362.3 Carrier Route First-Class Mail 362.31 Qualifying Pieces. All pieces qualifying for the carrier route rates in a carrier route First-Class mailing, must be marked "First-Class" and "Carrier Route Presort" or "CAR-RT SORT," as follows: a. When a permit imprint is used, the identifications "First-Class" and "Carrier Route Presort" or "CAR-RT SORT" must be part of the permit imprint or printed or rubber-stamped by the mailer above the address and immediately below or to the left of the permit imprint, except as provided in 362.31e. A mailer authorized to mail under the Manifest Mailing System (MMS) in 145.7 may place the rate category identification marking in a keyline as described in 145.742. b. When a meter stamp is used, the identifications "First-Class" and "Carrier Route Presort" or "CAR-RT SORT" must be printed or rubber-stamped by the mailer above the address and immediately below or to the left of the meter stamp, except as provided in 362.31e. c. When a precanceled stamp is used, the identifications "First-Class" and "Carrier Route Presort" or "CAR-RT SORT" must be printed or rubber-stamped by the mailer above the address and immediately below or to the left of the precanceled stamp, except as provided in 362.31e. Precanceled stamps in denominations suitable for carrier route rate may be provided by the Postal Service as conditions and demand permit. Precanceled stamps bearing the words "Carrier Route Presort," if provided, are sufficient identification for carrier route mailings, and the identification "Carrier Route Presort" or "CAR-RT SORT" need not be used. d. The "First-Class" and "Carrier Route Presort" or "CAR-RT SORT" markings may be printed by a postage meter, special slug, ad plate, or other suitable means that ensure a legible endorsement. e. As an alternative to 362.31a through 362.31c above, the endorsement "Carrier Route Presort" or "CAR-RT SORT" may be located in the address area on either the line above the address or two lines above the address. (The preferred position is two lines above the address.) 362.32 Nonqualifying Pieces (Presort Rate and Residual Full-Rated Pieces). All pieces which are part of a carrier route First-Class mailing, but which do not qualify for the carrier route rate, must be marked "Presorted First-Class," as noted in 362.2. Exception to marking: When, and only when, the total number of presort rate and residual (full rate) pieces in a carrier route First-Class mailing does not exceed 5% of the total number of qualifying pieces, presort rate and residual pieces may be marked with the "Carrier Route Presort" or "CAR-RT SORT" identification. 362.4 Nonpresorted ZIP+4 Mail. All pieces mailed at nonpresorted ZIP+4 rates must be marked either "First-Class" or "ZIP+4;" "ZIP+4" is the preferred marking. The marking must be printed or rubber-stamped as either part of or immediately adjacent to the permit imprint, meter stamp, or precanceled stamp. Alternatively, the marking may be located in the address area either on the line above the address or two lines above the address. (The preferred position is two lines above the address.) If the marking is located in the address area, no other information may appear on the endorsement line except for carrier route information. A mailer authorized to mail letter-size pieces under the Manifest Mailing System (MMS) in 145.7 must place the rate category identification marking in a keyline as described in 145.742. 362.5 ZIP+4 Presort First-Class Mail. All pieces mailed at the ZIP+4 Presort rates must be marked either "Presorted First-Class" or "ZIP+4 Presort"; "ZIP+4 Presort" is the preferred marking. The marking must be printed or rubber-stamped either as part of or immediately adjacent to the permit imprint, meter stamp, or precanceled stamp. Alternatively, the marking may be located in the address area either on the line above the address or two lines above the address. (The preferred position is two lines above the address.) If the marking is located in the address area, no other information may appear on the endorsement line other than carrier route information. A mailer authorized to mail letter-size pieces under the Manifest Mailing System (MMS) in 145.7 must place the rate category identification marking in a keyline as described in 145.742. 362.6 ZIP+4 Barcoded First-Class Mail. Except as provided below, all pieces mailed at the ZIP+4 Barcoded rates must be marked "Presorted First-Class." Mailers are encouraged, but not required, to show the marking "ZIP+4 Barcoded" on each piece in the mailing in addition to the "Presorted First-Class" marking. The markings must be printed or rubber-stamped either as part of or immediately adjacent to the permit imprint, meter stamp, or precanceled stamp. Alternatively, one of the markings may be located in the address area either on the line immediately above the address or two lines above the address. (The preferred position is two lines above the address). If the marking is located in the address area, no other information may appear on the endorsement line except for the carrier route information. A mailer authorized to mail letter-size pieces under the Manifest Mailing System (MMS) in 145.7 must place the rate category identification marking in a keyline as described in 145.742. 362.7 Nonpresorted ZIP+4 Barcoded Mail 362.71 Content. Each piece in a nonpresorted ZIP+4 Barcoded mailing must be marked "First-Class." In addition, mailers are encouraged, but not required, to mark each piece in the mailing "ZIP+4 Barcoded." 362.72 Method and Location. The markings must be printed or rubber-stamped either as part of, or immediately adjacent to, the permit imprint, meter stamp, or precanceled stamp. One of the markings may be located in the address area either on the line immediately above the address or, preferably, two lines above the address. If the marking is located in the address area, no other information may appear on the line containing the rate marking information except for the carrier route information. A mailer authorized to mail letter-size pieces under the Manifest Mailing System (MMS) in 145.7 must place the rate category identification marking in a keyline as described in 145.742. 363 Preparation Requirements for Presorted Priority Mail 363.1 Presort Requirements for Letters and Flats 363.11 Packaging Requirements 363.111 General. Each letteror flat-size piece in the qualifying portion of a Presorted Priority Mail mailing must be presorted and packaged as required by 363.112 through 363.115. Rubber bands must be used in securing packages unless the size of the package makes their use unsafe. 363.112 Five-Digit Packages. When 6 or more addressed pieces are destined for the same 5-digit ZIP Code, they must be faced and secured together as a 5-digit package. Packages containing fewer than 6 pieces must not be prepared. A red Label D must be affixed to the lower left corner of the address side of the top piece in each package, or the optional endorsement (package label) line described in 369 for 5-digit packages must be placed on each piece. 363.113 Three-Digit Packages. After all possible 5-digit packages have been prepared, if there are 6 or more addressed pieces remaining for the same 3-digit ZIP Code area, they must be secured together as a 3-digit package. Packages containing fewer than 6 pieces must not be prepared. A green Label 3 must be affixed to the lower left corner of the address side of the top piece in each package, or the optional endorsement (package label) line described in 369 for 3-digit packages must be placed on each piece. 363.114 SCF Packages. After all possible 5-digit and 3-digit packages have been prepared, if there are 6 or more addressed pieces remaining for one of the SCFs listed in Exhibit 122.63d, they must be secured together as an SCF package. Packages containing fewer than 6 pieces must not be prepared. Pieces within each package must be for the same zone or eligible for a rate that does not vary by zone. A green Label 3 must be affixed to the lower left corner of the address side of the top piece in each package, or the optional endorsement (package label) line described in 369 for SCF packages must be placed on each piece. 363.115 Residual Pieces. Pieces that cannot be packaged as required by 363.112 through 363.114 are residual pieces. Residual pieces must be packaged in groups of 25 pieces, identified with a facing slip carrying the number of pieces in the package and the words "Residual Pieces," and sacked separately from qualifying mail as provided by 363.125. 363.12 Sacking Requirements 363.121 General. The packages prepared as required by 363.11 must be sacked as required by 363.122 through 363.125. 363.122 Five-Digit Sacks. When there are at least 15 pounds of mail packaged for the same 5-digit ZIP Code destination, the packages must be placed in a 5-digit sack. Sacks containing fewer than 15 pounds of mail may be prepared if there is at least one package of 6 pieces in each sack. The 5-digit sacks must be labeled in the following manner: Line 1: City, two-letter state abbreviation, and 5-digit ZIP Code. Line 2: The words "PRIORITY MAIL," followed by the processing category (LETTERS or FLATS). Line 3: City and two-letter state abbreviation of the post office of mailing. 363.123 Three-Digit Sacks. After all possible 5-digit sacks have been prepared, if there are at least 15 pounds of mail for the same 3-digit ZIP Code area, the packages must be placed in a 3-digit sack. Sacks containing fewer than 15 pounds of mail may be provided if there is at least one package of 6 pieces in each sack. The 3-digit sacks must be labeled in the following manner: a. Unique 3-Digit ZIP Code Prefixes Line 1:City, two-letter state abbreviation and unique 3-digit prefix as shown in Exhibit 122.63b. Line 2:The words "PRIORITY MAIL," followed by the processing category (LETTERS or FLATS). Line 3:City and two-letter abbreviation of the post office of mailing. b. Other 3-Digit ZIP Code Prefixes Line 1:Name of SCF and two-letter state abbreviation of the SCF, followed by the 3-digit ZIP Code prefix of the pieces in the sack (see Exhibit 122.63c or Exhibit 122.63d for the name of the SCF serving the 3-digit ZIP Code area. Line 2:The words "PRIORITY MAIL," followed by the processing category (LETTERS or FLATS). Line 3:City and two-letter state abbreviation of the post office of mailing. 363.124 SCF Sacks. After preparing all possible 5-digit and 3-digit sacks, if there are at least 15 pounds of mail either for the same zone or eligible for a rate that does not vary by zone, and that mail is all for the same SCF service area, the packages must be placed in an SCF sack. Sacks containing fewer than 15 pounds of mail may be prepared if there is at least one package of 6 pieces in each sack. SCF sacks must be labeled in the following manner: Line 1:Letters "SCF" followed by the name of the SCF, the two-letter state abbreviation of the SCF, and the 3-digit ZIP Code prefix for the SCF as shown in Exhibit 122.63d. Line 2:The words "PRIORITY MAIL," followed by the processing category (LETTERS or FLATS). Line 3:City and two-letter state abbreviation of the post office of mailing. 363.125 Residual. The packages of residual pieces prepared as required by 363.115 must be sacked according to zone if part of a mailing of identical-weight pieces prepared with permit imprints, or part of a mailing of identical-weight metered mail in which the entire mailing is metered at the Presorted Priority Mail rates. Sacks of residual mail must be sacked separately from the qualifying mail sacked as required by 363.122 through 363.124. Sacks of residual mail must be labeled as follows: Line 1:Word "RESIDUAL," (followed by the zone if the zone is required). Line 2:The words "PRIORITY MAIL," followed by the processing category (LETTERS OR FLATS). Line 3:City and two-letter state abbreviation of the post office of mailing. 363.2 Presort Requirements for Parcels 363.21 Packaging Requirements. None. 363.22 Sacking Requirements. Parcels must be sacked in accordance with the following requirements. Both machinable and nonmachinable parcels may be placed in the same sack. 363.221 Five-Digit Sacks. When there are at least 6 addressed pieces for the same 5-digit ZIP Code destination, the pieces must be placed in a 5-digit sack. Sacks containing fewer than 6 pieces of mail must not be prepared. The 5-digit sacks must be labeled in the following manner: Line 1:City, two-letter state abbreviation, and 5-digit ZIP Code. Line 2:PRIORITY MAIL - PARCELS Line 3:City and two-letter state abbreviation of the post office of mailing. 363.222 Three-Digit Sacks. After all possible 5-digit sacks have been prepared, if there are at least 6 pieces remaining for the same 3-digit ZIP Code area, they must be placed in a 3-digit sack. Sacks containing fewer than 6 pieces must not be prepared. The 3-digit sacks must be labeled in the following manner: a. Unique 3-Digit ZIP Code Prefixes Line 1:City, two-letter state abbreviation, and unique 3-digit prefix as shown in Exhibit 122.63b. Line 2:PRIORITY MAIL - PARCELS Line 3:City and two-letter abbreviation of the post office of mailing. b. Other 3-Digit ZIP Code Prefixes Line 1:Name of SCF and two-letter state abbreviation of the SCF, followed by the 3-digit ZIP Code prefix of the pieces in the sack (see Exhibit 122.63c or Exhibit 122.63d for the name of the SCF serving the 3-digit ZIP Code area. Line 2:PRIORITY MAIL - PARCELS Line 3:City and two-letter state abbreviation of the post office of mailing. 363.223 SCF Sacks. After all possible 5-digit and 3-digit sacks have been prepared, if there are at least 6 pieces remaining either for the same zone or eligible for a rate that does not vary by zone, and those pieces are all for the same SCF service area, they must be placed in an SCF sack. Sacks containing fewer than 6 pieces must not be prepared. SCF sacks must be labeled in the following manner: Line 1:Letters "SCF" followed by the name of the SCF, the two-letter state abbreviation of the SCF, and the 3-digit ZIP Code prefix for the SCF as shown in Exhibit 122.63d. Line 2:PRIORITY MAIL - PARCELS Line 3:City and two-letter state abbreviation of the post office of mailing. 363.224 Residual Pieces a. Definition. Residual mail is those pieces that cannot be placed in a sack of 6 or more pieces as required by 363.221 through 363.223. b. Preparation. Residual mail must be sacked separately from qualifying mail. In addition, residual mail must be sacked according to zone if part of a mailing of identical-weight pieces prepared with permit imprints, or part of a mailing of identical-weight metered mail in which the entire mailing is metered at the Presorted Priority Mail rates. Sacks of residual mail must be labeled as follows: Line 1:Word "RESIDUAL" (followed by the zone if the zone is required). Line 2:PRIORITY MAIL - PARCELS Line 3:City and two-letter state abbreviation of the post office of mailing. 363.3 Physical Requirements for Sacks 363.31 Maximum Weight. The total weight of any sack (including the weight of the sack) must not exceed 70 pounds. 363.32 Color and Size. Orange sacks must be used for Presorted Priority Mail. It is recommended that No. 2 sacks provided by the Postal Service be used. 363.33 Sack Labels 363.331 Color. Sack labels must be white or manila. 363.332 Size a. Length (Parallel to the Printing). Minimum, 3-5/16 inches, maximum, 3-3/8 inches. b. Height (Perpendicular to the Printing). Minimum 15/16 inch, maximum 31/32 inch. 363.333 Method of Preparation. The Postal Service prefers machine-printed labels to ensure legibility, although legible hand-printed labels are acceptable. Illegible labels are unacceptable. Machine-printed labels may be ordered from the Postal Service. 363.334 Trailing Zeros. Two zeros may follow 3-digit prefixes on sack labels. 363.335 Abbreviations. The destination and office of mailing lines may contain abbreviated information if such abbreviations are those shown in Publication 65, National Five-Digit ZIP Code and Post Office Directory. The following authorized abbreviations may be used on the contents line of sack labels. LettersLTRS FlatsFLTS Priority MailPRIORITY 363.336 Line 1. Line 1, the destination line, must be the first visible line on the label. It must be completely visible and legible when placed in the label holder or otherwise affixed for use. To ensure this, the Postal Service recommends that the top line is no less than 1/8 (0.125) inch below the top of the label when the label is cut and prepared for use. The destination line must contain only the information described in 363.12 and 363.22. 363.337 Line 2. Line 2, the contents line, must be the second visible line on the label and must contain the information described in 363.12 or 363.22. 363.338 Line 3. Line 3, the office of mailing line, must be prepared as described in 363.12 and 363.22. 363.339 Extraneous Information. Extraneous information is prohibited from the destination and contents lines. The mailer may place it elsewhere as provided in 441.323a and 441.323d through 441.323f. 364 ZIP+4 Barcoded First-Class Mail 364.1 National Mailings - Presort Requirements 364.11 General. ZIP+4 Barcoded rate national mailings (as defined in 325.111a), claimed at the rates described in 325.12, must be packaged and trayed in accordance with 364.11 through 364.16 or 364.14 through 364.16, as applicable. Mailers must prepare mailings as required by 364.12 and 364.13 only if the 5-digit ZIP+4 Barcoded rate is claimed for the corresponding mail. If that rate is not being claimed, sortation can begin with the requirements of 364.14. An optional method of preparation (unpackaged mail in trays that are at least 3/4 full) is described in 560. 364.12 Five-Digit ZIP+4 Barcoded Rate Packaging Requirements 364.121 General. When there are 10 or more pieces in a ZIP+4 Barcoded rate national mailing that are addressed to the same 5-digit ZIP Code, those pieces must be prepared in a 5-digit package to that destination. Those packages must then be trayed in accordance with 364.13. 364.122 Package Preparation. Pieces must be faced in the same direction and either secured with one or two rubber bands as prescribed in 367.112 or separated by visible index tabs or separator cards to delineate each package. A package must not be more than 4 inches thick. 364.123 Package Label. A red Label D must be affixed to the lower left corner of the address side of the top piece in the package. 364.124 Packages in Trays. Pieces in 5-digit trays need not be prepared in packages. 364.13 Five-Digit ZIP+4 Barcoded Rate Traying Requirements 364.131 General a. Presort. Packages prepared as required by 364.12 must be trayed as specified in 364.132 through 364.136. Pieces that are packaged under 364.12 and trayed as prescribed by 364.132 through 364.134 may qualify for the 5-digit ZIP+4 Barcoded rate if they also bear the correct ZIP+4 barcode and meet all other requirements of 325, or for the ZIP+4 Presort or Presorted First-Class rates. Pieces in packages trayed as prescribed in 364.135 through 364.136 may qualify for the ZIP+4 Presort or Presorted First-Class rate. b. Volume Per Tray. Mailers should balance the volume in trays when more than one is prepared for the same destination to ensure that all are at least 3/4 full. If after this step the remaining pieces for that destination are not enough to generate an additional 3/4 full tray, they may be placed in an overflow tray that is less than 3/4 full, provided the pieces in that overflow tray are packaged to preserve their orientation, and only one such tray for that destination is prepared in the mailing. Packages in such overflow trays must be labeled as described in 364.12. To allow accurate verification of the mailing by postal acceptance personnel, the mailer must provide a listing of all overflow trays prepared in addition to the documentation in 364.2. 364.132 Five-Digit Trays. When there are 500 pieces or at least 3/4 of a tray for the same 5-digit ZIP Code delivery unit, a direct 5-digit tray must be prepared. A tray label must be firmly affixed to the end of the tray. Direct 5-digit trays must be labeled in the following manner: Line 1: City, state, 5-digit ZIP Code Line 2: FCM ZIP+4 Barcoded Line 3: Mailer, mailer location Example: PHILADELPHIA PA 19118 FCM ZIP+4 BARCODED FR JC COMPANY BOSTON MA It is recommended that a pressure-sensitive red 9 (Label 14, Nine-Digit Encoded Mail) be affixed to the lower right portion of the tray label before inserting it into the label holder. Note: Trays that are less than 3/4 full must not be prepared except for overflow trays as permitted in 364.131b. 364.133 Unique Three-Digit Trays. When, after all possible 3/4-full to full 5-digit trays have been prepared, there are enough 5-digit packages remaining for a city with a unique 3-digit ZIP Code prefix to fill at least 3/4 of a tray, a unique 3-digit ZIP Code tray must be prepared. Cities with unique 3-digit ZIP Codes are listed in Exhibit 122.63b. Unique 3-digit trays must be labeled in the following manner: Line 1: City, state, unique 3-digit ZIP Code prefix Line 2: FCM Z+4 BARCODED MXD 5-DG Line 3: Mailer, mailer location Example: PHILADELPHIA PA 191 FCM Z+4 BARCODED MXD 5-DG FR JC COMPANY BOSTON MA It is recommended that a pressure-sensitive red 9 (Label 14, Nine-Digit Encoded Mail) be affixed to the lower right portion of the tray label before inserting it into the label holder. Note: Trays that are less than 3/4 full must not be prepared except for overflow trays as permitted in 364.131b. 364.134 SCF Trays. When, after traying in accordance with 364.132 and 364.133, there are enough 5-digit packages remaining for the same SCF area to fill at least 3/4 of a tray, an SCF tray must be prepared. A list of SCFs serving one 3-digit ZIP Code area is in Exhibit 122.63c. A list of SCFs serving more than one 3-digit area and the 3-digit areas they each serve is in Exhibit 122.63d. SCF trays must be labeled in the following manner: Line 1: Letters "SCF" followed by city, two-letter state abbreviation, and SCF code for SCF as shown in Exhibit 122.63c and Exhibit 122.63d. Line 2: FCM Z+4 BARCODED MXD 5-DG Line 3: Mailer name, mailer location Example: SCF PHILADELPHIA PA 190 FCM Z+4 BARCODED MXD 5-DG FR JC COMPANY BOSTON MA It is recommended that a pressure-sensitive red 9 (Label 14, Nine-Digit Encoded Mail) be affixed to the lower right portion of the tray label before inserting it into the label holder. Note: Trays that are less than 3/4 full must not be prepared except for overflow trays as permitted in 364.131b and those packages destinating in the SCF that serves the entry post office. 364.135 Automated Area Distribution Center Trays a. Trays Destinating Beyond Origin AADC. When, after traying in accordance with 364.132 through 364.134, there are sufficient 5-digit packages remaining for the same automated area distribution center (AADC) to fill at least 3/4 of a tray, an AADC tray must be prepared. Trays that are less than 3/4 full must not be prepared with the exception of overflow trays as permitted in 364.131b and with the exception of those packages destinating in the AADC that serves the entry post office (see 364.135b). A list of AADCs and the areas they serve is in Exhibit 122.63t. A tray label in the format shown below must be firmly affixed to the end of the tray: Line 1: Label information as shown in Exhibit 122.63t Line 2: FCM Z+4 B/C MXD 5D Line 3: Mailer, mailer location Example: DIS ST PAUL MN 550 FCM Z+4 B/C MXD 5D FR JC COMPANY BOSTON MA b. Trays Destinating at Origin AADC. Packages destinating in the AADC that serves the entry post office must be labeled to the origin SCF as follows: Line 1: Label information for SCF serving entry post office as shown in Exhibit 122.63c or Exhibit 122.63d Line 2: FCM B/C RESID MXD 5D Line 3: Mailer, mailer location Example: SCF BOSTON MA 021 FCM B/C RESID MXD 5D FR JC COMPANY BOSTON MA It is recommended that a pressure-sensitive red 9 (Label 14, Nine-Digit Encoded Mail) be affixed to the lower right portion of the tray label before inserting it into the label holder. 364.136 Mixed AADC Trays. Five-digit packages remaining after traying in accordance with 364.132through 364.135 must be prepared in mixed AADC trays. A tray label in the following format must be firmly affixed to the end of the tray: Line 1:Label information for AADC serving entry post office as shown in Exhibit 122.63t Line 2: FCM B/C RESID MXD 5D Line 3: Mailer, mailer location Example: SCF BOSTON MA 021 FCM B/C RESID MXD 5D FR JC COMPANY BOSTON MA It is recommended that a pressure sensitive red 9 (Label 14, Nine-Digit Encoded Mail) be affixed to the lower right portion of the tray label before inserting it into the label holder. 364.14 Three-Digit ZIP+4 Barcoded Rate Packaging Requirements 364.141 General. If there are 50 or more pieces remaining that are addressed to the same 3-digit ZIP Code area, those pieces must be prepared in 3-digit packages for that destination. Those packages must then be trayed in accordance with 364.15. Five-digit packages need not have been prepared first if the 5-digit ZIP+4 Barcoded rate is not claimed. 364.142 Package Preparation. Pieces must be faced in the same direction and either secured with one or two rubber bands as prescribed in 367.112 or separated by visible index tabs or separator cards to delineate each package. A package must not be more than 4 inches thick. 364.143 Package Label. A green Label 3 must be affixed to the lower left corner of the address side of the top piece in each package. 364.144 Packages in Trays. Pieces in 3-digit trays need not be prepared in packages if all the pieces would have been prepared in 3-digit packages to the same destination. 364.145 Residual. Pieces that remain after all 5-digit and 3-digit packages have been prepared are residual pieces and must be prepared as prescribed by 364.16. 364.15 Three-Digit ZIP+4 Barcoded Rate Traying Requirements 364.151 General a. Presort. Packages prepared as required by 364.14 must be trayed as specified in 364.152 through 364.155. Pieces that are packaged under 364.14 and trayed as prescribed by 364.152 and 364.153 may qualify for the 3-digit ZIP+4 Barcoded rate if they also bear the correct ZIP+4 barcode and meet all other requirements of 325, or for the ZIP+4 Presort or Presorted First-Class rates. ZIP+4 barcoded pieces in packages trayed as prescribed in 364.154 and 364.155 qualify for the ZIP+4 Presort rate. Trays of 3-digit packages must be separated from trays of 5-digit packages when the mailing is presented to the Postal Service. b. Volume Per Tray. Mailers should balance the volume in trays when more than one is prepared for the same destination to ensure that all are at least 3/4 full. If after this step the remaining pieces for that destination are not enough to generate an additional 3/4 full tray, they may be placed in an overflow tray that is less than 3/4 full, provided the pieces in that overflow tray are packaged to preserve their orientation, and only one such tray for that destination is prepared in the mailing. Packages in such overflow trays must be labeled as described in 364.14. To allow accurate verification of the mailing by postal acceptance personnel, the mailer must provide a listing of all overflow trays prepared in addition to the documentation in 364.2. 364.152 Unique 3-Digit Trays. Prepare as prescribed in 364.133, except do not show "MXD 5-DG" on the second line of the tray label. 364.153 SCF Trays. Prepare as prescribed in 364.134, except do not show "MXD 5-DG" on the second line of the tray label. 364.154 AADC Trays a. Trays Destinating Beyond Origin AADC. Prepare as prescribed in 364.135a, except change "5D" to "PKS" on the second line of the tray label. b. Trays Destinating at Origin AADC. Prepare as prescribed in 364.135b, except change "5D" to "PKS" on the second line of the tray label. 364.155 Mixed AADC Trays. Prepare as prescribed in 364.136, except change "5D" to "PKS" on the second line of the tray label. 364.16 Preparation Requirements for the Residual Portion. Pieces remaining after all 5-digit packages have been prepared and trayed in accordance with 364.12 and 364.13, and all 3-digit packages have been prepared and trayed in accordance with 364.14 and 364.15, are residual pieces subject to either the nonpresorted ZIP+4 Barcoded rate, the nonpresorted ZIP+4 rate, or the full single-piece First-Class rate as described in 325.123. At a minimum, the residual pieces must be sequenced by 5-digit ZIP Code or 3-digit ZIP Code prefix. Trays must bear a label that states "FCM ZIP+4 BARCODED." The range of 5-digit or 3-digit ZIP Codes contained in each tray must also appear on each tray label. It is recommended, however, that residual pieces be additionally sorted by AADC. If there is a full tray to an AADC, the residual pieces should be placed in a tray marked to the AADC as follows: Line 1: Label information as shown in Exhibit 122.63t Line 2: FCM Z+4 B/C RESID Line 3: Mailer, mailer location When there is less than a full tray to an AADC, separator tabs should be used to identify groups of pieces in the tray to the same AADC. 364.2 Documentation and Postage Payment Requirements 364.21 Required Documentation for Metered and Precanceled Stamp Mailings 364.211 Correct Postage Affixed to Each Piece. Mailers who affix the appropriate postage to each piece in the mailing must submit, with each mailing, documentation that shows that the 85% commingling requirement in 325.3 has been met. The total number of pieces with a ZIP+4 barcode, and the total number of pieces not containing a ZIP+4 barcode, for the entire mailing, must also be shown. Exception: When all pieces in the mailing bear the ZIP+4 barcode prepared in accordance with 551, documentation is not required. Required documentation must list the number of pieces that bear a ZIP+4 barcode, and the number of pieces that do not contain a ZIP+4 barcode by a. 5-digit separation, b. 3-digit separation, and c. for the residual portion, by 5-digit or 3-digit ZIP Code (see 364.16). 364.212 Postage at ZIP+4 Barcoded Rate Affixed to All Pieces a. General. Mailers may affix postage at the ZIP+4 Barcoded rate to all pieces in the mailing, provided they submit with each mailing the lists and summaries described in 364.212b through 364.212e, to document that at least 85% of the pieces bear the ZIP+4 barcode, and to document the amount of postage owed. b. Five-Digit Sortation. List the following for each 5-digit ZIP Code destination in the portion of the mailing sorted in accordance with 364.12 and 364.13: (1) Number of ZIP+4 Barcoded Pieces Qualifying for the 5-Digit ZIP+4 Barcoded Rate. This is the number of pieces bearing a ZIP+4 barcode prepared in accordance with 551 and sorted to 5-digit, 3-digit, and SCF trays as specified in 364.131 through 364.133. (2) Number of ZIP+4 Barcoded Pieces Qualifying for the ZIP+4 Presort Rate. This is the number of pieces bearing a ZIP+4 barcode, prepared in accordance with 551, and sorted to AADC or mixed AADC trays as specified in 364.134 and 364.135. (3) Number of Nonbarcoded or 5-Digit Barcoded Pieces Qualifying for the ZIP+4 Presort Rate. This is the number of pieces prepared in either of the following two ways: (a) Pieces that bear neither the ZIP+4 barcode nor the 5-digit barcode, are prepared without a window in the barcode clear zone, contain the correct ZIP+4 code in the address, and meet the requirements in 540. (b) Pieces that bear a 5-digit barcode printed directly on the mailpiece (not on an insert that appears through a window) in accordance with the tolerances in 552, contain the correct ZIP+4 code in the address, and meet the requirements in 540. Note: Pieces prepared with a window in the barcode clear zone through which the ZIP+4 barcode does not appear (there is either no barcode or there is a 5-digit barcode), do not qualify for the ZIP+4 Presort rate under any circumstances. (4) Number of Nonbarcoded or 5-Digit Barcoded Pieces Qualifying for the Presorted First-Class Rate. This is the number of pieces prepared any of the following three ways: (a) Pieces that do not bear the ZIP+4 barcode (there is either no barcode or there is a 5-digit barcode) and that contain a 5-digit ZIP Code in the address. The pieces may or may not contain a window in the barcode clear zone. (b) Pieces that do not bear the ZIP+4 barcode (there is either no barcode or there is a 5-digit barcode); contain the correct ZIP+4 code in the address; are prepared without a window in the barcode clear zone; and do not meet the requirements in 540. (c) Pieces that do not bear the ZIP+4 barcode (there is either no barcode or there is a 5-digit barcode) and that are prepared with a window in the barcode clear zone. Such pieces are ineligible for the ZIP+4 Presort rate, even if they bear a ZIP+4 code in the address and otherwise meet the ZIP+4 Presort requirements. (5) Cumulative Total. This is the total of all pieces listed on preceding lines for the 5-digit portion of the mailing plus the pieces for that 5-digit ZIP Code. Total each of categories (1) through (4) to provide: (1) the total number of ZIP+4 barcoded pieces qualifying for the 5-digit ZIP+4 Barcoded rate; (2) the total number of ZIP+4 barcoded pieces qualifying for the ZIP+4 Presort rate; (3) the total number of non-ZIP+4 barcoded pieces qualifying for the ZIP+4 Presort rate; and (4) the total number of non-ZIP+4 barcoded pieces qualifying for the Presorted First-Class rate. The last entry in category (5) will show the total number of pieces in the 5-digit portion of the mailing. c. Three-Digit Sortation. List for each 3-digit separation in the portion of the mailing sorted in accordance with 364.14 and 364.15, the (1) Number of Pieces Qualifying for the 3-Digit ZIP+4 Barcoded Rate. This is the number of pieces bearing a ZIP+4 barcode prepared in accordance with 551 and sorted to 3-digit or SCF trays as specified in 364.152 through 364.153. (2) Number of ZIP+4 Barcoded Pieces Qualifying for the ZIP+4 Presort Rate. This is the number of pieces bearing a ZIP+4 barcode, prepared in accordance with 551, and sorted to AADC or mixed AADC trays as specified in 364.154 and 364.155. (3) Number of Nonbarcoded or 5-Digit Barcoded Pieces Qualifying for the ZIP+4 Presort Rates. This is the number of pieces prepared in either of the following two ways: (a) Pieces that bear neither the ZIP+4 barcode nor the 5-digit barcode, are prepared without a window in the barcode clear zone, contain the correct ZIP+4 code in the address, and meet the requirements of 540. (b) Pieces that bear a 5-digit barcode printed directly on the mailpiece (not on an insert that appears through a window), as provided by 552.31, contain the correct ZIP+4 code in the address, and meet the requirements of 540 and 552. Note: Pieces prepared with a barcode window through which the ZIP+4 barcode does not appear (there is either no barcode or there is a 5-digit barcode) do not qualify for the ZIP+4 Presort rate under any circumstances. (4) Number of Nonbarcoded or 5-Digit Barcoded Pieces Qualifying for the Presorted First-Class Rate. This is the number of pieces prepared in any of the following three ways: (a) Pieces that do not bear the ZIP+4 barcode (there is either no barcode or there is a 5-digit barcode) and that contain a 5-digit ZIP Code in the address. The pieces may or may not contain a window in the barcode clear zone. (b) Pieces that do not bear the ZIP+4 barcode (there is either no barcode or there is a 5-digit barcode), contain the correct ZIP+4 code in the address, are prepared without a window in the barcode clear zone, and do not meet the requirements of 540. (c) Pieces that do not bear the ZIP+4 barcode (there is either no barcode or there is a 5-digit barcode) and that are prepared with a window in the barcode clear zone. Such pieces are ineligible for the ZIP+4 Presort rate, even if they bear a ZIP+4 code in the address and otherwise meet the ZIP+4 Presort requirements. (5) Cumulative Total. This is the total of all pieces listed on preceding lines for 3-digit portion of the mailing plus the pieces for that 3-digit ZIP Code. Total each of categories (1) through (3) to provide: (1) the total number of ZIP+4 barcoded pieces qualifying for the 3-Digit ZIP+4 Barcoded rate; (2) the total number of ZIP+4 barcoded pieces that qualify for the ZIP+4 Presort rate; (3) the total number of non-ZIP+4 barcoded pieces qualifying for the ZIP+4 Presort rate; (4) the total number of non-ZIP+4 barcoded pieces qualifying for Presorted First-Class rate. The last entry in category (5) will show the total number of pieces in the 3-digit portion of the mailing. d. Documentation for Residual Pieces (364.16). List, for each 5-digit or 3-digit ZIP Code (see 364.3), the (1) Number of ZIP+4 Barcoded Pieces Qualifying for the Nonpresorted ZIP+4 Barcoded Rate. This is the number of pieces that meet the size requirements in 521.111 and that bear a ZIP+4 barcode prepared in accordance with 551. (The nonpresorted ZIP+4 Barcoded rate is available only for cards.) (2) Number of ZIP+4 Barcoded Pieces Qualifying for the Nonpresorted ZIP+4 Rate. This is the number of pieces that do not meet the size requirements in 521.111 but that bear a ZIP+4 barcode prepared in accordance with 551. (3) Number of Nonbarcoded or 5-Digit Barcoded Pieces Qualifying for the Nonpresorted ZIP+4 Rate. This is the number of pieces prepared in either of the following two ways: (a) Pieces that bear neither the ZIP+4 barcode nor the 5-digit barcode, are prepared without a window in the barcode clear zone, contain the correct ZIP+4 code in the address, and meet the requirements in 540. (b) Pieces that bear a 5-digit barcode printed directly on the mailpiece (not on an insert that appears through a window), as provided in 552.31, contain the correct ZIP+4 code in the address, and meet the requirements of 540 and 552. Note: Pieces prepared with a window in the barcode clear zone through which a ZIP+4 barcode does not appear (there is either no barcode or there is a 5-digit barcode) do not qualify for the nonpresorted ZIP+4 rate under any circumstances. (4) Number of Nonbarcoded or 5-Digit Barcoded Pieces Subject to the Single-Piece First-Class Rate. This is the number of pieces prepared in any of the following three ways: (a) Pieces that do not bear a ZIP+4 barcode (there is either no barcode or there is a 5-digit barcode) and that contain a 5-digit ZIP Code in the address. The pieces may or may not contain a window in the barcode clear zone. (b) Pieces that do not bear a ZIP+4 barcode (there is either no barcode or there is a 5-digit barcode), contain the correct ZIP+4 code in the address, are prepared without a window in the barcode clear zone, and do not meet the requirements in 540. (c) Pieces that do not bear a ZIP+4 barcode (there is either no barcode or there is a 5-digit barcode) and that are prepared with a window in the barcode clear zone. Such pieces are ineligible for the nonpresorted ZIP+4 rate even if they bear the ZIP+4 code in the address and meet the requirements of 540. (5) Cumulative Total. This is the total of all pieces listed on preceding lines for the residual portion of the mailing plus the pieces for that line entry. Total each of categories (1) through (4) to provide: (1) the total number of ZIP+4 barcoded pieces qualifying for the nonpresorted ZIP+4 Barcoded rate, if applicable; (2) the total number of ZIP+4 barcoded pieces qualifying for the nonpresorted ZIP+4 rate; (3) the total number of non-ZIP+4 barcoded pieces qualifying for the nonpresorted ZIP+4 rate; (4) the total number of non-ZIP+4 barcoded pieces subject to the single-piece First-Class rate. The last entry in category (5) will show the total number of pieces in the residual portion of the mailing. e. Totals. Summarize the total number of pieces in each rate category in the mailing. For each category other than pieces qualifying for the 5-Digit ZIP+4 Barcoded rate, multiply the total number of pieces in the rate category by the additional postage due per piece for that rate category. For example, multiply the total number of pieces eligible for the ZIP+4 Presort rate by $0.009 (the difference between the 5-Digit ZIP+4 Barcoded rate and the ZIP+4 Presort rate). This shows the total postage due for each rate category in the mailing. Add the total amounts of postage due for each rate category to show the total amount of postage due. Also summarize, for the entire mailing, the total number of pieces that bear a properly prepared ZIP+4 barcode and the total number of pieces that do not. 364.22 Required Documentation for Permit Imprint Mailings a. Documentation. For identical weight permit imprint mailings, the lists and summaries indicated in 364.212b through 364.212e must be submitted with each mailing, unless submitted with the first mailing of a list or cycle as provided by 364.24. A summary of the lists must be included as part of the required documentation as follows: (1) Summarize the total number of pieces in each rate category in the mailing. (2) For each rate category shown in 364.22a(1), compute the postage charges at that rate (multiply the number of pieces qualifying for each rate category times the applicable rate for that rate category). (3) Add the total amounts of postage charges for each rate category to show the total amount of postage to be deducted from the permit imprint account. (4) Summarize, for the entire mailing, the number of pieces that bear a properly prepared ZIP+4 barcode (see 364.212b(1) through 364.212d(1)). Also show the total number of pieces that do not bear a properly prepared ZIP+4 barcode. Note: Mailings of nonidentical weight permit imprint pieces may be made only if optional or alternative postage payment procedures have been authorized in accordance with 145. b. Exception to Documentation. When all pieces in an identical weight permit imprint mailing bear a ZIP+4 barcode prepared in accordance with 551, and the pieces in the 5-digit, 3-digit, and residual presort levels are physically separated from each other upon presentation to the post office, as required in 364, no documentation is required. 364.23 Summary Listing Documentation Option 364.231 General. Mailers may obtain authorization to submit only summary listings, rather than both summaries and listings by ZIP Code sortation as required in 364.21 and 364.22. 364.232 Required Information a. For each sortation level (5-digit, 3-digit, and residual), the summary listing must show: (1) The number of ZIP+4 barcoded pieces that qualify for barcoded rates. (2) The number of ZIP+4 barcoded pieces that are contained in AADC or mixed AADC trays that qualify for ZIP+4 Presort rates (5-digit and 3-digit portions of the mailing only). (3) The number of nonbarcoded pieces or 5-digit barcoded pieces that qualify for the ZIP+4 Presort rate in the 5-digit and 3-digit sorted portions and that qualify for the nonpresorted ZIP+4 rate in the residual portion. (4) The number of nonbarcoded pieces or 5-digit barcoded pieces that qualify for the Presorted First-Class rate in the 5-digit and 3-digit sorted portions, and the number of pieces that qualify for the single-piece First-Class rate in the residual portion. b. A summarized total, by presort level rate, of the amount of postage due when all pieces are metered at the lower rate, or, when permit imprint is used, the summarized total by presort level rate of the total postage charges for the mailing. For all mailings, the total number of pieces that bear a properly prepared ZIP+4 barcode and the number of pieces that do not must also be provided. 364.233 Authorization. The general manager, rates and classification center, for the area where mailings are to be submitted, may authorize summary listing documentation in accordance with the approval procedures in 364.234. 364.234 Applications The mailer must submit a request to the postmaster, at each post office of mailing, that must include the following: a. The mailer's name, address, and telephone number. b. The name of the post office where mailings are to be presented. c. The frequency of mailing. d. The estimated volume per mailing. e. An explanation of the reason the mailer is unable to comply with the listing requirements in 364.21 or 364.22. f. An explanation of the procedures that to be used to develop the summary listing. g. Sample copies of documents such as computer printouts and records of postage meter readings that can be reviewed to substantiate the mailer's claim. h. A copy of any previous approvals by one or more rates and classification centers. 364.235 Approval Process. The mailer's application, and the postmaster's recommendation and supporting documentation, are in turn forwarded to the management sectional center (MSC) manager, mailing requirements, who reviews the file, requests additional documentation, and/or makes an on-site visit, if necessary, before recommending approval or disapproval. The file is forwarded to the general manager, rates and classification center (RCC), who approves the application if it is determined that the summary listing accurately reflects the composition of the mailing. If necessary, the general manager, RCC, may request further evidence of documentation. When the general manager, RCC, is satisfied that the documentation accurately shows the summary listing information required in 364.231, the mailer may be authorized to prepare a summary listing for each mailing. The authorization is sent directly to the mailer, and copies are sent to the MSC manager, mailing requirements, and the postmaster of the office of mailing, as applicable. The authorization remains valid for a period of 90 days. 364.236 Quarterly Inspections. The postmaster or designated representative must visit the mailer's premises on a quarterly basis to determine whether the mailer is following the approved procedures for determining the percentage of ZIP+4 barcoded pieces in the mailing, and proper postage, and must submit a report through the MSC to the RCC. If the mailer is following the approved procedures, the authorization is renewed for 90 days. 364.237 New Application Upon Change in Mailer's Operation. The mailer must submit a new application, in accordance with 364.233, anytime there is a change in the method used to determine the percentage of qualifying ZIP+4 Barcoded pieces in mailings and the proper postage. 364.24 Documentation Based on a Mailing List or Cycle. As an alternative to the requirements of 364.21 through 364.23, mailers may submit documentation based on a mailing list or cycle as prescribed by 364.5. 364.3 Automated Site Mailings - Preparation Requirements 364.31 General 364.311 Optional Use. As an alternative to the preparation requirements described in 364.1 and 364.2 for national mailings, mailers may follow the requirements in 364.3 and 364.4 for mailings destinating at automated sites. ("Automated sites" refers to the 3-digit ZIP Code areas and postal facilities listed in Exhibit 122.63m through Exhibit 122.63o.) Pieces for other destinations may be included in the residual portion of the mailing. 364.312 Rate Eligibility a. Qualifying Portion. Pieces placed in a group of 50 or more pieces destined for one of the 3-digit areas listed in Exhibit 122.63m qualify for the 3-digit ZIP+4 Barcoded rate if they bear a correct ZIP+4 barcode and meet the requirements of 325, or the ZIP+4 Presort or Presorted First-Class rate (see 325.123). b. Residual Portion. Pieces that are not placed in a group of 50 or more pieces (as required to be in the qualifying portion) are residual pieces and qualify for the nonpresorted ZIP+4 Barcoded rate if they meet the requirements of 325, or the nonpresorted ZIP+4 or single-piece First-Class rates (see 325.123). 364.32 Grouping Requirements. Whenever there are 50 or more addressed pieces for one of the 3-digit ZIP Code areas listed in Exhibit 122.63m, they must be placed together in a tray labeled to that destination, as required by 364.33. Groups of pieces for the same 3-digit area may be placed in more than one tray only if the groups in each tray contain a minimum of 50 pieces for the same 3-digit destination. (This facilitate verification by postal employees.) Mail for each 3-digit destination within a tray must be separated by visible index tabs or separator cards. 364.33 Traying Requirements 364.331 Three-Digit Trays. When there are enough pieces to the same 3-digit ZIP Code prefix to fill at least 3/4 of a tray, a 3-digit tray must be prepared for that destination. Three-digit trays that are less than 3/4 full may be prepared only if there is no corresponding SCF tray listed in Exhibit 122.63n into which lesser quantities may be placed, or where there is an overflow tray to a 3-digit destination (there is at least one 3/4 full tray to the 3-digit destination, and a remaining (overflow) volume that is insufficient to fill 3/4 of another tray to that 3-digit destination). Pieces in less than 3/4 full trays should be packaged to preserve their orientation and labeled. Three-digit trays must be labeled in the following manner: Line 1:City, two-letter state abbreviation, and 3-digit ZIP Code as shown in Exhibit 122.63m Line 2:FCM Z + 4 BARCODED Line 3:Mailer Name, Mailer Location 364.332 SCF Trays. After all possible 3-digit trays have been prepared, any remaining groups of 50 or more pieces each for the 3-digit areas served by one of the SCFs listed in Exhibit 122.63n must be placed in a tray labeled to that SCF. SCF trays must be labeled in the following manner: Line 1:"SCF" followed by the name of the SCF, the two-letter state abbreviation of the SCF, and the 3-digit ZIP Code prefix for the SCF shown in Exhibit 122.63n Line 2:FCM Z + 4 BARCODED Line 3:Mailer Name, Mailer Location 364.34 Residual Trays 364.341 General Preparation. Residual mail must be presented with, but clearly separated from, the qualifying portion of the mailing to facilitate verification. Unless documentation is not required as described in 364.412, the pieces must either be: a. separated into trays by rate category or, if postage is affixed to each piece at the correct rate, separated by pieces with and without a ZIP+4 barcode. If the pieces are not of identical weight, they must be further separated into groups of 100 pieces by separator tabs or rubber bands as described in 364.432a; or b. placed in trays in 5-digit or 3-digit ZIP Code sequence and accompanied by the documentation described in 364.432b. 364.342 Tray Labeling. Trays of residual pieces must be labeled as follows: a. Trays containing pieces with a ZIP+4 barcode. Line 1: ZIP+4 BARCODED RESIDUAL b. Trays containing only ZIP+4 coded pieces without a ZIP+4 barcode (not required if postage affixed to each piece at the applicable rate). Line 1: ZIP+4 RESIDUAL c. Trays containing only 5-digit ZIP Coded pieces without a ZIP+4 barcode, or, if postage is affixed to each piece at the applicable rate (see 364.341a) trays containing both ZIP+4 coded and 5-digit coded pieces with a ZIP+4 barcode. Line 1: RESIDUAL 364.4 Automated Site Mailings - Documentation Requirements 364.41 General 364.411 When Documentation is Required. Documentation described in 364.42 or 364.43, as appropriate for the postage payment method used, must be submitted with each mailing except when documentation is not required as described in 364.412, or when mailers are authorized to submit documentation based on a list or cycle as described in 364.5. The documentation is designed to show that the mailing meets the 85% requirement in 325.3, and, if the entire mailing is metered at the 3-digit ZIP+4 Barcoded rate, or paid by permit imprint, to show the amount of postage owed to the Postal Service. 364.412 When Documentation is Not Required. Documentation is not required if all pieces in the mailing bear a correct ZIP+4 barcode and a. each piece bears meter or precanceled stamps in the exact amount of postage at the rate for which it qualifies; or b. all pieces are of identical size and weight, are paid by permit imprint, and, when presented to the post office, the trays in the mailing are physically separated by the mailer into two groups -- qualifying and residual -- to allow postage verification by weighing. 364.42 When Exact Postage is Affixed to Each Piece in the Mailing 364.421 Qualifying Trays a. Required Listing. Documentation must be provided that lists by 3-digit ZIP Code area: (1) Number of pieces that bear a ZIP+4 barcode; (2) Total number of pieces for the 3-digit area; and (3) Cumulative (running) total for each line (3-digit ZIP Code) entry in the qualifying portion of the listing; (this total must accumulate for each entry in the qualifying portion of the mailing). b. Subtotals. Subtotals for the total number of pieces that bear a ZIP+4 barcode and the total number of pieces must be shown at the end of the qualifying portion of the mailing. 364.422 Residual Trays. Residual pieces must be presented as specified in 364.422a or documented as prescribed in 364.422b. a. Physical Separation. Residual pieces that bear a ZIP+4 barcode must be trayed separately from those that do not. If the pieces are not of identical weight, they must be further separated within each tray by tabs or rubber bands into groups of 100 pieces for postage verification. Trays must be labeled in accordance with 364.342. b. Listing. The pieces in the trays must be batched by 3-digit ZIP Code area and a listing prepared that shows, by 3-digit ZIP Code area, the number of pieces with a ZIP+4 barcode and the number of pieces without. A cumulative total must also be shown for each line (3-digit ZIP Code) entry in the residual portion. A summary of the total number of pieces in the residual portion with and without a ZIP+4 barcode must be shown. 364.43 When Postage is Paid by Permit Imprint, or When the 3-Digit Barcoded Rate is Affixed to Each Piece 364.431 Qualifying Trays a. Required Listing. Documentation must be provided that lists by 3-digit ZIP Code area: (1) Number of pieces that bear a ZIP+4 barcode and qualify for the 3-Digit ZIP+4 Barcoded rate; (2) Number of pieces that do not bear a ZIP+4 barcode and qualify for the ZIP+4 Presort rate (see 325.122b); (3) Number of pieces that do not bear a ZIP+4 barcode and qualify for the Presorted First-Class rate (see 325.122c); (4) Number of pieces for the 3-digit area; and (5) Cumulative (running) total for each line (3-digit ZIP Code) entry in the qualifying portion of the listing; this total must accumulate for each entry in the qualifying portion of the mailing. b. Subtotals. Totals for the number of pieces qualifying for the 3-digit ZIP+4 Barcoded rate, the ZIP+4 presort rate, and the Presorted First-Class rate must be shown at the end of the qualifying portion of the mailing. 364.432 Residual Trays. Residual pieces must be presented as specified in 364.432a or documented as prescribed in 364.432b. a. Physical Separation. Pieces qualifying for each of the three rate categories (nonpresorted ZIP+4 Barcoded, nonpresorted ZIP+4, and full single-piece rates as described in 325.122a through 325.122c) must be placed in separate trays. If the pieces are not of identical weight, they must be further separated in each tray by tabs into groups of 100 pieces for postage verification. Trays must be labeled as required by 364.342. b. Listing. The pieces in the trays must be batched by 3-digit ZIP Code area and a listing prepared that shows, by 3-digit ZIP Code area, the number of pieces with a ZIP+4 barcode that qualify for the nonpresorted ZIP+4 Barcoded rate, the number of pieces without a ZIP+4 barcode that qualify for the nonpresorted ZIP+4 rate, and the number of pieces without a ZIP+4 barcode that qualify for the single-piece First-Class rate (see 325.123a through 325.123c). A cumulative total must also be shown for each line (3-digit ZIP Code) entry in the residual portion. A total must also be shown for the number of pieces qualifying for each rate category. Trays must be labeled as required by 364.342. 364.433 General Summary a. Metered Mailings. A listing is required to show, for each rate category, the total number of pieces, the additional postage owed per piece, and the total additional postage due. For the entire mailing, the listing must also show the total additional postage due and the total number of pieces with and without a ZIP+4 barcode. b. Permit Imprint Mailings. A listing is required to show, for each rate category, the total number of pieces, the postage rate per piece, and the total postage owed. For the entire mailing, the listing must also show the total postage owed and the total number of pieces with and without a ZIP+4 barcode. 364.5 Submission of Documentation Based on a Mailing List or Cycle. As an alternative to submitting documentation with each mailing as required by 364.2 and 364.4, mailers may submit documentation based on a mailing list or mailing cycle under the following conditions: a. The mailing period for the list, or the duration of the mailing cycle, each as defined by the mailer, must be longer than 24 hours but not more than 1 week (7 consecutive days). The mailer must notify the post office where mailings are accepted of the first and last mailings, and the beginning and ending points of the time period, of the list or cycle. b. More than one list or cycle may be active at one time, but mailings from each must be prepared and presented separately, clearly identified, and accompanied by mailing statements that clearly relate to specific mailings. c. Compliance with the 85% requirement (see 325.3) may be based on the entire list or cycle. d. The documentation must contain the information described in 364.21, 364.22, 364.42, and 364.43, as applicable. e. The complete documentation for the entire mailing list or mailing cycle must be submitted with the first mailing from that list or cycle. f. The appropriate mailing statements must be submitted with each mailing when presented for acceptance. g. At the time the last mailing from a list or cycle is presented to the Postal Service, any discrepancies between the mail presented to and verified by the Postal Service, the mail described in the documentation, and the mail claimed on the corresponding mailing statements (in regard to quantity, rate eligibility, or postage) must be reconciled to the satisfaction of the Postal Service, and any additional postage that may be due must be paid by the mailer. 364.6 Mailing Statements. The mailer must submit a mailing statement with each mailing in accordance with 382.4. The appropriate mailing statement must be submitted in duplicate if all pieces in a mailing are metered at the ZIP+4 Barcoded rate and additional postage is paid through an advance deposit account in accordance with 382.31d or 382.33b. 365 ZIP+4 Presort First-Class Mail - National Mailings 365.1 General 365.11 Preparation. All pieces, whether or not they bear a ZIP+4 code, must be presorted together within the same packages and trays (or only to trays for residual pieces) as required by 367.1 and 367.2. The mailing must be documented as required in 365.3. 365.12 Rate Eligibility. See 324.12. 365.13 Minimum Quantity Requirements. Each ZIP+4 Presort mailing must contain at least 500 pieces. 365.14 ZIP Code Requirements. Except as provided in 534.3, at least 85% of the pieces in a combined mailing must bear the correct ZIP+4 code that is the finest level (depth) of ZIP+4 code listed in the current USPS ZIP+4 database for the delivery address on the piece, as specified in 534 and 541.2. Either the correct numeric ZIP+4 code in the address or the correct ZIP+4 barcode (prepared in accordance with 551) satisfies the requirement for a ZIP+4 code. Pieces bearing a ZIP+4 barcode must also bear either the correct numeric 5-digit ZIP Code or the correct numeric ZIP+4 code in the address. All pieces that do not bear the correct numeric ZIP+4 code must bear the correct numeric 5-digit ZIP Code in the address. 365.15 Addressing Requirements. Each piece in the mailing that bears a ZIP+4 code must also bear an accurate address as described in 534 and, unless the piece bears a ZIP+4 barcode prepared in accordance with 550, the address must appear in a standard addressing format (see 122.93). Addresses must be prepared using current Coding Accuracy Support System (CASS) certified address matching software as specified in 531 and 532. 365.16 Automation Compatibility. All pieces in the mailing must meet the physical requirements of 520. Pieces prepared with ZIP+4 barcodes must meet the requirements of 550; other pieces must meet the requirements of 540. 365.17 Rate Marking. All pieces must bear an appropriate rate category marking (see 362.5). 365.18 Postage Payment. If metered postage or precanceled stamps are affixed, all pieces may be metered/stamped at the lowest applicable rate. Additional postage must paid at the time of mailing. 365.19 Carrier Route Presort Mailings. Nonqualifying pieces of a carrier route mailing may qualify for the ZIP+4 rate only if all pieces in the mailing bear a ZIP+4 code and the pieces meet the requirements of 520, 530, and 540 (see 367.424). 365.2 Packaging and Traying Requirements 365.21 Qualifying Portion 365.211 Definition. The qualifying portion of the mailing includes pieces prepared in packages and trays as required by 367.1 and 367.2. 365.212 Preparation. Pieces in the qualifying portion must be packaged and trayed as required in 367.1 and 367.2, except that Line 2 of tray labels must identify the contents as ZIP+4 Presort in the following manner: a. For other than Mixed ADC trays FCM ZIP+4 PRESORT b. For Mixed ADC trays only MIXED ADC ZIP+4 PRESORT 365.22 Residual Portion 365.221 Definition. The residual portion includes those pieces that cannot be sorted into a package as required by 367.1 and 367.21 through 367.23. Residual pieces must be presented together with but clearly separated from the qualifying portion of the mailing to facilitate verification. 365.222 Preparation. When documentation is required (see 365.32), mailers must either: a. separately tray ZIP+4 coded residual pieces qualifying for the nonpresorted ZIP+4 rate and 5-digit ZIP Coded residual pieces qualifying for single-piece First-Class rates, and, if the pieces are not of identical weight, further separate in each tray by rubber bands or separator cards into groups of 100 each to facilitate verification of postage and the 85% requirement; or b. sort the residual pieces in trays batched by 3-digit ZIP Code area and provide a listing that shows for each 3-digit ZIP Code area the number of pieces with and without a ZIP+4 code. 365.223 Tray Labels. Trays of residual pieces must be labeled as required by 365.223a and 365.223b. a. Trays Containing ZIP+4 Coded Pieces Line 1:ZIP+4 PRESORT RESIDUAL b. Trays Containing Only 5-Digit Coded Pieces Line 1:RESIDUAL 365.3 Postage Payment 365.31 General. Mailings under this section at the time of acceptance must be accompanied by documentation supporting mailing statements which are required by 382.4. The types of documents required to support mailing statements are listed in 365.32 and 365.33. Documentation requirements differ when postage is affixed to each piece in the mailing and when the ZIP+4 rate pieces are physically separated from other pieces in the mailing. 365.32 Correct Postage Affixed to Each Piece. For the presorted portion of the mailing, the mailer may affix the applicable ZIP+4 postage to each piece that bears a ZIP+4 code, and affix the applicable Presorted First-Class postage rate to each piece that bears a 5-digit ZIP Code. For the residual portion, the mailer may affix the applicable nonpresorted ZIP+4 rate to each piece that bears a ZIP+4 code and affix the applicable full First-Class rate to each piece that bears a 5-digit ZIP Code without submitting any additional documentation other than the mailing statement. 365.33 ZIP+4 Rate Affixed to All Pieces or Postage Paid by Permit Imprint 365.331 Conditions. The mailer may use a permit imprint or affix the ZIP+4 rate to all pieces under the following conditions: a. If the ZIP+4 coded pieces are physically separated from all 5-digit ZIP coded pieces, no additional documentation other than the mailing statement is required. However, the residual portion of the mailing (see 365.5) must be trayed separately from the presorted portion, and each rate category in the residual portion must be divided into groups of 100 pieces for postage verification; or b. If the ZIP+4 coded pieces are not physically separated from all 5-digit ZIP coded pieces, a listing must be presented at the time of mailing showing by 5-digit and 3-digit ZIP Code separation the number of pieces which qualify for the Presorted First-Class rate and the number of pieces which qualify for the ZIP+4 Presort rate. A summary must also be provided showing the number of pieces which qualify for each rate category, the amount of postage due for each rate category, and the total postage due for the mailing. The difference between the ZIP+4 Presort postage affixed to all pieces in the mailing bearing a 5-digit ZIP Code and the Presorted First-Class postage must be paid at the time of mailing. In addition, a printout must be presented for the residual portion if the ZIP+4 coded pieces are not physically separated from the other pieces and the mailer wishes to pay the ZIP+4 (nonpresorted) rate for the ZIP+4 coded pieces. If the mailer is unable to physically separate the ZIP+4 coded pieces or is unable to prepare a printout for the residual portion, he may pay $0.048 per piece in addition to the amount affixed to each piece in the residual portion; or c. If the mailer is unable to meet the requirements of 365.32, 365.331a or 365.331b, a summary listing is required for each mailing list showing the number of pieces bearing a ZIP+4 code and the number bearing a 5-digit ZIP Code, provided the mailer has received written authorization in accordance with 365.334 through 365.336 from the general manager, rates and classification center, for the area where mailings are to be submitted. 365.332 Applications. The mailer's request must be submitted to the postmaster of the office of mailing, and it must include the following: a. Mailer's name, address, and telephone number. b. Name of post office where mailings are to be presented. c. Frequency of mailing. d. Estimated volume per mailing. e. An explanation of the reason the mailer is unable to comply with 365.32, 365.331a, and 365.331b. f. An explanation of the procedures used to develop summary listings. g. Sample copies of documents such as computer printouts and records of postage meter readings that can be reviewed to substantiate the mailer's claim. 365.333 Recommendation. Before recommending approval or disapproval, the postmaster or his designated representative must: a. Make an on-site visit to review the mailer's method for determining the number of pieces in each mailing list that bear a ZIP+4 code and the number that bear only a 5-digit ZIP Code. b. Compare the documents listed in 365.331c with the mailing list or a portion of a mailing to determine whether the documents are reliable. c. List the types of documents that were reviewed on-site and attach sample documents to the recommendation. 365.334 Approval. The mailer's application and the postmaster's recommendation and supporting documentation are in turn forwarded to the management sectional center (MSC) manager of mail classification who reviews the file, requests additional documentation and/or makes an on-site visit, if necessary, before recommending approval or disapproval. The file in turn is forwarded to the general manager, rates and classification center (RCC), who approves the application if it is determined that the summary listing accurately reflects the composition of the mailing. If necessary, the general manager, RCC, may request further evidence of documentation. When the general manager, RCC, is satisfied that the documentation accurately shows the number of ZIP+4 coded pieces and 5-digit coded pieces, he authorizes the mailer to prepare a summary listing for each mailing. The authorization is sent directly to the mailer, and copies are sent to the MSC manager, mail classification, and the postmaster of the office of mailing, as applicable. The authorization remains valid for 90 days. 365.335 Quarterly Inspections. The postmaster or designated representative must visit the mailer's premises on a quarterly basis to determine whether the mailer is following the approved procedures for determining percent of ZIP+4 mail and must submit a report to the rates and classification center through the MSC. If the mailer is following the approved procedures, the authorization is renewed for 90 days. 365.336 Additional Applications a. The mailer must submit another application in accordance with the requirements in 365.332 when this method for determining the ratio of ZIP+4 coded pieces changes. b. If the mailer plans to enter mailings in more than one MSC or region, he must submit his request along with supporting documentation and a copy of the authorization from the general manager, RCC (in accordance with the requirements in 365.332), to the postmaster, who submits it through channels to the general manager, RCC, of the area where mailings are to be presented. Upon receipt of the authorization, the mailer may mail under the provisions of 365. The postmaster or designated representative must visit the mailer's premises on a quarterly basis to determine whether the mailer is following the approved procedures for determining percent of ZIP+4 mail and must submit a report to the RCC through the MSC. 365.4 Mailing Statements. The mailer must submit a mailing statement for each mailing. When pieces for a mailing list or mailing cycle as defined by the mailer are mailed over a period of more than 1 day, each day the mailer must indicate on each mailing statement submitted under this procedure the mailing cycle or mailing list to which the pieces belong, and the final mailing statement for the mailing list or mailing cycle must accurately account for the full list or cycle. Under this procedure, a mailing statement may not be submitted for more than one mailing cycle or one mailing list. 365.5 Residual Pieces. Residual pieces are those pieces in a combined presort mailing that are not properly presorted in groups of 10 or more pieces to a 5-digit ZIP Code, or 50 or more pieces to a 3-digit ZIP Code. Residual pieces that qualify for the nonpresorted ZIP+4 rate (i.e., bear a correct ZIP+4 code and meet the requirements of 324.3 through 324.7) and that can be documented as qualifying as required in 365.3, may be mailed at the nonpresorted ZIP+4 rate. Postage at the full First-Class rates must be paid on all residual pieces that do not qualify for the nonpresorted ZIP+4 rate and on pieces that cannot be documented as qualifying as required in 365.3. 366 Combined Presort Mailings Destinating at Automated Sites 366.1 General Requirements 366.11 Optional Use. As an alternative to the preparation requirements described in 365 for national mailings, mailers may follow the requirements in 366 for mailings destinating at automated sites. ("Automated sites" refers to the 3-digit ZIP Code areas and postal facilities listed in Exhibit 122.63m through Exhibit 122.63o.) Pieces for other destinations may be included in the residual portion of the mailing. 366.12 Rate Eligibility. See 324.12. 366.13 Minimum Quantity. Each combined presort mailing must contain at least 500 pieces. 366.14 ZIP Code. Except as provided in 534.2, at least 85% of the pieces in a combined presort mailing must bear the correct ZIP+4 code that is the finest level (depth) of ZIP+4 code listed in the current USPS ZIP+4 database for the delivery address on the piece, as specified in 534 and 541.2. Either the correct number ZIP+4 code in the address or the correct ZIP+4 barcode (prepared in accordance with 551) satisfies the requirement for a ZIP+4 code. Pieces bearing a ZIP+4 barcode must also bear either the correct numeric 5-digit ZIP Code or the correct numeric ZIP+4 code in the address. All pieces that do not bear the correct numeric ZIP+4 code must bear the correct numeric 5-digit ZIP Code in the address. 366.15 Addressing. Except as provided by 531.16, 534.3, and 541.22, each piece in the mailing that bears a ZIP+4 code must also bear a complete address (see 122.92) and, unless the piece bears a ZIP+4 barcode prepared in accordance with 550, the address must appear in a standardized format (see 122.93). Addresses must be prepared using Coding Accuracy Support System (CASS) certified ZIP+4 matching software as specified in 531 and 532. 366.16 Automation Compatibility. All pieces in the mailing must meet the physical requirements of 520. Pieces prepared with ZIP+4 barcodes must meet the requirements of 550; other pieces must meet the requirements of 540. 366.17 Rate Marking. All pieces must bear an appropriate rate category marking (see 362.5). 366.18 Three-Digit Separations. Only pieces which are part of a group of at least 50 pieces for a 3-digit ZIP Code prefix listed in Exhibit 122.63m may qualify for mailing at presort rates under the provisions of 366. Mail for each 3-digit destination within a tray must be physically separated through the use of visible index tabs or separator cards. 366.19 Destination of Mailpieces. Only pieces destined for 3-digit ZIP Code prefixes listed in Exhibit 122.63m may be part of the mailing. Mailers may place pieces for 3-digit ZIP Code areas not listed in Exhibit 122.63m in the residual portion of the mailing. Such pieces must be paid for at the appropriate nonpresorted ZIP+4 or single-piece First-Class rates. 366.2 Grouping and Traying 366.21 Qualifying Portion 366.211 Definition. The qualifying portion of the mailing includes pieces that are grouped and trayed as required by 366.212 and 366.22. 366.212 Grouping Requirements. Whenever there are 50 or more addressed pieces for one of the 3-digit ZIP Code areas listed in Exhibit 122.63m, they must be placed together in a tray labeled to that destination, as prescribed in 366.22. Groups of pieces for the same 3-digit area may be placed in more than one tray only if the groups in each tray contain a minimum of 50 pieces for the same 3-digit destination. (This facilitates verification by postal employees.) Mail for each 3-digit destination within an SCF or AADC tray must be separated by visible index tabs or separator cards. 366.22 Traying Requirements 366.221 Three-Digit Tray Preparation and Labeling. When there are 500 pieces of the same 3-digit destination (or at least 3/4 of a tray), a 3-digit tray must be prepared. Only those authorized 3-digit ZIP Code prefixes in Exhibit 122.63m may be mailed under 366. When a tray contains mail for only one 3-digit ZIP Code prefix, the description SCF must not be printed on the city, state, 3-digit destination line. Three-digit trays must be labeled in the following manner: Line 1:City, state, 3-digit destination Line 2:Class, contents Line 3:Mailer, mailer location Example: ORLANDO FL 329 FCM ZIP+4 PRESORT FR Q MAILERS BALTO MD 366.222 SCF Tray Preparation and Labeling. When, after all 3-digit trays are prepared, there are 50 or more pieces for more than one 3-digit ZIP Code prefix and 500 pieces (or at least 3/4 of a full tray) for an SCF, an SCF tray must be prepared. Mail for each 3-digit destination within a tray must be physically separated by visible index tabs or separator cards. Only those authorized 3-digit ZIP Code prefixes in Exhibit 122.63m may be mailed under 366. SCF trays must be labeled in accordance with the requirements in Exhibit 122.63n, in the following manner: Line 1:SCF, state, SCF code Line 2:Class, contents Line 3:Mailer, mailer location Example: SCF ORLANDO FL 328 FCM ZIP+4 PRESORT FR Q MAILER BALTO MD 366.223 AADC Tray Preparation and Labeling. Groups of 50 or more pieces each that are left over after preparing all 3-digit and SCF trays must be placed in the appropriate automated area distribution center (AADC) trays. Mail for each 3-digit destination within a tray must be physically separated by visible index tabs or separator cards. Only those authorized 3-digit ZIP Code prefixes in Exhibit 122.63m may be mailed under 366. AADC trays must be labeled in accordance with the requirements in Exhibit 122.63o, in the following manner: Line 1:Automated area distribution center, code Line 2:Class, contents Line 3:Mailer, mailer location Example: DIS ORLANDO FL 328 FCM ZIP+4 PRESORT FR Q MAILERS BALTO MD Trays containing mail destinating in the AADC that serves the entry post office must be labeled to the local SCF for processing. Line 2 of the label must read: FCM Z+4 PRESORT RESID 366.23 Residual Portion 366.231 Definition. The residual portion includes those pieces that cannot be grouped and trayed as required by 366.21 and 366.22. Residual pieces also include pieces a mailer wishes to include for a 3-digit ZIP Code area not listed in Exhibit 122.63m that also do not qualify for the presort rates under 366.) Residual pieces must be presented together with but clearly separated from the qualifying portion of the mailing to facilitate verification. 366.232 Preparation. When documentation is required (see 365.32), mailers must either: a. separately tray ZIP+4 coded residual pieces qualifying for the nonpresorted ZIP+4 rate and 5-digit ZIP Coded residual pieces qualifying for single-piece First-Class rates, and, if the pieces are not of identical weight, further separate in each tray by rubber bands or separator cards into groups of 100 each to facilitate verification of postage and the 85% requirement; or b. sort the residual pieces in trays batched by 3-digit ZIP Code area and provide a listing that shows for each 3-digit ZIP Code area, the number of pieces with and without a ZIP+4 code. 366.233 Tray Labels. Trays of residual pieces must be labeled as follows: a. Trays Containing ZIP+4 Coded Pieces Line 1:ZIP+4 PRESORT RESIDUAL b. Trays Containing Only 5-Digit Coded Pieces Line 1:RESIDUAL 366.3 Documentation and Postage Payment. In addition to the documentation that may be required under 366.232b, mailings under this section at the time of acceptance must be accompanied by documentation supporting mailing statements which are required by 382.4. The types of documents required to support mailing statements for mailings presented under 366 are listed in 365.3. Required documentation depends on whether postage is affixed to each piece in the mailing and whether the ZIP+4 rate pieces are physically separated from other pieces in the mailing. 366.4 Mailing Statements. The mailer must submit a mailing statement for each mailing. When pieces for a mailing list or mailing cycle defined by the mailer are mailed over a period of more than 1 day, each day the mailer must indicate on each mailing statement submitted under this procedure the mailing cycle or mailing list to which the pieces belong, and the final mailing statement for the mailing list or mailing cycle must accurately account for the full list or cycle. Under this procedure, a mailing statement may not be submitted for more than one mailing cycle or one mailing list.