available for a fee with USPS Returns service (see 507.7.0).

3.1.4 Labels

Distribution and preparation of labels are subject to the following:

a. Distribution of Labels. USPS Returns labels may be distributed to customers via the following:

1. As an enclosure with merchandise;

2. As a separate package (including when requested electronically through the BCG for printing and delivery to the customer by USPS);

3. As an electronic transmission for customer downloading and printing including through Label Broker, which allows customers to have the pre-paid returns label printed for them at a USPS Retail System Software (RSS) enabled retail location via a Label ID or QR code on a smartphone;

4. On a piece of paper, or written directly on a package presented to the retail associate); or

5. Through one of the account holder’s designated pickup facilities.

b. Label Preparation. The following provisions apply:

1. USPS Returns labels must meet the standards in the Parcel Labeling Guide available on the PostalPro website at postalpro.usps.com/parcellabelingguide.

2. The label must include an IMpb, accommodate all required information, be legible, and be prepared in accordance with the standards in Intelligent Mail Package Barcode (IMpb) Implementation Guide, available on the PostalPro website.

3. Standard label sizes are 3 inches by 6 inches, 4 inches by 4 inches, or 4 inches by 6 inches, and must be certified by USPS for use prior to distribution.

4. Except for USPS Returns labels generated by the USPS API or MRA, all returns labels must have a properly constructed IMpb (C01, C05, N02, or N05, as applicable) approved by the NCSC.

5. EPS account holders or their agents may distribute approved returns labels and instructions by means specified in 3.1.4b. EPS account holders or their agents must provide written instructions to the label end-user (mailer) as specified in 3.1.4c. Faxed labels will not be accepted. If all applicable content and format standards are met, USPS Returns labels may be produced by any of the following methods:

(a) As an impression printed by the EPS account holder directly onto the package to be returned.

(b) As a separate label preprinted by the EPS account holder to be affixed by the customer onto the package to be returned. The reverse side of the label must bear an adhesive strong enough to bond the label securely to the package. Labels must be printed and delivered by USPS to the customer when requested electronically by the EPS account holder or its agents through the BCG, or provided as an electronic file created by the EPS account holder for local output and printing by the customer.

(c) The electronic file must include instructions that explain how to affix the label securely to the package, and that caution against covering with tape or other material any part of the label where postage and fee information is to be recorded.

c. Labeling Instructions. Written instructions must be provided with the label that, at a minimum, directs the customer to do the following:

1. “If your name and address are not already preprinted in the return address area, print them neatly in that area or attach a return address label there.”

2. “Attach the label squarely onto the largest side of the package, centered if possible. Place the label so that it does not fold over to another side. Do not place tape over any barcodes on the label or any part of the label where postage and fee information will be recorded.”

3. “Remove or obliterate any other addresses, barcodes, or price markings on the outside packaging.”

4. “Mail the labeled USPS Returns service package at a Post Office, drop it in a collection box, leave it with your USPS carrier, or schedule a package pickup at usps.com.”

3.1.5 Noncompliant Labels

USPS Returns account holders must use USPS-certified labels meeting the standards in 3.1.4. When noncompliant labels are affixed to USPS Returns service packages, the permit holder will be assessed the appropriate USPS Retail Ground price calculated from the package’s initial entry point (first physical scan) in the USPS network to its delivery address.

3.1.6 Enter and Deposit

The following standards apply:

a. The EPS account holder’s customers may mail the USPS Returns service package via the following:

1. At any Post Office;

2. At any associated office, station, or branch;

3. In any collection box (except a Priority Mail Express box);

4. With any rural carrier;

5. By package pickup;

6. On business routes during regular mail delivery if prior arrangements are made with the carrier;

7. As part of a collection run for other mail (special arrangements might be required); or

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

b. USPS Returns service packages with extra services must be mailed either with the rural carrier or at the main Post Office or any associated office, station, or branch. Any such packages deposited in collection boxes may be returned to the sender for the extra service to be purchased appropriately, or it will be processed and the sender charged postage and fees based on the STC embedded in the IMpb on the label and as provided under 3.1.3c.

3.1.7 Additional Standards

Additional mailing standards applicable to each service option are as follows:

a. Priority Mail Return service may contain any mailable matter meeting the standards in 201.8.0 and 220.2.0. APO/FPO/DPO mail is subject to standards in 703.2.0 and 703.4.0, and Department of State mail is subject to standards in 703.3.0. Priority Mail Return service receives expeditious handling and transportation, with service standards in accordance with Priority Mail. Priority Mail Return service mailed under a specific customer agreement is charged postage according to the individual agreement. Commercial Base and Commercial Plus prices are the same as for outbound Priority Mail in Notice 123 — Price List.

b. First-Class Package Return service may contain mailable matter meeting the standards in 201.8.0 and 280.2.0. First-Class Package Return service handling, transportation, and eligibility of contents are the same as for outbound First-Class Package Service — Commercial parcels under standards in 283. First-Class Package Return service packages may not contain documents or personal correspondence, except that such packages may contain invoices, receipts, incidental advertising, and other documents that relate in all substantial respects to merchandise contained in the package.

c. Ground Return (Parcel Select Ground) service provides ground transportation for parcels containing mailable matter meeting the standards in 201.8.0 and 153.3.0. Ground Return (Parcel Select Ground) service is required for restricted and hazardous materials mailed using USPS Returns service and as provided in Publication 52, Hazardous, Restricted, and Perishable Mail. Ground Return (Parcel Select Ground) service assumes the handling, transportation, and service objectives for delivery of USPS Retail Ground.

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507 Mailer Services

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7.0 Pickup on Demand Service

7.1 Postage and Fees

7.1.1 Postage

[Revise the text of 7.1.1 to read as follows:]

The correct amount of postage must be affixed to each piece except for a Priority Mail Express label paid with a corporate account, packages with a USPS Returns label affixed (under 505.3.0), pieces with a Parcel Return Service permit label affixed (under 505.4.0), and manifest mailings paid by permit imprint indicia approved by Business Mailer Support (BMS).

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7.1.3 Fee Not Charged

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[Revise the text of item c. to read as follows:]