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 on the online DMM available via Postal Explorer at http://pe.usps.gov.

DMM Revisions - Products Mailable at Nonprofit Standard Mail Rates

Effective January 1, 2003, DMM E670.5.11 is revised to reflect an increase from $7.90 to $8.00 for low-cost products mailable at the Nonprofit Standard Mail rates. Under the statutory restrictions in DMM E670, products may not be mailed at the Nonprofit Standard Mail rates unless the products meet at least one of three exceptions. Under the Internal Revenue Code, a low-cost item is one of these exceptions.

The value of a low-cost item — the actual cost to the authorized nonprofit organization — is determined each year by the Internal Revenue Service, based on the cost of living. For 2003, the maximum limit for the value of a low-cost item has been adjusted to $8.00.

Address Change Service — New Ancillary Service Options for First-Class Mail and Priority Mail Items

Effective January 23, 2003, DMM F010, F030, and M013 are revised to expand and clarify the standards related to the use of Address Change Service (ACS). The standards in F010 are revised and expanded to provide ACS participant mailers with new options for obtaining address correction or reason for nondelivery notices in conjunction with First-Class Mail and Priority Mail service. A portion of the related standards in F030 and M013 are revised to clarify the conditions that apply to the use of ACS.

ACS is an automated electronic enhancement to the traditional manual method that centralizes, automates, and improves the process of providing address correction or reason for nondelivery notices to mailers. ACS is designed to reduce the volume of manual notifications provided for valid ACS pieces, but it does not completely eliminate manual notifications. ACS involves transmitting address correction information to a central point where the changes are consolidated electronically by unique publication or mailer identifier. The records are sequentially organized by codes assigned by the Postal Service. The identified records are then distributed using electronic media to each participating ACS mailer. The value of ACS is that it reduces costs for both mailers and the Postal Service.

To use ACS, a mailer must be assigned a unique ACS participant code by the Postal Service. Participating ACS mailers must keep their address records in an electronic format. Mailpieces must be marked with the ACS symbols required under M013, and also must bear a correct ancillary service endorsement under F010 to request address correction service.

For First-Class Mail and Priority Mail service, participating mailers can obtain ACS on valid pieces that display the ancillary service endorsement “Address Service Requested” or “Change Service Requested.” In response to mailer requests, the National Customer Support Center (NCSC) is expanding the types of service provided for “Address Service Requested” and “Change Service Requested” when these endorsements are used in conjunction with ACS on First-Class Mail and Priority Mail items.

The DMM revisions to F010 allow mailers to choose one of the following two options under which valid First-Class Mail and Priority Mail ACS pieces that bear the endorsement “Address Service Requested” will be processed:

Option 1 for “Address Service Requested” will continue to provide the same service already afforded to all pieces endorsed “Address Service Requested” (including ACS and non-ACS pieces). Mailers using Option 1 will continue to receive address correction and forwarding service during months 1 through 12 (if a change-of-address order is on file). In all other circumstances, unforwardable pieces will continue to be returned to the mailer with the new address or reason for nondelivery attached.

Option 2 for “Address Service Requested” is available for use only by authorized ACS mailers who select this option. This option will allow ACS mailers to continue to receive address correction notices for forwardable mailpieces, but also adds the ability to receive separate electronic address correction notices along with the manual return of pieces that cannot be forwarded. This allows the mailer to process address corrections in an established electronic environment. The Computerized Forwarding System (CFS) units will key the ACS data on the returned pieces, but Postal Service processing of the mail does not change. Under Option 2 for “Address Service Requested,” the ACS mailer will receive return-to-sender service for pieces that are not forwardable, and separate address correction notices will be provided subject to the appropriate fee.

For valid First-Class Mail or Priority Mail ACS pieces that bear the endorsement “Change Service Requested,” the DMM revision to F010 allows mailers to choose one of the following two options under which the pieces will be processed:

Option 1 for “Change Service Requested” is the same as the service already provided to ACS pieces endorsed “Change Service Requested.” Accordingly, ACS mailers selecting Option 1 will continue to be provided with address correction or reason for nondelivery notices, while the mailpieces continue to be disposed of by the Postal Service.

Option 2 for “Change Service Requested” will allow ACS mailers selecting this option to have valid ACS pieces forwarded during months 1 through 12 (if a change-of-address order is on file) rather than disposed of by the Postal Service. A separate address correction notice subject to the appropriate fee will also be issued when pieces are forwarded under this option.

Mailers using either “Address Service Requested” or “Change Service Requested” must not include the words “Option1” or “Option 2” as part of the endorsement on the mailpieces. NCSC will assist participating ACS mailers with selecting the option they desire. NCSC will ensure the mailer’s ACS participant code and selected option are identified within CFS programming for processing purposes. The service provided under the option selected will be provided to the participating mailer’s valid ACS pieces under the conditions that apply to ACS.

The DMM revisions to F030 and M013 simply clarify some of the information and conditions that apply to the use of ACS. For more information on ACS requirements, refer to Publication 8, Address Change Service.

Mailers should be aware that ACS is not a guaranteed service. As such, the Postal Service makes no assurance that any minimum percentage of a mailer’s address correction notifications will be provided electronically rather than manually. The costs for obtaining address correction or nondelivery information under ACS will continue to be $0.70 for each manual notice and $0.20 for each electronic notice provided.

Mailer Endorsement - USPS Action on UAA Pieces

“Address Service Requested
Option 1(1) If no change-of-address order on file: Piece returned with reason for nondelivery attached (no charge).

If change-of-address order on file: Months 1 through 12: piece forwarded (no charge); separate notice of new address provided (address correction fee charged).

Months 13 through 18: piece returned with new address attached (no charge).

After month 18: piece returned with reason for nondelivery attached (no charge).

Option 2(2) If no change-of-address order on file: Piece returned with reason for nondelivery attached (no charge); separate notice of reason for nondelivery provided
(address correction fee charged).

If change-of-address order on file: Months 1 through 12: piece forwarded (no charge); separate notice of new address provided (address correction fee charged).

Months 13 through 18: piece returned with new address attached (no charge); separate notice of new address provided (address correction fee charged).

After month 18: piece returned with reason for nondelivery attached (no charge); separate notice of reason for nondelivery provided (address correction fee charged).

“Change Service Requested”
Option 1(2) In all cases (regardless of whether a change-of-address order is on file): Separate notice of new address or reason for nondelivery provided (in either case, address correction fee charged); piece disposed of by USPS.

Option 2(2) If no change-of-address order on file: Piece disposed of by USPS; separate notice of reason for nondelivery provided (address correction fee charged).

If change-of-address order on file: Months 1 through 12: piece forwarded (no charge); separate notice of new address provided (address correction fee charged).

Months 13 through 18: piece disposed of by USPS; separate notice of new address provided (address correction fee charged).

After month 18: piece disposed of by USPS; separate notice of reason for nondelivery provided (address correction fee charged).

Restrictions (for Options 1 and 2): Delivery Confirmation and Signature Confirmation are the only special services permitted with this endorsement. See DMM F010.5.1e for other restrictions.

(1)Valid for all pieces, including Address Change Service (ACS) participating pieces subject to F030.
(2)Valid only for ACS participating pieces subject to F030.

Standard Mail Flats in Letter Trays — Double Rows Permitted

Effective February 6, 2003, DMM M033.2.2c is revised to extend the standard published in an article in Postal Bulletin 22089 (11-14-02, pages 35-40) titled “DMM Revision: Standard Mail Flats in Letter Trays” to the placement of smaller size pieces in two rows in a single tray, provided that the two rows run parallel to each other, with the address side of the pieces all faced toward the end (short dimension) of the tray and perpendicular to the entire length (long dimension) of the tray. This option is added in response to requests from the mailing industry to improve operational efficiencies and, in many cases, to optimize tray use by reducing the number of prepared trays.

Mailers placing flat-size pieces in letter trays are reminded that:

• Only Standard Mail flats may be mailed under the traying option in DMM M033.2.2.
• All Standard Mail flats prepared under the traying option in DMM M033.2.2 must also be palletized.
• Trays used for this traying option must bear labels meeting the standards in DMM M032.2.0 for tray labels, including a tray label barcode containing the three elements specified in DMM M032.2.4.
• Appropriate minimum volumes based on the corresponding sacking standards must be met, whether Presorted (under DMM M610.4.5), Enhanced Carrier Route (under DMM M620.4.1), or automation rate (under DMM M820.5.2).

Meeting the minimum volumes for trays is extremely important to ensure that no additional handling costs are incurred from the creation of more trays than there would be sacks if the sacking preparation standards were used. For example, most Standard Mail sort levels for flat-size mail require a minimum of either 125 pieces in a sack or 15 pounds in a sack. These same standards apply to the corresponding level of letter trays prepared under the traying option in DMM M033.2.2.

As a consequence, if a sort level requires a minimum of 125 pieces or 15 pounds in a sack, then a single tray prepared under this traying option must likewise contain a minimum of 125 pieces or 15 pounds of pieces. Two trays, for example, may not be used to meet the sacking minimum of 125 pieces by placing 75 pieces in one tray and 50 pieces in the second tray to the same presort destination.

If a large number of pieces leads to one less-than-full tray after filling several other trays, the pieces in that less- than-full tray generally become part of the next lower sort level. There are no “overflow” trays (as defined in DMM M011.1.3) under this traying option. As a general rule, all trays must contain at least 125 pieces or 15 pounds of pieces except for mixed ADC sort levels for Presorted and automation rate pieces, 3-digit origin or optional entry sort levels for Presorted and automation rate pieces, and 5-digit carrier routes trays for Enhanced Carrier Route pieces. Enhanced Carrier Route flat-size pieces may not be placed in 3-digit carrier routes trays.

Flat-size pieces that are both thick and lightweight are generally ineligible for this traying option because a single letter tray would not be able to hold the minimum number of 125 pieces and the weight of the full tray would be less than 15 pounds. On the other hand, with heavier weight pieces (e.g., one weighing 5 ounces), the minimum volume for the tray might be met by weight. In the example of the 5-ounce pieces, only 48 such pieces would be needed to meet the 15-pound minimum per tray.

Questions concerning this preparation option should be directed to the Post Office where the mail is entered. If additional information is needed, contact the district manager of business mail entry.

Mixed ADC Packages, Sacks, and Trays on ASF and BMC Pallets Advanced Preparation Options

Effective February 6, 2003, DMM M920, M930, and M940 and are revised to extend the standard published in Postal Bulletin 22086 (10-3-02, pages 21-27). This revision corrects an omission made at the time the initial article was published by allowing mailers using the advanced preparation options for flat-size mail to place certain mixed area distribution center (ADC) packages on administrative support facility (ASF) or bulk mail center (BMC) pallets.

Under this optional preparation, mixed ADC packages placed on ASF and BMC pallets are labeled to the ADC destination shown in DMM L802 that serves the location of the destination ASF or BMC. These mixed ADC packages can contain only pieces addressed to ZIP Codes within the applicable ASF or BMC service area as specified in DMM Exhibit E650.5.1.

Questions concerning this preparation option should be directed to the Post Office where the mail is entered. If additional information is needed, contact the district manager of business mail entry.


DMM Reminders
First-Class Mail Postcards — Formatting Address-Side Information

The standards in DMM C100.2.6 that relate to the address side of postcards mailed at First-Class Mail presorted and automation rates were clarified in the October 3, 2002 Postal Bulletin.

The standards specify that when a message is displayed on the delivery address side, the card must be divided vertically or horizontally with or without a rule. For vertically divided cards, the message area is the left side. On horizontally divided cards, it is the part of the card that doesn’t contain the address area.

For cards claimed at presorted rates, non-delivery address information may only extend into the right portion of vertically divided cards, or the portion of the card containing the delivery address for horizontally divided cards, above the delivery address. In both instances, it must be shaded or surrounded by a border having at least 1/8-inch clearance between the address block and border. If at least 1/8-inch clear space is around the address block, it is not necessary to shade or border the non-delivery address information. It is important to note that these restrictions do not apply if a delivery point barcode is present in the delivery address block, or barcode clear zone, of a card claimed at automation rates.

The delivery address, postage, and any USPS marking or endorsement must appear on the right side of vertically divided cards. On horizontally divided cards, this information normally must appear completely within either the upper or the lower portion of the card.

Determining Eligibility of Matter for Mailing at Nonprofit Standard Mail Rates

DMM E670.5 describes eligible and ineligible matter for mailing at Nonprofit Standard Mail (nonprofit) rates. In this article, we summarize some key points from DMM E670.5 and explain how the USPS may determine whether particular matter qualifies for the nonprofit rates.

An authorized nonprofit organization may mail only its own material at nonprofit rates. Mailings made in conjunction with unauthorized organizations (or individuals) — referred to as ineligible cooperative mailings — must have postage paid at regular Standard Mail rates.

Material that promotes or contains advertising for travel arrangements, insurance policies, or for credit, debit, or charge cards (or similar financial instruments) is prohibited or restricted, according to DMM E670.5.4. These types of advertisements are commonly referred to as “TIF.”

Products and services that are not prohibited or restricted as noted above (i.e., not “TIF”), may be offered or advertised in nonprofit mailpieces only if they are substantially related to the organization’s primary purpose or if they are in a mailpiece meeting content requirements for a periodical publication. It is important to note that even a mailpiece prepared as a periodical publication is not eligible for nonprofit rates if it contains advertisements for “TIF.”

Certain products are also mailable at nonprofit rates, such as low-cost items not exceeding a cost of $8.00 (for year 2003) and donated items. DMM E670.5.11 describes the conditions for mailing actual products.

In determining whether matter is eligible for mailing at nonprofit rates, the Postal Service generally relies on the mailer’s signed certification on the postage statement as sufficient evidence that advertised products or services are “substantially related” and not subject to the Unrelated Business Income Tax (UBIT). Mailers should ensure that the content complies with DMM E670.5.6 before so certifying.

When a mailing submitted at nonprofit rates appears to be an ineligible cooperative mailing or to contain prohibited or restricted advertising (“TIF”), the mailer may be charged Regular Standard Mail rates, unless additional information and documentation is provided to show how the material qualifies under the standards.

We encourage mailers to become familiar with the standards in DMM E670 in order to help ensure that their materials will qualify for the intended rates of postage prior to mailing.

Computer-Readable Media Mail

Media Mail is a subclass of Package Services and is generally used to mail:

• Books, including books issued to supplement other books of at least eight printed pages, consisting wholly of reading matter or scholarly bibliography, or reading matter with incidental blank spaces for notations and containing no advertising matter other than incidental announcements of books. Loose-leaf pages that form a book may be enclosed in a binder or mailed with a binder;
• 16 Millimeter or narrower width films;
• Catalogs of films (24 pages or more);
• Printed Music;
• Printed Objective test materials (can include answers, test scores, etc);
• Sound Recordings & Guides or Scripts prepared solely for use with such recordings;
• Playscripts & Manuscripts for books, Periodicals, and Music;
• Printed Educational Reference Charts;
• Loose leaf pages and their binders consisting of medical information for distribution to the medical establishment;
• Computer- readable media containing prerecorded information and guides or scripts prepared solely for use with such media.

Examples of computer-readable media are diskettes, CD-ROMs, DVDs. The information that is prerecorded on this media (e.g., diskette), does not have to be one of the qualifying items (e.g., books, films, printed music, etc.) to be eligible for the rate.

Computer hardware or game consoles (e.g., Sega or Nintendo game consoles and video game cartridges) that contain a computer chip or other like-materials do not qualify as Media Mail.

Media Mail may weigh no more than 70 pounds, contain no advertising (other than books that may contain incidental announcements of other books), and contain both a delivery and return address on the mailpiece.