
445.325 Physical Characteristics.
Mailers must secure packages to withstand normal transit and handling
without breakage or damage and to prevent injury to postal personnel.  The use
of heavy-gauge shrink-wrap over plastic strapping is recommended for securing
packages of flat-size mail.  However, the use of only banding material or only
shrink-wrap is acceptable if the integrity of the package is maintained
throughout normal processing.  Banding material, if used, must be applied at
least once around the length and once around the girth.  The use of wire or
metal strapping is prohibited.

445.33 Optional Bundle Preparation

445.331 Definition.
A bundle is defined as a group of two or more packages that are secured
together as one unit.

445.332 Weight and Volume.
Bundles must contain a minimum of two packages.  The maximum weight of a
bundle is 40 pounds.

445.333 Sortation.
Mailers may consolidate packages that are to be placed on pallets into
bundles in the same manner as sacks are prepared (see 441.31,
443.31, and 444.31).  Pieces for optional SCF destinations
must be prepared as packages only.  Bundles for foreign destinations cannot be
prepared.  Foreign packages cannot be placed on pallets and must be sacked
(see International Mail Manual 244.52).  Mailers must not prepare
bundles for SDC, state, and mixed states destinations.  Mailers must sack
packages for SDC, state, and mixed states destinations in accordance with
441.315, 441.316, and 441.317 or 445.35.

445.334 Bundle Labels.
Bundles containing packages for levels of sortation finer than the bundle
destination must be labeled with a facing slip containing only the destination
and contents line information required for sack labels in 441.312,
441.313, and 444.312.  The following are examples of
bundles requiring facing slips:

a.
A carrier routes bundle containing carrier route packages for different
carrier routes within the same 5-digit ZIP Code area.

b.
A 3-digit bundle containing all 5-digit packages for the same 3-digit ZIP
Code area.

c.
A 3-digit bundle containing a 5-digit package and a 3-digit package for the
same 3-digit ZIP Code area.

445.335 Physical Characteristics.
Mailers must secure bundles to withstand handling without breakage or
damage and to prevent injury to postal personnel.  The use of heavy-gauge
shrink-wrap over banding is the recommended method of securing packages.
However, use of only banding material or only shrink-wrap is acceptable.
Banding material, if used, must be applied at least once around the length and
once around the girth of each package.  The use of metal strapping or wire to
secure packages is prohibited.

445.34 Pallet Preparation for Co-Palletized Flat-Size Mail

445.341 Weight and Volume

a.
The minimum mail load of a pallet is 500 pounds.

Exception:  Up to 10% of the pallets in a mailing may weigh less than
500 pounds, but not less than 250 pounds.  Only pallets prepared to the SCF
level may be included in the 10% allowance.

b.
The gross weight of a pallet of mail (the pallet and the mail) must not
exceed 2,200 pounds.

445.342 Sortation.
Mailers must place packages and bundles on pallets as described below,
beginning with pallets for the finest sortation level (5-digit pallets)
through the largest authorized sortation level (sectional center facility
(SCF) pallets), and they must maintain records for each mailing as required in
424.865.

a. Five-Digit Pallets.
Whenever there are 500 or more pounds of packages and bundles of mail for
the same 5-digit ZIP Code area, they must be placed on a pallet labeled to
that 5-digit destination.  Pallet labels must be prepared and affixed to the
pallet in accordance with 445.343.  The labels must contain the
information required for 5-digit sack labels in 441.311 in the format
required by that section.  Five-digit pallets containing less than 500 pounds
of mail are not accepted.

b. Optional Multicoded City Pallets.
If, after making up all required 5-digit pallets, there are 500 or more
pounds of packages and bundles remaining that are destined for the same
optional multicoded city, mailers may prepare an optional multicoded city
pallet labeled to that city.  Exhibit 122.63a is a list of optional
multi-ZIP Coded post offices and the ZIP Code areas served by each.  The
pallet labels must be prepared and affixed to the pallet in accordance with
445.343.  The labels must contain the information required for
optional multicoded city sack labels in 441.312 in the format
required by that section.  Optional multicoded city pallets containing less
than 500 pounds of mail are not accepted.

c. Three-Digit Pallets.
If, after preparing all required 5-digit and optional multicoded city
pallets, there are 500 or more pounds of packages and bundles remaining that
are destined for the same 3-digit ZIP Code prefix area, mailers must prepare a
3-digit pallet labeled to that 3-digit destination.  The pallet labels must be
prepared and affixed to the pallet in accordance with 445.343.  The
pallet labels must contain the information required in 441.313 in the
format required by that section.  Three-digit pallets containing less than 500
pounds of mail are not accepted.

Exception:  For those SCFs listed in Exhibit 122.63d, if
preparation of one or more 3-digit pallets results in less than 500 pounds of
packages remaining for other 3-digit ZIP Code areas served by that SCF,
consolidate the packages on the 3-digit pallet (or the smallest of multiple
3-digit pallets) with the remaining packages, and prepare them as an SCF
pallet.

d. SCF Pallets.
When, after preparing all required 5-digit, optional multicoded city, and
required 3-digit pallets, there are 500 or more pounds of packages and bundles
remaining that are destined for ZIP Codes served by the same sectional center
facility (SCF) serving more than one 3-digit ZIP Code area, they must be
placed on a pallet labeled to that SCF.  Exhibit 122.63d is a list of
SCFs serving more than one 3-digit ZIP Code area, the 3-digit ZIP Code areas
served by each, and the proper destination line (line 1) for sack/pallet
labels.  SCF pallets must always contain packages for two or more 3-digit ZIP
Code areas served by the same SCF.  The pallet labels must be prepared and
affixed to the pallet in accordance with 445.343.  The pallet labels
must contain the information required for SCF sacks in 441.314 and be
in the format required by that section.  SCF pallets may contain less than the
minimum requirement of 500 pounds of mail, but not less than 250 pounds of
mail, provided those pallets fall within the 10% allowance specified in
445.341a.  Mailers must separately sack each second-class
publication that cannot be placed (co-palletized) on SCF pallets in accordance
with 441.3 and 445.35.  Alternatively, the packages of each
publication and edition may be sacked together provided the documentation
described in 424.865c(2) is submitted.

445.343 Pallet Labels

a. General.
Mailers must affix at least two clearly visible labels on two adjacent
sides of each pallet.  Pallet labels must be pink and at least 8 by 11 inches,
with letters at least 1/2 inch high.  Labels must contain the information
required in 445.342a through 445.342d.

b. Destination Line.
In cases where the destination line of a pallet label does not provide
sufficient space for all required information, the destination ZIP Code may be
placed, right-justified (far right-hand side), on the line immediately below
the destination line and above the contents line of the pallet label.  As an
alternative, a standard abbreviation for the destination city name may be used.

c. Contents Line.
When the contents line of a pallet label does not provide sufficient space
for all required information, the contents information may be continued,
right-justified (far right-hand side), on the line immediately below the
contents line and above the office of mailing line of the pallet label.  As an
alternative, the following authorized contents line abbreviations may be used:


MixedMXD
DigitDG
Carrier RouteCR-RT
Carrier RoutesCR-RTS
FlatsFLTS



d. Additional Information.
If a 5-digit pallet contains only carrier route packages or carrier routes
bundles, the contents line of the pallet label must show the words CARRIER
ROUTES, or the authorized abbreviation, after the description of contents
(NEWS or 2C).

e. Extraneous Information.
Extraneous information not required by the Postal Service may be placed on
a pallet label by the publisher, mailer, or fulfillment house.  It is
recommended that extraneous information appear only on the bottom portion of
the pallet label.  If used, extraneous information must meet the following
criteria:

(1)
The print size is smaller than the 1/2-inch height specified for Postal
Service required information.

(2)
No extraneous information appears on or between the lines reserved for
Postal Service required information (see 441.323).

(3)
A 1-inch clear space is maintained around the lines reserved for Postal
Service required information.

445.344 Physical Characteristics

a. General.
Pallets used in a co-palletized mailing (whether provided by the Postal
Service or by the mailer) must be constructed of high-quality material,
designed to handle loads equal to a gross weight of 2,200 pounds with maximum
volume of up to 65 cubic feet.  The dimensions must be 48 by 40 inches.  The
pallets must be designed for four-way entry by fork trucks and two-way entry
by pallet jacks.  Mailers must wrap pallets of mail with shrinkable or
stretchable plastic strong enough to retain the integrity of the pallet
throughout transportation and handling.  It is also recommended that the
pallets be banded.

b. Top Caps.
Top caps are required on loaded pallets weighing less than 1,000 pounds
gross.  Top caps are also required on pallets that are double-stacked during
staging or transit, regardless of weight.  A top cap must be secured to the
pallet with strapping or banding sufficient to keep the cap in place so that
it protects the mail and maintains the integrity of the pallet.

c. Stacking Pallets.
Pallets must be stacked, whenever possible, under the following conditions:

(1)
The combined gross weight of stacked pallets does not exceed 2,200 pounds.

(2)
The combined height of stacked pallets does not exceed 7 feet.

(3)
Stacked pallets must be top-capped.

(4)
The pallets must be banded together with appropriate strapping material to
maintain their integrity throughout transportation and handling.

(5)
The heaviest pallet must be on the bottom and the lightest pallet on top.

445.35 Presentation of Mailings.
Sacks containing packages for SDC, state, or mixed states destinations or
containing packages remaining after all possible pallets have been prepared,
may be presented along with the palletized mailing (i.e., on the same mailing
statement), if the sacks are physically segregated from the palletized portion
of the mailing.

445.36 Renewal or Cancellation of Authorization

445.361 Renewal.
Before the co-palletization authorization expiration date, the
publisher/mailer must submit a new request if a renewal of the authorization
is desired.

445.362 Cancellation.
An authorization may be canceled if the mailer has not complied with the
regulations governing mail preparation and palletization.

445.4 Palletizing Sacks

445.41 Application

445.411 General.
The general manager, rates and classification center (RCC), serving the
post office where the mailer is located, may authorize the preparation of
second-class mail in sacks presented on pallets.  The publisher, or the person
mailing in behalf of the publisher, must submit Form 3856 for each publication
to be palletized to the field division general manager/postmaster of the
division serving the post office where the mailer's plant is located (see
132).  The publisher/mailer may obtain Form 3856 from the field
director, marketing and communications, at the division.

445.412 Approval or Denial

a. Division.
The division must sign the application with a recommendation for approval
or denial, stating the reason for the recommendation.  Applications
recommended for approval are sent to the TMSC.  Applications not recommended
or approval are sent directly to the RCC stating the reason for the
recommended denial.

b. TMSC.
The TMSC works with the division and the mailer to determine the equipment
and transportation needs associated with the application to palletize.  If
equipment and transportation are available by the projected startup date, the
TMSC notes the date of availability on the application, signs it, and sends it
to the RCC.  If equipment and transportation are not available by the
projected startup date, the TMSC notes this in the comments portion of the
application.  All applications must be sent to the RCC.

c. RCC.
If the general manager, RCC, finds that the mailer qualifies under and can
comply with the regulations governing mail preparation and palletization, the
general manager issues an authorization to palletize.  If the RCC authorizes
palletization over a division's recommendation for denial, the RCC initially
calls the TMSC and coordinates the effective date.  The RCC must notify the
publisher/mailer, in writing, of the approval and the effective date.  If the
RCC grants an authorization, the mailer must be prepared to submit information
for future mailings, such as that required on the original application, at the
request of the general manager, RCC.  The RCC must immediately notify the TMSC
by telephone of the approval and forward copies of the authorization to the
division, the TMSC, and all affected RCCs.  The RCC must deny the application
if it finds that the mailer cannot comply with the regulations governing mail
preparation and palletization.  If the RCC denies the application, the RCC
must immediately notify the TMSC of the denial by telephone, and must send a
written copy of the denial to the mailer, the division, the TMSC, and all
affected RCCs.

d. Length of Authorization.
Authorization is granted for a  specific period of time, not to exceed 2
years.

445.42 Package Preparation.
See 441.212 through 441.217, 443.21,
443.22, 444.21, and 444.22.

445.43 Sack Preparation

445.431 Weight and Volume.
No more than 70 pounds of mail may be placed in any sack.

445.432 Sack Labeling.
Sacks must be labeled in accordance with the requirements in
441.311 through 441.317, 441.32,
443.31, 443.32, 443.33, 444.31,
444.32, and 444.33.

445.433 Sack Sortation.
Sacks must be prepared in accordance with 441.311 through
441.317, 443.31, 443.32, 444.31, and
444.32.  Mixed states sacks must not be included in the palletized
portion of a mailing.  Such sacks may not be presented on pallets.

445.44 Pallet Preparation

445.441 Weight and Volume

a.
The minimum mail load of a pallet is 650 pounds.  Exception:  Up to 10% of
the pallets in a mailing may contain less than 650 pounds of mail.

b.
The gross weight of a pallet of mail (the pallet and the mail) must not
exceed 2,000 pounds.

445.442 Sortation.
Sacks must be placed on pallets as described below, beginning with pallets
for the finest sortation level (5-digit pallets) through the largest
authorized sortation level (transfer hub pallets).  When there are 650 or more
pounds of mail for a destination, the appropriate level pallet must be
prepared.  When two or more publications are part of a combined mailing in
sacks as provided in 424.85, the mailer must maintain records for
each publication as required in 424.84 through 424.86.



a. Five-Digit Pallets.
Whenever there are 650 or more pounds of sacks for the same 5-digit ZIP
Code area they must be placed on a pallet labeled to that 5-digit destination.
 Pallet labels must be prepared and affixed to the pallet in accordance with
445.443.  The labels must contain the information required for
5-digit sack labels in 441.311 the format required by that section.
Five-digit pallets must contain, at a minimum, 650 pounds of mail.

b. Optional Multicoded City Pallets.
If, after making up all required 5-digit pallets, there are 650 or more
pounds of sacks remaining that are destined for the same optional multicoded
city, mailers may prepare an optional multicoded city pallet labeled to that
city.  Exhibit 122.63a includes a list of optional multi-ZIP Coded
post offices and the ZIP Code areas served by each.  The pallet labels must be
prepared and affixed to the pallet in accordance with 445.443.  The
labels must contain the information required for optional multicoded city sack
labels in 441.312 in the format required by that section.  Optional
multicoded city pallets must contain, at a minimum, 650 pounds of mail.

c. Three-Digit Pallets.
If, after preparing all required 5-digit and optional multicoded city
pallets, there are 650 or more pounds of sacks remaining that are destined for
the same 3-digit ZIP Code prefix area, mailers must prepare a 3-digit pallet
labeled to that 3-digit destination.  The pallet labels must be prepared and
affixed to the pallet in accordance with 445.443.  The pallet labels
must contain the information required for 3-digit sacks in 441.313 in
the format required by that section.

d. SCF Pallets.
If, after preparing all required 5-digit, optional multicoded city, and
required 3-digit pallets, there are 650 or more pounds of sacks remaining that
are destined for ZIP Codes served by the same sectional center facility (SCF)
serving more than one 3-digit ZIP Code area, they must be placed on a pallet
labeled to that SCF.  Exhibit 122.63d includes a list of SCFs serving
more than one 3-digit ZIP Code area, the 3-digit ZIP Code areas served by
each, and the proper destination line (line 1) for sack/pallet labels.  SCF
pallets must always contain packages for two or more 3-digit ZIP Code areas
served by the same SCF.  The pallet labels must be prepared and affixed to the
pallet in accordance with 445.443.  The pallet labels must contain
the information required for SCF sacks in 441.314 in the format
required by that section.

e. Optional SDC Pallets.
After all required 5-digit, optional multicoded city, required 3-digit, and
required SCF pallets have been prepared, an SDC pallet may be prepared when
there are 650 or more pounds of sacks remaining that are destined for ZIP
Codes served by the same state distribution center (SDC).  A listing of SCDs
is contained in Exhibit 122.63f, showing the ZIP Codes they serve
and the proper destination line (line 1) for sack/pallet labels.  SDC pallets
must be labeled to the destination SDC in accordance with 445.443.
The pallet label must contain the information required for SDC sacks in
441.315 in the format required by that section.

f. Optional Transfer Hub Pallets (Sacked Mail Only).
If, after all required 5-digit, optional multicoded city, required 3-digit,
required SCF, and optional SDC pallets have been prepared, there are 650 or
more pounds of sacks remaining that are destined for ZIP Codes served by the
same transfer hub, a transfer hub pallet may be prepared.  Transfer hub
pallets must be labeled in the following manner:



Line 1:Designated transfer hub facility and lowest 3-digit ZIP Code
served by the transfer hub.
Line 2:Contents (2C or NEWS).
Line 3:City and state of the post office of mailing.



445.443 Pallet Labels

a. General.
Mailers must affix at least two clearly visible labels placed on two
adjacent sides of each pallet.  Pallet labels must be pink and at least 8 by
11 inches, with letters at least 1/2 inch high.  Labels must contain the
information required in 445.242a through 445.242e.

b. Destination Line.
In cases where the destination line of a pallet label does not provide
sufficient space for all required information, the destination ZIP Code may be
placed, right-justified (far right-hand side), on the line immediately below
the destination line and above the contents line of the pallet label.  As an
alternative, a standard abbreviation for the destination city name may be used.

c. Contents Line.
In cases where the contents line of a pallet label does not provide
sufficient space for all required information, the contents information may be
continued, right-justified (far right-hand side), on the line immediately
below the contents line and above the office of mailing line of the pallet
label.  As an alternative, use the following authorized contents line
abbreviations:




MixedMXD
DigitDG
Carrier RouteCR-RT
Carrier RoutesCR-RTS
LettersLTRS
FlatsFLTS



d. Additional Information.
If a 5-digit pallet contains only carrier route sacks, the contents line of
the pallet label must show the words CARRIER ROUTES, or the authorized
abbreviation, after the description of contents (NEWS) or (2C).

e. Extraneous Information.
Extraneous information is information placed on a pallet label by the
publisher, mailer, or fulfillment house providing the labels, which is not
required by the Postal Service.  It is recommended that extraneous information
appear only on the bottom portion of the pallet label.  Extraneous information
is allowed on pallet labels provided it meets the following criteria:

(1)
The print size is smaller than the 1/2-inch height specified for Postal
Service required information.

(2)
No extraneous information appears on or between the lines reserved for
Postal Service required information.

(3)
A 1-inch clear space is maintained around the lines reserved for Postal
Service required information.

445.444 Physical Characteristics

a. General.
Pallets used in a palletized mailing (whether provided by the Postal
Service or the mailer) must be constructed of high-quality material, designed
to handle loads equal to a gross weight of 2,200 pounds with volume up to 65
cubic feet.  The dimensions must be 48 by 40 inches.  The pallets must be
designed for four-way entry by fork trucks and two-way entry by pallet jacks.
Mailers must wrap pallets of mail with shrinkable or stretchable plastic
strong enough to retain the integrity of the pallet throughout transportation
and handling.  It is also recommended that the pallets be banded.

b. Top Caps.
Top caps are required on loaded pallets weighing less than 1,000 pounds
gross.  Top caps are also required on pallets that are double-stacked during
staging or transit, regardless of weight.  A top cap must be secured to the
pallet with strapping or banding sufficient to keep the cap in place so that
it protects the mail and maintains the integrity of the pallet.

c. Double Stacking Pallets.
Pallets must be double-stacked whenever possible under the following
conditions:

(1)
The combined gross weight of double-stacked pallets must not exceed 2,200
pounds.

(2)
Both pallets must be top-capped.

(3)
The pallets must be banded together with appropriate strapping material to
maintain their integrity throughout transportation and handling.

(4)
The heavier of the two pallets must be on the bottom.

Note:  Triple-stacked pallets are not accepted under any circumstances.

445.45 Presentation of Mailings.
Sacks remaining after all possible pallets have been prepared may be
presented along with the palletized mailing (i.e., on the same mailing
statement), if the sacks are physically segregated from the palletized portion
of the mailing.

445.46 Renewal or Cancellation of Authorization

445.461 Renewal.
Each authorization expires 2 years from the effective date of the
authorization.  The publisher/mailer must submit a new request if a renewal of
the authorization is desired.

445.462 Cancellation.
An authorization may be canceled if the mailer has not complied with the
regulations governing mail preparation and palletization.

446 Optional Use of Barcoded Sack Labels

446.1 General.
Sack labels supplied by the Postal Service are machine-printed with
barcodes that enable scanning and sortation by automated equipment.
Alternatively, mailers who produce their own sack labels are encouraged to
prepare them with a barcoded label that meets the criteria in 446.2
and 446.3.

446.2 Sack Label Specifications

446.21 Color.
Sack labels must be printed on pink-colored label stock.

446.22 Size.
Sack labels must fall within the following tolerances:

a.
Height (vertical): 0.965 inch 0.015 inch.

b.
Length (horizontal): 3.312 inches 0.062 inch.

446.23 Stock.
The paper stock used for sack labels must be 70 pound or heavier.

446.24 Printed Text Lines.
The preparation of the printed text lines must be in accordance with
441.321 and 441.322.  Extraneous information as described
in 441.323 may be printed on the label as long as it appears to the
right of the "quiet zone" (see 446.35) and does not interfere with
scanning and sorting by automated equipment.

446.25 Printing Density.
The human-readable content of sack labels must be machine-printed at five
lines per inch.  The preferred machine-printed pitch is 12 characters per
inch.  If the information to be contained on the label cannot be shortened
using acceptable postal abbreviations, it may be printed at a pitch of up to
15 characters per inch, provided at least 22 human-readable characters fit on
the label without interfering with the "quiet zone" (see 446.35).
The minimum acceptable height for the destinating ZIP Code must be 0.111 inch
(8 point).  The minimum acceptable character height for all other information
contained in lines 1, 2, and 3 must be 0.083 inch (6 point).

446.3 Barcode Specifications

446.31 Type.
The barcode must be an interleaved 2-of-5 code in accordance with the
Automatic Identification Manufactures' Uniform Symbology Specification
(AIM/USS-I 2/5) and the requirements of this section.

446.32 Barcode Location.
The barcode must be located on the left side of the sack label.  A clear
space must be maintained between both the left edge of the sack label and the
barcode and between the barcode and the printed text lines, in accordance with
the requirements in 446.35 (see Exhibit 446.32). *viewer
dmm446.pcx*

Exhibit 446.32
(NOT SHOWN)


]
DMM446Exhibit 446.32, Sample Barcoded Sack
Label]



446.33 Dimensions.
The nominal width of the bars and spaces ("X" dimension) must be between
0.010 inch and 0.015 inch.  An "X" dimension of 0.010 inch is preferred.  The
tolerance of the width of all bars and spaces is 0.004 inch.  The
nominal wide-to-narrow ratio for barcodes with an "X" dimension less than
0.013 inch is 3 to 1.  The nominal wide-to-narrow ratio for barcodes with an
"X" dimension between 0.013 inch and 0.015 inch is 2.3 to 1.  The height of
the barcode must be at least 0.700 inch.

446.34 Reflectance.
When measured at 633 nanometers, the maximum bar reflectance must be less
than 30%, and the minimum space reflectance must be 40% or greater.  The
minimum bar-to-space reflectance difference must be greater than 40%.

446.35 Clear Space (Quiet Zone).
There must be a clear area (or "quiet zone") at each end of the barcode
that is no less than 10 times the "X" dimension width and at least as high as
the height of the bars in the barcode.  The reflectance of the clear area must
meet the requirement for minimum space reflectance (see 446.34).

446.36 Barcode Contents.
The barcode on the sack labels must consist of eight numeric characters
representing the 5-digit ZIP Code of the sack's destination (see
446.24) and the applicable 3-digit sack contents identifier code in
Exhibit 446.36.  When only a 3-digit ZIP Code prefix is required, it
must be followed by two zeros.  When the contents of the sack do not
correspond to an available sack contents code, three zeros must be used.

447 Special Preparation Requirements for ZIP+4 and ZIP+4 Barcoded Mailings

447.1 General.
Except as provided in this section, publications mailed at the ZIP+4 and
ZIP+4 Barcoded rates must be presorted, packaged, and sacked as prescribed by
441 and 443.  Publishers may present mail in trays rather
than in sacks under the conditions described below.  As an alternative,
publishers may follow the preparation requirements in Chapter 5.

447.2 Basic Preparation Requirements

447.21 Packaging.
Pieces must be prepared in packages as specified in 441.21 through
441.24 (if claimed at level A, G, and J rates) or 443.21
through 443.25 (if claimed at level B and H rates) except that each
package in a mailing at the ZIP+4 and ZIP+4 Barcoded rates must contain a
minimum of 6 addressed pieces.  The "last" mixed states package may contain
fewer than 6 pieces.

447.22 Sacking.
Packages must be sacked as specified in 441.31 through
441.33 (if claimed at level A, G, and J rates) or 443.31
through 443.34 (if claimed at level B and H rates) except that

a.
the second (contents) line on labels for sacks must show the information
specified in 441.32 and 443.3, followed by "ZIP+4" or "Z+4"
(for ZIP+4 rate mailings) or "ZIP+4 BARCODED" or "Z+4 B/C" (for ZIP+4 Barcoded
rate mailings); and

b.
each sack in a mailing at the ZIP+4 and ZIP+4 Barcoded rates must contain a
minimum of 4 packages, except for the "last" mixed states sack which may
contain fewer than 4 packages.

447.3 Trays

447.31 Use.
ZIP+4 and ZIP+4 Barcoded rate mailings of automation-compatible letter-size
publications may be prepared in trays rather than in sacks.  Trays are the
preferred container for automation-compatible mail.

447.32 Packaging of Mail in Trays

447.321 General.
Mailings prepared in trays must be packaged as required by
447.21, except as provided below.

447.322  Five-Digit Trays.

Pieces need not be prepared in 5-digit packages when all the mail in those
packages are placed in the same tray for the same 5-digit ZIP Code
destination.  Five-digit packages are required when the corresponding pieces
are being placed in other than 5-digit trays.

447.323 Unique 3-Digit Trays.
Pieces need not be prepared in unique 3-digit packages when all the mail in
those packages would be placed in the same tray for the same unique 3-digit
ZIP Code destination.  Five-digit packages are required when the corresponding
pieces are being placed in other than 5-digit trays.  Unique 3-digit packages
are required when the corresponding pieces are being placed in other than
unique 3-digit trays.

447.324 SCF Trays.
Pieces need not be prepared in SCF packages when all the mail in those
packages would be placed in the same tray for the same SCF destination.
Five-digit and unique 3-digit packages are required when the corresponding
pieces are being placed in other than 5-digit or unique 3-digit trays,
respectively.  SCF packages are required when the corresponding pieces are
being placed in other than SCF trays.

447.325 Optional Sortation to Automated Sites.
Subject to the requirements of 424.632 and 447,
publishers may prepare mailings at the level B3/H3/J3 ZIP+4 Barcoded rate
without making 5-digit packages or sacks when all pieces in the mailing are
for destinations within the 3-digit ZIP Code ranges listed in Exhibit
122.63m, and pieces destinating in other ZIP Code areas are prepared as a
separate mailing.  Pieces prepared under this optional sortation must be
presorted in unique 3-digit, SCF, AADC and Mixed AADC packages which are
correctly sorted in unique 3-digit, SCF, AADC, and Mixed AADC sacks or trays
to the destinations listed in Exhibit 122.63m through Exhibit
122.63o.  Mixed AADC packages and trays may have fewer pieces or packages
than prescribed in 424.632.  Pieces in SCF, AADC, and mixed AADC
packages and sacks, or packages and trays, are not eligible for the level
B3/H3/J3 rates and must be claimed at the level A/G/J1 rates.



447.33 Presort.
Unless prepared under the optional method described in 447.325,
mail must be presorted to trays in the same sequence as specified for mail
prepared in sacks.  See 441.31 through 441.33 (if claimed at
level A, G, and J rates) or 443.31 through 443.34 (if
claimed at level B and H rates).  A tray must be prepared to a required
sortation whenever the mail for that destination fills 3/4 of the tray when
the contents are reasonably compressed.  Trays with less mail may not be
prepared to any required or optional sortation, except for the final tray in a
mailing or as provided in 447.34.

447.34 Volume per Tray.
Mailers should balance the volume in trays when more than one is prepared
for the same destination to ensure that all are at least 3/4 full (when their
contents are reasonably compressed).  If, after this step, the remaining
pieces for that destination are not enough to generate an additional full
tray, they may be placed in a tray that is less than 3/4 full, provided the
pieces in that tray are packaged to preserve their orientation, and only one
such tray for that destination is prepared in the mailing.  To allow accurate
verification of the mailing by postal acceptance personnel, the mailer must
provide a listing of all such trays prepared in addition to other
documentation required for the rate claimed.

447.35 Sleeving and Banding.
To ensure the integrity of the mail in transit, each tray must be enclosed
in a sleeve and secured by a plastic strap placed tightly around the length of
the tray.  The postmaster of the office of entry may waive this requirement
for local mail.

447.36  Tray Labels.
A tray label must be securely affixed to the end of each tray.  Tray labels
are subject to the same requirements as specified for sack labels in
441.32 and 446, except that the second (contents) line on
tray labels be followed by "ZIP+4" or "Z+4" (for ZIP+4 rate mailings) or
"ZIP+4 BARCODED" or "Z+4 B/C" (for ZIP+4 Barcoded rate mailings).

Exhibit 446.36



Exhibit 446.36, 3-Digit Sack Contents Identifier Code



CI#Mail Type




CI#Mail Type
]

100NEWS
101NEWS CARRIER ROUTE
102NEWS RURAL ROUTE
103NEWS HWY CONTR RT
104NEWS BOX SECT
105NEWS GEN DEL UNIT
106NEWS CARRIER ROUTES
107NEWS MIXED STATES
116NEWS APO/FPO
120NEWS CITY
141NEWS - AL
142NEWS - AK
143NEWS - AZ
144NEWS - AR
145NEWS - CA
146NEWS - CO
147NEWS - CT
148NEWS - DE
149NEWS - DC
150NEWS - FL
151NEWS - GA
152NEWS - GU
153NEWS - HI
154NEWS - ID
155NEWS - IL
156NEWS - IN
157NEWS - IA
158NEWS - KS
159NEWS - KY
160NEWS - LA
161NEWS - ME
162NEWS - MD
163NEWS - MA
164NEWS - MI
165NEWS - MN
166NEWS - MS
167NEWS - MO
168NEWS - MT
169NEWS - NE
170NEWS - NV
171NEWS - NH
172NEWS - NJ
173NEWS - NM
174NEWS - NY
175NEWS - NC
176NEWS - ND
177NEWS - OH
178NEWS - OK
179NEWS - OR
180NEWS - PA
181NEWS - PR
182NEWS - RI
183NEWS - SC
184NEWS - SD
185NEWS - TN
186NEWS - TX
187NEWS - UT
188NEWS - VT
189NEWS - VA
190NEWS - VI
191NEWS - WA
192NEWS - WV
193NEWS - WI
194NEWS - WY
195NEWS - AS
196NEWS - FM
197NEWS - MH
198NEWS - MP
199NEWS - PW
2002C
2012C CARRIER ROUTE
2022C RURAL ROUTE
2032C HWY CONTR RT
2042C BOX SECT
2052C GEN DEL UNIT
2062C CARRIER ROUTES
2072C MIXED STATES
2162C APO/FPO
2202C CITY
2412C - AL
2422C - AK
2432C - AZ
2442C - AR
2452C - CA
2462C - CO
2472C - CT
2482C - DE
2492C - DC
2502C - FL
2512C - GA
2522C - GU
2532C - HI
2542C - ID
2552C - IL
2562C - IN
2572C - IA
2582C - KS
2592C - KY
2602C - LA
2612C - ME
2622C - MD
2632C - MA
2642C - MI
2652C - MN
2662C - MS
2672C - MO
2682C - MT
2692C - NE
2702C - NV
2712C - NH
2722C - NJ
2732C - NM
2742C - NY
2752C - NC
2762C - ND
2772C - OH
2782C - OK
2792C - OR
2802C - PA
2812C - PR
2822C - RI
2832C - SC
2842C - SD
2852C - TN
2862C - TX
2872C - UT
2882C - VT
2892C - VA
2902C - VI
2912C - WA
2922C - WV
2932C - WI
2942C - WY
2952C - AS
2962C - FM
2972C - MH
2982C - MP
2992C - PW
3003C FLTS
3013C FLTS CR
3023C FLTS RR
3033C FLTS HC
3043C FLTS B
3053C FLTS GD
3063C FLTS MXD CR RTS
3073C FLTS MXD 5-DG PKGS
3083C FLTS MIXED STATES
3123C IRREG
3133C MACH AND IRREG
3143C MACH
3163C FLTS APO/FPO
3173C FLTS CR-RTS
3183C FLTS APO
3193C FLTS FPO
3203C FLTS CITY
3213C FLTS IRREG CITY
3413C FLTS - AL
3423C FLTS - AK
3433C FLTS - AZ
3443C FLTS - AR
3453C FLTS - CA
3463C FLTS - CO
3473C FLTS - CT
3483C FLTS - DE
3493C FLTS - DC
3503C FLTS - FL
3513C FLTS - GA
3523C FLTS - GU
3533C FLTS - HI
3543C FLTS - ID
3553C FLTS - IL
3563C FLTS - IN
3573C FLTS - IA
3583C FLTS - KS
3593C FLTS - KY
3603C FLTS - LA
3613C FLTS - ME
3623C FLTS - MD
3633C FLTS - MA
3643C FLTS - MI
3653C FLTS - MN
3663C FLTS - MS
3673C FLTS - MO
3683C FLTS - MT
3693C FLTS - NE
3703C FLTS - NV
3713C FLTS - NH
3723C FLTS - NJ
3733C FLTS - NM
3743C FLTS - NY
3753C FLTS - NC
3763C FLTS - ND
3773C FLTS - OH
3783C FLTS - OK
3793C FLTS - OR
3803C FLTS - PA
3813C FLTS - PR
3823C FLTS - RI
3833C FLTS - SC
3843C FLTS - SD
3853C FLTS - TN
3863C FLTS - TX
3873C FLTS - UT
3883C FLTS - VT
3893C FLTS - VA
3903C FLTS - VI

3913C FLTS - WA
3923C FLTS - WV
3933C FLTS - WI
3943C FLTS - WY
3953C FLTS - AS
3963C FLTS - FM
3973C FLTS - MH
3983C FLTS - MP
3993C FLTS - PW
4003C LTRS
4013C LTRS CR
4023C LTRS RR
4033C LTRS HC
4043C LTRS B
4053C LTRS GD
4063C LTRS MXD CR RTS
4073C LTRS MXD 5-DG PKGS
4083C LTRS MIXED STATES
4163C LTRS APO/FPO
4173C LTRS CR-RTS
4183C LTRS APO
4193C LTRS FPO
4203C LTRS CITY
4413C LTRS - AL
4423C LTRS - AK
4433C LTRS - AZ
4443C LTRS - AR
4453C LTRS - CA
4463C LTRS - CO
4473C LTRS - CT
4483C LTRS - DE
4493C LTRS - DC
4503C LTRS - FL
4513C LTRS - GA
4523C LTRS - GU
4533C LTRS - HI
4543C LTRS - ID
4553C LTRS - IL
4563C LTRS - IN
4573C LTRS - IA
4583C LTRS - KS
4593C LTRS - KY
4603C LTRS - LA
4613C LTRS - ME
4623C LTRS - MD
4633C LTRS - MA
4643C LTRS - MI
4653C LTRS - MN
4663C LTRS - MS
4673C LTRS - MO
4683C LTRS - MT
4693C LTRS - NE
4703C LTRS - NV
4713C LTRS - NH
4723C LTRS - NJ
4733C LTRS - NM
4743C LTRS - NY
4753C LTRS - NC
4763C LTRS - ND
4773C LTRS - OH
4783C LTRS - OK
4793C LTRS - OR
4803C LTRS - PA
4813C LTRS - PR
4823C LTRS - RI
4833C LTRS - SC
4843C LTRS - SD
4853C LTRS - TN
4863C LTRS - TX
4873C LTRS - UT
4883C LTRS - VT
4893C LTRS - VA
4903C LTRS - VI
4913C LTRS - WA
4923C LTRS - WV
4933C LTRS - WI
4943C LTRS - WY
4953C LTRS - AS
4963C LTRS - FM
4973C LTRS - MH
4983C LTRS - MP
4993C LTRS - PW
5004C MACH
6004C IRREG
6014C IRREG CR-RT
6024C IRREG CR-RTS
6034C IRREG MIXED STATES
6204C FLTS CITY
6214C IRREG CITY
6414C IRREG - AL
6424C IRREG - AK
6434C IRREG - AZ
6444C IRREG - AR
6454C IRREG - CA
6464C IRREG - CO
6474C IRREG - CT
6484C IRREG - DE
6494C IRREG - DC
6504C IRREG - FL
6514C IRREG - GA
6524C IRREG - GU
6534C IRREG - HI
6544C IRREG - ID
6554C IRREG - IL
6564C IRREG - IN
6574C IRREG - IA
6584C IRREG - KS
6594C IRREG - KY
6604C IRREG - LA
6614C IRREG - ME
6624C IRREG - MD
6634C IRREG - MA
6644C IRREG - MI
6654C IRREG - MN
6664C IRREG - MS
6674C IRREG - MO
6684C IRREG - MT
6694C IRREG - NE
6704C IRREG - NV
6714C IRREG - NH
6724C IRREG - NJ
6734C IRREG - NM
6744C IRREG - NY
6754C IRREG - NC
6764C IRREG - ND
6774C IRREG - OH
6784C IRREG - OK
6794C IRREG - OR
6804C IRREG - PA
6814C IRREG - PR
6824C IRREG - RI
6834C IRREG - SC
6844C IRREG - SD
6854C IRREG - TN
6864C IRREG - TX
6874C IRREG - UT
6884C IRREG - VT
6894C IRREG - VA
6904C IRREG - VI
6914C IRREG - WA
6924C IRREG - WV
6934C IRREG - WI
6944C IRREG - WY
6954C IRREG - AS
6964C IRREG - CM
6974C IRREG - TT
7004C FLTS
7014C FLTS CR-RT
7024C FLTS CR-RTS
7034C FLTS MIXED STATES
7414C FLTS - AL
7424C FLTS - AK
7434C FLTS - AZ
7444C FLTS - AR
7454C FLTS - CA
7464C FLTS - CO
7474C FLTS - CT
7484C FLTS - DE
7494C FLTS - DC
7504C FLTS - FL
7514C FLTS - GA
7524C FLTS - GU
7534C FLTS - HI
7544C FLTS - ID
7554C FLTS - IL
7564C FLTS - IN
7574C FLTS - IA
7584C FLTS - KS
7594C FLTS - KY
7604C FLTS - LA
7614C FLTS - ME
7624C FLTS - MD
7634C FLTS - MA
7644C FLTS - MI
7654C FLTS - MN
7664C FLTS - MS
7674C FLTS - MO
7684C FLTS - MT
7694C FLTS - NE
7704C FLTS - NV
7714C FLTS - NH
7724C FLTS - NJ
7734C FLTS - NM
7744C FLTS - NY
7754C FLTS - NC
7764C FLTS - ND
7774C FLTS - OH
7784C FLTS - OK
7794C FLTS - OR
7804C FLTS - PA
7814C FLTS - PR
7824C FLTS - RI
7834C FLTS - SC
7844C FLTS - SD
7854C FLTS - TN
7864C FLTS - TX
7874C FLTS - UT
7884C FLTS - VT
7894C FLTS - VA
7904C FLTS - VI
7914C FLTS - WA
7924C FLTS - WV
7934C FLTS - WI
7944C FLTS - WY
7954C FLTS - AS
7964C FLTS - FM
7974C FLTS - MH
7984C FLTS - MP
7994C FLTS - PW


]




450 Mailing

451 Who May Mail
Only publishers and registered news agents who have been authorized
second-class mailing privileges may mail at the second-class rates.  Postage
at the thirdor fourth-class rate (see 411.5) must be paid on all
copies mailed by the general public.

452 Copies Mailed by Printer
Copies mailed by a printer to a publisher are chargeable with postage at
the applicable thirdor fourth-class rate.

453 Place of Mailing
Publishers and registered news agents may only mail at the second-class
rates at post offices from which an authorization for original entry,
additional entry, or exceptional dispatch has been obtained.  Mailings must be
made between the times, and deposited at the places, designated by the
postmaster of the office of mailing.

460 Postage Payment Procedures

461 Copies Filed by Publishers

461.1 Copy to Show Compliance With Basic Requirements.
The publisher must file a copy of each issue with the postmaster at the
original entry office.

461.2 Copy Marked to Show Advertising.
The publisher must file, either with the postmaster of the original entry
office or the postmaster of the additional entry office where the publication
is produced or prepared for mailing, a copy of each edition of each issue
marked by the publisher so the advertising content may be verified when
necessary.  The publisher must also indicate on the first page of each marked
copy the total units and percentage of space devoted to advertising and
nonadvertising in the copy.  Advertising matter printed on envelopes,
wrappers, and the back of detached address cards must be included in the
determination of the advertising portion of the publication.  If necessary,
round off the computed percentage of advertising to two decimal places as
prescribed in 463.21.

461.3 Notification to Other Entry Offices.
The postmaster of the entry office where the marked copies are filed must
promptly furnish to the postmasters of all the other entry offices statements
of the verified per-copy weights and the percentage of advertising shown by
each marked copy.  Form 3551 should be used for this purpose.  When the
statements are not promptly received by the postmasters of the other entry
offices, they should request the postmaster of the office where the marked
copies were filed to furnish them.  Continued failure to furnish the
statements promptly should be reported to the general manager at the rates and
classification center serving the post office where the marked copies are
filed.

462 Payment of Postage

462.1 In Advance of Dispatch.
Postage must be fully prepaid before second-class mailings are dispatched.

462.2 Method of Payment

462.21 Second-Class Matter.
Payment for second-class mail must be through an advance deposit account
established at the post office of mailing (i.e., at the original or additional
entry post office where the copies are accepted), except as provided in
462.23 and 465.  The post office must issue receipts for
advance deposit account payments.

462.22 Thirdor Fourth-Class Matter.
Postage for thirdor fourth-class matter must be paid as described in
136.23, 136.316, and 429.186.

462.23 Centralized Postage Payment.
Publishers authorized to pay second-class postage under the Centralized
Postage Payment (CPP) System (see 464) must pay postage through an
advance deposit account at the designated post office (DPO) rather than at the
post office of mailing.

462.3 Mailer Responsibility.
The mailer is responsible for proper payment of postage.  See
111.32.

463 Mailing Statement

463.1 General

463.11  Forms.
Second-class postage is computed on Form 3541-R or Form 3541-N.

463.12  When to Submit

463.121  With Each Issue.
Publishers must complete and submit the required mailing statements with
the first mailing of each issue of the publication.  Additional documentation
may be required in support of the rates claimed (see 424.8,
428.225, and 428.226).

463.122  Monthly.
Upon request, the entry office postmaster may authorize the publisher of a
publication that is regularly printed on sheets of uniform weight to submit
one mailing statement at the end of each calendar month for mailings made
during that month (see 463.3).

463.13  Responsibility.
The publisher must ensure that all postage rates claimed on mailing
statements are correct and that all copies qualify for the rates claimed.

463.14  Verification of Advertising Percentage.
The postmaster must verify at least once a year the advertising percentage
reported on the applicable mailing statement by actually measuring the
advertising and nonadvertising portions of one issue.  If the postmaster finds
discrepancies, more frequent verification must be made to establish the
accuracy of the publisher's figures.  A record of the verification is attached
to the mailing statement.


EXHIBIT 463.23 DETERMINING AVERAGE WEIGHT PER COPY

move to style spec when chapter 4 is updated
]  Used in exhibits 463.24 and 463.34
]  Used in exhibits 463.24 and 463.34


HOW TO DETERMINE

AVERAGE WEIGHT PER COPY OF ONE ISSUE

The average weight per copy must include the wrapping and binding
materials.  To obtain the average weight per copy, follow these steps:

a.Select a reasonable number of copies so they can be expected to
represent the average of those mailed.  Wrap and package or bundle
them in units equal to the average size of the packages or bundles
mailed.  Include individually wrapped copies as well, in proportion to
their presence in the mailing.

b.Count and weigh the copies selected.

c.Divide the bulk weight of the test copies by the number of test copies
to obtain the average weight per copy in pounds.  Express the result
in decimal pounds rounded off, if necessary, to 6 decimal places.

EXAMPLE:

1.8,200 copies of one issue, chargeable at the pound rates;
approximately 60% appears to be individually wrapped while the rest
(40%) is wrapped in packages or bundles.

2.Take a representative number of copies (about 1%), with wrapping and
packaging or bundling materials, in the proportion approximated above.
 This would equal 50 individually wrapped copies and 32 copies wrapped
in packages or bundles (for a total of 82).

3.Weigh the 82 copies with wrapping and binding material required for
all.  Let's say the weight found is 15.9375 pounds.

4.Divide 15.9375 pounds by 82 to determine the average weight per copy
in pounds; carry the result to 7 decimal places and round off to 6
places, as prescribed in 463.21.

Example:  15.9375 / 82 = 0.194360


Exhibit 463.23, Determining Average Weight Per Copy of One
Issue]





463.15 Copies of Previous and Current Issues Combined.
When a reasonable number of copies of previous issues are included in a
mailing of a current issue, those issues may be accepted and charged with
postage on the basis of the percentages of advertising and nonadvertising
material contained in the current issue.  The issue forming the bulk of the
mailing presented is regarded as the current issue.

463.16 Mailing While Application is Pending.
A publisher mailing under an advance deposit account while a second-class
application is pending must submit with each mailing the applicable
second-class mailing statement annotated with the words "Pending Application."
 The applicable thirdor fourth-class mailing statement must be completed and
attached.

463.17 Sequenced Statement Number.
Mailers who submit more than one mailing statement per day must enter a
sequenced statement number in the appropriate block on each mailing statement
prepared that day.  The content and length of the number, the cycle of the
sequence (beyond one day), and the number of concurrently active cycles are at
the mailer's discretion, provided the same series of numbers is not active in
two cycles at the same time.  If the same mailing of one edition of one issue
includes copies reported on two mailing statements (such as when additional
postage is paid for nonsubscriber/nonrequester copies in excess of the 10%
limit) the sequenced statement number of the second form must be included with
the other information required on the primary mailing statement (on which the
total postage for the mailing is reported).

463.2  Computation Standards

463.21  General.
For purposes of this section, the "round off" instruction requires
increasing the last digit to be retained by 1 if the digit to its right, which
is not to be retained, is 5 or greater; if it is 4 or less, the last digit
retained is unchanged.  (For example, rounding off 3.376 to two decimal places
yields 3.38; while 3.374 yields 3.37.)

463.22  Percentage of Advertising.
The percentage of advertising entered on the mailing statement must be
based on the marked copy of the corresponding issue or edition submitted as
required by 461.2.  If necessary, round off the computed percentage
of advertising to two decimal places as prescribed in 463.21.

463.23 Weight

463.231  Average Weight per Copy.
The publisher must determine the average weight per copy by the method
described in Exhibit 463.23.  The publisher must:

a.
Use a sample consisting of no less than 10 complete copies, including
address labels, wrappers, and binding materials.

b.
Compute the average weight per copy to seven decimal places and round off
to six places, as prescribed in 463.21.

c.
Express the average per copy weight in decimal pounds (e.g., 0.583675
pound).

463.232  Total Weight of Copies.
To calculate the weight of mailed copies per zone or rate level, multiply
the corresponding number of copies by the computed average weight per copy
(see 463.231).  If necessary, round off any fraction in the product
to the nearest whole pound.  Exception:  If the product is a figure that is
more than 0 but less than 0.5 pound, round to 1 pound.

463.233 Weight of Advertising/Nonadvertising

a.
Advertising.  To determine the weight of the advertising portion for each
zone, multiply the total weight of copies for that zone (see
463.232) by the percentage of advertising (see 463.22)
and, if necessary, round off any fraction in the result to the nearest whole
pound.  EXCEPTION:  If the product is a figure that is more than 0 but less
than .5 pound, round to 1 pound.

b.
Nonadvertising.  To determine the nonadvertising portion, total the weight
of the advertising portion for all zones and, separately, the total weight of
copies to all zones.  Subtract the weight of the advertising portion from the
total weight of copies.

463.24 Nonadvertising Adjustment.

To determine the nonadvertising adjustment:

a.
Subtract the advertising percentage (see 463.22) from 100.

b.
Multiply the result by the applicable nonadvertising adjustment per piece
(see 411.2 and 411.3).

c.
Multiply the result by the number of addressed pieces; if necessary, round
off the result as prescribed by 463.252.

463.25  Postage

463.251  General.
Express all postage amounts in decimal dollars (e.g., $0.25).  Round as
directed below.

463.252  Computed Amounts and Subtotals.
Round off intermediate computed postage figures to four decimal places, if
necessary.

463.253  Rate Application.

a. General.
Postage for all second-class mail includes a pound rate charge, a piece
rate charge, and any reductions for which the mail may qualify.  Eligibility
for the various rates and reductions is described in 411,
423, and 424.  Postage is computed as prescribed by
411.13 and 463.2.

b. Pound Rate.
The pound-rate charge is based on the computed weight of the pieces in that
zone or other applicable group.  The minimum pound-rate charge for any zone or
other group for which a per-pound charge is computed is 1 unit (1 pound) of
the pound-rate charge.  (For example, three 2-ounce pieces for a zone are
subject to the minimum 1-pound charge at the applicable rate per pound.)

c. Pound Rate.
The pound rate charge is based on the computed weight of the advertising
portion of copies to each zone, plus an additional flat (unzoned) charge for
the total weight of the nonadvertising portion of all copies to all zones.
For publications containing advertising, the minimum pound rate charge for any
zone is 1 unit (pound) of the advertising pound rate charge, except that
authorized special nonprofit rate publications with an advertising percentage
that is 10% or less are considered 100% nonadvertising and may use "0" as the
"advertising percentage" when computing the pound rates and the nonadvertising
adjustment.  The minimum pound rate charge for the nonadvertising portion is
that which applies to all weight not reported in the advertising (zoned)
portion (see 463.233).  Authorized special nonprofit rate
publications claiming 0% advertising must pay the nonadvertising pound rate
for the entire weight of all copies to all zones.

463.254  Total Postage.
If necessary, round off the figure shown as total postage to the nearest
whole cent ($0.01).

463.3 Monthly Mailing Statement

463.31 Authorization to Use.
Postmasters may authorize publishers to submit the applicable mailing
statement at the end of the month for all issues mailed during that month, if
all issues are printed on sheets of the same weight.

463.32 When to File.
The properly completed statement on the applicable Postal Service form must
be submitted not later than 72 hours after the first mailing of the last issue
mailed each month.

463.33 Completion of Mailing Statement by Mailer

463.331 Average Number of Copies.
The average number of copies mailed per issue to each zone during the month
must be shown on the applicable mailing statement.  The publisher must
determine this number by dividing the total number of copies mailed to each
zone during the month by the total number of issues mailed.  The month and
year for which postage is being paid must be entered in the space provided for
the date of mailing on the applicable mailing statement.  The first and last
issue dates for the month must also be entered.

463.332 Percentage of Advertising.
The percentage of advertising for all issues mailed during the calendar
month must be entered on the applicable mailing statement.  This is obtained
as follows:

a.
The publisher must maintain a record of the number of units of advertising
space and the number of units of nonadvertising space in each issue, based on
the marked copies submitted in accordance with 461.

b.
Add the advertising units in each issue to determine the total advertising
units in all the issues.


c.
Add the nonadvertising units in each issue to determine the total
nonadvertising units in all the issues.

d.
Add the advertising and nonadvertising units to determine the total units
in all the issues.

e.
Divide the total advertising units by the total units to determine the
percentage of advertising; if necessary, round off the result to two decimal
places as prescribed in 463.21.

f.
Divide the total nonadvertising units by the total units to determine the
percentage of nonadvertising; if necessary, round off the result to two
decimal places as prescribed in 463.21.

463.333 Measurement of Contents.
The total advertising and nonadvertising portions may be expressed in
column inches, square inches, pages, or by any other recognized unit of
measure.  The publisher must use the same unit of measure for both the
advertising and nonadvertising portions.  When measuring nonrectangular
sheets, the measurement must be based upon the smallest rectangle which could
contain the irregular sheet.  No attempt is made to determine the exact area
of the irregular shape.  When two or more sheets or parts thereof are glued
together, the surface area of each sheet (front and back) is counted when
measuring the advertising or nonadvertising portion for purposes of
determining postage.

463.334 Payment of Advertising Rates on Reading Portions.
If desired, the publisher may pay postage at the advertising zone rates on
both the advertising and the nonadvertising portions of all second-class
publications (except requester publications) instead of marking a copy of each
issue to show the advertising and nonadvertising portions.  No issue of a
requester publication may consist of more than 75% advertising. The
advertising content of a publication authorized requester mailing privileges
must be shown on the applicable mailing statement.  When the amount of
advertising exceeds 75%, the copies submitted to the postmaster must be marked
"Advertising over 75%."  When the amount of advertising does not exceed 75%,
the copies submitted to the postmaster must be marked, "Advertising not over
75%" on the first page.  The entire weight of the copy must be entered on the
mailing statement in the column provided for the advertising portion.  The
words "Over 75%" or "Not over 75%," whichever is applicable, must be entered
on the mailing statement.  The word "Waived" must be written in the space
provided for the weight of the reading portion on the mailing statement.  This
option does not apply if the advertising rate is lower than the rate for
nonadvertising.

463.34 How To Determine Combined Weight During a Calendar Month.
(See Exhibit 463.34.)  The combined weight of one copy from each
issue mailed during a calendar month must include the wrapping and binding
materials and may be obtained by the publisher as follows:

a.
Determine the average weight of one copy of one issue (see
463.231).

b.
Divide the average weight of the copy by the number of sheets in the copy
to determine the average weight of one sheet.  Express the result in decimal
pounds rounded off, if necessary, to six decimal places (see 463.21).

c.
Select one copy of each of the issues mailed during the month and count the
sheets in all the selected copies to determine the total number of sheets in
the selected copies.

d.
Multiply the total number of sheets in the selected copies by the weight of
one sheet; do not round the product (see Exhibit 463.34).

EXHIBIT 463.34 DETERMINING COMBINED WEIGHT OF ONE COPY


HOW TO DETERMINE

COMBINED WEIGHT OF ONE COPY FROM EACH ISSUE MAILED DURING A CALENDAR MONTH

AND THE WEIGHT OF ONE SHEET

The combined weight of one copy from each issue mailed during a
calendar month must include the wrapping and binding materials and may be
obtained by the publisher as follows:

a.Select a reasonable number of copies so they can be expected to
represent the average of those mailed.  Wrap and bundle them in
bundles equal to the average size of the bundles mailed.  Include
individually wrapped copies as well, in proportion to their presence
in the mailing.

b.Count and weigh the copies selected.

c.Divide the bulk weight of the test copies by the number of test copies
to obtain the average weight per copy in pounds.  Express the result
in decimal pounds rounded off, if necessary, to 6 decimal places.

EXAMPLE:

1.Consider 8,200 copies of one issue, chargeable at the pound rates:
approximately 60% appears to be individually wrapped while the rest
(40%) is wrapped in bundles.

2.Take a representative number of copies (about 1%), with wrapping and
bundling materials, in the proportion approximated above.  This would
equal 50 individually wrapped copies and 32 copies wrapped in bundles
(for a total of 82).

3.Weigh the 82 copies with wrapping and binding material required for
all.  Let's say the weight found is 15.9375 pounds.

4.Divide 15.9375 pounds by 82 to determine the average weight per copy
in pounds; carry the result to 7 decimal places and round off to 6 as
prescribed in 463.21.

Example:  15.9375 / 82 = 0.194360 pound

5.Divide the average weight of one copy by the number of sheets (not
pages) in the copy.  Express the result in decimal pounds rounded off,
if necessary, to 6 decimal places.  For example, if the copy contains
six sheets and weighs 0.194360 pound:

0.194360 / 6 = 0.032393 pound per sheet

6.Take one copy of each of the issues mailed during the month and count
the sheets in all such copies to determine the total number of sheets
in such copies.  Let's say there were 26 issues; 12 issues contained 6
sheets, and 14 issues contained 4 sheets, for a total of 128 sheets.

7.Multiply the total number of sheets in the selected copies by the
weight of one sheet; do not round the product.

0.032393weight of one sheet
    x128total number of sheets
4.146304pounds for the combined weight of one copy of each issue
mailed during a calendar month

Exhibit 463.34, Determining Combined Weight of One Copy From Each
Issue Mailed During a Calendar Month, and the Weight of One Sheet]




463.35 Verification by Postmasters of Weights and Number of Copies.
The average weight per copy obtained by the publisher in the manner
prescribed in 463.24 for use either in computing postage on the bulk
weight of a single issue, or in determining the weight of one sheet as
provided for by 463.34, is verified by the postmaster by weighing,
or by supervising the weighing of, a representative number of copies of the
issue.  If the average weight per copy is used for determining the weight of
one sheet, the postmaster must also verify the computation by which the
publisher determines the weight of one sheet.  At the end of each calendar
month, when postage is computed on the total bulk weight of all issues mailed
during the month, the postmaster must verify the combined weight of one copy
from each issue by counting the sheets in the copies filed under the
provisions of 461.2 and multiplying the total by the previously
verified weight of one sheet furnished by the publisher on the applicable
mailing statement.  If there is reason at any time to doubt the accuracy of
the information reported on the forms, sufficient weighings must be made to
resolve the doubt.  The postmaster must keep a record of the verification,
preferably attached to the applicable mailing statement.

463.36 Computation of Postage by Post Office.
Postage computations, made by the postmaster, are based on the combined
weight of one copy of each issue mailed during a calendar month.  This
combined weight includes the wrapping and binding materials, and must be
obtained as follows:

a.
The postmaster at the office of mailing selects one issue during the month
for testing and verification purposes.

b.
The average weight per copy of the selected issue is determined by the
method shown in 463.24.

c.
The weight of one sheet is determined by dividing the average weight per
copy by the number of sheets of the selected issue.  Express the result in
decimal pounds rounded off, if necessary, to six decimal places (see
Exhibit 463.34).

d.
The total number of sheets is obtained by counting the sheets in each
selected copy of each issue mailed during the month.

e.
The combined weight of one copy from each issue mailed during the month is
determined by multiplying the total number of sheets in the selected copies by
the weight of one sheet (see Exhibit 463.34).  Do not round the
product.  This result, or amount, is entered on Form 3541-R and/or Form 3541-N.

463.4 Key Rate

463.41 Definition.
The "key rate" is a simplified method of computing postage for publications
subject to the advertising zone rates.  It may be used where the circulation
by zones is consistently stable and when large-volume mailings justify its use.


463.42 Authority to Use.
Postmasters may authorize publishers to use the key-rate method of
computing pound-rate postage when large mailings justify its use.  The
provisions of 464.4 do not apply to publications authorized to be
mailed under the Centralized Postage Payment System.

463.43 Statements of Distribution

463.431 Semiannual Statements.
The publisher must submit twice each calendar year, at 6-month intervals,
the applicable mailing statement, showing the number of subscribers' copies
and requesters'copies, if appropriate, of an issue mailed to each zone.

463.432 Other Statements.
The publisher must submit the applicable mailing statement, showing the
mailings to each zone at any time during the 6-month intervals when the volume
of mailings to the zones varies, when there is an increase in the total number
of copies, or when there is a postage rate change.  When the Form 3541-R or
Form 3541-N is filed because of a rate change, the semiannual statement need
not be filed until 6 months after the filing of the rate change statement.

463.433 Between Statements.
During the 6-month period or other intervals, the publisher need not
complete the lines for zones 1 to 8 on the applicable mailing statement.  The
publisher must enter only total zone mailings on the "Total Copies" lines.

463.44 Computation

463.441 When to Compute.
A new key rate must be computed by the postmaster and used whenever a Form
3541-R or Form 3541-N is submitted in accordance with 463.43.

463.442 How to Compute.
Enter the number of copies for each zone on the applicable lines of the
mailing statement.  Apply the appropriate pound rates to the number of copies
for each zone and enter the postage.  Add the postage for all zones; add the
number of copies for all zones.  Divide the total postage by the total copies
to determine the key rate; express the result in decimal dollars rounded off,
if necessary, to 6 decimal places.  Round any intermediate postage figures as
provided in 463.252.  Apply the key rate to only the total weight of
the advertising portion, and apply the nonadvertising rate to the total weight
of the nonadvertising portion.  Computation of the key rate must be verified
by an employee or supervisor other than the person by whom it was originally
computed.

463.443 Computation for Sample Copies.
Where a key rate has been developed and is being used to compute postage
for subscribers' copies, postage on sample copies is determined by using the
same key rate, if sample copies were included when the key rate was computed.

463.5 News Agent's Mailing Statement.
A news agent presenting second-class matter subject to the zone rates of
postage must submit a statement showing the percentages of such matter devoted
to advertising and nonadvertising.  Publishers should furnish this information
to news agents who purchase copies of their publications so such agents may
prepare the required statements.

464  Centralized Postage Payment (CPP) System

464.1  Description.
The CPP System allows the publisher of an authorized second-class
publication who enters mail at at least three entry post offices (EPOs) to pay
postage at a single facility designated by the Postal Service for the CPP
System, the designated post office (DPO), instead of paying postage at each
EPO, if the publisher meets the conditions of eligibility in 464.2
and is authorized to mail under the CPP System pursuant to 464.3 and
464.4.  Publication 406, Centralized Postage Payment (CPP)
System, Second-Class Publications, contains detailed information for
publishers on how to apply for authorization and how to mail under the CPP
System.  The material in Publication 406 is subordinate to these regulations
and does not replace the CPP System requirements set forth here and elsewhere
in the DMM.  The Postal Service's administrative procedures for the CPP System
are to be included in Handbook DM-107, Mailing Systems, Chapter 4,
Centralized Postage Payment (CPP) - Second-Class Publications.

464.2  Conditions for Authorization.
A publisher may be authorized to mail a second-class publication under the
CPP System when all the following conditions are met:

a.  Application.
The publisher must submit a completed Form 3542 to the general manager of
the rates and classification center (RCC) serving the publication's original
entry post office (see 132).  An application is included in
Publication 406.

b.  Authorization at Entry Post Offices.
The publisher must be authorized to enter mail for a publication at three
or more post offices and must mail from at least three of those authorized
entry post offices.

c.  Location of Printer/Mailer's Plant.
The printer/mailer's plant(s) where the publication is prepared for mailing
must be located within the geographical boundaries of the United States, its
territories and possessions, because it must be served by a Postal Service
detached mail unit (DMU).

d.  Mailing Under the CPP System.
Postage for all copies of an authorized CPP publication that are entered
into the mail at the second-class rates of postage and reported on Form 3541-R
and/or Form 3541-N must be paid under the CPP system.

e.  Parallel Run.
The publisher must demonstrate the ability to meet all requirements for the
CPP System by successfully completing a parallel run of the CPP System
procedures and standard second-class postage payment procedures at entry post
offices.

f.  Advance Deposit Account.
The publisher must deposit and maintain sufficient funds in the appropriate
advance deposit account at the DPO in accordance with the approved single or
multiple payment per issue schedule.  No mailings may be released for dispatch
by the DMU in the mailing plant if the postage required under the payment
schedule has not been deposited in the account.


g.  Computerized Mailing Statements.
The publisher must be able to produce computerized individual mailing
statements for each edition mailed at each EPO, a Summary of Mailing
Statements which summarizes the postage computations from all individual
mailing statements, an itemized Register of Mailing Statements which lists
each individual mailing statement, and other documentation required by this
manual and the publisher's CPP System agreement.

h.  Compliance with Applicable Requirements for CPP System.
The publisher must continue to meet all eligibility, preparation, and
reporting requirements to qualify to mail at the second-class rates under the
CPP System.  Failure to do so results in revocation of the authority to mail
under the CPP System, pursuant to 464.5.

i.  Filing of Forms 3510.
When the DPO is not the office of original entry, the publisher must submit
copies of any Forms 3510 for changes in the conditions of entry, concurrently
to the original entry post office and the DPO.  The publisher must file Forms
3510 at least 40 days prior to the effective date of any changes in the
conditions of entry, and meet the requirements in 426.

464.3  Application/Authorization Process

464.31  Applications.
The publisher must submit Form 3542 to the general manager of the RCC
serving the publication's original entry post office (see 132).  An
application is included in Publication 406.

464.32  Supporting Documentation.
The publisher must submit the following documentation simultaneously with
the completed Form 3542:

a.
A completed Form 2872 for each printer/mailer location; and

b.
Samples of computer-generated individual mailing statements as well as
computer-generated summary of mailing statements and register of mailing
statements for a previous issue of the publication.

464.4  Approving or Denying Applications

464.41  Responsibility.
The general manager, RCC, must approve or deny an application to mail under
the CPP System.

464.42  Approval

464.421  General.
When all eligibility conditions are met, the general manager, RCC, must
provide the publisher with a letter of authorization and a CPP System
agreement which the publisher must sign prior to implementation of the CPP
System.  The authorization specifies the mailing date of the first issue that
may be mailed under the CPP System.


464.422  Notification of Printing/Mailing and Fulfillment House Facilities.
It is the publisher's responsibility to notify all printing/mailing and
fulfillment house facilities that the application has been approved and to
advise them of their responsibilities under the CPP system.

464.423  Notification of Entry Post Offices (EPOs).
When an application is approved, the RCC must notify EPOs of the date of
the last issue of the publication to be posted to the publisher's advance
deposit account.  After the mailing statements for that issue have been posted
to the publisher's advance deposit account, each EPO must prepare and mail the
publisher a refund of the balance in the advance deposit account for the
authorized CPP publication.

464.43  Denial.
If a decision is made to deny the application, the general manager, RCC,
must notify the publisher, in writing, of the decision.  The denial becomes
final 15 days from receipt of the notice by the publisher unless the publisher
files a written appeal within that time, which explains why the publisher
believes the application should be approved, with the general manager, RCC,
who forwards the appeal to the Director, Office of Classification and Rates
Administration, USPS Headquarters.  The Director must notify the publisher, in
writing, of the decision on appeal.

464.5  Revocation.
If a publisher fails to meet the CPP System requirements, the general
manager, RCC, serving the original entry post office must notify the publisher
and provide a time frame for the publisher to correct the discrepancies.  If
the publisher is unable to correct the discrepancies within the time frame
allowed, the general manager, RCC, must notify the publisher, in writing, that
the publisher's authorization to mail under the CPP System is revoked.  The
revocation becomes final 15 days from the date of receipt of the notice by the
publisher, unless the publisher files a written appeal within that time, which
explains why the publisher believes the CPP System authorization should not be
revoked, with the general manager, RCC.  If evidence provided by the publisher
indicates that the authorization should be continued, the general manager
cancels the revocation.  If the general manager does not find that the
evidence is sufficient to reverse the decision to revoke the authorization,
the appeal is forwarded to the Director, Office of Classification and Rates
Administration, USPS Headquarters.  The publisher may continue to pay postage
on accepted mailings under the CPP System while an appeal is pending.  The
Director must notify the publisher, in writing, of the decision on appeal.


465 Plant-Verified Drop Shipment Postage Payment System

465.1 General

465.11 Definition.
The plant-verified drop shipment postage payment system allows greater
postal efficiency associated with origin verification and postage payment for
shipments transported by a mailer from the mailer's plant, where they are
prepared, to destination post offices, where they are accepted as mailings
into the postal processing mailstream.  The mailings may be prepared for
deposit at SCF or delivery office zone rates, or they may be claimed at any
zone rates from the office of deposit.  Second-class plant-verified drop
shipments must be deposited at authorized original or additional entry post
offices (see 424.42) except when they are transported to the
destination post offices using Express Mail or Priority Mail Drop Shipment
(see 136.7 and 136.9).  Approval for use of a
plant-verified drop shipment postage payment system is granted under the
conditions in 465.2.

465.12  System Elements.
Under this system

a.
the mailer's product is verified for proper classification, rate
eligibility, preparation, and presort by postal personnel assigned to a
detached mail unit (DMU) located at a mailer's plant or at the bulk mail
acceptance unit (BMAU) at the origin post office serving the mailer's plant
(or another post office designated by the field division general
manager/postmaster);

b.
the mailer must obtain and maintain an original or additional entry at each
post office where second-class mail is to be deposited and accepted (original
or additional entry is not required at the post office serving the mailer's
plant unless copies are deposited and accepted at that post office);

c.
postage is prepaid at the post office serving the mailer's location (see
424.4);

d.
the shipment is released for transportation to destination postal
facilities at the mailer's expense on the mailer's vehicle or on
transportation procured by the mailer;

e.
the shipment is deposited at the destination postal facility by the mailer
or the mailer's agent;

f.
the shipment is verified and accepted as mail by postal personnel at the
destination postal facility and released for processing.

465.13 Participation.
The plant-verified drop shipment postage payment system may be used only by
mailers who have been authorized by the field division general
manager/postmaster in whose service area the mailer is located (see
465.3).

465.14 Other Mailings.
Other destination entry mailings that are not verified at the origin plant
under a plant-verified drop shipment postage payment system must be verified,
accepted, and paid for at the destination post office.

465.15  Date on Mailing Statements and Forms 8125.
The date shown by the mailer and the post office round stamp date shown on
a mailing statement and Form 8125 prepared in conjunction with a
plant-verified drop shipment mailing do not necessarily represent the date
that the drop shipment is accepted into the postal processing mailstream as
mail.  The mailing statement may be submitted before or at the time a shipment
is presented to the origin post office DMU or BMAU for verification and
clearance for dispatch, and the date shown in the mailer portion on the
mailing statement represents the date the mailing statement is presented to
the origin office.  The post office round stamp date on the mailing statement
and the Form 8125 represents the date that the origin post office DMU or BMAU
verified the shipment and cleared it for dispatch by the mailer to the
destination entry post office.

465.2 Program Participation Criteria for Mailers

465.21 Request for Participation.
The mailer must submit an application for participation in the
plant-verified drop shipment postage payment system as prescribed in
465.3.

465.22 Facilities for Postal Personnel for DMU Verification.
When mail is to be verified and cleared for dispatch by postal personnel
staffing a detached mail unit (DMU) at a mailer's plant under a plant-verified
drop shipment agreement (see 465.3), the mailer must provide an
enclosed work area for the DMU that can be locked, has a telephone, is
separate from the mailer's activities, and provides a safe working
environment.  Facilities are determined to be necessary and approved for
operation by the Postal Service.

465.23 Verification at Origin Post Office.
When mail is to be verified and cleared for dispatch by postal personnel at
the BMAU at the origin post office serving the mailer's plant (or another
postal facility designated by the division general manager/postmaster) under a
plant-verified drop shipment agreement (see 465.3), the mailer is
responsible for transporting all mailings to the post office, unloading the
mailings for verification, and reloading the mailings that have been cleared
for dispatch onto the mailer's transportation for shipment to the destination
entry post offices.

465.24 Postage Payment.
The mailer must pay postage for plant-verified drop shipments at either the
post office serving the mailer's plant where mailings were verified or the
post office that performs BMAU verification of mailings, as designated by the
division.  The mailer must ensure that sufficient funds are on deposit in the
appropriate advance deposit accounts to pay for all plant-verified drop
shipments prior to their release for dispatch.  (Mailers authorized to mail
under a CPP system must pay postage for drop shipment mailings to the New York
Rates and Classification Center in accordance with 464.)

465.25 Authorized Entry.
The mailer must be authorized second-class entry at each post office where
mail is to be deposited and accepted under an authorized plant-verified drop
shipment postage payment system (see 424.42 and 424.92).
An authorized entry is not required at the post office serving the mailer's
plant unless copies are deposited and accepted at that post office.

465.26 Documentation

a.
The mailer must produce an individual mailing statement for each edition of
each issue of each publication prepared for deposit at each destination entry
post office.  The mailer must submit this statement when the corresponding
copies are presented to the DMU.

b.
When required by the Postal Service, the mailer must submit consolidated
mailing statements and a register of mailing statements to the Postal Service.

c.
The mailer must submit to the DMU a completed Form 8125 for each shipment
that is deposited at a destination entry post office.  A Form 8125, signed and
dated by the DMU, must accompany each plant-verified drop shipment to the
destination post office where the shipment is deposited.  The mailer may
submit computer-generated facsimile Forms 8125, approved by the origin post
office and containing all the information on the Postal Service Form 8125 in
the same relative location.  Form 8125 must be presented in duplicate.  Form
8125 must be submitted in triplicate if the mailer wishes to have a signed and
dated copy returned to its representative when depositing the mail at the
destination entry postal facility.  Form 8125 is not required to accompany
second-class plant-verified drop shipments transported to the destination post
office via Express Mail or Priority Mail drop shipment.

465.27 Transportation

465.271 Responsibility.
The mailer is responsible for the transportation of plant-verified drop
shipments from the origin plant to the destination postal facility.  The
mailer may use any means of transportation, including Express Mail or Priority
Mail drop shipment, to transport shipments to destination post offices.

465.272 Other Mailings.
The mailer must not transport plant-verified drop shipment mailings on the
same vehicle with other shipments that are not entered as plant-verified drop
shipments.

465.273 Separation of Mailings.
When a vehicle contains more than one plant-verified drop shipment for a
single destination postal facility, the shipments must be separated so that
each shipment can be reconciled against the accompanying Form 8125.  If a
shipment on a vehicle includes both delivery office rate mail and SCF zone
rate mail to be deposited at a single destination entry post office, the mail
eligible for the delivery office rate must be physically separated from the
mail eligible for the SCF zone rate (see 424.453).  A single Form
8125 that clearly identifies all the mail for a single postal facility must be
prepared for a shipment consisting of copalletized or combined mailings.  When
a vehicle contains shipments to be deposited at multiple destination postal
facilities, the shipments must also be physically separated by destination to
identify each shipment.

465.274 Hazardous Freight.
Any material classified by the Postal Service as "hazardous" (see
124.3) may not be carried as freight on the same vehicle as a
plant-verified drop shipment.

465.28 Mailing Production Schedules.
Each Friday or on a schedule approved by the administering post office (the
post office performing DMU verification or BMAU verification), the mailer must
provide the post office verifying unit with a tentative schedule of
plant-verified drop shipments to be presented for verification and clearance
for dispatch during the next week.  Changes in this schedule must be provided
promptly to the post office as they become known.  When possible, notice
should be provided at least 24 hours in advance.

465.3 Authorization

465.31 Request

465.311 General.
The mailer must submit a written request to the mailer's local postmaster
seeking assignment of postal personnel to the mailer's plant (e.g.,
establishment of a DMU) or approval to bring mailings to the origin post
office serving the mailer's plant for verification of plant-verified drop
shipment destination entry mailings.  No form is provided for this purpose.  A
request for authorization must also be submitted by existing plant load
mailers to ensure that the current mailer facilities and DMU resources remain
adequate for verification of drop shipments.  The request must fully describe
the characteristics of the publications the mailer is to prepare as
plant-verified drop shipments.  A separate authorization is not required for
different publications to be mailed under the authorization, provided each
publication is listed in the plant-verified drop shipment agreement and the
original entry office for each publication is notified in accordance with
465.323.  The mailer must provide the post office that performs the
verifications, and to which postage is paid, with mailing production schedules
as required by 465.28.

465.312 Date of Filing.
The mailer must submit the request at least 30 days before the date
proposed for submission of the first plant-verified drop shipment using the
system.  Depending on the specific situation, the required 30-day advance
notice may be waived by the approving official (see 465.32).

465.313 Content.
The request must include a list of the publications to be prepared as
plant-verified drop shipments and the following information about each
publication:

a.
authorized frequency of issue of the publication and the schedule of
presentation for verification and dispatch (e.g., daily at noon, every other
Monday at 4 p.m., etc.);

b.
average number of mailed copies per issue and the number of mailing
statements to be presented to postal personnel for each issue as well as
information about the number of copies and mailing statements to be presented
for verification each day for issues that are dispatched over several days or
weeks;

c.
processing category;

d.
levels of sortation and rates claimed;

e.
the type and capacity of scales at the mailer's plant, if any;

f.
the space available for postal personnel to use and the suitability of that
space for verification of mail, recordkeeping, installation of computer
equipment, and monitoring of vehicle loading;

g.
the types of equipment used (trays, sacks, pallets, etc.) (authorizations
must be obtained where required); and

h.
authorized original and additional entry offices for each publication where
shipments are to be deposited, including proof of authorization (e.g., copies
of letters of authorization from RCCs).

465.314 Verification at Origin Postal Facility.
Origin BMAU verification may be approved in certain situations and
generally only for small mailers or temporarily for mailers who need to
acquire scales.  Authorization to verify mail at the origin post office may be
granted by the field division general manager/postmaster only if all the
following conditions are met:

a.
There is no detached mail unit (DMU) at the mailer's plant.

b.
The mailer is located within the service area of the post office where the
mail is to be verified and where postage is to be paid, except for situations
described in 465.314f.

c.
Each vehicle contains the mail of only one mailer and mailings are
physically separated.

d.
A completed original mailing statement accompanies each mailing.  Where a
single mailing is contained in more than one vehicle, a separate original
mailing statement must accompany each vehicle for the segment of the mailing
contained in each vehicle.

e.
The mail can be physically verified at the origin post office.  The mailing
may not be shrinkor stretch-wrapped or otherwise prepared so that a presort
and postage verification cannot be performed.

f.
The post office BMAU has sufficient space and staffing as well as
appropriate scales to support verification activities.  Scales to calculate
per-piece weights as well as gross mailing weights must be available, as
appropriate.  If the post office serving the mailer's plant does not have
sufficient space or staffing to support verification activities, the division
may designate another post office that does have sufficient staffing and space
as the post office to which the mailer must bring mailings for verification
and to which postage must be paid.

465.32 Approving or Denying Authorization

465.321 Local Post Office.
The local postmaster must review the application for completeness and
accuracy; must evaluate the mailer's ability to meet the requirements in
465.2, the suitability of the mailer's plant to accommodate postal
personnel (i.e., a DMU), and the capability of the local post office to
support the requested activity; and must prepare a written summary of the
results.  This report and a recommendation for approval or denial of the
mailer's request are forwarded through the MSC/division manager, mailing
requirements, to the field division general manager/postmaster.

465.322 Field Division.
The field division general manager/postmaster considers the postmaster's
report and recommendation, determines whether the local post office has
sufficient employees who are trained and qualified in mail classification and
verification to support the requested plant-verified drop shipment activity,
and prepares a final written decision on the mailer's request.

465.323 Approval.
If the mailer's request for participation in the plant-verified drop
shipment postage payment system is approved, the field division general
manager/postmaster must prepare a plant-verified drop shipment agreement that
must be signed by the general manager/postmaster, the mailer, and the
postmaster of the post office serving the mailer's plant before the approval
can be made effective.  The agreement must specify the terms and period of the
authorization (not to exceed 2 years).  Copies of the agreement must be
provided to the local postmaster, the MSC/division manager, mailing
requirements, and the rates and classification center.  The origin post office
that administers a plant-verified drop shipment postage payment system must
notify each original entry post office for the second-class publications
verified and paid for under the system that postage for the publications is
being paid for at that administering post office.

465.324 Denial.
If the mailer's request for participation in the plant-verified drop
shipment postage payment system is denied, the field division general
manager/postmaster must notify the mailer in writing, stating the reasons for
the decision, and provide copies of the decision to the local postmaster, the
MSC/division manager, mailing requirements, and the rates and classification
center.  The denial may be appealed as provided in 133.

465.33 Renewal, Termination, and Revocation

465.331  Renewal.
The mailer must submit a new request for authorization at least 30 days
prior to the expiration of a plant-verified drop shipment agreement.  The
content of the request, and the procedures for its review, approval, or denial
are as prescribed in 465.31 and 465.32.

465.332 Termination.
A mailer may elect to terminate participation in a plant-verified drop
shipment agreement by 10 calendar days' written notice to the authorizing
field division general manager/postmaster.

465.333 Revocation.
A plant-verified drop shipment agreement may be revoked by the authorizing
field division general manager/postmaster by 10 calendar days' written notice
to the mailer.  Revocation must be based on the mailer's failure to pay
postage and fees or to meet the requirements that apply to plant-verified drop
shipment or mailing at second-class rates.  The revocation action may be
appealed as provided in 133.  The origin post office that verified
plant-verified drop shipment postage payment system mailings and collected
postage for such mailings must notify each original entry post office for the
second-class publications that were verified and paid for under the system
that the agreement has been revoked or terminated and that postage for the
publications is no longer being paid at that post office.

465.34 Modification of Agreement.
A mailer may request that a plant-verified drop shipment postage payment
system agreement be modified to include verification and postage payment for
additional publications not included in the original application and
agreement.  A new application and agreement are not required for each new
publication produced at a single origin mailing plant.  Information about the
new mailings, as specified by 465.313a through 465.313d,
must be provided by the mailer to the origin post office at least 30 days
before the date proposed for submission for verification of the additional
plant-verified drop shipments.  Depending on the specific situation, the
required 30-day advance notice may be waived by the approving official (see
465.32).  The origin post office submits the request for
modification of the plant-verified drop shipment agreement to the field
division general manager/postmaster for approval in accordance with the
procedures in 465.32.

465.4 DMU Functions

465.41 General.
Assignment of postal personnel to the mailer's plant to process
plant-verified drop shipments may be in conjunction with the DMU staffing
associated with a plant load authorization for that mailer's plant, but may be
provided to a mailer's plant that is not authorized plant load, at the
discretion of the division general manager/postmaster.

465.42 Inspection of Mailpieces.
Postal personnel assigned to the mailer's plant must verify drop shipment
mailings for classification, rate eligibility, preparation, presort, and
postage in the same manner as plant load mailings.

465.43 Documents

465.431 Preparation.
The mailer must submit to the DMU a Form 8125 with Part A completed for
each shipment to each destination entry postal facility.  After verifying the
shipment and before releasing each plant-verified drop shipment for dispatch,
postal personnel must ensure that Form 8125 is properly completed, signed, and
dated.  The DMU retains one copy of each completed Form 8125 and returns the
other two signed and dated copies to the mailer.  These other copies travel
with the shipments to the destination postal facilities.

465.432 Enclosure.
Postal personnel must ensure that the completed, signed, and dated Forms
8125 are provided to the mailer.  The mailer is responsible for placing the
forms in each vehicle to accompany the corresponding plant-verified drop
shipments to the destination post offices.  The completed Forms 8125 must be
placed on the left rear wall of the vehicle just inside the door of the
vehicle.

465.44 Loading.
Postal personnel must observe the loading of each vehicle used to transport
plant-verified drop shipments to ensure that the correct mailings are loaded
into vehicles for the correct destinations and that shipments are not
improperly commingled (see 465.274).

465.5 Destination Postal Facility Functions

465.51 Verification of Documents.
The mail described in Part 1 on Form 8125 must match the containers or load
deposited.  If these items match, the destination postal facility signs and
dates Form 8125 accompanying the mailings and processes the mail.  Forms 8125
must be retained by the destination postal facility for 1 year in a
chronological file.  If two copies of the form are submitted to the
destination office, a signed and dated copy is returned to the mailer's
employee or agent (see 465.26c).

465.52 Verification of Contents.
Each destination postal facility where plant-verified drop shipments are
deposited must ensure that only the appropriate shipments are unloaded and
accepted.

465.53 Loading of Mail Prohibited.
Postal Service mail for downstream postal facilities must not be loaded
onto the mailer's vehicle by any intermediate postal facility at which the
mailer has stopped to deposit a plant-verified drop shipment.

465.6 Liability.
The mailer assumes all liability and responsibility for any loss or damage
to plant-verified drop shipments before they are deposited and accepted as
mail at destination entry postal facilities, regardless of whether a third
party is used to transport those shipments.  The Postal Service is not liable
or responsible for any loss or damage to plant-verified drop shipments before
they are deposited and accepted as mail at a destination postal facility.

465.7 Postage

465.71 Method of Payment.
Postage for a plant-verified drop shipment must be paid as provided in
465.24.

465.72 Computation.
Postage for second-class mailings prepared as plant-verified drop shipments
is calculated (zoned) from the destination postal facility where mailings are
deposited and accepted into the mailstream.  Postage for second-class
plant-verified drop shipment mailings transported to the destination entry
post offices enclosed in Express Mail or Priority Mail drop shipments is
calculated (zoned) from the postal facility where the Express Mail or Priority
Mail shipment destinates.

465.73 Refunds.
The Postal Service does not refund postage for any failure to provide
service that is caused in whole or in part by any event that occurs before the
shipment is deposited and accepted into the mailstream and becomes mail at a
destination postal facility, except in accordance with the provisions of
147.2.

470 Ancillary Services

471 Forwarding
When there has been a change of address, copies of second-class
publications bearing the old address are delivered to the new address, without
charge, for 60 days from the effective date of the recipient's
change-of-address order.  This procedure must be followed whether or not the
copies bear the sender's request for return.  Form 3576 is available to the
addressee.  No forwarding postage is charged on second-class mail during the
60-day period.

472 Address Correction Service

472.1 Notifying Publishers.
The addressee's new address, or the reason why a second-class publication
is undeliverable if the new address is not known, is furnished to the
publishers by the Postal Service.  Temporary changes of address are not
provided.  This service is mandatory for all second-class publications, and
the address-correction service fee must be paid for each notice issued.

472.2 Sending Notification.
Address correction service (including address-change service) is provided
for the first issue after 60 days for all publications, unless copies are to
be returned under 473.  Address-change service participants may
receive the change notice prior to day 60, if so requested.  The new address
of the recipient or the reason for nondelivery must be provided.  Copies
received after the address correction notice is mailed are disposed of by the
Postal Service.  When copies of the publication cannot be forwarded, the
address-correction notice is prepared for the first undeliverable issue of the
publication received.  Forms 3579 are mailed to publishers at a minimum of
once per week.  Publications bearing an exceptional form of address (see
122.422) are delivered to the address whenever possible; they are
not forwarded.  A notice giving the reason for nondelivery is provided to the
publisher only when the copy cannot be delivered to the current address (see
the note to Exhibit 159.14).

472.3 Address Change Service (ACS)

a.
ACS is designed to centralize, automate, and improve the processing of
address correction requests for mailers.  The ACS process involves the
transmission of address correction information to a central point where the
changes are consolidated onto a magnetic tape filed by publication identifier.
 These records are sequentially organized by USPS assigned publication codes
and distributed to each participating publication.
Label formats are found in 441.232.

b.
ACS is available to publishers of second-class mailable matter who maintain
their address records on computers.  For further information, write to Address
Change Service, Address Information Center, U.S. Postal Service (for address,
see Address List in Appendices).

473 Return
The publisher may request that copies of second-class publications which
are undelivered be returned, if the publisher guarantees to pay the return
postage.  To receive this service, the endorsement "Return Postage Guaranteed"
must be printed on the envelopes or wrappers, or on one of the outside covers
of unwrapped copies, immediately preceded by the sender's name and address,
including either the ZIP+4 or the 5-digit ZIP Code.  The per-piece rate
charged for return is the single-piece thirdor fourth-class rate.  When the
address correction is provided incidental to the return of the piece, there is
no charge for the correction.

474 Refunds for Duplicate Notices
Publishers of second-class publications may request a refund of the fees
paid for duplicate address-correction notices on Forms 3579 furnished by the
Postal Service provided that the customer submitted a change-of-address order
and

a.
both the first and duplicate magnetic tape notices are furnished via the
address change service (ACS), or

b.
both the first and duplicate notices are hard copy furnished via a
computerized forwarding system/centralized markup unit (CFS/CMU).  In order to
be eligible for a refund of the fees, publishers must submit documentation
that substantiates the number of duplicate notices received.

Note:  No refunds are made (a) if the customer has not submitted a
change-of-address order, (b) if the original and duplicate notices are not
both furnished by ACS or not both furnished by CFS/CMU, and (c) if the
publisher does not submit documentation sufficient to substantiate the amount
of the refund.

475 Mixed Classes

a.
Undeliverable second-class mail with a nonincidental First-Class attachment
or enclosure prepared according to 429.18 or 429.24 must be
returned at the single-piece thirdor fourth-class rate.  The weight of the
First-Class attachment or enclosure is not included when computing the charges
for return of the mailpiece.

b.
Undeliverable second-class mail with incidental First-Class attachments or
enclosures prepared according to 429.17 or 429.23 must be
disposed of in accordance with 159.4, unless endorsed "Return
Postage Guaranteed."

