The following announcements, reminders, and revisions to the Domestic Mail Manual will be incorporated into the printed version of DMM 58 and into the monthly update of the online DMM available via Postal Explorer at http://pe.usps.gov.

DMM Revision - New 5-Digit Minimum for Standard Mail Flats

Effective September 5, 2002, portions of DMM Module M are revised to allow mailers to select a number from 10 to 17 as the minimum number of pieces at which 5-digit packages are prepared in a Standard Mail job of flat-size pieces (DMM C050.3.0) that are not more than ¾-inch thick. Currently mailers must prepare 5-digit packages whenever there are 10 or more pieces to a 5-digit ZIP Code destination. Anyone wanting to prepare 10-piece packages could continue to do so.

Under these new standards, mailers can select a minimum number of pieces greater than 10 at which 5-digit packages of automation rate and Presorted rate Standard Mail flat-size pieces not more than ¾-inch thick, including co-packaged pieces (DMM M950), are prepared within a mailing job. Mailers must use a consistent minimum for 5-digit packages throughout a mailing job. The minimum may not be set higher than 17 pieces, which means that whenever there are 17 or more pieces to a 5-digit ZIP Code destination those pieces must be prepared in 5-digit packages.

The preparation standards for other package levels and for containers are unchanged and mailers must continue to prepare 3-digit and ADC packages whenever there are 10 or more pieces to those destinations. It is expected that pieces now prepared in 5-digit packages using the current 10-piece minimum will move either to an existing 3-digit package or be consolidated into fewer new 3-digit packages when a higher minimum of 11 to 17 pieces is selected. In either case, the overall number of packages prepared by mailers and processed by the Postal Service should decrease. For example, a 4-ounce catalog prepared in four 5-digit packages for the same 3-digit destination that each contain 10 pieces could be combined in one new 3-digit package (that weighs less than 20 pounds) under the new standards if the minimum 5-digit package size is set at 17.

Any movement of pieces from 5-digit packages to 3-digit packages that results from this new option will not impact postage paid by mailers or Postal Service revenues because Standard Mail flats are eligible for the 3/5 presort rates whether prepared in 5-digit or 3-digit packages. Pieces moving from small 5-digit packages to larger 3-digit packages would not be subject to any additional postage, and mailers are encouraged to set their 5-digit package minimum at 17 pieces to prepare fewer packages. However, anyone wanting to use the current 10-piece package minimum, or to set the minimum between 10 and 17, could do so.

Mailers are reminded that the 3/5 Presorted rate for Standard Mail flats is applicable to 5-digit or 3-digit packages prepared in 5-digit or 3-digit sacks containing a minimum of 125 pieces or 15 pounds of pieces or placed on any level pallet. Automation rates are always based on the package presort level, and the 3/5 automation rate applies to any pieces in 5-digit and 3-digit packages.

It is possible that the selection of a higher 5-digit package minimum may improve the presort level of some pieces that would otherwise fall to a lower package level after all 5-digit packages are prepared. For example, after all 5-digit packages are prepared using the current 10-piece package minimum, less than 10 pieces may remain for the 3-digit destination and the remaining pieces would be prepared in an ADC or mixed ADC package and be subject to the basic rate. When combined with pieces from one or more small 5-digit packages to the same 3-digit destination, these pieces could move to a 3-digit package and be subject to the 3/5 rates.

It is expected that this optional change should help to reduce overall Postal Service processing costs as well as mailer production costs and that it should not have a negative impact on service for pieces that move from 5-digit to 3-digit packages. It is also expected that the net gain from reduced package handlings using a minimum higher than 10 pieces for 5-digit packages will be greatest for pieces that weigh 6 ounces or less, and somewhat less for heavier pieces. This is because fewer 3-digit packages will be created when lighter-weight pieces from multiple 5-digit packages are merged at the 3-digit level. For this reason, it is suggested that mailers use a 5-digit package minimum somewhat lower than 17 pieces (i.e., 15 pieces) for mailings of pieces weighing over 6 ounces (.375 lb.).

In order to reduce the overall number of Postal Service package handlings and the costs associated with unnecessary additional handlings, mailers are encouraged to create packages as large as possible (e.g., up to 20 pounds) within applicable packaging standards related to package integrity. As with any change of this type, the impact on specific mailings will vary based on mail characteristics such as piece weight and presort density.

The expected benefits of this change are based, in large part, on productivities and piece processing efficiencies of the AFSM 100, which can process pieces up to ¾-inch thick. Pieces greater than ¾-inch thick may be processed on the FSM 1000, on the small parcel and bundle sorter (SPBS), or manually, all at lower productivities than if processed on the AFSM 100. Furthermore, very little incoming secondary processing of pieces to carrier routes occurs on FSM 1000s, and it is more desirable to have mail prepared in 5-digit packages that can be sent directly to the delivery office for distribution to carrier routes. For this reason, the optional higher minimums are limited to flat-size pieces likely to receive AFSM 100 processing and mailers must continue to use the current 10-piece minimum when preparing 5-digit packages of automation rate flat-size pieces greater than ¾-inch thick.

Although mailers who want to select a higher 5-digit package minimum than 10 pieces will not be required to use Presort Accuracy Validation and Evaluation (PAVE)-certified software, PAVE tests are available for presort software vendors who will support this option.

The Postal Service is interested in receiving feedback about the volume shift in specific mailings from mailers who change their minimum package size. The following information may be sent to Cheryl Beller, Product Redesign, US Postal Service, Room 4039, 1735 N Lynn St, Arlington, VA 22209-6360 (email address: cbeller1@email.usps.gov): total number of pieces in mailing; mailpiece weight; number of pieces prepared in 5-digit packages and the number of 5-digit packages; number of pieces prepared in 3-digit packages and the number of 3-digit packages; and the maximum package parameter (weight or number of pieces). If the maximum package size setting reflects a total package weight lower than 20 pounds, please indicate the maximum package height that correlates to the maximum package size. The number of pieces and number of packages (5-digit and 3-digit) should be shown using both the current 10-piece minimum and the new minimum selected for presort (from 11 to 17).

— Product Redesign

DMM Revision - Refunds and Exchanges for Metered Postage

Effective July 11, 2002, DMM P014, Refunds and Exchanges, is revised to clarify the refund policy for unused postage evidencing system indicia on mailpieces or labels. Changes are as follows:

• Acceptable documentation to prove that the person or entity submitting the refund request is the licensee for the system includes a copy of the lease, rental agreement, or contract.
• When metered postage has been affixed to a mailpiece, the customer must submit the entire envelope or wrapper on which the meter stamp is printed or a label bearing a meter stamp is attached, with the refund request.
• When customers submit loose indicia that are not affixed to a mailpiece for refund, the indicia must not be stapled together or attached to any paper or other medium.
• When a request for a refund is denied, the manager of Postage Technology Management will process an appeal only if the meter indicia contain a date and the original meter indicia are submitted with the appeal, and the appeal is submitted within 30 days of the original decision. The customer must process any appeal of a decision on metered postage lacking a date through the postmaster to the rates and classification service center (RCSC).

In addition, we deleted text that duplicated policies stated in P014.2.5, Refunds for Metered Postage. We also clarified and amended the procedures in P014.3.1, Unused Postage Value in Postage Evidencing Systems, for handling postage meters and postage evidencing systems that are withdrawn from service. The customer must process the return through their system provider.

When a system is damaged by fire, flood, or similar disaster, it may be missing and not available for return. In such cases, the licensee may be required to provide a statement on the cause of the damage and to attest that the lost postage has not been reimbursed by insurance, or otherwise, and that the licensee will not seek such reimbursement. As additional clarification, we added that the Postal Service will not refund the postage value remaining on a postage meter or postage evidencing system when the system is withdrawn for faulty operation caused by the customer.

— Postage Technology Management

DMM Revision - Palletized Automation Flats With Nonautomation Pieces

Effective August 8, 2002, DMM M610.1.4 and M620.1.3 are removed and DMM M820.1.7 is revised to eliminate the mandatory traying and other letter-size preparation requirements for nonautomation rate Standard Mail mailpieces in a mailing job that includes a palletized automation rate mailing of flat-size pieces when the nonautomation rate portion exceeds 10 percent of the mailing job. The dimensions of the pieces in such a mailing job meet the physical dimensions and characteristics of letter-size mail under DMM C050 and, at the same time, automation flat-size mail under DMM C820.

DMM M820.1.7 is also revised to extend this same preparation exception for palletized mail to Periodicals mailpieces that meet the physical dimensions and characteristics of both letter-size mail and automation flat-size mail. DMM M820.1.9 is revised to indicate that mail qualifying for the exception under DMM M820.1.7 is not required to be prepared under DMM M820.1.9.

The revision to this long-standing exception allows mailers to prepare Standard Mail or Periodicals mailings with one production process that generates a single mailstream of flats prepared on pallets. Prior to this revision, mailers exceeding the 10 percent maximum permitted for the nonautomation portion in such a mailing job had to use two production processes that resulted in two separate mailstreams — one consisting of packaged flat-size mail, the other consisting of trayed letter-size mail.

Qualified mailers, usually using PAVE-certified or MAC-certified software, may prefer the preparation standards in DMM M900 for creating merged pallets, and specifically DMM M950 for creating co-packaged pieces to achieve even greater production efficiencies. Mailers sacking such jobs must use DMM M910.

As a point of reference, Standard Mail jobs of Presorted and automation flat-size mailpieces reported on the same postage statement must be co-sacked under DMM M910 (see Postal Bulletin 22052, 6-14-01). For co-packaging, the Presorted pieces require 5-digit barcodes (see Postal Bulletin 22064, 11-29-01). Pieces without a 5-digit barcode must continue to be prepared as separate mailings, or they may be co-sacked under DMM M910. Co-sacking under this option does not require PAVE-certified or MAC-certified software.

— Mail Preparation and Standards

DMM Revision - Delivery Confirmation and Signature Confirmation Labels

Effective July 11, 2002, DMM S918 and S919 are revised to change the listing of available mail classes on front of PS Forms 152 and 153 in Exhibits 2.1a. Existing label stock will be depleted.

We are also changing DMM S918.4.0 and S918.5.0 to revise the title of PS Form 3152 to Confirmation Services Certification and to add new language for the preparation and submission of this form.

Mailers are no longer required to submit PS Form 3152 with each mailing presented at a business mail entry unit (BMEU) or detached mail unit (DMU) for which they want either Delivery Confirmation or Signature Confirmation services. PS Form 3152 must accompany the first Confirmation Services mailing presented by the mailer. The form must be retained in the BMEU/DMU as authorization for the mailer to use electronic Confirmation Services. The BMEU/DMU employee should note in the "Comments" section of the PERMIT system that the mailer has been approved for electronic Confirmation Services (the electronic confirmation services postage fees).

— Product Information Requirements

DMM Revision - Barcode Requirements for Delivery Confirmation and Signature Confirmation Services

Effective June 27, 2002, DMM C850 is revised to amend the barcode requirements for Delivery Confirmation and Signature Confirmation labels. The word "ZIP" must be added to these labels no later than December 31, 2002. "ZIP" is used as an internal identifier when the barcode is incorrect and must be marked out.

— Product Information Requirements