[Federal Register Volume 73, Number 163 (Thursday, August 21, 2008)]
[Rules and Regulations]
[Pages 49333-49348]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-19339]


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POSTAL SERVICE

39 CFR Part 111


Implementation of New Standards for Intelligent Mail Barcodes

AGENCY: Postal ServiceTM.

ACTION: Final rule.

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SUMMARY: On April 30, 2008, we published in the Federal Register 
(Volume 73, Number 84, pages 23393-23403) proposed mailing standards to 
require the use of Intelligent Mail[supreg] barcodes on all letters and 
flats mailed at automation prices as of May 2010. We described two 
options for using Intelligent Mail barcodes as of May 2009: The basic 
option and the full-service option. In this final rule, we summarize 
comments received in response to our proposed rule and provide our new 
mailing standards for the use of Intelligent Mail barcodes.

DATES: Effective Date: May 11, 2009.

FOR FURTHER INFORMATION CONTACT: Bill Chatfield at 202-268-7278 or 
Karen Zachok at 202-268-8779.

SUPPLEMENTARY INFORMATION: Current mailing standards require either 
POSTNETTM barcodes or Intelligent Mail barcodes on letters 
and flats mailed at automation prices and on letters mailed at Standard 
Mail[supreg] enhanced carrier route prices. Both barcode formats 
contain routing information, but Intelligent Mail barcodes offer 
additional options. They can include indicators for added services such 
as Address Change Service and Confirm[supreg], and enable tracking of 
individual mailpieces through our processing system. This additional 
visibility adds value to the mail and enables us to monitor service.
    In response to many mailer requests, we will continue to allow 
POSTNET barcodes on automation letters and flats until May 2011. 
However, effective May 2009, we will require all automation flats to 
bear barcodes that include delivery point routing codes, as currently 
required for automation letters.
    In May 2009, we will offer two options for using Intelligent Mail 
barcodes. Under the basic option, mailers will use the Intelligent Mail 
barcode on their letter and flat mailpieces. The basic Intelligent Mail 
barcode contains routing information for the delivery address but does 
not need to uniquely identify the mailpiece. Under the full-service 
option mailers must: Use unique Intelligent Mail barcodes on 
mailpieces; use Intelligent Mail tray barcodes and Intelligent Mail 
container barcodes; and electronically submit postage statements and 
mailing documentation.
    We will offer customers who qualify for the full-service 
Intelligent Mail option the following benefits in May 2009:
     Start-the-clock information at no additional charge to 
notify mailers when USPS [supreg] takes possession of mailings, and
     Address correction information at no charge for qualified 
letters and flats that do not have the most current address or that are 
undeliverable for other reasons, when those pieces are endorsed as 
specified for OneCode ACS TM.

[[Page 49334]]

    In May 2009, all First-Class Mail[supreg], Periodicals, Standard 
Mail, or Bound Printed Matter (BPM) letters and flats requiring a 
barcode will be eligible for the full-service option if the pieces bear 
Intelligent Mail barcodes and meet all other full-service option 
requirements.

Overview of Comments

    We are encouraged by the mailing industry's support of our 
Intelligent Mail vision. In response to our proposed rule, we received 
68 submissions from mail preparers, vendors, and mailers with wide 
ranges of annual mail volumes. Many commenters shared our enthusiasm 
for the Intelligent Mail initiative and appreciated our revised 
timeline for full-service option implementation as well as our 
extension of POSTNET barcode eligibility. Nevertheless, many commenters 
expressed concern about the new implementation timeline and about 
specific aspects of the program. In the sections below, we summarize 
comments and provide our responses.

Timing for Full-Service Implementation

Readiness

    Many commenters questioned the readiness of mailers, software and 
hardware vendors, and the Postal Service to support full-service use of 
Intelligent Mail barcodes by May 2009. Despite the extended time for 
implementation of full-service Intelligent Mail, several commenters 
suggested that May 2009 was still too aggressive and asked the Postal 
Service to reconsider. Several commenters requested that we phase-in 
implementation and continue to allow POSTNET barcodes on automation 
letters and flats until 2011 or later. In contrast, one mailer 
association suggested that we do not allow POSTNET barcodes on 
automation letters and flats after May 2009.
    The Postal Service is aware of the technological challenges that 
the mailing industry faces. Postal systems will support full-service 
use of Intelligent Mail in May 2009. We will continue to work closely 
with the mailing industry to ensure a successful implementation. We 
recognize that mailers need time to incorporate vendor-supported 
solutions and must establish budgetary priorities. Therefore, 
Intelligent Mail barcodes will not be required for automation prices in 
May 2009. We will continue to allow POSTNET barcodes on automation 
letters and flats until May 2011. The USPS will offer the benefits to 
those mailers who are ready for full-service in May 2009.

Final Requirements

    A primary concern about May 2009 implementation is the need for 
final technical requirements. These requirements allow vendors to 
supply new software and hardware that will enable mailers to print 
high-quality barcodes and provide electronic documentation via 
Mail.dat[supreg] or Mail.XML (replacing Wizard Web Services). Many 
commenters stated that vendors may need six to twelve months to 
develop, test, and finalize their products, followed by additional 
testing and implementation time for mailers. This final rule contains 
the final mailing standards for basic and full-service use of 
Intelligent Mail barcodes. A Guide to Intelligent Mail Letters and 
Flats (the Guide), available on the USPS Web site at ribbs.usps.gov, 
provides direction on how to implement the technical requirements.

PostalOne! Capacity

    Mailers expressed concern about the ability of PostalOne! to handle 
the larger, more complex files needed to document full-service 
mailings, and several commenters asked that PostalOne! operate around 
the clock, 7 days a week. PostalOne! is upgrading both hardware and 
software to be able to support the increased size and complexity of 
full-service mailing files. Currently, PostalOne! is a full production 
system that is available 24 hours a day, 7 days a week, except for its 
maintenance window. The standard scheduled maintenance window is on 
Sundays from 4 a.m. to 8 a.m. Central Time.

Pricing and Benefits

Requests for Advanced Notice of Prices

    Many commenters asked us to provide information, before next year's 
price adjustment announcement, about the pricing structure for 
mailpieces with Intelligent Mail barcodes that qualify for full-service 
prices and those eligible for basic prices. Most of these commenters 
stated that this information is needed to evaluate the financial costs 
and benefits of implementing the full-service option by May 2009. Two 
mailers suggested that the Postal Service work with the Postal 
Regulatory Commission to announce the Intelligent Mail barcode price 
structure before the annual Mailing Services price adjustment 
announcement.
    Some commenters stated that prices for pieces mailed under the 
full-service option should be lower than current automation prices. 
Some commenters further stated that the full-service prices should 
recognize the significant costs to the industry to participate in the 
full-service option. There were also a few requests for complete 
pricing structures, including all automation and nonautomation prices.
    One mailer association suggested that new mailing requirements to 
avoid price increases could constitute an effective price increase. 
Another commenter, declaring no need for the full-service option for 
themselves, opposed a dual price structure. One vendor suggested that 
pricing for full-service flats should be discounted more than for 
letters.
    There were several inquiries about whether we would establish two 
or three automation price tiers. One mailer asked for a pricing roadmap 
for related services.

Response Concerning Prices

    The benefits of Intelligent Mail reside in the enhanced value of 
the information-enriched mailstream, rather than in any prices that may 
accompany the Intelligent Mail barcode's introduction. While we 
understand that a number of factors affect how rapidly our customers 
adopt this new technology, we want to ensure that mailers focus on the 
groundbreaking nature of the Intelligent Mail barcode itself.
    Responses to our Federal Register proposed rule revealed that there 
are wide variations in preparedness. Given the variation in mailers' 
readiness, and the current state of the economy, we want customers to 
adopt the new technology at their own pace. We do not want the 
implementation of any price to be interpreted as a mandate to adopt the 
full-service option in May 2009.
    As we noted in our proposed rule, the Postal Service typically does 
not comment on specific prices in advance of a general price change 
announcement. As part of our price adjustment announcement in 2009, we 
will recommend to the Board of Governors that there be two automation 
pricing tiers, with lower automation prices in the Fall of 2009 for 
letters and flats that require a barcode and that are eligible for the 
full-service use of Intelligent Mail. We also will announce prices for 
related services as part of the annual price adjustment announcement.
    We believe that the benefits of the information-enriched mailstream 
will be evident to most mailers and that they will determine that those 
benefits (those included in the full-service option as well as the 
internal uses of the data generated for the mailer through use of the 
Intelligent Mail barcode) will be worth their investments. The Postal 
Service will be ready to implement both full-service and basic options 
of

[[Page 49335]]

Intelligent Mail in May 2009 and will work with mailers to promote and 
assist adoption. The Postal Service will provide start-the-clock and 
address correction information to full-service participants in May 
2009.

Concerns About Other Benefits

    Many commenters asked for more details regarding the value or 
benefits of using the full-service option for mailers and mail 
providers. There were requests for the USPS to summarize the costs and 
benefits of full-service option implementation for the USPS and for 
customers. There also were requests for an explanation of how the 
industry will recover costs; with one commenter stating that 
implementation of the full-service option provides no value to mail 
service providers. One mailer association stated that a mature data 
feedback system for providing beneficial data should be developed and 
in place by the time customers need to be ready for implementation. One 
commenter suggested that full tracking information be the primary 
benefit for full-service mailings, instead of establishing a lower 
price.

Response Concerning Benefits

    Intelligent Mail offers significant benefits. The USPS will provide 
automated address correction notices for letters and flats and start-
the-clock information for mailings prepared under the full-service 
option. Mailers will receive actionable address correction information 
so that the right mailpiece is delivered to the right recipient at the 
right time. This improves mail quality and the return on investment of 
mailings. Start-the-clock information will enable visibility for when a 
mailing is inducted in the mailstream, allowing participants to bring 
accountability to the supply chain. Full-service option mail requires 
unique identification of mailpieces and containers and the provisioning 
of electronic documentation. These features can be used by mailers to 
automate and improve document management processes, quality control, 
and hand-off to third party suppliers. Mailers will no longer need to 
print and provide hard copy qualification reports and paper postage 
statements. This not only reduces paper usage, but eliminates the 
associated costs for handling, storing, managing, and disposing of 
paper-based documentation, promoting a more sustainable approach. See 
subsequent sections on ``Address Correction Notices'' and 
``Visibility'' for explanations of these benefits.

A Guide to Intelligent Mail for Letters and Flats

    Many commenters expressed concern about the recently published A 
Guide to Intelligent Mail for Letters and Flats, and stated that a 
longer period should be allowed for comments about that document. We 
have welcomed input and have continued to work with mailers to enhance 
the Guide and improve its usefulness. Several commenters asked that 
electronic documentation requirements be separated from Intelligent 
Mail implementation. As a reminder, electronic documentation is an 
integral part of the full-service option and remains an eligibility 
requirement. There is concern from customers that specifications in the 
Guide will continue to change. The Guide has been updated to 
accommodate feedback received from mailers and provide greater clarity 
for electronic documentation solutions. We are publishing the Guide on 
ribbs.usps.gov, concurrent with this final rule.
    Comments about the Guide included inquiries about the timing of 
Mail.dat and Web Services updates to resolve such issues as nesting of 
mailpieces. Other inquiries include the identification of mail owners, 
customer registration IDs (CRIDs), accounting for pieces in combined 
and copalletized mailings, accounting for mailpiece spoilage, 
designation of ``by/for'' entities, and designation of authorized third 
parties (or ``cast of characters'') for data dissemination.
    The Guide has been updated to reflect changes to support the full-
service option. The Guide specifies the versions of Mail.dat and 
Mail.XML that will support Intelligent Mail. The Guide clarifies that 
the CRID is a 10-digit number field. There are no current plans to 
change the CRID to a 12-digit field. The Guide has also been updated to 
identify the spoilage, shortage, and data distribution solutions in 
collaboration with the mailing industry. More specific information on 
these and other items raised by commenters are in the Guide.

Mailer ID Concerns

    Many commenters appreciated our clarification regarding the 
optional use of a mail owner's or mail preparer's Mailer ID in the 
Intelligent Mail barcode.

Application Process

    There were many requests to streamline the application process, 
with a few requests to establish an online process. One service 
provider asked if mail preparers would be able to directly obtain 
Mailer IDs for mail owners. In response to these requests, we have 
simplified the application form. Mail preparers may obtain Mailer IDs 
for mail owners via a redesigned application form, available online at 
ribbs.usps.gov.
    Mail owners and mail preparers requested that the USPS consolidate 
the application process so that one Mailer ID could be used for OneCode 
ACS, OneCode Confirm, and general use of Intelligent Mail barcodes. One 
Mailer ID will be sufficient to access Confirm service, OneCode ACS, 
and the full-service option, except for specific uses of OneCode ACS. 
When a mailer uses the same ACSTM endorsement on all 
mailpieces, the same Mailer ID can be used. If a mailer uses different 
endorsements, such as ``Address Service Requested'' for some mailpieces 
and ``Change Service Requested'' for other mailpieces, a separate 
Mailer ID may be needed for each endorsement. Several commenters asked 
for a solution that would allow one Mailer ID to be used for multiple 
endorsements. The Guide explains the limited circumstances when mailers 
will need to use a different Mailer ID to support multiple 
endorsements.
    Some commenters asked the USPS to remove questions from the 
application that asked for information they considered to be 
proprietary in nature. We redesigned the Mailer ID application to 
remove these sections.

6-digit Mailer IDs for MLOCRs and ``Jackpotting''

    Many mailers asked us to assign 6-digit Mailer IDs to individual 
multi-line optical character reader (MLOCR) machines. An MLOCR mailer 
may be given more than one 6-digit or 9-digit Mailer ID for use in the 
production environment for mailings prepared under full-service 
requirements if the MLOCR mail preparer's volume is such that they 
could not maintain unique identification of the mailpieces in a 45-day 
period using a single Mailer ID.
    A concern was raised about whether an MLOCR mailer would be 
required to profile each customer's mail volume separately when 
``jackpotting'' several small customer volumes together within a single 
mailing. We will allow MLOCR mailers to jackpot the mail from customers 
who provide less daily volume than 1% of the total average daily volume 
processed at that facility or 3,000 pieces (whichever is less). Mail 
preparers may not jackpot pieces with postage paid by permit imprint or 
any nonprofit pieces included in a combined mailing. Mail preparers may 
not subdivide one day's mailing into smaller segments to increase the 
number

[[Page 49336]]

of opportunities to jackpot the mail. A concern was expressed about the 
ability to jackpot reject mailpieces if the mail owner had to be 
identified either in the barcode or in the mailing documentation. 
Reject mailpieces will not have to be separately profiled.

Mail Owner Identification

    Two mail service providers objected to the proposed requirement 
that the mail owner's request to use the owner's Mailer ID be honored, 
stating that this could not be done while maintaining mailpiece 
uniqueness. A few service providers and two industry associations 
requested that we remove the requirement for identification of the mail 
owner in the electronic documentation. Except for mailpieces with 
unreadable barcodes that may need to have a replacement barcode applied 
by a mail preparer, we are reiterating the requirement that mail 
preparers honor mail owners' requests to use their Mailer IDs in the 
Intelligent Mail barcode. We also retain the requirement to identify 
the mail owner via electronic documentation.

Mailpiece Uniqueness

    Several commenters reiterated the previous suggestion that 
mailpiece ``uniqueness'' (unique numbering of mailpieces) be achieved 
by linking the delivery routing code with the serial number ID. As of 
May 2009, when mailpiece uniqueness is required for full-service, the 
serial number ID in combination with the Mailer ID and Service Type ID 
(by class of mail) will be required for mailpiece uniqueness. When 
mailers separate pieces of identical weight permit imprint mail by 
price category, or when the correct postage is affixed to each piece in 
full-service mailings of less than 10,000 pieces, mailpieces may have 
the same serial number on all pieces.
    Many commenters expressed doubt about their ability to maintain 
uniqueness for 45 days. Several commenters questioned why the USPS 
needed to ensure uniqueness at all. To provide maximum solutions for 
information needed now and for future development, piece uniqueness is 
required, and that uniqueness lies in the Service Type ID (by class of 
mail), Mailer ID, and unique serial number. The USPS assigns 6-digit 
and 9-digit Mailer IDs to mailers to accommodate the ability to 
uniquely identify mailpieces, taking into account their mail volumes. A 
9-digit Mailer ID allows up to 1 million pieces with unique serial 
numbers for a period of 45 days. A 6-digit Mailer ID allows up to 1 
billion pieces with unique serial numbers, which should enable mailers 
to maintain mailpiece uniqueness for 45 days.

Intelligent Mail Barcodes for Mailpieces

Height

    Several mailers asked for a reduction in height of the Intelligent 
Mail barcode and for a reduction in the required space between address 
elements and the barcode, and one mailer asked if the technical 
specifications for the Intelligent Mail barcode have been finalized. We 
understand the barcode printing concerns and the necessity of 
maintaining an address area that facilitates use of a 1-inch-high 
label. The USPS Engineering and Intelligent Mail Planning and Standards 
departments have worked extensively with mailer groups over the past 18 
months to resolve barcode specification issues. Ink jet printer 
manufacturers also provided recommendations and testing.
    As a result, the Postal Service revised the barcode specification 
to reduce the barcode minimum height to 0.125 inch (from 0.134 inch) 
and the minimum vertical text-to-barcode spacing to 0.028 inch (from 
0.040 inch). This results in an overall line height that is actually 
less than the POSTNET\TM\ barcode requirements. In addition, the void 
spacing maximum (the empty space between print dots that make up a bar) 
has been doubled from 0.005 inch to 0.010 inch and MERLIN[supreg] 
barcode thresholds have been altered to be lower than the minimum 
heights of the barcode with slightly lower text-to-barcode spacing to 
allow for printing variations. These specifications are final.
    Barcode theory and USPS testing indicate that any further 
reductions in barcode height will erode the readability of the barcode. 
This issue is due to the physical limitations of creating four 
different elements within the barcode's height. In addition, ink jet 
printer manufacturers are concerned that further reductions in barcode 
height would exceed the tolerance their equipment can meet. As an 
alternative to further barcode dimension changes, the Postal Service 
has reduced the address block text sizes for barcoded mail. These new 
dimensions allow a minimum text height of 0.065 inch (0.080 inch was 
initially proposed). These changes represent significant steps in 
facilitating address block and barcode printing. Ink jet printer 
manufacturer feedback to these latest changes has been unequivocally 
positive.

Business Reply Mail (BRM) Barcode Placement

    One commenter stated that the placement of Intelligent Mail 
barcodes on Business Reply Mail[supreg] (BRM) in the barcode clear zone 
does not allow adequate printing tolerance, particularly for taller 
barcodes. A delivery point barcode must be positioned vertically 
between 0.1875 inch and 0.4375 inch from the bottom edge of the piece. 
The maximum 0.165-inch-high Intelligent Mail barcode will fit within 
the 0.250-inch area with room remaining for print tolerance. The 
Intelligent Mail barcode specification provides ample tolerance for 
printers to comply with the clear zone dimensions.

Redirection Visibility

    There was one request that the USPS upgrade our Postal Automated 
Redirection System (PARS) to spray a new Intelligent Mail barcode on 
forwarded pieces so that the data in the original barcode are retained. 
The USPS decided not to make a modification to PARS.

Miscellaneous Barcode Issues

    One commenter asked about the future of the PLANET Code barcode. We 
will retain the PLANET Code barcode for Confirm service as long as we 
continue to allow the POSTNET barcode for automation price eligibility. 
Several commenters asked if Intelligent Mail barcodes would be required 
on nonautomation pieces, and one commenter recommended that the 
Intelligent Mail barcode be optional on machinable pieces. We will not 
require barcodes on nonautomation mailpieces, but would allow correct 
barcodes at the mailer's option. One commenter asked if both alpha and 
numeric indicators could be used in the Intelligent Mail barcode. 
Current specifications for the Intelligent Mail barcode use numeric 
indicators; we have no plans to include alpha indicators in the 
barcode.
    One commenter suggested that the USPS test readability of the 
Intelligent Mail barcode on Periodicals publications. Since 2006, the 
USPS has worked with mailers to test a variety of letters and flats to 
achieve the most flexible barcode specifications. The barcode 
specifications are now standardized and all mailers will be provided 
support as needed for implementation.
    One commenter requested specific standards for applying Intelligent 
Mail barcodes on postcards. Current standards allow Intelligent Mail 
barcodes on postcards that have enough space in the address block to 
include the barcode.

[[Page 49337]]

Container Placards and Barcodes

    Two commenters reacted favorably to the elimination of the proposed 
requirement for a green strip or border on the container placard 
(previously referred to as a ``container label''). One mailer expressed 
appreciation for the added option of using a smaller placard when 
affixed to the outside of the shrinkwrap. Several commenters urged the 
USPS to improve our container barcode scanning percentage.

Number of Placards

    There were several requests that we retain the current two-placard 
requirement for pallets due to increased costs of applying a third 
placard. As of May 2009, under the full-service option, we will require 
two affixed placards on adjacent sides on the outside of shrinkwrapped 
pallets. Mailers who load pallets on trucks must position the pallets 
so that one pallet placard faces the rear of the truck.

Layers of Shrinkwrap

    There were several objections to the restriction of no more than 
two layers of shrinkwrap covering pallet placards, noting compliance 
problems due to the automation of their wrapping procedures. We 
reiterate the importance of having all pallet placards placed so that 
they are readable and the barcodes may be scanned. We cannot generate 
or provide scans for placards that are obscured by shrinkwrap. In May 
2009, for full-service mailings, we require that all pallet placards 
with Intelligent Mail container barcodes be affixed on the outside of 
shrinkwrap.

Placard Specifications

    Two commenters objected to changing the minimum height of pallet 
placards. Mailers may choose to use smaller self-adhesive pallet 
placards with a minimum size of 4 inches by 7 inches for placards not 
containing ``mailer-area'' information, that are affixed to the outside 
of shrinkwrap. We also are retaining the current minimum height of 8 
inches for pallet placards with a defined ``mailer area.'' The top 4.25 
inches of the placard will remain reserved for USPS use only. Mailers 
who use the 8 x 11 inch size must limit the mailer area to the 
remaining lower portion of the placard, which reduces the size of that 
area. Several commenters suggested that the Intelligent Mail container 
barcode include the destination. The Intelligent Mail container barcode 
has been designed to uniquely identify a unit load of mail and capture 
specific tracking data. The unique ID in the barcode is designed to 
link the physical unit load with its detailed attributes contained 
within an electronic file. The barcode is not designed for routing 
purposes.
    A mailer association asked if leading dashes or zeros could be used 
in the container barcode. The current Intelligent Mail container 
barcode specification supports the use of either leading dashes or 
zeros.
    One mailer asked if a basic-option mailer could use the Intelligent 
Mail container placard, even though not required. We welcome these 
mailers' use of Intelligent Mail container placards, and hope that 
those who do so will participate in the full-service option at their 
earliest opportunity.
    One vendor asked how the USPS would use container scan data. We 
will furnish induction container scan data, when available, for full-
service mailings to the mailers as part of the start-the-clock 
feedback. We also will use these data to validate drop-shipments for 
full-service mailings.

Tray Labels and Barcodes

    Some commenters expressed concern about the changing 10/24 barcode 
format for Intelligent Mail tray labels, and many commenters asked when 
the new 24-digit barcode format could be used. The final specifications 
for the 10/24 transitional Intelligent Mail tray label and the 24-digit 
Intelligent Mail tray label are available on ribbs.usps.gov. Mailers 
will be able to use the 24-digit barcoded label on, but not before, 
April 6, 2009. The need for accurate 24-digit barcodes on labels 
generated through vendor software is imperative to the success of full-
service implementation. Therefore, we are requesting that all vendor 
software that generates the 24-digit barcoded labels go through a 
certification process to ensure readiness. The certification process is 
posted on our Intelligent Mail Web site at ribbs.usps.gov. One mailer 
requested that tray label specifications be finalized within 60 days. 
Specifications for the 24-digit Intelligent Mail tray label are 
provided in the Mailing Standards of the United States Postal Service, 
Domestic Mail Manual (DMM[supreg]) section of this final rule.
    Several commenters urged the Postal Service to ensure adequate 
supplies of plastic sacks and label holders and to improve the quality 
of existing label holders. The Postal Service uses 2-inch label holders 
on letter and flats trays, and supplies label holders to mailers upon 
request. We have an adequate supply of plastic sacks and sack label 
holders, and we welcome specific suggestions for improving the quality 
of existing label holders.
    One mailer asked if both alpha and numeric indicators could be used 
in the Intelligent Mail tray barcode. We developed the Intelligent Mail 
tray barcode to include only numeric indicators and are not planning to 
allow alpha indicators.

Address Correction Notices

Provision of Data

    Many commenters sought clarification about how USPS will provide 
address correction notices, and inquired about the ability to 
distribute these notices to authorized third parties. Two commenters 
requested that free address correction information be provided to all 
users of Intelligent Mail barcodes. Several commenters requested that 
notices be provided in a downloadable file format.
    We will provide automated address correction notices for correctly 
formatted full-service mailpieces that meet OneCode ACS requirements. 
The information will be provided in one of two ways. Authorized 
entities may obtain downloadable files via the Internet or an 
electronic exchange method.

Provision of Notices at No Additional Charge

    Mailers will qualify for automated address correction notices at no 
additional charge for mailpieces verified as eligible for Intelligent 
Mail full-service, when mailers use the provided information to update 
their address records. Mailers who do not update an address record 
after notification may incur charges for subsequent notices for that 
address.
    One mailer suggested that free address correction notices be 
provided for carrier route flats when they have Intelligent Mail 
barcodes and are part of a full-service mailing. We will consider 
including carrier route flats as eligible for full-service benefits in 
the future.

Move Update

    A few commenters questioned whether participation in the full-
service option would meet the Move Update requirement. Full-service 
mailings would meet Move Update requirements as long as address 
correction information previously obtained has been used to update 
addresses within 95 days (effective November 23, 2008) of the date of 
mailing. It is important that mailers use the information provided in 
address correction notices to update addresses used in future mailings. 
A premailing method, such as NCOALINK[supreg], is necessary 
for Move Update compliance when mailers use

[[Page 49338]]

newly purchased lists or lists that have not used an approved Move 
Update process within the previous 95 days. As a reminder, mailpieces 
with alternative addressing formats (simplified, occupant, and 
exceptional addresses) are not subject to the Move Update standard and 
may not use ancillary service endorsements. Alternative addresses 
include pieces with addresses such as ``Postal Customer,'' ``Occupant'' 
with a delivery address, or an addressee's name accompanied by ``Or 
Current Resident'' with a delivery address. Pieces with alternative 
addressing formats must not use ACS.
    We received additional questions about whether mailers could switch 
OneCode ACS on and off for different mailings. Mailers may use OneCode 
ACS on selected mailings or on selected pieces within a mailing, but 
should be aware that we will monitor address quality to ensure 
compliance with Move Update standards. Commenters also questioned 
whether free notices would be provided for mailpieces that failed to 
maintain uniqueness. Mailpieces that are ostensibly presented as part 
of full-service mailings, but which do not maintain the required 
uniqueness or fail to qualify for full-service for any reason will not 
be eligible to receive automated address correction notices at no 
additional charge.
    A mailer association asked about the obligation of a third party 
when address lists are rented. The mailer is responsible for ensuring 
compliance with Move Update requirements. Mail providers may request 
that mail owners complete PS Form 6014, Certification of Move Update 
Compliance.

Printed Endorsements

    Several commenters questioned the need for printed ancillary 
service endorsements on pieces requesting OneCode ACS. First-Class Mail 
letters and Periodicals mailpieces with OneCode ACS do not need printed 
endorsements since all undeliverable-as-addressed First-Class Mail 
letters and Periodicals mailpieces are sent to either the Postal 
Automated Redirection System (PARS) or Centralized Forwarding System 
(CFS) units for processing where the Intelligent Mail barcode is read 
to detect the mailer's request for address correction services. First-
Class Mail flats, without a printed endorsement, that can be forwarded 
are also sent to CFS units for processing and generation of OneCode ACS 
notices based on the Intelligent Mail barcode. First-Class Mail flats 
that are undeliverable for any other reason are not sent to CFS units 
for processing and do not generate the OneCode ACS address correction 
notice unless they have a printed endorsement indicating the mailer's 
request for address correction services. All undeliverable-as-addressed 
Bound Printed Matter (BPM) and Standard Mail pieces received at the 
delivery unit are disposed of if they do not bear printed endorsements 
to alert delivery employees to the mailer's request for address 
correction services.
    We also received questions about additional charges for services 
implied by endorsements, including whether the USPS would charge for 
hard copy notices provided for full-service option pieces. When 
Periodicals, Standard Mail, and BPM pieces have endorsements requesting 
an undeliverable mailpieces' forwarding or return, additional charges 
apply for these services. Also, when hard copy notices are provided at 
the mailer's request associated with the forwarding of a mailpiece, 
current prices apply. However, as today, mailers will not be required 
to pay the manual notice fee for a hard copy notice for pieces properly 
prepared for OneCode ACS when the endorsement is Electronic Service 
Requested.

Miscellaneous

    One commenter suggested that providing free notices devalued use of 
NCOALINK. A premailing method, such as NCOALINK, 
may be necessary for compliance with Move Update requirements when 
mailers use newly purchased lists or lists of addressees to which they 
have not mailed within the previous 95 days. We urge customers to use 
NCOALINK before mailing to increase the percentage of 
deliverable, timely mail. We consider the provision of address 
correction notices, which includes information not available in 
NCOALINK when files are processed, as a supplement to 
NCOALINK and other mailer efforts to update and cleanse 
their address lists.
    Several commenters asked if mailpieces for which the USPS database 
could not supply 11-digit routing codes would be eligible for 
automation prices. One commenter suggested that the USPS improve its 
address database to lower the percentage of uncodeable addresses. As of 
May 2009, barcodes with 11-digit routing codes will be required for 
automation flats. Currently, 11-digit routing codes are required in 
barcodes on automation letters. The USPS makes a continuous effort to 
identify and resolve any missing information in its address database. 
However, not all addresses maintained by the mailing industry represent 
valid delivery points served by the USPS. When a mailer has addressed a 
piece to an address that is not a USPS delivery point, or when the 
address cannot be matched to the USPS address data, an 11-digit routing 
code cannot be provided. The USPS provides many different products, 
programs, and services to assist mailers in resolving addresses that 
cannot be matched to the USPS database. As a reminder, current DMM 
standards accommodate situations when mailpieces are addressed for 
delivery to an address with a unique 5-digit ZIP CodeTM or 
unique ZIP+4[supreg] code.
    A mailer association asked when the USPS would retire traditional 
ACS, and another commenter asked if notices would be ``free forever.'' 
We have no plans to retire traditional ACS. When mailers participate in 
the full-service option, automated address correction notices will be 
provided for qualifying mailpieces. We will monitor the effectiveness 
of this service on reducing the volume of undeliverable-as-addressed 
mail and the results will influence future pricing decisions.

Visibility

    Many commenters asked for clarification about information that will 
be provided as ``start-the-clock'' information--verification of USPS 
possession of the mailing or container scans. There were many requests 
to specify the method for providing the information, with observations 
that online reports would be inadequate. Several commenters requested 
that container scans be provided in a downloadable file format, with 
the ability to provide information to mail owners, mail preparers, and 
authorized third parties. Two commenters suggested that tray and 
container scans be provided at no charge to full-service option 
participants. We will provide information about when the mail is 
inducted into the mailstream. All available induction scan data will be 
provided. Information will be provided online via an online method or 
an electronic data exchange capability.
    Two commenters stated the need for the USPS to provide detailed 
diagnostic information based on data obtained when pieces are 
processed. The USPS will provide address correction information and 
start-the-clock information as part of the full-service option. The 
USPS will consider offering additional mail quality diagnostics in the 
future.

Confirm

    Several commenters requested that the USPS maintain Confirm service 
in its current state, allowing all mailers

[[Page 49339]]

who use either Intelligent Mail barcodes or PLANET Code barcodes to 
access mailpiece tracking information. Several commenters requested an 
expanded ability to distribute scan data to third parties. One mailer 
requested that the USPS expand pricing options to accommodate fewer 
scans for a subscription price lower than the current Silver price 
level.
    We agree that Confirm provides information that improves the value 
of mail for customers; this is consistent with the Intelligent Mail 
vision. Any changes in the pricing or availability of Confirm would be 
pursued separately. This notice reiterates the availability of OneCode 
Confirm through the use of a Service Type ID in the Intelligent Mail 
barcode, and does not change the existing ability of authorized third 
parties to receive Confirm data. Expanded data distribution 
capabilities are discussed in the Guide.
    One commenter asked if OneCode Confirm will supply forwarding 
scans. The USPS does not plan to offer this at this time.

Data Security

    Commenters requested information regarding USPS plans to provide 
security for data transmitted by mailers and data captured under the 
full-service option use of Intelligent Mail. The Intelligent Mail 
implementation will be in compliance with its comprehensive security 
standards as published in the USPS Handbook, AS-805, Information 
Security. The AS-805 handbook and its related documents are based upon 
industry and government standards and best practices.

Customer/Supplier Agreements

Containerization Standards

    Commenters noted that our proposal lacked standards for 
containerization of First-Class Mail letters and flats. Several 
commenters requested that we finalize containerization standards and 
publish them as part of the final rule, rather than possibly publishing 
them as a separate notice. We continue to work with the mailing 
industry on containerization of large, origin entered mailings through 
customer/supplier agreements.

Variations by Site

    Some commenters expressed concern about local agreements varying by 
site, and three commenters requested a defined resolution process. One 
commenter suggested that containerization requirements should translate 
into price discounts. Customer/supplier agreements are the result of 
cooperation between mailers and USPS plant managers to establish 
appropriate separation of mailing containers related to critical mail 
acceptance times. Customer/supplier agreements will be used for origin-
entered mailings verified at a mailer's facility, for mail presented at 
the BMEU requesting later entry times, and for time-sensitive 
dropshipped Periodicals mailings requesting later entry times. The 
nature of customer/supplier agreements is one of a mutually beneficial 
agreement. The process for establishing customer/supplier agreements is 
outlined in the Guide and these will be established as needed for 
eligible customers.

Special Postage Payment Agreements

    Several commenters asked if optional procedure agreements or other 
special postage payment agreements would be replaced with customer/
supplier agreements. Special postage payment agreements will remain as 
they are currently, with customer/supplier agreements supplementing 
special postage payment agreements rather than replacing them.

Miscellaneous

    One mailer requested that the USPS allow First-Class Mail mailers 
to retain scheduled pickups. There are no plans to discontinue current 
local transportation schedules. One mailer asked that the USPS not 
require multiple mailings to be combined. This is not required now and 
the Postal Service has no plans to require it in the future. A vendor 
association stated that more information on transportation routes and 
handling of First-Class Mail is needed. There are no planned changes in 
current transportation requirements.

Reply Mail

    Most commenters appreciated the longer time provided in our 
proposal to use POSTNET barcodes on reply mail, but some asked us to 
rethink whether we needed Intelligent Mail barcodes on all reply mail. 
One mailer asked that we not require Mailer IDs in Intelligent Mail 
barcodes on Business Reply Mail (BRM).
    BRM or Courtesy Reply Mail\TM\ (CRM) pieces will not be required to 
have Intelligent Mail barcodes until May, 2011. However, letters 
claiming Qualified Business Reply Mail (QBRM) prices and Permit Reply 
Mail (PRM) pieces will be required to use Intelligent Mail barcodes, 
including Mailer IDs, as of May 2010. We will continue to allow, until 
May 2011, either POSTNET or Intelligent Mail barcodes on other reply 
mail that is enclosed within automation mailpieces.
    Two commenters asked for a 5 percent rebate on postage for Courtesy 
Reply Mail bearing Intelligent Mail barcodes and enclosed in full-
service mailings. Courtesy Reply Mail pieces are entered into the mail 
system as single-piece items and are fully processed by the USPS; 
therefore we do not plan to offer a rebate on postage for Courtesy 
Reply Mail pieces.

Verification of Full-Service Mailings

Mixed Mailings

    Many commenters asked if, under the full-service option, the USPS 
would allow mailpieces with POSTNET barcodes and basic option 
Intelligent Mail barcodes to be commingled with full-service pieces. We 
will allow full-service and basic option mailpieces with Intelligent 
Mail barcodes as well as pieces with POSTNET barcodes to be combined in 
a single mailing, including copalletized mailings, when appropriate 
documentation is provided. As a reminder, when there are full-service 
pieces in a mailing, mailers must use Intelligent Mail tray labels and 
Intelligent Mail container placards (if the mail is containerized) and 
provide the USPS with electronic mailing documentation which includes 
piece level documentation for all mailpieces in those mailings. The 
Guide provides detailed information concerning documentation for mixed 
and copalletized mailings that include pieces with different types of 
barcodes.

Verification Procedures

    Several commenters asked about continuation of current verification 
procedures, as well as proposed tolerances and penalties for failure to 
maintain mailpiece uniqueness or other errors. Current verification 
procedures, including use of MERLIN and established levels of error 
tolerances, will apply to basic and full-service mailings. Failure to 
meet qualifications for the full-service option, such as not 
maintaining mailpiece uniqueness, would result in a mailing being 
ineligible for full-service benefits; however, it may still be eligible 
for automation prices. A mailer association asked if hard copy 
documentation will be required for full-service mailings. Full-service 
mailings require the submission of electronic documentation; use of 
hard copy documentation for full-service mailings is not an option.

[[Page 49340]]

Miscellaneous

    One commenter asked for the flexibility to enter a full-service 
mailing as a Standard Mail mailing, but upgrade it to a First-Class 
Mail mailing via electronic notification. There are no provisions for 
this type of change at this time.
    Another commenter asked if the unique serial number in barcodes on 
pieces mailed under the full-service option would replace the printed 
unique mailpiece identification required for manifest mailings. The 
USPS will consider this option in the future, as mailers and the USPS 
determine that validation and verification procedures are adequate 
without the printed identifiers.
    One mailer requested that the USPS publish a list of approved full-
service vendors. We are not planning to certify or formally pre-approve 
vendors for full-service capabilities.

FAST

    Several commenters expressed appreciation that Facility Access and 
Shipment Tracking (FAST[reg]) appointments would not be generally 
needed for First-Class Mail mailings and for origin-entered mailings of 
other mail classes. We received several requests for clarification 
regarding the method needed to update files after the original 
appointment is made. Updates for recurring appointments may be provided 
via Mail.dat or Mail.XML, whereas updates to one-time appointments 
would be provided only via Mail.XML. One commenter asked if 
consolidators were responsible for updating appointment information. 
Whoever makes the appointment is responsible for updating the logistics 
information. Appointment content information may be updated by the 
appointment creator (scheduler) or may also be updated by the mail 
owner or mail preparer in joint scheduling scenarios.
    One commenter asked how FAST accommodates customer/supplier 
agreements. FAST will be used, as defined in the customer/supplier 
agreement, to create appointments for origin entered mail that is 
transported by the mailer. The FAST system is also used to schedule 
appointments for dropshipment mailings, which typically do not require 
a customer/supplier agreement.
    One mailer asked if FAST will be integrated with the Surface Air 
Management System (SAMS). SAMS and FAST serve different functions, and 
under the full-service option they will continue to function as they do 
today. There are no plans for a SAMS-FAST link.

Other Comments

Miscellaneous

    Many commenters requested a technology roadmap for the next three 
to five years. The USPS will share the timeline for Intelligent Mail 
implementation with the mailing industry.
    Several commenters requested that the USPS establish online and 
human technical support systems. USPS help desks are being resourced 
and trained to support the Intelligent Mail implementation in May 2009. 
Personnel across various USPS functions such as business mail 
acceptance, business service network, and sales are being trained. The 
USPS will provide webinars, training and educational material for 
vendors and customers after publication of this final rule.

Current Standards

    We also received questions about issues that are already covered by 
mailing standards in the current DMM. For instance, barcode placement 
standards are in DMM 202.5, 302.4, and 708.4. We currently allow and 
encourage mailers to use Intelligent Mail barcodes on their letters and 
flats to qualify for automation prices according to standards in DMM 
202.5, 302.4, and 708.4, with technical specifications available at 
ribbs.usps.gov/OneCodeSolution/. Standards regarding the use of 
Intelligent Mail barcodes with Confirm service are in DMM 503.13.3 and, 
with OneCode ACS\TM\ in DMM 507.4.2. Standards for using Intelligent 
Mail barcodes on BRM are in DMM 507.9.9 and 708.4.0. We have a 
frequently asked questions (FAQs) section on our Intelligent Mail Web 
site at ribbs.usps.gov.

Summary

    In May 2009, we will implement the following:
     Updated requirements for Intelligent Mail barcodes and 
POSTNET barcodes, with delivery point routing information required in 
barcodes on automation letters and flats and carrier route letters.
     Two options for using Intelligent Mail barcodes--the basic 
option and the full-service option.
     For full-service implementation, we will require:
     Unique identification in Intelligent Mail barcodes on 
letters and flats.
     Intelligent Mail tray labels, with unique barcodes, used 
on trays and sacks.
     Intelligent Mail container placards, with unique barcodes, 
affixed on the outside of pallets and placed on containers (if the mail 
is containerized).
     Electronic postage statements and documentation (when 
documentation is required).
     Full-service mailers will enjoy the following benefits:
     Address correction information for letters and flats using 
OneCode ACS at no charge (subject to approval by the Governors).
     ``Start-the-clock'' information that will document when 
the Postal Service has taken possession of each mailing.
    In May 2010, we will require the Intelligent Mail barcode on QBRM 
letters and on Permit Reply Mail pieces.
    As part of the annual price adjustment announcement in 2009, we 
will recommend to the Board of Governors that letters and flats 
requiring a barcode and mailed under the full-service option of 
Intelligent Mail pay lower automation prices in the Fall of 2009 than 
pieces mailed under the basic option or with POSTNET barcodes.
    The Postal Service will adopt the following changes to Mailing 
Standards of the United States Postal Service, Domestic Mail Manual 
(DMM), incorporated by reference in the Code of Federal Regulations. 
See 39 CFR 111.1.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

0
Accordingly, 39 CFR part 111 is amended as follows:

PART 111--[AMENDED]

0
1. The authority citation for 39 CFR part 111 continues to read as 
follows:

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


0
2. Revise the following sections of Mailing 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)

* * * * *

200 Commercial Letters and Cards

* * * * *

230 First-Class Mail

233 Prices and Eligibility

* * * * *

[[Page 49341]]

5.0 Additional Eligibility Standards for Automation First-Class Mail 
Letters

5.1 Basic Standards for Automation First-Class Mail Letters

    All pieces in a First-Class Mail automation mailing must:
* * * * *
    [Revise item e of 5.1 as follows:]
    e. Bear an accurate delivery point POSTNET barcode or an 
Intelligent Mail barcode encoded with the correct delivery point 
routing code, matching the delivery address and meeting the standards 
in 202.5.0, and 708.4.0. Mailers must apply the barcode either on the 
piece or on an insert showing through a window.
* * * * *
    [Renumber current 233.5.2 through 233.5.5 as new 233.5.3 through 
233.5.6.]
    [Add a new 233.5.2 as follows:]

5.2 Additional Eligibility Standards for Full-Service Automation First-
Class Mail Letters

    All pieces entered under the full-service automation option 705.22, 
must:
    a. Bear a unique Intelligent Mail barcode.
    b. Be part of a mailing using unique Intelligent Mail tray labels 
on all trays and sacks.
    c. Be part of a mailing using unique Intelligent Mail container 
barcodes on all destination-entry pallets and other containers prepared 
under 705.8.0 or as part of a customer/supplier agreement.
    d. Be part of a mailing using an approved electronic method to 
transmit a postage statement and mailing documentation to the 
PostalOne! system.
* * * * *

234 Postage Payment and Documentation

* * * * *

4.0 Mailing Documentation

* * * * *
    [Renumber current 234.4.4 through 234.4.9 as 234.4.5 through 
234.4.10 and add a new 234.4.4 as follows:]

4.4 Documentation Submission--Full-Service Automation Option

    Mailers entering First-Class Mail pieces under the full-service 
automation option must electronically submit postage statements and 
mailing documentation to the PostalOne! system as described in 
705.22.3.4.
* * * * *

235 Mail Preparation

* * * * *

4.0 Tray Labels

* * * * *

4.9 Barcoded Tray Labels

4.9.1 Basic Standards for Barcoded Tray Labels

    [Revise 4.9.1 by adding a new second sentence as follows:]
    * * * Intelligent Mail tray labels must be used with mailings 
entered under the full-service automation option. * * *
* * * * *

240 Standard Mail

243 Prices and Eligibility

* * * * *

6.0 Additional Eligibility Standards for Enhanced Carrier Route 
Standard Mail Letters

6.1 General Enhanced Carrier Route Standards

* * * * *

6.1.2 Basic Eligibility Standards

    All pieces in an Enhanced Carrier Route or Nonprofit Enhanced 
Carrier Route Standard Mail mailing must:
* * * * *
    [Revise item g of 6.1.2 as follows:]
    g. Meet the requirements for automation compatibility in 201.3.0 
and bear an accurate delivery point POSTNET barcode or Intelligent Mail 
barcode encoded with the correct delivery point routing code matching 
the delivery address and meeting the standards in 202.5.0, and 708.4.0. 
Letters with Intelligent Mail barcodes entered under the full-service 
automation option also must meet the standards in 705.22. Pieces 
prepared with a simplified address format are exempt from this 
requirement.
* * * * *

6.3 Basic Price Enhanced Carrier Route Standards

* * * * *

6.3.2 Basic Price Eligibility

    * * * Basic prices also apply under these conditions:
    [Revise item a of 6.3.2 as follows:]
    a. Basic letter prices apply to each piece that is automation-
compatible according to 201.3.0, and has an accurate delivery point 
POSTNET barcode or Intelligent Mail barcode encoded with the correct 
delivery point routing code matching the delivery address and meeting 
the standards in 202.5.0 and 708.4.0.
* * * * *

6.4 High Density Enhanced Carrier Route Standards

6.4.1 Basic Eligibility Standards for High Density Prices

    [Revise the first sentence of 6.4.1 as follows:]
    High density prices apply to each piece that is automation-
compatible according to 201.3.0, and has an accurate delivery point 
POSTNET barcode or Intelligent Mail barcode encoded with the correct 
delivery point routing code matching the delivery address and meeting 
the standards in 202.5.0, and 708.4.0. * * *
* * * * *

6.5 Saturation ECR Standards

6.5.1 Basic Eligibility Standards for Saturation Prices

    [Revise the first sentence of 6.5.1 as follows:]
    Saturation prices apply to each piece that is automation-compatible 
according to 201.3.0, and has an accurate delivery point POSTNET 
barcode or Intelligent Mail barcode encoded with the correct delivery 
point routing code matching the delivery address and meeting the 
standards in 202.5.0, and 708.4.0. * * *
* * * * *

7.0 Eligibility Standards for Automation Standard Mail

7.1 Basic Eligibility Standards for Automation Standard Mail

    All pieces in a Regular Standard Mail or Nonprofit Standard Mail 
automation mailing must:
* * * * *
    [Revise item e of 7.1 as follows:]
    e. Bear an accurate delivery point POSTNET barcode or Intelligent 
Mail barcode encoded with the correct delivery point routing code, 
matching the delivery address and meeting the standards in 202.5.0, and 
708.4.0. Mailers must apply the barcode either on the piece or on an 
insert showing through a window.
* * * * *
    [Renumber current 243.7.2 through 243.7.6 as new 243.7.3 through 
243.7.7]
    [Add a new 243.7.2 as follows:]

7.2 Additional Eligibility Standards for Full-Service Automation 
Standard Mail Letters

    All pieces entered under the full-service automation option 
according to standards in 705.22 must:
    a. Bear a unique Intelligent Mail barcode.
    b. Be part of a mailing using unique Intelligent Mail tray labels 
on all trays and sacks.

[[Page 49342]]

    c. Be part of a mailing using unique Intelligent Mail container 
barcodes on all destination-entry pallets and other containers prepared 
under 705.8.0 or as part of a customer/supplier agreement.
    d. Be part of a mailing using an approved electronic method to 
transmit a postage statement and mailing documentation to the 
PostalOne! system.
    e. Be scheduled for an appointment through the Facility Access and 
Shipment Tracking (FAST) system when deposited as a DBMC or DSCF drop-
shipment.
* * * * *

244 Postage Payment and Documentation

* * * * *

4.0 Mailing Documentation

* * * * *
    [Renumber current 244.4.4 through 244.4.9 as 244.4.5 through 
244.4.10]
    [Add a new 244.4.4 as follows:]

4.4 Documentation Submission--Full-Service Automation Option

    Mailers entering Standard Mail pieces under the full-service 
automation option must electronically submit postage statements and 
mailing documentation to the PostalOne! system as described in 
705.22.3.4.
* * * * *

245 Mail Preparation

* * * * *

4.0 Tray Labels

* * * * *

4.9 Barcoded Tray Labels

4.9.1 Basic Standards for Barcoded Tray Labels

    * * * Barcoded labels must meet these general standards:
    [Revise 4.9.1 by adding a new item e as follows:]
    e. Intelligent Mail tray labels must be used with mailings entered 
under the full-service automation option.
* * * * *

300 Commercial Flats

330 First-Class Mail

333 Prices and Eligibility

* * * * *

5.0 Additional Eligibility Standards for Automation Price First-Class 
Mail Flats

5.1 Basic Standards for Automation First-Class Mail

    All pieces in a First-Class Mail automation mailing must:
* * * * *
    [Revise item e of 5.1 to require a delivery point barcode as 
follows:]
    e. Bear an accurate delivery point POSTNET barcode or Intelligent 
Mail barcode encoded with the correct delivery point routing code, 
matching the delivery address and meeting the standards in 302.4.0, and 
708.4.0, either on the piece or on an insert showing through a barcode 
window.
* * * * *
    [Renumber current 333.5.2 through 333.5.5 as 333.5.3 through 
333.5.6.]
    [Add a new 333.5.2 as follows:]

5.2 Eligibility Standards for Full-Service Automation First-Class Mail 
Flats

    All pieces entered under the full-service automation option 
according to standards in 705.22 must:
    a. Bear a unique Intelligent Mail barcode.
    b. Be part of a mailing using unique Intelligent Mail tray labels 
on all trays and sacks.
    c. Be part of a mailing using unique Intelligent Mail container 
barcodes on all destination-entry pallets and other containers prepared 
under 705.8.0 or as part of a customer/supplier agreement.
    d. Be part of a mailing using an approved electronic method to 
transmit a postage statement and mailing documentation to the 
PostalOne! system.
* * * * *

334 Postage Payment and Documentation

* * * * *

4.0 Mailing Documentation

* * * * *
    [Renumber current 334.4.4 through 334.4.9 as 334.4.5 through 
334.4.10.]
    [Add a new 334.4.4 to reflect electronic submission standards at 
the full-service automation price as follows:]

4.4 Documentation Submission--Full-Service Automation Option

    Mailers entering First-Class Mail flats under the full-service 
automation option must electronically submit postage statements and 
mailing documentation, including qualification and container reports, 
to the PostalOne! system as described in 705.22.3.4.
* * * * *

335 Mail Preparation

* * * * *

4.0 Tray Labels

* * * * *

4.9 Barcoded Tray Labels

4.9.1 Basic Standards for Barcoded Tray Labels

    * * * Barcoded labels must meet these general standards:
    [Revise 4.9.1 by adding a new item e as follows:]
    e. Intelligent Mail Tray labels must be used with mailings entered 
under the full-service automation option.
* * * * *

340 Standard Mail

343 Prices and Eligibility

* * * * *

7.0 Additional Eligibility Standards for Automation Standard Mail Flats

7.1 Basic Eligibility Standards for Automation Standard Mail

    All pieces in a Regular Standard Mail or Nonprofit Standard Mail 
automation mailing must:
* * * * *
    [Revise item e to require a delivery point barcode as follows:]
    e. Bear an accurate delivery point POSTNET barcode or Intelligent 
Mail barcode encoded with the correct delivery point routing code, 
matching the delivery address and meeting the standards in 302.4.0, and 
708.4.0, either on the piece or on an insert showing through a barcode 
window.
* * * * *
    [Renumber current 343.7.2 through 343.7.4 as 343.7.3 through 
343.7.5.]
    [Add a new 343.7.2 as follows:]

7.2 Eligibility Standards for Full-Service Automation Standard Mail 
Flats

    All pieces entered under the full-service automation option, 
according to standards in 705.22, must:
    a. Bear a unique Intelligent Mail barcode.
    b. Be part of a mailing using unique Intelligent Mail tray labels 
on all trays and sacks.
    c. Be part of a mailing using unique Intelligent Mail container 
barcodes on all destination-entry pallets and other containers prepared 
under 705.8.0 or as part of a customer/supplier agreement.
    d. Be part of a mailing using an approved electronic method to 
transmit a postage statement and mailing documentation to the 
PostalOne! system.
    e. Be scheduled for an appointment through the Facility Access and 
Shipment Tracking (FAST) system when deposited as a DBMC or DSCF 
dropshipment.
* * * * *

[[Page 49343]]

344 Postage Payment and Documentation

* * * * *

4.0 Mailing Documentation

* * * * *
    [Renumber current 344.4.4 through 344.4.9 as 344.4.5 through 
344.4.10.]
    [Add a new 344.4.4 as follows:]

4.4 Documentation Submission--Full-Service Automation Option

    Mailers entering Standard Mail pieces under the full-service 
automation option must electronically submit postage statements and 
mailing documentation, including qualification and container reports, 
to the PostalOne! system as described in 705.22.3.4.
* * * * *

345 Mail Preparation

* * * * *

4.0 Sack and Tray Labels

* * * * *

4.8 Use of Barcoded Sack and Tray Labels

    * * * Barcoded labels must meet these general standards:
    [Revise 4.8 by adding a new item e as follows:]
    e. Intelligent Mail tray labels must be used on all trays and sacks 
for mailings entered under the full-service automation option.
* * * * *

360 Bound Printed Matter

363 Prices and Eligibility

1.0 Prices and Fees for Bound Printed Matter

1.1 Nonpresorted Bound Printed Matter

* * * * *

1.1.4 Barcoded Discount--Flats

    [Revise 363.1.1.4 to require BPM claiming a barcode discount price 
to be automation-compatible and bear a delivery point barcode as 
follows:]
    The barcoded discount applies only to BPM flat-size pieces that 
meet the requirements for automation compatibility in 301.3.0 and bear 
a delivery point POSTNET barcode or Intelligent Mail barcode encoded 
with the correct delivery point routing code, matching the delivery 
address and meeting the standards in 302.4.0 and 708.4.0. The pieces 
must be part of a nonpresorted mailing of 50 or more flat-size pieces.
* * * * *

4.0 Price Eligibility for Bound Printed Matter Flats

4.1 Price Eligibility

    * * * Price categories are as follows:
* * * * *
    [Revise item d of 363.4.1 to require BPM claiming a barcode 
discount price to be automation-compatible and bear a delivery point 
barcode as follows:]
    d. Barcoded Discount--Flats. The barcoded discount applies only to 
BPM flat-size pieces that meet the requirements for automation 
compatibility in 301.3.0 and bear an accurate delivery point POSTNET 
barcode or Intelligent Mail barcode encoded with the correct delivery 
point routing code, matching the delivery address and meeting the 
standards in 302.4.0 and 708.4.0. The pieces must be part of a 
nonpresorted mailing of 50 or more flat-size pieces or part of a 
presort mailing of at least 300 BPM flat-size pieces prepared under 
705.8.0, and 365.7.0. The barcoded discount is not available for flat-
size pieces mailed at Presorted DDU prices or carrier route prices.
* * * * *

6.0 Additional Eligibility Standards for Barcoded Bound Printed Matter 
Flats

6.1 Basic Eligibility Standards for Barcoded Bound Printed Matter

    [Revise 6.1 by revising the first sentence as follows:]
    The barcode discount applies only to BPM flat-size pieces that bear 
a delivery point POSTNET barcode or an Intelligent Mail barcode encoded 
with the correct delivery point routing code, matching the delivery 
address and meeting the standards in 302.4.0 and 708.4.0. * * *
    [Renumber current 363.6.2 through 363.6.3 as 363.6.3 through 
363.6.4.]
    [Add a new 363.6.2 as follows:]

6.2 Eligibility Standards for Full-Service Automation Bound Printed 
Matter Flats

    All pieces entered under the full-service automation option, 
according to standards in 705.22, must:
    a. Bear a unique Intelligent Mail barcode.
    b. Be part of a mailing using unique Intelligent Mail tray labels 
on all trays and sacks.
    c. Be part of a mailing using unique Intelligent Mail container 
barcodes on all destination-entry pallets and other containers prepared 
under 705.8.0 or as part of a customer/supplier agreement.
    d. Be part of a mailing using an approved electronic method to 
transmit a postage statement and mailing documentation to the 
PostalOne! system.
    e. Be scheduled for an appointment through the Facility Access and 
Shipment Tracking (FAST) system when deposited as a DBMC or DSCF 
dropshipment.
* * * * *

364 Postage Payment and Documentation

* * * * *

2.0 Mailing Documentation

* * * * *
    [Renumber current 364.2.4 through 364.2.9 as 364.2.5 through 
364.2.10.]
    [Add a new 364.2.4 as follows:]

2.4 Documentation Submission--Full-Service Automation Option

    Mailers entering BPM pieces under the full-service automation 
option must electronically submit postage statements and mailing 
documentation to the PostalOne! system as described in 705.22.3.4.
* * * * *

365 Mail Preparation

* * * * *

4.0 Sack Labels

* * * * *

4.9 Basic Standards for Barcoded Sack Labels

    * * * Barcoded labels must meet these general standards:
    [Revise 4.9 by adding a new item e as follows:]
    e. Intelligent Mail tray labels (see 708.6.0) must be used on sacks 
for mailings entered under the full-service automation option.
* * * * *

500 Additional Services

* * * * *

507 Mailer Services

* * * * *

9.0 Business Reply Mail (BRM)

* * * * *
    [Revise the title and text of 9.9 to allow Intelligent Mail 
barcodes on letter-size and flat-size BRM, except QBRM letters, to omit 
a Mailer ID as follows:]

9.9 Additional Standards for Letter-Size and Flat-Size BRM

    In addition to the format standards in 9.8, letter-size BRM 
enclosed in automation mailings and all QBRM must be barcoded with a 
ZIP+4 POSTNET barcode or an Intelligent Mail barcode. Intelligent Mail 
barcodes on all

[[Page 49344]]

BRM must contain the barcode ID, service type ID, and correct ZIP+4 
routing code, as specified under 708.4.3. QBRM letters must bear 
Intelligent Mail barcodes with a USPS-assigned Mailer ID, effective May 
2010. Other BRM letters and flats may be barcoded at the permit 
holder's option. Barcoded BRM must meet the barcode standards in 
708.4.0, the envelope basis weight standards in 9.7.1, all other 
mailpiece design standards in 201.3.0 (including thickness) or 301.3.0, 
and these standards:
* * * * *

10.0 Permit Reply Mail

* * * * *

10.3 Format Elements

* * * * *

10.3.6 Delivery Address

    [Revise 10.3.6 as follows:]
    The complete address (including the permit holder's name, delivery 
address, city, state, and ZIP + 4 code) must be printed on the piece. 
PRM pieces must bear a delivery point POSTNET (until May 2010) or 
Intelligent Mail barcode. Effective May 2010, PRM pieces must bear 
Intelligent Mail barcodes (under 708.4.3) with delivery point routing 
codes and USPS-assigned Mailer IDs.

700 Special Standards

* * * * *

705 Advanced Preparation and Special Postage Payment Systems

* * * * *

8.0 Preparing Pallets

* * * * *
    [Re-title 705.8.6 as follows:]

8.6 Pallet Placards

8.6.1 Placement

    [Revise 8.6.1 by adding a new second sentence as follows]:
    * * * Pallets prepared through plant-load or drop-shipment 
agreements must be placed on transportation so that a pallet placard on 
each pallet faces toward the rear of the vehicle.

8.6.2 Specifications

    [Revise 8.6.2 to reference Intelligent Mail container barcoded 
pallet placards as follows:]
    Pallet placards must be pink for Periodicals mailpieces or white 
for Standard Mail, Package Services, and Parcel Select. Pallet placards 
must measure at least 8 inches by 11 inches, except that pallet or 
other USPS container placards bearing Intelligent Mail container 
barcodes may measure 4 inches by 7 inches when prepared under 
708.6.6.6. Placards bearing Intelligent Mail container barcodes must 
meet the standards for Intelligent Mail container placards in DMM 
708.6.6 and at ribbs.usps.gov.
* * * * *
    [Add new 705.22 to describe the conditions for the full-service 
automation option as follows:]

22.0 Full-Service Automation Option

22.1 Description

    Access to full-service automation option benefits requires the use 
of Intelligent Mail barcodes to uniquely identify each mailpiece. In 
addition to the standards described in 22.2, all pieces entered under 
the full-service option must individually meet the eligibility 
requirements for automation prices according to their class and shape. 
Full-service automation mailings require Intelligent Mail barcodes on 
mailpieces; Intelligent Mail tray labels on trays and sacks; and 
Intelligent Mail container placards on pallets or similar containers 
(when created). Additional requirements include the use of an approved 
electronic method to transmit postage statements and mailing 
documentation to the USPS (describing how mailpieces are linked to 
trays or sacks, and containers, if applicable), and scheduling dropship 
appointments through the Facility Access and Shipment System (FAST) for 
destination bulk mail center, destination area distribution center, and 
destination sectional center facility dropshipments.

22.1.1 Basic Option Pieces Included in Full-Service Automation Mailings

    Full-service automation option mailings may include pieces prepared 
under the basic automation option, but the basic automation option 
pieces will not be used to meet the eligibility standards for the full-
service option and will not receive full-service benefits. Basic 
automation option pieces bear Intelligent Mail barcodes (under 708.4.0) 
and meet all eligibility requirements for automation prices.

22.1.2 POSTNET Pieces Included in Full-Service Automation Mailings

    Full-service automation option mailings may include automation-
compatible pieces bearing POSTNET barcodes. These pieces may not be 
used to meet the eligibility standards for the full-service option and 
will not receive full-service benefits.

22.2 Eligibility Standards

    First-Class Mail, Periodicals, and Standard Mail letters and flats 
and Bound Printed Matter flats meeting eligibility requirements for 
automation prices, and Standard Mail letters meeting eligibility 
requirements for enhanced carrier route letter prices are eligible for 
the full-service automation option. All pieces entered under the full-
service automation option must:
    a. Bear a unique Intelligent Mail barcode.
    b. Be part of a mailing using unique Intelligent Mail tray labels 
on all trays and sacks.
    c. Be part of a mailing using unique Intelligent Mail container 
barcodes on all destination-entry pallets and other containers prepared 
under 705.8.0 or as part of a customer/supplier agreement. A customer/
supplier agreement is authorized with a service agreement signed by the 
mailer, the USPS District Manager, Customer Service, and the USPS 
Processing and Distribution Center manager. The service agreement 
contains provisions regarding mailer and USPS responsibilities.
    d. Be part of a mailing using an approved electronic method to 
transmit a postage statement and mailing documentation to the 
PostalOne! system.
    e. Be scheduled for an appointment through the Facility Access and 
Shipment Tracking (FAST) system when deposited as a DBMC, DADC, or DSCF 
drop-shipment.

22.3 Preparation

22.3.1 Intelligent Mail Barcodes

    Mailers must include an Intelligent Mail barcode on each mailpiece 
as described in 708.4 that accurately encodes the following fields:
    a. Barcode ID.
    b. Service Type ID.
    c. Mailer ID. At the option of the mail owner, the Mailer ID field 
can be populated with the Mailer ID of the mail owner or mail preparer.
    d. Serial number. Except for mail prepared under 22.4.3, each 
mailpiece must be encoded with a unique serial number. Mailers must 
ensure that these numbers remain unique for a period of at least 45 
days. Serial numbers associated to an individual Mailer ID must not be 
duplicated within this 45-day period, regardless of the entry location.
    e. Delivery point routing code. All Intelligent Mail barcodes must 
include an accurate delivery point routing code.

22.3.2 Intelligent Mail Tray Labels

    All trays and sacks must contain accurately encoded Intelligent 
Mail tray labels as described in 708.6.5. Mailing documentation, when 
required, must associate each mailpiece to a

[[Page 49345]]

corresponding tray or sack, if applicable, as described in 22.3.4. Each 
tray or sack must be encoded with a unique serial number. Tray or sack 
serial numbers associated to an individual Mailer ID cannot be 
duplicated within a 45-day period, regardless of the acceptance 
location.

22.3.3 Intelligent Mail Container Placards

    All required pallets and similar containers (such as all-purpose 
containers, hampers, and gaylords) and all containers prepared under 
705.8.0 in full-service mailings must display container placards that 
include accurately encoded Intelligent Mail container barcodes as 
described in 708.6.6. Mailing documentation, when required, must 
associate each mailpiece (and tray or sack, if applicable) to a 
corresponding container as described in 22.3.4, unless otherwise 
authorized by the USPS. Each container must be encoded with a unique 
serial number. Container barcodes must not be duplicated within a 45-
day period, regardless of the acceptance location.

22.3.4 Electronic Documentation

    Mailers must electronically submit postage statements and mailing 
documentation (when required) to the PostalOne! system. Unless 
otherwise authorized, documentation must describe how each mailpiece is 
linked to a uniquely identified tray or sack, if applicable, and how 
each mailpiece and tray or sack is linked to a uniquely identified 
container (if applicable). The documentation must also meet the 
requirements in A Guide to Intelligent Mail for Letters and Flats 
(available at ribbs.usps.gov/). Mailers must transmit postage 
statements and mailing documentation to the PostalOne! system using 
Mail.dat, Mail.XML, or Postal Wizard (see 22.4.3).

22.3.5 Scheduling Appointments

    Mailers must schedule appointments using the Facility Access and 
Shipment Tracking (FAST) system for dropship mailings (except for 
mailings entered at a DDU) or as required in a customer/supplier 
agreement. Mailers may schedule appointments online using the FAST Web 
site at fast.usps.com or they may submit appointment requests through 
PostalOne! FAST Web Services at www.uspspostalone.com, using Mail.XML 
or Mail.XML with Mail.dat.

22.3.6 Preparation of Containers

    Mailings under the full-service automation option may be 
containerized, when volume warrants, in uniquely identified containers 
by palletizing bundles, sacks, or trays under standards in 705.8. 
Mailers required to containerize must make all separations when the 
volume for any presort level meets a required sortation level, as 
described in 705.8.5.2 or in the customer/supplier agreement. Full-
service mailings containerized under 705.8.0 or as part of a customer/
supplier agreement must have Intelligent Mail container placards (under 
708.6.6) on the containers.

22.4 Additional Standards

22.4.1 Induction Data

    Mailers presenting mailings under the full-service automation 
option will receive mail induction information (start-the-clock data 
corresponding to the date and time when the USPS receives the mailing) 
at no additional charge.

22.4.2 Address Correction Notices

    Mailers presenting mailpieces that qualify for the full-service 
option will receive automated address correction notices at no 
additional charge when the pieces are encoded with Intelligent Mail 
barcodes with ``Address Service Requested'' or ``Change Service 
Requested'' under standards for OneCode ACS and under the conditions 
noted below.
    a. Mailpieces must include the appropriate service type ID in the 
Intelligent Mail barcode to match the ancillary service requested. See 
507.1.5 for mail disposition and address correction combinations by 
class of mail.
    b. A complementary ancillary service request option also must be 
recorded in the mailer's Address Change Service (ACS) mailer profile. 
See 507.4.2 for more information about ACS. Address correction notices 
for mailpieces in full-service mailings are available for:
    1. First-Class Mail letters and flats (printed endorsement not 
required for letters).
    2. Periodicals letters and flats (printed endorsement not 
required).
    3. Standard Mail letters and flats and Bound Printed Matter (BPM) 
flats. Standard Mail and BPM pieces must include a printed on-piece 
endorsement in addition to encoding the ancillary service request into 
the Intelligent Mail barcode. See 507.4.2 for additional standards.
    c. Mailers must use the address correction information provided by 
the USPS to update their address records in order to receive notices 
without paying additional fees.

22.4.3 Special Standards--Small Volume Mailings

    For mailings of fewer than 10,000 pieces, and postage is affixed to 
each piece at the correct price or each piece is of identical weight 
and the mailpieces are separated by price, the serial number field of 
each Intelligent Mail barcode can be populated with a mailing serial 
number that is unique to the mailing but common to all pieces in the 
mailing. This unique mailing serial number must not be reused for a 
period of 45 days from the date of mailing. These mailings are not 
required to submit electronic documentation for full-service, only an 
electronic postage statement. Unique mailing serial numbers must be 
populated in the Postal Wizard entry screen field or in the Mail.XML 
messages. Mailers must populate the serial number field of all 
Intelligent Mail tray or sack labels, and Intelligent Mail container 
barcodes (when mailings are containerized) with the unique mailing 
serial number.
* * * * *

707 Periodicals

* * * * *

14.0 Barcoded (Automation) Price Eligibility

14.1 Basic Standards

14.1.1 General

    All pieces in a Periodicals barcoded (automation) price mailing 
must:
    [Revise item c of 14.1.1 to describe new standards for barcoded 
Periodicals mailings as follows:]
    c. Bear an accurate delivery point POSTNET barcode or an 
Intelligent Mail barcode encoded with the delivery point routing code, 
matching the delivery address and meeting the standards in 202.5.0 (for 
letters), 302.4.0 (for flats), and 708.4.0. Mailers must apply the 
barcode either on the piece or on an insert showing through a window.
* * * * *
    [Renumber current 14.2 through 14.4 as 14.3 through 14.5 and add 
new 14.2 as follows:]

14.2 Eligibility Standards for Full-Service Automation Periodicals

    All pieces entered under the full-service automation option, 
according to standards in 705.22, must:
    a. Bear a unique Intelligent Mail barcode.
    b. Be part of a mailing using unique Intelligent Mail tray labels 
on all trays and sacks.
    c. Be part of a mailing using unique Intelligent Mail container 
barcodes on all destination-entry pallets and other

[[Page 49346]]

containers prepared under 705.8.0 or as part of a customer/supplier 
agreement.
    d. Be part of a mailing using an approved electronic method to 
transmit a postage statement and mailing documentation to the 
PostalOne! system.
    e. Be scheduled for an appointment through the Facility Access and 
Shipment Tracking (FAST) system when deposited as a DBMC, DADC, or DSCF 
dropshipment.
* * * * *

17.0 Documentation

* * * * *

17.3 Basic Standards for Documentation

* * * * *

17.3.3 Presenting Documentation

    [Revise 17.3.3 by adding a new third sentence as follows:]
    * * * Mailers entering Periodicals pieces under the full-service 
barcoded (automation) option must electronically submit postage 
statements and mailing documentation to the PostalOne! system as 
described in 705.21.3.4.
* * * * *

21.0 Sack and Tray Labels

* * * * *

21.4 Use of Barcoded Sack and Tray Labels

    * * * Barcoded labels must meet these general standards:
    [Revise 21.4 by adding a new item e as follows:]
    e. Intelligent Mail tray labels must be used on all trays and sacks 
for mailings entered under the full-service automation option.
* * * * *

708 Technical Specifications

* * * * *

4.0 Standards for POSTNET and Intelligent Mail Barcodes

* * * * *

4.3 Intelligent Mail Barcodes

4.3.1 Definition

    * * * Mailers may use Intelligent Mail barcodes as follows:
    [Revise the first sentence in item b to require delivery point 
routing codes in Intelligent Mail barcode on automation flats as 
follows:]
    b. When used on flat-size pieces for automation-price eligibility 
purposes, the barcode must contain a delivery point routing code that 
accurately matches the delivery address. * * *
    [Revise item c of 4.3.1 to exempt certain reply mailpieces from the 
Mailer ID requirement by adding a new first sentence and revising the 
second sentence as follows:]
    c. Reply mail pieces, except QBRM and Permit Reply Mail (PRM) 
pieces, using origin Confirm Service do not require a Mailer ID to be 
encoded into the Mailer Identifier field. All other mailpieces, 
including QBRM letters and PRM pieces as of May 2010, bearing 
Intelligent Mail barcodes must include the Mailer ID in the Mailer 
Identifier field. * * *
* * * * *
    [Revise the title of 708.6 to reflect new container placard options 
as follows:]

6.0 Standards for Barcoded Tray Labels, Sack Labels, and Container 
Placards

    [Renumber current 6.1 through 6.3 as new 6.2 through 6.4.]
    [Add new 6.1 as follows:]

6.1 General

6.1.1 Tray and Sack Labels

    Intelligent Mail tray labels (see 6.5), barcoded 2-inch tray and 
sack labels, and barcoded 1-inch sack labels are the USPS-approved 
methods to encode routing, content, origin, and mailer information on 
trays and sacks. Intelligent Mail tray labels are designed for use with 
Intelligent Mail barcoded mail and have the capacity to allow tracking 
through USPS systems, providing key information to mailers and the 
USPS.

6.1.2 Container Placards

    Mailer-generated container placards bearing Intelligent Mail 
container barcodes identify the mail owner or agent and uniquely 
identify the unit load (pallet, container, or rolling stock). 
Intelligent Mail container placards are designed to be used with 
Intelligent Mail barcoded mail and Intelligent Mail tray labels.
    [Revise the title of renumbered 6.2 as follows:]

6.2. Specifications for Barcoded Tray and Sack Labels

* * * * *
    [Revise title of renumbered Exhibit 6.2.1 as follows:]

Exhibit 6.2.1 Required Barcoded Tray and Sack Labels

* * * * *
    [Add new 6.5 as follows:]

6.5 Intelligent Mail Tray Label

6.5.1 Definition

    Intelligent Mail tray labels are 2-inch labels used on all trays 
and sacks to uniquely identify each tray and sack in addition to each 
mailer or mail preparer. See Exhibit 6.5.1 for an example of the 
Intelligent Mail tray label. Detailed specifications for Intelligent 
Mail tray labels and barcode formats are available under the 
Intelligent Mail barcodes link at ribbs.usps.gov.

Exhibit 6.5.1 Intelligent Mail Tray Label

    [Exhibit located on the Postal Explorer Web site at pe.usps.com 
under Federal Register notices].

6.5.2 Intelligent Mail Tray Label Format

    The core data elements for the Intelligent Mail tray label are as 
follows:
    a. Printer Line.
    b. Tray or Sack Destination (Postal Destination Name).
    c. Content Identifier Number (CIN) description (tray or sack 
content).
    d. Office of mailing or mailer information.
    e. Destination ZIP Code (the ZIP Code of the trays' or sacks' final 
destination).
    f. Carrier Route information.
    g. Mailer ID (unique identifier of the mailer).
    h. 24-digit, ISS Code 128 subset C barcode numeric line.
    i. Mailer's Area (set aside for mailer-generated human-readable 
information).

6.5.3 Barcode Format

    The barcode format that a mailer uses depends on the Mailer ID 
assigned by the USPS. Upon request by the mailer, the USPS assigns a 6-
digit or 9-digit Mailer ID based on the mailer's mail volume. 
Intelligent Mail tray barcodes contain the following elements:
    a. Destination ZIP Code.
    b. Content Identifier Number (CIN), as listed in Exhibit 6.2.4.
    c. Processing Code, identifying the system or facility generating 
the label.
    d. Mailer ID.
    e. Serial Number, a unique number assigned to each tray or sack.
    f. Label Type, a default digit.

6.5.4 Unique Barcode Requirement

    The Intelligent Mail tray barcode encodes a unique ID for each tray 
and sack. Mailers must ensure that serial numbers in barcodes remain 
unique for 45 days.

6.5.5 Quality Assurance Provisions

    Mailers printing Intelligent Mail tray labels are responsible for 
the inspection and testing of the labels prior to submission to USPS 
and for maintaining the overall quality of the labels they produce. It 
is recommended that inspection and testing of Intelligent Mail tray 
labels be performed

[[Page 49347]]

periodically. Mailers and label vendors are encouraged to submit 
samples to the National Customer Service Center (NCSC) in Memphis for 
certification (see 608.8.0 for address).
    [Add new 6.6 as follows:]

6.6 Intelligent Mail Container Placards (Labels)

6.6.1 Definition

    Mailer-generated container placards bearing Intelligent Mail 
container barcodes can be used to identify all pallets and other 
rolling stock, such as all-purpose containers. Intelligent Mail 
container barcodes uniquely identify each container and may be scanned 
at induction points. Detailed specifications for Intelligent Mail 
container barcodes and placards are available under the Intelligent 
Mail barcodes link at ribbs.usps.gov.

6.6.2 Intelligent Mail Container Placard Configurations

    Intelligent Mail container placards can be produced in two 
configurations:
    a. Self-adhesive placard measuring at least 8 inches by 11 inches. 
Placards must be affixed to the outside of any shrinkwrap or plastic by 
a self-adhesive or other adhesive means that will not obscure any 
required element of the placard, and remain secure throughout USPS 
processing. See 6.6.3 for specifications.
    b. Optional self-adhesive placard measuring at least 4 inches by 7 
inches. Placards also may be prepared in the alternate format (see 
6.6.6) when affixed to the outside of any shrinkwrap or plastic by a 
self-adhesive or other adhesive means that will not obscure any 
required element of the placard and remain secure throughout USPS 
processing. This optional configuration does not accommodate a ``mailer 
area,'' such as the one supported by the larger configuration in 6.6.3. 
Mailers wishing to include their own information in a defined ``mailer 
area'' of the placard must use a placard with a minimum size of 8 
inches by 11 inches under 6.6.3.

6.6.3 Intelligent Mail Container Placard Format

    In addition to the general requirements for pallet placards in 
705.8.6, Intelligent Mail container placards (see Exhibit 6.6.3) must 
retain the top portion of the placard for USPS-required elements. The 
USPS banner, identification bars, and human-readable text are required 
elements related to the Intelligent Mail container barcode and will 
serve as a guide to distinguish the barcode from the other information 
on the container placard. Components and their required elements 
include:
    a. USPS Banner. ``USPS SCAN REQUIRED'' must be printed in all 
uppercase letters centered above the barcode and embedded within the 
upper Identification bar. Clear zone and font size are as follows:
    1. A clear zone of at least 0.125 inch, but no more than 0.5 inch, 
must be maintained between the bottom edge of the text and the top of 
the barcode.
    2. The banner must be printed in a boldface sans-serif font of at 
least 14-point type.
    b. Identification Bars. Horizontal black bars of at least 0.10 inch 
thick must be printed above and below the barcode. At a minimum, the 
bars must extend the length of the barcode. Clear zone and other 
requirements are as follows:
    1. The upper bar must be printed at least 0.125 inch above the top 
edge of the barcode.
    2. The upper bar must have a void in the middle sufficient to 
insert the USPS banner without any element being obscured.
    3. The lower bar must be printed at least 0.125 inch below the 
human-readable representation of the barcode string.
    c. Human-Readable Representation of Barcode Data. The human-
readable representation of barcode data (text) must be printed in a 
boldface sans-serif font of at least 12-point type. The text must not 
exceed the length of the barcode. To enhance readability, the text must 
be or separated by data field. Two blank character spaces must be left 
between each field. The text must be centered at least 0.125 inch, but 
no more than 0.25 inch, below the barcode.
    d. Barcode Location. The barcode, along with the corresponding USPS 
banner and identification bars, must be printed on the front side of 
the pallet placard. When the identification bars extend beyond the 
length of the barcode, the barcode must be horizontally centered.
    e. Minimum size. The minimum size of this placard is 8 inches high 
by 11 inches long. See additional specifications at ribbs.usps.gov 
under the Intelligent Mail link. Mailers using placards larger than 
this minimum size must ensure the barcode conforms to the published 
specification and the human-readable content is provided as illustrated 
in Exhibit 6.6.3 and as published on the RIBBS Web site.

Exhibit 6.6.3 Intelligent Mail Container Placard

    [Exhibit located on the Postal Explorer Web site at pe.usps.com 
under Federal Register notices].

6.6.4 Barcode Format

    Intelligent Mail container barcodes are 21 characters in length and 
contain a USPS-assigned Mailer ID. The format depends on the Mailer ID 
assigned by the USPS. Intelligent Mail container barcodes contain the 
following elements:
    a. Application Identifier, identifying the source of the barcode.
    b. Type Indicator, identifying internal or external label 
generation.
    c. Mailer ID.
    d. Serial Number, a unique number assigned to each container.

6.6.5 Placard Requirements

    Mailers using container placards bearing Intelligent Mail container 
barcodes must:
    a. Place two placards on pallets, one on each adjacent side, on the 
outside of shrinkwrap or plastic. Placards must be affixed by self-
adhesive or other adhesive means that will not obscure any required 
element of the placard, and remain secure throughout USPS processing.
    b. Place one label in the designated area on other USPS containers.

6.6.6 Optional Placard Format

    Mailers may prepare pallet and container placards bearing 
Intelligent Mail container barcodes (see Exhibit 6.6.6) in a smaller 
alternate format when affixed to the outside of any shrinkwrap or 
plastic as follows:
    a. Placards must include the required elements described in 
705.8.6. Mailers wishing to include information in a defined ``mailer 
area'' must use the larger size placard specified in 6.6.3.
    b. Placards must be securely affixed on two adjacent sides on the 
outside of pallets and may measure no less than 4 inches high by 7 
inches long.
    c. Placards containing Intelligent Mail container barcodes must 
meet the specifications for placards located under the Intelligent Mail 
barcodes link at ribbs.usps.gov.

Exhibit 6.6.6 Intelligent Mail Container Placard--Optional Format 
Without Mailer Area

    [Exhibit located on the Postal Explorer Web site at pe.usps.com]

6.6.7 Unique Barcode Requirement

    The Intelligent Mail container barcode encodes a unique ID for each 
container. Mailers must ensure that serial numbers in barcodes remain 
unique for 45 days.

6.6.8 Quality Assurance Provisions

    Mailers printing Intelligent Mail container placards are 
responsible for the inspection and testing of the

[[Page 49348]]

placards prior to submission to the USPS and for maintaining the 
overall quality of the placards they produce. It is recommended that 
inspection and testing of Intelligent Mail container placards be 
performed periodically. Mailers are encouraged to work with their local 
Mailpiece Design Analyst to validate the accuracy and quality of their 
placards.
* * * * *

Neva R. Watson,
Attorney, Legislative.
[FR Doc. E8-19339 Filed 8-20-08; 8:45 am]
BILLING CODE 7710-12-P