705 Advanced Preparation and Special Postage Payment Systems

1.0 Customized MarketMail

1.1 Basic Standards

1.1.1 General

Customized MarketMail (CMM) is an option for mailing nonrectangular and irregular-shaped Regular Standard Mail and Nonprofit Standard Mail pieces if the pieces weigh 3.3 ounces or less and meet the physical characteristics and the dimensional requirements in 1.1.3 and the mail preparation standards in 1.4. Other Regular and Nonprofit Standard Mail pieces measuring 3/4 inch thick or less and meeting the applicable standards in 1.0 may be entered as CMM at the mailer's option. CMM must be entered directly at a destination delivery unit (DDU).

1.1.2 Eligibility Standards

All pieces in a CMM mailing must:

a. Meet the basic standards for Standard Mail in 243.2.0 through 243.4.0 in Rates and Eligibility and, for Nonprofit Standard Mail, the additional standards in 703.1.0.

b. Be part of a single mailing of at least 200 addressed pieces. All pieces must be identical in size, shape, and weight unless excepted by standard under an approved postage payment system.

c. Bear a complete delivery address using the general addressing formats in 602.1.0 or the exceptional or occupant address formats in 602.3.0, Use of Alternative Addressing, with the correct ZIP Code or ZIP+4 code. Each piece also must bear a carrier release endorsement as specified in 508.1.0, Recipient Options. These additional addressing standards apply:

1. Detached address labels (DALs) under 602.4.0 are not permitted.

2. Ancillary service endorsements under 507.1.0, Treatment of Mail, are not permitted.

3. The ZIP Code accuracy standard in 243.3.8 must be met.

4. At the mailer's option, a carrier route information line under 708.6.0 may be added. If this option is used, a carrier route code must be applied to every piece in the mailing and must meet the carrier route accuracy standard in 243.6.2.

d. Be marked, sorted, and documented as specified in 1.4.

e. Be entered at the destination delivery unit appropriate to the delivery address on the corresponding mail, as a mailing subject to the applicable requirements in 243.2.0 through 243.4.0 in Rates and Eligibility and 246.2.0 through 246.5.0 in Enter and Deposit, as a mailing using Express Mail or Priority Mail drop shipment under 16.4 and 16.5, or as a plant-verified drop shipment (PVDS) mailing under 15.0. Minimum volumes per destination are not required.

1.1.3 Physical Standards

Mailpieces prepared as Customized MarketMail (CMM) under 1.0 must meet these additional standards and physical characteristics:

a. The material used for constructing the pieces must be free of sharp edges, protrusions, and other design elements that could cause harm or injury to USPS personnel handling these pieces.

b. The dimensions of the pieces must not be smaller than the minimum dimensions for letter-size mail in 201 or greater than the maximum dimensions for flat-size mail in 301. Length and height are defined as follows:

1. The length and the axis of length are determined by drawing a straight line between the two outer points most distant from each other.

2. The height is determined by drawing perpendicular lines to the points that are the greatest distance above and below the axis of length. The sum of these two lines defines the height.

c. The maximum weight may not exceed 3.3 ounces.

d. Pieces may be rectangular or nonrectangular, may be uniform or nonuniform in thickness, and may include die cuts, holes, and voids.

e. Pieces must be flexible enough to fit inside a minimum-size mail receptacle measuring 4-7/8 inches wide, 14-7/8 inches high, and 5-7/8 inches long (deep).

f. Design approval by the district business mail entry manager is not required, but it is recommended.

1.2 Rates

Each piece in a CMM mailing is subject to the Presorted Regular or Nonprofit Standard Mail nondestination entry basic nonletter rate plus the residual shape surcharge. CMM pieces are not eligible for any discount including the parcel barcode discount in 443.5.5. CMM pieces are not subject to the nonmachinable surcharge for letters.

1.3 Extra Services

CMM is not eligible for any extra service.

1.4 Preparation Standards

1.4.1 All Mailings

All mailings and all pieces in each mailing prepared as Customized MarketMail (CMM) are subject to specific preparation standards in 1.4 and to these general standards:

a. All pieces must meet the standards for basic eligibility in 243.2.0 through 243.4.0 in Rates and Eligibility and specific eligibility in 246.2.0 through 246.5.0 in Enter and Deposit. Nonprofit Standard Mail pieces must meet the additional eligibility standards in 703.1.0.

b. CMM pieces must not be part of a mailing containing any other type of Standard Mail pieces.

c. Each mailing must meet the applicable standards for mail preparation in 245.1.0 and 245.2.0 and the following:

1. Subject to the marking standards in 202, Regular Standard Mail pieces must be marked "Presorted Standard" (or "PRSRT STD") and Nonprofit Standard Mail pieces must be marked "Nonprofit Organization" (or "Nonprofit Org." or "Nonprofit"). All pieces must also be marked "Customized MarketMail," "CUST MKTMAIL," or "CMM."

2. At the mailer's option, a carrier route information line under 708.6.0 may be added. If this option is used, a carrier route code must be applied to every piece in the mailing and must be applied using CASS-certified software and the current USPS Carrier Route File scheme, printed Carrier Route Files, or another AIS product containing carrier route information, subject to 509.1.0, Address Information System Products, and 708.3.0, Coding Accuracy Support System (CASS). Carrier route information must be updated within 90 days before the mailing date.

d. Pieces are subject to the rate eligibility specified in 1.0, Customized MarketMail.

1.4.2 Required Endorsement

Any matter mailed as Customized MarketMail must bear the endorsement "Carrier—Leave If No Response" placed directly below the return address. If any other endorsement is used, the carrier route release endorsement must be separated by the equivalent of one blank line of the type size used.

1.4.3 Postage

CMM is subject to the same options of postage payment (precanceled stamps, metered postage, or permit imprint) for Standard Mail pieces as permitted under 244, Postage Payment and Documentation.

1.4.4 Documentation

A complete, signed postage statement, using the correct USPS form or an approved facsimile with the residual shape surcharge, must accompany each mailing. The mailer must also provide an extra copy of the postage statement and a sample of the CMM mailpiece. The sample and the copy postage statement are then forwarded by the USPS to the PCSC (see 608.8.4 for address). Mailings of nonidentical-weight pieces or mailings using more than three different types of containers must also be supported by standardized documentation meeting the standards in 708.1.0. Documentation for nonidentical-weight pieces is not required if the correct rate is affixed to each piece.

1.4.5 Required Bundling

Bundling is required before sacking, traying, or filling other types of mailing containers. A bundle must be prepared when two or more addressed pieces are destined to the same 5-digit ZIP Code or to the same carrier route if the optional carrier route presort level is used. The maximum weight for any bundle is 20 pounds. Pieces of irregular thickness must be counterstacked as provided in 245.2.0. At the mailer's option, facing slips, optional endorsement lines, or pressure-sensitive bundle labels may be used on bundles. CMM pieces prepared in optional carrier route bundles are subject to 243.6.0 but are not required to meet any minimum number of pieces per route.

1.4.6 Bundling and Labeling

Preparation sequence, bundle size, and labeling:

a. Carrier route (optional); no minimum; and carrier route information line (required).

b. 5-digit (required); no minimum; and facing slip (optional), red Label 5 (optional), or optional endorsement line (OEL).

1.4.7 Required Containerizing

The following standards apply to containerizing CMM bundles:

a. Bundles and single pieces to a destination must be prepared in 5-digit containers or optionally in 5-digit scheme under L606, carrier route, or 5-digit carrier routes containers, with no minimum volume (piece or weight) required for an individual container.

b. Bundles for PVDS drop shipment mailings or non-PVDS mailings under 246.2.0 through 246.5.0 must be placed in letter trays, flat trays, or sacks. Bundles in Priority Mail and Express Mail drop shipments under 16.4 may be placed in USPS-supplied or mailer-supplied mailing containers.

c. The container size must be appropriate to the dimensions of the pieces, and the number of containers must be appropriate to the volume of pieces in the mailing.

d. If more than three types of containers are used, the mailing must be prepared using an approved manifest mailing system (MMS), unless the manager, Business Mailer Support (BMS) approves another postage payment system. Each mailing presented in mailer-supplied containers must include sample containers for tare weight calculations.

1.4.8 Containerizing and Labeling

Containers are prepared and labeled as follows:

a. PVDS drop shipments and non-PVDS mailings under 246.2.0 through 246.5.0 in Enter and Deposit must be prepared in 5-digit trays or sacks, or as an option, in 5-digit scheme (under L606, Column B), carrier route, or 5-digit carrier routes trays or sacks, labeled as follows:

1. Line 1: For 5-digit, carrier route, 5-digit carrier routes, city, state, and 5-digit ZIP Code on mail; for 5-digit scheme (optional), L606.

2. Line 2: "DEL LTR STD CMM MAN" (for letter trays); "DEL FLTS STD CMM MAN" (for flat trays); "DEL STD CMM MAN" (for sacks).

3. Line 3: Office of mailing or mailer information (see 707.21.0, Sack and Tray Labels).

b. Express Mail and Priority Mail drop shipments must be prepared in USPS-provided Express Mail or Priority Mail containers (pouches, sacks, cartons, or envelopes) or in mailer-supplied containers, labeled under 16.4.

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2.0 Manifest Mailing System (MMS)

2.1 Description

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

2.2 Basic Standards

2.2.1 Service Agreement

A service agreement must be signed by the mailer and a USPS representative. The agreement contains provisions regarding mailer and USPS responsibilities, including document retention, quality control, and the duration of the agreement.

2.2.2 Mailer System

The mailer must have an automated system that produces mail consistent with postal standards and calculates postage accurately. For presorted mail, the system also must determine the qualifying presort level and the correct rate of postage for each piece and perform the presort routines. The mailer must assign a unique identification number to each piece. Letter- and flat-size mail produced using batch processing must bear the keyline information in 2.3. The system must produce a manifest for each mailing that allows USPS verification of the postage and levels of presort. The manifest must account for every piece in the mailing, as follows:

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

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

c. When extra services are used, the manifest must include the fees for each piece.

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

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

2.2.3 Manifest Format

The two basic manifest formats are:

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

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

2.2.4 Mailer Quality Control

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

2.2.5 Permit Imprint

Mailings deposited under the MMS program must meet the standards for permit imprint mail in 604.5.0, except that presorted letter-size or flat-size mail produced using batch processing must include the qualified rate abbreviation in the keyline.

2.2.6 Marking

MMS mailings must meet the marking standards for the rate claimed. Markings on presorted letter-size and flat-size mail produced using batch processing are placed in the keyline as described in 2.3.3. Markings on itemized mailpieces may be:

a. Incorporated as part of the permit imprint.

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

c. Produced as otherwise specified in the MMS authorization.

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

2.2.7 Postage Statement

The mailer must submit a complete postage statement with each mailing. If the entry office postmaster approves, mailers may submit a computerized facsimile of the applicable USPS postage statement. Data fields may be omitted on facsimile if they pertain to rates not claimed in the mailing.

2.2.8 Manifest Adjustments

When mailpieces are mutilated, spoiled, or destroyed during normal operations and cannot be presented as part of the mailing, a method of adjusting the manifest and postage statement that has been approved by the USPS must be used. Whether the method in 2.2.8a or 2.2.8b is used, the total number of pieces must be deducted at the end of the manifest and the postage statement adjusted. Use one of the following methods:

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

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

2.3 Keyline

2.3.1 Batch Mailings

The keyline printed on each piece of presorted letter- or flat-size First-Class Mail or Standard Mail produced using batch processing must contain, in order, the consecutive unique piece number, the weight increment (First-Class Mail only), the rate category for which the piece qualifies, and the postage paid by weight and rate category (see Exhibit 2.3.1).

Exhibit 2.3.1 Letter-Size Keyline Information

2.3.2 Mailer Codes

Codes for internal mailer use may be printed to the right of the postage-paid information, if at least two spaces separate the postage paid and any internal code information.

2.3.3 Rate Category Abbreviations

Keylines on First-Class Mail or Standard Mail may use only the rate category abbreviations in Exhibit 2.3.3a or Exhibit 2.3.3b, respectively. All pieces that qualify for more than one postage rate must show each rate category abbreviation, separated by a "/" (slash) (e.g., EB/DS).

a. First-Class Mail

Exhibit 2.3.3a Rate Category Abbreviations—First-Class Mail

Code	Rate Category
AC	Automation Carrier Route [letters only]
AV	Automation 5‑Digit
AT	Automation 3‑Digit
AB	Automation AADC
AB	Automation ADC
MB	Automation Mixed AADC
MB	Automation Mixed ADC
FP	Presorted
SP	Single-Piece Rate (when fewer than 500 pieces accompany automation rate mail)

b. Standard Mail

Exhibit 2.3.3b Rate Category Abbreviations—Standard Mail

Code	Rate Category
AV	Automation 5‑Digit [letters only]
AT	Automation 3‑Digit [letters only]
AF	Automation 3/5 [flats only]
AB	Automation AADC
MB	Automation Mixed AADC
BB	Automation Basic
RA	3/5
BS	Basic
EA	Enhanced Carrier Route Automation Basic [letters only]
EB	Enhanced Carrier Route Basic
EH	Enhanced Carrier Route High Density
ES	Enhanced Carrier Route Saturation
DB	Destination Bulk Mail Center (DBMC)
DD	Destination Delivery Unit (DDU)
DS	Destination Sectional Center Facility (DSCF)

2.3.4 Keyline Location—Batch Mailings

The keyline must be readily identifiable and placed anywhere on the address side that does not conflict with other standards (see Exhibit 2.3.1 for examples). On letter-size mail, the keyline must not interfere with the OCR read area (see 202.2.1) or barcode clear zone (see 202.5.1). If printed on an insert, the keyline must conform to 202.5.0.

2.3.5 Unique ID Number Location—Itemized Mailings

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

2.4 Authorization

2.4.1 Application

The mailer must submit an MMS application and supporting documentation as specified on the application to the postmaster of each post office where mailings will be deposited. Publication 401 contains an application to mail using an MMS. Application procedures for mailers who want to manifest and pay postage for Express Mail using an Express Mail Manifesting System are outlined in 2.6.

2.4.2 Approval Review

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

2.4.3 General Requirements for Authorization

General requirements for authorization are as follows:

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

b. If the total postage or the total weight of pieces sampled during a verification results in an underpayment by more than 1.5%, total postage for the mailing is adjusted.

c. An MMS is authorized for no more than 2 years.

d. The mailer must notify the USPS in writing of any system change that affects postage calculation, generation of required documentation, or mail presorting before the mailing is presented.

e. Postage must be paid by an advance deposit account from which funds may be deducted by the USPS to cover any deficiency discovered after acceptance of the mail.

2.4.4 Approval Authority

The final authority for manifest mailing approval is as follows:

a. The district Customer Service and Sales manager approves systems that produce separate or mixed mailings of single-piece rate First-Class Mail, Package Services, or international mail, including mailings with extra services and predetermined weights.

b. The Business Mailer Support manager, USPS Headquarters, approves systems that produce presorted mailings, including First-Class Mail, Standard Mail, Package Services, and PVDS mailings.

2.4.5 Denial

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

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

b. For MMS authorizations denied final approval by the Business Mailer Support manager, the mailer may, within 15 days from the receipt of the notice, file a written appeal, including additional evidence showing why the MMS should be authorized. The appeal is sent to the Business Mail Acceptance manager, USPS Headquarters, who issues the final agency decision (see 608.8.0 for address).

2.4.6 Renewal

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

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

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

c. When the review determines that modifications are needed before renewal, the mailer is informed in writing of the necessary modifications. If the mailer chooses to make the modifications, the system is reviewed again under 2.4.6b.

2.5 Revocation

2.5.1 Revocation Authority

The revocation authority for MMS is as follows:

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

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

2.5.2 Reasons for Revocation

An MMS authorization may be revoked if:

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

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

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

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

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

2.5.3 Corrective Action

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

2.5.4 Appeal of Revocation

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

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

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

2.6 Express Mail Manifesting Agreements

2.6.1 Description

Express Mail Manifesting (EMM) is an automated system that allows a mailer to document postage and fees for all pieces in an Express Mail mailing by transmitting an electronic file to the USPS.

2.6.2 What May Be Manifested

EMM may be used to pay postage for domestic Express Mail items and Global Express Mail items as well as any extra service fees. Postage for other classes of mail cannot be paid through EMM. Custom-designed service and mailings to military (APO/FPO) addresses may not be mailed using EMM.

2.6.3 Service Guarantee

Express Mail items mailed using an EMM are covered by current Express Mail service and postage guarantees. Refunds for service failures are subject to the standards in 604.9.5. Reimbursements are paid under 604.9.5.7.

2.6.4 Postage Payment

Postage for EMM is paid through an Express Mail corporate account (EMCA) using the information in the mailer's electronic file. Mailers wishing to mail using an EMM system must apply for an EMCA using the procedures in 114 before an EMM agreement will be authorized.

2.6.5 Mail Volume

EMM is designed for large volume mailings; however, there are no minimum volume requirements.

2.7 Basic Standards

2.7.1 Mailer Participation Requirements

To participate in Express Mail Manifesting, mailers must:

a. Develop or purchase computer software that will meet the EMM technical requirements outlined in Publication 97, Express Mail Manifesting Technical Guide.

b. Obtain a DUNS� number for each mailing location.

c. Obtain USPS certification that the mailer's software and barcoded labels meet EMM requirements.

d. Develop and administer effective quality control procedures that will ensure the integrity of the system.

e. Use one-ply Express Mail labels that meet the requirements in Publication 97.

f. Be able to have the USPS accept and dispatch EMM items from their company or a postal facility at the times approved by the district marketing manager.

g. Receive authorization to mail items using EMM under 2.8.

2.7.2 Mailer Quality Control

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

2.7.3 Mailer System Accuracy/Manifest Adjustments

The USPS verifies the accuracy of the EMM system by selecting mailpieces at random and comparing them to a verification manifest. If the sampling indicates that the total postage (for the sample mailpieces) is understated by more than 1.5%, the mailer must either withdraw the mailing or pay postage at an adjusted rate. Specific procedures are outlined in Publication 97.

2.7.4 Markings, Label Specifications, and Barcodes

No special rate markings are required on EMM items. However, barcoded EMM labels are required on all EMM mailpieces, and specific label formats must be followed. Detailed barcode and Express Mail label specifications and options are published in Publication 97. The labels are subject to approval by Product Information Requirements, Product Development, USPS Headquarters, and the National Customer Support Center (NCSC). Mailers must follow the specific certification procedures outlined in Publication 97.

2.7.5 Mail Entry

Mailers must present a photocopy or facsimile of Form 3152-E and a verification manifest with each mailing.

2.7.6 Manifest Data Edit Error/Warning Listing

Mailers must retrieve and retain the Manifest Data Edit Error/Warning Listing for each mailing that will be made available by the host computer. The listing confirms whether an electronic transmission was successful or contained errors or warnings. Specific information about this requirement is included in Publication 97 and in the mailer's EMM agreement.

2.7.7 Form 3152-E for Postage Payment

Form 3152-E is presented with each mailing. There is no postage affixed to the mailpieces and no postage statement presented with mailings. Postage payment is completed by electronic withdrawal of funds from a mailer's Express Mail corporate account. Form 3152-E must include the following information:

a. Number of pieces in the mailing.

b. Total weight of pieces in the mailing.

c. Total postage and extra service fees, if applicable, for the mailing.

d. EMCA number.

e. Electronic file number from header record positions 4-25.

f. Mailer signature.

g. Date of mailing.

2.8 Applications, Agreement Renewals, Modifications, Suspensions, and Cancellations

2.8.1 Applications

Mailers must apply to use an EMM system by completing the application in Publication 97. The application must be sent to the USPS sales representative at the post office where the items will be accepted as mail. After the application and other documentation has been received and reviewed, the application and Form 1357-S is faxed to Product Information, Product Requirements, USPS Headquarters. This office will send the contact page of the application to the Postal NCSC Delivery Confirmation Office. The Delivery Confirmation Office will send a test kit to the applicant via electronic mail to test the electronic file transmission accuracy. The application for EMM must be accompanied by the following:

a. A completed Form 1357-S.

b. A copy of Form 5637 showing that an Express Mail corporate account has been established.

c. A DUNS� number for each mailing location.

d. Sample copies of a verification manifest created from the mailer's EMM software.

e. An EMM label sample.

f. A rate matrix, if applicable.

2.8.2 Approval

A temporary service agreement will be issued by the district marketing manager through the Business Mail Entry Office for 90 days at the location where the mailings will be verified and accepted when a review of the mailer's application and mailing operation indicates the mailer meets the eligibility requirements for entry of Express Mail items using an EMM system. Prior to the end of the 90 day temporary agreement the district business mail entry manager will conduct a final review to ensure that the system continues to meet standards. Upon a successful review, the district Customer Sales and Service manager gives final approval of the EMM system. Publication 97-A, Express Mail Manifesting Implementation and Administration Guide, outlines the specific responsibilities of the various USPS departments in approval process.

2.8.3 Denial

If an application for EMM is denied by the district marketing manager, the denial is effective 15 days from the mailer's receipt of the notice unless a written appeal is filed within that time to the Business Mailer Support manager, USPS Headquarters, who issues the final agency decision on the application.

2.8.4 Changes, Additions, or Modifications to the Service Agreement

If a mailer proposes to change the method of presenting or documenting mailings from the method specified in the agreement, or the mailer is no longer able to comply with the standards that apply to the authorization, the mailer must immediately notify the district marketing manager.

2.8.5 Renewal

EMM agreements are valid for 2 years. The district Customer Service and Sales manager, USPS Headquarters, will conduct renewal reviews.

2.8.6 USPS Suspension

The district Customer Service and Sales manager may suspend an EMM agreement at any time, pending review, when there is an indication that postal revenue is not fully protected. The district Customer Service and Sales manager will notify the mailer of the decision in writing. The suspension becomes effective upon the mailer's receipt of the notification.

2.8.7 USPS Cancellation

The district Customer Service and Sales manager may cancel an EMM agreement upon 15 days notice if:

a. The mailer fails to provide a manifest with correct data.

b. The required quality control procedures described in the EMM agreement are not properly performed.

c. The EMM does not comply with USPS requirements.

d. Mailings are presented that are not properly prepared or paid.

e. No Express Mail manifest mailings are presented for more than 6 months (unless approved by the Business Mailer Support manager).

f. The mailer has relocated or has changed ownership without notification.

g. The 2-year renewal review reveals that the EMM agreement should no longer be authorized or the mailer is not complying with the agreement.

2.8.8 Cancellation Notice and Appeal

The cancellation takes effect 15 days from the mailer's receipt of the notice unless, within that time, the mailer files a written appeal with the Business Mailer Support manager. The appeal must present additional information explaining why the EMM agreement should not be canceled. The Business Mailer Support manager will issue the final agency decision.

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3.0 Optional Procedure (OP) Mailing System

3.1 Basic Information

3.1.1 Description

An OP Mailing System is a method of verifying and accepting First-Class Mail, Standard Mail, and Package Services paid by permit imprint. Mailings may consist of identical-weight or nonidentical-weight pieces. The OP Mailing System reviews a mailer's financial, production, and other business records in lieu of standard weight verification procedures. Postage verification is normally completed by a USPS audit of business records kept by the mailer. A USPS audit is designed to detect underpayment of postage. The burden rests with the mailer to prove any overpayment of postage.

3.1.2 General Qualification

An OP Mailing System is authorized and renewed in 2-year intervals when all of the following conditions are met:

a. The mailer's plant is operating and mailing when the application is submitted.

b. The mailer's records provide a sound audit trail that ensures proper postage is collected.

c. Mailings qualify as permit imprint mailings under the applicable standards.

d. The administering post office or district can provide trained, qualified employees during the mailer's hours of mailing operations.

3.1.3 Quality Control

The mailer must implement a documented quality control program that ensures integrity of the system, accuracy and proper maintenance of OP records, eligibility of the mailings prepared for the postage rates claimed, and ability to take corrective actions.

3.1.4 Service Agreement

A service agreement must be signed by the mailer, the postmaster, the district manager, and the Business Mailer Support (BMS) manager before the first OP mailing is presented. Before the service agreement is finalized the mailer must submit an OP Mailing System application and that application must be approved under the procedures in 3.2. The agreement must set forth, among other things, the mailing information described in 3.2.3 and 3.2.4.

3.2 Authorization

3.2.1 Application

The mailer must submit an OP Mailing System application to the postmaster at the office of mailing. Publication 407, Optional Procedure (OP) Mailing System, available through business mail entry units and www.usps.com, contains an application and detailed information about mailer standards, responsibilities, and qualifying criteria. The mailer must submit, as part of the application, a complete sample job with all records to be part of the audit trail identified and labeled; a detailed explanation of how each record supports the number of pieces and presort level rate of postage claimed on the postage statements; and a detailed description of current internal quality control procedures as they relate to production and presentation of mailing.

3.2.2 Business Mailer Support Action

The Business Mailer Support (BMS) manager, USPS Headquarters, approves or denies applications for optional procedure.

3.2.3 Approval

When the application is approved, a written service agreement is signed between the USPS and the mailer to specify the types of mailings that may be mailed under the OP Mailing System (e.g., the classes of mail, processing categories, permit numbers to be used, and whether the mailer is authorized to mail identical-weight and/or nonidentical-weight pieces).

3.2.4 Denial

If the application is denied, the denial is effective 15 days from the mailer's receipt of the notice unless, within that time, the mailer files a written appeal with the BMS manager. The appeal must present additional information explaining why the OP application should be approved. If the manager still finds that the application should be denied, the file is forwarded to the Business Mail Acceptance manager, USPS Headquarters, who will issue a final agency decision to the mailer.

3.2.5 Changes

If the mailer proposes to change the method of presenting or documenting mailings from that specified in the agreement, or the mailer is no longer able to comply with the standards that apply to the authorization, the mailer must immediately notify the BMS manager, through the postmaster of the administering post office. The BMS manager will notify the mailer in writing if the OP agreement should be modified, continued, or canceled.

3.2.6 Additions or Modifications to the Service Agreement

If the mailer requests additional options or modifications to the OP agreement, the mailer must submit a written request to the BMS manager stating the requested change or modification and complete documentation supporting each change or modification. The mailer's request must be submitted before the change or modification is made. Changes to the OP service agreement cannot be made until the BMS manager has notified the mailer in writing that the changes or modifications have been approved and an addendum is added to the OP service agreement.

3.2.7 USPS Suspension

The BMS manager may suspend an OP Mailing System at any time, pending review, when there is an indication that postal revenue is not fully protected. The BMS manager will notify the mailer in writing of the decision. The suspension becomes effective upon the mailer's receipt of the notification.

3.2.8 Mailer Cancellation

The mailer may cancel an OP Mailing System authorization at any time by written notice to the administering post office.

3.2.9 USPS Cancellation

The USPS may cancel an OP Mailing System authorization if:

a. The mailer provides misleading or incorrect data to avoid paying postage, makes no mailings under the OP agreement during any consecutive 12-month period, or routinely fails to comply with the OP agreement or the standards applicable to the OP Mailing System.

b. The 2-year renewal audit reveals that the OP agreement should no longer be authorized or the mailer is not complying with the agreement.

3.2.10 Cancellation Notice and Appeal

The cancellation takes effect 15 days from the mailer's receipt of the notice unless, within that time, the mailer files a written appeal with the BMS manager. The appeal must present additional information explaining why the OP Mailing System authorization should not be canceled. If the BMS manager does not uphold the appeal, the appeal, the additional information, and the complete record underlying the initial decision to cancel the authorization are forwarded to the Business Mail Acceptance manager, USPS Headquarters, who issues the final agency decision to the mailer.

3.3 Records

3.3.1 Mailer Responsibility

The mailer must submit accurate postage statements and keep accurate records. The mailer must prepare a complete record for each mailing, label all component records as they are created with the mailing (and/or order) to which they relate, and keep it at a central location for 1 year. Records used for verification of OP mailings must be records that are also routinely kept for production of other than OP mailings.

3.3.2 Mailer Running Summary

The mailer must maintain a running summary of mailings made to the USPS. The summary must include the permit number, date of mailing, postage statement sequence number, total pieces, weight of a single piece (or weight ranges of nonidentical-weight pieces), and the total weight and total postage for each mailing. For plant-verified drop shipment (PVDS) mailings the grand totals from the consolidated postage statement are entered on the summary.

3.3.3 Contents

Each mailing record must contain a sample of the mailpiece, the corresponding postage statement, and source documents required for the audit trail as specified in the mailer's OP agreement.

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4.0 Alternate Mailing System (AMS)

4.1 Basic Information

4.1.1 Purpose

An Alternate Mailing System (AMS) provides for other methods of accepting permit imprint mail, not established in 2.0, Manifest Mailing System (MMS), or 3.0, Optional Procedure (OP) Mailing System, that show proper postage payment and mail preparation without verification by weight.

4.1.2 Postage Adjustment

Overpayments or underpayments identified during USPS verification require a postage adjustment. Verification samples are deemed to be representative of the entire mailing and postage adjustment calculations are based on the total mailing. The mailer must pay a penalty when the sampling verification shows that the postage error exceeds 1.5% of the corrected postage. The total corrected postage for the entire mailing is deducted from the permit imprint advance deposit account.

4.2 Authorization

4.2.1 Procedure

A mailer may request authorization to pay postage by an AMS by submitting a written request to the postmaster at the office of mailing. The request must include a complete description of the types of matter to be mailed, the proposed method of paying postage, the proposed method to determine correct mail preparation, and a statement of the reasons for requesting the alternate system. The USPS may review the mailer's operation before ruling on the application.

4.2.2 Conditions

The conditions of authorization are:

a. Authorization to use AMS must benefit the USPS.

b. Authorization to use AMS must include a signed AMS agreement.

c. An AMS agreement must specify the terms and conditions of the AMS.

d. All postage must be paid by permit imprint unless otherwise permitted in writing by the BMS manager.

e. There must be no additional cost to the USPS for an AMS agreement beyond the costs of current mail acceptance procedures for the mail in question.

f. The mailer must implement a quality control program that ensures proper mail preparation and accurate documentation, subject to USPS approval. The service agreement must include details of this program. Each AMS mailing must include a statement from the mailer certifying that the approved quality control verification is done.

g. Authorization must not exceed 2 years.

4.2.3 BMS Action

The BMS manager approves or denies a written request for AMS.

4.2.4 Approval

If the application is approved, a service agreement must be signed by the USPS and the mailer.

4.2.5 Denial

If the application is denied, the mailer may file a written appeal, within 15 days from the receipt of the notice, containing additional evidence explaining why the AMS request should be approved, with the Business Mail Acceptance manager, USPS Headquarters, who reviews the appeal and issues the final agency decision.

4.2.6 Revocation

The BMS manager may revoke an AMS authorization if the mailer:

a. Provides incorrect data for mailings and appears unable or unwilling to correct all problems.

b. Is not conducting required quality control procedures.

c. No longer meets the criteria established by standard or the AMS agreement.

d. Does not present mailings under AMS for more than 6 months (except under the service agreement).

e. Continues to present mailings improperly prepared or mailings without correct postage.

4.2.7 Notice of Revocation

After a revocation notice is issued, the mailer and the USPS decide on the corrective actions and set up an implementation schedule, after which the USPS reexamines the mailer's system. Failure to correct identified problems is sufficient grounds to revoke a mailer's AMS authorization.

4.2.8 Appeal

Revocation proceeds if the mailer is unable or unwilling to correct the discrepancies found. The mailer may file a written appeal within 15 days from the date of receipt of the notice, which includes evidence explaining why the AMS authorization should not be revoked. The appeal must be filed with the BMS manager for transmission to the Business Mail Acceptance manager, USPS Headquarters, who issues the final agency decision. The mailer may continue to present mail under the AMS pending a decision on appeal. The revocation decision takes effect 15 days after receipt by the mailer.

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5.0 First-Class Mail or Standard Mail Mailings With Different Payment Methods

5.1 Basic Provisions

5.1.1 General

After specific USPS authorization, a mailer may prepare separate First-Class Mail or Standard Mail letter-size automation rate mailings that each contain pieces paid with more than one of the three authorized methods of postage payment (permit imprint, meter stamp, or precanceled stamp) or that contain pieces having different rates of postage affixed or multiple ounces of First-Class permit imprint mail or nonidentical-weight permit imprint mail. For this standard, mailer or presenter is the entity preparing the combined mailing and presenting it to the USPS. All standards applying to each method of payment apply in a combined mailing, unless excepted below.

5.1.2 Postage Payment

Postage due the USPS for permit imprint mail and additional postage for postage-affixed pieces is paid through a specific advance deposit account kept exclusively for combined mailings.

5.1.3 Value Added

To request value added refunds of postage overpayments for the metered part of combined mailings, see 604.9.0, Refunds and Exchanges.

5.1.4 Mailer Processing

The mailer must have an automated mailing system that can be shown to correctly produce automation rate letter-size mailings under the applicable standards and accurately compute and document the postage due.

5.1.5 Authorization Process

To be authorized to prepare automation rate combined letter-size mailings, a mailer must submit a written request to the postmaster serving the mailer's production plant. This request must:

a. Identify the postage payment methods to be combined, the rates of postage to be affixed to precanceled stamped or metered pieces, and, for First-Class Mail, the weight increments of pieces to be combined.

b. Describe all steps in the automated mailing system to be used to prepare combined mailings. Include a flow chart showing how jobs are handled from the time received from clients or other departments through the time the combined mailing is presented to the post office for verification and acceptance.

c. Include samples of all reports that the mailing system can generate. Number and annotate samples to describe step-by-step how the data are obtained and how each data element is supported and can be verified. Describe at which step in the mailing operation the reports may be generated, and how the reports relate to each other and to the preparation of postage statements.

d. Describe how rejects are handled during mail preparation.

e. Describe in detail internal quality control procedures that ensure that mailings are properly prepared, that postage statement and supporting data are accurate, and that correct postage is paid. Submit copies of quality control instructions and checklists used.

5.1.6 On-Site Review

The USPS examines the mailer's operation as part of the application process. During the on-site review, the mailer must:

a. Produce a controlled test mailing with supporting documentation.

b. Show that internal quality control procedures are satisfactorily administered.

c. Show that the mailing system provides acceptable documentation by which the USPS can verify postage statement data.

5.1.7 Interim Authorization

If the mailer meets standards, the USPS grants a 90-day interim authorization to prepare combined mailings. During this time, USPS monitors the mailer's system to ensure continued compliance with all applicable standards.

5.1.8 Final Authorization

After the 90-day authorization, if the mailer's program meets all applicable standards, BMS prepares a detailed authorization for the mailer to follow in preparing combined mailings. The authorization period does not exceed 2 years. The mailer must give advance written notice to BMS about plans to change the system used to prepare combined mailings.

5.1.9 Denial

If an application is denied, the mailer may, within 15 days from receipt of the notice, file a written appeal, including additional evidence, with the Business Mail Acceptance manager, USPS Headquarters, who issues the final agency decision.

5.1.10 USPS Review

A USPS review of the mailer's system is conducted before the expiration date:

a. If the review shows no need for modifications to the agreement, it is renewed for a 2-year period.

b. If the review shows modifications to the system without prior notification to BMS, but the system still remains qualified, a new agreement must be reached that details the modifications.

c. If the review shows that the system can be renewed only with modifications required by the USPS, the mailer must be so informed and, if the mailer agrees, a new agreement is implemented under 5.1.7 and 5.1.8.

d. If the review shows that the mailer is not properly preparing combined mailings or does not agree to USPS modifications, steps must be taken to cancel the authorization.

5.1.11 Suspension

The BMS manager may suspend a combined mailing system agreement at any time, pending investigation, if the manager finds that postage is not being fully paid or mail is not being prepared according to standards. The decision may be appealed to the Business Mail Acceptance manager, USPS Headquarters, within 15 days of the suspension by submitting a written appeal with explanation. The suspension remains in effect during the appeal. A suspension is ended when the mailer comes into compliance.

5.1.12 Cancellation by USPS

The USPS may cancel an authorization to prepare combined mailings at any time if the mailer:

a. Provides misleading or incorrect data to avoid payment of postage.

b. Makes no combined mailings under the agreement during any consecutive 12-month period.

c. Fails to comply with applicable standards or the agreement, including required quality control procedures, and does not make changes to comply after USPS notification.

5.1.13 Cancellation Procedure

If the USPS decides to cancel an authorization, cancellation becomes effective 15 days from the mailer's receipt of the notice, unless the mailer files a written appeal within that time with the BMS manager. The appeal must show additional information on why the combined mailing authorization should not be canceled. If the manager denies the appeal, both the appeal and the additional information are sent to the Business Mail Acceptance manager, USPS Headquarters, who issues the final agency decision.

5.1.14 Cancellation by Mailer

The mailer may cancel an authorization to prepare combined mailings at any time by notifying the administering post office in writing.

5.2 Postage

5.2.1 Metered Pieces—First-Class Mail

Metered pieces in a combined mailing must bear postage for the first ounce at the Presorted rate or at an automation rate for which the pieces are eligible and, if applicable, the full amount of postage due for additional ounces. Additional postage due for metered pieces in a combined mailing is deducted from the mailer's postage due advance deposit account. Full postage at single-piece First-Class Mail rates must be paid on accompanying single-piece rate mail using one of the methods under 134.1.0. Additional preparation to verify postage due may be required by the USPS.

5.2.2 Metered Pieces—Standard Mail

Metered pieces in a combined mailing must bear postage at a Presorted or automation rate for which the pieces are eligible. Additional postage due for metered pieces in a combined mailing is deducted from the mailer's postage due advance deposit account. Full postage at single-piece First-Class Mail rates must be paid on accompanying single-piece rate mail using one of the methods under 243.3.0, 243.5.0, and 134.1.0. Additional preparation to verify postage due may be required by the USPS.

5.2.3 Precanceled Pieces—First-Class Mail

Pieces with precanceled stamps in a combined mailing must not weigh more than 1 ounce and must bear postage in any denomination of precanceled stamps permitted in a Presorted or automation rate mailing. Additional postage due for precanceled stamp pieces in a combined mailing is deducted from the mailer's postage due advance deposit account. Full postage at the single-piece First-Class Mail rate must be paid on accompanying single-piece rate mail using one of the methods under 134.1.0. Additional preparation to verify postage due may be required by the USPS.

5.2.4 Precanceled Pieces—Standard Mail

Pieces with precanceled stamps in a combined mailing must bear postage in any denomination of precanceled stamp permitted in an automation rate mailing. Nonprofit postage may appear only on pieces in a Nonprofit rate mailing that are eligible for and claimed at a Nonprofit rate. Additional postage due for precanceled stamp pieces in a combined mailing is deducted from the mailer's postage due advance deposit account. Full postage at single-piece First-Class Mail rates must be paid on accompanying single-piece rate mail using one of the methods under 243.3.0, 243.5.0, or 134.1.0. Additional preparation to verify postage due may be required by the USPS.

5.2.5 Permit Imprint Pieces—First-Class Mail and Standard Mail

Pieces in a combined mailing may bear the permit imprint of the mailer or the mailer's clients. Postage for the permit imprint part of a combined mailing must be paid by the permit imprint advance deposit account kept for combined mailings. Postage is deducted only from this account, regardless of the permit numbers or company permit imprints on pieces in a combined mailing. Full postage at single-piece First-Class rates must be paid on accompanying single-piece rate mail using one of the methods under 134.1.0 and, for Standard Mail, 243.3.0 and 243.5.0. Additional preparation to verify postage due may be required by the USPS.

5.3 Producing the Combined Mailing

5.3.1 Mailer Quality Control

Before merging different pieces into a combined presorted mailing, the mailer must have quality control procedures to ensure that:

a. Meter dates are correct.

b. Meter impressions are legible.

c. Permits and licenses are current at office of mailing.

d. In First-Class mailings, full postage on 2-ounce and 3-ounce metered and precanceled stamped pieces is affixed for the ounces in addition to postage for the first ounce at a rate acceptable for inclusion in the mailing.

e. In Standard Mail mailings, full postage is affixed at a rate acceptable for inclusion in the mailing.

f. Barcodes meet all applicable standards.

g. Mailings are prepared under the relevant standards.

h. Source mailing information (on client, job, or segment) is entered accurately into the automated mailing system.

i. When markings are applied by an MLOCR, they properly show the applicable identifier/rate code described in 5.3.2 that specifies the product month designator, MASS/FASTforward system identifier, the method of postage payment, and the rate of postage affixed for metered and precanceled stamp mail or other postage information for permit imprint mail. These markings must be linked by the computer system to the rate entered by the mailer when the pieces are run through the MLOCR.

5.3.2 Rate and Postage Marking

The following markings must be applied to each piece in the mailing when markings are applied by an MLOCR. These seven-character markings provide the automation rate marking information and additional information including the product month designator, MASS/FASTforward (FF) system identifier, manufacturer code, and rate marking information. The product month designator is the first character position and represents the product month of the USPS ZIP+4 Product installed with the system's lookup engine responsible for the ZIP+4 assignment. Each product month is designated by a character "A" through "L" (with "A" meaning January, "B" meaning February, etc.). The MASS/FF System Identifier is characters 2 through 4 and represents the certified system identifier responsible for the ZIP+4 assignment. There is a one-to-one relationship between the certified system serial number and the assigned identifier. The manufacturer code is the fifth character and is assigned at the manufacturer's discretion with one exception: the character "Z" is assigned when the mailpiece contains a delivery point barcode in the address block and the MLOCR does not perform a lookup but simply reproduces the address block barcode. The rate marking is represented in the last two characters according to the chart below. The applicable marking must appear on each mailpiece in one of the locations authorized under 202 for letters, 302 for flats, or 402 for parcels.

a. First-Class Mail:

Rate Marking		Rate And Postage Category
Letters	Flats
P1	F1	Barcoded 1-ounce Permit Imprint
P2	F2	Barcoded 2-ounce Permit Imprint
P3	F3	Barcoded 3-ounce Permit Imprint
P4	F4	Barcoded 4-ounce Permit Imprint
	F5	Barcoded 5-ounce Permit Imprint
	F6	Barcoded 6-ounce Permit Imprint
	F7	Barcoded 7-ounce Permit Imprint
	F8	Barcoded 8-ounce Permit Imprint
	F9	Barcoded 9-ounce Permit Imprint
	F0	Barcoded 10-ounce Permit Imprint
	FA	Barcoded 11-ounce Permit Imprint
	FB	Barcoded 12-ounce Permit Imprint
	FC	Barcoded 13-ounce Permit Imprint
M5	MF	Barcoded 5‑Digit Meter Postage Affixed
M3	MT	Barcoded 3‑Digit Meter Postage Affixed
MA	MD	Barcoded AADC Meter Postage Affixed
MM	MX	Barcoded Mixed AADC Meter Postage Affixed
MP	MP	Presorted Meter Postage Affixed
S1		Precanceled $0.15 Stamp Affixed (card)
S3		Precanceled $0.23 Stamp Affixed
S2		Precanceled $0.25 Stamp Affixed

b. Standard Mail (letters only):

Rate Marking	Rate and Postage Category
PI	Barcoded Regular Permit Imprint
NI	Barcoded Nonprofit Permit Imprint
M5	Barcoded 5‑Digit Meter Regular Postage Affixed*
N5	Barcoded 5‑Digit Meter Nonprofit Postage Affixed*
M3	Barcoded 3‑Digit Meter Regular Postage Affixed*
N3	Barcoded 3‑Digit Meter Nonprofit Postage Affixed*
MA	Barcoded AADC Meter Regular Postage Affixed*
NA	Barcoded AADC Meter Nonprofit Postage Affixed*
MM	Barcoded Mixed AADC Meter Regular Postage Affixed*
NM	Barcoded Mixed AADC Meter Nonprofit Postage Affixed*
M8	Presorted 3/5 Meter Regular Postage Affixed*
N8	Presorted 3/5 Meter Nonprofit Postage Affixed*
M9	Presorted Basic Meter Regular Postage Affixed*
N9	Presorted Basic Meter Nonprofit Postage Affixed*
SR	Precanceled Regular Rate Stamp Affixed
SN	Precanceled Nonprofit Stamp Affixed

5.3.3 Merging Methods and Documentation

During the initial count of each source mailing (i.e., the quantity of mail originated by each of the mailer's clients) by the mailer's automated mailing system, pieces must be grouped by payment method (and, within each for First-Class, by ounce increment). All pieces within each postage-affixed group must have the same amount of postage affixed (for First-Class, the same amount of postage must be affixed for the first ounce). The mailer must keep records of each source that was merged in the combined mailing to allow the USPS to identify each source, the number of pieces by postage payment method, and, within each, by ounce increment (for First-Class), or by amount of postage affixed (for Standard Mail). The mailer must keep these records (in the form of computer-generated printouts or computer media approved by Business Mailer Support) in a central location for 90 days after the mailing date of the combined mailing.

5.3.4 Rejected Pieces

Pieces rejected for any reason by the mailer's automated sorting system and pulled out of the combined mailing stream must be identified by the mailer, specifically accounted for in documentation, and:

a. If postage-affixed, bear postage or have additional postage affixed to equal a rate no lower than the correct Presorted First-Class rate or 3/5 Presorted Standard Mail rate for letters, as applicable.

b. If paid by permit imprint, separately presented to the USPS for verification of postage.

5.4 Documentation

5.4.1 Submission

Mailers are required to submit or generate the following reports:

For each First-Class Mail or Standard Mail combined mailing, the mailer must provide these materials:

a. For each postage payment method, a complete and accurate postage statement endorsed "Combined Mailing" at the top.

1. A separate Form(s) 3553.

2. The USPS qualification report in standardized format detailing by ZIP Code the number of pieces qualifying for each rate by presort level. If plant-verified drop shipment (PVDS) is used for Standard Mail, a separate USPS qualification report must be generated for each entry destination.

3. The USPS Summary ZIP Destination report in one of two standardized formats that lists by tray destination and rate category: each mail category, postage payment type, weight, and rate affixed (report all postage affixed First-Class Mail pieces as weighing one ounce); number of pieces; dollar amount of postage affixed to those pieces; cumulative postage affixed; total postage; net postage due; cumulative postage due; and a running total of the number of pieces. If plant-verified drop shipment (PVDS) is used for Standard Mail, a separate USPS Summary ZIP Destination report must be generated for each entry destination. This report is not required if there is only one metered rate in the mailing. BMS may authorize submission of only portions of this report.

4. The USPS Postage Summary in a standardized format. This report shows, by type of payment method, the total postage claimed for all pieces in the mailing by rate level and the total postage affixed by rate level. It also shows a grand total summary of postage affixed, postage claimed, and total postage due. If plant-verified drop shipment (PVDS) is used for Standard Mail, a separate USPS Postage Summary report must be generated for each entry destination.

5. Other documentation that may be required by other standards for the rate claimed.

b. The USPS Customer Mail Report must be generated for each mailing but is required to be submitted to the USPS only when requested by USPS personnel for the resolution of errors (shortpaid and potential MLOCR profiling) detected in a specific mailing. The Customer Mail Report must list each customer by name and provide the following information about their mail: rate affixed, mail category including postage payment type, weight, total postage, postage affixed, number of pieces, cumulative number of pieces, number of pieces rejected, and total pieces fed.

5.4.2 Permit Imprint

To prepare the postage statement for permit imprint pieces, the mailer multiplies the number of such pieces qualifying for each rate level (and, for First-Class Mail, in each weight increment) (as documented by the mailer) by the corresponding rate. The result is the net postage due for the permit imprint part of the combined mailing. If the mailing contains nonidentical-weight permit imprint pieces, the postage statement must be so annotated.

5.4.3 Postage Affixed

In completing the separate postage statements for postage-affixed pieces:

a. Multiply the number of pieces at each rate level (which, for First-Class Mail, are treated as weighing 1 ounce or less, regardless of actual weight) by the corresponding rate of postage. The product is the postage due before adjustments are made for the value of postage affixed to those pieces.

b. Multiply the amount of postage (or, for First-Class Mail only, first ounce postage) affixed by the number of pieces at each amount, to determine the total postage already paid.

c. Set the amount paid against the amount due to find the postage to be paid by or to the mailer for the postage-affixed pieces.

5.4.4 Reporting Results

Any additional postage due is paid through the mailer's advance deposit account for combined mailings. A "value added" refund of any overpayment of meter postage may be requested under 604.9.0.

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6.0 Preparation for Combined Mailings of Standard Mail and Package Services Parcels

6.1 Combined Machinable Parcels—Rates Other than Parcel Post OBMC Presort, BMC Presort, DSCF, and DDU

6.1.1 Qualification

Machinable Standard Mail and machinable Package Services parcels may be combined under the sortation and other requirements in 6.1 except when claiming the following Parcel Post rates or discounts: OBMC Presort, BMC Presort, DSCF, and DDU. When claiming the OBMC Presort, BMC Presort, or DSCF rates, machinable Standard Mail and machinable Package Services parcels may be combined under the sortation and other requirements in 6.2. Standard Mail parcels must not be combined with Package Services parcels prepared for DDU rates.

6.1.2 Description

Subject to 6.1.1 and authorization under 6.1.5, a mailer who is authorized plant load or plant-verified drop shipment privileges may prepare a combined mailing of Standard Mail and Package Services machinable parcels that have been merged and sorted in sacks (under 6.1.5) or on pallets (under 8.0) to achieve the finest presort level. The combined mailing must meet the standards in 6.1 and those that apply to the rates claimed. Each parcel in a combined mailing is subject to the applicable Standard Mail or Package Services rate, based on the corresponding standards. Required volume for bulk or presort rates is based solely on the quantity of pieces eligible for each rate at the required presort level. Pieces claimed at other rates in the same sack or on the same pallet do not count.

6.1.3 Postage Payment

Postage for all pieces must be paid with permit imprint at the post office serving the mailer's plant under 2.0, Manifest Mailing System (MMS), 3.0, Optional Procedure (OP) Mailing System, or 4.0, Alternate Mailing System (AMS). The applicable agreement must include procedures for combined mailings approved by BMS.

6.1.4 Documentation

Separate postage statements must be prepared for the Standard Mail and Package Services pieces. Within each group, combined forms may be prepared where standards and the forms permit. All postage statements must be provided at the time of mailing, accompanied by a computer-generated listing (in ZIP Code sequence and numbered to correspond to the sacks or pallets) that describes the content of each sack or pallet. The mailer must keep this information for 90 days after the mailing is dispatched. This listing must show the mailer's name and location, the name and owner of each product for which a separate postage statement is prepared, and the entry post office. For each product, the listing must detail the number of pieces at each rate by 5-digit ZIP Code and totals for each pallet or sack and for the entire mailing. Additional documentation must be provided for all mailings of nonidentical-weight pieces or in which basic and 3/5 rate pieces are commingled and the mailer has not separated the sacks or pallets containing the pieces at the respective rates. Such documentation must be in one of these formats:

a. Segmented sequentially by sortation level (e.g., 5-digit scheme, 5-digit, BMC) and, within each, listing a unique number or Line 1 of each sack or pallet label. For each 5-digit scheme, 5-digit, or ASF/BMC entry, the number of pieces at each rate must be shown by 5-digit scheme, 5-digit, or 3-digit ZIP Code prefix. Destination ASF/BMC sacks or pallets must show a total number of pieces in the sack or on the pallet. The entries must be summarized for the whole mailing to show total pieces at each rate, total pieces, and total postage (and additional postage due, as applicable). The sacks or pallets do not have to be presented to the USPS in any particular order.

b. Segmented sequentially by sortation level and by 5-digit scheme and 5-digit (for sacks) or 3-digit ZIP Code prefix (for other sacks or pallets) with the number of pieces at each rate shown on the listing. The entries must be totaled for the whole mailing to show total pieces at each rate, total pieces, and total postage (or additional postage due, as applicable). If different amounts of additional postage are due, the summary must detail the number of pieces at each postage amount or at each amount of additional postage due. The sacks or pallets must be separated by sortation level when presented.

6.1.5 Authorization

The requirements for authorization are as follows:

a. A mailer who wants to present combined mailings must submit a written request to BMS. The request must show names of mail owner and mailer (if different); address of mailer's plant and mailing office (if different); names of items in combined mailing; evidence of authorization to mail under 2.0, Manifest Mailing System (MMS), 3.0, Optional Procedure (OP) Mailing System, or 4.0, Alternate Mailing System (AMS); expected date of first mailing; and sample of required computer-generated listings.

b. A separate written request must be made for each group of mailpieces to be prepared. An authorization is valid only for a specifically named group of items to be combined. If documentation for more than one mailer is derived from the same computer software program, and each mailer usually mails at regular intervals, requests for more than one mailing group may be made as part of the same authorization request. In such cases, the name of each mailer, frequency of mailing, type of product, and combination must be listed as part of the request.

c. An authorization to combine Standard Mail and Package Services machinable parcels expires at the same time as the applicable postage payment system authorization and may not be for more than 2 years. A mailer may terminate an authorization at any time by written notice to the postmaster of the office serving the mailer's location. The USPS may terminate an authorization, by written notice, if it finds that the mailer does not meet the applicable standards.

6.1.6 Sacking and Labeling

Preparation sequence, sack size, and labeling:

a. 5-digit scheme (optional, but required for Standard Mail 3/5 rate eligibility); 10-piece or 20-pound minimum; labeling:

1. Line 1: L606.

2. Line 2: "STD/PSVC MACH 5D SCH."

b. 5-digit (optional, but required for Standard Mail 3/5 rate eligibility); 10-piece or 20-pound minimum; labeling:

1. Line 1: city, state, and 5-digit ZIP Code on mail (see 8.6.4 for overseas military mail).

2. Line 2: "STD/PSVC MACH 5D."

c. ASF (optional; allowed only for mail deposited at an ASF to claim DBMC rate); 10-piece or 20-pound minimum; labeling:

1. Line 1: L602, Column B. DBMC rate eligibility determined by Exhibit 6.1.6.

2. Line 2: "STD/PSVC MACH ASF."

d. BMC (required); 10-piece or 20-pound minimum; labeling:

1. Line 1: L601, Column B. DBMC rate eligibility determined by Exhibit 6.1.6.

2. Line 2: "STD/PSVC MACH BMC."

e. Mixed BMC (required); no minimum; labeling:

1. Line 1: "MXD" followed by L601 Column B information for BMC serving 3-digit ZIP Code prefix of entry post office.

2. Line 2: "STD/PSVC MACH WKG."

Exhibit 6.1.6 BMC/ASF—DBMC Rate Eligibility

Eligible Destination ZIP Codes	Entry Facility
005, 068-079, 085-098, 100-119, 124-127	BMC New Jersey NJ 00102
010-067, 120-123, 128,129	BMC Springfield MA 05500
130-136, 140-149 [Except machinable parcels]	ASF Buffalo NY 140
130-136, 140-168, 260-266, 439-447 [Machinable parcels only or machinable parcels combined with bedloaded nonmachinable parcels]	BMC Pittsburgh PA 15195
150-168, 260-266, 439-447 [Except machinable parcels]	BMC Pittsburgh PA 15195
080-084, 137-139, 169-199	BMC Philadelphia PA 19205
200-212, 214-239, 244, 254, 267, 268	BMC Washington DC 20499
240-243, 245-249, 270-297, 376	BMC Greensboro NC 27075
298, 300-312, 317-319, 350-352, 354-368, 373, 374, 377-379, 398, 399	BMC Atlanta GA 31195
299, 313-316, 320-342, 344, 346, 347, 349.	BMC Jacksonville FL 32099
369-372, 375, 380-397, 700, 701, 703-705, 707, 708, 713, 714, 716, 717, 719-729	BMC Memphis TN 38999
250-253, 255-259, 400-418, 421, 422, 425-427, 430-433, 437, 438, 448-462, 469-474	BMC Cincinnati OH 45900
434-436, 465-468, 480-497	BMC Detroit MI 48399
500-516, 520-528, 612, 680, 681, 683-689	BMC Des Moines IA 50999
498, 499, 540-551, 553-564, 566	BMC Minneapolis/St. Paul MN 55202
570-577	ASF Sioux Falls SD 570
565, 567, 580-588	ASF Fargo ND 580
590-599, 821	ASF Billings MT 590
463, 464, 530-532, 534, 535, 537-539, 600-611, 613	BMC Chicago IL 60808
420, 423, 424, 475-479, 614-620, 622-631, 633-639	BMC St. Louis MO 63299
640, 641, 644-658, 660-662, 664-679, 739	BMC Kansas City KS 64399
730, 731, 734-738, 740, 741, 743-746, 748, 749	ASF Oklahoma City OK 730
706, 710-712, 718, 733, 747, 750-799, 885	BMC Dallas TX 75199
690-693, 800-816, 820, 822-831, 856, 857	BMC Denver CO 80088
832-834, 836, 837, 840-847, 898, 979	ASF Salt Lake City UT 840
850, 852, 853, 855, 859, 860, 863, 864	ASF Phoenix AZ 852
865, 870-875, 877-884	ASF Albuquerque NM 870
889-891, 893, 900-908, 910-928, 930-935	BMC Los Angeles CA 90901
894, 895, 897, 936-966	BMC San Francisco CA 94850
835, 838, 970-978, 980-986, 988-994	BMC Seattle WA 98000

6.2 Combined Parcels—Parcel Post OBMC Presort, BMC Presort, DSCF, and DDU Rates

6.2.1 Qualification

Combination requirements for specific discounts and rates are as follows:

a. When claiming Parcel Post OBMC Presort and BMC Presort discounts and DSCF rates, machinable Standard Mail parcels may be combined with machinable Package Services parcels under 6.2.

b. When claiming the Parcel Post DSCF rate, machinable and nonmachinable Standard Mail may be combined with machinable and nonmachinable Package Services parcels under 6.2.

c. Standard Mail parcels may not be combined with Package Services parcels prepared for DDU rates.

6.2.2 Authorization

Mailers must be authorized under 6.1.5 to prepare mailings that combine Standard Mail and Package Services parcels.

6.2.3 Postage Payment

Postage for all pieces must be paid with permit imprint at the post office serving the mailer's plant under an approved manifest mailing system under 2.0. The applicable agreement must include procedures for combined mailings approved by BMS.

6.2.4 Preparation and Rates

Combined parcels must be prepared as follows:

a. Minimum Mailing Volume. Separate minimum mailing volume requirements must be met for Standard Mail parcels and for Package Services parcels.

b. Parcel Post Qualifying for DSCF Rates. The combined mailings must be prepared under the applicable 5-digit scheme and 5-digit sack requirements in 455.4.0 or the applicable 5-digit scheme and 5-digit pallet requirements in 8.0 for the Parcel Post DSCF rates. All other requirements for the Parcel Post DSCF rates and the Presorted Standard Mail rates, as applicable, must be met. The following additional requirements apply:

1. If sacked under 455.4.0, the minimum requirement of seven pieces per sack must be met with only Package Services parcels. After the minimum sack volume has been met, Standard Mail parcels may be included in the sack or in overflow sacks.

2. If palletized under the option to prepare 5-digit scheme or 5-digit pallets when there are at least 50 pieces and 250 pounds per pallet, this pallet minimum must be met with only Package Services parcels. After the minimum pallet volume has been met, Standard Mail parcels may be included on the pallet or in overflow sacks.

3. If palletized under the alternate pallet preparation where no pallet may contain fewer than 35 pieces and 200 pounds provided the average number of pieces on pallets qualifying for the DSCF rate is at least 50, Standard Mail parcels may not be combined with Package Services parcels.

4. If palletized under the option to prepare 5-digit scheme or 5-digit pallets under the 36-inch-high (mail only) pallet minimum, any combination of Standard Mail or Package Services parcels may be used to meet the minimum pallet height requirement.

5. Line 2 of 5-digit scheme pallet and sack labels must read: "STD/PSVC MACH 5D SCH." Line 2 of 5-digit pallet and sack labels must read: "STD/PSVC MACH 5D."

6. Standard Mail parcels are eligible for the Presorted 3/5 rate.

c. Parcel Post Qualifying for OBMC Presort or BMC Presort Rates. The combined mailings must be prepared under the 8.0 BMC pallet requirements for machinable parcels at Parcel Post OBMC Presort or BMC Presort rates. All other requirements for the Parcel Post OBMC Presort or BMC Presort rates and the Presorted Standard Mail rates must be met. The following additional requirements apply:

1. The minimum height requirement for each pallet or pallet box on a pallet may be met using any combination of Standard Mail and Package Services parcels.

2. Line 2 of BMC pallet box labels must read: "STD/PSVC MACH BMC."

3. Standard Mail parcels are eligible for the Presorted 3/5 rate only if it can be shown by documentation that there was insufficient volume of Standard Mail parcels in the mailing to prepare separate 5-digit scheme and 5-digit pallets required for Standard Mail machinable parcels under 8.0. Otherwise, Presorted basic rates apply to the Standard Mail parcels.

6.2.5 Documentation

Presort documentation is required as applicable for each rate claimed if the manifest does not list pieces in presort order. Separate postage statements must be prepared for the Standard Mail and Package Services pieces. Within each group, combined forms may be prepared where the standards and the forms permit. All postage statements must be provided at the time of mailing.

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7.0 Combining Package Service Parcels for Destination Entry

7.1 Combining Parcels

7.1.1 General

Package Services parcels may be combined, at the mailer's option and when authorized by the USPS, in 5-digit scheme and 5-digit sacks or on 5-digit scheme and 5-digit pallets for entry either at a destination sectional center facility (DSCF) or a destination delivery unit (DDU). All applicable fees for presort and drop shipment must be paid and applicable minimum volume requirements for Presort rates and Parcel Select rates must be met. Combined Package Services mailings must meet the standards in 456.2.0 and 466.2.0 through 466.5.0, except as provided by this section. Parcels may not be combined for entry at a destination bulk mail center (DBMC). Carrier Route Bound Printed Matter may not be combined with other parcels under these standards. Presorted Media Mail and Presorted Library Mail claimed at basic rates may not be combined with other parcels under these standards. Parcels combined under these standards are not eligible for the barcoded discount.

7.1.2 Basic Standards

Package Services parcels that qualify as machinable, nonmachinable, and irregular under 401 and meet the following conditions may be combined in 5-digit scheme and 5-digit sacks or 5-digit scheme and 5-digit pallets under these conditions:

a. Minimum volume requirements for Parcel Select, Presorted Bound Printed Matter, Presorted Library Mail, and Presorted Media Mail must be met separately before combining.

b. Postage must be paid via permit imprint under an approved manifest mailing system as provided in 2.0.

c. All parcels must be prepared in sacks under 7.2 or on pallets under 7.3. For mail entered at the DSCF rates, pallet preparation is not permitted for 5-digit ZIP Codes that are unable to handle pallets. Refer to the Drop Ship Product maintained by the National Customer Support Center (NCSC) (see 608.8.0 for address) to determine which 5-digit delivery facilities can handle pallets. If a DDU facility cannot handle pallets, and a mailer transports mail to the DDU facility on pallets, the driver will have to unload the pallets into a container specified by the delivery unit.

d. Pieces may be claimed at single-piece rates, Presorted rates, and destination entry rates under 7.2.1 or 7.3.1.

e. Separate postage statements must be prepared for each subclass and destination entry rate as appropriate.

f. The deposit of combined Package Services at a DSCF or DDU must be in accordance with applicable drop shipment standards.

7.1.3 Authorization

Mailers apply for Business Mailer Support (BMS) authorization to combine parcels as part of a manifest mailing agreement (2.0). Current manifest mailers can apply for additional authorization to combine parcels. This authorization may not exceed 2 years.

7.2 Combined Parcels Prepared in Sacks

7.2.1 Rate Eligibility

In addition to the applicable standards in 456.2.0 and 466.2.0 through 466.5.0 for destination entry Package Services, the following standards apply for combined Package Services mail prepared in sacks:

a. Parcel Select DSCF rates apply to parcels that are contained in 5-digit scheme and 5-digit sacks, each containing at least 10 pieces of any combination of Package Services, or contained in overflow sacks under 7.2.2, provided all other requirements for the DSCF rate in 456.2.0 are met. Parcel Select DDU rates apply to parcels that are contained in 5-digit scheme and 5-digit sacks, each containing at least 10 pieces of any combination of Package Services, or contained in overflow sacks under 7.2.2, provided all other requirements for the DDU rate in 456.2.0 are met.

b. Presorted Bound Printed Matter DSCF rates apply to parcels that are contained in 5-digit scheme and 5-digit sacks, each containing at least 10 pieces of any combination of Package Services, or contained in overflow sacks under 7.2.2, provided all other requirements for the DSCF rate in 466.2.0 through 466.5.0 are met. Presorted Bound Printed Matter DDU rates apply to parcels that are contained in 5-digit scheme and 5-digit sacks, each containing at least 10 pieces of any combination of Package Services, or contained in overflow sacks under 7.2.2, provided all other requirements for the DDU rate in 466.2.0 through 466.5.0 are met.

c. Presorted Library Mail 5-digit rates apply to parcels that are contained in 5-digit scheme and 5-digit sacks, each containing at least 10 pieces of any combination of Package Services, or contained in overflow sacks under 7.2.2.

d. Presorted Media Mail 5-digit rates apply to parcels that are contained in 5-digit scheme and 5-digit sacks, each containing at least 10 pieces of any combination of Package Services, or contained in overflow sacks under 7.2.2.

e. Single-piece rate parcels that are contained in 5-digit scheme and 5-digit sacks, each containing at least 10 pieces of any combination of Package Services, or contained in overflow sacks under 7.2.2, qualify for their applicable single-piece rates.

7.2.2 Sack Preparation

Only 5-digit scheme and 5-digit sacks may be prepared. Each sack of combined Package Services mail must contain at least 10 pieces. One overflow sack containing fewer than 10 pieces is permitted per 5-digit scheme and 5-digit destination.

7.2.3 Sack Labeling

Sack labels must be prepared as follows:

a. 5-digit scheme (optional):

1. Line 1: use L606, Column B.

2. Line 2: "PSVC PARCELS 5D SCH."

b. 5-digit:

1. Line 1: use city, state, and 5-digit ZIP Code destination of pieces.

2. Line 2: "PSVC PARCELS 5D."

7.3 Combined Parcels Prepared on Pallets

7.3.1 Rate Eligibility

In addition to the applicable standards in 456.2.0, Parcel Select, and 466.2.0 through 466.5.0 in Enter and Deposit for destination entry Package Services, the following standards apply for combined Package Services prepared on pallets:

a. Parcel Select DSCF rates apply to pieces that are prepared on 5-digit scheme and 5-digit pallets, each containing at least 50 pieces and 250 pounds or 36 inches of Package Services mail, or contained in overflow sacks under 7.3.3, and deposited at a DSCF under 456.2.0. Parcel Select DDU rates apply to pieces that are prepared on 5-digit scheme and 5-digit pallets, each containing at least 50 pieces and 250 pounds or 36 inches of Package Services mail, or contained in overflow sacks under 7.3.3, and deposited at a DDU under 456.2.0.

b. Presorted Bound Printed Matter DSCF rates apply to pieces that are prepared on 5-digit scheme and 5-digit pallets, each containing at least 50 pieces and 250 pounds or at least 36 inches of Package Services mail, or contained in overflow sacks under 7.3.3, and deposited at a DSCF under 466.2.0 through 466.5.0. Presorted Bound Printed Matter DDU rates apply to pieces that are prepared on 5-digit scheme and 5-digit pallets, each containing at least 50 pieces and 250 pounds or at least 36 inches of Package Services mail, or contained in overflow sacks under 7.3.3, and deposited at a DDU under 466.2.0 through 466.5.0.

c. Presorted Library Mail 5-digit rates apply to pieces that are prepared on 5-digit scheme and 5-digit pallets, each containing at least 50 pieces and 250 pounds or 36 inches of Package Services mail, or contained in overflow sacks under 7.3.3.

d. Presorted Media Mail 5-digit rates apply to pieces that are prepared on 5-digit scheme and 5-digit pallets, each containing at least 50 pieces and 250 pounds or 36 inches of Package Services mail, or contained in overflow sacks under 7.3.3.

e. Single-piece rate parcels that are prepared on 5-digit scheme and 5-digit pallets, each containing at least 50 pieces and 250 pounds or 36 inches of Package Services mail, or contained in overflow sacks under 7.3.3, qualify for their applicable single-piece rates.

7.3.2 Pallet Preparation

Only 5-digit scheme and 5-digit pallets may be prepared. Each 5-digit scheme and 5-digit pallet of combined Package Services must contain at least: (1) 50 parcels and 250 pounds of mail, or (2) 36 inches of mail (excluding the height of the pallet). Pallets prepared using either minimum requirement may be combined in the same mailing.

7.3.3 Overflow Sacks

After filling pallets to a 5-digit scheme or 5-digit destination, any remaining pieces that do not meet the minimum pallet requirements may be prepared in 5-digit scheme or 5-digit overflow sacks. Overflow sacks must be labeled as provided in 7.2.3.

7.3.4 Pallet Labeling

Pallet labels must be prepared as follows:

a. 5-digit scheme (optional):

1. Line 1: use L606, Column B.

2. Line 2: "PSVC PARCELS 5D SCH."

b. 5-digit:

1. Line 1: use city, state, and 5-digit ZIP Code destination of pieces.

2. Line 2: "PSVC PARCELS 5D."

7.4 Documentation

Separate postage statements are required for each of the separate mailings contained within the combined mailing. All postage statements must be provided at the time of mailing and must be accompanied by a BMS-approved manifest prepared in accordance with 2.0 and this section.

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8.0 Preparation for Pallets

8.1 Physical Characteristics

8.1.1 Standards

All pallets presented to the USPS, whether USPS-provided or mailer-provided, must meet the standards in 8.1.2 through 8.1.4. Mail on such pallets must meet the standards for the class and rate claimed.

8.1.2 Construction

Pallets must be made of high-quality material that can hold loads equal to a gross weight of 2,200 pounds. Pallets must measure 48 by 40 inches and must allow four-way entry by forklift trucks and two-way entry by pallet jacks.

8.1.3 Securing Pallets

Except for stacked pallets under 8.3.1 and pallet boxes under 8.4.3, each loaded pallet of mail must be prepared to maintain the integrity of the mail and the entire pallet load during transport and handling using one of the following methods:

a. Securing with at least two straps or bands of appropriate material. Wire or metal bands, straps, buckles, seals, and similar metal fastening devices cannot be used.

b. Wrapping with stretchable or shrinkable plastic.

c. Securing with at least two straps or bands of appropriate material and wrapping with stretchable or shrinkable plastic. Wire and metal bands and straps, metal buckles, metal seals, and similar metal fastening devices cannot be used.

8.1.4 Nonconforming Mailer

The USPS informs any mailer or mailer's agent who presents palletized mailings, including plant-verified drop shipment (PVDS), when the mailer's pallets fail to meet basic pallet integrity and safety standards. After a mailer is notified and allowed to make changes to improve load integrity, if the mailer's methods, or those of the mailer's agent, do not work, the mailer is considered nonconforming. A nonconforming mailer must meet the specifications for nonconforming mailers for top-cap use, stacking of pallets, pallet box construction, and maximum height/tiers of trays in 8.2 through 8.5, respectively. A mailer is suspended from the pallet program if the mailer's pallets continue to fail to meet the minimum load integrity levels after being notified and allowed to make changes.

8.2 Top Caps

8.2.1 Use

Top caps are used as follows:

a. Except as provided below, all pallets of sacks, trays, parcels, bundles of mail, or pallet boxes must be top-capped if the pallets are stacked two, three, or four tiers high when presented to the USPS for acceptance.

b. The top pallet need not be top-capped if the strapping or banding securing the stacked pallets together neither damages the mail on the top pallet nor allows the stack to shift.

c. Lower pallet(s) containing either parcels or bundles of mail need not be top-capped if the top surface of each pallet load provides a sturdy, flat surface, parallel to the pallet base, that allows safe and efficient stacking of pallets placed on top and prevents sliding of the top pallet(s), damage to the loaded mail, or crushing of the load.

8.2.2 Construction

Any material may be used as a top cap if it provides a flat, level surface horizontal to the base pallet, protects the integrity of the mail below it while supporting a loaded pallet above, and allows easy entry of a forklift to remove the upper pallet(s). Flimsy paper or fiberboard (e.g., the ends of paper rolls) or similar material is inadequate and may not be used as a top cap.

8.2.3 Securing

A top cap must be secured to the pallet horizontal to the plane of the base pallet, with either stretchwrap or at least two crossed straps or bands, so that the cap stays in place to protect the mail and maintain the integrity of the pallet load.

8.2.4 Use by Nonconforming Mailer

A nonconforming mailer (see 8.1.4) must use top caps on all pallets of sacks, letter mail trays, parcels, or bundles of mail, regardless of weight, or on pallets containing pallet boxes no more than 60 inches high. Top caps must be approximately 48 by 40 inches and meet one of these construction standards:

a. Five-wood boards, with uniform edges and nine-leg pallet contact for stacking.

b. Fiberboard box-end style, with a minimum 3-inch side and wall material of at least double-wall corrugated fiberboard C-flute and/or B-flute.

c. Fiberboard honeycomb covered on both sides, with heavy linerboard at least 1/2 inch thick.

d. Corrugated fiberboard C-flute sheet covering the entire top of the load, with standard pallet solid fiberboard corner edge protectors.

8.3 Stacking Pallets

8.3.1 Physical Characteristics

Pallets may be stacked two, three, or four tiers high if:

a. The combined gross weight of the stacked pallets (pallets, top caps, and mail) does not exceed 2,200 pounds.

b. The heaviest pallet is on the bottom and the lightest is on the top.

c. Individual pallets are secured with straps or stretchable or shrinkable plastic as specified in 8.1.3.

d. The stack of pallets is secured with at least two straps or bands of appropriate material to maintain the integrity of the stacked pallets during transport and handling. Wire or metal bands, straps, buckles, seals, and similar metal fastening devices cannot be used. The stack of pallets cannot be secured together with stretchable or shrinkable plastic.

e. Each pallet is top-capped as specified in 8.2.

f. The combined height of the stacked pallets and their loads does not exceed 84 inches. Exception: Pallets prepared for entry at Anchorage or Fairbanks, Alaska, cannot exceed 72 inches (pallets, top caps, and mail).

8.3.2 Pallet Height Restriction for Nonconforming Mailer

A nonconforming mailer (see 8.1.4) who stacks pallets is subject to the requirements of 8.3.1 with the additional restrictions that the combined height of any stacked pallets may not exceed 77 inches and that stacking pallets four tiers high is permitted only for pallets of parcels.

8.4 Pallet Boxes

8.4.1 Use

A mailer may use pallet boxes constructed of single-, double-, or triple-wall corrugated fiberboard placed on pallets to hold sacks or parcels. Pallet boxes must protect the mail and maintain the integrity of the pallet loads throughout transportation, handling, and processing. Single-wall corrugated fiberboard may be used only for light loads (such as lightweight parcels) that do not require transportation by the USPS beyond the entry office, or for Parcel Post DSCF rate mail. Mailers must supply their own pallet boxes. The base of the boxes must measure approximately 40 by 48 inches. Pallet standards require the use of pallet boxes meeting the size requirements in 8.4.2 for machinable Parcel Post claiming OBMC Presort and BMC Presort discounts. Pallet standards prohibit use of pallet boxes for nonmachinable Parcel Post claiming OBMC Presort and BMC Presort discounts. Pallet boxes meeting the size dimensions in 8.4.2 also may be used at the mailer's option for Parcel Post DSCF and Parcel Post DDU rate mail.

8.4.2 Height

The combined height of a single pallet, pallet box, and mail may not exceed 77 inches. The contents of the box may not extend above the top rim of the box. For all Package Services mailings entered at a DSCF or DDU, the height of the pallet box may not exceed 60 inches (excluding the pallet). For Parcel Post OBMC Presort and BMC Presort rate mailings of machinable pieces, the height of the pallet box must not exceed 69 inches (excluding the pallet).

8.4.3 Securing

Pallet boxes must be secured to the pallet with strapping, banding, stretchable plastic, shrinkwrap, or other material (wire or metal bands, straps, buckles, seals, and similar metal fastening devices cannot be used) that ensures that the pallet can be safely unloaded from vehicles, transported, and processed as a single unit to the point where the contents are distributed with the load intact if:

a. The pallet and its contents are transported by the USPS from the office where the mail is accepted to another postal facility where the contents are distributed; and

b. The weight of the mail in the box is not sufficient to hold the box in place on the pallet during transportation and processing.

8.4.4 Use by Nonconforming Mailer

Except when mailing Parcel Post claiming a DSCF or DDU rate, a nonconforming mailer (see 8.1.4) may use pallet boxes only if the boxes are constructed of triple-wall corrugated fiberboard (C-flute and/or B-flute material) with a maximum height (pallet and box) of 77 inches.

8.5 General Preparation

8.5.1 Presort

Pallet sortation is generally intended to presort the palletized portion of a mailing to at least the finest extent required for the corresponding class of mail and method of preparation. Pallet sortation is sequential from the lowest (finest) level to the highest and must be completed at each required level before the next optional or required level is prepared. Standard preparation terms are defined in the Mail Preparation section for each class of mail, standard presort levels are defined in 8.0, and advanced presort levels are defined in 10.0, 12.0, and 13.0. For sacks, trays, or machinable parcels on pallets, the mailer must prepare all required pallet levels before any mixed ADC or mixed BMC pallets are prepared for a mailing or job. Bundles must not be placed on mixed ADC or mixed BMC pallets. Bundles that cannot be placed on pallets must be prepared in sacks under the standards for the rate claimed. The standards for bundle reallocation to protect the SCF or BMC pallet (8.11 and 8.12) are optional methods of pallet preparation designed to retain as much mail as possible at the SCF or BMC level. These standards may result in some bundles of Periodicals flats and irregular parcels and Standard Mail flats that are part of a mailing job prepared in part as palletized flats at automation rates not being placed on the finest level of pallet possible. Mailers must use PAVE-certified presort software to prepare mailings using bundle reallocation (bundle reallocation is optional, but if performed, it must be done for the complete mailing job).

8.5.2 Required Preparation

These standards apply to:

a. Periodicals, Standard Mail, and Package Services (except for Parcel Post mailed at BMC Presort, OBMC Presort, DSCF, and DDU rates). A pallet must be prepared to a required sortation level when there are 500 pounds of bundles, sacks, or parcels or 72 linear feet or six layers of letter trays. For bundles of Periodicals flats and irregular parcels and bundles of Standard Mail flats on pallets that are prepared under the standards for bundle reallocation to protect the SCF pallet (8.11), not all mail for a 5-digit scheme carrier routes, 5-digit scheme, 5-digit carrier routes, or 5-digit pallet or for a merged 5-digit scheme, merged 5-digit, or 3-digit pallet is required to be on that corresponding pallet level. For bundles of Standard Mail flats on pallets prepared under the standards for bundle reallocation to protect the BMC pallet (8.12), not all mail for a required ASF pallet must be on an ASF pallet. Mixed ADC or mixed BMC pallets of sacks, trays, or machinable parcels, as appropriate, must be labeled to the BMC or ADC (as appropriate) serving the post office where mailings are entered into the mailstream. The processing and distribution manager of that facility may issue a written authorization to the mailer to label mixed BMC or mixed ADC pallets to the post office or processing and distribution center serving the post office where mailings are entered. These pallets contain all mail remaining after required and optional pallets are prepared to finer sortation levels.

b. Parcel Post mailed at BMC Presort, OBMC Presort, DSCF, and DDU rates. Pallets must meet the requirements specifically prescribed for these rates.

8.5.3 Minimum Load

[5-12-05] The following minimum load standards apply to mail prepared on pallets:

a. For Periodicals, Standard Mail, and Package Services (except for Parcel Post mailed at BMC Presort, OBMC Presort, DSCF, and DDU rates):

1. In a single mailing, the minimum load per pallet is 250 pounds of bundles, parcels, or sacks, except as provided in items 2 through 4 below. When preparing letter trays on pallets, the minimum load is 36 linear feet or three layers of letter trays.

2. There is no minimum load for pallets entered at a destination delivery unit (DDU) if the mail on those pallets is for that unit's service area.

3. A pallet may contain a minimum of 100 pounds of nonletter‑size mail in bundles on any pallet that is a BMC/ASF pallet entered at the destination BMC or ASF; an ADC pallet entered at the destination ADC; an SCF pallet entered at the destination SCF; the only pallet entered at an individual destination BMC/ASF, ADC, or SCF facility.

4. At an SCF, a 5-digit, 3-digit, or SCF pallet may contain less than the required minimum load of mail for that SCF's service area only if the SCF manager provides written authorization for such preparation.

b. Parcel Post mailed at BMC Presort, OBMC Presort, DSCF, and DDU rates. A minimum load for the rate claimed may be stated in terms of weight, combined piece minimum and weight, or minimum height. There are separate minimum mail heights for machinable parcels and for nonmachinable parcels claimed at OBMC Presort and BMC Presort rates. Mail entered at the Parcel Post DSCF rates and prepared directly on pallets or in pallet boxes on pallets must be prepared under either a minimum height requirement or under one of two options requiring a minimum number of pieces and pounds per pallet. There is no minimum weight requirement for an SCF pallet containing 5-digit scheme and 5-digit sacks prepared for the DSCF rate. There are no minimums for the Parcel Post DDU rate.

8.5.4 Minimum Height of Mail

The definitions of the minimum height of mail used to qualify for OBMC Presort, BMC Presort, and DSCF Parcel Post rates are as follows:

a. Machinable parcels. The minimum height of mail in a pallet box is the shortest vertical distance measured from the bottom of a pallet box to the top of the lowest mailpiece. The height of the pallet is not included in this measurement.

b. Nonmachinable parcels. The minimum height of mail on a pallet is the shortest vertical distance measured from the top of the pallet to the top of the lowest mailpiece. The height of the pallet is not included in this measurement.

8.5.5 Maximum Load

The maximum weight (mail and pallet) is 2,200 pounds. The maximum height of a single pallet (mail and pallet) is 77 inches for bundles, parcels, sacks, or pallet boxes, or 77 inches or 12 layers of trays (whichever occurs first) for letter trays. Exception: A single pallet that is prepared for entry at Anchorage or Fairbanks, Alaska, has a maximum height of 72 inches (pallet, top cap, and mail).

8.5.6 Mail on Pallets

These standards apply to mail on pallets:

a. Pieces in trays, bundles, and sacks must be prepared under the standards for the class of mail and rate claimed.

b. When two or more Periodicals mailings, two or more Standard Mail mailings, or two or more Bound Printed Matter mailings are placed together on pallets, the mailer must keep records for each mailing as required by the standards for the class of mail.

c. For letter-size Standard Mail and Periodicals prepared in trays on pallets, carrier route rate mail (including automation carrier route) must be prepared on separate 5-digit pallets (5-digit carrier routes pallets) from non-carrier route automation rate or Presorted rate mail (5-digit pallets).

d. For determining minimum pallet volume, mail in letter trays is measured in full layers of trays or in linear feet. A 2-foot tray equals 2 linear feet; a 1-foot tray equals 1 linear foot.

e. Heavier, fuller trays must be placed at the bottom of the load.

f. For Bound Printed Matter irregular parcels, Presorted and Carrier Route rate mail may be combined on all levels of pallet. For Bound Printed Matter flats, Presorted and Carrier Route rate mail may be combined on all levels of pallet except as provided in 8.5.6g.

g. For sacks of Periodicals, Standard Mail, and Bound Printed Matter flats or irregular parcels, carrier route rate mail must be prepared on separate 5-digit pallets from automation rate and/or presorted rate mail.

h. Periodicals, Standard Mail, and Bound Printed Matter flats or irregular parcels prepared in carrier route and noncarrier route 5-digit bundles may be placed on the same merged 5-digit scheme, merged 5-digit, and 5-digit metro pallet, as appropriate.

8.5.7 Arranging Pieces in a Bundle ("Facing")

Except as noted in 8.5.8, all pieces in a bundle must be "faced" (arranged with the addresses in the same read direction), with an address visible on the top piece.

8.5.8 Counter-Stacking—Sacked and Palletized Mail

Bundles of flats and other pieces of nonuniform thickness may be prepared by counter-stacking under these conditions:

a. Counter-stacking should be used only to create bundles of more uniform thickness that are more likely to maintain their integrity during transportation and processing.

b. Counter-stacking is appropriate for saddle-stitched mailpieces and pieces where one edge is thicker than other edges or one corner is thicker than other corners.

c. When counter-stacking, pieces must all have addresses facing up and be divided into no more than four approximately equal groups, with each group rotated 180 degrees from the preceding and succeeding group(s); prepare as few groups as possible to create a bundle of uniform thickness.

d. Counter-stacked groups within a bundle should be as thick as possible, generally at least 1 inch thick.

e. When pieces are nonuniform in thickness because they are thicker in the center instead of along an edge or corner, counter-stacking will generally not result in a bundle of uniform thickness (i.e., a football-shaped bundle would be created). Instead of counter-stacking such pieces, limit the height (thickness) of the bundle to 3 to 6 inches to ensure the bundle will stay together during normal transit and handling.

8.5.9 Address Visibility

[10-27-05] Mailers preparing presort bundles must ensure that the delivery address information on the top mailpiece in each bundle is visible and readable by the naked eye. Mailers using strapping that might cover the address can avoid obstructing visibility by using clear, smooth strapping tightly secured around the bundle. Mailers using barcoded pressure-sensitive bundle labels, optional endorsement lines, carrier route information lines, or carrier route facing slips also must ensure that the information in these presort designations is visible and readable by the naked eye. This standard does not apply to the following:

a. Customized MarketMail.

b. Bundles placed in or on 5-digit or 5-digit scheme (L001) sacks or pallets.

c. Bundles placed in carrier route and 5-digit carrier routes sacks.

d. Bundles of mailpieces at carrier route rates entered at a destination delivery unit (DDU).

e. Bundles of Standard Mail flat-size pieces prepared in letter trays under 345.3.4.

8.5.10 Labeling Bundles

[10-27-05] Unless excepted by standard, the presort level of each bundle (other than carrier route bundles) must be identified either with an optional endorsement line under 708.7.0 or with a barcoded pressure-sensitive bundle label. On letter-size mail (including card-size pieces), the bundle label must be placed in the lower left corner of the address side of the top piece in the bundle. On flat-size mail, the label may be placed anywhere on the address side of the top piece in the bundle. Barcoded pressure-sensitive bundle labels must not obscure the delivery address block. Banding or shrinkwrap must not obscure any bundle label. The following colors and presort characters apply to bundle labels:

a. Firm (Periodicals use only), blue Label F.

b. Five-digit presort level, red Label 5.

c. Three-digit presort level, green Label 3.

d. ADC presort level, pink Label A.

e. Mixed ADC presort level, tan Label X.

8.5.11 Securing Bundles

Bundle preparation is subject to the following requirements:

a. Bundles must be able to withstand normal transit and handling without breakage or injury to USPS employees.

b. Bundles must be secured with banding, shrinkwrap, or shrinkwrap plus one or more bands. Banding includes plastic bands, rubber bands, twine/string, and similar material. Use of wire or metal banding is not permitted.

c. When one band is used, it must be placed tightly around the girth (narrow dimension).

d. Except under 8.5.12, bundles over 1 inch high (thick) must be secured with at least two bands or with shrinkwrap. When double banding is used to secure bundles, it must encircle the length and girth of the bundle at least once. Additional bands may be used if none lies within 1 inch of any bundle edge.

e. Banding tension must be sufficient to tighten and depress the edges of the bundle so pieces will not slip out of the banding during transit and processing. Loose banding is not allowed.

f. When twine/string is used to band bundles, the knot(s) must be secure so the banding does not come loose during transit and processing.

8.5.12 Bundles on Pallets

[7-7-05] In addition to 8.5.7 through 8.5.11, bundles on pallets must meet the following standards:

a. Except as noted in 8.5.12b, mailers must secure bundles up to 1 inch in height (thickness) with shrinkwrap or with banding placed at least once around the girth.

b. All bundles placed on BMC pallets must be secured with at least two bands, with shrinkwrap, or with shrinkwrap plus one or more bands.

8.5.13 Sacked Mail

Mail that is not palletized (e.g., the mailer chooses not to prepare BMC pallets, or the bundles do not meet the machinability standards in 8.5.7 through 8.5.12) must be prepared under the standards for the rate claimed. For Periodicals, the mailer must separately sack bundles of each publication that are not palletized or that are excluded from palletization. Trays that are not palletized must be bedloaded. Sacks (including sacks of bundles not placed on pallets) containing bundles remaining after all pallets are prepared may be presented with the palletized mail (and reported on the same postage statement) if separated from the palletized portion of the mailing.

8.5.14 Nonconforming

For a nonconforming mailer (see 8.1.4) of letter-size mail in trays, the combined height of a pallet and its load cannot exceed six layers of MM or EMM letter trays.

8.6 Pallet Labels

8.6.1 Placement

At least two clearly visible labels must be affixed on two adjacent sides of each pallet.

8.6.2 Specifications

Pallet labels must be pink for Periodicals mail or white for Standard Mail and Package Services mail. Pallet labels must measure at least 8 inches by 11 inches.

8.6.3 Lettering

[7-7-05] Lettering for required information on pallet labels must be at least 1/2 inch high (or at least 48-point type). Exception: When customers apply USPS-specified pallet barcodes to pallet labels, the lettering for the required information on line 3 (origin line) must be at least 1/8 inch high (or at least 12-point type).

8.6.4 Line 1 (Destination Line)

Line 1 (destination line) must meet these standards:

a. Placement. Line 1 must be the first visible line on the label. It must be completely visible and legible when placed on the pallet. If the pallet label does not provide enough space for all required Line 1 information, the destination ZIP Code may be placed right-justified on the line immediately below the rest of Line 1 and above Line 2 (content line). A standard abbreviation for the destination city name may be used.

b. Information. Line 1 must contain only the information specified by standard, including the appropriate destination facility prefix (e.g., "ADC"). Two zeros may follow the 3-digit ZIP Code prefix required by labeling standards (e.g., 223 as 22300).

c. Overseas Military Mail. On 5-digit pallets for overseas military destinations, Line 1 shows, from left to right, "APO" or "FPO," followed by "AE" (for ZIP Codes within the ZIP Code prefix range 090-098), "AA" (for ZIP Codes within the 3-digit ZIP Code prefix 340), or "AP" (for ZIP Codes within the ZIP Code prefix range 962-966), followed by the destination 5-digit ZIP Code of the mail on the pallet.

8.6.5 Line 2 (Content Line)

Line 2 (content line) must meet these standards:

a. Content Line Information: Pallet labels must indicate whether the mail on the pallet is barcoded, or not barcoded, or both. The content line (line 2 of required information) must be the second visible line on the label. This line must show the class and processing category of the mail on the pallet and other information as specified by standard. If the content line of a pallet label does not provide enough space for all required information, the content information may be continued right-justified on the line immediately below the content line and above the office of mailing or mailer information line.

b. Codes: The codes shown below must be used as appropriate on Line 2 of sack, tray, and pallet labels.

Content type	Code
Barcoded	BC
Barcoded and Nonbarcoded	BC/NBC
Carrier Route	C (type of route)
Carrier Routes	CR-RT or CR-RTS
Digit	D
Flats	FLTS
General Delivery Unit	G
Highway Contract Route	H
Irregular Parcels	IRREG (Periodicals, Standard Mail, and Package Services only)
Letters	LTR or LTRS
Machinable	MACH
Manual (cannot be processed on automated equipment or mailer requests manual processing)	MAN or MANUAL
Mixed	MXD
Mixed Machinable and Irregular Parcels	MACH & IRREG (Standard Mail only)
Nonmachinable	NON MACH
Nonbarcoded	NON BC (sacks) NBC (pallets and cotrayed or cosacked mail under 705.9.0)
Nonmachinable Parcels	NON MACH
Package Services	PSVC
Parcels	PARCELS (First-Class Mail and Package Services only)
Periodicals	PER (see 707.21.1.3) NEWS (see 707.21.1.3)
Post Office Box Section	B
Rural Route	R
Scheme	SCH
Standard Mail	STD
Working	WKG

8.6.6 Line 3 (Origin Line)

The office of mailing or mailer information line (line 3 of required information) must be the bottom line of required information and must show either the city and state of the entry post office or the mailer's name and the city and state of the mailer's location. It is recommended that the mailer's name also appear with the city and state of the entry post office.

8.6.7 5-Digit, 5-Digit Carrier Routes, and 5-Digit Scheme Carrier Routes Pallets

All 5-digit carrier routes or 5-digit scheme carrier routes pallets must show the words "CARRIER ROUTES" (or "CR-RTS") after the processing category description on the content line under 8.0, 10.0, 12.0, and 13.0. 5-digit pallets of Bound Printed Matter that contain only carrier route rate mail also must show the words "CARRIER ROUTES" (or "CR-RTS") after the "5D" pallet level description on the contents line.

8.6.8 Extraneous Information

Extraneous information is permitted on pallet labels if:

a. The print size is smaller than a 1/2 inch.

b. It does not consist of a numbered series resembling a ZIP Code or 3-digit ZIP Code prefix.

c. It does not appear on or between the lines reserved for USPS required information (blank lines are permitted). Exception: For combined mailings of Standard Mail and Package Services machinable parcels, mailer codes and extraneous information may appear between the content line and the office of mailing or mailer information line.

d. It is below the office of mailing or mailer information line.

e. A 1-inch clear space is maintained around the lines reserved for USPS required information.

f. On the office of mailing or mailer information line, the mailer's name or abbreviation, "Mailer," "From" (or "FR"), "Entered at," or a similar notation precedes the required information, or mailer codes or other extraneous information appear to the right of the required information.

8.6.9 Periodicals Publications

Except as provided in 8.15 for copalletized mailings, Periodicals publications must use one of the following for Line 2 class information:

a. "PER."

b. "NEWS" if published weekly or more often or if authorized newspaper treatment as of March 1, 1984.

8.6.10 Pallet Bundle Information

It is recommended that mailers preparing bundles on pallets add to the pallet label, below the office of mailing or mailer information line and according to the provisions of 8.6.8, additional information listing the number of bundles for each bundle sortation and rate level on the pallet (i.e., the number of carrier route bundles, the number of 5-digit, 3-digit, and ADC automation rate bundles, and the number of 5-digit, 3-digit, and ADC Presorted rate bundles on each pallet).

8.7 Copalletized, Combined, or Mixed-Rate Level Mailings of Flat-Size Pieces

8.7.1 General

Palletized mailings (including combined, copalletized, and mixed rate level mailings) must be prepared under the standards for the class of mail, subject to specific authorization by Business Mailer Support when required.

8.7.2 Application

The mailer (or publisher or agent) must submit a written request to Business Mailer Support to present the types of pallets described in this section. A separate request is required for each type of pallet at each location, but multiple, concurrent applications are acceptable. A mailer who cannot meet the minimum palletization standards without copalletizing, combining, or commingling mixed rate mailings might still qualify if the total copalletized, combined, or commingled mailing meets minimum pallet standards. The request must be received at least 30 days before the first mailing and include the names, addresses, and telephone numbers of the mail owner and of the firm or person preparing the mail; a description of the mailing (e.g., size, weight, class, rate, volume, mailing frequency, and postage payment method); the type of authorization requested; and a sample of the applicable documentation under 8.0, or 10.0, 12.0, and 13.0.

8.7.3 Periodicals Publications

To combine more than one Periodicals publication on pallets, the mailer must merge and presort copies of all the publications into common bundles to achieve the finest presort level for the combined mailing. To copalletize different Periodicals flat-size publications, the mailer must consolidate on pallets all independently sorted bundles for each publication to achieve the finest presort level for the mailing. A combined or copalletized mailing prepared under 8.11, Bundle Reallocation to Protect SCF Pallet for Periodicals Flats and Irregular Parcels and Standard Mail Flats on Pallets, using bundle reallocation, may not always result in all bundles being placed on the finest pallet level possible. Both combined and copalletized publications must be supported by the documentation required in 8.0, or 10.0, 12.0, and 13.0. Preferred Periodicals may be combined with Regular Periodicals only as permitted by standard.

8.7.4 Standard Mail

To copalletize different Standard Mail flat-size mailings, the mailer must consolidate on pallets all independently sorted bundles from each mailing to achieve the finest presort level for the mailing, except that a copalletized mailing prepared under 8.11 or 8.13 using the bundle reallocation option may not always result in all bundles being placed on the finest pallet level possible. At the time of mailing, the mailer must present computer-generated listings required in 8.0, or 10.0, 12.0, and 13.0 that include a summary list consolidating the copalletized multiple mailings and a list of the contents of each pallet by ZIP Code and presort level.

8.7.5 Cancellation

An authorization may be canceled by Business Mailer Support if the mailer does not meet the standards for pallets or the rates claimed or the mailer does not submit information on future mailings as requested by Business Mailer Support. A mailer may appeal canceled authorizations through Business Mailer Support to the Business Mail Acceptance manager, USPS Headquarters.

8.8 Basic Uses

These types of mail may be palletized:

a. Letter-size mail in trays.

b. Bundles of nonletter-size mail not prepared in sacks.

c. Bundles or parcels in sacks.

d. Machinable or irregular parcels.

e. Copalletized multiple flat-size mailings, subject to 8.0, Preparation for Pallets.

f. Combined mailings of machinable parcels (Standard Mail and Package Services), subject to 6.0.

g. Two or more Periodicals publications combined or copalletized, subject to 8.0.

h. Combined mailings of Nonprofit Standard Mail mixed rate levels, subject to 8.0.

i. Commingled zoned rate Package Services, subject to 455.4.1.4.

8.9 Bundles on Pallets

8.9.1 Applicability

Presort destination bundles of Periodicals, Standard Mail, and Package Services flats and irregular parcels may be placed directly on pallets under 8.9.2 through 8.9.5, 8.10. Mail that cannot be placed on pallets must be prepared in sacks under the applicable standards in 707.22.0 through 707.26.0 for Periodicals, 245.5.0 and 245.6.0 for Standard Mail letters, 345.5.0 and 345.6.0 for Standard Mail flats, 365.5.0 and 365.6.0 for Bound Printed Matter flats, 375.5.0 for Media Mail flats, 385.5.0 for Library Mail flats, 445.5.0 and 445.6.0 for Standard Mail Parcels, 455.4.0 Parcel Post parcels, 465.5.0 and 465.6.0 for Bound Printed Matter parcels, 475.5.0 for Media Mail parcels, and 485.5.0 for Library Mail parcels. Sacks containing any remaining bundles after all pallets are prepared may be presented with the palletized portion of the mailing job (and, subject to 8.15.5, reported on the same postage statement) if the sacked portion is presented separately from the palletized portion.

8.9.2 Basic Bundling Standards

Bundle preparation for Periodicals, Standard Mail, and Package Services mailpieces must meet the applicable standards in 707.18.0, 707.19.0 and 707.22.0 through 707.26.0 for Periodicals, 245.1.0, 245.2.0 and 245.5.0 through 245.7.0 for Standard Mail letters, 345.1.0, 345.2.0, 345.5.0 and 345.6.0 for Standard Mail flats, 365.1.0, 365.2.0, 365.5.0 and 365.6.0 for Bound Printed Matter flats, 445.1.0, 445.2.0, 445.5.0 and 445.6.0 for Standard Mail parcels, and 465.1.0 and 465.2.0 for Bound Printed Matter parcels, except as noted in 8.9.3 through 8.9.5 in Bundles on Pallets. Bundles may be sorted onto pallets under 8.10, as well as 10.0, 12.0, and 13.0.

8.9.3 Periodicals

Bundle size: Six-piece minimum (lower volume bundles permitted under 707.22.0, Preparation of Presorted Periodicals, and 707.23.0, Preparation of Carrier Route Periodicals), 20-pound maximum, except that:

a. Firm bundles may contain as few as two copies of a publication and do not have to be further consolidated with other bundles to the same 5-digit destination. A firm bundle may be counted as one piece for presort standards (see 707.22.0 and 707.23.0).

b. All pieces for the same presort destination must be in one bundle if they weigh less than 10 pounds. Otherwise, bundles must weigh from 10 to 20 pounds each.

c. The last bundle to a presort destination may contain less than 10 pounds.

8.9.4 Standard Mail

Bundle size: 10-piece or 15-piece minimum as applicable; 20-pound maximum, except that:

a. All pieces for the same presort destination must be in one bundle if they weigh less than 10 pounds. Otherwise, bundles must weigh from 10 to 20 pounds each.

b. The last bundle to a presort destination may contain less than 10 pounds.

8.9.5 Bound Printed Matter

Bound Printed Matter on pallets must be bundled as follows:

a. Minimum Bundle Size. Bundle mail under the minimum bundle size of "10 pieces or 10 pounds, whichever comes first" according to these standards:

1. For identical-weight pieces, a single-piece weight of 1 pound results in 10 pieces weighing 10 pounds. Identical-weight pieces weighing 1 pound or less must be prepared using the 10-piece minimum; those that weigh more must be prepared using the 10-pound minimum.

2. For nonidentical-weight pieces, mailers must either use the minimum that applies to the average piece weight for the entire mailing (divide the net weight of the mailing by the number of pieces; the resulting average single-piece weight determines whether the 10-piece or 10-pound minimum applies). Alternatively, bundle by the actual piece count or mail weight for each bundle destination, provided documentation can be presented with the mailing that shows (specifically for each bundle) the number of pieces and their total weight.

3. Mailers must note on the accompanying postage statement whether they applied the 10-piece or 10-pound threshold, or both.

b. Presorted and Carrier Route Bound Printed Matter:

1. Only individual pieces of flats or irregular parcels that weigh less than 10 pounds each may be prepared as bundles on pallets. Presorted rate pieces that weigh 10 or more pounds each must be prepared and palletized as machinable parcels under 8.10.3, Package Services Flats—Bundles and Sacks, or prepared in sacks under 365.5.0 for flats and 465.5.0 for parcels. Carrier route pieces that individually weigh 10 or more pounds each must either be prepared and palletized as machinable parcels under 8.10.3, Package Services Flats—Bundles and Sacks, and qualify for Presorted rates or be prepared in sacks under 365.6.0 for flats and 465.6.0 for parcels and qualify for carrier route rates.

2. Bundles must be prepared under 365.5.0 for presorted flats, 365.6.0 for carrier route flats, 465.5.0 for presorted parcels, and 465.6.0 for carrier route parcels, or 11.0 as appropriate. The minimum bundle size is 10 addressed pieces or 10 pounds, whichever occurs first, except that the last bundle to a presort destination may contain fewer than 10 pieces or weigh less than 10 pounds. When there are at least 10 pieces but less than 10 pounds for a presort destination, the pieces must be prepared in a single physical bundle. The maximum physical bundle size for pallets prepared under 8.10.3a through 8.10.3g, and 8.10.4a through 8.10.4g is 40 pounds. The maximum physical bundle size for pallets prepared under 8.10.3h through 8.10.3l, and 8.10.4h through 8.10.4l is 20 pounds. The total number of bundles for a single presort destination must not exceed the number of 10-pound increments to that destination. Each physical bundle must contain at least two addressed pieces.

8.10 Pallet Presort and Labeling

8.10.1 Periodicals—Bundles, Sacks, or Trays

[10-27-05] Pallets must be prepared under 8.0 in the sequence listed below and completed at each required level before the next optional or required level is prepared. Unless indicated as optional, all sort levels are required under the conditions shown. See 707.28.0 for additional requirements for destination entry rates eligibility. For mailings of sacks or trays on pallets, pallet preparation begins with 8.10.1e. Pallets must be labeled according to the Line 1 and Line 2 information listed below and under 8.6. All pallets prepared under 8.10.1 may contain firm bundles, and pallets prepared under 8.10.1a through 8.10.1i may contain low-volume bundles. Bundles of Periodicals nonletters (flats and irregular parcels) may also be palletized under 10.0, 12.0, or 13.0.

a. Merged 5-Digit Scheme (required). Permitted for bundles only. Not permitted for bundles containing noncarrier route AFSM 100-compatible flats under 301.3.3. Required for bundles containing all other flats or irregular parcels. Pallet must contain carrier route bundles and noncarrier route 5-digit bundles (automation rate and/or Presorted rate bundles) for the same 5-digit scheme under L001. For 5-digit destinations not part of L001, merged 5-digit pallet preparation begins with 8.10.1d. Pallet labeling:

1. Line 1: L001.

2. Line 2: "PER" or "NEWS," as applicable; followed by "FLTS" or "IRREG," as applicable; followed by "CR/5D"; followed by "SCHEME" (or "SCH").

b. 5-Digit Scheme Carrier Routes (required). Permitted for bundles only. Pallet must contain only carrier route bundles for the same 5-digit scheme under L001. For 5-digit destinations not part of L001, 5-digit carrier routes pallet preparation begins with 8.10.1e. Pallet labeling:

1. Line 1: L001.

2. Line 2: "PER" or "NEWS," as applicable; followed by "FLTS" or "IRREG," as applicable; followed by "CARRIER ROUTES" (or "CR-RTS"); followed by "SCHEME" (or "SCH").

c. 5-Digit Scheme (required). Permitted for bundles only. Not permitted for bundles containing AFSM 100-compatible flats under 301.3.3. Required for bundles containing all other flats and irregular parcels. Pallet must contain only 5-digit bundles of automation rate and/or Presorted rate mail for the same 5-digit scheme under L001. For 5-digit destinations not part of L001, 5-digit pallet preparation begins with 8.10.1f. Pallet labeling:

1. Line 1: L001.

2. Line 2: "PER" or "NEWS," as applicable; followed by "FLTS" or "IRREG," as applicable; followed by "5D"; followed by "BARCODED" (or "BC") if pallet contains automation rate mail; followed by "NONBARCODED" (or "NBC") if pallet contains Presorted rate mail; followed by "SCHEME" (or "SCH").

d. Merged 5-Digit (required). Permitted for bundles only. Not permitted for bundles containing noncarrier route AFSM 100-compatible flats under 301.3.3. Required for bundles containing all other flats or irregular parcels. Pallet must contain carrier route bundles and noncarrier route 5-digit bundles (automation rate and/or Presorted rate bundles) for the same 5-digit ZIP Code. Pallet labeling:

1. Line 1: city, state, and 5-digit ZIP Code destination (see 8.6.4c for overseas military mail).

2. Line 2: "PER" or "NEWS," as applicable; followed by "FLTS" or "IRREG," as applicable; followed by "CR/5D."

e. 5-Digit Carrier Routes (required except for trays). Permitted for bundles, sacks, and trays. Pallet must contain only carrier route mail for the same 5-digit ZIP Code. Pallet labeling:

1. Line 1: city, state, and 5-digit ZIP Code destination (see 8.6.4c for overseas military mail).

2. Line 2: "PER" or "NEWS," as applicable; followed by "FLTS," "IRREG," or "LTRS," as applicable; followed by "CARRIER ROUTES" (or "CR-RTS").

f. 5-Digit (required except for trays). Permitted for bundles, sacks, and trays. Pallet must contain only automation rate and/or Presorted rate mail for the same 5-digit ZIP Code or the same 5-digit scheme under L007 (for AFSM 100-compatible flats only under 301.3.3). Five-digit scheme (L007) bundles are assigned to pallets according to the OEL "label to" 5-digit ZIP Code. Pallet labeling:

1. Line 1: city, state, and 5-digit ZIP Code destination (see 8.6.4c for overseas military mail).

2. Line 2: "PER" or "NEWS," as applicable; followed by "FLTS," "IRREG," or "LTRS," as applicable; followed by "5D"; followed by "BARCODED" (or "BC") if pallet contains automation rate mail; followed by "NONBARCODED" (or "NBC") if pallet contains Presorted rate mail.

g. 5-Digit Metro (optional). Permitted for bundles only. Pallet may contain carrier route, automation rate, and/or Presorted rate bundles for the 5-digit ZIP Codes in L006, Column A, and for 3-digit ZIP Code groups in L006, Column B. Pallet labeling:

1. Line 1: L006.

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

h. 3-Digit (optional). Option not available for 3-digit ZIP Code prefixes marked "N" in L002. Permitted for bundles, sacks, and trays. Pallet may contain carrier route, automation rate, and/or Presorted rate mail for the same 3-digit ZIP Code or the same 3-digit scheme under L008 (for AFSM 100-compatible flats only under 301.3.0). Three-digit scheme (L008) bundles are assigned to pallets according to the OEL "label to" 3-digit ZIP Code. Pallet labeling:

1. Line 1: L002, Column A.

2. Line 2: "PER" or "NEWS," as applicable; followed by "FLTS," "IRREG," or "LTRS," as applicable; followed by "3D"; followed by "BARCODED" (or "BC") if pallet contains automation rate mail; followed by "NONBARCODED" (or "NBC") if pallet contains carrier route and/or Presorted rate mail.

i. SCF (required). Permitted for bundles, sacks, and trays. Pallet may contain carrier route, automation rate, and/or Presorted rate mail for the 3-digit ZIP Code groups in L005. Pallet labeling:

1. Line 1: L002, Column C.

2. Line 2: "PER" or "NEWS," as applicable; followed by "FLTS," "IRREG," or "LTRS," as applicable; followed by "SCF"; followed by "BARCODED" (or "BC") if pallet contains automation rate mail; followed by "NONBARCODED" (or "NBC") if pallet contains carrier route and/or Presorted rate mail.

j. ADC (required). Permitted for bundles, sacks, and trays. Pallet may contain carrier route, automation rate, and/or Presorted rate mail for the 3-digit ZIP Code groups in L004. Pallet labeling:

1. Line 1: L004.

2. Line 2: "PER" or "NEWS," as applicable; followed by "FLTS," "IRREG," or "LTRS," as applicable; followed by "ADC"; followed by "BARCODED" (or "BC") if pallet contains automation rate mail; followed by "NONBARCODED" (or "NBC") if pallet contains carrier route and/or Presorted rate mail.

k. Mixed ADC (optional). Permitted for sacks and trays only. Pallet may contain carrier route, automation rate, and/or presorted rate mail. Pallets must not contain origin mixed ADC (OMX) sacks. Pallet labeling:

1. Line 1: "MXD" followed by city, state, and ZIP Code information for ADC serving 3-digit ZIP Code prefix of entry post office as shown in L004, Column A (label to plant serving entry post office if authorized by processing and distribution manager).

2. Line 2: "PER" or "NEWS," as applicable; followed by "FLTS," "IRREG," or "LTRS," as applicable; followed by "BARCODED" (or "BC") if pallet contains automation rate mail; followed by "NONBARCODED" (or "NBC") if pallet contains carrier route and/or Presorted rate mail; followed by "WKG."

8.10.2 Standard Mail—Bundles, Sacks, or Trays

[3-17-05] [2-3-05] Pallets must be prepared under 8.0 in the sequence listed below and completed at each required level before the next optional or required level is prepared. Unless indicated as optional, all sort levels are required under the conditions shown. Irregular parcels prepared in bundles directly onto pallets are limited to those mailpieces that are of uniform thickness and more than 15 inches long or more than 12 inches high. For mailings of sacks or trays on pallets, pallet preparation begins with 8.10.1e. Pallets must be labeled according to the Line 1 and Line 2 information listed below and under 8.6. Bundles of Standard Mail flats may also be palletized under 10.0, 12.0, or 13.0.

a. Merged 5-Digit Scheme (required). Permitted for bundles only. Not permitted for bundles containing noncarrier route AFSM 100-compatible flats under 301.3.3. Required for bundles containing all other flats or irregular parcels. Pallet must contain carrier route bundles and noncarrier route 5-digit bundles (automation rate and/or Presorted rate bundles) for the same 5-digit scheme under L001. For 5-digit destinations not part of L001, merged 5-digit pallet preparation begins with 8.10.1d. Pallet labeling:

1. Line 1: L001.

2. Line 2: "STD" followed by "FLTS" or "IRREG," as applicable; followed by "CR/5D"; followed by "SCHEME" (or "SCH").

b. 5-Digit Scheme Carrier Routes (required). Permitted for bundles only. Pallet must contain only carrier route bundles for the same 5-digit scheme under L001. For 5-digit destinations not part of L001, 5-digit carrier routes pallet preparation begins with 8.10.1e. Pallet labeling:

1. Line 1: L001.

2. Line 2: "STD" followed by "FLTS" or "IRREG," as applicable; followed by "CARRIER ROUTES" (or "CR-RTS"); followed by "SCHEME" (or "SCH").

c. Merged 5-Digit (required). Permitted for bundles only. Not permitted for bundles containing noncarrier route AFSM 100-compatible flats under 301.3.3. Required for bundles containing all other flats or irregular parcels. Pallet must contain carrier route bundles and noncarrier route 5-digit bundles (automation rate and/or Presorted rate bundles) for the same 5-digit ZIP Code. Pallet labeling:

1. Line 1: city, state, and 5-digit ZIP Code destination (see 8.6.4c for overseas military mail).

2. Line 2: "STD" followed by "FLTS" or "IRREG," as applicable; followed by "CR/5D."

d. 5-Digit Carrier Routes (required except for trays). Permitted for bundles, sacks, and trays. Pallet must contain only carrier route mail for the same 5-digit ZIP Code. Pallet labeling:

1. Line 1: city, state, and 5-digit ZIP Code destination (see 8.6.4c for overseas military mail).

2. Line 2: For flats and irregular parcels, "STD" followed by "FLTS" or "IRREG," as applicable; followed by "CARRIER ROUTES" (or "CR-RTS"). For letters, "STD LTRS"; followed by "CARRIER ROUTES" (or "CR-RTS"); followed by "BC" if pallet contains barcoded letters; followed by "MACH" if pallet contains machinable letters; followed by "MAN" if pallet contains nonmachinable letters.

e. 5-Digit (required except for trays). Permitted for bundles, sacks, and trays. Pallet must contain only automation rate and/or Presorted rate mail for the same 5-digit ZIP Code or same 5-digit scheme under L007 (for AFSM 100-compatible flats only under 301.3.3). Five-digit scheme (L007) bundles are assigned to 5-digit pallets according to the OEL "label to" 5-digit ZIP Code. Pallet labeling:

1. Line 1: city, state, and 5-digit ZIP Code destination (see 8.6.4c for overseas military mail).

2. Line 2: For flats and irregular parcels, "STD" followed by "FLTS" or "IRREG," as applicable; followed by "5D"; followed by "BARCODED" (or "BC") if pallet contains automation rate mail; followed by "NONBARCODED" (or "NBC") if pallet contains Presorted rate mail. For letters, "STD LTRS 5D"; followed by "BC" if pallet contains barcoded letters; followed by "MACH" if pallet contains machinable letters; followed by "MAN" if pallet contains nonmachinable letters.

f. 5-Digit Metro (optional). Permitted for bundles only. Pallet may contain carrier route, automation rate, and/or Presorted rate bundles for the 5-digit ZIP Codes in L006, Column A, and for 3-digit ZIP Code groups in L006, Column B. Pallet labeling:

1. Line 1: L006.

2. Line 2: For flats and irregular parcels, "STD" followed by "FLTS" or "IRREG," as applicable; followed by "METRO" (or "MET"); followed by "BARCODED" (or "BC") if pallet contains automation rate mail; followed by "NONBARCODED" (or "NBC") if pallet contains carrier route and/or Presorted rate mail.

g. 3-Digit (optional). Option not available for 3-digit ZIP Code prefixes marked "N" in L002. Permitted for bundles, sacks, and trays. Pallet may contain carrier route, and/or Presorted rate mail for the same 3-digit ZIP Code or the same 3-digit scheme under L008 (for AFSM 100-compatible flats only under 301.3.0). Three-digit scheme (L008) bundles are assigned to pallets according to the OEL "label to" 3-digit ZIP Code. Pallet labeling:

1. Line 1: L002, Column A.

2. Line 2: For flats and irregular parcels, "STD" followed by "FLTS" or "IRREG," as applicable; followed by "3D"; followed by "BARCODED" (or "BC") if pallet contains automation rate mail; followed by "NONBARCODED" (or "NBC") if pallet contains carrier route and/or Presorted rate mail. For letters, "STD LTRS 3D"; followed by "BC" if pallet contains barcoded letters; followed by "MACH" if pallet contains machinable letters; followed by "MAN" if pallet contains nonmachinable letters.

h. SCF (required). Permitted for bundles, sacks, and trays. Pallet may contain carrier route, automation rate, and/or Presorted rate mail for the 3-digit ZIP Code groups in L005. Pallet labeling:

1. Line 1: L002, Column C.

2. Line 2: For flats and irregular parcels, "STD" followed by "FLTS" or "IRREG," as applicable; followed by "SCF"; followed by "BARCODED" (or "BC") if pallet contains automation rate mail; followed by "NONBARCODED" (or "NBC") if pallet contains carrier route and/or Presorted rate mail. For letters, "STD LTRS SCF"; followed by "BC" if pallet contains barcoded letters; followed by "MACH" if pallet contains machinable letters; followed by "MAN" if pallet contains nonmachinable letters.

i. ASF (required, unless bundle reallocation used under 8.12). Permitted for bundles, sacks, and trays. Pallet may contain carrier route, automation rate, and/or Presorted rate mail for the 3-digit ZIP Code groups in L602. ADC bundles, sacks, or trays are assigned to pallets according to the "label to" ZIP Code in L004 or L603, as appropriate. AADC trays are assigned to pallets according to the "label to" ZIP Code in L801. At the mailer's option, appropriate mixed ADC bundles and sacks of flats; and mixed ADC and mixed AADC trays of letters, may be sorted to ASF pallets according to the "label to" ZIP Code in L010. Mixed ADC sacks of irregular parcels may be sorted to ASF pallets according to the "label to" ZIP Code in L604. All mixed ADC bundles, sacks, and trays and mixed AADC trays must contain only pieces destinating within the ASF in Exhibit 6.1.6. Pallet labeling:

1. Line 1: L602.

2. Line 2: For flats and irregular parcels, "STD" followed by "FLTS" or "IRREG," as applicable; followed by "ASF"; followed by "BARCODED" (or "BC") if pallet contains automation rate mail; followed by "NONBARCODED" (or "NBC") if pallet contains carrier route and/or Presorted rate mail. For letters, "STD LTRS ASF"; followed by "BC" if pallet contains barcoded letters; followed by "MACH" if pallet contains machinable letters; followed by "MAN" if pallet contains nonmachinable letters.

j. BMC (required). Permitted for bundles, sacks, and trays. Pallet may contain carrier route, automation rate, and/or Presorted rate mail for the 3-digit ZIP Code groups in L601. ADC bundles, sacks, or trays are assigned to pallets according to the "label to" ZIP Code in L004 or L603, as appropriate. AADC trays are assigned to pallets according to the "label to" ZIP Code in L801. At the mailer's option, appropriate mixed ADC bundles and sacks of flats; and mixed ADC trays and mixed AADC trays of letters, may be sorted to BMC pallets according to the "label to" ZIP Code in L010. Mixed ADC sacks of irregular parcels may be sorted to ASF pallets according to the "label to" ZIP Code in L604. All mixed ADC bundles, sacks, and trays and mixed AADC trays must contain only pieces destinating within the BMC in Exhibit 6.1.6. Pallet labeling:

1. Line 1: L601.

2. Line 2: For flats and irregular parcels, "STD" followed by "FLTS" or "IRREG," as applicable; followed by "BMC"; followed by "BARCODED" (or "BC") if pallet contains automation rate mail; followed by "NONBARCODED" (or "NBC") if pallet contains carrier route and/or Presorted rate mail. For letters, "STD LTRS BMC"; followed by "BC" if pallet contains barcoded letters; followed by "MACH" if pallet contains machinable letters; followed by "MAN" if pallet contains nonmachinable letters.

k. Mixed BMC (optional). Permitted for sacks and trays only. Pallet may contain carrier route, automation rate, and/or Presorted rate mail. Pallet labeling:

1. Line 1: "MXD" followed by information in L601, Column B, for BMC serving 3-digit ZIP Code prefix of entry post office (label to plant serving entry post office if authorized by processing and distribution manager).

2. Line 2: For flats and irregular parcels, "STD" followed by "FLTS" or "IRREG," as applicable; followed by "BARCODED" (or "BC") if pallet contains automation rate mail; followed by "NONBARCODED" (or "NBC") if pallet contains carrier route and/or Presorted rate mail; followed by "WKG." For letters, "STD LTRS"; followed by "BC" if pallet contains barcoded letters; followed by "MACH" if pallet contains machinable letters; followed by "MAN" if pallet contains nonmachinable letters; followed by "WKG."

8.10.3 Package Services Flats—Bundles and Sacks

[2-3-05] Pallets must be prepared under 8.0 in the sequence listed below and completed at each required level before the next optional or required level is prepared. Unless indicated as optional, all sort levels are required under the conditions shown. Carrier route mail and Presorted rate mail with a barcode apply only to Bound Printed Matter mailings. Destination entry rate eligibility also applies only to Bound Printed Matter (see 366 for flats). At the mailer's option, all Package Services flats may be prepared for destination entry. For mailings of sacks on pallets, pallet preparation begins with 8.10.3e. Pallets must be labeled according to the Line 1 and Line 2 information listed below and under 8.6.

a. Merged 5-Digit Scheme (required). Permitted for bundles only. Not permitted for bundles containing noncarrier route AFSM 100-compatible flats under 301.3.3. Required for bundles containing all other flats. Pallet must contain carrier route bundles and noncarrier route 5-digit bundles (Presorted rate bundles) for the same 5-digit scheme under L001. For 5-digit destinations not part of L001, merged 5-digit pallet preparation begins with 8.10.3d. Pallet labeling:

1. Line 1: L001.

2. Line 2: "PSVC FLTS CR/5D"; followed by "SCHEME" (or "SCH").

b. 5-Digit Scheme Carrier Routes (required). Permitted for bundles only. Pallet must contain only carrier route bundles for the same 5-digit scheme under L001. For 5-digit destinations not part of L001, 5-digit carrier routes pallet preparation begins with 8.10.3e. Pallet labeling:

1. Line 1: L001.

2. Line 2: "PSVC FLTS"; followed by "CARRIER ROUTES" (or "CR-RTS"); followed by "SCHEME" (or "SCH").

c. 5-Digit Scheme (required). Permitted for bundles only. Not permitted for bundles containing AFSM 100-compatible flats under 301.3.3. Required for bundles containing all other flats. Pallet must contain only 5-digit bundles of Presorted rate mail for the same 5-digit scheme under L001. For 5-digit destinations not part of L001, 5-digit pallet preparation begins with 8.10.3f. Pallet labeling:

1. Line 1: L001.

2. Line 2: "PSVC FLTS 5D"; followed by "SCHEME" (or "SCH").

d. Merged 5-Digit (required). Permitted for bundles only. Not permitted for bundles containing noncarrier route AFSM 100-compatible flats under 301.3.3. Required for bundles containing all other flats. Pallet must contain carrier route bundles and noncarrier route 5-digit bundles (Presorted rate bundles) for the same 5-digit ZIP Code. Pallet labeling:

1. Line 1: city, state, and 5-digit ZIP Code destination (see 8.6.4c for overseas military mail).

2. Line 2: "PSVC FLTS CR/5D."

e. 5-Digit Carrier Routes (required). Permitted for bundles and sacks. Pallet must contain only carrier route mail for the same 5-digit ZIP Code. Pallet labeling:

1. Line 1: city, state, and 5-digit ZIP Code destination (see 8.6.4c for overseas military mail).

2. Line 2: "PSVC FLTS"; followed by "CARRIER ROUTES" (or "CR-RTS").

f. 5-Digit (required). Permitted for bundles and sacks. Pallet must contain only Presorted rate mail with or without a barcode for the same 5-digit ZIP Code or same 5-digit scheme under L007 (for AFSM 100-compatible flats only under 301.3.3). Five-digit scheme (L007) bundles are assigned to pallets according to the OEL "label to" 5-digit ZIP Code. Pallet labeling:

1. Line 1: city, state, and 5-digit ZIP Code destination (see 8.6.4c for overseas military mail).

2. Line 2: "PSVC FLTS 5D"; followed by "BARCODED" (or "BC") if pallet contains Presorted rate mail with a barcode; followed by "NONBARCODED" (or "NBC") if pallet contains Presorted rate mail without a barcode.

g. 5-Digit Metro (optional). Permitted for bundles only. Pallet may contain carrier route and/or Presorted rate mail with or without a barcode for the 5-digit ZIP Codes in L006, Column A, and for the 3-digit ZIP Code groups in L006, Column B. Pallet labeling:

1. Line 1: L006.

2. Line 2: "PSVC FLTS"; followed by "METRO" (or "MET"); followed by "BARCODED" (or "BC") if pallet contains Presorted rate mail with a barcode; followed by "NONBARCODED" (or "NBC") if pallet contains carrier route and/or Presorted rate mail without a barcode.

h. 3-Digit (optional). Option not available for 3-digit ZIP Code prefixes marked "N" in L002. Permitted for bundles and sacks. Pallet may contain carrier route and/or Presorted rate mail with or without a barcode for the same 3-digit ZIP Code or the same 3-digit scheme under L008 (for AFSM 100-compatible flats only under 301.3.0). Three-digit scheme (L008) bundles are assigned to pallets according to the OEL "label to" 3-digit ZIP Code. Pallet labeling:

1. Line 1: L002, Column A.

2. Line 2: "PSVC FLTS 3D"; followed by "BARCODED" (or "BC") if pallet contains Presorted rate mail with a barcode; followed by "NONBARCODED" (or "NBC") if pallet contains carrier route and/or Presorted rate mail without a barcode.

i. SCF (required). Permitted for bundles and sacks. Pallet may contain carrier route and/or Presorted rate mail with or without a barcode for the 3-digit ZIP Code groups in L005. Pallet labeling:

1. Line 1: L002, Column C.

2. Line 2: "PSVC FLTS SCF"; followed by "BARCODED" (or "BC") if pallet contains Presorted rate mail with a barcode; followed by "NONBARCODED" (or "NBC") if pallet contains carrier route and/or Presorted rate mail without a barcode.

j. ASF (required). Permitted for bundles and sacks. Pallet may contain carrier route and/or Presorted rate mail with or without a barcode for the 3-digit ZIP Code groups in L602. ADC bundles or sacks are assigned to pallets according to the "label to" ZIP Code in L004. At the mailer's option, appropriate mixed ADC bundles or sacks may be sorted to ASF pallets according to the "label to" ZIP Code in L010. All mixed ADC bundles and sacks must contain only pieces destinating within the ASF in Exhibit 6.1.6. Pallet labeling:

1. Line 1: L602.

2. Line 2: "PSVC FLTS ASF"; followed by "BARCODED" (or "BC") if pallet contains Presorted rate mail with a barcode; followed by "NONBARCODED" (or "NBC") if pallet contains carrier route and/or Presorted rate mail without a barcode.

k. BMC (required). Permitted for bundles and sacks. Pallet may contain carrier route and/or Presorted rate mail with or without a barcode for the 3-digit ZIP Code groups in L601. ADC bundles or sacks are assigned to pallets according to the "label to" ZIP Code in L004. At the mailer's option, appropriate mixed ADC bundles or sacks may be sorted to BMC pallets according to the "label to" ZIP Code in L010. All mixed ADC bundles and sacks must contain only pieces destinating within the BMC in Exhibit 6.1.6. Pallet labeling:

1. Line 1: L601.

2. Line 2: "PSVC FLTS BMC"; followed by "BARCODED" (or "BC") if pallet contains Presorted rate mail with a barcode; followed by "NONBARCODED" (or "NBC") if pallet contains carrier route and/or Presorted rate mail without a barcode.

l. Mixed BMC (optional). Permitted for sacks only. Pallet may contain carrier route and/or Presorted rate mail with or without a barcode. Pallet labeling:

1. Line 1: "MXD" followed by information in L601, Column B, for BMC serving 3-digit ZIP Code prefix of entry post office (label to plant serving entry post office if authorized by processing and distribution manager).

2. Line 2: "PSVC FLTS WKG."

8.10.4 Package Services Irregular Parcels—Bundles and Sacks

[2-3-05] Pallets must be prepared under 8.0 in the sequence listed below and completed at each required level before the next optional or required level is prepared. Unless indicated as optional, all sort levels are required under the conditions shown. Carrier route (8.10.4a, 8.10.4b, 8.10.4d, and 8.10.4e) applies to Bound Printed Matter mailings only. Destination entry rate eligibility applies only to Parcel Select (see 456) and Bound Printed Matter (see 466 for parcels). At the mailer's option, all Package Services irregular parcels also may be prepared for destination entry (see 7.0). For mailings of sacks on pallets, pallet preparation begins with 8.10.4e. Pallets must be labeled according to the Line 1 and Line 2 information listed below and under 8.6.

a. Merged 5-Digit Scheme (required). Permitted for bundles only. Pallet must contain carrier route bundles and noncarrier route 5-digit bundles (Presorted rate bundles) for the same 5-digit scheme under L001. For 5-digit destinations not part of L001, merged 5-digit pallet preparation begins with 8.10.4d. Pallet labeling:

1. Line 1: L001.

2. Line 2: "PSVC IRREG CR/5D"; followed by "SCHEME" (or "SCH").

b. 5-Digit Scheme Carrier Routes (required). Permitted for bundles only. Pallet must contain only carrier route bundles for the same 5-digit scheme under L001. For 5-digit destinations not part of L001, 5-digit carrier routes pallet preparation begins with 8.10.4e. Pallet labeling:

1. Line 1: L001.

2. Line 2: "PSVC IRREG"; followed by "CARRIER ROUTES" (or "CR-RTS"); followed by "SCHEME" (or "SCH").

c. 5-Digit Scheme (required). Permitted for bundles only. Pallet must contain only 5-digit bundles of Presorted rate mail for the same 5-digit scheme under L001. For 5-digit destinations not part of L001, 5-digit pallet preparation begins with 8.10.4d. Pallet labeling:

1. Line 1: L001.

2. Line 2: "PSVC IRREG 5D"; followed by "SCHEME" (or "SCH").

d. Merged 5-Digit (required). Permitted for bundles only. Pallet must contain carrier route bundles and noncarrier route 5-digit bundles (Presorted rate bundles) for the same 5-digit ZIP Code. Pallet labeling:

1. Line 1: city, state, and 5-digit ZIP Code destination (see 8.6.4c for overseas military mail).

2. Line 2: "PSVC IRREG CR/5D."

e. 5-Digit Carrier Routes (required). Permitted for bundles and sacks. Pallet must contain only carrier route mail for the same 5-digit ZIP Code. Pallet labeling:

1. Line 1: city, state, and 5-digit ZIP Code destination (see 8.6.4c for overseas military mail).

2. Line 2: "PSVC IRREG"; followed by "CARRIER ROUTES" (or "CR-RTS").

f. 5-Digit (required). Permitted for bundles and sacks. Pallet must contain only Presorted rate mail for the same 5-digit ZIP Code. Pallet labeling:

1. Line 1: city, state, and 5-digit ZIP Code destination (see 8.6.4c for overseas military mail).

2. Line 2: "PSVC IRREG 5D."

g. 5-Digit Metro (optional). Permitted for bundles only. Pallet must contain carrier route and/or Presorted rate bundles for the 5-digit ZIP Codes in L006, Column A, and for the 3-digit ZIP Code groups in L006, Column B. Pallet labeling:

1. Line 1: L006.

2. Line 2: "PSVC IRREG"; followed by "METRO" (or "MET").

h. 3-Digit (optional). Option not available for 3-digit ZIP Code prefixes marked "N" in L002. Permitted for bundles and sacks. Pallet may contain carrier route and/or Presorted rate mail. Pallet labeling:

1. Line 1: L002, Column A.

2. Line 2: "PSVC IRREG 3D."

i. SCF (required). Permitted for bundles and sacks. Pallet may contain carrier route and/or Presorted rate mail for the 3-digit ZIP Code groups in L005. Pallet labeling:

1. Line 1: L002, Column C.

2. Line 2: "PSVC IRREG SCF."

j. ASF (required). Permitted for bundles and sacks. Pallet may contain carrier route and/or Presorted rate mail for the 3-digit ZIP Code groups in L602. ADC bundles or sacks are assigned to pallets according to the "label to" ZIP Code in L004. At the mailer's option, appropriate mixed ADC bundles or sacks may be sorted to ASF pallets according to the "label to" ZIP Code in L010. All mixed ADC bundles and sacks must contain only pieces destinating within the ASF in Exhibit 6.1.6. Pallet labeling:

1. Line 1: L602.

2. Line 2: "PSVC IRREG ASF."

k. BMC (required). Permitted for bundles and sacks. Pallet may contain carrier route and/or Presorted rate mail for the 3-digit ZIP Code groups in L601. ADC (L004) bundles or sacks are assigned to pallets according to the "label to" ZIP Code in L004. At the mailer's option, appropriate mixed ADC bundles or sacks may be sorted to BMC pallets according to the "label to" ZIP Code in L010. All mixed ADC bundles and sacks must contain only pieces destinating within the BMC in Exhibit 6.1.6. Pallet labeling:

1. Line 1: L601.

2. Line 2: "PSVC IRREG BMC."

l. Mixed BMC (optional). Permitted for sacks only. Pallet may contain carrier route and/or Presorted rate mail. Pallet labeling:

1. Line 1: "MXD" followed by information in L601, Column B, for BMC serving 3-digit ZIP Code prefix of entry post office (or labeled to plant serving entry post office if authorized by processing and distribution manager).

2. Line 2: "PSVC IRREG WKG."

8.10.5 Machinable Parcels—Standard Mail and Package Services

Pallets must be prepared under 8.0 in the sequence listed below and completed at each required level before the next optional or required level is prepared. Unless indicated as optional, all sort levels are required under the conditions shown. At the mailer's option, Inter-BMC/ASF and Intra-BMC/ASF Parcel Post mailings may be prepared on pallets under this section. Destination entry rates eligibility applies only to Standard Mail (see 446 for parcels), Parcel Select (see 456), and Bound Printed Matter (see 466 for parcels). At the mailer's option, all Package Services machinable parcels also may be prepared for destination entry (see 7.0). Combined mailings of Standard Mail and Package Services machinable parcels must also meet the standards in 6.0. Pallets must be labeled according to the Line 1 and Line 2 information listed below and under 8.6.

a. 5-Digit Scheme (optional). Pallet may contain parcels for the same 5-digit scheme under L606. Pallets need not be prepared for all 5-digit scheme destinations. For 5-digit destinations not part of L606, or for which scheme sorts are not performed, 5-digit pallets are prepared under 8.10.5b. Pallet labeling:

1. Line 1: L606.

2. Line 2: "STD MACH 5D" or "PSVC MACH 5D," as applicable; followed by "SCHEME" (or "SCH").

b. 5-Digit (required). Optional for Standard Mail if 3/5 rates are not claimed. Pallet must contain parcels only for the same 5-digit ZIP Code. Pallet labeling:

1. Line 1: city, state, and 5-digit ZIP Code destination (see 8.6.4c for military mail).

2. Line 2: "STD MACH 5D" or "PSVC MACH 5D," as applicable.

c. ASF (required if claiming DBMC rates, otherwise optional). Not available for the Buffalo, NY ASF in L602. Pallets must contain only parcels for the 3-digit ZIP Code groups in L602.

1. Line 1: L602.

2. Line 2: "STD MACH ASF" or "PSVC MACH ASF," as applicable.

d. BMC (required). Pallets must contain only parcels for the 3-digit ZIP Code groups in L601. Pallet labeling:

1. Line 1: L601.

2. Line 2: "STD MACH BMC" or "PSVC MACH BMC," as applicable.

e. Mixed BMC (optional). Pallet labeling:

1. Line 1: "MXD" followed by information in L601, Column B, for BMC serving 3-digit ZIP Code prefix of entry post office (or labeled to plant serving entry post office if authorized by processing and distribution manager).

2. Line 2: "STD MACH WKG" or "PSVC MACH WKG," as applicable.

8.11 Bundle Reallocation to Protect SCF Pallet for Periodicals Flats and Irregular Parcels and Standard Mail Flats on Pallets

8.11.1 Basic Standards

Bundle reallocation to protect the SCF pallet is an optional preparation method (if performed, bundle reallocation must be done for the entire mailing job); only PAVE-certified presort software may be used to create pallets under the standards in 8.11.2 through 8.11.4. Presort software determines if mail for an SCF service area would fall beyond the SCF level if all finer level pallets are prepared. Reallocation is performed only when there is mail for the SCF service area that would fall beyond the SCF pallet level (e.g., to an ADC or BMC pallet). The amount of mail required to bring the mail that would fall beyond the SCF level back to an SCF level is the minimum volume that will be reallocated. For the purposes of reallocation, 5-digit metro pallets are considered to be 3-digit pallets (because they contain subsets of mail for a 3-digit ZIP Code area).

8.11.2 General Rules

Reallocation rules are as follows:

a. Bundle preparation is not affected by the reallocation process. Reallocate only complete bundles and only the minimum number of bundles necessary to create an SCF pallet meeting the minimum pallet weight. Based on the weight of individual pieces within a bundle and bundling parameters, the weight of mail that is reallocated may be slightly more than the minimum volume required to create an SCF pallet.

b. Reallocate bundles from the highest (least fine) pallet level possible. If it is not possible to reallocate some mail from a 3-digit pallet first, then attempt to eliminate a 3-digit pallet and reallocate all mail from that pallet to create an SCF pallet; if mail cannot be reallocated from a 3-digit pallet, then attempt to reallocate some mail from any 5-digit level pallet.

c. The reallocation process may result in the elimination of a 3-digit pallet to create an SCF pallet, but a 5-digit level pallet may not be eliminated to create an SCF pallet.

d. When reallocating mail to create an SCF pallet, reallocate mail from only one more finely sorted pallet. This may be accomplished by reallocating a portion of a 3-digit pallet, reallocating all mail from a 3-digit pallet, or reallocating a portion of one of the following pallets: 5-digit, 5-digit carrier routes, merged 5-digit, 5-digit scheme, 5-digit scheme carrier routes, or merged 5-digit scheme.

e. Mailers may use any minimum pallet weight(s) permitted by standards and may use different minimum weights for different pallet levels in conjunction with bundle reallocation.

8.11.3 Reallocation of Bundles If Optional 3-Digit Pallets Are Prepared

Reallocation rules are as follows:

a. Attempt to identify a 3-digit pallet of adequate weight that can support reallocation of one or more bundles to bring the mail that has fallen through the SCF level back to the SCF level without eliminating the pallet. A sufficient volume of mail must remain on the 3-digit pallet after reallocation to meet the 3-digit pallet weight minimum established by the mailer in compliance with applicable standards. If a 3-digit pallet of adequate weight is available, create an SCF pallet by combining the reallocated mail from the 3-digit pallet with the mail that would fall beyond the SCF pallet level.

b. If no single 3-digit pallet within the SCF service area contains an adequate volume of mail to allow reallocation of a portion of the mail on a pallet as described in the previous step, then eliminate one 3-digit pallet and reallocate all of the mail to create an SCF pallet by combining it with the mail that would fall beyond the SCF pallet level. As a result, the software will not prepare one 3-digit pallet for the SCF service area if it is detrimental to the SCF pallet.

c. If preparation is under 8.0 and there are no 3-digit pallets, attempt to identify a 5-digit level pallet of adequate weight to support reallocation of one or more bundles to bring the mail that would fall beyond the SCF pallet level back to the SCF level. If preparation is under 10.0, 12.0, or 13.0 and there are no 3-digit pallets, attempt to identify a 5-digit level pallet of adequate weight to support reallocation of one or more bundles to bring the mail that would fall beyond the SCF pallet level back to the SCF level. A sufficient volume of mail must remain on the applicable pallet after reallocation to meet the pallet weight minimum established by the mailer in compliance with applicable standards. If a 5-digit level pallet of adequate weight is available, create an SCF pallet by combining the reallocated bundles with the mail that would fall beyond the SCF pallet level.

d. If no single 5-digit level pallet within the SCF service area contains an adequate volume of mail to allow reallocation of a portion of the mail on a pallet as described in 8.11.3c, then no bundles will be reallocated and an SCF pallet will not be prepared; the mail that falls beyond the SCF pallet level must be placed on the next appropriate pallet (ADC, ASF, or BMC) or in the next appropriate sack.

8.11.4 Reallocation of Bundles If Optional 3-Digit Pallets Are Not Prepared

Reallocation rules are as follows:

a. Attempt to identify a 5-digit level pallet of adequate weight to support reallocation of one or more bundles to bring the mail that would fall beyond the SCF pallet level back to the SCF level. A sufficient volume of mail must remain on the 5-digit level pallet after reallocation to meet the pallet weight minimum established by the mailer in compliance with applicable standards. If a 5-digit level pallet of adequate weight is available, create an SCF pallet by combining the reallocated bundles with the mail that would fall beyond the SCF pallet level.

b. If no single 5-digit level pallet within the SCF service area contains an adequate volume of mail to allow reallocation of a portion of the mail on a pallet as described in 8.11.4a, then no bundles will be reallocated and an SCF pallet will not be prepared; the mail that falls beyond the SCF pallet level must be placed on the next appropriate pallet (ADC, ASF, or BMC) or in the next appropriate sack.

8.11.5 Documentation

Mailings must be supported by documentation produced by PAVE-certified software meeting the standards in 708.1.0.

8.12 Bundle Reallocation to Protect BMC Pallet for Standard Mail Flats on Pallets

8.12.1 Basic Standards

Bundle reallocation to protect the BMC pallet level is an optional preparation method (if performed, bundle reallocation must be done for the complete mailing job); only PAVE-certified presort software may be used to create pallets under the standards in 8.12.2 through 8.12.4. The software will determine if mail for a BMC service area would fall beyond the BMC level when ASF pallets are prepared. Reallocation is performed only when there is mail for the BMC service area that would fall beyond the BMC pallet level as a result of an ASF pallet being prepared. The amount required to bring the mail back to the BMC level is the minimum volume that would be reallocated from an ASF pallet, when possible. The following "parent" BMCs can be protected with bundle reallocation by using mail from the ASF "child" pallets indicated in Exhibit 8.12.1.

Exhibit 8.12.1 "Parent" BMC/"Child" ASF

"Parent" BMC Service Areas	"Child" ASF ZIP Code Areas Served
Pittsburgh BMC	Buffalo ASF: 130-136; 140-149
Denver BMC	Albuquerque ASF: 865, 870-875, 877-884 Phoenix ASF: 850, 852, 853, 855, 859, 860, 863, 864 Salt Lake City ASF: 832-834, 836, 837, 840-847, 898, 979 Billings ASF: 590-599, 821
Dallas BMC	Oklahoma City ASF: 730, 731, 734-738, 740, 741, 743-746, 748, 749
Des Moines BMC	Sioux Falls ASF: 570-577
Minneapolis BMC	Fargo ASF: 565, 567, 580-588

8.12.2 General Rules

In general, when reallocating:

a. The reallocation process does not affect bundle preparation. Reallocate only complete bundles and only the minimum number of bundles necessary to create a BMC pallet that meets the minimum pallet weight. Based on the weight of individual pieces within a bundle and bundling parameters, the weight of mail that is reallocated may be slightly more than the minimum volume required to create a BMC pallet.

b. Use Exhibit 8.12.1 to reallocate bundles from the ASF pallet to create a BMC pallet. The ASF pallet may be eliminated to protect the BMC pallet.

c. Reallocate mail only from one ASF pallet. Bundle reallocation is to be used only between the "parent" BMC and the "child" ASF. Mail from finer levels of pallets (e.g., SCF pallets) may not be reallocated.

d. Mailers may use any minimum pallet weight(s) permitted by standard and may use different minimum weights for different pallet levels in conjunction with bundle reallocation.

8.12.3 Reallocation of Bundles From ASF Pallets

When reallocating bundles from ASF pallets:

a. Use Exhibit 8.12.1 to identify an ASF pallet of adequate weight that can support reallocation of one or more bundles to bring the mail that has fallen through the BMC level back to the BMC level without eliminating the ASF pallet. A sufficient amount of mail must remain on the ASF pallet after reallocation to meet the minimum ASF pallet weight. If an ASF pallet of adequate weight is available, then create a BMC pallet by combining the reallocated mail from the ASF pallet with the mail that would fall beyond the BMC pallet level.

b. If no single ASF pallet within the BMC service area contains an adequate volume of mail to allow reallocation of the portion of the mail on a pallet as described in 8.12.3a, then eliminate one ASF pallet and reallocate all of the mail to create a BMC pallet.

8.12.4 Documentation

Mailings must be supported by documentation produced by PAVE-certified software meeting the standards in 708.1.0.

8.13 Pallets of Bundles, Sacks, and Trays

8.13.1 Periodicals

Additional pallet preparation:

a. Combined Mailings. When two or more publications are part of a combined mailing, the mailer must keep records for each mailing (publication) as required by standard.

b. Destination Delivery Unit Rates. Pieces claimed at destination delivery unit rates do not require separation from pieces claimed at other rates on the same pallet.

c. Carrier Route Mail on Separate 5-Digit Level Pallets. Carrier route sorted pieces must be prepared on separate 5-digit pallets (5-digit carrier routes or 5-digit scheme carrier routes pallets) from automation rate or Presorted rate pieces (prepared on 5-digit pallets or 5-digit scheme pallets). Exception: When nonletter-size Periodicals are prepared as bundles on pallets under 10.0, 12.0, or 13.0, then carrier route sorted mail, 5-digit sorted automation rate mail, and 5-digit sorted Presorted rate mail may be placed on the same merged 5-digit pallet or on the same merged 5-digit scheme pallet for those 5-digit ZIP Codes for which 1) there are "A" or "C" indicators in the City State Product under 10.0, or 2) the 5-digit bundles are within the 5% threshold requirement under 12.0, or 3) the 5-digit bundles are either all for 5-digit ZIP Codes that have an "A" or "C" indicator in the City State Product or are for 5-digit ZIP Codes with a "B" or "D" indicator in the City State Product and the pieces in such 5-digit bundles meet the 5% threshold under 13.0.

8.13.2 Standard Mail

Additional pallet preparation:

a. Combined Mailings. Nonprofit Standard Mail may be included in the same mailing or palletized on the same pallet as regular Standard Mail only as permitted by standard.

b. Destination Delivery Unit Rates. Pieces claimed at destination delivery unit rates do not require separation from pieces claimed at other rates on the same pallet.

c. Carrier Route Mail on Separate 5-Digit Level Pallets. Carrier route rate pieces must be prepared on separate 5-digit pallets (5-digit carrier routes or 5-digit scheme carrier routes pallets) from automation rate and/or Presorted rate pieces (prepared on 5-digit pallets or 5-digit scheme pallets). Exception: When flat-size pieces are prepared as bundles on pallets under 10.0, 12.0, or 13.0, then carrier route sorted mail, 5-digit sorted automation rate mail, and 5-digit sorted Presorted rate mail may be placed on the same merged 5-digit pallet or on the same merged 5-digit scheme pallet for those 5-digit ZIP Codes for which 1) there are "A" or "C" indicators in the City State Product under 10.0, or 2) the 5-digit bundles are within the 5% threshold requirement under 12.0, or 3) the 5-digit bundles are either all for 5-digit ZIP Codes that have an "A" or "C" indicator in the City State Product, or are for 5-digit ZIP Codes with a "B" or "D" indicator in the City State Product and the pieces in such 5-digit bundles meet the 5% threshold under 13.0.

8.13.3 BMC and Mixed BMC Pallets

Bundles placed on BMC pallets must be machinable on BMC parcel sorting equipment. Line 2 on pallet labels must reflect the processing category of the pieces. A BMC or mixed BMC (trays and sacks only) pallet may include pieces that are eligible for the DBMC rate and others that are ineligible.

8.13.4 Commingled Zones

Pieces of Package Services for different zones may be commingled only under 455.4.1.4 for Parcel Post parcels or 365.5.3.3 or 365.6.3.3 for Bound Printed Matter flats or 465.5.1.3 or 465.6.1.3 for Bound Printed Matter parcels.

8.13.5 Securing Trays

Trays must be sleeved and strapped under 235.3.0 for First-Class Mail letters, 245.3.0 for Standard Mail letters, 335.3.0 for First-Class Mail flats, 345.3.0 for Standard Mail flats, 365.3.0 for Bound Printed Matter flats, 375.3.0 for Media Mail flats, 385.3.0 for Library Mail flats, except that strapping is not required for any letter tray placed on a 5-digit, 3-digit, or SCF pallet secured with stretchwrap. In addition, if the processing and distribution manager gives a written waiver, strapping is not required for any letter tray that originates and destinates in the same SCF (mail processing plant) service area.

8.14 Sacks

All sacks remaining after all pallets are prepared may be presented with the palletized mailing (on the same postage statement) if the sacks are set apart from the palletized portion of the mailing.

8.15 Copalletized Flat-size Pieces—Periodicals or Standard Mail

8.15.1 Basic Standards

Copalletized flat-size mailings must meet the applicable standards in 8.0. In addition, if copalletized under 10.0, 12.0, or 13.0, the provisions of one of those preparation options must also be met. Any combination of automation rate mailings and nonautomation rate mailings is subject to the restrictions in 8.13. Bundles in a copalletized mailing qualify for the appropriate presort level rate, regardless of the pallet level on which they are placed.

8.15.2 Periodicals

Additional standards are as follows:

a. Periodicals eligible for preferred rates (In-County, Nonprofit, Classroom, and Science-of-Agriculture) may be combined with Periodicals eligible for Outside-County rates.

b. All pallets in a copalletized mailing are identified on the content line (Line 2) of the label with only "NEWS" (see 8.6) or "PER" as the class designation under these conditions:

1. If at least 51% of the total number of copies in the copalletized mailing can qualify for "NEWS" treatment, then all pallets in such a mailing are labeled "NEWS," unless the mailer chooses to use "PER."

2. If less than 51% of the total number of copies in a copalletized mailing can qualify for "NEWS" treatment, then all pallets in such a mailing are labeled "PER."

c. Documentation meeting the basic standard in 708.1.0 must be provided with each mailing. Before copalletizing, the mailer must obtain the written approval of the Business Mailer Support manager. Approval is based on the mailer's demonstrated ability to provide documentation meeting these standards:

1. Documentation by bundle and by publication and edition showing the number of addressed pieces and copies in each bundle and the per piece presort rate claimed, or a listing by pallet showing (by presort level and destination) the number of copies and pieces for each publication and edition. For large volume mailing jobs reported on a single listing, the mailer may provide the abbreviated documentation in 708.b..

2. Documentation showing the number of copies and pieces claimed at the SCF rate.

3. Documentation showing that bundles are sorted to the appropriate finest pallet level in the mailing.

4. Documentation showing that 5-digit, 3-digit, SCF, and ADC pallets are prepared when the applicable minimum volume is developed in the copalletized mailing for these destinations.

5. A listing showing the destination of pallets in the copalletized mailing.

6. If the sacked portion of the mailing is presented with the copalletized portion, a report by sack showing the number of pieces (and copies) at each presort level.

8.15.3 Standard Mail

Additional standards are as follows:

a. Nonprofit Standard mailings may be copalletized with one another but not with mailings at other rates unless permitted by standard.

b. Nonidentical-weight pieces may be copalletized only if the correct postage is affixed to each piece or if otherwise authorized by Business Mailer Support.

c. All pieces in mailings to be copalletized must be subject to the minimum per piece rate, or all subject to the per pound rate, unless otherwise authorized by Business Mailer Support.

d. All pieces must have postage paid with permit imprint, or all pieces must have postage affixed.

e. When requested, the mailer must present pallets selected by USPS employees for verification.

8.15.4 Pallet Labels

Pallet labels for copalletized mailings must meet the provisions of 8.6 and 8.10, or if applicable, 8.6 and 10.0, 12.0, or 13.0.

8.15.5 Postage Statement

Separate postage statements are required:

a. For Periodicals, a separate postage statement is required for each publication and/or edition that is part of the copalletized mailing. The mailer must note on or in an attachment to the postage statement the name and issue date of the publications with which each publication and/or edition was copalletized.

b. For Standard Mail, a separate postage statement must be prepared for each mailing that is part of a single copalletized shipment, except that copalletized Regular and Enhanced Carrier Route mailings (or Nonprofit and Nonprofit Enhanced Carrier Route mailings) produced as part of the same job may be reported on the same postage statement.

8.16 Pallets of Machinable Parcels

8.16.1 Standard Mail

Pieces may be eligible for the 3/5 rate when prepared under 8.10.5a. through 8.10.5d.. This eligibility includes pieces sorted under 8.10.5c. and 8.10.5d. to the service area of the entry ASF/BMC.

8.16.2 DBMC Rate

A BMC pallet may include pieces that are eligible for the DBMC rate and pieces that are ineligible.

8.16.3 Top Caps

When top caps are used, the mailer must write the tare weight of the top cap on the pallet label or in another prominent location.

8.17 Parcel Post—Bulk Mail Center (BMC) Presort Discount

8.17.1 Machinable Parcels

To qualify for the BMC Presort discount:

a. Machinable pieces must be sorted to BMCs under L601 in 69-inch pallet boxes. Each pallet box must contain at least 52 inches of mail (not including pallet) for a BMC. Overflow pallet boxes are not permitted. Preparation in sacks, directly on pallets, or in other containers is not permitted.

b. Pallet box preparation and Line 1 labeling: destination BMC (required); for Line 1 use L601.

c. Pallet box Line 2 labeling: "PSVC MACH BMC."

8.17.2 Nonmachinable Parcels

To qualify for the BMC Presort discount:

a. Nonmachinable pieces must be sorted to BMCs and ASFs under L605 directly on pallets. Each pallet for a BMC or ASF destination must have a minimum height of 42 inches of mail (not including the height of the pallet). Overflow pallets are not permitted. Preparation in sacks, pallet boxes, or in other containers is not permitted.

b. Pallet preparation and Line 1 labeling: destination BMC or destination ASF (required); for Line 1, use L605.

c. Pallet Line 2 labeling: "PSVC NON MACH BMC" or "PSVC NON MACH ASF" as applicable.

8.18 Parcel Post—Origin Bulk Mail Center (OBMC) Presort Discount

8.18.1 Machinable Parcels

To qualify for the OBMC Presort discount:

a. Machinable pieces must be sorted to BMCs under L601 in 69-inch pallet boxes. Each pallet box must contain at least 52 inches of mail (not including pallet) for a BMC. Overflow pallet boxes are not permitted. Preparation in sacks, directly on pallets, or in other containers is not permitted.

b. Pallet box preparation and Line 1 labeling: destination BMC (required); for Line 1, use L601.

c. Pallet box Line 2 labeling: "PSVC MACH BMC."

8.18.2 Nonmachinable Parcels

To qualify for the OBMC Presort discount:

a. Nonmachinable pieces must be sorted to BMCs and ASFs under L605 directly on pallets. Each pallet for a BMC or ASF destination must have a minimum height of 42 inches of mail (not including the height of the pallet). Overflow pallets are not allowed. Preparation in sacks, pallet boxes, or in other containers is not permitted.

b. Pallet preparation and Line 1 labeling: destination BMC or destination ASF (required); for Line 1, use L605.

c. Pallet Line 2 labeling: "PSVC NON MACH BMC" or "PSVC NON MACH ASF" as applicable.

8.19 Parcel Post DSCF Rates—Parcels on Pallets

8.19.1 Basic Preparation, Parcels on Pallets

Unless prepared under 8.19.2, or in sacks, mail must be prepared for the DSCF rate as follows:

a. General. Parcels for each SCF area must be sorted to 5-digit scheme, 5-digit, or 3-digit (nonmachinable) destinations on pallets. For purposes of this section, the term "pallets" includes preparation of parcels directly on pallets and in pallet boxes on pallets. Except when prepared under 8.19.2, each 5-digit scheme, 5-digit, and 3-digit pallet must meet a minimum volume requirement under one of the criteria in 8.19.1b. Machinable and nonmachinable pieces may be combined on the same pallet or in the same overflow sack when sorted to 5-digit scheme or 5-digit destinations. In a single mailing mailers may prepare some pallets under the minimum volume requirement in 8.19.1b1 and some pallets under the minimum volume requirement in 8.19.1b2. A mailing entered at a destination SCF facility containing pallets prepared under 8.19.1 also may include mail that is sacked for the DSCF rate. Double-stacking is permitted if the requirements of 8.3 are met.

b. Minimum volume. The minimum volume per 5-digit scheme, 5-digit, and 3-digit pallet can be met in one of the following ways:

1. Pieces may be placed on 5-digit scheme, 5-digit, and 3-digit pallets, each containing at least 50 pieces and 250 pounds.

2. Pieces may be placed on 5-digit scheme, 5-digit, and 3-digit pallets, each having a minimum height of 36 inches of mail (excluding the height of the pallet) (see 8.5.4).

c. Overflow. After filling a pallet(s) to a 5-digit scheme, 5-digit, or 3-digit destination, any remaining pieces that do not meet the minimum pallet requirements may be prepared in one or both of the following ways:

1. Placed in 5-digit scheme, 5-digit, or 3-digit overflow sacks (no minimum number of pieces per sack) that are labeled in accordance with the 5-digit scheme, 5-digit, or 3-digit sacking requirements for the DSCF rate in 455.4.5. Overflow pieces sacked in this manner are eligible for the DSCF rates.

2. Placed on a 5-digit scheme, 5-digit, or 3-digit pallet labeled under 8.19.1d that does not meet the minimums for the DSCF rate. Overflow pieces palletized in this manner are not eligible for the DSCF rates but are eligible for the DBMC rates.

d. 5-digit scheme pallet labeling:

1. Line 1: use L606, Column B.

2. Line 2: "PSVC PARCELS 5D SCH."

e. 5-digit pallet labeling:

1. Line 1: use city, state, and 5-digit ZIP Code destination of contents.

2. Line 2: "PSVC PARCELS 5D."

f. 3-digit pallet labeling:

1. Line 1: use L002, Column C.

2. Line 2: "PSVC PARCELS 3D."

g. Separation. If sacks prepared under 455.4.0, Preparation for Parcel Post, are included in the same mailing as pallets prepared under this section, at the time of acceptance the mailer must separate sacks that are overflow from palletized mail from those sacks that were prepared under the provisions of 455.4.0.

8.19.2 Alternate Preparation, Parcels on Pallets

DSCF rate mailings not prepared under 8.19.1 may be prepared as follows:

a. General. All DSCF rate mail in the mailing must be sorted to 5-digit scheme, 5-digit, or 3-digit destinations under 8.19.2 (i.e., mail prepared under 8.19.1 and mail sacked under 455.4.0 must not be included in a mailing prepared under 8.19.2). For purposes of this section, the term "pallets" includes preparation of parcels directly on pallets and in pallet boxes on pallets. Machinable and nonmachinable pieces may be combined on the same pallet. Double-stacking is permitted if the requirements of 8.3 are met.

b. Minimum volume. To qualify for the DSCF rate, no pallet may contain fewer than 35 pieces and 200 pounds, and for the entire mailing the average number of DSCF rate pieces per 5-digit scheme, 5-digit, or 3-digit destination must be at least 50.

c. Overflow. After filling pallets to a 5-digit scheme, 5-digit, or 3-digit destination, any remaining pieces that do not meet the minimum pallet requirements may be prepared in one or both of the following ways:

1. Placed in 5-digit scheme, 5-digit, or 3-digit overflow sacks (no minimum number of pieces per sack) that are labeled in accordance with the DSCF sacking requirements in 455.4.0. Overflow pieces sacked in this manner are eligible for the DSCF rates.

2. Placed on a 5-digit scheme, 5-digit, or 3-digit pallet labeled under 8.19.2d that does not meet the minimums for the DSCF rate. Overflow pieces palletized in this manner are not eligible for the DSCF rates but are eligible for the DBMC rates.

d. 5-digit scheme pallet labeling:

1. Line 1: use L606, Column B.

2. Line 2: "PSVC PARCELS 5D SCH."

3. In the mailer area below Line 3: use the pallet ID number.

e. 5-digit pallet labeling:

1. Line 1: city, state, and 5-digit ZIP Code destination of contents.

2. Line 2: "PSVC PARCELS 5D."

3. In mailer area below line 3: use the pallet ID number.

f. 3-digit pallet labeling:

1. Line 1: use L002, Column C.

2. Line 2: "PSVC PARCELS 3D."

3. In the mailer area below Line 3: use the pallet ID number.

g. Documentation. A list of each 5-digit scheme, 5-digit, and 3-digit pallet in the mailing that qualifies for the DSCF rate must be submitted. The pallets in the mailing that qualify for the DSCF rate must be renumbered sequentially, and this pallet identification number must be printed below Line 3 on the pallet label. The documentation must list each pallet in sequential order by pallet identification number. For each pallet, the listing must show: the pallet identification number, the applicable 5-digit scheme, 5-digit, or 3-digit destination of the pallet, the total weight of pieces on the pallet, the total number of pieces on the pallet, and the running total of pieces (i.e., the number equal to the number of pieces for that pallet plus the sum of the pieces on all pallets listed before it). This documentation must not include: pieces prepared in overflow sacks at the DSCF rates, pieces prepared on overflow pallets at the DBMC rates, or pieces claimed at any other rate in the mailing.

8.19.3 5-Digit ZIP Codes for Which Pallets May Not Be Prepared

Refer to the Drop Shipment Product available from the National Customer Support Center (NCSC) (see 608.8.0) and to Exhibit 456.2.7 and Exhibit 456.2.8 to determine if the facility serving the 5-digit ZIP Code destination can handle pallets. There is a charge for the Drop Shipment Product. If a facility cannot handle pallets, the DSCF rate is not applicable unless the mail can be prepared under the sacking requirement in 455.4.0.

8.19.4 5-Digit ZIP Codes Requiring BMC Entry

Refer to Exhibit 456.2.6 for 5-digit ZIP Code destinations where palletized mail must be entered at the BMC that serves the SCF to obtain the DSCF rate.

8.20 Parcel Post DSCF Rates—Sacks on Pallets

Mailers who prepared DSCF rate mail in 5-digit scheme or 5-digit sacks under 455.4.0 may place 5-digit sacks for the same SCF area on an SCF pallet (including a pallet box on a pallet). Mailers who prepare overflow from pallets under 8.19.1 or 8.19.2 may place 5-digit scheme or 5-digit sacks for the same SCF area on an SCF pallet (including a pallet box on a pallet). See 8.19.1g for requirements concerning separation of sacks prepared under 455.4.0 from sacks prepared under 8.19.1. There are no pallet minimums for such pallets. Mailers may prepare such SCF pallets without preparing all possible 5-digit scheme and 5-digit pallets. The pallets must be labeled in the following manner:

a. 5-digit scheme pallets (optional):

1. Line 1: use L606, Column B.

2. Line 2: "PSVC PP 5D SCHEME" or "PSVC PP 5D SCH."

b. 5-digit pallets:

1. Line 1: use L002, Column C.

2. Line 2: "PSVC PP 5D."

8.21 Parcel Post DDU Rates

Parcels may be bedloaded, sacked, or palletized. For purposes of this section the term "pallets" includes preparation of parcels directly on pallets and preparation of parcels in pallet boxes on pallets. There are no preparation or presort requirements for DDU rate mailings other than separation by 5-digit scheme and 5-digit destination. Machinable and nonmachinable pieces may be combined. Refer to the Drop Shipment Product maintained by the National Customer Support Center (NCSC) (see 608.8.0) and the information in 456.2.0, Parcel Select, including Exhibit 456.2.7 and Exhibit 456.2.8 to determine the location of the 5-digit delivery facility and whether that facility can handle pallets (including pallet boxes on pallets). If a DDU facility cannot handle pallets, and a mailer transports mail to the DDU facility on pallets, the driver must unload the pallets into a container specified by the delivery unit. If pieces are sacked or palletized, they must be prepared to 5-digit scheme (optional) and 5-digit destinations, and labeled as follows:

a. 5-digit scheme sacks or pallets (optional):

1. Line 1: use L606, Column B.

2. Line 2: "PSVC PARCELS 5D SCH."

b. 5-digit sacks or pallets:

1. Line 1: use city, state, and 5-digit ZIP Code destination of pieces.

2. Line 2: "PSVC PARCELS 5D."

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9.0 Preparation for Cotraying and Cosacking Bundles of Automation and Presorted Flats

9.1 First-Class Mail

9.1.1 Basic Standards

Bundles of flats in an automation rate mailing prepared under 335.6.5 must be cotrayed with bundles of flats in a Presorted rate mailing under the following conditions:

a. The automation rate pieces and Presorted rate pieces are part of the same mailing job and reported on the same postage statement.

b. Pieces in the automation rate mailing must meet the criteria for a flat under 301.3.0. Pieces in the Presorted rate mailing must meet the criteria for a flat under 301.1.1.

c. The automation rate mailing must meet the eligibility criteria in 333.5.0, except that the traying criteria in 9.1.4 must be met rather than the traying criteria in 335.6.0.

d. The Presorted rate mailing must meet the eligibility criteria in 333.3.0, except that the traying and documentation criteria in 9.1.1 and 9.1.4 must be met rather than the traying and documentation criteria in 335.6.0.

e. The rates for pieces in the automation rate mailing are applied based on the level of bundle to which they are sorted under 333.5.3, Rate Application—Bundle-Based Flats, and 333.5.4, Rate Application—Tray-Based Flats.

f. The pieces must be marked according to 302.

g. The bundles prepared from the automation rate mailing and the bundles prepared from the Presorted rate mailing must be sorted into the same trays as described in 9.1.4.

h. A complete, signed postage statement, using the correct USPS form or an approved facsimile, must accompany each mailing job prepared under these procedures. In addition to the applicable postage statement, documentation produced by PAVE-certified software or standardized documentation under 708.1.0 must be submitted with each cotrayed mailing job that describes for each tray sortation level the number of pieces qualifying for each applicable automation rate and the number of pieces qualifying for the Presorted rate.

i. Barcoded tray labels under 708.6.0 must be used to label the trays.

9.1.2 Bundle Preparation

Except for mail prepared under the cobundling option in 9.1.3, the automation rate mailing must be bundled and labeled under 335.6.5. The Presorted rate mailing must be bundled and labeled under 335.5.0.

9.1.3 Optional Cobundling Preparation

As an option to the basic bundling requirements in 9.1.2, a mailer may choose to cobundle automation rate and Presorted rate flat-size pieces, subject to the conditions in 11.0.

9.1.4 Tray Preparation and Labeling

Presorted rate and automation rate bundles prepared under 9.1.2 or 9.1.3 must be presorted together into trays (cotrayed) in the sequence listed below. Trays must be labeled using the following information for Lines 1 and 2 and 335.4.0 for other sack label criteria.

a. 5-Digit. Required, full trays only (no overflow trays).

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 335.4.3 for military mail).

2. Line 2: "FCM FLTS 5D BC/NBC."

b. 3-Digit. Required, full trays only (no overflow trays).

1. Line 1: Use L002, Column A.

2. Line 2: "FCM FLTS 3D BC/NBC."

c. Origin/entry 3-Digit. Required for each 3-digit ZIP Code served by the SCF of the origin (verification) office, optional for each 3-digit ZIP Code served by the SCF of an entry office other than the origin office, no minimum.

1. Line 1: Use L002, Column A.

2. Line 2: "FCM FLTS 3D BC/NBC."

d. ADC. Required, full trays only (no overflow trays), use L004 to determine ZIP Codes served by each ADC.

1. Line 1: Use L004, Column B.

2. Line 2: "FCM FLTS ADC BC/NBC."

e. Mixed ADC. Required, no minimum.

1. Line 1: Use "MXD" followed by the city, state, and ZIP Code of the facility serving the 3-digit ZIP Code of the entry post office, as shown in L002, Column C.

2. Line 2: "FCM FLTS BC/NBC WKG."

9.2 Periodicals

9.2.1 Basic Standards

Bundles of nonletter-size pieces in an automation rate mailing must be cosacked with bundles of nonletter-size pieces in a Presorted rate mailing under the following conditions:

a. The pieces in the automation rate mailing and in the Presorted rate mailing must be part of the same mailing job and must be reported on the appropriate postage statement(s).

b. The pieces in the mailing job must all be nonletter-size and meet any other size and mailpiece design requirements applicable to the rate category for which they are prepared.

c. The automation rate mailing must meet the eligibility criteria in 707.14.0, except that the sacking and documentation criteria in 9.2.1, 9.2.4, and 9.2.5 must be met rather than the sacking and documentation criteria in 707.25.0.

d. The Presorted rate mailing must meet the eligibility criteria in 707.12.0, except that the sacking and documentation criteria in 9.2.1, 9.2.4, and 9.2.5 must be met rather than the sacking and documentation criteria in 707.25.0.

e. The rates for pieces in the automation rate mailing are applied based on the number of pieces in the bundle and the level of bundle to which they are sorted under 707.14.0, Automation Rate Eligibility. The rates for pieces in the Presorted rate mailing are based on the number of pieces in the bundle and the level of sack in which they are placed under 707.12.0, Presorted Rate Eligibility.

f. The bundles prepared from the automation rate mailing and the bundles prepared from the Presorted rate mailing must be sorted into the same sacks as described in 9.2.4 and 9.2.5.

g. A complete, signed, appropriate postage statement(s), using the correct USPS form or an approved facsimile, must accompany each mailing job prepared under these procedures. In addition to the applicable postage statement, documentation produced by PAVE-certified software or standardized documentation under 708.1.0 must be submitted with each cosacked mailing job that describes for each sack sortation level the number of pieces qualifying for each applicable automation rate and the number of pieces qualifying for each applicable Presorted rate.

h. Barcoded sack labels under 708.6.0 must be used to label sacks.

9.2.2 Bundle Preparation

Except for mail prepared under the cobundling option in 9.2.3, the automation rate mailing must be bundled and labeled under 707.25.0 (all bundle levels) and the Presorted rate mailing must be bundled and labeled under 707.22.0 (excluding carrier route bundles).

9.2.3 Optional Cobundling Preparation

As an option to the basic bundling requirements in 9.2.2, a mailer may choose to cobundle automation rate and Presorted rate flat-size pieces, subject to the conditions in 11.0.

9.2.4 Low-Volume Bundles in Sacks or on Pallets

5-digit and 3-digit bundles prepared under 707.22.0 and 707.25.0 or under 9.2.3 may contain fewer than six pieces when the publisher determines that such preparation improves service. These low-volume bundles may be placed in 5-digit, 3-digit, and SCF sacks or on 5-digit, 3-digit, or SCF pallets. Pieces in low-volume bundles must claim the applicable basic Presorted or automation rate, except for firm bundles at Presorted rates as applicable under 707.22.3.

9.2.5 Sack Preparation and Labeling

[10-27-05] [2-3-05] Presorted rate and automation rate bundles prepared under 9.2.2, 9.2.3, and 9.2.4 must be presorted together into sacks (cosacked) in the sequence listed below. Sacks must be labeled using the following information for Lines 1 and 2 and 707.21.0 for other sack label criteria. If, due to the physical size of the mailpieces, the automation rate pieces are considered flat-size under 301.3.0 and the Presorted rate pieces are considered irregular parcels under 401.1.6, the processing category shown on the sack label must show "FLTS."

a. 5-Digit. Required at 24 pieces to the same 5-digit, optional with one six-piece bundle, or under 9.2.4 with at least one bundle of fewer pieces.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 707.21.1.2 for military mail).

2. Line 2: "PER" or "NEWS" as applicable and "FLTS 5D BC/NBC."

b. 3-Digit. Required at 24 pieces to the same 3-digit, optional with one six-piece bundle, or under 9.2.4 with at least one bundle of fewer pieces.

1. Line 1: use L002, Column A.

2. Line 2: "PER" or "NEWS" as applicable and "FLTS 3D BC/NBC."

c. SCF. Required at 24 pieces, optional with one six-piece bundle, or under 9.2.3 with at least one bundle of fewer pieces.

1. Line 1: use L002, Column C.

2. Line 2: "PER" or "NEWS" as applicable and "FLTS SCF BC/NBC."

d. Origin/entry SCF. Required for the SCF of the origin (verification) office, optional for the SCF of an entry office other than the origin office, no minimum.

1. Line 1: use L002, Column C.

2. Line 2: "PER" or "NEWS" as applicable and "FLTS SCF BC/NBC."

e. ADC. Required at 24 pieces, optional with one six-piece bundle (bundles of fewer than six pieces are not permitted).

1. Line 1: use L004, Column B.

2. Line 2: "PER" or "NEWS" as applicable and "FLTS ADC BC/NBC."

f. Origin mixed ADC. Optional; permitted for any remaining pieces for destinations in L201, Column C, of the origin ZIP Code in Column A. No minimum, except that bundles of fewer than six pieces at 5-digit, 3-digit, and ADC bundle levels are not permitted.

1. Line 1: Use L201, Column C.

2. Line 2: "PER" or "NEWS" as applicable, followed by "FLTS," followed by "WKG W FCM."

g. Mixed ADC. Required, no minimum, except that bundles of fewer than six pieces at 5-digit, 3-digit, and ADC bundle levels are not permitted.

1. Line 1: Use L009, Column B.

2. Line 2: "PER" or "NEWS" as applicable and "FLTS BC/NBC WKG."

9.2.6 Optional Tray Preparation—Flat-Size Pieces

[10-27-05] As an option, mailers may choose to place in flat trays mailpieces meeting the standards in 301.3.3, Criteria for AFSM 100 Flats, that would normally be placed in ADC, origin mixed ADC, or mixed ADC sacks. Pieces must not be secured in bundles, and mailers must group together pieces for each 5-digit scheme, 5-digit, 3-digit scheme, 3-digit, and ADC destination.

a. ADC: required (24-piece minimum); overflow tray not allowed.

1. Line 1: use L004, Column B.

2. Line 2: "PER" or "NEWS" as applicable, followed by "FLTS," followed by "ADC."

b. Origin mixed ADC: No minimum for any remaining pieces for destinations of the origin ZIP Code in L201, Column C, of the origin ZIP Code in Column A. Fewer than six pieces at 5-digit, 3-digit, and ADC levels are not permitted.

1. Line 1: Use L201, Column C.

2. Line 2: "PER" or "NEWS" as applicable, followed by "FLTS WKG W FCM."

c. Mixed ADC: No minimum.

1. Line 1: Use L009.

2. Line 2: "PER" or "NEWS" as applicable, followed by "FLTS."

9.3 Standard Mail

9.3.1 Basic Standards

Bundles of flats in an automation rate mailing must be cosacked with bundles of flats in a Presorted rate mailing under the following conditions:

a. The automation rate pieces and the Presorted rate pieces are part of the same mailing job and are reported on the same postage statement.

b. Pieces in the automation rate mailing must meet the criteria for a flat under 301.3.0. Pieces in the Presorted rate mailing must meet the criteria for a flat under 301.1.1.

c. The automation rate mailing must meet the eligibility criteria in 343.7.0, except that the sacking and documentation criteria in 9.3.1, 9.3.4, and 9.3.5 must be met rather than the sacking and documentation criteria in 345.7.0.

d. The Presorted rate mailing must meet the eligibility criteria in 343.2.0 and 343.3.0, except that the sacking and documentation criteria in 9.3.1, 9.3.4, and 9.3.5 must be met rather than the sacking and documentation criteria in 345.5.0.

e. The rates for pieces in the automation rate mailing are applied based on the number of pieces in the bundle and the level of bundle to which they are sorted under 343.7.0. The rates for pieces in the Presorted rate mailing are based on the number of pieces in the bundle and the level of sack in which they are placed under 343.3.6 and 343.3.7.

f. The pieces must be marked according to 302.

g. The bundles prepared from the automation rate mailing and the bundles prepared from the Presorted rate mailing must be sorted into the same sacks as described in 9.3.4 and 9.3.5.

h. A complete, signed postage statement(s), using the correct USPS form or an approved facsimile, must accompany each mailing job prepared under these procedures. In addition to the applicable postage statement, documentation produced by PAVE-certified software or standardized documentation under 708.1.0 must be submitted with each cosacked mailing job that describes for each sack sortation level the number of pieces qualifying for each applicable automation rate and the number of pieces qualifying for each applicable Presorted rate.

i. Barcoded sack labels under 708.6.0 must be used to label the sacks.

9.3.2 Bundle Preparation

Except for mail prepared under the cobundling option in 9.3.3, the automation rate mailing must be bundled and labeled under 345.7.0 and the Presorted rate mailing must be bundled and labeled under 345.5.0. Loose packing under 345.5.0 is not permitted.

9.3.3 Optional Cobundling Preparation

As an option to the basic bundling requirements in 9.3.2, a mailer may choose to cobundle automation rate and Presorted rate flat-size pieces, subject to the conditions in 11.0.

9.3.4 Sacking Under 125-Piece or 15-Pound Rules

When the minimum quantity of 125 pieces or 15 pounds of mail is specified for a sack sortation level in 9.3.5, the provisions of 345.7.5.3 apply.

9.3.5 Sack Preparation and Labeling

[2-3-05] Presorted rate and automation rate bundles prepared under 9.3.2 and 9.3.3 must be presorted together into sacks (cosacked) in the sequence listed below. Sacks must be labeled using the following information for Lines 1 and 2, and 345.4.0 for other sack label criteria.

a. 5-Digit. Required, 125-piece/15-pound minimum.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 345.4.2 for military mail).

2. Line 2: "STD FLTS 5D BC/NBC."

b. 3-Digit. Required, 125-piece/15-pound minimum.

1. Line 1: use L002, Column A.

2. Line 2: "STD FLTS 3D BC/NBC."

c. Origin/entry 3-digit. Required for each 3-digit ZIP Code served by the SCF of the origin (verification) office, optional for each 3-digit ZIP Code served by the SCF of an entry office other than the origin office, no minimum.

1. Line 1: use L002, Column A.

2. Line 2: "STD FLTS 3D BC/NBC."

d. ADC. Required, 125-piece/15-pound minimum, use L004 to determine ZIP Codes served by each ADC.

1. Line 1: use L004, Column B.

2. Line 2: "STD FLTS ADC BC/NBC."

e. Mixed ADC. Required, no minimum.

1. Line 1: Use L009, Column B.

2. Line 2: "STD FLTS BC/NBC WKG."

9.3.6 Tray Preparation and Labeling

Presorted rate and automation rate bundles meeting the standards in 345.3.0 for letter trays and prepared under 9.3.2 must be presorted together into trays (cotrayed) in the sequence in 9.3.5. Trays must be labeled using the information for Lines 1 and 2 and 345.4.0 for other tray label criteria. Cobundling under this option is not permitted.

9.4 Bound Printed Matter

9.4.1 Basic Standards

Bundles of flat-size pieces in a Presorted rate mailing qualifying for and claiming the barcoded discount under 363.2.0, 363.3.0, and 363.4.0 must be cosacked with bundles of flat-size pieces from a Presorted rate mailing (not claiming the barcoded discount) under the following conditions:

a. The Presorted rate pieces qualifying for and claiming the barcoded discount and the Presorted rate pieces must be part of the same mailing job and be reported on the same postage statement.

b. The Presorted rate pieces qualifying for and claiming the barcoded discount must meet the criteria for flat-size mail under 301.3.0. Pieces in the Presorted rate mailing must meet the criteria for flat-size mail under 301.2.0.

c. The Presorted rate mailing qualifying for and claiming the barcoded discount must meet the eligibility criteria in 363.2.0, 363.3.0, and 363.4.0, the mail preparation standards in 365.7.0, the sacking requirements in 9.4.4, and the documentation criteria in 9.4.1h.

d. The Presorted rate mailing must meet the eligibility criteria in 363.2.0, 363.3.0, and 363.4.0, the mail preparation standards in 365.5.0, the sacking requirements in 9.4.4, and the documentation criteria in 9.4.1h.

e. The rates for pieces in the Presorted rate mailing qualifying for and claiming the barcoded discount are applied based on meeting the sortation requirements in 365.7.0, and when applicable, the zone. The rates for pieces in the Presorted rate mailing are based on meeting the sortation requirements in 365.5.0, and when applicable, the zone.

f. The pieces must be marked according to 302.

g. The bundles prepared from the Presorted rate mailing qualifying for the barcoded discount and the bundles prepared from the Presorted rate mailing must be sorted into the same sacks as described in 9.4.4.

h. A complete, signed postage statement(s), using the correct USPS form or an approved facsimile, must accompany each mailing job prepared under these procedures. In addition to the applicable postage statement, standardized documentation under 708.1.0 must be submitted with each cosacked mailing job that describes for each sack sortation level the number of pieces qualifying for the barcoded discount and the number of pieces qualifying for each applicable Presorted rate.

i. Barcoded sack labels under 708.6.0 must be used to label the sacks.

9.4.2 Bundle Preparation

Except for mail prepared under the cobundling option in 9.4.3, the Presorted rate mailing qualifying for and claiming the barcoded discount must be bundled and labeled under 365.7.0, and the Presorted rate mailing must be bundled and labeled under 365.5.0.

9.4.3 Optional Cobundling Preparation

As an alternative to the basic bundling requirements in 9.4.2, flat-size Presorted rate pieces qualifying for and claiming the barcoded discount may be cobundled with flat-size Presorted rate pieces, subject to 11.0.

9.4.4 Sack Preparation and Labeling

[2-3-05] Bundles of Presorted rate pieces qualifying for and claiming the barcoded discount and Presorted rate pieces prepared under 9.4.2 or 9.4.3 must be presorted together into sacks (cosacked) using the following preparation sequence, sack size, and labeling:

a. 5-digit (required); minimum 20 addressed pieces; labeling:

1. Line 1: city, state, and 5-digit ZIP Code destination (see 345.4.2 for overseas military mail).

2. Line 2: "PSVC FLTS 5D BC/NBC."

b. 3-digit (required, except for optional bundles with 3-digit ZIP Code prefixes indicated by an "N" in L002, when optional SCF sacks are prepared); minimum 20 addressed pieces; labeling:

1. Line 1: L002, Column A.

2. Line 2: "PSVC FLTS 3D BC/NBC."

c. SCF (optional); minimum 20 addressed pieces; labeling:

1. Line 1: L005, Column B.

2. Line 2: "PSVC FLTS SCF BC/NBC."

d. ADC (required); minimum 20 addressed pieces (use L004 to determine ZIP Codes served by each ADC); labeling:

1. Line 1: L004, Column B.

2. Line 2: "PSVC FLTS ADC BC/NBC."

e. Mixed ADC (required); no minimum; labeling:

1. Line 1: Use L009, Column B.

2. Line 2: "PSVC FLTS BC/NBC WKG."

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10.0 Preparation for Merged Containerization of Bundles of Flats Using City State Product

10.1 Periodicals

10.1.1 Basic Standards

Carrier route bundles in a carrier route rate mailing may be placed in the same sack or on the same pallet as 5-digit bundles from an automation rate mailing and 5-digit bundles from a Presorted rate mailing (including pieces cobundled under 11.0) under the following conditions:

a. A carrier route mailing must be part of the mailing job, unless cobundled under 11.0 utilizing 5-digit scheme (L007) or 3-digit scheme (L008) bundle preparation, and sacked under 10.1.4.

b. The pieces in the carrier route mailing, the automation rate mailing, and the Presorted rate mailing must be part of the same mailing job.

c. Pieces in the automation rate mailing must meet the criteria for a flat under 301.3.0. Pieces in the Presorted rate mailing and the carrier route mailing must be nonletter-size.

d. Mailers must use the Carrier Route Indicators field in the City State Product (see 509.1.2) to prepare the mailing and enter the mailing no later than 90 days after the release date of the City State Product used.

e. Carrier route bundles may be cosacked or copalletized with automation rate 5-digit bundles, Presorted rate 5-digit bundles, and cobundled 5-digit bundles only for those 5-digit ZIP Codes that have an "A" or "C" indicator in the Carrier Route Indicators field in the City State Product indicating eligibility for such cosacking or copalletization. Containers of mail sorted in this manner are called "merged 5-digit" sacks or pallets. Containers of mail sorted in this manner for which scheme (L001) sortation is also performed are called "merged 5-digit scheme" sacks or pallets. Pieces in 5-digit scheme (L007) bundles may not be placed in merged 5-digit containers.

f. If sortation under this section is performed, merged 5-digit sacks or pallets must be prepared for all 5-digit ZIP Codes with an "A" or "C" indicator in the City State Product that permits such preparation when there is enough volume for the 5-digit ZIP Code to prepare such a sack under 10.1.4 or such a pallet under 10.1.5. In addition, all possible merged 5-digit scheme sacks must be prepared under 10.1.4, or all possible merged 5-digit scheme and 5-digit scheme pallets must be prepared under 10.1.5.

g. The carrier route mailing must meet the eligibility criteria in 707.13.0, the automation rate mailing must meet the eligibility criteria in 707.14.0, and the Presorted rate mailing must meet the eligibility criteria in 707.12.0.

h. For sacked mailings, the rates for pieces in the carrier route mailing are based on the criteria in 707.13.0, the rates for pieces in the automation rate mailing are applied based on the number of pieces in the bundle and the level of bundle to which they are sorted under 707.14.0, and the rates for pieces in the Presorted rate mailing are based on the number of pieces in the bundle and the level of sack to which they are sorted under 707.12.0.

i. For palletized mailings, the rates are based on the level of bundle and the number of pieces in the bundle under 707.12.0, 707.13.0, and 707.14.0.

j. For mailings prepared in sacks, firm bundles and 5-digit scheme bundles may not be combined within a 5-digit scheme (L007) bundle or within a 5-digit scheme (L007) sack. A firm bundle can contribute toward the six-piece minimum for rate eligibility and must be placed in a separate individual 5-digit sack under 10.1.4g to maintain 5-digit rate eligibility. Firm bundles may be placed with 5-digit scheme, 3-digit scheme, and other presort destination bundles in 3-digit, SCF, ADC, and mixed ADC sacks, as appropriate.

k. The bundles from each separate mailing must be sorted together into sacks (cosacked) under 10.1.4 or on pallets (copalletized) under 10.1.5 using presort software that is PAVE-certified.

l. A complete, signed postage statement(s), using the correct USPS form or an approved facsimile, must accompany each mailing job prepared under these procedures.

m. In addition to the postage statement(s), documentation prepared by PAVE-certified software must be submitted with each cosacked or copalletized mailing job that describes for each sack sortation level and sack, or each pallet sortation level and pallet, the number of pieces qualifying for each applicable carrier route rate, each applicable automation rate, and each applicable Presorted rate under 708.1.0.

n. Barcoded sack labels under 708.6.0 must be used to label sacks.

10.1.2 Bundle Preparation

Bundles must be prepared as follows:

a. Sacked Mailings. The carrier route mailing must be bundled and labeled under 707.23.0. Except when prepared under the cobundling option in 11.0, the automation rate mailing must be bundled and labeled under 707.25.0 and the Presorted rate mailing must be bundled and labeled under 707.22.0.

b. Palletized Mailings. Bundles placed on pallets must be prepared under the standards in 8.9.

10.1.3 Low-Volume Bundles in Sacks or on Pallets

Carrier route, 5-digit scheme (L007), 5-digit, 3-digit scheme (L008), and 3-digit bundles prepared under 707.22.0, 707.23.0, and 707.25.0 or 11.0 that contain fewer than six pieces may be placed in sacks under 10.1.4, or placed on pallets under 10.1.5 as follows:

a. Low-volume carrier route, 5-digit, 3-digit scheme, and 3-digit bundles may be placed in carrier routes, merged 5-digit scheme (L001), 5-digit scheme carrier routes, merged 5-digit, 5-digit carrier routes, 5-digit, 3-digit, and SCF sacks, as appropriate, or on merged 5-digit scheme (L001), 5-digit scheme carrier routes, 5-digit scheme, merged 5-digit, 5-digit carrier routes, 5-digit, 5-digit metro, 3-digit, or SCF pallets, as appropriate. Pieces in such low-volume bundles must be claimed at the applicable basic rate.

b. Low-volume 5-digit scheme bundles may be placed in 5-digit scheme (L007), 3-digit, and SCF sacks, or on 3-digit, or SCF pallets, as appropriate. Pieces in such low-volume bundles must be claimed at the applicable basic rate.

10.1.4 Sack Preparation and Labeling

[10-27-05] Mailers must prepare sacks containing the individual carrier route and 5-digit bundles from the carrier route, automation rate, and Presorted rate mailings in the mailing job in the following manner and sequence. All carrier route bundles must be placed in sacks under 10.1.4a through 10.1.4e as described below. When sortation under this section is performed, merged 5-digit scheme sacks, 5-digit scheme carrier routes sacks, and merged 5-digit sacks must be prepared for all possible 5-digit schemes or 5-digit ZIP Codes as applicable, using L001 (merged 5-digit scheme and 5-digit scheme carrier routes sort only) and the Carrier Route Indicators field in the City State Product when there is enough volume for the 5-digit scheme or 5-digit ZIP Code to prepare such sacks under 10.1.4, Sack Preparation and Labeling. Mailers must label sacks according to the Line 1 and Line 2 information listed below and under 707.20.1, Basic Standards. If, due to the physical size of the mailpieces, the automation rate pieces are considered flat-size under 301.3.0, Physical Standards for Automation Flats, and the carrier route sorted pieces and Presorted rate pieces are considered irregular parcels under 401.1.6, Irregular Parcel, "FLTS" must be shown as the processing category shown on the sack label. If a mailing job does not contain an automation rate mailing and the carrier route mailing and the Presorted rate mailing are irregular parcel shaped, use "IRREG" for the processing category on the contents line of the label.

a. Carrier Route. Required. May contain only carrier route bundles. Must be prepared when there are 24 or more pieces for the same carrier route. Smaller volume not permitted.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 707.21.1.2 for military mail).

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; followed by "CR" for basic rate, "WSH" for high-density rate, or "WSS" for saturation rate; followed by the route type and number.

b. Merged 5-Digit Scheme. Required. Permitted only when there is at least one 5-digit ZIP Code in the scheme with an "A" or "C" indicator in the City State Product. May contain carrier route bundles for any 5-digit ZIP Code(s) in a single scheme listed in L001 as well as automation rate 5-digit bundles and Presorted rate 5-digit bundles for those 5-digit ZIP Codes in the scheme that have an "A" or "C" indicator in the City State Product. When preparation of this sack level is permitted, a sack must be prepared if there are any carrier route bundle(s) for the scheme. If there is not at least one carrier route bundle for any 5-digit destination in the scheme, preparation of this sack is required at 24 pieces in 5-digit bundles, and optional with one six-piece bundle or at least one 5-digit bundle of fewer pieces for the scheme in L001 under 10.1.3, for any of the 5-digit ZIP Codes in the scheme that have an "A" or "C" indicator in the City State Product. For a 5-digit ZIP Code(s) in a scheme that has a "B" or "D" indicator in the City State Product, prepare sack(s) for the automation rate and Presorted rate bundles under 10.1.4g and 10.1.4h. For 5-digit ZIP Codes not included in a scheme, prepare sacks under 10.1.4d through 10.1.4h.

1. Line 1: use L001, Column B.

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; followed by "CR/5D SCH."

c. 5-Digit Scheme Carrier Routes. Required. May contain only carrier route bundles for 5-digit ZIP Code(s) in a single scheme listed in L001 when all the 5-digits in the scheme have a "B" or "D" indicator in the City State Product. Must be prepared if there are any carrier route bundle(s) for such a scheme.

1. Line 1: use L001, Column B.

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; followed by "CR-RTS SCH."

d. Merged 5-Digit. Required. Must be prepared only for those 5-digit ZIP Codes that are not part of a scheme and that have an "A" or "C" indicator in the City State Product. May contain carrier route bundles, automation rate 5-digit bundles, and Presorted rate 5-digit bundles. Must be prepared if there are any carrier route bundles for the 5-digit. If there is not at least one carrier route bundle for the 5-digit destination, preparation of this sack is required at 24 pieces in 5-digit bundles for the same 5-digit destination, and is optional with one six piece bundle or at least one bundle of fewer pieces under 10.1.3.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 707.21.1.2 for military mail).

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; followed by "CR/5D."

e. 5-Digit Carrier Routes. Required. Sack only carrier route bundles for a 5-digit ZIP Code remaining after preparing sacks under 10.1.4a through 10.1.4d to this level. May contain only carrier route bundles for any 5-digit ZIP Code that is not part of a scheme listed in L001 and that has a "B" or "D" indicator in the City State Product. No sack minimum.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 707.21.1.2 for military mail).

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; followed by "CR-RTS."

f. 5-Digit Scheme. Required. May contain only automation rate and cobundled automation and Presorted rate 5-digit scheme bundles for the same 5-digit scheme destination. Must be prepared at 24 or more pieces, optional with one six-piece bundle or at least one bundle of fewer pieces under 10.1.3.

1. Line 1: L007, Column B.

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS 5D SCH BC."

g. 5-Digit. Required. May contain only automation rate 5-digit bundles and Presorted rate 5-digit bundles for the same 5-digit ZIP Code for any 5-digit ZIP Code that has a "B" or "D" indicator in the City State Product. Must be prepared at 24 or more pieces, optional with one six-piece bundle or at least one bundle of fewer pieces under 10.1.3.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 707.21.1.2 for military mail).

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS 5D BC/NBC," except if there are no automation rate bundles in the mailing job, label under 707.22.6e.

h. 3-Digit through Mixed ADC Sacks. Any 5-digit scheme and 5-digit bundles remaining after preparing sacks under 10.1.4a through 10.1.4g, and all 3-digit scheme, 3-digit, ADC, origin mixed ADC (optional), and mixed ADC bundles must be sacked and labeled according to the applicable requirements under 9.2 for cosacking of automation rate and presorted rate bundles, except if there are no automation rate pieces in the mailing job, sack and label under 707.22.6, or, if there are no presorted rate bundles in the mailing job, sack and label under 707.25.3.

10.1.5 Pallet Preparation and Labeling

Mailers must prepare pallets of bundles in the manner and sequence listed below and under 8.0, Preparation for Pallets. When sortation under this option is performed, mailers must prepare all merged 5-digit scheme, 5-digit scheme carrier routes, 5-digit scheme, and merged 5-digit pallets that are possible in the mailing based on the volume of mail to the destination using L001 and/or the City State Product. Mailers must label pallets according to the Line 1 and Line 2 information listed below and under 8.6, Pallet Labels. If, due to the physical size of the mailpieces, the automation rate pieces are considered flat-size under 301.3.0, Physical Standards for Automation Flats, and the carrier route sorted pieces and Presorted rate pieces are considered irregular parcels under 401.1.6, Irregular Parcel, "FLTS" must be shown as the processing category on the pallet label. If a mailing contains no automation rate pieces and the carrier route mailing and the Presorted rate mailing are irregular parcels, use "IRREG" for the processing category on the contents line of the label.

a. Merged 5-Digit Scheme. Required and permitted only when there is at least one 5-digit ZIP Code in the scheme that has an "A" or "C" indicator in the City State Product. May contain carrier route bundles for any 5-digit ZIP Code(s) in a single scheme listed in L001 as well as automation rate 5-digit bundles and Presorted rate 5-digit bundles for those 5-digit ZIP Codes in the scheme that have an "A" or "C" indicator in the City State Product. For schemes in which all of the 5-digit ZIP Codes have a "B" or "D" indicator in the City State Product, begin preparing pallets under 10.1.5d (5-digit scheme carrier routes pallet). For 5-digit ZIP Codes not included in a scheme, begin preparing pallets under 10.1.5d (merged 5-digit pallet).

1. Line 1: use L001, Column B.

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; followed by "CR/5D SCHEME."

b. 5-Digit Scheme Carrier Routes. Required. May contain only carrier route bundles for carrier routes in an L001 scheme for which all of the 5-digit ZIP Codes in the scheme have a "B" or "D" indicator in the City State Product.

1. Line 1: use L001, Column B.

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; followed by "CR-RTS SCHEME."

c. 5-Digit Scheme. Not permitted for flats that meet the dimension, weight, and flexibility criteria of the AFSM 100 in 301.3.3, including copalletized or combined AFSM 100-compatible flats and other flats, and not permitted for sacks or trays. Required for all other flats and irregular parcels. May contain only 5-digit bundles of automation rate and Presorted rate mail for the same 5-digit scheme under L001 for ZIP Codes in the scheme that have a "B" or "D" indicator in the City State Product.

1. Line 1: use L001, Column B.

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; followed by "5D"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate mail; followed by "SCHEME" or "SCH."

d. Merged 5-Digit. Required. May contain carrier route bundles, automation rate 5-digit bundles, and Presorted rate 5-digit for those 5-digit ZIP Codes that are not part of a scheme and that have an "A" or "C" indicator in the City State Product.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 8.6.4 for military mail).

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or IRREG" as applicable; followed by "CR/5D."

e. 5-Digit Carrier Routes. Required. May contain only carrier route rate bundles for the same 5-digit ZIP Code for those 5-digit ZIP Codes that are not part of a scheme and that have a "B" or "D" indicator in the City State Product.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 8.6.4 for military mail).

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; followed by "CARRIER ROUTES" or "CR-RTS."

f. 5-Digit. Required. May contain only automation rate 5-digit bundles and Presorted rate 5-digit bundles for the same 5-digit ZIP Code with a "B" or "D" indicator in the City State Product, or 5-digit scheme (L007) bundles (automation rate and cobundled automation and Presorted rate pieces only). Five-digit scheme bundles are assigned to 5-digit pallets according to the OEL "label to" 5-digit ZIP Code.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 8.6.4 for military mail).

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; followed by "5D"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate mail.

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

1. Line 1: use L006, Column C.

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

h. 3-Digit. Optional. Option not available for 3-digit ZIP Code prefixes marked "N" in L002. May contain carrier route rate, automation rate, and Presorted rate mail, including 3-digit scheme (L008) bundles (automation and cobundled automation and Presorted rate pieces only). Three-digit scheme bundles are assigned to 3-digit pallets according to the OEL "label to" 3-digit ZIP Code.

1. Line 1: use L002, Column A.

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or IRREG" as applicable; followed by "3D," followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate mail and/or carrier route mail.

i. SCF. Required. May contain carrier route rate, automation rate, and Presorted rate bundles.

1. Line 1: use L002, Column C.

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

j. ADC. Required. May contain carrier route rate, automation rate, and Presorted rate bundles.

1. Line 1: use L004, Column B.

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

10.2 Standard Mail

10.2.1 Basic Standards

Carrier route bundles from a carrier route rate mailing may be placed in the same sack or on the same pallet as 5-digit bundles from an automation rate mailing and 5-digit bundles from a Presorted rate mailing (including pieces cobundled under 11.0) under the following conditions:

a. A carrier route mailing must be part of the mailing job, unless cobundled under 11.0 utilizing 5-digit scheme (L007) or 3-digit scheme (L008) bundle preparation and sacked under 10.1.4.

b. The pieces in the carrier route rate mailing, the automation rate mailing, and the Presorted rate mailing must be part of the same mailing job, and all three mailings must be reported on the same postage statement.

c. Pieces in the automation rate mailing must meet the criteria for a flat under 301.3.0. Pieces in the Presorted rate mailing and the carrier route mailing must meet the criteria for a flat under 301.1.1.

d. Mailers must use the Carrier Route Indicators field in the City State Product to prepare the mailing and enter the mailing no later than 90 days after the release date of the City State Product used.

e. Carrier route bundles may be cosacked or copalletized with automation rate 5-digit bundles, Presorted rate 5-digit bundles, and cobundled 5-digit bundles only for those 5-digit ZIP Codes that have an "A" or "C" indicator in the Carrier Route Indicators field in the City State Product indicating eligibility for such cosacking or copalletization. Containers of mail sorted in this manner are called "merged 5-digit" sacks or pallets. Containers of mail sorted in this manner for which scheme (L001) sortation is also performed are called "merged 5-digit scheme" sacks or pallets. Pieces in 5-digit scheme (L007) bundles may not be placed in merged 5-digit containers.

f. If sortation under this section is performed, merged 5-digit sacks or pallets must be prepared for all 5-digit ZIP Codes with an "A" or "C" indicator in the City State Product that permits such preparation when there is enough volume for the 5-digit ZIP Code to prepare that sack or pallet.

g. The carrier route mailing must meet the eligibility criteria in 343.6.0, the automation rate mailing must meet the eligibility criteria in 343.7.0, and the Presorted rate mailing must meet the eligibility criteria in 343.5.0.

h. For sacked mailings, the rates for pieces in the carrier route mailing are based on the criteria in 343.6.0, the rates for pieces in the automation rate mailing are applied based on the number of pieces in the bundle and the level of bundle to which they are sorted under 343.7.0, and the rates for pieces in the Presorted rate mailing are based on the number of pieces in the bundle and the level of sack to which they are sorted under 343.5.0.

i. The pieces in each separate mailing must bear the applicable markings required under 345.5.0, 345.6.0, or 345.7.0 and under 302.

j. For palletized mailings, the rates are based on the level of bundle that the pieces are contained in under 343.6.0 and 343.7.0.

k. The bundles from each separate mailing must be sorted together into sacks (cosacked) under 10.2.3 and 10.2.4 or on pallets (copalletized) under 10.2.5 using presort software that is PAVE-certified.

l. A complete, signed postage statement, using the correct USPS form or an approved facsimile, must accompany each mailing job prepared under these procedures.

m. In addition to the applicable postage statement, documentation produced by PAVE-certified software must be submitted with each cosacked or copalletized mailing job that describes for each sack sortation level and sack, or each pallet sortation level and pallet, the number of pieces qualifying for each applicable carrier route rate, each applicable automation rate, and each applicable Presorted rate.

n. Barcoded sack labels under 708.6.0 must be used to label sacks.

10.2.2 Bundle Preparation

Bundles must be prepared as follows:

a. Sacked Mailings. The carrier route mailing must be bundled and labeled under 345.6.0. Except when prepared under the cobundling option in 11.0, the automation rate mailing must be bundled and labeled under 345.7.0 and the Presorted rate mailing must be bundled and labeled under 345.5.0.

b. Palletized Mailings. Bundles placed on pallets must be prepared under the standards in 8.0, Preparation for Pallets.

10.2.3 Sacking Under 125-Piece or 15-Pound Rules

When the minimum quantity of 125 pieces or 15 pounds of mail is specified for a sack sortation level in 10.2.4, the provisions of 345.7.5.3 apply.

10.2.4 Sack Preparation and Labeling

Mailers must prepare sacks in the following manner and sequence. All carrier route bundles must be placed in sacks under 10.2.4a through 10.2.4e as described below. Mailers must prepare all merged 5-digit scheme sacks, 5-digit scheme carrier routes sacks, and merged 5-digit sacks that are possible in the mailing based on the volume of mail to the destination using L001 and the Carrier Route Indicators field in the City State Product. Mailers must label sacks according to the Line 1 and Line 2 information listed below and under 345.4.0, Sack and Tray Labels.

a. Carrier Route. Required. May contain only carrier route bundles. Must be prepared when there are 125 pieces or 15 pounds of pieces for the same carrier route. Smaller volume not permitted.

1. Line 1 labeling: use city, state, and 5-digit ZIP Code destination (see 345.4.2 for military mail).

2. Line 2 labeling: "STD FLTS"; followed by "ECRLOT," "ECRWSH," or "ECRWSS" as applicable for basic, high-density, and saturation rate mail; followed by the route type and number.

b. Merged 5-Digit Scheme. Required and permitted only when there is at least one 5-digit ZIP Code in the scheme with an "A" or "C" indicator in the City State Product. May contain carrier route bundles for any 5-digit ZIP Code(s) in a single scheme listed in L001 as well as automation rate 5-digit bundles and Presorted rate 5-digit bundles for those 5-digit ZIP Codes in the scheme with an "A" or "C" indicator in the City State Product. When preparation of this sack level is permitted, a sack must be prepared if there are any carrier route bundle(s) for the scheme. If there is not at least one carrier route bundle for any 5-digit destination in the scheme, preparation of this sack is required when there are at least 125 pieces or 15 pounds of pieces in 5-digit bundles for any of the 5-digit ZIP Codes in the scheme that have an "A" or "C" indicator in the City State Product (smaller volume not permitted). For a 5-digit ZIP Code(s) in a scheme with a "B" or "D" indicator in the City State Product, prepare sack(s) for the automation rate and Presorted rate bundles under 10.2.4g and 10.2.4h. For 5-digit ZIP Codes not included in a scheme, prepare sacks under 10.2.4d through 10.2.4h.

1. Line 1: use L001, Column B.

2. Line 2: "STD FLTS CR/5D SCH."

c. 5-Digit Scheme Carrier Routes. Required. May contain only carrier route bundles for 5-digit ZIP Code(s) in a single scheme listed in L001 when all the 5-digit ZIP Codes in the scheme have a "B" or "D" indicator in the City State Product. Must be prepared if there are any carrier route bundle(s) for such a scheme.

1. Line 1: use L001, Column B.

2. Line 2: "STD FLTS CR-RTS SCH."

d. Merged 5-Digit. Required. Must be prepared only for those 5-digit ZIP Codes that are not part of a scheme and that have an "A" or "C" indicator in the City State Product. May contain carrier route bundles, automation rate 5-digit bundles, and Presorted rate 5-digit bundles. Must be prepared if there are any carrier route bundles for the 5-digit destination. If there is not at least one carrier route bundle for the 5-digit destination, must be prepared when there are at least 125 pieces or 15 pounds of pieces in 5-digit bundles for the same 5-digit destination (smaller volume not permitted).

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 345.4.2 for military mail).

2. Line 2: "STD FLTS CR/5D."

e. 5-Digit Carrier Routes. Required. Sack only carrier route bundles for a 5-digit ZIP Code remaining after preparing sacks under 10.2.4a through 10.2.4d to this level. May contain only carrier route bundles for any 5-digit ZIP Code that is not part of a scheme listed in L001 and that has a "B" or "D" indicator in the City State Product. No sack minimum.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 345.4.2 for military mail).

2. Line 2: "STD FLTS CR-RTS."

f. 5-Digit Scheme. Required. May contain only automation rate, and cobundled automation and Presorted rate 5-digit scheme bundles for the same 5-digit scheme destination. Must be prepared when there are at least 125 pieces or 15 pounds of pieces for the 5-digit scheme destination. Smaller volume not permitted.

1. (1) Line 1: L007, Column B.

2. (2) Line 2: "STD FLTS 5D SCH BC."

g. 5-Digit. Required. May contain only automation rate 5-digit bundles and Presorted rate 5-digit bundles for a 5-digit ZIP Code that has a "B" or "D" indicator in the City State Product. Must be prepared when there are at least 125 pieces or 15 pounds of pieces for the 5-digit ZIP Code. Smaller volume not permitted.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 345.4.2 for military mail).

2. Line 2: "STD FLTS 5D BC/NBC," except if there are no automation rate bundles in the mailing job, use "STD FLTS 5D NON BC."

h. 3-Digit through Mixed ADC Sacks. Any 5-digit scheme and 5-digit bundles remaining after preparing sacks under 10.2.4a through 10.2.4g, and all 3-digit, ADC, and Mixed ADC bundles, must be sacked and labeled according to the applicable requirements under 9.3 for cosacking of automation rate and Presorted rate bundles, except if there are no automation rate bundles in the mailing job, sack and label under 345.5.7, or, if there are no Presorted rate bundles in the mailing job, sack and label under 345.7.5.4.

10.2.5 Pallet Preparation and Labeling

[2-3-05] Mailers must prepare pallets in the manner and sequence listed below and under 8.0. Mailers must prepare all merged 5-digit scheme, 5-digit scheme carrier routes, 5-digit scheme, and merged 5-digit pallets that are possible in the mailing based on the volume of mail to the destination using L001 and/or the City State Product. Mailers must label pallets according to the Line 1 and Line 2 information listed below and under 8.6.

a. Merged 5-Digit Scheme. Required and permitted only when there is at least one 5-digit ZIP Code in the scheme that has an "A" or "C" indicator in the City State Product. May contain carrier route bundles for any 5-digit ZIP Code(s) in a single scheme listed in L001 as well as automation rate 5-digit bundles and Presorted rate 5-digit bundles for those 5-digit ZIP Codes in the scheme that have an "A" or "C" indicator in the City State Product. For schemes in which all of the 5-digit ZIP Codes have a "B" or "D" indicator in the City State Product, begin preparing pallets under 10.2.5b (5-digit scheme carrier routes pallet). For 5-digit ZIP Codes not included in a scheme, begin preparing pallets under 10.2.5c (merged 5-digit pallet).

1. Line 1: use L001, Column B.

2. Line 2: "STD FLTS CR/5D SCHEME."

b. 5-Digit Scheme Carrier Routes. Required. May contain only carrier route bundles for carrier routes in an L001 scheme for which all of the 5-digit ZIP Codes in the scheme have a "B" or "D" indicator in the City State Product.

1. Line 1: use L001, Column B.

2. Line 2: "STD FLTS CR-RTS SCHEME."

c. Merged 5-Digit. Required. May contain carrier route rate bundles, automation rate 5-digit bundles, and Presorted rate 5-digit bundles for those 5-digit ZIP Codes that are not part of a scheme and that have an "A" or "C" indicator in the City State Product.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 8.6.4 for military mail).

2. Line 2: "STD FLTS CR/5D."

d. 5-Digit Carrier Routes. Required. May contain only carrier route rate bundles for the same 5-digit ZIP Code for those 5-digit ZIP Codes that are not part of a scheme and that have a "B" or "D" indicator in the City State Product.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 8.6.4 for military mail).

2. Line 2: "STD FLTS," followed by "CARRIER ROUTES" or "CR-RTS."

e. 5-Digit. Required. May contain only automation rate 5-digit bundles and Presorted rate 5-digit bundles for the same 5-digit ZIP Code with a "B" or "D" indicator in the City State Product, or 5-digit scheme (L007) bundles (automation rate and cobundled automation and Presorted rate pieces only). Five-digit scheme bundles are assigned to 5-digit pallets according to the OEL "label to" 5-digit ZIP Code.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 8.6.4 for military mail).

2. Line 2: "STD FLTS 5D"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate mail.

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

1. Line 1: use L006, Column C.

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

g. 3-Digit. Optional. Option not available for 3-digit ZIP Code prefixes marked "N" in L002. May contain carrier route rate, automation rate, and Presorted rate mail, including 3-digit scheme (L008) bundles (automation and cobundled automation and Presorted rate pieces only). Three-digit scheme bundles are assigned to 3-digit pallets according to the OEL "label to" 3-digit ZIP Code.

1. Line 1: use L002, Column A.

2. Line 2: "STD FLTS 3D"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate mail and/or carrier route rate mail.

h. SCF. Required. May contain carrier route rate, automation rate, and Presorted rate bundles.

1. Line 1: use L002, Column C.

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

i. ASF. Required, except that an ASF sort may not be required if using bundle reallocation under 8.12.3. May contain carrier route rate, automation rate, and/or Presorted rate bundles. Sort ADC bundles to ASF pallets based on the "label to" ZIP Code for the ADC destination of the bundle in L004. At the mailer's option, sort appropriate mixed ADC bundles to ASF pallets based on the "label to" ZIP Code for the ADC destination of the bundle in L010. All optional mixed ADC bundles on ASF pallets must contain only pieces destinating within the ASF as shown in Exhibit 6.1.6. See 346.3.0 for additional requirements for DBMC rate eligibility.

1. Line 1: use L602, Column B.

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

j. BMC. Required. May contain carrier route rate, automation rate, and/or Presorted rate bundles. Sort ADC bundles to BMC pallets based on the "label to" ZIP Code for the ADC destination of the bundle in L004. At the mailer's option, sort appropriate mixed ADC bundles to BMC pallets based on the "label to" ZIP Code for the ADC destination of the bundle in L010. All optional mixed ADC bundles on BMC pallets must contain only pieces destinating within the BMC as shown in Exhibit 6.1.6. See 346.3.0 for additional requirements for DBMC rate eligibility.

1. Line 1: Use L601, Column B.

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

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11.0 Preparation of Cobundled Automation Rate and Presorted Rate Flats

11.1 First-Class Mail

11.1.1 Basic Standards

Mailers may choose to cobundle (see 335.1.4m.) automation rate and Presorted rate pieces as an option to the basic bundling requirements in 9.0, Preparation for Cotraying and Cosacking Bundles of Automation and Presorted Flats, subject to the following conditions:

a. The pieces in the automation rate mailing and the Presorted rate mailing must be part of the same mailing job and must be reported on the appropriate postage statement.

b. The pieces in the mailing job must be flat-size and meet any other size and mailpiece design requirements applicable to the rate category for which they are prepared.

c. The basic standards in 9.0 must be met.

d. A minimum of 500 automation rate pieces and 500 Presorted rate pieces are required. The total number of automation rate and Presorted rate pieces must be used to meet the minimum volume requirements for bundles and containers to a presort destination.

e. Presorted rate pieces must contain a 5-digit barcode and be cobundled with automation rate pieces for the same presort destination. If this optional preparation method is used, all automation rate and Presorted rate pieces in the same mailing job and reported on the same postage statement must be cobundled.

f. Within a bundle, all pieces must meet the AFSM 100 requirements or all pieces must meet the UFSM 1000 requirements described in 301.3.0.

g. Mailers must sort automation rate pieces and Presorted rate pieces for each presort destination so that only one physical bundle for each logical presort destination (see 335.1.4l.) includes both automation rate pieces (containing a ZIP+4 or delivery point barcode) and Presorted rate pieces (containing a 5-digit barcode).

11.1.2 Bundle Preparation

Preparation sequence, bundle size, and labeling:

a. 5-digit (required); 10-piece minimum; red Label 5 or optional endorsement line (OEL).

b. 3-digit (required); 10-piece minimum; green Label 3 or OEL.

c. ADC (required); 10-piece minimum; pink Label A or OEL.

d. Mixed ADC (required); no minimum; tan Label X or OEL.

11.2 Periodicals

11.2.1 Basic Standards

Mailers may choose to cobundle (see 707.18.4ab.) automation rate and Presorted rate flat-size pieces as an option to the basic bundling requirements in 707.22.0 and 707.25.0. Mailing jobs consisting entirely of AFSM 100-compatible pieces meeting the criteria in 301.3.3 may be prepared in 5-digit scheme bundles using L007 and 3-digit scheme bundles using L008. 5-digit scheme and 3-digit scheme bundles must also meet the additional standards in707.18.4i.. Mailing jobs prepared using the 5-digit scheme and/or 3-digit scheme bundle option must be sacked under 10.0 or palletized under 10.0, 12.0, or 13.0. All bundles are subject to the following conditions:

a. The pieces in the automation rate mailing and the Presorted rate mailing must be part of the same mailing job and must be reported on the appropriate postage statement.

b. The pieces in the mailing job must be nonletter-size and meet any other size and mailpiece design requirements applicable to the rate category for which they are prepared.

c. Mailings prepared in sacks must meet the basic standards in 9.0 or 10.0.

d. Mailings prepared on pallets must meet the basic standards in 8.0, 10.0, 12.0, or 13.0.

e. The total number of automation rate and Presorted rate pieces must be used to meet the minimum volume requirements for bundles and containers.

f. Presorted rate pieces must contain a 5-digit barcode and be cobundled with automation rate pieces for the same presort destination. If this optional preparation method is used, all automation rate and Presorted rate pieces in the same mailing job and reported on the same postage statement must be cobundled.

g. Within a bundle, all pieces must meet the AFSM 100 requirements or all pieces must meet the UFSM 1000 requirements described in 301.3.0.

h. Mailers must sort Presorted rate pieces and automation rate pieces for each presort destination so that only one physical bundle for each logical presort destination (see 707.18.4aa.) includes both automation rate pieces (containing a ZIP+4 or delivery point barcode) and Presorted rate pieces (containing a 5-digit barcode).

11.2.2 Bundle Preparation

[10-27-05] Preparation sequence, bundle size, and labeling:

a. Firm (optional for Presorted rate pieces only under 707.22.3); two-piece minimum; blue Label F or optional endorsement line (OEL).

b. 5-digit scheme (optional under 10.0, Preparation for Merged Containerization of Bundles of Flats Using City State Product; required under 12.0, Preparation of Merged Palletization of Bundles of Flats Using a 5% Threshold, and 13.0, Preparation of Merged Palletization of Bundles of Flats Using the City State Product and a 5% Threshold); six-piece minimum (fewer permitted under 11.2.3); OEL required.

c. 5-digit (required); six-piece minimum (fewer permitted under 11.2.3); red Label 5 or OEL.

d. 3-digit scheme (optional under 10.0; required effective April 18, 2005, under 12.0 and 13.0); six-piece minimum (fewer permitted under 11.2.3); OEL required.

e. 3-digit (required); six-piece minimum (fewer permitted under 11.2.3); green Label 3 or OEL.

f. ADC (required); six-piece minimum; pink Label A or OEL.

g. Origin mixed ADC (optional); no minimum; for any remaining pieces for destinations of the origin ZIP Code in L201, Column C, of the origin ZIP Code in Column A; tan Label X or OEL.

h. Mixed ADC (required); no minimum; tan Label X or OEL.

11.2.3 Low-Volume Bundles in Sacks or on Pallets

As a general exception to 11.2.2, 5-digit scheme (L007), 5-digit, 3-digit scheme (L008), and 3-digit bundles may contain fewer than six pieces when the publisher determines that such preparation improves service. Low-volume 5-digit and 3-digit bundles may be placed in 5-digit scheme (L007), 5-digit, 3-digit, and SCF sacks, as appropriate, or on merged 5-digit scheme (L001), 5-digit scheme, merged 5-digit, 5-digit, 5-digit metro, 3-digit, or SCF pallets, as appropriate. Low-volume 5-digit scheme and 3-digit scheme bundles may be placed in 5-digit scheme, 3-digit, and SCF sacks, as appropriate, or on 3-digit, or SCF pallets, as appropriate. Pieces in such low-volume bundles must be claimed at the applicable basic rate.

11.3 Standard Mail

11.3.1 Basic Standards

Mailers may choose to cobundle (see 345.1.4u.) automation rate and Presorted rate flat-size pieces as an option to the basic bundling requirements in 345.5.0 and 345.7.0. Mailing jobs consisting entirely of AFSM 100-compatible pieces meeting the criteria in 301.3.3 may be prepared in 5-digit scheme bundles using L007 and 3-digit scheme bundles using L008. Five-digit scheme and 3-digit scheme bundles must also meet the additional standards in 345.1.4f.. Mailing jobs prepared using the 5-digit scheme and/or 3-digit scheme bundle option must be sacked under 10.0 or palletized under 10.0, 12.0, or 13.0. All bundles are subject to the following conditions:

a. The pieces in the automation rate mailing and the Presorted rate mailing must be part of the same mailing job and must be reported on the appropriate postage statement.

b. The pieces in the mailing job must be flat-size and meet any other size and mailpiece design requirements applicable to the rate category for which they are prepared.

c. Mailings prepared in sacks must meet the basic standards in 9.0 or 10.0.

d. Mailings prepared on pallets must meet the basic standards in 8.0, 10.0, 12.0, or 13.0.

e. A minimum of 200 pieces or 50 pounds of automation rate pieces are required; the Presorted rate mailing may meet the residual volume requirements in 343.3.6. The total number of automation rate and Presorted rate pieces must be used to meet the minimum volume requirements for bundles and containers.

f. Presorted rate pieces must contain a 5-digit barcode and be cobundled with automation rate pieces for the same presort destination. If this optional preparation method is used, all automation rate and Presorted rate pieces in the same mailing job and reported on the same postage statement must be cobundled.

g. Within a bundle, all pieces must meet the AFSM 100 requirements or all pieces must meet the UFSM 1000 requirements described in 301.3.0.

h. Mailers must sort Presorted rate pieces and automation rate pieces for each presort destination so that only one physical bundle for each logical presort destination (see 345.1.4t.) includes both Presorted rate pieces (containing a 5-digit barcode) and automation rate pieces (containing a ZIP+4 or delivery point barcode).

11.3.2 Bundle Preparation

Preparation sequence, bundle size, and labeling:

a. 5-digit scheme (optional):

1. For mailings containing only pieces weighing 5 ounces (0.3125 pound) or less: 15-piece minimum; optional endorsement line (OEL) required.

2. For mailings containing any pieces weighing more than 5 ounces (0.3125 pound): 10-piece minimum; OEL required.

b. 5-digit (required):

1. For mailings containing only pieces weighing 5 ounces (0.3125 pound) or less and measuring 3/4 inch thick or less: 15-piece minimum; red Label 5 or OEL.

2. For mailings containing any pieces weighing more than 5 ounces (0.3125 pound) or measuring more than 3/4 inch thick: 10-piece minimum; red Label 5 or OEL.

c. 3-digit scheme (optional); 10-piece minimum; OEL required.

d. 3-digit (required); 10-piece minimum; green Label 3 or OEL.

e. ADC (required); 10-piece minimum; pink Label A or OEL.

f. Mixed ADC (required); no minimum; tan Label X or OEL.

11.4 Bound Printed Matter

11.4.1 Basic Standards

Mailers may choose to cobundle (see 365.1.4l.) Presorted rate flat-size with and without a barcode, as an option to the basic bundling requirements in 365.5.0 and 365.7.0, subject to the following conditions:

a. The pieces in the Presorted rate mailing qualifying for and claiming the barcoded discount and the pieces in the Presorted rate mailing must be part of the same mailing job and reported on the same postage statement.

b. The mailing job must consist entirely of AFSM 100-compatible pieces meeting the criteria in 301.3.3, and may be prepared in 5-digit scheme bundles using L007 and 3-digit scheme bundles using L008.

c. Cobundled pieces must be cosacked under 9.0 or palletized under 8.0.

d. A separate minimum of 300 Presorted rate pieces qualifying for and claiming the barcoded discount and a separate minimum of 300 Presorted rate pieces are required. The combined total number of pieces qualifying for and claiming the barcoded discount and the Presorted rate must be used to meet the minimum volume requirements for bundles and sacks.

e. Presorted rate pieces must contain a 5-digit barcode and be cobundled with Presorted rate pieces qualifying for and claiming the barcoded discount for the same presort destination.

f. Unless presented using an approved manifest mailing system under 2.0, Presorted rate pieces qualifying for and claiming the barcoded discount and Presorted rate pieces for each presort destination must be sorted so that only one physical bundle for each logical presort destination includes both Presorted rate pieces qualifying for the barcoded discount (containing a ZIP+4 or delivery point barcode) and Presorted rate pieces (containing a 5-digit barcode).

11.4.2 Bundle Preparation

Preparation sequence, bundle size, and labeling:

a. 5-digit scheme (optional); minimum 10 addressed pieces or 10 pounds, maximum bundle weight 20 pounds; optional endorsement line (OEL) required.

b. 5-digit (required); minimum 10 addressed pieces or 10 pounds, maximum bundle weight 20 pounds; red Label 5 or optional endorsement line (OEL).

c. 3-digit scheme (optional); minimum 10 addressed pieces or 10 pounds, maximum bundle weight 20 pounds; OEL required.

d. 3-digit (required); minimum 10 addressed pieces or 10 pounds, maximum bundle weight 20 pounds; green Label 3 or OEL.

e. ADC (required); minimum 10 addressed pieces or 10 pounds, maximum bundle weight 20 pounds; pink Label A or OEL.

f. Mixed ADC (required); no minimum, maximum bundle weight 20 pounds; tan Label X or OEL.

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12.0 Preparation of Merged Palletization of Bundles of Flats Using a 5% Threshold

12.1 Periodicals

12.1.1 Basic Standards

[2-3-05] Five-digit scheme bundles (under L007) must be prepared, and effective April 17, 2005, 3-digit scheme bundles (under L008) also must be prepared, according to standards in 12.1.5. However, neither 5-digit scheme bundles nor 3-digit scheme bundles may be copalletized on any merged pallets. Five-digit bundles from an automation rate mailing and 5-digit bundles from a Presorted rate mailing (including pieces cobundled under 11.0) may be placed on the same pallet as carrier route bundles under the following conditions:

a. A carrier route mailing must be part of the same mailing job as the automation rate mailing and/or the Presorted rate mailing.

b. Each portion of the mailing job must meet the eligibility criteria (including rate eligibility) under the relevant DMM standards: 707.13.0 for the carrier route mailing, 707.14.0 for the automation rate mailing, and 707.12.0 for the Presorted rate mailing.

c. Pieces in the automation rate mailing must meet the criteria for a flat under 301.3.0. Pieces in the Presorted rate mailing and the carrier route mailing must be nonletter-size.

d. When firm bundles, carrier route bundles, and 5-digit bundles are placed together on the same merged 5-digit scheme or merged 5-digit pallet, pieces in 5-digit bundles (other than firm bundles) must not exceed the 5% limit described in 12.1.4.

e. All possible merged 5-digit scheme and 5-digit scheme pallets must be prepared according to standards in 12.1.5.

f. The bundles from each separate mailing must be sorted together on pallets (copalletized) under 12.1.5 using presort software that is PAVE-certified.

g. A complete, signed postage statement, using the correct USPS form or an approved facsimile, must accompany each mailing job. In addition, documentation prepared by PAVE-certified software must be submitted with each mailing job. Documentation, under 708.1.0, must describe for each "logical" pallet sortation level and each physical pallet the number of addressed pieces qualifying for each carrier route rate, each Presorted rate, and each automation rate. Within the body of the documentation beneath the listing for the last physical pallet for each logical pallet presort destination, a separate 5% threshold summary also must be provided for each merged 5-digit scheme and each merged 5-digit logical pallet destination. Note: The separate 5% threshold summary must be for the mail on all of the physical pallets (i.e., the "logical" pallet) for that presort destination. This summary must describe for each 5-digit ZIP Code:

1. The total number of all addressed pieces.

2. The total number of addressed pieces sorted in carrier route bundles and firm bundles (each firm bundle is claimed as one addressed piece).

3. The total number of addressed pieces sorted in 5-digit bundles (other than firm bundles).

4. Of the total number of all addressed pieces in 12.1.1g1, the percentage of addressed pieces sorted in 5-digit bundles (other than firm bundles).

h. Portions of the mailing job that cannot be palletized must be prepared in sacks.

12.1.2 Bundle Preparation

[2-3-05] Bundles must be prepared under the standards in 8.0.

12.1.3 Low-Volume Bundles

[2-3-05] Carrier route and 5-digit bundles may contain fewer than six pieces when the publisher determines that such preparation improves service. Pieces in such low-volume bundles must be claimed at the basic rate.

12.1.4 5% Threshold

[2-3-05] Firm bundles may be eligible for carrier route, 5-digit, or basic rates, as applicable. Firm bundles (claimed as one addressed piece), carrier route bundles, and 5-digit bundles may be placed together on the same merged 5-digit scheme or merged 5-digit logical pallet under 12.1.5 if all of the following conditions in items 12.1.4a through 12.1.4e below are met:

a. For the purpose of calculating the 5% threshold, firm bundles (regardless of the rate claimed) are added together with the number of addressed pieces in carrier route bundles.

b. The number of pieces prepared in 5-digit bundles (other than firm bundles) for any single 5-digit ZIP Code on a "logical" merged 5-digit scheme or merged 5-digit pallet must not exceed 5% of the total number of addressed pieces for the 5-digit ZIP Code on the logical pallet for that presort destination.

c. The 5% threshold is calculated separately for each 5-digit ZIP Code. For example, if a scheme contains four different 5-digit ZIP Codes, a separate 5% threshold applies to each 5-digit ZIP Code for the scheme on a merged 5-digit scheme pallet. Since 5-digit scheme bundles may not be placed on merged pallets, pieces in 5-digit scheme bundles do not count as 5-digit sorted pieces for purposes of determining the 5% limit.

d. When firm bundles, other than those claimed at carrier route rates, are placed on a merged 5-digit scheme or a merged 5-digit pallet, addressed pieces in all corresponding 5-digit bundles up to 5% also must be merged. If the number of addressed pieces placed in 5-digit bundles (for an individual 5-digit ZIP Code) exceeds the 5% threshold, the mailer may place a portion of the addressed pieces (up to 5%) on a merged 5-digit scheme or a merged 5-digit pallet. Mailers are encouraged, but not required, to include such pieces on a merged pallet in this sequence: presorted rate bundles, followed by cobundles (if using 11.0), followed by automation rate bundles. Each 5-digit physical bundle placed on a merged 5-digit scheme or a merged 5-digit pallet must contain at least six addressed pieces, and any remaining 5-digit physical bundles placed on other pallets also must contain at least six addressed pieces, unless prepared under standards allowing lower volumes as specified in 12.1.3.

e. For the purpose of determining the 5% threshold, addressed pieces in low-volume carrier route bundles count as carrier route sorted pieces, and addressed pieces in low-volume 5-digit bundles count as 5-digit sorted pieces, even though the basic rate is paid for all such pieces.

12.1.5 Pallet Preparation and Labeling

Mailers must prepare pallets of bundles in the manner and sequence listed below and under 8.0. Mailers must prepare all merged 5-digit scheme, 5-digit scheme carrier routes, 5-digit scheme, and merged 5-digit pallets that are possible in the mailing based on the volume of mail to the destination using L001 and the 5% threshold, as applicable. Mailers must label pallets according to the Line 1 and Line 2 information listed below and under 8.6. If, due to the physical size of the mailpieces, the automation rate pieces are considered flat-size under 301.3.0 and the carrier route sorted pieces and Presorted rate pieces are considered irregular parcels under 401.1.6, "FLTS" must be shown as the processing category on the pallet label. If a mailing contains no automation rate pieces and the carrier route mailing and the Presorted rate mailing are irregular parcels, use "IRREG" for the processing category on the contents line of the pallet label.

a. Merged 5-Digit Scheme. Required. Permitted only when 5-digit bundles for at least one 5-digit ZIP Code in the scheme may be merged with carrier route bundles under the 5% threshold standard in 12.1.4. May contain carrier route bundles for any 5-digit ZIP Code in a single scheme listed in L001. May also contain automation rate 5-digit bundles and Presorted rate 5-digit bundles up to a maximum of 5% of the total number of pieces for each 5-digit ZIP Code in the scheme under 12.1.4. For 5-digit ZIP Codes not included in a scheme, begin preparing pallets under 12.1.5d (merged 5-digit pallet).

1. Line 1: use L001, Column B.

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; followed by "CR/5D SCHEME."

b. 5-Digit Scheme Carrier Routes. Required. May contain only carrier route bundles for all carrier routes in an L001 scheme when a merged 5-digit scheme pallet could not be prepared under 12.1.5a.

1. Line 1 use L001, Column B.

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; followed by "CR-RTS SCHEME."

c. 5-Digit Scheme. Not permitted for flats that meet the dimension, weight, and flexibility criteria of the AFSM 100 in 301.3.3, including copalletized or combined AFSM 100 flats and other flats, and not permitted for sacks or trays. Required for all other flats and irregular parcels. May contain only 5-digit bundles of automation rate and Presorted rate mail for the same 5-digit scheme under L001 that could not be placed on a merged 5-digit scheme pallet.

1. Line 1: use L001, Column B.

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; followed by "5D"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate mail; followed by "SCHEME" or "SCH."

d. Merged 5-Digit. Required. Permitted only when 5-digit bundles may be merged with carrier route bundles under the 5% threshold standard in 12.1.4 for a 5-digit ZIP Code that is not part of an L001 scheme. May contain carrier route bundles, automation rate 5-digit bundles, and Presorted rate 5-digit bundles. The number of pieces in 5-digit bundles is limited to 5% of the total number of pieces placed on the pallet under 12.1.4.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 8.6.4 for military mail).

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or IRREG" as applicable; followed by "CR/5D."

e. 5-Digit Carrier Routes. Required. May contain only carrier route rate bundles for the same 5-digit ZIP Code that is not part of a scheme for which a merged 5-digit pallet could not be prepared under 12.1.5d.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 8.6.4 for military mail).

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; followed by "CARRIER ROUTES" or "CR-RTS."

f. 5-Digit. Required. May contain only automation rate 5-digit bundles and Presorted rate 5-digit bundles for the same 5-digit ZIP Code that could not be placed on a merged 5-digit pallet, or 5-digit scheme (L007) bundles (automation rate and cobundled automation and Presorted rate pieces only). Five-digit scheme bundles are assigned to 5-digit pallets according to the OEL "label to" 5-digit ZIP Code.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 8.6.4 for military mail).

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; followed by "5D"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate mail.

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

1. Line 1: use L006, Column C.

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

h. 3-Digit. Optional. Option not available for 3-digit ZIP Code prefixes marked "N" in L002. May contain carrier route rate, automation rate, and Presorted rate mail, including 3-digit scheme (L008) bundles (automation and cobundled automation and Presorted rate pieces only). Three-digit scheme bundles are assigned to 3-digit pallets according to the OEL "label to" 3-digit ZIP Code.

1. Line 1: use L002, Column A.

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; followed by "3D"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate mail and/or carrier route mail.

i. SCF. Required. May contain carrier route rate, automation rate, and Presorted rate bundles.

1. Line 1: use L002, Column C.

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

j. ADC. Required. May contain carrier route rate, automation rate, and Presorted rate bundles.

1. Line 1: use L004, Column B.

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

12.2 Standard Mail

12.2.1 Basic Standards

Five-digit scheme bundles (under L007) must be prepared, and effective April 18, 2005, 3-digit scheme bundles (under L008) must also be prepared. Five-digit scheme bundles may not be copalletized on any merged pallets. Five-digit bundles from an automation rate mailing and 5-digit bundles from a Presorted rate mailing (including pieces cobundled under 11.0) may be placed on the same pallet as carrier route bundles under the following conditions:

a. A carrier route mailing must be part of the mailing job.

b. The pieces in the carrier route rate mailing, the automation rate mailing, and the Presorted rate mailing must be part of the same mailing job and all three mailings must be reported on the same postage statement.

c. Pieces in the automation rate mailing must meet the criteria for a flat under 301.3.0. Pieces in the Presorted rate mailing and the carrier route mailing must meet the criteria for a flat under 301.1.1.

d. Automation rate 5-digit bundles, Presorted rate 5-digit bundles, and cobundled 5-digit bundles may be copalletized with carrier route bundles only when the pieces in the 5-digit bundles do not exceed the 5% limit described in 12.2.3. Pallets of mail sorted in this manner are called "merged 5-digit" pallets. Pallets of mail sorted in this manner for which scheme sortation is also performed are called "merged 5-digit scheme" pallets. Since 5-digit scheme bundles cannot be placed on merged pallets, pieces in 5-digit scheme bundles do not count as 5-digit sorted pieces for purposes of determining the 5% limit.

e. If sortation under this section is performed, merged 5-digit scheme pallets must be prepared whenever there is enough volume of carrier route and 5-digit bundles under 8.0 and 12.2.3 to prepare such pallets.

f. The carrier route mailing must meet the eligibility criteria in 343.6.0, the automation rate mailing must meet the eligibility criteria in 343.7.0, and the Presorted rate mailing must meet the eligibility criteria in 343.5.0.

g. The rates are based on the level of bundle that the pieces are contained in under 343.5.0 and 343.7.0.

h. The bundles from each separate mailing must be sorted together on pallets (copalletized) using presort software that is PAVE-certified.

i. The pieces in each separate mailing must bear the applicable markings required under 345.5.0, Preparation for Presorted Flats, 345.6.0, Preparation for Enhanced Carrier Route Flats, or 345.7.0, Preparation for Automation Rate Flats, and under 302, Elements on the Face of a Mailpiece.

j. A complete, signed postage statement, using the correct USPS form or an approved facsimile, must accompany each mailing job prepared under these procedures.

k. In addition to the postage statement(s), documentation prepared by PAVE-certified software must be submitted with each copalletized mailing job that describes for each pallet sortation level and pallet the number of pieces qualifying for each applicable carrier route rate, each applicable automation rate, and each applicable Presorted rate under 708.1.0. A separate 5% threshold summary also must be provided under 708.1.0 for each "logical" merged 5-digit scheme or "logical" merged 5-digit pallet presort destination. This 5% threshold summary must show for each 5-digit ZIP Code on the logical merged 5-digit scheme or logical merged 5-digit pallet: the total number of pieces on the pallet for the 5-digit ZIP Code; the total number of pieces sorted in carrier route bundles for the 5-digit ZIP Code; the total number of pieces sorted in 5-digit bundles for the 5-digit ZIP Code, and; of the total number of pieces for the 5-digit ZIP Code, the percentage of pieces sorted in 5-digit bundles for that 5-digit ZIP Code. This additional 5% threshold summary must appear within the body of the documentation beneath the pallet rate listing for the last physical pallet for the logical pallet presort destination. Note: If there are two or more physical pallets for the same presort destination, for example, the same merged 5-digit pallet destination, these two or more physical pallets would be considered as one "logical pallet." The separate pallet summary must be for the mail on all of the physical pallets (the "logical pallet") for that presort destination.

l. Portions of the mailing job that cannot be palletized must be prepared in sacks.

12.2.2 Bundle Preparation

Bundles placed on pallets must be prepared under the standards in 8.0, Preparation for Pallets.

12.2.3 5%-Threshold Standard

Five-digit bundles and carrier route bundles may be placed on the same merged 5-digit scheme and merged 5-digit pallet if all of the following conditions are met:

a. The number of pieces prepared in 5-digit bundles for any single 5-digit ZIP Code on a logical merged 5-digit or merged 5-digit scheme pallet does not exceed 5% of the total number of pieces for the 5-digit ZIP Code on the pallet(s) for the presort destination. That is, the total number of pieces for a 5-digit ZIP Code in 5-digit and carrier route bundles must not be greater than the number of pieces in carrier route bundles divided by 0.95.

b. The 5% threshold is calculated separately for each 5-digit ZIP Code. For example, if a scheme contains four different 5-digit ZIP Codes, a separate 5% threshold applies to each 5-digit ZIP Code for the scheme on a merged 5-digit scheme pallet. Since 5-digit scheme bundles may not be placed on merged pallets, pieces in 5-digit scheme bundles do not count as 5-digit sorted pieces for purposes of determining the 5% limit.

c. Except when bundles are prepared under the cobundling option in 11.0, all the mail in a logical 5-digit bundle must be able to be placed on the logical pallet under the 5% rule. A logical 5-digit bundle is all pieces for a mailing (rate level) prepared in a 5-digit bundle or bundles for the same 5-digit destination. For each 5-digit ZIP Code, it is possible to have a logical 5-digit bundle of automation rate mail and a logical 5-digit bundle of Presorted rate mail. If the total number of pieces in a logical 5-digit bundle exceeds the 5% limit, none of the pieces for that 5-digit bundle level may be placed on a merged 5-digit or merged 5-digit scheme pallet. For some ZIP Codes, the total number of pieces prepared in logical 5-digit bundles (both an automation rate 5-digit bundle and a Presorted rate 5-digit bundle) may exceed 5% of the total mail for that ZIP Code, but the number of pieces for an individual automation rate logical 5-digit bundle for that ZIP Code does not exceed the 5% limit nor does an individual Presorted rate logical 5-digit bundle for that ZIP Code exceed the 5% limit. In such instances, mailers may choose to place all of the pieces in a logical 5-digit bundle for a single rate category on the logical merged 5-digit or merged 5-digit scheme pallet so that the 5% threshold is not exceeded.

d. Except for bundles prepared under the cobundling option in 11.0, if the total number of pieces in both the logical 5-digit automation rate bundle and the logical 5-digit Presorted rate bundle each separately exceed 5% of the total number of pieces for the 5-digit ZIP Code, none of the pieces in 5-digit bundles may be merged with carrier route bundles on a merged 5-digit or merged 5-digit scheme pallet.

e. For mailing jobs prepared using the cobundling option in 11.0, if the total number of pieces prepared in a logical 5-digit bundle (containing automation rate and Presorted rate pieces) exceeds the 5% limit for a 5-digit ZIP Code in 12.2.3a, a mailer may, for each 5-digit ZIP Code, choose to place a portion of the pieces prepared in the logical 5-digit bundle on a merged 5-digit or 5-digit scheme pallet using one of the options below. Regardless of the option selected, a minimum of 10 pieces or 15 pieces as applicable must be prepared in 5-digit bundle(s) placed on the merged pallet and a minimum of 10 or 15 remaining pieces as applicable prepared in 5-digit bundle(s) not placed on the merged pallet, with the total number of pieces not exceeding the 5% limit. The options are:

1. Place either all automation rate pieces or all Presorted rate pieces for the 5-digit ZIP Code on the merged pallet.

2. Place a portion of either the automation rate pieces or the Presorted rate pieces for the 5-digit ZIP Code on the merged pallet.

3. Place either all the automation rate pieces plus a portion of the Presorted rate pieces or all the Presorted rate pieces plus a portion of the automation rate pieces for the 5-digit ZIP Code on the merged pallet.

12.2.4 Pallet Preparation and Labeling

[2-3-05] Mailers must prepare pallets of bundles in the manner and sequence listed below and under 8.0. Mailers must prepare all merged 5-digit scheme, 5-digit scheme carrier routes, 5-digit scheme, and merged 5-digit pallets that are possible in the mailing based on the volume of mail to the destination using L001 and the 5% threshold. Mailers must label pallets according to the Line 1 and Line 2 information listed below and under 8.6.

a. Merged 5-Digit Scheme. Required. Permitted only when 5-digit bundles for at least one 5-digit ZIP Code in the scheme may be merged with carrier route bundles under the 5% threshold standard in 12.2.3. May contain carrier route bundles for any 5-digit ZIP Code in a single scheme listed in L001. May also contain automation rate 5-digit bundles and Presorted rate 5-digit bundles up to a maximum of 5% of the total number of pieces for each 5-digit ZIP Code in the scheme under 12.2.3. For 5-digit ZIP Codes not included in a scheme, begin preparing pallets under 12.2.4c (merged 5-digit pallet).

1. Line 1: use L001, Column B.

2. Line 2: "STD FLTS CR/5D SCHEME."

b. 5-Digit Scheme Carrier Routes. Required. May contain only carrier route bundles for all carrier routes in an L001 scheme when a merged 5-digit scheme pallet could not be prepared under 12.2.4a.

1. Line 1: use L001, Column B.

2. Line 2: "STD FLTS CR-RTS SCHEME."

c. Merged 5-Digit. Required. Permitted only when 5-digit bundles may be merged with carrier route bundles under the 5% threshold standard in 12.2.3 for a 5-digit ZIP Code that is not part of an L001 scheme. May contain carrier route rate bundles, automation rate 5-digit bundles, and Presorted rate 5-digit bundles. The number of pieces in 5-digit bundles is limited to 5% of the total number of pieces placed on the pallet under 12.2.3.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 8.6.4 for military mail).

2. Line 2: "STD FLTS CR/5D."

d. 5-Digit Carrier Routes. Required. May contain only carrier route rate bundles for the same 5-digit ZIP Code that is not part of a scheme and for which a merged 5-digit pallet could not be prepared under 12.2.4c.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 8.6.4 for military mail).

2. Line 2: "STD FLTS"; followed by "CARRIER ROUTES" or "CR-RTS."

e. 5-Digit. Required. May contain only automation rate 5-digit bundles and Presorted rate 5-digit bundles for the same 5-digit ZIP Code that could not be placed on a merged 5-digit pallet, or 5-digit scheme (L007) bundles (automation rate and cobundled automation and Presorted rate pieces only). Five-digit scheme bundles are assigned to 5-digit pallets according to the OEL "label to" 5-digit ZIP Code.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 8.6.4 for military mail).

2. Line 2: "STD FLTS 5D"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate mail.

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

1. Line 1: use L006, Column C.

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

g. 3-Digit. Optional. Option not available for 3-digit ZIP Code prefixes marked "N" in L002. May contain carrier route rate, automation rate, and Presorted rate mail, including 3-digit scheme (L008) bundles (automation and cobundled automation and Presorted rate pieces only). Three-digit scheme bundles are assigned to 3-digit pallets according to the OEL "label to" 3-digit ZIP Code.

1. Line 1: use L002, Column A.

2. Line 2: "STD FLTS 3D"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate mail and/or carrier route rate mail.

h. SCF. Required. May contain carrier route rate, automation rate, and Presorted rate bundles.

1. Line 1: use L002, Column C.

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

i. ASF. Required, except that an ASF sort may not be required if using bundle reallocation under 8.12.3. May contain carrier route rate, automation rate, and/or Presorted rate bundles. Sort ADC bundles to ASF pallets based on the "label to" ZIP Code for the ADC destination of the bundle in L004. At the mailer's option, sort appropriate mixed ADC bundles to ASF pallets based on the "label to" ZIP Code for the ADC destination of the bundle in L010. All optional mixed ADC bundles on ASF pallets must contain only pieces destinating within the ASF as shown in Exhibit 6.1.6. See 346.3.0 for additional requirements for DBMC rate eligibility.

1. Line 1: use L602, Column B.

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

j. BMC. Required. May contain carrier route rate, automation rate, and/or Presorted rate bundles. Sort ADC bundles to BMC pallets based on the "label to" ZIP Code for the ADC destination of the bundle in L004. At the mailer's option, sort appropriate mixed ADC bundles to BMC pallets based on the "label to" ZIP Code for the ADC destination of the bundle in L010. All optional mixed ADC bundles on BMC pallets must contain only pieces destinating within the BMC as shown in Exhibit 6.1.6. See 346.3.0 for additional requirements for DBMC rate eligibility.

1. Line 1: Use L601, Column B.

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

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13.0 Preparation of Merged Palletization of Bundles of Flats Using the City State Product and a 5% Threshold

13.1 Periodicals

13.1.1 Basic Standards

[2-3-05] Five-digit scheme bundles (using L007) must be prepared, and effective April 17, 2005, 3-digit scheme bundles (using L008) also must be prepared, according to standards in 13.1.4. Five-digit scheme bundles and 3-digit scheme bundles may not be copalletized on any merged pallets. Five-digit bundles from an automation rate mailing and 5-digit bundles from a presorted rate mailing (including pieces cobundled under 11.0) may be placed on the same pallet as carrier route bundles under the following conditions:

a. A carrier route mailing must be part of the same mailing job as the automation rate mailing and/or the Presorted rate mailing.

b. Each portion of the mailing job must meet the eligibility criteria (including rate eligibility) under the relevant DMM standards: 12.0 for the Presorted rate mailing, 13.0 for the carrier route mailing, and 14.0 for the automation rate mailing.

c. Pieces in the automation rate mailing must meet the criteria for a flat under 301.3.0. Pieces in the Presorted rate mailing and the carrier route mailing must be nonletter-size.

d. Mailers must use the Carrier Route Indicators field in the City State Product and the 5% limit criteria in 13.1.4 to prepare the mailing. The mailing must be entered no later than 90 days after the release date of the City State Product used.

e. When firm bundles, carrier route bundles, and 5-digit bundles are placed together on the same merged 5-digit scheme or merged 5-digit pallet according to standards in 13.1.4 and 13.1.5, the following conditions also apply:

1. For 5-digit ZIP Codes identified with an "A" or "C" indicator in the City State Product, merged 5-digit scheme and merged 5-digit pallets may be prepared with no limit to the number of addressed pieces placed in 5-digit bundles.

2. For 5-digit ZIP Codes identified with a "B" or "D" indicator in the City State Product, the number of addressed pieces placed in 5-digit bundles (other than firm bundles) must not exceed 5% of the total number of addressed pieces placed on the merged 5-digit scheme or merged 5-digit pallet, for each corresponding 5-digit ZIP Code. For merged 5-digit scheme pallets, the 5% threshold is calculated separately for each individual 5-digit ZIP Code.

f. All possible merged 5-digit scheme, 5-digit scheme carrier routes, and 5-digit scheme pallets must be prepared according to standards in 13.1.5.

g. The bundles from each separate mailing must be sorted together on pallets (copalletized) under 13.1.5 using presort software that is PAVE-certified.

h. A complete, signed postage statement, using the correct USPS form or an approved facsimile, must accompany each mailing job. In addition, documentation produced by PAVE-certified software must be submitted with each mailing job. Documentation, under 708.1.0, must describe for each "logical" pallet sortation level and each physical pallet the number of addressed pieces qualifying for each carrier route rate, each Presorted rate, and each automation rate. Within the body of the documentation beneath the listing for the last physical pallet for each logical pallet presort destination, a separate 5% threshold summary also must be provided for each merged 5-digit scheme and each merged 5-digit logical pallet destination that contains mail for one or more 5-digit ZIP Codes with a "B" or "D" indicator in the City State Product. Note: The separate 5% threshold summary must be for the mail on all of the physical pallets (i.e., the "logical" pallet) for that presort destination. This summary must describe for each 5-digit ZIP Code:

1. The total number of all addressed pieces.

2. The total number of addressed pieces sorted in carrier route bundles and firm bundles (each firm bundle is claimed as one addressed piece).

3. The total number of addressed pieces sorted in 5-digit bundles (other than firm bundles).

4. Of the total number of all addressed pieces in 13.1.1h1, the percentage of addressed pieces sorted in 5-digit bundles (other than firm bundles).

i. Portions of the mailing job that cannot be palletized must be prepared in sacks.

13.1.2 Bundle Preparation

[2-3-05] Bundles must be prepared under the standards in 8.0.

13.1.3 Low-Volume Bundles

[2-3-05] Carrier route and 5-digit bundles may contain fewer than six pieces when the publisher determines that such preparation improves service. Pieces in such low-volume bundles must be claimed at the basic rate.

13.1.4 5% Threshold—5-Digit ZIP Codes Identified with a "B" or "D" Indicator

[2-3-05] Firm bundles may be eligible for carrier route, 5-digit, or basic rates, as applicable. Firm bundles (claimed as one addressed piece), carrier route bundles, and 5-digit bundles may be placed together on the same merged 5-digit scheme or merged 5-digit logical pallet under 13.1.5 if all of the following conditions in items 13.1.4a through 13.1.4e below are met:

a. For the purpose of calculating the 5% threshold, firm bundles (regardless of the rate claimed) are added together with the number of addressed pieces in carrier route bundles.

b. The number of pieces prepared in 5-digit bundles (other than firm bundles) for any single 5-digit ZIP Code with a "B" or "D" indicator (in the City State Product) on a logical merged 5-digit scheme or merged 5-digit pallet must not exceed 5% of the total number of addressed pieces for the 5-digit ZIP Code on the logical pallet for the presort destination. Five-digit ZIP Codes with an "A" or "C" indicator (in the City State Product) are not subject to the 5% limit.

c. The 5% threshold is calculated separately for each 5-digit ZIP Code with a "B" or "D" indicator. For example, if a scheme contains four different 5-digit ZIP Codes, a separate 5% threshold applies to each 5-digit ZIP Code with a "B" or "D" indicator for the scheme on a merged 5-digit scheme pallet. (5-digit ZIP Codes with an "A" or "C" indicator are not subject to the 5% limit.) Since 5-digit scheme bundles may not be placed on merged pallets, pieces in 5-digit scheme bundles do not count as 5-digit sorted pieces for purposes of determining the 5% limit.

d. When firm bundles, other than those claimed at carrier route rates, are placed on a merged 5-digit scheme or a merged 5-digit pallet, addressed pieces in all corresponding 5-digit bundles up to 5% also must be merged. If the number of addressed pieces placed in 5-digit bundles (for an individual 5-digit ZIP Code) exceeds the 5% threshold, the mailer may place a portion of the addressed pieces (up to 5%) on a merged 5-digit scheme or a merged 5-digit pallet. Mailers are encouraged, but not required, to include such pieces on a merged pallet in this sequence: presorted rate bundles, followed by cobundles (if using 11.0), followed by automation rate bundles. Each 5-digit physical bundle placed on a merged 5-digit scheme or a merged 5-digit pallet must contain at least six addressed pieces, and any remaining 5-digit physical bundles placed on other pallets also must contain at least six addressed pieces, unless prepared under standards allowing lower volumes as specified in 13.1.3.

e. For the purpose of determining the 5% threshold, addressed pieces in low-volume carrier route bundles count as carrier route sorted pieces, and addressed pieces in low-volume 5-digit bundles count as 5-digit sorted pieces, even though the basic rate is paid for all such pieces.

13.1.5 Pallet Preparation and Labeling

Mailers must prepare pallets of bundles in the manner and sequence listed below and under 8.0. Mailers must prepare all merged 5-digit scheme, 5-digit scheme carrier routes, 5-digit scheme, and merged 5-digit pallets that are possible in the mailing based on the volume of mail to the destination (8.0) using L001, the City State Product, and the 5% threshold (13.1.4), as applicable. Mailers must label pallets according to the Line 1 and Line 2 information listed below and under 8.6. If, due to the physical size of the mailpieces, the automation rate pieces are considered flat-size under 301.3.0 and the carrier route sorted pieces and Presorted rate pieces are considered irregular parcels under 401.1.6, "FLTS" must be shown as the processing category on the pallet label. If a mailing contains no automation rate pieces and the carrier route mailing and the Presorted rate mailing are irregular parcels, use "IRREG" for the processing category on the contents line of the pallet label.

a. Merged 5-Digit Scheme. Required. For schemes that contain at least one 5-digit ZIP Code that has an "A" or "C" indicator in the City State Product, the pallet contains 1) carrier route bundles for all 5-digit ZIP Codes in the scheme, 2) 5-digit automation rate and 5-digit Presorted rate bundles for those 5-digit ZIP Codes in the scheme with an "A" or "C" indicator in the City State Product, and 3) 5-digit automation rate and/or 5-digit Presorted rate bundles for those 5-digit ZIP Codes in the scheme with a "B" or "D" indicator when the number of pieces in the 5-digit bundle(s) does not exceed 5% of the total number of pieces for that 5-digit ZIP Code under 13.1.4. For schemes in which all 5-digit ZIP Codes have "B" or "D" indicators and for which there is at least one 5-digit ZIP Code for which 5-digit bundles may be placed on the pallet under the 5% limit in 13.1.4, place all carrier route bundles plus the 5-digit bundles within the 5% limit on the pallet. For schemes in which all 5-digit ZIP Codes have "B" or "D" indicators and for which there are no 5-digit ZIP Codes for which 5-digit bundles may be placed on the pallet under the 5% limit, do not prepare a merged 5-digit scheme pallet (sort bundles to pallets under 13.1.5b through 13.1.5j).

1. Line 1: use L001, Column B.

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; and followed by "CR/5D SCHEME."

b. 5-Digit Scheme Carrier Routes. Required. May contain only carrier route bundles for all carrier routes in an L001 scheme for which all 5-digit ZIP Codes in the scheme have a "B" or "D" indicator and for which no 5-digit bundles could be placed on a merged 5-digit scheme pallet with the carrier route bundles because the 5-digit bundles exceeded the 5% threshold.

1. Line 1: use L001, Column B.

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; and followed by "CR-RTS SCHEME."

c. 5-Digit Scheme. Not permitted for flats that meet the dimension, weight, and flexibility criteria of the AFSM 100 in 301.3.3, including copalletized or combined AFSM 100 flats and other flats, and not permitted for sacks or trays. Required for all other flats and irregular parcels. May contain only 5-digit bundles of automation rate and Presorted rate mail for the same 5-digit scheme under L001 for which one or more 5-digit ZIP Codes in the scheme had a "B" or "D" indicator in the City State Product, and the 5-digit bundles could not be placed on a merged 5-digit scheme pallet (the pieces exceeded the 5% threshold).

1. Line 1: use L001, Column B.

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; followed by "5D"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate mail; and followed by "SCHEME" or "SCH."

d. Merged 5-Digit. Required. May contain carrier route bundles, automation rate 5-digit bundles, and Presorted rate 5-digit bundles for those 5-digit ZIP Codes that are not part of a scheme. For 5-digit ZIP Codes with an "A" or "C" indicator in the City State Product, there is no limit on the number of pieces in 5-digit bundles that may be placed on the pallet and a merged 5-digit pallet is prepared even if there are no 5-digit bundles for that ZIP Code. For those 5-digit ZIP Codes with a "B" or "D" indicator in the City State Product, the number of pieces in 5-digit bundles is limited to 5% of the total number of pieces for the 5-digit pallet destination under 13.1.4. However, if no 5-digit bundles for ZIP Codes with "B" or "D" indicators can be placed on this level pallet under the 5% limit, do not prepare this a merged 5-digit pallet (sort bundles under 13.1.5e through 13.1.5j).

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 8.6.4 for military mail).

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or IRREG" as applicable; and followed by "CR/5D."

e. 5-Digit Carrier Routes. Required. May contain only carrier route rate bundles for the same 5-digit ZIP Code that is not part of a scheme and that could not be placed on a merged 5-digit pallet.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 8.6.4 for military mail).

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; and followed by "CARRIER ROUTES" or "CR-RTS."

f. 5-Digit. Required. May contain only automation rate 5-digit bundles and Presorted rate 5-digit bundles for the same 5-digit ZIP Code that could not be placed on a merged 5-digit pallet, or 5-digit scheme (L007) bundles (automation rate and cobundled automation and Presorted rate pieces only). Five-digit scheme bundles are assigned to 5-digit pallets according to the OEL "label to" 5-digit ZIP Code.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 8.6.4 for military mail).

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or "IRREG" as applicable; followed by "5D"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; and followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate mail.

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

1. Line 1: use L006, Column C.

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

h. 3-Digit. Optional. Option not available for 3-digit ZIP Code prefixes marked "N" in L002. May contain carrier route rate, automation rate, and Presorted rate mail, including 3-digit scheme (L008) bundles (automation and cobundled automation and Presorted rate pieces only). Three-digit scheme bundles are assigned to 3-digit pallets according to the OEL "label to" 3-digit ZIP Code.

1. Line 1: use L002, Column A.

2. Line 2: "PER" or "NEWS" as applicable; followed by "FLTS" or IRREG" as applicable; followed by "3D"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; and followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate mail and/or carrier route mail.

i. SCF. Required. May contain carrier route rate, automation rate, and Presorted rate bundles.

1. Line 1: use L002, Column C.

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

j. ADC. Required. May contain carrier route rate, automation rate, and Presorted rate bundles.

1. Line 1: use L004, Column B.

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

13.2 Standard Mail

13.2.1 Basic Standards

Five-digit scheme bundles (under L007) must be prepared, and effective April 18, 2005, 3-digit scheme bundles (under L008) must also be prepared. Five-digit scheme bundles may not be copalletized on any merged pallets. Five-digit bundles from an automation rate mailing and 5-digit bundles from a Presorted rate mailing (including pieces cobundled under 11.0) may be placed on the same pallet as carrier route bundles under the following conditions:

a. A carrier route mailing must be part of the mailing job.

b. The pieces in the carrier route rate mailing, the automation rate mailing, and the Presorted rate mailing must be part of the same mailing job, and all three mailings must be reported on the same postage statement.

c. Pieces in the automation rate mailing must meet the criteria for a flat under 301.3.0. Pieces in the Presorted rate mailing and the carrier route mailing must meet the criteria for a flat under 301.1.1.

d. Mailers must use the Carrier Route Indicators field in the City State Product and the 5% limit criteria in 13.2.3 to prepare the mailing. The mailing must be entered no later than 90 days after the release date of the City State Product used.

e. Automation rate 5-digit bundles, Presorted rate 5-digit bundles, and cobundled 5-digit bundles may be copalletized with carrier route bundles and firm bundles on merged 5-digit or merged 5-digit scheme pallets as follows:

1. For 5-digit ZIP Codes with an "A" or "C" indicator in the Carrier Route Indicators field in the City State Product, carrier route and 5-digit bundles may be merged with no limit on the number of pieces in 5-digit bundles placed on the pallet. 5-digit scheme bundles may not be used.

2. For 5-digit ZIP Codes with a "B" or "D" indicator in the Carrier Route Indicators field in the City State Product, the pieces in the 5-digit bundles must not exceed 5% of the total number of pieces for each individual 5-digit ZIP Code on the pallet as described in 13.2.3. Since 5-digit scheme bundles cannot be placed on merged pallets, pieces in 5-digit scheme bundles do not count as 5-digit sorted pieces for purposes of determining the 5% limit.

f. If sortation under this section is performed, then merged 5-digit scheme pallets must be prepared whenever there is enough volume of carrier route and 5-digit bundles under 8.0 to prepare such pallets using the criteria in 13.2.1e and the sortation criteria in 13.2.4.

g. The carrier route mailing must meet the eligibility criteria in 343.6.0, the automation rate mailing must meet the eligibility criteria in 343.7.0, and the Presorted rate mailing must meet the eligibility criteria in 343.5.0.

h. The rates are based on the level of bundle that the pieces are contained in under 343.5.0 and 343.7.0.

i. The pieces in each separate mailing must bear the applicable markings required under 345.5.0, 345.6.0, or 345.7.0 and under 302, Elements on the Face of a Mailpiece.

j. The bundles from each separate mailing must be sorted together on pallets (copalletized) using presort software that is PAVE-certified.

k. A complete, signed postage statement, using the correct USPS form or an approved facsimile, must accompany each mailing job prepared under these procedures.

l. In addition to the applicable postage statement, documentation produced by PAVE-certified software must be submitted with each copalletized mailing job that describes for each pallet sortation level and pallet the number of pieces qualifying for each applicable carrier route rate, each applicable automation rate, and each applicable Presorted rate. A separate 5% threshold summary also must be provided under 708.1.0 for each "logical" merged 5-digit scheme or "logical" merged 5-digit pallet presort destination that contains mail for one or more 5-digit ZIP Codes with a "B" or "D" indicator in the City State Product. This 5% threshold summary must show for each 5-digit ZIP Code with a "B" or "D" indicator on the logical merged 5-digit scheme or logical merged 5-digit pallet: the total number of pieces on the pallet for the 5-digit ZIP Code; the total number of pieces sorted in carrier route bundles for the 5-digit ZIP Code; the total number of pieces sorted in 5-digit bundles for the 5-digit ZIP Code, and; of the total number of pieces for the 5-digit ZIP Code, the percentage of pieces sorted in 5-digit bundles for that 5-digit ZIP Code. This additional 5% threshold summary must appear within the body of the documentation beneath the pallet rate listing for the last physical pallet for the logical pallet presort destination. Note: If there are two or more physical pallets for the same presort destination, for example, the same merged 5-digit pallet destination, these two or more physical pallets would be considered as one "logical pallet." The separate pallet summary must be for the mail on all of the physical pallets (the "logical pallet") for that presort destination.

m. Portions of the mailing job that cannot be palletized must be prepared in sacks.

13.2.2 Bundle Preparation

Bundles placed on pallets must be prepared under the standards in 8.0.

13.2.3 5% Threshold Standard

Five-digit bundles, carrier route bundles, and firm bundles may be placed on the same merged 5-digit scheme or merged 5-digit pallet under 13.2.4 if all of the following conditions are met:

a. The number of pieces prepared in 5-digit bundles for any single 5-digit ZIP Code with a "B" or "D" indicator on a logical merged 5-digit or merged 5-digit scheme pallet does not exceed 5% of the total number of pieces for the 5-digit ZIP Code on the logical pallet for the presort destination. That is, the total number of pieces for a 5-digit ZIP Code in 5-digit and carrier route bundles must not be greater than the number of pieces in carrier route bundles divided by 0.95. 5-digit ZIP Codes with an "A" or "C" indicator are not subject to the 5% limit.

b. The 5% threshold is calculated separately for each 5-digit ZIP Code with a "B" or "D" indicator. For example, if a scheme contains four different 5-digit ZIP Codes, a separate 5% threshold applies to each 5-digit ZIP Code with a "B" or "D" indicator for the scheme on a merged 5-digit scheme pallet. (Five-digit ZIP Codes with an "A" or "C" indicator are not subject to the 5% limit.) Since 5-digit scheme bundles cannot be placed on merged pallets, pieces in 5-digit scheme bundles do not count as 5-digit sorted pieces for purposes of determining the 5% limit.

c. Except when bundles are prepared under the cobundling option in 11.0, all mail in a logical 5-digit bundle for a 5-digit ZIP Code with a "B" or "D" indicator must be able to be placed on the logical pallet under the 5% rule. A logical 5-digit bundle is all pieces for a mailing (rate level) prepared in a 5-digit bundle or bundles for the same 5-digit destination. For each 5-digit ZIP Code, it is possible to have a logical 5-digit bundle of automation rate mail and a logical 5-digit bundle of Presorted rate mail. If the total number of pieces in a logical 5-digit bundle exceeds the 5% limit, none of the pieces for that 5-digit bundle level may be placed on a merged 5-digit or merged 5-digit scheme pallet. For some ZIP Codes, the total number of pieces prepared in logical 5-digit bundles (both an automation rate logical 5-digit bundle and a Presorted rate logical 5-digit bundle) may exceed 5% of the total mail for that ZIP Code, but the number of pieces for an individual automation rate logical 5-digit bundle for that ZIP Code does not exceed the 5% limit nor does an individual Presorted rate logical 5-digit bundle for that ZIP Code exceed the 5% limit. In such instances, mailers may choose to place all of the pieces in a logical 5-digit bundle for a single rate category on the logical merged 5-digit or merged 5-digit scheme pallet so that the 5% threshold is not exceeded.

d. Except for bundles prepared under the cobundling option in 11.0, if the total number of pieces in both the logical 5-digit automation rate bundle and the logical 5-digit Presorted rate bundle each separately exceed 5% of the total number of pieces for the 5-digit ZIP Code with a "B" or "D" indicator, none of the pieces in 5-digit bundles may be merged with carrier route bundles on a merged 5-digit or merged 5-digit scheme pallet.

e. For mailing jobs prepared using the cobundling option in 11.0, if the total number of pieces prepared in a logical 5-digit bundle (containing automation rate and Presorted rate pieces) exceeds the 5% limit for a 5-digit ZIP Code in 13.2.3a, a mailer may, for each 5-digit ZIP Code, choose to place a portion of the pieces prepared in the logical 5-digit bundle on a merged 5-digit or 5-digit scheme pallet using one of the options below. Regardless of the option selected, a minimum of 10 pieces or 15 pieces as applicable must be prepared in 5-digit bundle(s) placed on the merged pallet and a minimum of 10 or 15 remaining pieces as applicable prepared in 5-digit bundle(s) not placed on the merged pallet, with the total number of pieces not exceeding the 5% limit. The options are:

1. Place either all automation rate pieces or all Presorted rate pieces for the 5-digit ZIP Code on the merged pallet.

2. Place a portion of either the automation rate pieces or the Presorted rate pieces for the 5-digit ZIP Code on the merged pallet.

3. Place either all the automation rate pieces plus a portion of the Presorted rate pieces or all the Presorted rate pieces plus a portion of the automation rate pieces for the 5-digit ZIP Code on the merged pallet.

13.2.4 Pallet Preparation and Labeling

[2-3-05] Mailers must prepare pallets of bundles in the manner and sequence listed below and under 8.0. Mailers must prepare all merged 5-digit scheme, 5-digit scheme carrier routes, 5-digit scheme, and merged 5-digit pallets that are possible in the mailing based on the volume of mail to the destination using L001, the City State Product, and the 5% threshold. Mailers must label pallets according to the Line 1 and Line 2 information listed below and under 8.6.

a. Merged 5-Digit Scheme. Required. For schemes that contain at least one 5-digit ZIP Code that has an "A" or "C" indicator in the City State Product, the pallet contains: carrier route bundles for all 5-digit ZIP Codes in the scheme; 5-digit automation rate and 5-digit Presorted rate bundles for those 5-digit ZIP Codes in the scheme with an "A" or "C" indicator in the City State Product, and; 5-digit automation rate and/or 5-digit Presorted rate bundles for those 5-digit ZIP Codes in the scheme with a "B" or "D" indicator when the number of pieces in the 5-digit bundle(s) does not exceed 5% of the total number of pieces for that 5-digit ZIP Code under 13.2.3. For schemes in which all 5-digit ZIP Codes have "B" or "D" indicators and for which there is at least one 5-digit ZIP Code for which 5-digit bundles may be placed on the pallet under the 5% limit in 13.2.3, place all carrier route bundles plus the 5-digit bundles within the 5% limit on the pallet. For schemes in which all 5-digit ZIP Codes have "B" or "D" indicators and for which there are no 5-digit ZIP Codes for which 5-digit bundles may be placed on the pallet under the 5% limit, do not prepare a merged 5-digit scheme pallet (sort bundles to pallets under 13.2.4b through 13.2.4j).

1. Line 1: use L001, Column B.

2. Line 2: "STD FLTS CR/5D SCHEME."

b. 5-Digit Scheme Carrier Routes. Required. May contain only carrier route bundles for all carrier routes in an L001 scheme for which all 5-digit ZIP Codes in the scheme have a "B" or "D" indicator and for which no 5-digit bundles could be placed on a merged 5-digit scheme pallet with the carrier route bundles because the 5-digit bundles exceeded the 5% threshold.

1. Line 1: use L001, Column B.

2. Line 2: "STD FLTS CR-RTS SCHEME."

c. Merged 5-Digit. Required. May contain carrier route bundles, automation rate 5-digit bundles, and Presorted rate 5-digit bundles for those 5-digit ZIP Codes that are not part of a scheme. For 5-digit ZIP Codes with an "A" or "C" indicator in the City State Product, there is no limit on the number of pieces in 5-digit bundles that may be placed on the pallet, and a merged 5-digit pallet is prepared even if there are no 5-digit bundles for that ZIP Code. For those 5-digit ZIP Codes with a "B" or "D" indicator in the City State Product, the number of pieces in 5-digit bundles is limited to 5% of the total number of pieces for the 5-digit pallet destination under 13.2.3. However, if no 5-digit bundles for ZIP Codes with "B" or "D" indicators can be placed on this level pallet under the 5% limit, do not prepare a merged 5-digit pallet (sort bundles to pallets under 13.2.4d through 13.2.4j).

1. Line 1: use city, state abbreviation, and 5-digit ZIP Code destination (see 8.6.4 for military mail).

2. Line 2: "STD FLTS CR/5D."

d. 5-Digit Carrier Routes. Required. May contain only carrier route rate bundles for the same 5-digit ZIP Code that is not part of a scheme and that could not be placed on a merged 5-digit pallet.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 8.6.4 for military mail).

2. Line 2: "STD FLTS," followed by "CARRIER ROUTES" or "CR-RTS."

e. 5-Digit. Required. May contain only automation rate 5-digit bundles and Presorted rate 5-digit bundles for the same 5-digit ZIP Code that could not be placed on a merged 5-digit pallet, or 5-digit scheme (L007) bundles (automation rate and cobundled automation and Presorted rate pieces only). Five-digit scheme bundles are assigned to 5-digit pallets according to the OEL "label to" 5-digit ZIP Code.

1. Line 1: use city, state, and 5-digit ZIP Code destination (see 8.6.4 for military mail).

2. Line 2: "STD FLTS 5D"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; and followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate mail.

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

1. Line 1: use L006, Column C.

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

g. 3-Digit. Optional. Option not available for 3-digit ZIP Code prefixes marked "N" in L002. May contain carrier route rate, automation rate, and Presorted rate mail, including 3-digit scheme (L008) bundles (automation and cobundled automation and Presorted rate pieces only). Three-digit scheme bundles are assigned to 3-digit pallets according to the OEL "label to" 3-digit ZIP Code.

1. Line 1: use L002, Column A.

2. Line 2: "STD FLTS 3D"; followed by "BARCODED" or "BC" if the pallet contains automation rate mail; and followed by "NONBARCODED" or "NBC" if the pallet contains Presorted rate mail and/or carrier route rate mail.

h. SCF. Required. May contain carrier route rate, automation rate, and Presorted rate bundles.

1. Line 1: use L002, Column C.

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

i. ASF. Required, except that an ASF sort may not be required if using bundle reallocation under 8.12.3. May contain carrier route rate, automation rate, and/or Presorted rate bundles. Sort ADC bundles to ASF pallets based on the "label to" ZIP Code for the ADC destination of the bundle in L004. At the mailer's option, sort appropriate mixed ADC bundles to ASF pallets based on the "label to" ZIP Code for the ADC destination of the bundle in L010. All optional mixed ADC bundles on ASF pallets must contain only pieces destinating within the ASF as shown in Exhibit 6.1.6. See 346.3.0 for additional requirements for DBMC rate eligibility.

1. Line 1: use L602, Column B.

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

j. BMC. Required. May contain carrier route rate, automation rate, and/or Presorted rate bundles. Sort ADC bundles to BMC pallets based on the "label to" ZIP Code for the ADC destination of the bundle in L004. At the mailer's option, sort appropriate mixed ADC bundles to BMC pallets based on the "label to" ZIP Code for the ADC destination of the bundle in L010. All optional mixed ADC bundles on BMC pallets must contain only pieces destinating within the BMC as shown in Exhibit 6.1.6. See 346.3.0 for additional requirements for DBMC rate eligibility.

1. Line 1: Use L601, Column B.

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

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14.0 Preparation for Plant Load Mailings

14.1 Basic Information

14.1.1 Purpose

In a plant load operation, the USPS receives mail at a mailer's plant and transports it to bypass handling otherwise required at one or more postal facilities. Plant loads are authorized if they benefit the USPS. The USPS selects the appropriate mode of transportation and determines responsibility as shown below.

Type	Who Arranges, Pays Transport	Responsibility	Postage Paid From	Additional Forms1
Collection2	USPS	USPS	Affixed/Mailer Plant	None
Pickup3	USPS with fee	USPS	Affixed/Mailer Plant	None
Drop Shipment4	Mailer/USPS	USPS	Acceptance Post Office	None
Drop Shipment Metered Mail	Mailer	Mailer	Post Office of License	None/ Endorsement
Business Mail Entry Unit (BMEU)	Mailer	Mailer	BMEU Post Office	None
Destination Entry (drop shipment)	Mailer	Mailer	Entry Office	Form 8125
Periodicals Additional Entry	Mailer	Mailer	Entry Office	Form 3510
Periodicals Exceptional Dispatch	Mailer	Mailer	Entry Office	Statements
Periodicals Airport Mail Facility	Mailer	Mailer	Entry Office	Form 3510
Plant Load	USPS	USPS	Mailer Plant	None
Expedited Plant Load Shipment	Mailer	Mailer	Mailer Plant	Form 8017

14.1.2 Service Objectives

The service objectives for the class of mail transported apply to the plant-loaded mail. Plant-loaded mail may have deferred service objectives if provided in the plant load agreement.

14.1.3 Service Not Provided

The USPS does not hold, store, or delay the dispatch of plant-loaded mail released to the USPS, except under the plant load agreement with the mailer. The USPS does not relocate trailers on the mailer's premises.

14.2 Application for Plant Load Privileges

14.2.1 Application

To have mail plant-loaded, the mailer must complete Form 3815 and submit it to the postmaster of the post office serving the mailer's plant.

14.2.2 Approval

Generally, a plant load application is approved if transportation is available and cost savings to the USPS are shown. If the application is approved, the mailer must enter into a plant load agreement with the USPS.

14.2.3 Denial and Appeal

If the application is denied, the mailer may appeal through the local postmaster within 10 calendar days of the mailer's receipt of the denial notice to the vice president of area operations for the area in which the mailer's plant is located, giving the reasons why the application should be approved.

14.3 Plant Load Operations

14.3.1 Mixed Mail Classes

A mailer may combine Periodicals, Standard Mail, and Package Services in a single vehicle if the mailings are physically separated, a postage statement is submitted for each mailing, and the service standards are met for each class of mail combined in the vehicle or trailer.

14.3.2 Compliance

The mailer must meet all relevant mailing standards and the terms of the plant load agreement. Destination loads must be prepared under 14.5 through 14.7 and as specified by the postmaster administering the plant load.

14.3.3 Reimbursement by Mailer

Under the plant load privileges and the terms of the plant load agreement, the mailer must reimburse the USPS for services it furnished while providing plant load service, including:

a. Detention charges when trailers furnished by the USPS are held up for some action or inaction of the mailer.

b. Costs for bobtailing, deadheading, or waiting/holding, if such charges are incurred by the USPS to provide plant load service for some action or inaction of the mailer.

14.4 Expedited Plant Load Shipment

14.4.1 Definition

Under an expedited plant load shipment authorization, the USPS verifies and receives postage payment for mailable matter at the mailer's plant, after which the mailer transports the shipment (at the mailer's expense) to a destination postal facility.

14.4.2 Authorization

Only an authorized plant load mailer may prepare and transport expedited plant load shipments. Authorization is by written request to the postal official who authorized the plant load. The request must state, for each destination to which mail is to be transported, the material to be deposited as an expedited plant load shipment (e.g., the class, characteristics, and quantity), the frequency of mailing, and whether the request is for one or for a series of mailings. The mailer must meet all conditions in the authorization, if approved.

14.4.3 Liability

The mailer assumes all liability and responsibility for any loss or damage to the shipment before it is deposited in and accepted at a postal facility, whether or not a third party is used to transport the shipment. The USPS is not liable or responsible for any loss of or damage to an expedited plant load shipment before it is deposited in and accepted at a postal facility.

14.4.4 Postage Refund

The USPS does not refund postage for any failure to provide service caused in whole or in part by any event that occurs before the shipment is deposited in and accepted at a postal facility, except under the applicable standards for refunds.

14.5 Mailer Responsibilities

14.5.1 General

The plant load mailer must meet the terms of the plant load agreement and the standards that apply to the class of mail prepared, rates claimed, and method of paying postage used.

14.5.2 Verification at USPS Facility

If mail verification does not occur at the mailer's plant, the mailer must:

a. Keep a plant load control log with a copy of each postage statement, numbered sequentially; the number of each vehicle used to transport plant-loaded mail; and the name of the postal facility where verification is to occur.

b. Not shrinkwrap or otherwise secure the mail to inhibit verification.

c. Correct preparation errors found in the mail when verified or pay additional postage at the rate for which it qualifies.

14.5.3 Postage

Unless otherwise permitted by standard, the mailer must pay all applicable postage and fees to the origin post office before a plant-loaded mailing is dispatched.

14.6 Intradistrict Plant-Loaded Shipments

Intradistrict plant-loaded shipments must fill 50% or more of a vehicle by weight or cube (a minimum of 23,000 pounds or 1,600 cubic feet).

14.7 Interdistrict Plant-Loaded Shipments

14.7.1 One Mailing

The mailer must prepare interdistrict plant-loaded vehicles containing one mailing under 14.7.2 through 14.7.4 as appropriate to the class of mail.

14.7.2 First-Class Mail

For plant-loaded shipments of First-Class Mail:

a. If there is enough mail for the same SCF service area to fill 60% or more of a vehicle by weight or by cube (a minimum of 28,000 pounds or 2,000 cubic feet), the mailer must prepare a direct vehicle for that SCF.

b. After making up all possible SCF vehicles, if there is enough mail for the same ADC service area to fill 60% or more of a vehicle by weight or by cube, the mailer must prepare a direct vehicle for that ADC.

14.7.3 Periodicals

For plant-loaded shipments of Periodicals:

a. If there is enough mail for the same SCF service area to fill 60% or more of a vehicle by weight or by cube, the mailer must prepare a direct vehicle for that SCF.

b. After making up all possible SCF vehicles, if there is enough mail for the same ADC service area to fill 60% or more of a vehicle by weight or by cube, the mailer must prepare a direct vehicle for that ADC.

c. After making up all possible SCF and ADC vehicles, if there is enough mail for the same transfer hub service area to fill 60% or more of a vehicle by weight or by cube, the mailer must prepare a direct vehicle for that transfer hub.

14.7.4 Standard Mail and Package Services

For plant-loaded shipments of Standard Mail and Package Services:

a. If there is enough mail for the same SCF service area to fill 60% or more of a vehicle by weight or by cube (a minimum of 28,000 pounds or 2,000 cubic feet), the mailer must prepare a direct vehicle for that SCF.

b. After making up all possible SCF vehicles, if there is enough mail for the same ASF or BMC service area to fill 60% or more of a vehicle by weight or by cube, the mailer must prepare a direct vehicle for that BMC or ASF.

14.7.5 Two or More Mailings

The mailer must prepare interdistrict plant-loaded vehicles containing two or more mailings under 14.7.6 and 14.7.7 as appropriate to the class of mail.

14.7.6 Insufficient Volume

Two or more mailings that independently have insufficient volume to require direct destination vehicles to be prepared may be combined to make up an origin vehicle without meeting the standards in 14.7.7.

14.7.7 Sufficient Volume

Two or more mailings, which independently have sufficient volume to require destination vehicles to be prepared, must meet these standards when combined:

a. For First-Class Mail, if there is enough mail for the same ADC service area to fill 60% or more of a vehicle by weight or by cube, the mailer must prepare a direct vehicle for the ADC.

b. For Periodicals, if there is enough mail for the service area of the same transfer hub to fill 60% or more of a vehicle by weight or by cube, the mailer must prepare a direct vehicle for that transfer hub.

c. For Standard Mail and Package Services, if there is enough mail for the same ASF or BMC service area to fill 60% or more of a vehicle by weight or by cube, the mailer must prepare a direct vehicle for that ASF or BMC.

14.7.8 Destination

The preparation standards for plant-loaded vehicles are determined by the destination of the mailings accepted by the USPS at the mailer's plant.

14.7.9 Two Options

If a plant-loaded mailing does not meet the preparation standards for plant-loaded vehicles under 14.7.1 through 14.7.8, the mailer has two options:

a. Rework the mailing so that it meets the applicable standard. If the mailing is verified and accepted as mail by the USPS at the mailer's plant and then it is determined that the vehicle preparation standards are not met, the mailer must rework the mailing.

b. Transport the mailing at the mailer's expense to a postal facility within the origin service area designated by the origin postmaster and with the capability to process that class of mail. If this option is chosen, all applicable postage statements must be provided with the mailings.

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15.0 Plant-Verified Drop Shipment (PVDS)

15.1 Description

15.1.1 Purpose

Plant-verified drop shipment (PVDS) enables origin verification and postage payment for shipments transported by a mailer (or third party) at the mailer's expense, on the mailer's own or contracted vehicle, to destination USPS facilities for acceptance as mail. The mailings may be prepared for deposit at a destination entry rate, or they may be claimed at the applicable rates from the destination entry facility.

15.1.2 Function

Under PVDS:

a. Mailings are verified at origin by USPS employees assigned to a detached mail unit (DMU) at a mailer's plant or at the business mail entry unit (BMEU) at the origin post office serving the mailer's plant. The shipments are then released for transportation to destination USPS facilities.

b. For Periodicals, postage is paid at a valid original entry or additional entry post office serving the mailer's plant, unless an alternative postage payment method is authorized.

c. For Standard Mail and Package Services, postage and fees are paid under a valid permit at the post office serving the mailer's plant, or as designated by the district manager.

d. The shipment is deposited at the destination USPS facility, by the mailer or the mailer's agent, where it is verified and accepted as mail by USPS employees and released for processing.

15.1.3 Other Mailings

The following mailings must be verified, accepted, and paid for at the destination USPS facility:

a. Periodicals mailings not verified at origin under PVDS or under the Centralized Postage Payment System (see 707.16.0 and 707.17.0). The destination USPS facility must be a valid original entry or additional entry post office if mailings are submitted there for postal verification.

b. Standard Mail and Package Services mailings not verified and paid for at origin under PVDS. Mailers must have a valid permit at the destination USPS facility for postage payment.

15.1.4 Dates

The postage statement may be submitted before or at the time a shipment is presented to the origin post office DMU or BMEU. The date shown by the mailer and the post office round stamp date on the postage statement and Form 8125 represents the date the origin post office DMU or BMEU verified the shipment and cleared it for dispatch by the mailer to the destination USPS facility. It does not necessarily represent the date the USPS accepts the PVDS at the USPS destination facility as mail.

15.1.5 Postage Refund

The USPS does not refund postage for any failure to provide service caused by any event that occurs before the shipment is deposited and accepted into the mailstream and becomes mail at a destination postal facility, except under 604.9.0.

15.2 Program Participation

15.2.1 Mailer Responsibility

A mailer participating in PVDS must comply with 15.0. If the mailer does not meet these requirements, the mailer may be prohibited from participating in PVDS by the local postmaster. Any mailer denied a request for PVDS may file an appeal under 607.2.0.

15.2.2 Verification at Mailer's Plant

Before PVDS verification can be performed at the mailer's plant, the mailer must have either a USPS plant load authorization for that plant or a postage payment agreement with the USPS that establishes a detached mail unit (DMU) at that plant. The DMU must be separate from the mailer's activities, in an enclosed, secure, and safe work area with a telephone. The work area must be approved by the USPS. The mailer may submit a letter to the postmaster serving the plant and request PVDS verification at the plant. The postmaster may agree to the mailer's request to verify PVDS shipments at the plant on an as-needed basis, if an approved DMU is established and staffing can be accommodated.

15.2.3 Verification at Origin BMEU

PVDS verification can be performed at the origin business mail entry unit (BMEU) under these conditions:

a. There is no detached mail unit (DMU) at the mailer's plant.

b. The mailer is in the service area of the post office where the PVDS is to be verified and where postage is to be paid, unless another postal facility is designated by the district manager.

c. Each vehicle contains only one mailer's shipment(s), each physically separated.

d. A completed postage statement and Form 8125 accompanies each PVDS (or segment, if the PVDS is contained in more than one vehicle).

e. If an alternate method of paying postage with permit imprint is used, in addition to 15.2.3d, (additional) required documentation must accompany each PVDS (or segment, if the PVDS is contained in more than one vehicle).

f. The PVDS can be physically verified at the origin BMEU. Shipments to be verified may not be wrapped or otherwise prepared if a presort and postage verification cannot be performed without destroying the physical integrity of the shipment.

g. The BMEU has enough space and staff to handle verification, and scales to calculate per piece and gross weights are available. If the post office serving the mailer's plant lacks resources, another postal facility may be designated by the district manager.

h. The mailer must transport all shipments to the post office, unload them for verification. When cleared for dispatch, reload the shipments back onto the mailer's vehicle for transportation to the destination USPS facility.

15.2.4 Periodicals

Periodicals postage must be paid at the post office verifying the copies or as designated by the district. Advertising postage is zoned from the destination USPS facility where deposited and accepted as mail (or from the facility where the Express Mail or Priority Mail drop shipment destinates). The publisher must ensure that sufficient funds are on deposit to pay for all shipments before their release. (A publisher authorized under an alternative postage payment system must pay postage under corresponding standards.)

15.2.5 Standard Mail and Package Services

The mailer must pay any applicable permit fees, mailing fees, and postage for Standard Mail and Package Services PVDS at either the post office serving the mailer's plant or the post office that does BMEU verification as designated by the district. If permit imprints are used to pay postage, the mailer must ensure that sufficient funds are on deposit to pay for all shipments before their release. For Nonprofit Standard Mail rates, a valid authorization must be on file at the post office where postage is paid. No permit, fees, or authorizations are required at the destination USPS facility where PVDS mailings are deposited.

15.2.6 Postage Statement—Periodicals

The mailer must submit a Form 3541 for each edition of each issue of each publication prepared for deposit at each destination USPS facility when the corresponding copies are presented to the DMU or the post office BMEU for verification. When required by the USPS, the mailer must submit consolidated postage statements and a postage statement register.

15.2.7 Postage Statement—Standard Mail

At the time mail is presented for verification, the mailer must submit an appropriate Form 3602 representing all the pieces from the mailing job and Form 3602-C (or postage statement register) for all PVDS verified at the mailer's DMU or the post office BMEU. The mailer must enter the required information on Form 3602-C for each PVDS to be deposited at each destination USPS facility, in lieu of providing a separate Form 3602 for each PVDS.

15.2.8 Postage Statement—Package Services

At the time mail is presented for verification, the mailer must submit an appropriate postage statement for each PVDS mailing destined for each destination USPS facility. When required by the USPS, the mailer must submit consolidated postage statements and a postage statement register.

15.2.9 Form 8125 and Form 8125-C

Form 8125 is used to report a single PVDS that the mailer will transport from origin to a destination USPS facility. Computer-generated Form 8125-C (format available at www.usps.com) provides for reporting multiple PVDS mailings that are prepared by an individual mailer and that are cleared at origin on the same day for entry at a single destination USPS facility on the same vehicle (see 15.2.11). The mailer must submit a completed Form 8125 (signed and dated by the DMU or BMEU) for each PVDS to the destination USPS facility. The form must be submitted in duplicate, or in triplicate if the mailer desires a signed and dated copy returned to its representative when depositing the mail at the destination USPS facility. Form 8125 is not required for PVDS sent via Express Mail or Priority Mail drop shipment.

15.2.10 Facsimile Forms 8125 and 8125-C

Facsimile Forms 8125 may be used in lieu of the USPS form. Formats must be approved in advance by the district manager of Business Mail Entry or designee. Formats must include all required information, including the correct title (preceded by the word "facsimile") and edition date, in locations as close as possible to where they appear on the USPS form. Data fields that do not pertain to information relating to the PVDS, and other extraneous information that appears on the USPS form, do not have to be included. Form 8125-C must always be computer-generated. Form 8125-C may omit the "Number of Pieces" and "Piece Weight" columns for mailings prepared in sacks, trays, or on pallets if there is sufficient information for the origin post office and destination USPS facility to identify the mailings and to compare the information on the form with the physical mail. The mailer must report the number of pieces in each mailing on Form 8125-C if the mailings consist of individual mailpieces that are not prepared in containers (e.g., bedloaded parcels). For mailings consisting of identical-weight pieces, mailers should report the piece weight where possible.

15.2.11 Mailer Transport of PVDS

Using any means of transportation, including Express Mail or Priority Mail drop shipment, the mailer must transport PVDS mailings from origin to the destination USPS facility. The mailer must not transport PVDS mailings on the same vehicle with shipments not entered as PVDS. For Standard Mail and Package Services PVDS, the mailer must meet the scheduling standards for mail deposit at destination USPS facilities. If a vehicle contains mail paid at Parcel Select rates, the applicable standards for scheduling of deposits and unloading of vehicles apply to any other mail on the same vehicle for the same destination USPS facility. Any material classified as hazardous under 601.10.0 may not be carried in the same vehicle as PVDS mailings.

15.2.12 Separation of PVDS Mailings

When a vehicle contains more than one PVDS for a single destination USPS facility, the shipments must be separated to allow reconciliation with each accompanying Form 8125. Vehicles containing shipments for multiple destination USPS facilities must be kept physically separated. Where applicable, a single Form 8125 that identifies all the mail for a single facility must be prepared for a shipment of copalletized or combined mailings.

15.3 Liability

The mailer assumes all responsibility and liability for any loss or damage to PVDS mailings before they are deposited and accepted as mail at destination USPS facilities, including third party transportation.

15.4 Standard Mail Documentation

15.4.1 Same Day

All mailings or segments of the same job submitted for verification and release on the same day under PVDS must be reported on a single postage statement and Form 3602-C (or postage statement register), or on computer media under Multiple Entry Point Processing System (MEPPS).

15.4.2 Documentation

In addition to the documentation required in 708.1.0, the mailer must also submit the documentation below at the time the first mailing identified on Form 3602-C is presented for verification:

a. Form 3602-C, which serves as the postage statement register, along with the appropriate postage statement. All mailing volumes, weights, and postage for each rate category are entered on the postage statement and used to debit the mailer's account for permit imprint mailings and to enter data on postage-affixed mailings.

b. A separate Form 8125 for each PVDS listed on Form 3602-C (or postage statement register). Each PVDS must be identified with a unique statement number (e.g., the date and a sequential three-digit suffix) on the Form 3602-C (or postage statement register) and the corresponding Form 8125, as appropriate.

c. A separate postage statement showing the mailing post office is the same as the post office of PVDS origin for any portion of a job accepted by the local verifying office under a standard plant load arrangement. Plant load mailings are not considered a PVDS and are not reported on Forms 3602-C and 8125.

15.5 Package Services PVDS Option

15.5.1 General Standards

Under this option, in addition to the individual postage statements required for each Package Services mailing, the mailer may be required to submit postage statement registers and consolidated postage statements for PVDS mailings. A single, unique USPS mailing number must be on all related individual postage statements and postage statement register listing these individual statements, and the associated consolidated postage statement. When a mailer is required to submit consolidated postage statements, the information on these statements is used to debit the mailer's account.

15.5.2 Individual Postage Statements

The mailer must submit a complete postage statement for each mailing for each destination USPS facility when the mailing is presented for verification and postage payment. In addition to the information required on all individual postage statements, if the mailer is required to submit consolidated postage statements (for three or more entry post offices) for debiting of the advance deposit account, each individual postage statement must include a uniquely assigned postage statement sequence number that must not exceed nine digits. The numbers must be sequential within a job or mailing cycle for mailings verified, paid for, and cleared for dispatch on the same day. The statements must also include a unique USPS mailing number corresponding to the number on the related postage statement register and consolidated postage statement.

15.5.3 Postage Statement Register

A postage statement register is a computer-generated line item listing of all individual postage statements for PVDS permit imprint mailings verified and released for dispatch on a single day from a job or mailing cycle. All postage statements listed on a postage statement register must be represented by a corresponding consolidated postage statement. The total postage charge on the postage statement register must be identical to the total postage charge on the corresponding consolidated statement. The following information must appear on each postage statement register:

a. At the top of the first page the endorsement "Register of Postage Statements"; name and location of the mailing agent; date mailings are verified and cleared for dispatch; the permit imprint number; the unique USPS mailing number corresponding to the number on related postage statements; and the related consolidated statement.

b. Each line item must include (based on the individual postage statement on that line) the unique postage statement sequence number; destination USPS facility; and, for that statement, total postage, weight, and number of pieces.

c. The sum of the total postage charges must appear with total weight, and total pieces must be listed from each postage statement. The total postage charge on the register must match total postage charge on the related consolidated statement.

d. If necessary, manual corrections may be made to the postage statement register listing the data from any revised individual statement. These corrections must be documented by the DMU, and the corrected register must be signed and dated by both the mailer and the USPS representative approving the changes. The changes on the register must be reflected on the associated consolidated postage statement.

15.5.4 Submitting Register

The mailer must submit the postage statement register to the DMU before or when presenting the first individual mailing on the register to the DMU for verification and dispatch.

15.5.5 Consolidated Postage Statement

The consolidated postage statement assembles data from the individual postage statements representing permit imprint mailings verified, paid for, and released for dispatch on a single day from a job or mailing cycle. The consolidated postage statement must be a computer-generated facsimile similar in format to the appropriate USPS postage statement. The mailer must sign and date the consolidated statement. Certain data elements not on the individual postage statements must be reflected on the consolidated statement, including the range of unique individual statement sequence numbers, the number of individual statements represented, and the endorsement "Consolidated Postage Statement." Other data elements on individual statements, such as each post office of deposit for PVDS mailings, are not shown on the consolidated statement. Each individual statement must contain a USPS mailing number that corresponds to the USPS mailing number on the related consolidated statement. The consolidated statements are used to debit the mailer's account. The following information must be identical for each individual statement consolidated onto a single (consolidated) postage statement:

a. Mailing date.

b. Name and location of mailing agent.

c. Processing category.

d. Permit imprint number.

e. Job or mailing cycle description.

f. Unique USPS mailing number corresponding to the number on related individual postage statements.

15.5.6 Calculating and Reporting Data

Each field on the consolidated postage statement represents the sum of the figures in that field from the individual postage statements. The figures reported on the consolidated statement must be rounded in accordance with 604.7.1.3. All fields containing data on the individual statements must be rolled up to the consolidated statement. The total postage on the consolidated statement must be the sum of the total postage for all individual postage statements. This total is used to debit the mailer's account.

15.5.7 Submitting Statement

The mailer must submit the consolidated postage statement to the DMU at or before the time the last individual postage statement it represents is submitted to the DMU for the day's mailing.

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16.0 Express Mail and Priority Mail Drop Shipment

16.1 Express Mail and Priority Mail Drop Shipments

16.1.1 Standards

The Express Mail or Priority Mail shipment and the enclosed mail must meet all corresponding eligibility and preparation standards.

16.1.2 Enclosed Mail

The mail enclosed in an Express Mail or Priority Mail pouch must consist either entirely of single-piece rate matter or entirely of presorted matter that is part of the same mailing, unless an exception is granted by the PCSC.

16.1.3 Authorization

Except under 16.1.5, Zoned Rate Matter, no authorization is required for Express Mail or Priority Mail drop shipment, but the mailer must obtain necessary permits, licenses, or authorizations for the enclosed mail or postage payment method used and must pay any annual mailing fee applicable to the enclosed mail at the post office where the Express Mail or Priority Mail drop shipment is mailed.

16.1.4 Listing Destination Offices

A mailer enclosing zoned rate mail in Express Mail or Priority Mail drop shipments must provide the accepting post office with a list of all the drop ship post offices at least 3 business days before presenting the first drop shipment. A mailer may add to the list at any time by written notice to the accepting post office, but an added destination post office must be on the list for at least 10 workdays before the mailer may mail a drop shipment to it.

16.1.5 Zoned Rate Matter

To use meter or precanceled postage stamps on zoned rate matter enclosed in an Express Mail or Priority Mail drop shipment, the mailer must apply in writing to the accepting post office postmaster and include the list required by 16.1.4.

16.1.6 Basis of Rate

Express Mail or Priority Mail postage must be paid on the weight of the entire contents of the Express Mail pouch or Priority Mail sack. The tare weight of the pouch or sack is not included in this weight.

16.1.7 Zone Rates

Zone rates for Priority Mail are computed from the accepting post office to the destination post office for the drop shipment (not the destination post office for the enclosed mail).

16.1.8 Calculating Payment for Enclosed Mail

Postage and fees for the mail enclosed must be prepaid under the applicable standards. When the enclosed mail is zone-rated, the zone is computed from the postal facility where the Express Mail or Priority Mail drop shipment destinates. Discounts otherwise available to the enclosed mail may be claimed if the applicable standards (e.g., volume and preparation) are met.

16.1.9 Payment Method

Postage on the enclosed mail may be paid with any method permitted for that mail class. Express Mail postage must be paid under 114. Priority Mail postage must be paid with adhesive stamps or meter stamps affixed to Tag 159. Priority Mail may also be paid with a permit imprint through a manifest mailing system, optional procedure mailing system, or alternate mailing system authorized under 2.0, 3.0, or 4.0. If a permit imprint is used for Priority Mail postage, the permit imprint must be affixed to or hand-stamped on the Tag 159.

16.1.10 Postage Statement for Enclosed Mail

A postage statement is not required for the Express Mail or Priority Mail portion of the drop shipment. The mailer must provide the correct postage statement for the mail class enclosed and postage payment method used. The postage statement must show the total number of Priority Mail drop shipment sacks in the mailing in addition to the number of sacks, trays, or other containers enclosed. If the enclosed mail is zone-rated, the mailer must either provide an attachment to the postage statement that details the pieces and postage, by zone for each post office at which an Express Mail or Priority Mail drop shipment is to destinate, or provide a separate postage statement for each Express Mail or Priority Mail drop shipment destination post office. If no postage statement is required for the enclosed mail, the mailer must still present the mailing to the designated USPS location for verification of postage and fees.

16.2 Express Mail

16.2.1 Description

Express Mail drop shipment (Express Mail Custom Designed Service, Express Mail Next Day Service, or Express Mail Second Day Service) expedites movement of any other class of mail between domestic postal facilities. The drop shipment receives the Express Mail service selected from the origin post office to the destination post office of the shipment, where the enclosed mail is processed and provided the appropriate service from that post office to its destination.

16.2.2 Drop Shipment Service Objectives

The service guarantee for an Express Mail shipment using drop shipment procedures ends on receipt at the postal facility where the shipment is destined.

16.2.3 Preparation for Drop Shipment

The mailer must present matter prepared as an Express Mail drop shipment in Express Mail pouches. The proper mailing label or form must be placed in an EP-13 envelope and attached to each Express Mail pouch.

16.2.4 Deposit Site

An Express Mail drop shipment must be made at a postal facility designated by the postmaster to accept both the class of mail enclosed and Express Mail. The shipment must be prepared under 16.4 and 16.5 and presented to the business mail entry unit (BMEU) of the origin post office.

16.2.5 Acceptance Time

An Express Mail drop shipment must be presented to the BMEU with enough time for acceptance, processing, and dispatch to the Express Mail unit before the cutoff time for Express Mail.

16.2.6 Extra Services

No extra services can be added to the Express Mail portion of the drop shipment.

16.2.7 Express Mail Reship Service

The USPS picks up shipments made up of mail addressed to post office boxes and dispatches it as a Custom Designed or Next Day Service shipment under a service agreement (on Form 5631) between the USPS and the mailer, subject to these standards:

a. Service frequency is scheduled.

b. For each pickup stop, the mailer is charged the applicable pickup fee no matter how many of the same mailer's post office boxes are checked in the same post office box unit at the same time.

c. Express Mail postage and fees are paid by Express Mail Corporate Account or federal agency "Postage and Fees Paid" indicia.

d. The mailer must keep a postage-due or business reply account at the postal facility where the post office box is located for any shortpaid or business reply mail. The service agreement must state that such an account exists.

e. Express Mail reship service is not available for registered, certified, COD, insured, or Express Mail items addressed to the post office box. The mailer must give instructions for redirecting such items on Form 1093.

f. The service agreement must: (1) list the Expedited Mail analyst at the originating office as the "Firm Representative"; (2) show the pickup time is when the USPS employee picks up the mail from the post office boxes and prepares it for dispatch as Express Mail.

g. Commencement and termination of service agreements are subject to the standards for Express Mail Custom Designed Service.

16.3 Priority Mail

16.3.1 Description

Priority Mail drop shipment expedites movement of any other class or subclass of mail (except Express Mail) between domestic postal facilities. The drop shipment receives Priority Mail service from the origin post office to the destination post office of the shipment, where the enclosed mail is processed and provided the appropriate service from that post office to its destination.

16.3.2 Deposit Site

A Priority Mail drop shipment must be prepared under 16.4 and 16.5 and presented to the business mail entry unit (BMEU) authorized by the postmaster to accept the class of mail enclosed.

16.3.3 Acceptance Time

A Priority Mail drop shipment must be presented to the BMEU with enough time for acceptance, processing, and dispatch before the critical dispatch time for Priority Mail.

16.3.4 Extra Services

No extra services can be added to the Priority Mail portion of the drop shipment.

16.3.5 Priority Mail Drop Shipment

For a Priority Mail drop shipment, no extra services may be added to the Priority Mail segment, and the mail enclosed may receive only the following services:

a. First-Class Mail pieces may be sent with Certified Mail service or special handing or, for First-Class Mail parcels only, electronic option Delivery Confirmation service or electronic option Signature Confirmation service.

b. Standard Mail pieces subject to the residual shape surcharge (except Customized MarketMail pieces) may be sent with electronic option Delivery Confirmation service.

c. Package Services mail may be sent with special handling or, for Package Services parcels only, electronic option Delivery Confirmation service or electronic option Signature Confirmation service.

16.4 Basic Preparation Standards

16.4.1 Enclosed Mail

Mail enclosed in a drop shipment must meet the eligibility and preparation standards for its class and rate and for any extra services used. Mail requiring cancellation may not be drop shipped. For mail enclosed in an Express Mail drop shipment, available extra services are indicated in 503.1.1. For mail enclosed in a Priority Mail drop shipment, available extra services are indicated in 703.9.13 and 16.3.5, Priority Mail Drop Shipment. When a drop shipment is destined to a 5-digit facility, then sacking or traying is not required for letters or flats if all enclosed presort destination bundles are destined to the same 5-digit ZIP Code as the Express Mail or Priority Mail pouch, sack, or container.

16.4.2 Standards

The Express Mail or Priority Mail portion of the drop shipment must meet the standards in 115 or 125, respectively, and the applicable standards in 16.0.

16.4.3 Containers for Expedited Transport

Acceptable containers for expedited transport are as follows:

a. An Express Mail drop shipment must be contained in a blue and orange Express Mail pouch, except that Customized MarketMail pieces under 1.0 may be contained in USPS-provided Express Mail envelopes and cartons or in any properly labeled container supplied by the mailer.

b. A Priority Mail drop shipment must be contained in either an orange Priority Mail sack or a letter-size tray, except that Customized MarketMail pieces under 1.0 may be contained in USPS-provided Priority Mail envelopes and cartons or in any properly labeled container supplied by the mailer.

16.4.4 Container Labels

Container labels for drop shipments expedited by Express Mail pouches or Priority Mail sacks/trays must be barcoded and meet the requirements in 708.6.0. All lines of information must be completely visible when inserted into the label holder. Sacks and trays are labeled as follows:

a. Line 1 (destination line) provides information on the destination entry office where the enclosed mail is to be distributed:

1. For BMC distribution, use L601.

2. For ASF distribution, use L602.

3. For 3-digit ZIP Code prefix groups, use L004 (ADC distribution) or L005 (SCF distribution).

4. For 5-digit ZIP distribution, use the city, state, and 5-digit ZIP Code that appears on the enclosed mail.

b. For Line 2 (content line), print "EXPRESS DROP SHIP" or "PRIORITY DROP SHIP," as applicable.

c. Line 3 (origin line) must conform to the standards in 708.6.1.5.

16.4.5 Tag 157

In addition to the Express Mail pouch label, Tag 157 must be attached to each Express Mail pouch to identify it as an Express Mail drop shipment and to identify the class of mail enclosed. This tag or an approved facsimile also must be affixed to containers used for Express Mail drop shipment of Customized MarketMail (CMM).

16.4.6 Tag 159

In addition to the Priority Mail sack label, Tag 159 must be attached to each Priority Mail sack to identify it as a Priority Mail drop shipment. Tag 159 indicates the class of mail enclosed in the Priority Mail sack and provides a place to affix Priority Mail postage. This tag or an approved facsimile also must be affixed to containers used for Priority Mail drop shipment of CMM.

16.4.7 Label 23

As an alternative to sacks for Priority Mail drop shipments, letter trays or mailer-supplied containers for Customized MarketMail (CMM) pieces under 1.0 may be used as follows:

a. Label 23 is affixed to the letter tray or mailer-supplied container. A single Label 23 may be used to identify two letter trays strapped together. Mailer-supplied containers may not be strapped together.

b. If two letter trays are strapped together, each tray must be of identical size and individually strapped under 235.3.4. Label 23 must be affixed to the sleeve of the top tray before strapping. The trays must be strapped securely around the length of the two trays.

c. The total weight of two trays strapped together or mailer-supplied containers used for CMM may not exceed 70 pounds.

16.4.8 Open and Distribute

In addition to Tag 157 or Tag 159, USPS-supplied cartons and envelopes and mailer-supplied containers used for Express Mail or Priority Mail drop shipment must be addressed "POSTMASTER—OPEN AND DISTRIBUTE"; followed by street address (mailing address) of the facility on the next line; and city, state, and ZIP Code on the last line.

16.5 Markings on Enclosed Mail

16.5.1 Zoned Rate Mail

When the enclosed mail is zoned rate mail and has postage affixed, the following marking must appear as part of the meter stamp. The marking may be to the left of or below the meter stamp or precanceled stamp, in addition to but not interfering with other markings required for the class of mail.

16.5.2 Optional Marking

The enclosed mail may show one of the optional markings below. The optional marking must be placed directly below or to the left of the postage area. The optional marking may appear in any type font. When an optional marking is used, the type size of the required rate marking (202 for letters, 302 for flats, or 402 for parcels) must be at least 8 points.

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17.0 Metered Mail Drop Shipment

17.1 Basic Information

17.1.1 General

A customer may affix postage using a postage meter (postage evidencing system) licensed at one post office (licensing post office) and deposit that mail at another post office (entry post office) only if prior authorization is obtained from the USPS under one of the procedures described below. Such authorization may be revoked under 17.2.6 when the USPS determines that information or circumstances supporting the original authorization may no longer be accurate, complete, or applicable. (604.4.0 provides an exception to this standard for metered Express Mail, Priority Mail, and single-piece rate metered mail.) These general conditions apply:

a. The meter stamp or indicium must show the name of the licensing post office.

b. Metered mailpieces that bear meter impressions or other endorsements containing the wrong post office name, authorization number (as applicable), or other required information are not accepted.

c. A metered mail drop shipment must be deposited at the time and place and under any additional condition specified by the USPS.

d. Annual mailing fees, as applicable for the class of mail, must be paid at the office(s) where mailings will be entered, as required under 233.3.4 or 243.3.4.

17.1.2 Effect on Service

The USPS assumes no responsibility for the material presented until it is accepted into the mail. The USPS is not responsible for service delays when the mailer does not meet the applicable preparation or entry requirements. Entry of mail by drop shipment may adversely affect the USPS's ability to achieve the applicable service objectives.

17.1.3 Changes

A mailer authorized to drop ship metered mail must inform the approving official of all changes to the information originally provided as part of the application. When the USPS asks, the mailer must submit additional information supporting that authorization. Failure to provide this information is grounds to revoke the authorization.

17.2 Authorization

17.2.1 Options 1 & 2

Authorizations under Options 1 and 2 in 17.3, Option 1: Deposit at P&DC/F, and 17.4, Option 2: Deposit at Another Post Office, are granted to meter license holders. The meter license holder must apply in writing to the district manager of business mail entry whose district includes the licensing post office of the meter holder.

17.2.2 Options 3 & 4

Authorization under Option 3 in 17.5, Option 3: Consolidated Drop Shipment With Endorsement, is granted to mailers intending to present mail for other meter license holders (including their own mail, if applicable) at one location other than the licensing office(s), whereas authorization under Option 4 in 17.6, Option 4: Consolidated Drop Shipment Without Endorsement, is granted for mailings presented at more than one location. For authorization under Option 3, the mailer or consolidator must apply in writing to the district manager of business mail entry whose district includes the post office(s) where the mailings are verified for presort preparation and payment of postage. Applications under Option 4 must be submitted to the manager, Business Mailer Support.

17.2.3 Application

The application must describe the classes of mail to be deposited and the volume, processing category, frequency of mailing, and requested deposit schedule of each. The application must also state how the mail to be entered meets applicable eligibility and service standards and must identify any third party preparing and presenting the mail. The application must be prepared on the mailer's letterhead and signed by an authorized manager or representative. There is no USPS form for this purpose. Additional information is required for Options 3 and 4. Mailers seeking authorization under Option 4 must contact Business Mailer Support, USPS Headquarters, for guidance (see 608.8.0 for address).

17.2.4 Notification

The manager of business mail entry (or the manager, Business Mailer Support under Option 4) notifies the applicant in writing of approval or conditions of approval, including the drop shipment (DS) authorization number, or denial.

17.2.5 Application Denial

A decision denying an application for operational reasons may be appealed within 15 days of its receipt to the area manager of processing and distribution. If denied because of noncompliance with applicable eligibility standards, the applicant may appeal the denial under 607.2.0.

17.2.6 Revocation

An authorization may be revoked:

a. When it is determined that the authorized entry no longer reduces postal handling or improves service, or is not in the best interests of the USPS.

b. For nonuse during any consecutive 12 months.

c. When used in operating any unlawful scheme or enterprise, or for any noncompliance with the regulations governing the use of postage meters.

17.2.7 USPS Authorities

Authorization is revoked by:

a. The manager of business mail entry of the district originally issuing authorization or the manager, Business Mailer Support.

b. The postmaster of the licensing post office (under any option) when it is used in operating any unlawful scheme or enterprise, or for any noncompliance with the regulations for postage meters.

17.2.8 Nonuse

If revocation is for nonuse, and the mailer shows that use is to resume within 90 days after the revocation notice, revocation may be deferred for a period not to exceed 90 days from the date of the original revocation notice.

17.2.9 Appeal

Written appeal of the revocation notice may be made within 15 days of its receipt, under 607.2.0.

17.3 Option 1: Deposit at P&DC/F

Metered mail of any class may be entered and deposited by the licensed meter holder or an agent at the local processing and distribution center/facility (P&DC/F) making the initial originating distribution of mail deposited at the post office where the meter license is held. Mail must be prepared under the standards for the class and rate claimed and as specified in the drop shipment authorization. The mailer may be required to prepare and deposit the mail in an additional manner that best enhances postal handling as specified in the drop shipment authorization. Any such requirements are modified to reflect changes in the mailings subsequently presented by the mailer. Failure to meet these standards may lead to revocation of the authorization.

17.4 Option 2: Deposit at Another Post Office

17.4.1 Eligibility

Metered mail of any class may be entered and deposited by the licensed meter holder or an agent at a post office other than the licensing post office or P&DC/F serving the licensing post office. Mail must be prepared under the standards for the class and rate claimed and as specified in the drop shipment authorization. The mailer may be required to perform additional preparation and meet specific deposit schedules to enhance postal handling. Any such requirements are specified in the drop shipment authorization and may be modified to reflect changes in the mailings subsequently presented by the mailer. Failure to meet these standards may lead to revocation of the authorization.

17.4.2 Endorsement

Each mailpiece deposited under this option must contain an endorsement with the city and state of the entry post office, the words "Drop Shipment Authorization" (or the abbreviation "D/S AUTH"), and the unique authorization number issued by the district manager of business mail entry serving the entry post office. If the abbreviation "D/S AUTH" is not used, the mailing office ZIP Code may be used instead of the city and state of mailing. The endorsement must be included in digital indicia or placed outside the indicium boundary in 8-point or larger type by a computer or mechanical method providing a clear and legible impression. For letter press indicia, the endorsement must appear in the ad plate area. The application and the endorsement format must be approved by the district manager of business mail entry before mail is deposited under this option.

Examples
Full Endorsement - Mailing Office City and State
MAILED AT CHICAGO IL DROP SHIPMENT AUTHORIZATION 12	DROP SHIPMENT AUTHORIZATION 48 MAILED AT YAKIMA WA
Full Endorsement - Mailing Office ZIP Code
MAILED AT 606 DROP SHIPMENT AUTHORIZATION 12	DROP SHIPMENT AUTHORIZATION 48 MAILED AT 98901
Abbreviated Format
CHICAGO IL D/S AUTH 12	D/S AUTH 48 YAKIMA WA

17.4.3 Not Valid

Drop shipment endorsements authorized before March 19, 1989, are no longer valid.

17.4.4 Rate and Class Marking

The drop shipment endorsement placed in the ad plate area or within the indicium boundary may include the marking required by the standards for the rate claimed if that marking is placed directly below the drop ship endorsement and meets the standards in 202 for letters, 302 for flats, and 402 for parcels. The marking may also be provided separately directly below the indicium boundary if the marking meets the relevant size and legibility standards.

17.5 Option 3: Consolidated Drop Shipment With Endorsement

17.5.1 General

A mailer presenting a consolidated mailing may apply to collect metered mail bearing postage from meters licensed at different post offices and present such mailings at one post office, subject to the conditions and limitations in 17.5. All conditions for presenting presort mailings must be met as applicable for the class of mail. All applicable conditions under 604.9.4, Value Added Refunds, and 5.0, First-Class Mail or Standard Mail Mailings With Different Payment Methods, must also be met.

17.5.2 Barcoded and Nonbarcoded Portions

The majority of the mail consolidated for entry under Option 3 must be prepared in a single mailing (with a single postage statement) in which all pieces, regardless of rate claimed, have the correct barcode (ZIP+4 for flats, delivery point for letters and cards) and are physically compatible with automated mail processing equipment. The entry post office may reject a mailing if all pieces do not have the correct barcode. A minor portion of the consolidated mail may be prepared as a second, separate mailing (with its own postage statement) in which the pieces do not bear the correct barcode (or are not compatible with automated processing equipment) but do meet the standards that apply to the rates claimed.

17.5.3 Service Objective

When a mailpiece is part of a consolidated mailing, the service objective that applies must be the same as or better than that which would have applied had the piece been entered at the licensing post office. As part of the application, documentation must be provided by the mailer to show compliance with this standard to USPS satisfaction. (Typical documentation lists the service objective that applies to each licensing post office from whose area mail is to be consolidated and the standard that applies to that mail when it is entered under Option 3.)

17.5.4 Information

An application under Option 3 must be submitted by the mailer (i.e., the party to present the consolidated mailing to the USPS). In addition to the information detailed in 17.2.3, the application must identify the meter licensees whose mail is to be consolidated and the serial numbers of each licensee's meters.

17.5.5 Notice to Licensees

After receiving an authorization notice, the mailer must give written notice to each licensee whose mail is to be consolidated under the authorization. The mailer's notice must include a copy of the authorization, a full explanation of preparation requirements, and a reminder that consolidation of their mail can adversely affect service. The mailer must give copies of each licensee notice to the entry office and licensing office postmasters.

17.5.6 Additional Standards

Metered mail deposited under Option 3 must be prepared as specified by the USPS. This preparation may extend beyond that which is required to qualify for the rate paid for the mail, and may require the mail to be configured and its deposit scheduled to enhance USPS handling. Failure to meet these standards can lead to revocation of the authorization.

17.5.7 Endorsement

Each mailpiece deposited under this option must be endorsed with the letters "DS," followed by a unique drop shipment authorization number (issued by the manager of business mail entry of the district in which the mail is entered) and the words "MAILED AT," followed by the 3-digit ZIP Code prefix of the entry post office. The endorsement may also include the correct mailing date. (Including this date does not relieve the meter licensee(s) from meeting the standards for correct dating of metered mail.) The endorsement must be printed immediately below the meter stamp or indicium or in the lower left corner of the mailpiece, in 8-point or larger type, by a computer or another mechanical method providing a clear and legible endorsement. The district manager of business mail entry issuing the authorization number must approve the endorsement before drop shipment mailings may be made under this option.

Examples
DS12 MAILED AT 606 - 04/01/04
MAILED AT 606 DS12 - 04/01/04
DS48 MAILED AT 981
MAILED AT 981 DS48

17.5.8 Placement

The drop shipment endorsement must not interfere with the barcode clear zone or any other marking.

17.5.9 Preparation

The preparation and documentation standards that apply to the rates claimed in the mailing remain unaffected by entry under Option 3.

17.5.10 Consolidation

Mail collected from licensees for mailing under Option 3 may not be further collected or consolidated by any other mailer or consolidator.

17.6 Option 4: Consolidated Drop Shipment Without Endorsement

17.6.1 General

A mailer presenting a consolidated mailing may apply to collect metered mail bearing postage from meters licensed at different post offices and consolidate that mail for mailing (entry and deposit) at other entry post offices, subject to the conditions and limitations in 17.6. All conditions for presenting presort mailings must be met as applicable for the class of mail. All applicable conditions under 604.9.4, Value Added Refunds, and 5.0, First-Class Mail or Standard Mail Mailings With Different Payment Methods, must also be met.

17.6.2 Barcoded and Nonbarcoded Portions

The majority of the mail consolidated for entry under Option 4 must be prepared in a single mailing (with a single postage statement) in which all pieces, regardless of rate claimed, have the correct barcode (ZIP+4 for flats, delivery point for letters and cards) and are physically compatible with automated mail processing equipment. The entry post office may reject a mailing if all pieces do not have the correct barcode. A minor portion of the consolidated mail may be prepared as a second, separate mailing (with its own postage statement) in which the pieces do not bear the correct barcode (or are not compatible with automated processing equipment) but do meet the standards that apply to the rates claimed.

17.6.3 Service Objective

When a mailpiece is part of a consolidated mailing, the service objective that applies must be the same as or better than that which would have applied had the piece been entered at the licensing post office. As part of the application, documentation must be provided by the mailer to show compliance with this standard to USPS satisfaction. (Typical documentation lists the service objective that applies to each pair of origin/destination 3-digit ZIP Codes in the consolidated mailing, both if entered at the licensing post office and if entered as authorized under Option 4.)

17.6.4 Information

An application under Option 4 must be submitted by the mailer (i.e., the party to present the consolidated mailing to the USPS). The information in 17.2, Authorization, must be provided for each post office at which mail is to be entered under Option 4. The application must also detail: the meter licensees whose mail is to be consolidated and the serial numbers of each licensee's meters; the mailer's method of sortation, documentation, and quality control; and the mailer's procedures for ensuring that all pieces in the consolidated mailing are entered to meet or exceed the service objectives for the place of origin.

17.6.5 Notice to Licensees

After receiving the authorization notice, the mailer must give written notice to each licensee whose mail is to be consolidated under the authorization. The mailer's notice must include a copy of the authorization, a full explanation of preparation requirements, and a reminder that consolidation of their mail can adversely affect service. The mailer must give copies of each licensee notice to the entry office and licensing office postmasters.

17.6.6 Additional Standards

Metered mail deposited under Option 4 must be prepared in segments for entry at postal facilities according to schemes and schedules provided by the USPS. Further, each segment must be prepared for dispatch without additional postal processing or handling, and deposited at places and times specified by the USPS. The USPS may stipulate preparation beyond that required to qualify for the rate paid for the mail. Failure to meet these standards can lead to revocation of the authorization.

17.6.7 Transportation

The mailer must provide transportation for the consolidated mailing, unless the USPS provides plant load service.

17.6.8 Endorsement

A drop shipment endorsement is not required on pieces mailed under Option 4.

17.6.9 Preparation

The preparation and documentation standards that apply to the rates claimed in the mailing remain unaffected by entry under Option 4.

17.6.10 Consolidation

Mail collected from licensees for mailing under Option 4 may not be further collected or consolidated by any other mailer or consolidator.

17.6.11 Documentation

The mailer/consolidator must keep documentation supporting each consolidated mailing, including the volume collected from each meter licensee, for at least 1 year from the date of mailing, and make it available for postal inspection on request.