[Federal Register Volume 88, Number 25 (Tuesday, February 7, 2023)]
[Rules and Regulations]
[Pages 7875-7877]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-02309]


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POSTAL SERVICE

39 CFR Part 111


Address Correction Notices

AGENCY: Postal ServiceTM.

ACTION: Final rule.

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SUMMARY: The Postal Service is amending Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM[supreg]) sections 
507.4.2.6 and 705.23, to update information regarding address 
correction requests and to remove hardcopy address correction notice 
options for Full-Service and Seamless Acceptance mailers.

DATES: Effective Date: July 9, 2023.

FOR FURTHER INFORMATION CONTACT: Starlene Blackwood at (901) 681-4475 
or Garry Rodriguez at (202) 268-7281.

SUPPLEMENTARY INFORMATION: On November 9, 2022, the Postal Service 
published a notice of proposed rulemaking (87 FR 67615-67617) to update 
information regarding address correction requests and to remove 
hardcopy address correction notice options for Full-Service and 
Seamless Acceptance mailers. In response to the proposed rule, the 
Postal Service received two formal responses containing several 
comments as follows:
    Comment: Incorrect address information has plagued the system for 
decades. ACS data even lags local information sources, which may cause 
a list to be updated to an old address. Publishers find the hard-copy 
notices preferable due to them being easier to read, issues with notice 
can easily be identified before updating a database. An automated 
process carries substantial risk that error will not be spotted.
    Response: ACS and Manual address corrections are generated using 
the same data source. Manual notices are delayed due to the process 
required to print, mail, and deliver the forms. Automated download of 
ACS notices is an option but not required. The SingleSource 
ACSTM fulfillment option, available on PostalPro at 
postalpro.usps.com, offers customers an option to download and review a 
printable report prior to updating.
    Comment: Publishers are wary of automatic download because some may 
not have the knowledge to manage this type of set-up.
    Response: Automated download of ACS notices is an option but not 
required. The SingleSource ACS fulfillment option, available on 
PostalPro offers customers an option to download and review a printable 
report prior to updating.
    Comment: Electronic records require electronic skills. The smaller 
newspapers do not have the technical staff on site and no available 
personnel with the skills to merge records electronically. The hard-
copy notices keep them in business.
    Response: ACS and Manual address corrections are generated using 
the same data source. Manual notices are delayed due to the process 
required to print, mail, and deliver the forms. Automated download of 
ACS notices is an option but not required. The SingleSource ACS 
fulfillment option, available on PostalPro, offers customers an option 
to download and review a printable report prior to updating.
    Comment: The Business Customer Gateway is not intuitive. Publishers 
do not know they need to perform additional steps to receive the 
service, so they don't sign up. There is no easy manual for navigating 
through BCG if all the publisher wants to do is enroll in/use ACS. 
Also, there may be an added expense of hiring someone to complete set 
up, thus making the hardcopy notice easy as a traditional tool.
    Response: Single Source ACS is an available option which removes 
the need for handling different file formats and allows customers to 
download a printable report. Customers can also reach out to the 
Mailing Shipping & Solution Center for assistance with the Business 
Customer Gateway by calling 1-877-672-0007 or email [email protected].
    Comment: This proposal may lead to more undelivered newspapers due 
to not being able to find the bandwidth to learn ACS, execute regular 
updates and incorporate changes. Lengthening the lead time for adoption 
could help to avoid this possibility.
    Response: The Postal Service will not implement this change until 
July 9, 2023 and will work closely with customers to ensure they 
understand the ACS requirements. Also, there is the Single Source ACS 
option available.
    Comment: The proposal may introduce a new entry barrier for 
enrollment into Full-Service. Full Service adoption requires software 
programming time, changes in address label printing and attention to 
certain compliance issues. The return on this time and resource 
investment is extraordinarily meager.
    Response: Only the full-service automation option mailers will be 
affected by this change beginning July 9, 2023. Non full-service 
automation option mailers are encouraged to migrate over to the full-
service

[[Page 7876]]

automation option so they can take advantage of additional discounts 
offered.
    Comment: Clarity is needed around the statement ``Participating 
Full-Service and Seamless Acceptance mailers receive ACS notices at no 
charge. As a result, notices provided to mailers in this format has far 
exceeded the volume of returned mail and PS Forms 3547 and 3579 
requested and generated from undeliverable Full-Service and Seamless 
Acceptance mail.'' What is the problem that the USPS is trying to solve 
with the proposed changes?
    Response: This initiative reduces the cost of printing, processing, 
and mailing of a separate hardcopy address notice, PS Form 3547 and 
3579.
    Comment: Seamless Acceptance must also be Full Service, so the 
reference to Seamless Acceptance mailers in this context appears 
unnecessary and confusing.
    Response: Full Service and Seamless Acceptance are commonly used 
synonymously, however, there is a distinction. A mailer can submit a 
full-service mailing and not be considered a Seamless mailer. Mailers 
participating in Seamless Acceptance are identified by CRID and 
assessed differently than a Full-Service mailer.
    Comment: Volume analysis needs to be conducted to determine the 
volume of Full-Service mail that would be impacted by this rule change 
because the data points provided point to a significant percent of the 
volume.
    Response: The Postal Service performed an analysis which was 
considered in the decision to move forward with this effort. Of the 
33.5M forms produced in FY22, nearly 60% of those were produced by 
full-service automation option mailers.
    Comment: Clarification is needed for ``Return Service Requested'' 
ASE. Is the USPS proposing to eliminate these notices?
    Response: The Postal Service is not proposing to eliminate the 
``Return Service Requested'' ancillary service endorsement. Return 
Service Requested is an on-piece address correction notice and does not 
produce a separate notice PS Form 3547.
    Comment: Compliance can be burdensome and costly for small business 
customers. MSPs may be responsible for printing the ACS STIDs in IMbs 
for their customers, we do not provide ACS services to the customer. A 
small business may only mail a small volume of pieces per day and only 
have 10 ACS notices per month. For these low volume mailers, the cost 
of the software, resources and systems need to utilize electronic/
automated ACS notices can be significant. Even if these low volume 
mailers could afford to invest the necessary money and resources, who 
would provide the education and customer support to move them into the 
electronic environment?
    Response: The SingleSource ACS option is available, which removes 
the need for handling different file formats and allows customers to 
download a printable report. There is no cost to sign up for 
SingleSource ACS.
    Comment: While the goal of reducing manual address correction 
notices is supported, a more collaborative effort is needed to identify 
reasons that mailers may continue to elect to receive manual correction 
notices. It is recommended the Postal Service defer implementation of 
the proposed changes until such time as an MTAC group can be formed and 
work through potential alternatives to help reduce the volume of manual 
ACS notices.
    Response: The Postal Service has already communicated this effort 
through multiple MTAC User Groups for input. This is not an immediate 
action, it is schedule to begin July 9, 2023.
    The Postal Service is removing the option to request PS Forms 3547, 
Notice to Mailer of Correction in Address, and PS Form 3579, Notice of 
Undeliverable Periodical, for Full-Service and Seamless Acceptance 
mailers.
    Full Service and Seamless Acceptance mailers and publishers that 
desire address correction information from undeliverable as addressed 
(UAA) mail will be required to receive address correction notices 
electronically via ACS. Those mailers that apply the ancillary service 
endorsement ``Address Service Requested'' or ``Change Service 
Requested'' to their mail, and Periodical publishers will receive ACS 
notices via the Data Distribution Dashboard from the Business Customer 
Gateway or by enrolling in the Electronic Product Fulfillment (EPF) 
secure website at https://epf.usps.gov. When appropriate, the 
electronic or automated address correction fees will be charged for 
each ACS notice provided.
    The Postal Service is implementing this change effective July 9, 
2023. However, mailers that currently request manual address 
corrections via PS Form 3547 or PS Form 3579 may begin to request ACS 
immediately.
    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.
    We will publish an appropriate amendment to 39 CFR part 111 to 
reflect these changes.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

    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- 404, 414, 416, 3001-3018, 3201-3220, 3401-
3406, 3621, 3622, 3626, 3629, 3631- 3633, 3641, 3681-3685, 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)

* * * * *

500 Additional Mailing Services

* * * * *

507 Mailer Services

* * * * *

4.0 Address Correction Services

* * * * *

4.2 Address Change Service (ACS)

* * * * *

4.2.6 Additional Standards--When Using Intelligent Mail Barcodes

    [Revise the introductory text of 4.2.6 to read as follows:]
    Mailers can access OneCode ACS using an Intelligent Mail barcode, 
which contains a valid Service Type Identifier indicating the ancillary 
service requested; a numeric Mailer ID; and the Serial Number, a unique 
numeric mailpiece identifier (Keyline equivalent). This option is 
available for letters and flat size pieces mailed as First-Class Mail, 
USPS Marketing Mail, and Periodicals. Address Service, Change Service 
and Return Service Ancillary Services are available for letters and 
flat-sized mail pieces mailed as First-Class Mail, USPS Marketing Mail, 
and Bound Printed Matter (BPM), by choosing the appropriate ACS Service 
Type Identifier in the Intelligent Mail barcode. USPS Marketing Mail 
and Bound Printed Matter pieces with ACS using an Intelligent Mail 
barcode require the use of a printed on-piece endorsement. ACS mailers 
are encouraged to use the ``Electronic Service Requested'' text 
endorsement.

[[Page 7877]]

Other printed endorsements are not required to request ancillary 
services in conjunction with an Intelligent Mail barcode used on First-
Class Mail or Periodicals mailpieces, and their use may produce 
unintended results. Full-Service and Seamless Acceptance mailers that 
desire separate address corrections using Address Service and Change 
Service ancillary services must request ACS and will receive the ACS 
notices through Full Service. See 705.23.5.2 for additional standards. 
For other mailers, in order to receive requested ACS information, 
mailers must notify the NCSC, ACS Department in Memphis, TN, in 
writing, seven days prior to mailing to establish a method for ACS 
notice fulfillment and to arrange for payment of electronic or 
automated address correction fees. Mailpieces must meet the following 
specifications:
* * * * *

700 Special Standards

* * * * *

705 Advanced Preparation and Special Postage Payment Systems

* * * * *

23.0 Full-Service Automation Option

* * * * *

23.5 Additional Standards

* * * * *

23.5.2 Address Correction Notices

    [Revise the text of 23.5.2 to read as follows:]
    Mailers presenting mailpieces (except for those noted below) that 
qualify for the full-service Intelligent Mail option will receive 
automated address correction notices electronically when the pieces are 
encoded with Intelligent Mail barcodes with ``Address Service 
Requested'' or ``Change Service Requested'' under standards for OneCode 
ACS and under the following conditions:
    a. Mailpieces must include the appropriate ACS service type ID in 
the Intelligent Mail barcode to match the ancillary service requested. 
See 507.1.5 for mail disposition and address correction combinations by 
class of mail.
    b. Complimentary ACS ancillary service address correction notices 
for mailpieces in full-service mailings are available for:
    1. First-Class Mail letters and flats, provided at no charge 
(printed endorsement not required for letters).
    2. Periodicals letters and flats, provided at no charge (printed 
endorsement not required).
    3. USPS Marketing Mail letters and flats or BPM flats, provided at 
no charge. USPS Marketing Mail and BPM pieces must include a printed 
on-piece endorsement in addition to encoding the ACS ancillary service 
request into the Intelligent Mail barcode. See 507.4.2 for additional 
standards.
    c. Mailers must use the ACS address correction information provided 
by USPS to update their address records to receive notices without 
paying additional fees. Beginning July 9, 2023, address corrections 
will only be provided electronically in the Business Customer Gateway 
under Mailing Reports utilizing the Data Distribution and Informed 
Visibility Dashboard
    d. A new Service Type Identifier (STID) Table will be published on 
PostalPro removing all STID references for manual corrections when 
mailers present qualifying Full-Service mail.
* * * * *

Tram T. Pham,
Attorney, Ethics and Legal Compliance.
[FR Doc. 2023-02309 Filed 2-6-23; 8:45 am]
BILLING CODE 7710-12-P