Rule: Domestic Mail Manual: Electronic Verification System (e-VS) Postage Manifesting and Payment of Parcel Select Mailings

Monday,
July 10, 2006
Part II
Postal Service
39 CFR Part 111
Electronic Verification System (eVS) for
Parcel Select Mailings; Final Rule
sroberts on PROD1PC70 with RULES
VerDate Aug<31>2005 17:14 Jul 07, 2006 Jkt 208001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\10JYR2.SGM 10JYR2
38966 Federal Register / Vol. 71, No. 131 / Monday, July 10, 2006 / Rules and Regulations
POSTAL SERVICE Section A. Public Comments and Postal Response: The Postal Service
Service Responses recognizes that most parcel mailers and
39 CFR Part 111 The public comments received from shippers use standard-size labels in
the two parcel shippers and two mailing their automated production processes.
Electronic Verification System (eVS) One of the most commonly used sizes
for Parcel Select Mailings organizations can be grouped into the
following five areas of concern: throughout the shipping industry
AGENCY: United States Postal Service. 1. Label markings (barcodes and measures 4 inches wide by 61⁄4 inches
ACTION: Final rule. indicia). high, a size with sufficient space to
2. Postage adjustments and Postal contain the barcode required for eVS,
SUMMARY: This final rule sets forth the Service sampling. addressing information, and postage
standards that will be adopted by the 3. Mailer and shipper quality control information in the permit imprint
Postal ServiceTM to implement the responsibilities. indicia. For small parcels that cannot
electronic data and automated processes 4. ‘‘Start-the-clock’’ confirmation at accommodate this size mailing label on
of the Electronic Verification System time of induction. the address side of the parcel, mailers
(eVS) for permit imprint Parcel Select 5. Mandatory implementation and and shippers can decrease the size of
manifest mailings and eliminate current scope of eVS. the label as long as all required postal
paper-driven and manual processes information is included. Mailers can use
1. Label Markings (Barcodes and smaller barcode formats for internal
used for such mailings. This required
Indicia) information or place internal barcodes
change will also extend to Standard
Mail machinable parcels and parcels a. Barcode Size on a different side of the parcel.
from other Package Services subclasses For mailers and shippers wanting to
Comment: Two commenters cited use window envelopes on the outside of
(Bound Printed Matter, Library Mail, or potential problems with the size of the
Media Mail) that are authorized to be parcels, large clear pouches are
UCC/EAN 128 format barcode required available that can be affixed for holding
commingled with permit imprint Parcel for eVS—either the 30-character
Select parcels. various types of packing slips that serve
concatenated barcode (which contains as the mailing label with the delivery
DATES: Effective Date: This final rule the destination ZIP Code , also called
takes effect August 1, 2007. address information and required
the postal routing code) or the 22- barcodes. These pouches, which come
FOR FURTHER INFORMATION CONTACT: John character barcode (which does not in several standard sizes, are an
F. Gullo, Manager, Business Mailer contain the destination ZIP Code)— effective substitute for window
Support, via e-mail at positioned on the mailing label as envelopes. The most common pouches
john.f.gullo@usps.gov or by telephone at described in Publication 205, Electronic have clear plastic fronts and adhesive
(202) 268–8057; or Neil Berger, Program Verification System Technical Guide. backing on either opaque or clear plastic
Manager, Business Mailer Support, via The commenters noted that the backs.
e-mail at neil.h.berger@usps.gov or by surface area of the address side found In today’s automated processing
telephone at (202) 268–7267. on some parcels, especially lightweight environment, the current size of the
SUPPLEMENTARY INFORMATION: On machinable Standard Mail or Media barcode required for eVS, which is
November 7, 2005, the Postal Service Mail parcels, is too small to based on the Delivery ConfirmationTM
published a proposed rule in the accommodate both the required barcode barcode specifications, remains critical
Federal Register (70 FR 67399–67405), and all other necessary addressing to ensure accurate scanning across many
soliciting comments from mailers and information, postage indicia, and any processing platforms and in multiple
parcel shippers on requiring the use of internal inventory barcodes or delivery situations. Current testing and
the Electronic Verification System (eVS) processing codes. The size of standard certification used by the Postal Service
for all permit imprint Parcel Select window envelopes also presents similar evolved from engineering studies of
mailings, including those containing problems. Some parcel mailers and barcode configurations and industry
authorized commingled Standard Mail shippers affix window envelopes in standards. It should be noted that
machinable parcels and parcels from the place of mailing labels to outgoing barcodes used by other parcel carriers
other subclasses of Package Services parcels. These envelopes frequently tend to be the same size or longer and
(Bound Printed Matter, Media Mail, and contain packing slips, statements of taller than the concatenated barcode.
Library Mail). account, or invoices. The delivery The longer concatenated barcode is
The Postal Service received comments address may be printed on a shipping the preferred barcode because it
from two individual parcel shippers, slip, statement of account, or invoice in contains the delivery address ZIP Code,
one parcel trade association the envelope. Many of the window serves as the basis for Confirmation
representing parcel mailers and envelopes used for these purposes Services scanning information, and
shippers, and one organization cannot completely display the barcode promotes mail processing efficiencies
representing the full range of mailers types required for eVS along with the with automation equipment. Use of this
and shippers preparing letters, flats, or required delivery address information. longer barcode with the ZIP Code also
parcels. Responses to the comments These same commenters pointed out allows the mailer or shipper to benefit
from these shippers and organizations that the smaller size parcels that could from the parcel barcode discount
appear in section A, Public Comments be commingled with Parcel Select without needing to print an additional
and Postal Service Responses. mailings if authorized are frequently ZIP Code barcode (postal routing
Detailed information about eVS machinable Standard Mail or Media barcode) elsewhere on the label.
appears in section B, eVS Background Mail parcels. As one of these Moreover, this barcode allows the use of
and Overview. Implementing Domestic commenters mentioned, if these smaller Delivery Confirmation for Parcel Select
Mail Manual mailing standards appear parcels cannot be included with eVS and Priority Mail at no additional fee for
after section B. In those standards, the Parcel Select mailings, the mailer or electronically manifested information.
term mailer also implies shipper or shipper and the Postal Service incur The mailing industry and the Postal
parcel consolidator who provides a additional handling costs for separate Service determined together that the
variety of parcel mailing services. mailings with separate manifests. UCC/EAN 128 barcode format was
Federal Register / Vol. 71, No. 131 / Monday, July 10, 2006 / Rules and Regulations 38967
optimal for parcels and added this c. Unique Period for Barcode Use PIC would still be set at the point when
barcode symbology as an option for Comment: Two commenters believed the Postal Service receives the
parcels as published on July 14, 1998, that the current requirement that the electronic file.
in the Federal Register (63 FR 37947), Changes to the current 12-month
barcode required for eVS (which
with an original mandatory use in 2004. period will require systems
contains the package identification
This barcode symbology was selected development and testing to ensure that
code) may not be reused for 12
for three major advantages: mailer and shipper business
consecutive months will limit the
requirements and Postal Service
• First, this format is one of the most flexibility of mailers and shippers to
operational needs are both met. The
complete, alphanumeric, one- assign tracking numbers. These
Postal Service believes that it could
dimensional symbologies currently commenters stated that Postal Service
implement this change as early as June
available. The use of three different non-eVS manifesting rules require that
1, 2007. As the Postal Service works on
characters (A, B, and C) facilitates the the package identification code remain developing its system requirements for
encoding of the full 128 ASCII character unique for no more than 90 days. this change, it will continue working
set. Response: The 90-day period
with the mailing industry to ensure that
• Second, code 128 is one of the most mentioned by the commenters refers to
their various business needs are met.
the retention of the actual manifest
compact linear barcode symbologies
documents, not to the identification d. Rate Marking
currently available. For example, the
numbers. That document retention Comment: Two commenters believed
Code 128 symbology length is much
period applies to standard manifest that the Postal Service should revise its
shorter than Code 39. Character set C
systems as well as eVS. policy in regard to actual postage
enables numeric data to be represented
Manifesting rules in Postal Service payment and the corresponding rate
in a double density mode. Here, two
Publication 401, Guide to the Manifest marking in the permit imprint indicia
digits are presented by only one symbol Mailing System, require only a unique
character saving valuable space. This for parcels mailed under eVS. These
identification (ID) number—not commenters proposed the development
format allows concatenation to combine necessarily a package identification
multiple application identifiers (AIs). of a standard eVS marking for permit
code as used in eVS—within a given imprint indicia that could be used on all
• Third, code 128 symbols use two mailing represented by the manifest. For eVS parcels regardless of mail
independent self-checking features that non-eVS manifests, the ID number, classification. Establishing such an
improve printing and scanning whether a computer-generated number, indicia would eliminate postage
reliability. product number, or any other number, adjustments for ‘‘cross-over’’ parcels for
may be reused for every mailing which the correct postage rate is paid
b. Barcode Print Medium
represented by a separate manifest. In but the marking in the indicia is
Comment: One commenter mentioned the eVS environment, data for the incorrect because it still reflects the
that inkjet printing, which can print package identification codes, which are original classification under which the
information at high speeds on mailing required as specified in Postal Service parcel was rated.
labels and produce POSTNET barcodes Publication 205, is electronically stored For example, a mailer may rate and
and related PLANET Codes and the 4- for 12 months to support any mailer or mark a parcel that weighs nearly 16
state customer barcode, cannot print the shipper claims filed for extra services ounces as Standard Mail before handing
required UCC/EAN 128 barcodes. This such as insurance or any research for off the parcel to a parcel shipper or
commenter believes that eVS should postage reconciliations. consolidator. When the shipper or
allow an alternative barcode that can be As information, the 22-digit numeric consolidator handling the parcel weighs
printed by inkjet printers at production package identification code (PIC) the parcel, the actual weight is reported
speeds. corresponding to the 22-character at more than 1 pound, making the parcel
barcode is composed of several required ineligible to be mailed at Standard Mail
Response: The Postal Service and the elements, including an 8-digit number rates. The consolidator manifests the
parcel shipping industry worked called the Sequential Package Identifier. parcel at the appropriate Parcel Select
together to evaluate and agree on the The entire 22-digit PIC currently must rate to pay the correct postage but does
most widely used barcode technology in remain unique for 12 consecutive not remark the parcel. If the parcel is
the late 1990s, specifically for Delivery months from the date of first use. sampled by the Postal Service, one
Confirmation and parcel mail. Industry Because digits 0 through 9 may be used commenter believed that it would result
standards for this barcode are specified in each of the eight positions of the in a penalty in the calculation of the
in the American National Standards Sequential Package Identifier, a mailer postage adjustment factor (as described
Institute (ANSI) X3.182–1990 Bar Code or shipper actually has a total of in section B).
Print Quality Guideline. Following these 100,000,000 unique combinations Both commenters believed that the
standards ensures a consistently high available for one year just from that emphasis in the eVS environment
read rate for successful barcode identifier. An eVS mailer or shipper can should be on the correct payment of
scanning at all stages in mail processing expand this number of unique postage. These commenters believed
and delivery. combinations by increasing the number that a general eVS marking would solve
Processing equipment used by the of nine-digit customer identification this issue and provide parcel mailers
parcel industry and the Postal Service numbers used. and shippers the necessary flexibility to
support the technology behind the In view of the comments from parcel correct rate payments without the
currently required parcel barcode. The mailers and shippers and their need for burden of remarking the parcels.
Postal Service in cooperation with the greater flexibility to meet various Response: Use of the correct rate and
parcel industry will continue to explore business applications, the Postal Service class markings on all mailpieces is the
new barcode technologies and printing has begun studying how to change the only way to ensure that the Postal
options as they become available to current requirements for unique PICs Service can provide the appropriate
respond to a wide range of mailer from 12 months to 6 months. The service for mailpieces. Equally
operations. business rule on maintaining a unique important, such markings also indicate
content eligibility and provide would identify the piece as Standard shippers who have a record of accurate
information needed for statistical Mail from the class marking in the postage payment when an issue
sampling done on all classes of mail to permit imprint indicia and weigh the temporarily occurs at a single
develop costing data used in the piece. The sampling software would destination facility or with a single
ratemaking process. In the case of the then determine that the weight of the mailing.
commenter’s example about Standard sample exceeds the maximum weight Second, the commenter expressed
Mail and Parcel Select, the Postal permitted for Standard Mail and prompt concern about the Postal Service
Service would like to point out that the sampler to confirm that the correct proposal to take samples of individual
there are not only differences in rates, mail class had been selected. The mailings at each plant and delivery unit.
weight maximums, and available sample data would then be uploaded to This commenter believed that it
destination entry facilities for Standard eVS with the parcel characteristics appeared extreme to impose a penalty of
Mail and Parcel Select as the commenter collected by the sampler. The sample a percentage of postage paid for an
mentions, but there are also differences data would be reconciled with the entire mailing period of one month if
in how such mail is handled for service manifest data prepared by the mailer or discrepancies between the Postal
standards, for forwarding or return, and shipper at the appropriate Parcel Select Service and mailer or shipper
for eligibility for extra services. rate. information could be isolated to a
The occasional need to change rate particular mailing, plant, or delivery
markings on mailpieces already 2. Postage Adjustments and Postal unit.
prepared is not exclusive to parcel mail Service Sampling Third, the commenter believed that,
handled by consolidators. Mailers or a. Creation of Multiple Accounts despite the two 10-day review periods
mailing service providers preparing provided following the end of the
letter-size mail may wish to change the Comment: Two commenters requested mailing month in question to reconcile
classification of advertising mail from clarification about the ability to create differences for postage adjustments,
Standard Mail to First-Class Mail to multiple eVS accounts per mailer or there appeared to be no satisfactory
meet a tight deadline. In that case, the shipper. resolution to these adjustments because
mailer or mailing service provider Response: An eVS mailer or shipper Postal Service claims of the character
would need to obliterate and remark the may not use more than one permit and weight of a particular sampled
pieces as First-Class Mail or overlabel number for having postage payment parcel or shipment cannot be verified by
the indicia with an indicia marked First- withdrawals made from a single the mailer or shipper after sampling had
Class Mail. In another case, mailers or financial account. If an eVS mailer or been done and the data entered.
shippers handling order fulfillment may shipper wishes to use two or more Response: The Postal Service
need to change the classification of a permit numbers, the mailer or shipper developed eVS at the request of the
parcel from Parcel Select to Priority must establish a separate financial parcel shipping industry to provide
Mail to expedite a late shipment to the account with the Postal Service for each mailers and shippers greater operational
consumer ordering the merchandise. permit number referenced in their flexibility by moving the verification
The mailer or shipper would need to permit indicia. process from an origin-based system to
decide at the time the label is printed to Currently, eVS participants have a destination-based system. eVS is based
avoid overlabeling. A parcel mailer or obtained multiple location-related upon the mailer’s or shipper’s complete
shipper needing to reclassify a Standard identification numbers from the Postal system of mailing processes, and mailer
Mail parcel as a Parcel Select parcel Service, rather than setting up separate or shipper quality controls are expected
would need to take the same action and profiles with separate debit accounts to extend across all steps in these
remark the parcel or make the decision and permit numbers. These eVS processes. This arrangement results in
at the point the label is produced. participants have linked these multiple an accurate reflection of the mailer’s or
Preparing and marking the Standard identification numbers to the mailer ID shipper’s efficiencies throughout the
Mail parcel weighing over the maximum and permit number in order to handle mailing process. Postage sampling—
permitted weight as Parcel Select various client relationships and internal only one element of quality
resolves this problem. Postal Service accounting arrangements. This approach verification—does not penalize; rather,
classification allows Standard Mail to be has given these eVS mailers and the postage adjustment represents actual
reclassified easily as Parcel Post shippers the flexibility to identify postage due versus what the mailer or
because there are no minimum weight clients for billing as well as for handling shipper originally projected for the
restrictions on Parcel Post and the internal business within the mailer’s or entire mailing volume.
content requirements are the same. As shipper’s operations such as eVS introduced three fundamental
mentioned previously, there are service distribution centers or regional plants. modifications to current acceptance and
differences in handling and delivery verification processes:
b. Sampling Procedures and Postage
between the two classes. What the • How postage is to be paid. Postage
Adjustments
commenter discusses is actually related is paid by the transmission of an
more to weight than to classification Comment: One of the commenters electronic manifest and the automatic
and can be readily resolved by presented several concerns about the generation of postage statements and
remarking the piece and converting it to proposed sampling methods and automatic withdrawals from the eVS
Parcel Select. The Postal Service postage adjustment process. First, the mailer’s or shipper’s PostalOne!
continues to require all mailpieces to commenter believed that postage payment account.
bear the appropriate class and rate adjustments collected under eVS for • Where and how verifications are to
markings in order to provide the service actual mailer or shipper errors should take place. Sampling mail at destination
requested by the mailer or shipper and be cost-based and specific rather than is the cornerstone for eVS verification of
expected by the consumer. averaged and automatic. This correct postage payment.
The commenter asked for commenter noted that although • Use of a Postal Service accounting
confirmation on how the Postal Service penalties against chronic offenders period (a calendar month), rather than
would rate the Standard Mail parcel in might be warranted, penalties should individual mailings, as the basis for
his example. The Postal Service sampler not be automatic for mailers and calculating any postage adjustments.
In response to the commenter’s first Service sufficient time to reconcile any shippers must pick up mis-shipped
concern that postage adjustments potential differences. If the results from DDU parcels. In the future, the Postal
should be cost-based for specific the monthly sampling indicate total Service will handle these parcels and
mailings rather than averaged over an postage for the sampled parcels is charge the appropriate additional
entire mailing month, the Postal Service understated by more than 1.5% (that is, postage.
wishes to point out that sampling to the PAF is greater than 1.015), the Postal
d. Calculation of Postage for Mis-
verify postage payment is a fundamental Service adjusts the total postage for the
Shipped DDU Standard Mail Parcels
process used for permit imprint month at the end of the 20-day
mailings, whether the sampling is done reconciliation period. Comment: One commenter requested
at origin or, in the case of eVS, at Any eVS mailer or shipper may clarification on how eVS calculates the
destination. When sampling is done at pursue the written appeals process as additional postage required for mis-
origin, an individual mailing is presented in Domestic Mail Manual shipped Standard Mail DDU parcels.
identifiable and samples can be taken 604.10.0 for postage refunds. The Postal With the absence of a single-piece rate
from that particular mailing. If Service will make a decision on the for Standard Mail, the commenter
additional postage is needed, then only validity of a postage refund request or believed such parcels should be charged
that mailing is involved. When postage payment adjustment regarding either an appropriate First-Class Mail
sampling is done at destination facilities the overpayment or underpayment, single-piece rate or Parcel Post single-
for eVS, parcels from different mailings provided sufficient written piece rate, based on the weight of the
are sampled each day at multiple sites. documentation is included with the parcels.
In this case, if additional postage is appeal. Response: Just to clarify, DDU rates
needed, it is not practical for the Postal are not currently available for Standard
c. Mis-Shipped BMC Parcels Mail parcels. However, to achieve
Service to adjust payment for an
individual mailing. Using data from Comment: One commenter stated that improved delivery, mailers and shippers
parcels sampled over the entire month it is impossible to eliminate all mis- may be authorized to commingle
minimizes the effects of incorrectly shipped parcels from being included Standard Mail parcels with Parcel Select
rated parcels in a single mailing for the with DBMC rate mailings because parcels claimed at DDU rates and
mailer or shipper. During this monthly scanning devices used by the entered at DDUs. For mis-shipped
period, mailers and shippers receive commenter’s own carriers misread a Standard Mail parcels in this situation,
data that allows them to adjust their certain percentage of barcodes before the Postal Service does indeed charge
focus on specific facilities and processes the parcels are presented to the Postal the rates cited by the commenter. Under
that are falling below the established Service. As a consequence, this eVS, Standard Mail parcels will be
quality levels in their service commenter believed that mis-shipped charged either an appropriate First-Class
agreements. parcels received at bulk mail centers Mail single-piece rate or Parcel Post
In response to the second concern and sampled by the Postal Service single-piece rate, based on the weight of
about imposing a ‘‘penalty’’ of a should not be included in the postage the parcel and whichever rate is the
percentage of postage paid for an entire adjustment factor (PAF). Instead, the lower rate. Because of the Standard Mail
mailing period of one month, the Postal commenter proposed that a mis-shipped marking in the postage indicia, these
Service wishes to state that it already DBMC parcel be charged the inter-BMC pieces will still be handled like
allows a tolerance up to 1.5% in the Parcel Post rate less the paid DBMC rate Standard Mail parcels in terms of
underpayment of postage for any already paid. delivery service and any forwarding or
mailing. Furthermore, the Postal Service Response: The Postal Service wishes return service indicated by ancillary
wishes to clarify that there is no penalty to note that all destination rates require service endorsements.
or added charge; what the commenter entry of the mail at the correct
terms ‘‘penalty’’ is actual postage owed designated facility. Any destination rate e. Postage Adjustment Reviews
for pieces mailed. parcel entered at the wrong facility is Comment: Three of the four
For mailers and shippers with well incorrectly rated. For sampled mis- commenters voiced the following
executed quality control procedures and shipped parcels originally rated by the concerns about changes in current
an established record of accurate eVS mailer or shipper as DBMC rate and sampling methodology that will occur
postage payment, the postage destination sectional center facility for eVS mailings due to the replacement
adjustment factor (PAF) for their (DSCF) rate, the Postal Service rates the of origin sampling with destination
monthly mailings is 1.015 or below parcels at the appropriate inter-BMC sampling:
(representing underpayment of 1.5% or rate for mis-shipped DBMC parcels and • Rework option. eVS mailers and
less). If the Postal Service moved to a intra-BMC or inter-BMC rate for mis- shippers lack the option to rework mail
purely cost-based system of adjustments shipped DSCF parcels. as currently permitted for mail subject
for eVS, then there would be no Random sampling is the only to origin sampling and verification.
tolerance for any underpayment of technique currently available for • Sample parcel discrepancy
postage and the systems requirements identifying DBMC and DSCF parcels resolution. eVS mailers and shippers
and data processing for eVS would need mis-shipped by the eVS mailer or lack any real ability to dispute
to become so sophisticated that most shipper. In contrast, both random destination sampling results because the
mailers and shippers, especially sampling and Postal Service carrier physical pieces will have been
consolidators receiving electronic files scanning (for all parcels bearing delivered, leaving only data to resolve
from clients, would find both the Confirmation Services) are techniques discrepancies.
technology requirements and the available for identifying destinating • Automated postage adjustment
administrative costs burdensome and delivery unit (DDU) parcels mis-shipped withdrawals. eVS mailers and shippers
challenging. by the eVS mailer or shipper. As a lack a way to stop automatic postage
In response to the third concern about result, nearly all mis-shipped DDU adjustments calculated through
reviews and appeals, the Postal Service parcels can be identified and are sampling and withdrawn from their
believes providing 20 days gives both therefore not included as part of the debit account established with the
the mailer or shipper and the Postal PAF. Currently, eVS mailers and Postal Service before the mailer or
shipper even agrees with the differences. At the same time, they concerned about automated postage
adjustment. Two of these commenters indicate that the mailer or shipper adjustments because of the number of
recommended that, in view of these preparing the manifest files needs to review processes in place with eVS.
methodology changes, the Postal Service improve quality control processes to During the 10-day reconciliation
develop system functionalities for each eliminate such errors. period following the month of mailing
eVS customer profile that would allow Postal Service employees responsible in question, the eVS mailer or shipper
an eVS mailer or shipper to set a for sampling parcels are highly trained concerned about any specific
threshold—either a dollar amount or a in all areas affecting sampling such as adjustment or adjustment amount can
percentage of total postage for the the correct procedures for classifying submit a written appeal to the Postal
month—above which the Postal Service mail, proper handling of the sampling Service under the standards in the
would be required to obtain devices and scales, uploading sampling Domestic Mail Manual. During the
authorization from the mailer or data, and prompt return of the sampled appeal process, the Postal Service will
shipper. mailpieces to the mailstream. Postal disable the automated adjustment
• Reduction in PAF. Additionally, Service employees responsible for feature as the eVS mailer or shipper and
one commenter recommended that the sampling at DDUs report to the the Postal Service review and analyze
Postal Service should implement a managers of Statistical Programs and the adjustment.
program to monitor its sampling handle a wide range of other programs In regard to the fourth point, the
accuracy and include a provision that requiring similar knowledge and skills, Postal Service believes that the current
would numerically increase the postage including the Origin-Destination PAF of 1.015 provides sufficient latitude
adjustment factor (PAF) threshold from Information System—Domestic for parcel mailers and shippers. As
1.015 if the Postal Service sampling Revenue, Pieces, and Weight System mentioned previously, Postal Service
accuracy or sampling size fell below a (ODIS–RPW) used to estimate revenue, employees performing sampling are
specified level. volume flow, weight, and performance well trained and accurate. The Postal
• Optional procedures. eVS mailers measurement for the Postal Service. Service is working with these
and shippers lack any alternative to eVS This data is used to develop proposals employees to increase the number of
such as using optional procedure for new rates, assist in budget samples taken at BMCs, SCFs, and
mailing systems. At a minimum, this preparation, conduct management DDUs.
commenter believed that the Postal studies, and support management In regard to the fifth point, eVS
Service should still honor and renew decisions concerning mail flow and manifest mailing system replaces all
existing optional procedure mailing service performance in transportation postage payment systems for permit
systems with individual parcel mailers and operations. imprint Parcel Select mailings,
or shippers. Postal Service employees responsible including optional procedures and
Response: The eVS requirements and for sampling at DBMCs and DSCFs are alternate mailing systems (AMS).
processes presented in this final rule included in the reporting structure of Mailers and shippers would be
represent the outcome of more than the manager of Business Mail Entry. permitted to continue using such
three years of collaborative work These employees are trained to handle postage payment systems for parcel
between the parcel shipping industry sampling and verification not only for mailings except for permit imprint
and the Postal Service in the concept eVS but for all other types and classes Parcel Select mailings or permit imprint
and design of this postage payment of mailings, including origin verification Parcel Select mailings combined with
system. The use of destination sampling at mailers’ and shippers’ plants and at other parcels. The Postal Service
as a verification tool constitutes the business mail entry offices. So while it believes that once mailers and shippers
foundation of eVS and provides parcel is true, as the commenter notes, that begin using eVS, they will want to use
mailers and shippers with the greatest mailers and shippers are not able to this system for all parcels.
flexibility and freedom in managing dispute the sample results due to the
their internal controls, modifying their 3. Mailer and Shipper Quality Control
nature of the sampling process and the
operational processes, and improving Responsibilities
need to get the sampled mail back into
their customer service. At the same the mailstream, the data will be Comment: Two commenters voiced
time, eVS processes streamline nearly collected by well-trained Postal Service concerns about mailer and shipper costs
every step in the postage payment employees and is expected to be associated with the internal quality
process and the reconciliation of accurate. control requirements outlined in
mailings with that payment process. In regard to the third point about chapter 5 of Postal Service Publication
The Postal Service believes that these automatic withdrawals of postage 205, Electronic Verification System
mailer and shipper benefits outweigh adjustments, the adjustment process for Technical Guide:
the limited option to rework mailings, current eVS customers is handled Initially, the mailer must perform postage
an option that most mailers and manually through e-mail accuracy verifications on 0.5% of the parcels
shippers under tight fulfillment communications between the customers for each destination entry level (DBMC,
schedules and customer deadlines do and the Postal Service. With a small DSCF, DDU) from each mailer facility * * *.
not currently exercise. number of customers, this approach The mailer must perform postage accuracy
In regard to the second point presents few administrative burdens. verifications on 0.5% of the parcels from
concerning discrepancies between With a large number of customers, each mailer facility for the first 30 days. After
that, when mailings remain within the ±1.5%
manifested information for a particular however, this approach would become accuracy level, the percentage of parcels
parcel and information derived from the inefficient for the eVS customers and verified for each destination entry level can
actual weighing and rating of the parcel the Postal Service. Automating the be reduced to 0.25%. If errors for any
as a sample, the Postal Service notes adjustment process would provide an destination entry level exceed the ±1.5%
that most discrepancies found are due to appropriate level of efficiency and difference, 0.5% of the parcels to that entry
incorrectly weighed pieces, incorrectly customer service. With proper level must be sampled until the ±1.5%
input rates, and incorrectly input observance of quality control accuracy level is maintained for 30 days.
destination ZIP Codes. All three of these procedures and processes, mailers and One commenter proposed amending
discrepancies can result in postage shippers would have few reasons to be the 0.25% to 0.1% of all parcels with
the view that the goal of eVS should be to validate processes and systems. explanation of those errors and the
to reduce cost in mail verification for However, the Postal Service also corrective action taken for files accepted
mailers and shippers as well as the believes that mailers or shippers who from clients. Have client-based quality
Postal Service. This commenter stated demonstrate superior quality control control to ensure the proper rating of all
that the initial costs incurred in procedures as benchmarked by the material being entered by the client.
establishing proper quality control postage adjustment factor (PAF) should • File upload process. Ensure the
procedures in order to comply with be rewarded for that performance. In proper upload of all electronic eVS
these requirements and the associated response to these two commenters, the manifest mailing data.
labor costs for these internal Postal Service will modify the business • File return process. Ensure that file
verifications performed by the mailer or rules in Publication 205 for postage error report data—such as the Product
shipper could be brought in line to meet accuracy verifications for eVS mailers Tracking System Error/Warning report—
the purpose of quality control by and shippers as follows: returned from the Postal Service
permitting this lower percentage. The mailer must perform postage accuracy receives scrutiny, prompt correction,
The commenter stated that the Postal verifications on 0.5% of the parcels from retransmission or other electronically
Service should work closely with each mailer facility for the first 30 days. After documented reconciliation.
interested parcel mailers and shippers that, when mailings remain within the ±1.5% • Monthly quality improvement
to develop alternative procedures that accuracy level, the percentage of parcels effort. Provide a corrective action report
still ensure proper postage payment at a verified from each destination entry level can regarding action taken to improve
lower cost to the mailers and shippers. be reduced to 0.25% for the next 60 days.
quality if Postal Service sampling
In addition, the commenter suggested After that 60-day period, the percentage of
parcels verified from each destination entry results indicate more than 1.5% error.
that the Postal Service may want to
level can be reduced to 0.10%. If any • Delivery appointment quality
consider reducing the number of parcels
destination entry level exceeds the ±1.5% measurement. Arrive within one half
that must be verified, especially for
difference, 0.5% of the parcels to that entry hour of appointment schedules and
companies that consistently meet level must be sampled until the ±1.5% provide, upon request by the Postal
quality thresholds specified by the accuracy level is maintained for 30 days, Service, electronic validation of
Postal Service. followed by 60 days at 0.25% and finally at
Response: The Postal Service monthly performance in meeting these
0.10%. appointment schedule times, as
recognizes that there are many costs
associated with implementing and The Postal Service will continue to applicable to each destination delivery
maintaining a successful quality control work with parcel mailers and parcel unit post office where mail is being
program at any mailer’s or shipper’s shippers on improving quality control deposited.
production site. Unlike letter-size mail procedures. An attachment to the
4. ‘‘Start-the-Clock’’ Confirmation at
and flat-size mail—both of which tend service agreement references the
Time of Induction
to be predictable in production, following quality control processes that
scheduling, and quality—parcel mail can be tailored to specific business and Comment: Two commenters
generally does not have those operational needs: expressed concern about the elimination
characteristics of predictability. Parcel • Quality control documentation. of the PS Form 8125, Plant-Verified
mail represents a form of mail driven by Maintain and document quality control Drop Shipment (PVDS) Verification and
customer orders and fulfillment not by over all aspects of mail production and Clearance, that mailers or shippers
catalysts such as monthly invoicing, system processing environments. currently use when they enter PVDS
subscription services, or sales cycles for Documentation could be represented by mailings at a destination facility. For the
advertising campaigns. As a result, a quality control manual or other work Postal Service, the form confirms that
parcel mailings can vary greatly from instructions and checklists that the the mailing has already been verified by
day to day, whether for a parcel mailer Postal Service could audit if necessary. the Postal Service and may be accepted.
or a parcel shipper consolidating parcels • Customer number maintenance For the mailer or shipper and the Postal
from several clients. In addition, process. Ensure that all the shipper’s Service, the form serves as the ‘‘start-
because eVS relies solely on the clients are incorporated into the eVS the-clock’’ event for Parcel Select
accuracy of the manifest files submitted data structure for proper identification performance. The commenter proposed
and the subsequent sampling done by and impact on postage payment. replacing the process of scanning the
the Postal Service at destination, the • Barcode read rate. Document which Form 8125 by requiring Postal Service
importance of quality control assumes quality control processes are used and destination facilities to scan five parcels
an extremely critical role for the success which reports are generated to ensure from the shipment when received. The
of this electronic system. accurate readability of barcode commenter requested that the Postal
The required sampling percentages information on all parcels. Service specify what will replace the PS
are minimal to ensure that the parcel • Insured parcels. Have a process to Form 8125 barcode scan as proof of
mailer or shipper using eVS prepares validate that all insured parcels or entry and ‘‘start-the-clock.’’ The
and reports accurate data for the Parcel collect-on-delivery parcels, whether commenter concluded that the Postal
Select mailings. Taken in perspective, claimed by the mailer or shipper or by Service should commit to prompt
the Postal Service notes that 0.5% clients of the mailer or shipper, are verification and acceptance at
represents only 5 parcels out of 1,000 verified as being present within the destination facilities.
parcels. If the mailer or shipper plans to mailing before including the mailer’s or Response: The Postal Service and the
deposit mail at several sites from several shipper’s data or the clients’ data within parcel shipping industry worked
mailer or shipper plants, the number of the electronic eVS manifest mailing. together for the past three years to
parcels sampled still remains relatively This data must be protected using detail develop a postage payment system that
small. At 0.25%, the mailer or shipper record 2 format criteria as specified in eliminated reliance on paperwork,
reduces the number of parcels sampled Publication 205. including PS Form 8125. With the
by one-half. • Sampling process. Document the proper reconciliation of data in the
The Postal Service encourages the use frequency of errors by using PS Form manifest files created and submitted by
of more quality control rather than less 8159 or a facsimile and provide an an eVS mailer or shipper, the Postal
Service does not require clearance be made available for all classes of (‘‘worksharing rates’’). These reduced
documentation. parcels. rates are based on the avoided costs
In response to the critical need, Response: The Postal Service agrees estimated by the Postal Service as a
however, for eVS mailers and shippers with this commenter’s recommendation result of worksharing activities done by
to have confirmation that a shipment and will extend the availability of eVS, the mailer or shipper. The key activities
has been received, the Postal Service is but not its required use, to all classes of include (1) barcoding and preparing
in the process of considering new domestic mail, whether or not the mail for Postal Service automated
acceptance procedures for eVS mailings. parcels are included in a Parcel Select equipment; (2) presorting mail by ZIP
These procedures would incorporate mailing. Currently, eVS may be used for Code or specific delivery location; and
scanning a yet-to-be determined Bound Printed Matter, Media Mail, and (3) entering mail at a Postal Service
percentage of pieces in each Parcel Regular Standard Mail. In addition, the facility closer to the final destination of
Select destination entry mailing with Postal Service plans to extend eVS to the mail.
the ‘‘DC/eVS Arrive’’ scan event. permit imprint Priority Mail and First- The Postal Service notes that eVS is
Further, the Postal Service is examining Class Mail after it has developed origin simply a more advanced manifest
the appropriate system logic that would verification processes by working with mailing system for permit imprint mail
be used for this additional data the parcel industry and Postal Service that reduces certain tasks for mailers
collected on Parcel Select mailings to management responsible for acceptance and shippers. Under eVS, mailers and
support service performance procedures. shippers are not assuming the
measurement, also a critical element for Comment: One commenter noted that performance of tasks generally done by
eVS mailers and shippers and for the the implementation of eVS requires the Postal Service, including
Postal Service. considerable upfront costs. This verification of mail and monitoring
commenter believed that such costs mailer and shipper quality. Even though
It is expected that the new procedures
would reduce the value of eVS and these tasks are simplified and greatly
would provide a more efficient and
possibly decrease the competitive automated under eVS, they are still
effective means of entering Parcel Select
position of the Postal Service as a parcel tasks that the Postal Service must
mailings. Because this change would
carrier. The commenter recommended perform to ensure that mailers and
affect many mailers and shippers and
that eVS should be made optional and shippers can benefit from this program
Postal Service operations, considerable
that workshare discounts should be while protecting Postal Service revenue.
work with the mailing industry will be
provided to eVS parcel mailers and So the traditional basis for worksharing
needed before final procedures are shippers. is not present in eVS.
programmed and adopted. Response: The Postal Service believes The net benefits of eVS would
5. Mandatory Implementation and that most parcel mailers and parcel inevitably be passed on to the mailers
Scope of eVS shippers will experience limited costs and shippers by helping to mitigate
in modifying their current production increases in institutional costs for the
Comment: One commenter stated that and information technology systems to Postal Service and costs directly
mailers or shippers with multiple accommodate eVS. In fact, many Parcel associated with specific classes and
facilities may need more than one year Select mailers and shippers already use subclasses of mail. At the same time,
to test and implement eVS. manifesting systems and transmit eVS would, in the long-term, reduce
Response: The Postal Service believes Delivery Confirmation files. eVS uses overall operational and administrative
that most mailers and shippers, even the same information already created by costs for mailers and shippers.
those with multiple facilities, will have these systems. This similarity helps Comment: One commenter stated that
little difficulty testing and minimize transition costs to eVS. mandating eVS might prevent mailers or
implementing eVS within one year. From a competitive standpoint, eVS shippers who cannot meet the
Generally, parcel mailers and parcel offers significant benefits to parcel requirements for this new system from
shippers already manifesting parcel mailers and shippers. Mailers and using Parcel Select. This commenter
mailings have the electronic shippers no longer have to wait for also expressed concern about the
infrastructure and quality control Postal Service verification, the parcel intentions of the Postal Service to
processes needed for the barcoding requirement provides greater extend the use of eVS to all parcel
implementation of eVS. Depending on specificity in accounting and postage, mailings in the future, raising additional
the circumstances and proposed and the electronic manifests eliminate issues with the mailing industry.
timelines of such multiple-site parcel the need for most paper documentation. Response: The Postal Service plans to
mailers or parcel shippers, the Postal At the same time, eVS increases make eVS available for all parcel-shaped
Service will consider possible operational flexibility for participants, mail, but it does not intend to mandate
extensions for full implementation of and streamlines most administrative the use of eVS outside Parcel Select
eVS at all sites. processes for participants and the Postal mailings without further experience and
Comment: One commenter stated that Service. discussions with the parcel industry.
many mailers and shippers currently The Postal Service and the parcel
use their manifest systems to pay industry have worked many years to Section B. Background and Overview
postage for all classes and subclasses of evolve a system that would modernize The Postal Service has worked closely
mail. This commenter noted that the the handling and payment for parcel with the parcel shipping industry over
proposed rule published on November mail. The Postal Service believes that the past 3 years to develop verification
7, 2005, in the Federal Register applied the eVS features and benefits will make and acceptance procedures designed for
only to Parcel Select mailings and to parcel mail an attractive alternative for customer convenience and flexibility in
Parcel Select mailings authorized to many customers. mail induction and postage payment.
contain machinable Standard Mail The Postal Service wants to point out Current procedures for the acceptance
parcels and parcels from other Package that postage worksharing activities and verification of parcel mailings are
Services subclasses (Bound Printed generally require mailers and shippers paper-driven and can be challenging in
Matter, Media Mail, and Library Mail). to prepare, sort, or transport mail to a dynamic shipping industry. This
This commenter recommended that eVS qualify for reduced postage rates industry includes mailers and mail
owners (such as catalog companies, verify parcel mailings at destination data and configuration for successful
order-fulfillment houses, and e- entry facilities. processing:
commerce firms) as well as shippers • Electronic manifests. The creation
Benefits of eVS
(such as regional and national carriers and successful transmission of
and parcel consolidators and The Postal Service and the parcel electronic manifests to the Postal
transporters handling parcels from shipping industry have worked together Service for postage payment will be
mailers, mail owners, and other to develop eVS as a new manifesting required. The electronic file format and
shippers). model that simplifies acceptance, data elements to be used for these
verification, and induction of parcel manifests are detailed in Postal Service
Current Operational and Document mailings. Under this model, mailers or
Flow Publication 205. The eVS electronic
shippers barcode and manifest all manifests will replace today’s hardcopy
Current operational cycles of parcel parcels before transmitting an electronic manifest, as well as the associated hard-
mailers and shippers tend to be tied to manifest to the Postal Service. copy postage statement and PS Form
the schedule of Postal Service clerks The eVS manifest lists all barcoded 8125.
who visit their plants and distribution parcels in a mailing and includes • Parcel barcoding. The application
centers to verify and accept parcel mail pertinent information for each parcel to of a unique barcode to each parcel will
before it can be entered into the support postage and fee payment. Under be required. There are two standardized
mailstream or transported to Postal eVS, parcel mailings are no longer eVS barcode formats: the Confirmation
Service destination entry facilities for verified by the Postal Service at a Services barcode (that is, the current
induction. For destination entry parcel mailer’s or shipper’s plant, and the barcode used for Delivery
mailers or shippers, scheduling poses a mailer or shipper is no longer required ConfirmationTM and Signature
greater challenge because they must to create paper documentation for ConfirmationTM) and the Package
prepare paper documentation for each induction activities. Mailers or shippers Services routing barcode for parcels not
scheduled induction event at the time of manifest the parcels, transmit the containing Confirmation Services.
acceptance and verification at their electronic files to the Postal Service, Technical requirements for each
plants. schedule appointments through the barcode type are also detailed in
The critical documents used for Facility Access and Shipment Tracking Publication 205.
parcel mail are the numerous postage (FAST) system, and present the parcels Æ The barcode must be an authorized
statements representing payment for the at the desired destination entry facilities UCC/EAN 128 barcode meeting the
many and varied destination entry according to the appointments. technical requirements in Publication
points. These postage statements are The Postal Service draws random 205.
generated with corresponding manifests statistical samples of the mailings at the Æ The mailer or shipper ID used in
to support the mail volume and appropriate plants and delivery units, the barcode must be unique to the
destination delivery points. A challenge and electronically compares the parcel shipper or the parcel shipper’s
for the mailer or shipper is the high sampling data against the transmitted client.
level of coordination needed to ensure electronic manifest to verify the Æ Each barcode must be unique for 12
that the mail, the Postal Service accuracy of the mailing. Electronic consecutive months. (The Postal Service
personnel charged with verification, and reports provide information on the is currently developing requirements to
the mailer’s or shipper’s transportation discrepancies noted. These reports are shorten this period to 6 consecutive
all arrive around the same time. The available via the eVS Web site and can months for implementation by mid-
additional key documentation for facilitate an automated reconciliation 2007.)
destination entry mail is PS Form 8125, process.
Plant-Verified Drop Shipment (PVDS) Both mailers and shippers can benefit Because Delivery Confirmation
Verification and Clearance, which from the use of eVS for their parcel service does not require any additional
serves as proof of payment for each mailings as follows: fees for Parcel Select items, mailers and
specific destination entry shipment • Managing internal workflows is no shippers are encouraged to apply a
when presented to the Postal Service at longer limited by Postal Service Delivery Confirmation service barcode
the entry facility. verification schedules. to all Parcel Select pieces. Delivery
After Postal Service clerks verify the • Barcoding each parcel ensures Confirmation service is available on
parcel mail at a mailer’s or shipper’s greater precision in accounting and other Package Services and Standard
plant, the mail often flows through postage payment processes. Mail parcels for $0.14, when using the
consolidators and transporters who • Preparing and transmitting electronic option. Mailers and shippers
must keep track of the various PS Forms electronic manifests eliminate the need may choose to apply an alternate
8125 that the Postal Service certified at for paper documentation, significantly barcode as described in Publication 205
the time the mail was verified. improving the efficiency of operations to avoid paying this fee. However, no
When consolidators and transporters and reporting, and providing greater delivery information will be available
commingle parcels from multiple flexibility for updating information. when using this barcode.
mailings, it becomes even more difficult • Having access to a wealth of online
eVS Manifest Mailing Operations
to keep the physical mailings and reports provides up-to-date mailing and
corresponding documents intact. It is transaction information. This The principal eVS manifest mailing
also difficult for Postal Service clerks at information, accessible 24 hours a day, operations for the eVS participant and
destination entry facilities to reconcile 7 days a week, facilitates convenient the Postal Service are as follows:
the paper documentation against the information sharing between the Postal 1. Transmitting electronic manifest
physical parcels received. Service and the eVS mailers and files. On or before the actual date of
Mailers and shippers need a more shippers. deposit (also called the date of mailing),
convenient and flexible way to provide the mailer or shipper transmits
and update documentation and present Requirements electronic manifests to the Postal
mail. Likewise, the Postal Service needs eVS has two fundamental technical Service detailing all eVS parcels to be
a more consistent and accurate way to requirements that provide the necessary deposited into the mail stream.
2. Generating postage statements. eVS to determine whether the parcels are • Un-manifested parcels. If a parcel is
generates postage statements using the mis-shipped or un-manifested. Mis- not identified on a manifest, the mailer
information contained in the mailer’s or shipped parcels are parcels deposited at or shipper ID in the barcode will be
shipper’s transmitted manifest files and the incorrect destination entry facility. used to establish accountability for
submits these postage statements Un-manifested parcels are parcels payment of postage. Postage for un-
directly to PostalOne! scanned but not included on the manifested parcels will be based on data
3. Paying postage and fees. From the mailer’s or shipper’s manifest. collected on these parcels at destinating
information on the generated postage 7. Assessing additional postage. As Postal Service facilities. The mailer or
statements, postage and any fees for described in the next section, the mailer shipper will be allowed to reconcile un-
special services are withdrawn from the or shipper is assessed postage for manifested parcels by transmitting an
mailer’s or shipper’s PostalOne! discrepancies found in the electronic electronic manifest for the parcels
payment account. Account information, manifests for any of the following: within 10 days after the close of the
including current balances and a. Incorrectly rated parcels. mailing period. A mailing period is
transactions, is updated on the eVS Web b. Mis-shipped parcels. defined as a calendar month. Any un-
site. The eVS mailer or shipper can c. Un-manifested parcels. manifested parcels receiving a manifest
access the password-protected Web Postage Adjustments record prior to the 11th day of the
pages to view postage statements and subsequent month will be removed from
The eVS program will collect postage this assessment. Un-manifested parcels
associated funds debited from the daily based on the electronic manifests
account. do not become part of the postage
received that day from mailers or adjustment factor calculation.
4. Transporting and depositing
shippers. For calculating postage The Postal Service will work with
parcels. The eVS mailer or shipper
adjustments in eVS, a mailing period is mailers and shippers required to pay
makes appointments through the Postal
defined as a calendar month. A postage adjustments for incorrectly
Service’s FAST system and then the
reconciliation period is defined as the rated parcels, mis-shipped parcels, and
mailer or shipper transports and
20 days immediately following the un-manifested parcels to determine the
deposits the parcels at the appropriate
mailing period. In addition to the daily causes leading to these adjustments and
Postal Service destination entry facility,
collection of postage based on the review quality control procedures. It is
based on the entry rate claimed:
a. Destination bulk mail center. manifests, postage will be calculated important that the mailer or shipper
b. Destination sectional center facility. and assessed for the following types of maintain quality control procedures to
c. Destination delivery unit. errors when detected: ensure accountability of parcels entered
5. Sampling deposited parcels. As • Incorrectly rated parcels. If total under the eVS manifest program.
parcels are deposited at the destination postage paid for the parcels on the
entry facilities, the Postal Service manifests received for a mailing period Postage Payment Schedule
randomly samples the parcels using is understated by more than 1.5% based Under eVS, the collection of postage
scanning devices and electronic scales on sampling and finding underpaid and any postage adjustment occurs as
and uploads the collected sampling data parcels, a postage adjustment factor follows:
to the eVS application. The uploaded (PAF) will be calculated by dividing the • The mailer’s or shipper’s
data is matched to the data manifested total postage for the sampled parcels by PostalOne! payment account is debited
by the mailer or shipper and then the postage claimed for the sampled on a daily basis. Payment for each
compared to verify whether the parcels on the mailer’s or shipper’s manifest is debited on the day the
manifested postage claimed by the manifests. If the PAF exceeds 1.015 (that manifest is submitted.
mailer or shipper for the sampled is, the percentage of underpayment is • At the end of each mailing period,
parcels has been calculated correctly greater than 1.5%), then the manifested defined as a calendar month, the
based on specific rate determinants and postage amount for the entire mailing mailer’s or shipper’s PostalOne!
physical characteristics of the parcels. period will be multiplied by the PAF payment account is debited for postage
The results of the comparison are minus 1 (1.015 ¥ 1) to determine the for (1) mis-shipped parcels, (2) un-
recorded in the eVS database and used additional postage due. manifested parcels, and (3) postage
to calculate the postage adjustment • Mis-shipped parcels. For DDU adjustments on the manifested postage,
factor (PAF) described in the next parcels dropped at an incorrect entry if the PAF exceeds 1.015. These
section. Sampling data collected by the location, the mailer or shipper will be additional postage amounts are
Postal Service includes the following: charged the difference between the processed on the 21st day of the month
a. Barcode information and rate manifested postage and the single-piece following the mailing period to allow
markings on the mailing label. rate for the parcel. In the case of mailers and shippers time to investigate
b. Entry ZIP Code of the sampling site Standard Mail parcels, the mailer or and reconcile discrepancies. Between
and destination ZIP Code on the mailing shipper will be charged the difference the end of a mailing period and the 21st
label. between the manifested postage and day of the following month, there are
c. Zone, if applicable to the class or (whichever is less) the appropriate two 10-day review periods:
subclass of mail. single-piece First-Class Mail rate or Æ The first 10-day period is a mailer
d. Size of the parcel. single-piece intra-BMC or inter-BMC or shipper review period and begins
e. Weight of the parcel. Parcel Post rate. DDU rates are currently immediately after the end of the mailing
f. Machinability of the parcel. not available for Standard Mail parcels. period and extends through the 10th
6. Determining mis-shipped and un- To allow for improved delivery, mailers day of the month following the mailing
manifested parcels. When barcodes on and shippers can be authorized to period. During this period, the mailer or
the mailing labels are scanned during commingle Standard Mail parcels with shipper may submit manifests to
the normal processing and delivery Parcel Select parcels entered at DDUs. account for un-manifested parcels.
operations (for example, delivery scans For DBMC and DSCF parcels dropped at Æ The second 10-day period is a joint
collected for parcels prepared with an incorrect entry location, the sampled review period between the mailer or
Delivery Confirmation), the barcode pieces become part of the postage shipper and the Postal Service and
data is transmitted to the eVS database adjustment factor calculation. begins immediately following the mailer
or shipper review period and extends paid using eVS under 705.2.9, mailers information about paying postage and
through the 20th day of the month must pay postage at the Post Office fees for Parcel Select mailings.
following the mailing period. During where they hold the permit used for * * * * *
this period, at the mailer’s or shipper’s such mailings. Prior to mailing, mailers
request, the mailer or shipper may must ensure that they have paid the 456 Enter and Deposit
jointly review the sampling data with correct mailing fee(s) for the current 12- * * * * *
the Postal Service to dispute any data month period at the Post Office where
indicating a postage adjustment is due. they pay postage for the mailing. 2.0 Parcel Select
Appeals and refund requests must be * * * * * * * * * *
submitted in writing to the Business
2.7 Verification 2.2 Rate Eligibility for Parcel Select
Mailer Support manager within 30 days
Rates
following the end of the joint review * * * * *
period. * * * * *
2.7.2 Mail Separation and
EVS Implementation Presentation 2.2.4 Postage Payment
Required use of eVS will be effective [Revise 2.7.2, as follows:] [Revise 2.2.4 to read as follows:]
August 1, 2007. This over 1-year notice Mailers who commingle Standard Postage payment is subject to the
period will provide mailers and Mail parcels with Parcel Select mailings following:
shippers with sufficient time to meet authorized under 705.6.0 must present a. Mailers must pay postage and fees
eVS standards, as well as sufficient time mailings and pay postage using the at the Post Office where they are
to perform testing necessary to ensure Electronic Verification System (eVS) if authorized to present mailings for
satisfactory operation. required by 705.2.9. Unless presenting verification, except under 2.2.4b. Except
We adopt the following amendments mailings using eVS as required under for plant-verified drop shipments (see
to Mailing Standards of the United 705.2.9, mailers must present 705.15.0) or metered mail drop
States Postal Service, Domestic Mail destination entry rate mailings for shipments (see 705.17.0), mailers must
Manual (DMM), incorporated by verification and acceptance as follows: have a meter license or permit imprint
reference in the Code of Federal a. Present mailings for verification authorization at the parent Post Office
Regulations. See 39 CFR 111.1. and acceptance at a business mail entry for mailings deposited for entry at a
unit (BMEU) at a destination postal DBMC or ASF, at a DSCF, or at a DDU.
List of Subjects in 39 CFR Part 111 facility; or b. As required by 705.2.9, mailers
Postal Service. b. Present mailings for Postal Service who mail parcels paid with a permit
verification under a plant-verified drop imprint and claimed at Parcel Select
■Accordingly, 39 CFR part 111 is
shipment (PVDS) system (see 705.15.0), rates must use the Electronic
amended as follows:
and then enter mailings at destination Verification System (eVS). Mailers using
PART 111—[AMENDED] entry facilities under the following eVS must pay postage and fees at the
conditions: Post Office where they hold the permit
■ 1. The authority citation for 39 CFR 1. For all mailings, provide a used for eVS mailings.
part 111 continues to read as follows: completed Form 8125, 8125-C, or 8125-
CD. * * * * *
Authority: 5 U.S.C. 552(a); 39 U.S.C. 101,
401, 403, 404, 414, 3001–3011, 3201–3219, 2. Separate mailings for deposit at one 2.4 Deposit for Parcel Select
3403–3406, 3621, 3626, 5001. destination postal facility from mailings
* * * * *
for deposit at other facilities to allow
■ 2. Revise the following sections of reconciliation with each accompanying 2.4.3 Mail Separation and
Mailing Standards of the United States Form 8125, 8125-C, or 8125-C. Presentation
Postal Service, Domestic Mail Manual 3. Deposit only PVDS mailings at a
(DMM) as provided below: destination delivery unit not co-located [Revise 2.4.3 to read as follows:]
Mailing Standards of the United States with a postal facility having a BMEU. As required by 705.2.9, mailers must
Postal Service, Domestic Mail Manual c. When Periodicals mail is on the present all permit imprint Parcel Select
same vehicle as Standard Mail, mailers mailings using the Electronic
* * * * *
should load the Periodicals mail toward Verification System (eVS). Mailers must
400 Discount Mail Parcels the tail of the vehicle. have destination entry rate mail verified
[Delete 2.7.3 and renumber 2.7.4 to under a PVDS system (see 705.15.0) or
* * * * *
2.7.7 as 2.7.3 to 2.7.6.] present mailings for verification and
440 Standard Mail acceptance at a BMEU located at a
* * * * *
* * * * * designated destination postal facility.
450 Parcel Post Mailers may deposit only PVDS
446 Enter and Deposit mailings at a destination delivery unit
* * * * *
* * * * * not co-located with a Post Office or
454 Postage Payment and other Postal Service facility having a
2.0 Destination Entry Documentation 1.0 Basic Standards for business mail entry unit. Mailers
* * * * * Postage Payment presenting destination entry mailings to
* * * * * the Postal Service must meet the
2.3 Postage Payment following requirements:
[Revise 2.3, as follows:] 1.2 Postage Payment a. Mark each piece of DBMC, DSCF,
Except for mailings paid using the [Revise 1.2, as follows:] or DDU rate Parcel Post as either ‘‘Parcel
Electronic Verification System (eVS), Mailers must pay postage and fees at Post’’ or ‘‘Parcel Select,’’ according to
mailers pay postage at the Post Office the Post Office where they are 402.2.2. If eVS is used, mailers must
where they are authorized to present authorized to present mailings for also mark each piece ‘‘eVS’’ as
mailings for verification. For mailings verification. See 456.2.2.4 for additional described in 604.5.0.
b. Separate DBMC rate mailings by Parcel Select mail (under 705.7.0) using 5.3.7 Standard Mail and Package
zone for permit imprint mailings of the Electronic Verification System Services Format
identical-weight pieces that are not (eVS). Unless required to use eVS, [Revise text of 5.3.7 by adding the
mailed using a special postage payment mailers may present mailings using a following sentence after the first
system under 705.2.0 through 705.4.0, Manifest Mailing System (MMS) sentence as follows:]
or that are not mailed under 455.1.4. without participating in eVS. Mailers
c. Except for PVDS mailings presented * * *If eVS is used under 705.2.9, the
must have destination entry rate mail marking ‘‘eVS’’ (or alternative ‘‘e-VS’’)
using eVS, ensure that all PVDS verified under a PVDS system (see
mailings are accompanied by a must appear directly below the permit
705.15.0) or present mailings for number. * * *
completed Form 8125, 8125–C, or 8125– verification and acceptance at a BMEU
CD. * * * * *
located at a designated destination
d. Separate each mailing from other 5.3.9 Use of a Company Permit
mailings for verification. For PVDS postal facility. Mailers may deposit only
PVDS mailings at a destination delivery Imprint
mailings, separate mailings for deposit
at different destination postal facilities unit not co-located with a Post Office or A company permit imprint is one in
to allow for reconciliation with each other Postal Service facility having a which the exact name of the company
Form 8125, 8125–C, or 8125–CD. eVS business mail entry unit. Mailers or individual holding the permit is
mailings prepared under 705.2.9 must presenting destination entry mailings to shown in the indicia in place of the city,
be physically separate for each the Postal Service must meet the state, and permit number. If eVS is used
destination postal facility but do not following requirements: under 705.2.9, the marking ‘‘eVS’’ (or
require Form 8125. a. Except for mailings presented using alternative ‘‘e-VS’’) must appear directly
e. Separate mail from freight eVS, ensure that all PVDS mailings are below the name. * * *
transported on the same vehicle. accompanied by a completed Form * * * * *
f. If Periodicals mail is on the same 8125, 8125–C, or 8125–CD.
vehicle as Parcel Post, load the 608 Postal Information and Resources
Periodicals mail toward the tail of the b. Separate each mailing from other * * * * *
vehicle. mailings for verification. For PVDS,
separate mailings for deposit at different 8.0 USPS Contact Information
* * * * *
destination postal facilities to allow 8.1 Postal Service
460 Bound Printed Matter reconciliation with each Form 8125,
8125–C, or 8125–CD. eVS mailings Revise room number and ZIP+4 for
* * * * * Business Mailer Support address as
prepared under 705.2.9 are must be
466 Enter and Deposit follows:]
physically separate for each destination
* * * * * postal facility but do not require Form BUSINESS MAILER SUPPORT
8125. U.S. POSTAL SERVICE,
2.0 Destination Entry 475 L’ENFANT PLZ S.W. RM 2P846
c. Separate mail from freight
* * * * * WASHINGTON, DC 20260–0846
transported on the same vehicle.
2.3 Postage Payment * * * * *
d. If Periodicals mail is on the same
[Revise 2.3 to read as follows:] vehicle as Bound Printed Matter, load 700 Special Standards
Postage payment is subject to the the Periodicals mail toward the tail of * * * * *
following: the vehicle.
a. Mailers must pay postage and fees 705 Advanced Preparation and Special
* * * * *
to the Post Office where they are Postage Payment Systems
authorized to present mailings for 600 Basic Standards for All Mailing * * * * *
verification, except for mail paid using Services
the Electronic Verification System 2.0 Manifest Mailing System (MMS)
(eVS). * * * * *
2.1 Description
b. When parcels for any destination 604 Postage Payment Methods
rates are commingled with Parcel Select [Add new 2.1.1 by moving text from
mail under 705.7.0, mailers must * * * * * old 2.1 to new 2.1.1. Change the last
document and pay postage using eVS as sentence in new 2.1.1 to read as
5.0 Permit Indicia (Indicia)
required under 705.2.9. follows:]
c. For mailings paid using eVS, * * * * *
2.1.1 Using an MMS
mailers must pay postage and fees at the 5.3 Indicia Design, Placement, and
Post Office where the mailer holds the * * * The standards in 2.2 describe
Content how to mail using an MMS.
permit used for eVS mailings.
* * * * * * * * * * [Add new item 2.1.2 to read as
follows:]
2.8 Verification 5.3.6 First-Class Mail and Priority
Mail Format 2.1.2 Required Use of Electronic
* * * * * Verification System (eVS)
2.8.2 Mail Separation and [Revise text of 5.3.6 by adding the
following sentence after the first As required by 2.9, mailers using
Presentation MMS when presenting Parcel Select
sentence as follows:]
[Revise text of 2.8.2 to read as mailings under 456.2.0 or commingled

follows:] * * * If eVS is used under 705.2.9, mailings with Parcel Select under
As required by 705.2.9, mailers must the marking ‘‘eVS’’ (or the alternative 705.6.0 or 705.7.0 must document and
present all Bound Printed Matter parcel ‘‘e-VS’’) must appear directly below the pay postage using eVS. Business Mailer
manifest mailings commingled with permit number. * * * Support (BMS) can provide mailers with
information for developing and claimed at Parcel Select rates must Account Payment System (CAPS)
receiving approval for these systems. document and pay postage using eVS as account.
* * * * * described in 2.9. Effective August 1,
2.9.6 Verification and Postage
2007, mailers authorized to commingle
2.4 Authorization Adjustments
Standard Mail machinable parcels or
* * * * * Package Service parcels with Parcel USPS randomly samples parcels and
Select under 705.6.0 and 705.7.0 must considers verification samples to be
2.4.1 Application also use eVS to document and pay representative of the entire mailing
[Revise by adding the following postage for all parcels in the mailing. period. USPS applies postage
sentence to the end of 2.4.1, as follows:] adjustment calculations, based on
* * * Publication 205, Electronic 2.9.2 Mailer System
verification samples, to all mailpieces
Verification System Technical Guide, Mailers must have an automated mailed during the mailing period. A
provides the application procedures for system that produces mail according to mailing period is defined as a calendar
mailers using eVS (see 2.1.2). To receive USPS standards and calculates postage month for purposes of calculating
a copy, contact the Business Mailer accurately. Mailers must assign a adjustments in eVS. USPS adjusts the
Support manager, USPS Headquarters barcode to each mailpiece according to total postage for the mailing period if
(see 608.8.0 for address). Publication 205, Electronic Verification the total postage or the total weight of
* * * * * System Technical Guide. Mailers also pieces sampled during the mailing
must produce and submit an electronic period results in an underpayment
2.4.3 General Requirements for manifest, as described in Publication greater than 1.5%.
Authorization 205, for each mailing deposited at a
* * * * * destination postal facility. The USPS 2.9.7 General Requirements for
[Revise item b, renumber items c, d, scans barcodes during sampling to Participation
and e as items e, f, and g, and add new verify information from the mailer’s General requirements for participation
items c and d, as follows:] manifest. The electronic manifest must are as follows:
b. If total postage of pieces sampled account for every piece in the mailing,
a. Mailers must apply on each
during verification indicates that the under the following conditions:
mailpiece a unique barcode with the
mailer has underpaid postage by more a. For each mailpiece produced, the
mailer ID number.
than 1.5% when compared with the electronic manifest must list the postage
manifest, USPS adjusts total postage for the piece and the factors used to b. Mailers must transmit an electronic
using the procedures in Publication 205. calculate the correct amount of postage, manifest on or before the date of
USPS charges eVS participants at the such as the piece weight and destination mailing.
end of the review period following the postal zone. c. The mailer must pay postage for
mailing period. b. For each record produced, the any underpayments identified by USPS
c. USPS charges eVS participants the manifest must include the unique verification. Mailers must maintain
appropriate single-piece rate for mis- package identification code represented sufficient funds in their postage
shipped parcels (parcels deposited at by the barcode on the mailpiece. accounts to cover any underpayments
incorrect destination facilities). USPS c. When extra services are requested, discovered after acceptance of the mail.
transports these mis-shipped parcels to the manifest must include the correct
2.9.8 Authorization
the correct destination. fees for each piece.
d. USPS charges eVS participants for Mailers must be authorized to
2.9.3 Mailer Quality Control
any parcels not listed on the mailer’s participate in eVS according to the
manifest but identified by USPS Mailers must implement a quality following procedures:
processing scans as being mailed. USPS control program that ensures proper a. Mailers must submit an eVS
removes these un-manifested parcels mail preparation, proper payment of application and supporting
from any sampling adjustments. postage, and provides accurate documentation as specified in
* * * * * documentation. The service agreement Publication 205, Electronic Verification
must detail the USPS-approved quality System Technical Guide, to the Business
2.4.4 Approval Authority control procedures. Mailer Support manager, USPS
The final authority for manifest 2.9.4 Required Barcode Headquarters (see 608.8.0 for address).
mailing approval is as follows: b. After mailers successfully complete
Mailers must apply an approved
* * * * * barcode on the address side of each development and testing for eVS, the
[Revise 2.4.4 b, as follows:] USPS grants temporary approval. USPS
mailpiece. Barcodes must meet
b. The Business Mailer Support conducts a review within 90 days of the
specifications described in Publication
manager, USPS Headquarters, approves temporary approval and will give final
205, Electronic Verification System
manifest mailing systems that produce approval if the mailer’s system is
Technical Guide.
presorted First-Class Mail and Standard working as required. The Business
Mail mailings, Package Services 2.9.5 Postage Payment Mailer Support manager, USPS
mailings, PVDS mailings, and all USPS calculates postage payment and Headquarters, has final authority for
mailings using eVS. electronically debits postage from the eVS participation approval.
* * * * * mailer’s postage account based on c. After receiving final authorization,
[Add new 2.9, as follows:] information received from the mailer’s the mailer and a USPS representative
2.9 Electronic Verification System electronic manifest and data collected must sign a service agreement. The
(eVS) through USPS operational and sampling agreement contains provisions regarding
scans. Mailings deposited under eVS mailer and USPS responsibilities,
2.9.1 Required Use must meet the standards for permit including electronic documentation,
Effective August 1, 2007, mailers imprint mail in 604.5.0. Mailers must document retention, quality control, and
depositing permit imprint parcels pay for postage through a Centralized the duration of the agreement.
2.9.9 Denial final revocation takes effect 15 days postage using the Electronic Verification
If USPS denies an eVS application, after the date of the final agency System under 705.2.9.
the mailer may appeal the decision decision. * * * * *
within 15 days from the receipt of the * * * * *
7.0 Combining Package Services
notice by filing a written appeal, 6.0 Combining Mailings of Standard Parcels for Destination Entry
including evidence showing why they Mail and Package Services Parcels
should be authorized to use eVS. Send 7.1 Combining Parcels for DSCF and
the appeal to the Business Mail [Revise title of 6.1, as follows:] DDU Entry
Acceptance manager, USPS 6.1. Combining Machinable Parcels— * * * * *
Headquarters, who issues the final DBMC Entry
agency decision (See 608.8.0 for 7.1.2 Basic Standards
address.). * * * * *
[Add the following sentence at the
2.9.10 Revocation 6.1.2 Basic Standards end of 7.1.2b, as follows:]
* * * * * b. * * * For mailings presented
The Business Mailer Support manager under 705.7.0, mailers must document
has authority to revoke authorization for 6.1.3 Postage Payment and pay postage using the Electronic
eVS participation for any of the Verification System (eVS) under
following reasons: [Revise 6.1.3 to add requirement for
eVS and reorganize, as follows:] 705.2.9.
a. A mailer provides incorrect data in
the electronic manifest and is not able Mailers must pay postage for all * * * * *
or willing to correct the problems. pieces with a permit imprint at the Post
8.0 Preparation for Pallets
b. A mailer is not properly completing Office serving the mailer’s plant using
the required quality control procedures. one of the following postage payment * * * * *
c. The mailings no longer meet eVS systems. The applicable system 8.6 Pallet Labels
criteria established by this standard or agreement must include procedures for
combined mailings approved by * * * * *
in the eVS service agreement.
d. A mailer does not present mailings Business Mailer Support. 8.6.6 Line 3 (Origin Line)
using eVS for more than 6 months a. Manifest Mailing System (MMS),
under 2.0. [Revise 8.6.6, as follows:]
(except as noted in the service
agreement). b. Optional Procedure (OP) Mailing The office of mailing or mailer
e. A mailer presents mailings that are System, under 3.0, until required under information line (line 3 of required
improperly prepared. 705.2.9. information) must be the bottom line of
f. A mailer is not paying proper c. Alternate Mailing System (AMS), required information unless the pallet or
postage. under 4.0, until required under 705.2.9. pallet box contains mail prepared under
d. For mailings presented under the Electronic Verification System
2.9.11 Corrective Action 705.6.0, mailers must document and pay (eVS). Line 3 must show either the city
After USPS issues a notice of postage using the Electronic Verification and state of the entry Post Office or the
revocation to a mailer, the mailer and System under 705.2.9. mailer’s name and the city and state of
the USPS determine corrective actions, * * * * * the mailer’s location. It is recommended
including an implementation schedule. [Revise title of 6.2, as follows:] that the mailer’s name also appear with
At the conclusion of the implementation the city and state of the entry Post
period, the USPS reexamines the 6.2 Combining Parcels—DSCF Entry, Office.
mailer’s system to determine if it Parcel Post OBMC Presort and BMC [Renumber current 8.6.7 through
complies with the program Presort 8.6.10 as 8.6.8 through 8.6.11 and add
requirements. Failure to correct * * * * * new 8.6.7, as follows:]
identified problems is sufficient 8.6.7 Electronic Verification System
grounds to sustain revocation of the 6.2.3 Postage Payment
(eVS)
mailer’s eVS authorization. [Revise text of 6.2.3 to include eVS
requirement for DSCF entry parcels, as All pallets and pallet boxes
2.9.12 Appeal of Revocation follows:] containing parcels prepared and
After receiving initial notice of Mailers must pay postage for all identified using the Electronic
revocation, a mailer has 15 days from pieces with a permit imprint at the Post Verification System (eVS) under 705.2.9
the date of receipt of the revocation Office serving the mailer’s plant using must show ‘‘eVS’’ (or the alternatives
notice to file a written appeal with the an approved manifest mailing system ‘‘EVS’’ or ‘‘E-VS’’) directly below line 3
Business Mail Acceptance manager, under 2.0. The following conditions also (origin line) using the same size and
USPS Headquarters. The appeal must apply: lettering used for line 3.
include the reason the eVS a. The applicable system agreement * * * * *
authorization should not be revoked. must include procedures for combined
The mailer may continue to mail using mailings approved by Business Mailer Neva R. Watson,
eVS during the appeal process. The Support. Attorney, Legislative.
Business Mail Acceptance manager b. For mailings presented under [FR Doc. 06–6021 Filed 7–7–06; 8:45 am]
issues the final agency decision. The 705.6.0, mailers must document and pay BILLING CODE 7710–12–P

Rule: Domestic Mail Manual: Electronic Verification System (e-VS) Postage Manifesting and Payment of Parcel Select Mailings

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Rule: Domestic Mail Manual: Electronic Verification System (e-VS) Postage Manifesting and Payment of Parcel Select Mailings

Uploaded by

Copyright:

Available Formats

Monday,

July 10, 2006

[Revise text of 2.8.2 to read as mailings under 456.2.0 or commingled

You might also like