[Federal Register Volume 85, Number 90 (Friday, May 8, 2020)]
[Rules and Regulations]
[Pages 27299-27301]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08625]
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POSTAL SERVICE
39 CFR Part 111
Seamless Changes for Detached Mail Unit (DMU) and Full-Service
Mailings
AGENCY: Postal ServiceTM.
ACTION: Final rule.
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SUMMARY: The Postal ServiceTM is revising Mailing Standards
of the United States Postal Service, Domestic Mail Manual (DMM[supreg])
to require Detached Mail Unit (DMU) mailers and mailers that enter
full-service mailings at a Business Mail Entry Unit (BMEU) to
participate in Seamless Parallel by June 1, 2020. In addition, the
Postal Service provides advance notice of its intent: To require all
mailers with an authorized Detached Mail Unit to enroll in the Seamless
Acceptance Program by May 1, 2021; and to verify all BMEU-entered full-
service mailings using only automated sampling and verification
processes beginning July 1, 2021.
DATES: Effective June 1, 2020.
FOR FURTHER INFORMATION CONTACT: Lance Bell at (407) 782-2972, or
Jacqueline Erwin at (202) 268-2158.
SUPPLEMENTARY INFORMATION:
Background
Seamless Acceptance leverages electronic documentation (eDoc) and
the Intelligent Mail[supreg] barcodes (IMbs) on all containers,
handling units, and mailpieces required under full-service. Mailpiece
scans collected from mail processing equipment (MPE) and samples from
hand-held scanning devices are reconciled to the mailer eDoc to confirm
proper mail preparation for discounts claimed and confirm correct
postage payment. This capability avoids the need for verification of
mail at acceptance.
The Postal Service published a notice of proposed rulemaking on
January 8, 2020 (85 FR 856-859), to require mailers with authorized
Detached Mail Units (DMU) and mailers that enter full-service mailings
at a Business Mail Entry Unit (BMEU) to participate in Seamless
Parallel by March 1, 2020. In addition, the Postal Service provided
advance notice of its intent to require DMU mailers to enroll in the
Seamless Acceptance Program by February 1, 2021. Moreover, the Postal
Service provided advance notices of its intent to verify all full-
service mailings entered at a BMEU using automated sampling and
verification processes, beginning July 1, 2021.
The Postal Service received many insightful comments and questions
from the mailing community in response to the proposed rule of January
8, 2020. In response to those comments, the Postal Service incorporates
the following changes into this final rule, and notes that aside from
these changes, Seamless Acceptance plans have not changed in substance
from the proposed rule of January 8, 2020:
Mailers with authorized DMUs and mailers entering full-
service mailings at BMEUs must enroll in Seamless Parallel by June 1,
2020 (instead of March 1, 2020).
In addition, the Postal Service intends to propose the following
regulatory changes in a future rulemaking:
Mailers with authorized DMUs, as a condition of their DMU
authorization, must participate in Seamless Acceptance by May 1, 2021;
Full-Service mailings entered at BMEUs will begin to be
verified using only automated sampling and verification processes on
July 1, 2021.
Comments on Seamless Changes for Detached Mail Unit (DMU) and Full-
Service Mailings and USPS Responses
The Postal Service received seven formal responses on the Seamless
changes for Detached Mail Unit (DMU) and Full-Service Mailings
proposal. Six formal responses included comments on more than one
issue.
Incentive for Mailers To Adopt Seamless Acceptance
Five comments encouraged the USPS[supreg] to provide an incentive
for mailers to defray costs incurred from migrating to Seamless
Acceptance. Respondents claim that there is a significant cost impact
to business (above and beyond full-service IMb participation) to
participate in Seamless Acceptance, and that the USPS should provide an
incentive to offset the investment and ongoing costs incurred by
mailers.
USPS Response
USPS will continue to work collaboratively with industry
stakeholders to minimize any cost impact to mailers that adopt Seamless
Acceptance. The Postal Service notes that new rates, including
incentives, must be authorized by the Governors of the Postal Service
and reviewed by the Postal Regulatory Commission.
Piece Weights May Cause Assessments
Four comments stated that varying piece weights may cause a mailer
to be susceptible to an assessment. Respondents claim this is
especially true for flat-size pieces susceptible to environmental
impacts (e.g., humidity).
USPS Response
USPS has initiated the creation of a Task Team (MTAC TT-30) to work
collaboratively with industry stakeholders. USPS will consider
recommendations from MTAC TT-30.
Images of Mailpieces To Assist With Undocumented Errors
Four comments encourage USPS to provide mailers with images of
undocumented pieces and other mailer scorecard errors so they can
identify the specific mailer or mailing to investigate and resolve mail
quality issues.
USPS Response
USPS will continue to explore the feasibility of this proposal.
The Timeline for Mandating Seamless Acceptance for DMUs
Three comments had concerns that the intended February 1, 2021 date
was too close to implementation of the January 2021 price change. Price
changes require significant resources and commenters are concerned that
their resources will be limited and will not be ready by February 1,
2021.
USPS Response
As previously indicated, the USPS recognizes the industry concern
with the proposed dates and has made the following changes:
Seamless Parallel enrollment must be completed by June 1,
2020.
Intended date to require DMU sites to Seamless changed to
May 1, 2021.
Verification of BMEU full-service mailings intended to
begin on July 1, 2021.
General Overall Timeline and Deadline To Adopt Seamless Acceptance
Three comments voice concerns on the general timeline in terms of
USPS ability to provide the necessary education, training, and customer
service needed for mailers to adopt Seamless Acceptance.
USPS Response
USPS has provided extensive internal and external training on the
Streamlined Mail Entry Programs. The Mail Entry
[[Page 27300]]
staff will be able to effectively manage the influx of new Seamless
mailers. In addition, USPS has created a centralized Mailing and
Shipping Solutions Center (MSSC) with specially trained personnel to
answer mailer questions and provide information. USPS continues to
emphasize ongoing internal training to ensure USPS staff have the most
up-to-date training and tools necessary to assist mailers with any
concerns or issues that may arise.
Legacy Verifications at Acceptance To Avoid Assessments
One comment stated that the customer was using legacy verifications
as their quality control to avoid un-foreseen assessments.
USPS Response
Seamless Acceptance and the automated sampling and verification
processes provide mailers with the opportunity to view their mail
quality metrics throughout the month utilizing the Mailer Scorecard.
The Mailer Scorecard is updated each night with current Mail Quality
Metric reporting, enabling mailers to diagnose errors and implement
changes prior to being assessed. The Scorecard provides a daily update
informing the customer of any potential assessments that could be
levied if the mail quality metric continues to exceed the posted error
threshold.
``After the Fact'' Postage Assessment
One comment expressed a concern of a potential assessment after a
mailing has been accepted and entered into the mailstream, without a
chance to avoid the assessment by fixing the mailing.
USPS Response
The Postal Service works collaboratively with mailers to provide
advice and guidance throughout the month on Mailer Scorecard issues.
Mailers start in the Seamless Parallel process to gauge how they would
have performed under Seamless verifications; no assessments are imposed
during Seamless Parallel. Seamless Parallel provides mailers
opportunities to gather information and correct issues prior to moving
to Seamless Acceptance. During this Seamless Parallel process USPS
works with mailers to mitigate Mailer Scorecard errors and prepare
mailers to adopt Seamless Acceptance.
Impact on Exceptional Dispatch Periodicals, Associate Office
Acceptance, and Updated Guides
Several other comments mentioned the Seamless Acceptance impact on
Exceptional Dispatch for Periodicals mailings, mailings accepted at
local associated offices (AO), and when updated guides would be posted.
USPS Response
There is no impact to Exceptional Dispatch Periodicals mailings.
Customers would continue to drop at the sites that are currently
established drop locations as part of their Exceptional Dispatch.
Mailings at smaller AOs will continue as they currently do today. The
updated Guide to the Mailer Scorecard and Publication 685, Publication
for Streamlined Mail Acceptance for Letters and Flats will be posted on
PostalPro in April 2020.
Non-Acceptance Detached Mail Unit (DMU) Duties if DMU Closes
Further comments inquired into the impact Seamless Acceptance will
have on the other non-acceptance duties performed at a DMUs like
Certificates of Mailing, and questioned whether DMUs may be closed.
USPS Response
Due to the automated verification processes, DMU sites enrolled in
Seamless Acceptance will experience a reduced presence of USPS
personnel onsite. Other duties such as Certificates of Mailings and
non-acceptance duties will be completed when the clerk is on site for
Seamless samplings. It is not the intent of the Postal Service to close
DMUs but rather to require adoption of Seamless Acceptance by May 1,
2021, as a condition of DMU authorization. When mailers submit the PS
Form 3834, Detached Mail Unit Authorization Application, they agree to
prepare mailings in accordance with applicable standards in the DMM.
Any DMU mailer that anticipates they will be unable to comply with
Seamless Acceptance requirements by May 1, 2021 will be required to
request an extension by February 1, 2021.
Availability of Resources To Navigate Seamless Acceptance
Additional comments related to the available resources for industry
to train and educate their staff.
USPS Response
There are tremendous amounts of resources currently available to
customers including web based searches on PostalPro and Postal
Explorer. Fact sheets, process guides, and publications are available
on those sites. Mailers may also reach out to the Mailing and Shipping
Solutions Center (MSSC), PostalOne! or Facility Access & Shipment
Tracking (FAST) helpdesks for information.
``Just in Time'' Payment and Auto Finalization Impact
Commenters wondered how auto finalization affects the balance of
the permit when some clients of mail preparers pay just prior to
mailing. Client's permits sometimes have insufficient funds on deposit.
Is there a way for USPS to alert mail preparers when one of the client
permits has insufficient funds?
USPS Response
Auto finalization puts control in the mailers' hands. The process
has not changed and sufficient funds must be in the account at the time
of mailing. Under current standards specified in DMM Sec. 705.22.3,
mailings accepted under Seamless auto finalize even if one of the
permits in the mailing does not have sufficient funds in combined
mailings. This allows mailings to be accepted without delay.
eInduction Participation and Container Placard Requirement for Small
Mailings
Two different comments were submitted seeking clarity on eInduction
requirements for BMEU-entered mailings and potential impact on
container requirements.
USPS Response
No, BMEU mailers will not be required to participate in eInduction
unless they elect to enroll in Seamless Acceptance. eInduction is a
requirement of Seamless Acceptance for all drop shipment mailings. When
the hardcopy PS 8125, Plant-Verified Drop Shipment (PVDS) would have
been used. This allows mailers to enter mailings without using the
hardcopy form. Mailers will continue to follow the current placarding
under Publication 685, Publication for Streamlined Mail Acceptance for
Letters and Flats available on PostalPro.
Undocumented Mail and Postal Automated Redirection System (PARS)
Operations
One comment stated that USPS is causing undocumented mail on the
mailer's scorecard by changing the IMb on the mailpiece to start with
``93''.
USPS Response
USPS does update mailpieces that go through PARS operations. These
pieces will have their IMb ``Type'' updated to ``93'' and the Address
(Delivery Point) information is changed to the new address. The changed
IMb no longer matches the original IMb contained in eDoc. In the past,
this resulted in the piece being erroneously reported as
[[Page 27301]]
undocumented. However, to keep these pieces from being reporting
erroneously as undocumented in mailer scorecards, USPS implemented
system logic to recognize that the ``93'' IMb type indicated a changed
IMb. Prior to reporting a piece as undocumented, USPS drops the ``93''
and New Address portion of the IMb and attempts to match the remainder
of the original IMb--STID, MID, Serial Number--combination to an eDoc.
Only if a match is not found with the remaining STID, MID, Serial
Number combination would the piece be reported as undocumented.
Mailers That Do Not Adopt Seamless Acceptance by July 1, 2021
One comment wanted to know what would happen if they did not adopt
Seamless Acceptance by the July 1, 2021 deadline.
USPS Response
USPS clarifies that there is no July 1, 2021 ``deadline'' for
mailers. Rather, that is the date on which the Postal Service intends
to begin verifying all Full-Service mailings entered at BMEUs using
automated verification processes. BMEU mailers would not be required to
prepare or enter their mail differently. All other mailings will
continue to be verified using manual verification methods.
USPS Should Create a Roadmap
One comment mentions that there used to be a roadmap and wanted to
know if USPS has updated it and where it can be found.
USPS Response
We have an updated Roadmap available, by searching ``CIO Roadmap''
on PostalPro at: https://postalpro.usps.com/usps-roadmap#!/category/mail-acceptance-payment.
List of Subjects in 39 CFR Part 111
Administrative practice and procedure, Postal Service.
The Postal Service adopts the following changes to Mailing
Standards of the United States Postal Service, Domestic Mail Manual
(DMM), incorporated by reference in the Code of Federal Regulations.
See 39 CFR 111.1.
Accordingly, 39 CFR part 111 is amended as follows:
PART 111--[AMENDED]
0
1. The authority citation for 39 CFR part 111 continues to read as
follows:
Authority: 5 U.S.C. 552(a); 13 U.S.C. 301-307; 18 U.S.C. 1692-
1737; 39 U.S.C. 101, 401, 403, 404, 414, 416, 3001-3011, 3201-3219,
3403-3406, 3621, 3622, 3626, 3632, 3633, and 5001.
0
2. Revise the Mailing Standards of the United States Postal Service,
Domestic Mail Manual (DMM) as follows:
Mailing Standards of the United States Postal Service, Domestic Mail
Manual (DMM)
* * * * *
700 Special Standards
* * * * *
705 Advanced Preparation and Special Postage Payment Systems
* * * * *
22.0 Seamless Acceptance Program
22.1 Description
[Revise the text of 22.1 to read as follows:]
Seamless Acceptance leverages electronic documentation (eDoc) and
Intelligent Mail barcodes (IMbs) on containers, handling units and
mailpieces that full-service provides. Mailpiece scans collected from
USPS mail processing equipment (MPE) and samples from hand held
scanning devices are reconciled to the mailer eDoc to confirm proper
mail preparation for the discounts claimed and postage paid. Seamless
Acceptance is available for First-Class Mail cards, letters, and flats,
Periodicals, USPS Marketing Mail letters and flats, and Bound Printed
Matter flats.
[Revise the title and text of 22.2 to read as follows:]
22.2 Seamless Participation
Mailers may initiate participation in the Seamless Acceptance
Program by contacting a local BMEU or the PostalOne! Helpdesk at 1-800-
522-9085.
22.3 Basic Standards
[Add new heading 22.3.1, General, and move text from 22.3 as new
22.3.1.]
22.3.1 General
* * * * *
[Revise the text of item c to read as follows:]
c. Participate in the Seamless Parallel Program under 22.3.2
* * * * *
[Add new subsection 22.3.2 to read as follows:]
22.3.2 Seamless Parallel Program
Detached Mail Unit (DMU) mailers and mailers that enter full-
service mailings at a Business Mail Entry Unit (BMEU) must participate
in the Seamless Parallel Program. Additional information on the
Seamless Parallel Program is available in Publication 685, Publication
for Streamlined Mail Acceptance for Letters and Flats, available at:
https://postalpro.usps.com/StreamlinedMailAcceptLettersFlatsPub685.
* * * * *
23.0 Full-Service Automation Option
* * * * *
23.3 Fees
23.3.1 Eligibility for Exception to Payment of Annual Fees and Waiver
of Deposit of Permit Imprint Mail Restrictions
Mailers who present automation or presort mailings (of First-Class
Mail cards, letters, and flats, USPS Marketing Mail letters and flats,
or Bound Printed Matter flats) that contain 90 percent or more full-
service eligible mail as full-service, and 75 percent of their total
mail is eligible for full-service incentives, are eligible for the
following exceptions to standards:
* * * * *
[Revise the text of item c to read as follows:]
c. If any mailing falls under the 90-percent and 75-percent full-
service thresholds for qualified full-service mailings, the annual
mailing fee will be due and the mailing verification date will become
the renewal or anniversary date of the permit fees. The full-service
percentage will automatically set to 0 percent on each subsequent
anniversary date. The first mailing presented after the anniversary
date begins the cumulative process for the full-service percentage
calculation. If the first mailing presented after the anniversary date
is below 90 percent, the annual fee will need to be paid prior to the
mail being finalized. Once the annual fees are paid, the next
validation date will be the next anniversary date.
[Delete item c2 in its entirety:]
* * * * *
We will publish an appropriate amendment to 39 CFR part 111 to
reflect these changes.
Joshua J. Hofer,
Attorney, Federal Compliance.
[FR Doc. 2020-08625 Filed 5-7-20; 8:45 am]
BILLING CODE 7710-12-P