644.176  Postal Verification.
Upon request, the mailer must pull designated pallets for postal
verification for each mailing or mailing segment.  Only Postal Service
employees may select pallets for verification.

644.18  Copalletizing Multiple Bulk Third-Class Flat-Size Mailings

644.181  General.
The following procedures and requirements apply when a mailer wishes to
co-palletize more than one flat-size, bulk rate third-class mailing, subject
to the provisions of 623.63.

644.182  Eligibility Requirements.
The following requirements must be met prior to receiving an authorization
to co-palletize:

a.
The mailer must be authorized to palletize each specific type of mailing
under 644.1.  The total volume of the co-palletized mailings is used
to determine whether the minimum palletization requirements for a
co-palletizing authorization have been met.

b.
The mailer must be able to consolidate all independently prepared packages
from the subject mailings together on pallets to achieve the finest level of
presort possible for the co-palletized shipment and present the required
documentation at the time of mailing.

c.
The mailer must have the ability to computer generate lists for each
mailing, a summary list consolidating the multiple mailings being
co-palletized together, and a list of the contents of each individual pallet
by ZIP Code and presort level.

d.
Mailings must not be prepared or submitted under these co-palletization
procedures until an authorization to co-palletize has been granted.

644.183  Authorization

a.  Application.
The general manager, rates and classification center (RCC), serving the
post office where the mailer is located may authorize the co-palletization of
more than one flat-size third-class mailing.  The mailer or mailing agent must
submit Form 3856 to the field division general manager/postmaster of the
division serving the post office where the mailer's plant is located (see
132).  The mailer or mailing agent may obtain Form 3856 from the
field director, marketing and communications, at the division.  The field
division general manager/postmaster must review the mailer's application and
forward it to the transportation management service center (TMSC) with a
recommendation to approve the application and the reasons for the
recommendation.  Applications which are not recommended for approval are not
sent to the TMSC.  The division must send these applications directly to the
RCC, stating the reason for the recommended denial.

b.  Co-Palletizing More Than One Third-Class Flat-Size Mailing.
The general manager, RCC, may grant a single authorization for a mailer to
co-palletize different third-class flat-size mailings.  To qualify for
authorization to co-palletize, the mailer must do the following:


(1)
Submit a separate Form 3856 for each third-class mailing that is part of
the co-palletized shipment.

(2)
Submit a consolidated Form 3856 that includes all the third-class mailings
in the co-palletized shipment.

(3)
Be capable of consolidating independently presorted packages from each
mailing together on pallets to achieve the finest level of presort possible
for the co-palletized shipment and, at the time of mailing, present the
documentation required by 644.1.

c.  Documentation.
Mailers cannot co-palletize bulk third-class rate mailings until they have
received written authorization from the RCC to do so.  Requests must be
submitted 30 days prior to the anticipated date of the first mailing.  The
application must include the following information:

(1)
Name of mailer preparing the co-palletized shipment.

(2)
Plant location.

(3)
Names of products, publications, or mailpieces to be co-palletized.

(4)
Name of the owner of each mailing to be included as part of the
co-palletization authorization.

(5)
Method of paying postage.  (If by permit imprint, the mailer must list the
permit numbers to be used on the mailings.)

(6)
Anticipated date of first mailing.

(7)
A sample of the computer-generated lists required by 644.186a.

d.  Multiple Applications/Limitations.
A separate request must be submitted for each group of mailings that is
prepared under the co-palletization procedures.  Authorizations are not
granted to a mailer or mailer's plant for all third-class mailings prepared.
Each authorization is only for a specifically named group of mailings to be
co-palletized.  However, if the documentation for more than one mailer are
derived from the same computer software program and each mailer normally mails
at regular intervals, more than one request may be submitted on one
application, provided the name of each mailer and product is listed on the
application.

644.184  Concurrent Filing to Commingle Mixed Level Rate Mailings.
Mailers may concurrently apply for authorization to commingle mixed level
rate mailings on pallets under 644.17.


644.185  Termination of Authorization

a.
Each authorization to co-palletize multiple flat-size bulk third-class
mailings on pallets must include an expiration date not to exceed 2 years from
the date of the authorization.  A new request must be submitted, prior to the
expiration date, if renewal of the authorization is desired.

b.
An authorization may be canceled at any time by the mailer.

c.
The general manager, RCC, may cancel an authorization upon finding that the
mailer is unable to comply with any of the requirements of this section.

644.186  Preparation Requirements for Copalletized Flat-Size Mail

a.  Summary List.
At the time of mailing, the mailer must provide a computer-generated list,
in ZIP Code sequence, that itemizes the contents of each pallet and is
numbered identically to the corresponding pallets.  At a minimum, the list
must contain the following information:

(1)
If the carrier route presort rate is claimed, the number of pieces to each
carrier route, listed by individual mailing, and a total for each 5-digit ZIP
Code on the pallet.

(2)
If the 3/5 presort rate is claimed, the number of pieces that qualify for
the 3/5 presort rate for each 5-digit ZIP Code, listed by individual mailing
and a total for the pallet.

(3)
If the basic presort rate is claimed, a detailed list by ZIP Code
describing the number of pieces that qualify for the basic presort rate, by
individual mailing, and a total for each pallet.

(4)
A list for each individual mailing showing the number of pieces for each
rate category.

(5)
A summary list of the total number of pieces qualifying for each rate
category within each co-palletized shipment.  This list is a consolidation of
all the lists required in 644.186a(4).

(6)
The name of the mailer preparing the co-palletized shipment, the mailer's
location, the owner of each mailing included as part of the co-palletized
shipment, and the entry post offices.

Note:  The mailer must retain, for possible postal inspection, an
additional copy of the individual detailed summary lists for 90 days after the
mailing is dispatched.  Magnetic storage media can be used in lieu of
hard-copy printouts of the individual detailed summary lists, when approved by
the RCC.


b.  Pallet Preparation for Co-Palletized Flat-Size Mail

(1)  Weight and Volume

(a)
The minimum load for a pallet is 500 pounds of mail.  However, up to 10% of
the pallets in a mailing may contain less than 500 pounds of mail, but not
less than 250 pounds of mail.  The 10% allowance may only be applied to SCF
pallets.

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

(2)  Sortation.
Mailers must make up pallets as described in 644.142, beginning
with pallets for the finest sortation level (5-digit pallets) through the
largest authorized sortation level (optional BMC pallets).  When there are 500
or more pounds of mail for a destination, the mailer must prepare the
appropriate level pallet (see Exhibit 644.1). *viewer dmm645.pcx* ).

(3)  Labeling.
The mailer must affix clearly visible labels to at least two adjacent sides
of each pallet.

(a)
The pallet label and the corresponding computer-generated pallet list must
bear identical numbers so they may be identified for presort and postage
verification.  Mailers must place this pallet number in the lower right-hand
corner of the pallet label in a print size that can be easily recognized.

(b)
Mailers must also prepare pallet labels under 644.143.

(4)  Preparation

(a)
To facilitate postal verification, the mailer must, at the time of mailing,
indicate to postal acceptance personnel how packages are placed on the
pallets.  For example, all packages from a single mailing are placed on the
pallet by level of presort (e.g., 5-digit packages, followed by 3-digit
packages, etc.) before packages from another mailing are placed on the pallet.

(b)
The mailer must securely shrink-wrap, stretch-wrap, or otherwise secure
mail to pallets after the mail on the pallets has been verified by Postal
Service employees.

(c)
When a top cap is used on a pallet that weighs less than 1,000 pounds, the
mailer must write the top cap's tare weight on the corresponding pallet label
or in another prominent location on the pallet.

c.  Nonidentical Weight Mail.
Nonidentical weight mailings may be included as part of a co-palletized
mailing only if the mailing is prepared under a manifest mailing system
authorization (see 145.7); an optional procedure mailing system
authorization (see 145.8); an alternate mailing system authorization
(see 145.9), or if correct postage is affixed to each nonidentical
weight piece.

d.  Physical Characteristics

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

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

(3) Stacking Pallets.
Pallets must be stacked, whenever possible, under the following conditions:

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

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

(c)
Stacked pallets must be top-capped.

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

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

644.187  Postal Verification.
Upon request, the mailer must furnish designated pallets for postal
verification.  Only Postal Service employees may select pallets for
verification.

644.2 Palletizing Machinable Third-Class Parcels

Exhibit 644.2
(NOT SHOWN)


DMM646Exhibit 644.2]



644.21 Application

644.211  General.
The general manager, rates and classification center (RCC), serving the
post office where the mailer is located, may authorize the preparation of
third-class machinable parcels on pallets instead of in sacks.  The owner of
the mail, or the mailing agent in behalf of the client, must submit Form 3856
for each product to be palletized to the field division general
manager/postmaster of the division serving the post office where the mailer's
plant is located (see 132).  The owner/mailer may obtain Form 3856
from the field director, marketing and communications, at the division.

644.212 Approval or Denial

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

Note:  In certain instances, a third-class mailpiece can meet the
requirements for more than one processing category (i.e., flat-size or
machinable parcel).  When this occurs, the Postal Service determines the
appropriate processing category of the mailpiece and authorizes the mailer to
palletize under either 644.1 or 644.2.  This determination
is based on the processing category and related method of preparation that
provide the greatest benefit to the Postal Service.

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

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

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

644.22  Machinable Parcel Pallet Preparation

644.221 Weight and Volume

a.
The minimum mail load for a pallet is 650 pounds.

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

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

644.222 Sortation.
Pallets must be made up to the destinations described in 641.2
(see Exhibit 644.2). *viewer dmm646.pcx*

a. Five-Digit Pallets.
Whenever there are 650 or more pounds of mail for the same 5-digit ZIP Code
area, it must be placed on a pallet labeled to that 5-digit destination.
Pallet labels must be prepared and affixed to the pallet in accordance with
641.223.  The labels must contain the information required for
5-digit sack labels in 641.221, in the format required by that
section.

b. Destination BMC Pallets.
If, after preparing all required 5-digit pallets, there are 650 pounds or
more of mail destined for ZIP Codes served by the same BMC, it must be placed
on a pallet labeled to that destination BMC.  Pieces placed on BMC pallets
must be machinable (see 128).  The pallet labels must be prepared
and affixed to the pallet in accordance with 644.223.  The labels
must contain the information required for destination BMC pallets in
641.222, in the format required by that section.

c. Mixed BMC Pallets.
After preparing all required 5-digit pallets and destination BMC pallets,
the remaining pieces must be placed on pallets labeled to the origin BMC.  The
pallet labels must be prepared and affixed to the pallet in accordance with
644.223.  The labels must contain the information required for
origin BMC pallets in 641.223, in the format required by that
section.

644.223 Labeling

a. General.
Mailers must affix at least two clearly visible labels placed on two
adjacent sides of each pallet.  Pallet labels must be white and at least 8 by
11 inches, with letters at least 1/2 inch high.  Labels must contain the
information required in 644.142a and 644.142e.

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

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




Mixed                    MXD
Digit                    DG
Carrier Route            CR-RT
Carrier Routes          CR-RTS
Letters                 LTRS
Flats                   FLTS



d. Extraneous Information.
Extraneous information is information placed on a pallet label by the
mailer or list house providing the labels, which is not required by the Postal
Service.  Extraneous information is allowed on pallet labels provided it meets
the following criteria:

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

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

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

Note:  It is recommended that extraneous information appear only on
the bottom portion of the pallet label.

644.224 Physical Characteristics

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

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

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

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

(2)
Both pallets must be top-capped.

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

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

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

644.225 Rate Eligibility.
Subject to 624.2, pieces may be eligible for the 3/5 presort rate
when prepared under 644.222.  Pieces correctly presorted under
644.222b to the service area of the origin BMC are eligible for the
3/5 presort rate.

644.23 Presentation of Mailings.
Mailers who want to present palletized machinable parcels which are subject
to the 3/5 presort and carrier route presort bulk third-class rates must
obtain approval under the provisions of 644.17 and meet all other
criteria to qualify for the bulk rates of postage.

644.24 Renewal or Cancellation of Authorization

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

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

644.3 Palletizing Combined Mailings of Thirdand Fourth-Class Machinable
Parcels

644.31 General.
The following procedures and requirements apply when a mailer combines
thirdand fourth-class machinable parcels on the same pallets under the
provisions in 623.64 and 721.3.

644.32 Eligibility Requirements.
A mailer must meet the following requirements to combine thirdand
fourth-class machinable parcels on pallets in a mailing:

a.
The mailer must be authorized to palletize each specific type of mailing
under 644.2.  The total volume of the combined mailings determines
whether the minimum palletization volume requirements for a combined thirdand
fourth-class mailing on the same pallets are met.

b.
The mailer must presort the parcels to achieve the finest level of presort.

c.
The mailer must provide the required documentation at the time of mailing.

644.33 Request for Authorization

644.331 General.
A mailer must submit a written request to the general manager, rates and
classification center (RCC), serving the post office where the mailer is
located.  The request must be submitted on Form 3856, completed under
644.2 and 767.6, and must include information on each
mailing combined.

644.332 Separate Applications.
See 623.647b.

644.333 Concurrent Filing for Palletization, Commingling Mixed Level Rate
Mailings on Pallets, and Combining Thirdand Fourth-Class Machinable Parcel
Mail on the Same Pallets.
Mailers may concurrently apply for authorization to palletize under
644.2, combine thirdand fourth-class machinable parcels on the same
pallet under 644.3, and commingle mixed level rate mailings on
pallets under 644.17, by submitting:

a.
Form 3856 completed under 644.21 for each different mail product
and with item 8D checked "Yes."

b.
A written request with the information required by 623.647 and
644.173a.

644.334 Renewal or Termination of Palletization Authorization

a. Renewal.
Each authorization expires 2 years from the effective date of the
authorization.  A combination authorization expires concurrently 2 years from
its effective date of authorization, and any single authorization included in
the combination may not exceed 2 years.  The mailer/owner must submit a new
request if a renewal of the authorization is desired.

b.  Termination.
The Postal Service may terminate an authorization upon finding that the
mailer has not complied with the requirements for mail preparation and
combining machinable thirdand fourth-class mail on the same pallets.  A
written notice is sent to the mailer stating the reasons for termination.

644.34 Documentation and Verification Requirements

644.341 Summary Listing.
At the time of mailing, the mailer must provide a computer-generated
summary listing that describes in ZIP Code sequence the contents of each
pallet.  Listed items must be numbered identically to the corresponding
pallets.  At a minimum, the listing must include:

a.
Detailed list by ZIP Code showing the number of pieces by class of mail and
qualifying rate.

b.
Summary showing the total number of pieces by class of mail.

c.
Detailed list by ZIP Code, qualifying rate, and individual mailing
indicating the number of pieces mailed at the different rates and a
combination total for each pallet.

d.
Name of the mailer preparing the combined mailing, the mailer's location
(address) the owner of each product in the combined mailing, and the entry
post office.

644.342 Retention.
The mailer must retain, for possible postal inspection, a copy of the
individual summary lists for 90 days after the dispatch of the mailing.
Magnetic storage media may be used instead of hardcopy printouts of the
individual detailed summary lists, if approved as part of the initial Postal
Service authorization.

644.343 Pallet Labeling.
The pallet label and the corresponding computer-generated pallet list must
be identically numbered so they may be identified and used for presort and
postage verification.  Mailers must place this number in the lower right
corner of the label in a print size that can be easily recognized.  Mailers
must prepare pallet labels under 644.353.

644.344 Pallet Load Description

a.
To facilitate postal verification, the mailer must describe to the postal
employees performing verification how parcels are placed on the pallets.  For
example, all third-class parcels destined for a 5-digit ZIP Code are grouped
together on the pallet, followed by all fourth-class parcels.

b.
The mailer must provide a written description of the control methods used
to ensure that parcels have been placed on correct pallets.

c.
The mailer must shrink-wrap, stretch-wrap, or otherwise secure mail to
pallets after postal verification has been completed.

d.
When top caps are used on pallets weighing less than 1,000 pounds, the
mailer must annotate on the pallet label or other prominent place the tare
weight of the top cap.

644.345 Postal Verification.
If requested, the mailer must present designated pallets for postal
verification for each mailing or mailing segment.  Only postal employees may
select pallets for verification.

644.35 Pallet Preparation for Combined Mailings of Thirdand Fourth-Class
Machinable Parcels

644.351 Weight

a.
The minimum mail load for a pallet is 500 pounds of mail.  However, up to
10% of the pallets in a mailing may contain less than 500 pounds of mail, but
not less than 250 pounds of mail.

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

644.352 Sortation.
Pallets must be made up to the destinations described below:

a. Five-Digit Pallets.
Whenever 500 pounds or more of mail is for the same 5-digit ZIP Code, the
mail must be placed on pallets labeled to that 5-digit destination.  Labels
must be prepared and affixed to the pallets in accordance with
644.353.  The labels must contain the information required in
641.232a for 5-digit sack labels.

b. Destination BMC Pallets.
If, after preparing all required 5-digit pallets, there are 500 pounds or
more of mail destined for ZIP Codes served by the same BMC, the mail must be
placed on pallets labeled to that destination BMC.  Labels must be prepared
and affixed to the pallets in accordance with 644.353.  The labels
must show the same information required in 641.232b for destination
BMC sacks.

c. Mixed BMC Pallets.
After preparing all required 5-digit pallets and destination BMC pallets,
the remaining pieces must be placed on pallets labeled to the origin BMC.
Labels must be prepared and affixed to the pallet in accordance with
644.353.  The pallet labels must contain the same information
required in 641.232c for origin BMC sacks.

644.353 Labeling

a. General.
Mailers must affix at least two labels to each pallet on two adjacent
sides.  Labels must be white and at least 8 by 11 inches, with letters at
least 1/2 inch high and clearly visible.  Labels must show the information
required in 641.232a through 641.232c.

b. Destination Line.
If space for the destination line on a pallet label is not sufficient for
all required information, the destination ZIP Code may be placed,
right-justified (far right side), on the line immediately below the
destination line.  As an alternative, the destination city name may be
abbreviated, using standard abbreviations.

c. Contents Line.
If space for the contents line on a pallet label is not sufficient for all
required information, this information may be continued, right-justified (far
right side), on the next line immediately below the contents line.  As an
alternative, the following authorized abbreviations may be used:




Mixed                    MXD
Digit                    DG
Carrier Route            CR-RT
Carrier Routes           CR-RTS
Machinable               MACH
Thirdand Fourth-Class  3C/4C



d. Post Office of Mailing Line

(1) Preceding Required Information.
The following information on pallet labels may appear before the city and
state of the post office of mailing:

(a)
Mailer's name or abbreviation.

(b)
"Mailer" or "From (FR)."

(c)
"Entered at" or similar notation.

(2) Following Required Information.
Mailer codes and other extraneous information may appear to the right of
the city and state of the post office of mailing.  If such information is
shown, it must not consist of a numbered series that resembles a ZIP Code or
3-digit ZIP Code prefix.

e. Extraneous Information.
Extraneous information may be placed on a pallet label by the mailer or
list house providing the labels.  This information is not required by the
Postal Service.  Extraneous information is allowed if it meets the following
conditions:

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

(2)
The information is not placed on or between the lines reserved for
information required by the Postal Service, specifically on or between lines 1
(destination) and line 2 (contents).  Only a blank line may appear between
these required printed lines.

(3)
Mailer codes and extraneous information may appear between the contents
line and the post office of mailing line.  If such information is shown, it
must not consist of a numbered series that resembles a ZIP Code or 3-digit ZIP
Code prefix.

(4)
Mailers may place codes or any other information on optional fourth or
fifth lines of the pallet labels appearing below the post office of mailing
line.

(5)
A 1-inch clear space must surround lines reserved for information required
by the Postal Service.

644.354 Physical Characteristics.
Whether provided by the Postal Service or the mailer, pallets that are used
for combined mailings of thirdand fourth-class machinable parcels must be
constructed of high-quality material that can support gross weight loads of
2,200 pounds and maximum volumes of 65 cubic feet.  Pallets must be 48 by 40
inches and designed for four-way entry by fork trucks and two-way entry by
pallet jacks.

644.355 Wrapping.
Mailers must wrap pallets of mail with shrinkable or stretchable plastic
strong enough to maintain the integrity of the palletized mail throughout its
transport and handling.  The Postal Service recommends that the pallets also
be banded.

644.356 Top Caps.
Top caps made of wood or an equally protective material, and of the same
surface dimensions as the pallet, are required on loaded pallets weighing less
than 1,000 pounds gross.  Top caps must be affixed to the pallet with adequate
strapping or banding.

644.357 Stacking Pallets.
Pallets should be stacked, whenever possible, but only if the following
conditions are met:

a.
The combined gross weight of stacked pallets does not exceed 2,200 pounds.

b.
The total height does not exceed 7 feet.

c.
The stacked pallets are top-capped.

d.
The pallets are banded together with adequate strapping material to
maintain their integrity throughout tranport and handling.

e.
The heaviest pallet is on the bottom and the lightest on the top.

644.36 Rate Eligibility.
Subject to 624.2, third-class parcels in a combined mailing may
be eligible for the 3/5 presort rate when 650 or more pounds of third-class
parcels are palletized to a 5-digit destination (under 644.352a) or
to a destination BMC (under 644.352b).  Pieces correctly presorted
under 644.352b to the service area of the origin BMC are also
eligible for the 3/5 presort rate.  The documentation required by
624.24 must accurately report pieces claimed at the 3/5 presort rate.

644.37 Combination of 3/5 and Carrier Route Rate Pieces.
Mailers who want to combine machinable thirdand fourth-class parcels that
are subject to the 3/5 presort and carrier route presort bulk third-class
rates must obtain approval under the provisions of 644.17 and meet
all other criteria to qualify for applicable bulk postage rates.

644.4 Palletizing Sacks

644.41 Application

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

644.412 Approval or Denial

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

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

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

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

644.42 Package Preparation.
See sections 641.12 and 641.41.

644.43 Sack Preparation

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

644.432 Sack Labeling.
Sacks must be labeled under the requirements in 641.13,
641.22, and 641.42, as appropriate. It is preferred that
sack labels include a barcode, prepared as required in 646.

644.433 Sack Sortation.
See 641.13 and 641.42.

644.44 Pallet Preparation

644.441 Weight and Volume

a.
The minimum mail load for a pallet is 650 pounds.

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

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

644.442 Sortation.
Mailers must place sacks on pallets as described below, beginning with
pallets for the finest sortation level (5-digit pallets) through the largest
authorized sortation level (optional bulk mail center (BMC) pallets).  When
there are 650 or more pounds of mail for a destination, the appropriate level
pallet must be prepared.

a. Five-Digit Pallets.
Whenever there are 650 or more pounds of sacks for the same 5-digit ZIP
Code area they must be placed on a pallet labeled to that 5-digit destination.
 Pallet labels must be prepared and affixed to the pallet in accordance with
644.443.   The labels must contain the information  required for
5-digit sack labels in 641.135a in the format required by that
section.

b. Optional Multicoded City Pallets.
If, after making up all required 5-digit pallets, there are 650 or more
pounds of sacks remaining that are destined for the same optional multicoded
city, mailers may prepare an optional multicoded city pallet labeled to that
city.  Exhibit 122.63a includes a list of optional multi-ZIP Coded
post offices and the ZIP Code areas served by each.  The pallet labels must be
prepared and affixed to the pallet in accordance with 644.443.  The
labels must contain the information required for optional multicoded city sack
labels in 641.135b, in the format required by that section.

c. Three-Digit Pallets.
If, after preparing all required 5-digit and optional multicoded city
pallets, there are 650 or more pounds  of sacks remaining that are destined
for the same 3-digit ZIP Code prefix area, mailers must prepare a 3-digit
pallet labeled to that 3-digit destination.  The pallet labels must be
prepared and affixed to the pallet in accordance with 644.443.  The
pallet labels must contain the information required for 3-digit sacks in
641.135c in the format required by that section.

d. SCF Pallets.
If, after preparing all required 5-digit, optional multicoded city, and
required 3-digit pallets, there are 650 or more pounds of sacks remaining that
are destined for ZIP Codes served by the same sectional center facility (SCF)
serving more than one 3-digit ZIP Code area, they must be placed on a pallet
labeled to that SCF.  Exhibit 122.63d includes a list of SCFs serving
more than one 3-digit ZIP Code area, the 3-digit ZIP Code areas served by
each, and the proper destination line (line 1) for sack/pallet labels.  SCF
pallets must always contain packages for two or more 3-digit ZIP Code areas
served by the same SCF.  The pallet labels must be prepared and affixed to the
pallet in accordance with 644.443.  The pallet labels must contain
the information required for SCF sacks in 641.135d in the format
required by that section.

e. Optional BMC Pallets.
After all required 5-digit, optional multicoded city, required 3-digit, and
required SCF pallets have been prepared, a BMC pallet may, at the option of
the mailer, be prepared when there are 650 or more pounds of sacks remaining
that are destined for ZIP Codes served by the same BMC.  Pallets must be
labeled to the destination BMC in accordance with 644.443.  The
pallet label must contain the information required for destination BMC sacks
under 641.222 in the format required by that section.  Mailers
wishing to take advantage of the DBMC rate must prepare and label pallets as
shown in Exhibit 122.63s.  All other pallet preparation requirements
apply.

Note:  The contents line on pallet labels must reflect the processing
category of addressed pieces as shown on sack labels.

644.443 Pallet Labels

a. General.
The mailer must affix at least two clearly visible labels on two adjacent
sides of the pallet.  Pallet labels must be white and at least 8 by 11 inches,
with letters at least 1/2 inch high.  Labels must contain the information
required in 644.442a through 644.442e.

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

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



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




d. Additional Information.
If a 5-digit pallet contains only carrier route sacks, the contents line of
the pallet labels must show the words CARRIER ROUTES, or the authorized
abbreviation, after the description of contents (3C Flats, 3C LTRS, etc.)

Note:  Five-digit presort level rate sacks and third-class carrier
route rate sacks may not be part of the same mailing (see 652.2) and
they may not be palletized on the same pallet except when authorized under
644.17.

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

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

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

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

644.444 Physical Characteristics

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

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

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

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

(2)
Both pallets must be top-capped.

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

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

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

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

644.46 Renewal or Cancellation of Authorization

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

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

645  Bundling Instead of Sacking (Bedloaded Bundles)

645.1 Authorization

645.11 Application.
The general manager, rates and classification center (RCC), serving the
post office where a mailer is located, may authorize the preparation of
third-class mail in bundles outside of mailsacks, if such preparation is
beneficial to the Postal Service.  Generally, authorization is granted only
when the number of bundles does not exceed the number of sacks which would
otherwise be used in a mailing.  The owner, or the mailing agent on behalf of
the client, must submit an application for each product to the general
manager, RCC, serving the post office where the mailer's plant is located (see
132).  The following information must be furnished with the
application:

a.
Name of client and frequency of mailing.

b.
Identity of post offices to which shipments are to made.

c.
Approximate number of copies and number of bundles to each office.

If the authorization is granted, the owner or the mailing agent must be
prepared to submit information for future mailings of the publication, such as
that required in the original application, at the request of the general
manager, rates and classification center.

645.12 Reviewing and Processing.
The application and supporting material must be reviewed by the
transportation management service centers (TMSCs), affected division
officials, and by all others concerned.  The general manager, rates and
classification center (RCC), to whom the application is submitted issues to
the owner, with a copy to the mailing agent, the authorization or denial of
the request to bundle instead of sack the publication for all post offices of
entry.  Copies of the authorization are forwarded to all affected entry post
offices and RCCs by the authorizing general manager, RCC.  Authorizations are
granted for a specific period of time, not to exceed 2 years.  At least every
6 months, the general manager, RCC, or authorized representative must request
the owner or the mailing agent to submit the information required in the
application for an upcoming issue and perform a review of the mailer's
continued eligibility to bundle instead of sack.  Authorizations to bundle
instead of sack are revoked when it is determined that method of preparation
is no longer beneficial to the Postal Service.

645.2 Package Preparation

645.21 Weight and Volume.
A package, which is a group of pieces secured together as one unit, must
contain a minimum of two pieces and must not exceed 40 pounds in weight.

645.22 Sortation.
Mailers must presort pieces and secure them into packages, as required in
641.12 and 641.41.

645.23 Labels.
Packages must be labeled under 641.12 and 641.41.

645.3 Bundle Preparation

645.31 Weight and Volume.
A bundle, which is a group of two or more packages prepared as a unit, must
weigh at least 20 pounds or be of at least 1,000 cubic inches in volume.  The
weight of a bundle must not exceed 40 pounds.

645.32 Sortation.
Packages prepared under 645.2 must be consolidated into bundles on
the same basis as sacks (see 641.135 and 641.42).  A bundle
must be prepared when there are 20 or more pounds or 1,000 or more cubic
inches of packages for a particular level of sortation.  Lesser quantities
must be included in bundles for the next larger level of sortation.

645.33 Labels.
All bundles must be appropriately labeled on top with a nonstandard facing
slip to show destination, contents, and origin, as required with sacks (see
641.135 and 641.42).

Exception:  Carrier route and 5-digit bundles need not bear a facing
slip, since the package label on the top piece is sufficient to direct the
bundle to its proper destination. However, 5-digit bundles which are not
labeled using the 5-digit optional endorsement line, and which contain the
carrier route information in the address area under 641.411b, must
bear a red Label D.  A large package is also exempted from the facing-slip
requirement, since the package label is sufficient.

Note:  3/5 presort rate packages and bundles and carrier route presort
rate packages and bundles may not be part of the same mailing.

645.34 Physical Characteristics of Bundles

a. Nonlocal Processing and Delivery.
Mailings must be machinable by Postal Service sack-sorting equipment,
unless they consist of pieces intended only for local area delivery (see
645.34b).  The mailer must satisfy the Postal Service that mailings
are machinable.  This can be verified by having the mailing post office
test-process 10 or more bundles of each representative bundle size expected in
the mailings on two or more passes through a bulk mail center (BMC).  The
potential of the bundles to cause damage to other mail must also be tested.
Ordinarily, bundles require cross-strapping and heavy-gauge shrinkor
stretch-wrap to ensure their integrity in the mailstream.

b. Local Processing and Delivery.
When third-class mailings are entered for local processing and delivery
(i.e., same sectional center facility area), they need not meet the
requirements of 645.34a.  However, bundles must be securely bound to
withstand handling without breakage or damage and to prevent injury to postal
personnel or damage to mechanized sorting systems.  Binding material must be
applied at least once around the length and girth.  The use of metal strapping
and wire to secure bundles is prohibited.

646 Optional Use of Barcoded Sack Labels

646.1 General.
Sack labels supplied by the Postal Service are machine-printed and contain
barcodes that enable scanning and sortation by automated equipment.
Alternatively, mailers who produce their own sack labels are encouraged to
prepare them with a barcoded label that meets the criteria in 646.2
and 646.3.

646.2 Sack Label Specifications

646.21 Color.
Sack labels must be printed on white or manila-colored label stock.

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

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

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

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

646.24 Printed Text Lines.
The preparation of the printed text lines must be under 641.133,
641.224, and 641.423.  Extraneous information as described
in 441.323 may be printed on the label as long as it appears to the
right of the "quiet zone" (see 646.35) and does not interfere with
scanning and sorting by automated equipment.

646.25 Printing Density.
The human-readable content of sack labels must be machine-printed at five
lines per inch.  The preferred machine-printed pitch is 12 characters per
inch.  If the information to be contained on the label cannot be shortened
using acceptable postal abbreviations, it may be printed at a pitch of up to
15 characters per inch, provided at least 22 human-readable characters fit on
the label without interfering with the "quiet zone" (see 646.35).
The minimum acceptable height for the destinating ZIP Code must be 0.111 inch
(8 point).  The minimum acceptable character height for all other information
contained on lines 1, 2, and 3 must be 0.083 inch (6 points).

646.3 Barcode Specifications

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

646.32 Barcode Location.
The barcode must be located on the left side of the sack label.  A clear
space must be maintained between both the left edge of the sack label and the
barcode and between the barcode and the printed text lines, under the
requirements in 646.35 (see Exhibit 646.32). *viewer dmm650.pcx*


Exhibit 646.32
(NOT SHOWN)

DMM650Exhibit 646.32, Sample Barcoded Sack
Label]



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

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

646.35 Clear Space (Quiet Zone).
There must be a clear area (or "quiet zone") at each end of the barcode
that is no less than 10 times the "X" dimension width and at least as high as
the height of the bars in the barcode.  The reflectance of the clear area must
meet the requirement for minimum space reflectance (see 646.34).

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

647  Trays

647.1  General

647.11 Automation-Compatible Mailpieces.
ZIP+4 and ZIP+4 Barcoded rate mailings of automation-compatible letter-size
mailpieces may be prepared in trays rather than in sacks subject to the
requirements of this section.  Trays are the preferred container for
automation-compatible mail.  Mailers may also follow the preparation
requirements in 560.

647.12 Other Mailpieces.
The use of trays for other third-class mail is prescribed in
641.138 and 641.43.

647.2  Preparation of Mail in Trays

647.21 Packaging

647.211  General.
Mailings prepared in trays must be packaged as required by 641.12
or 641.41, except as provided below.

647.212 Carrier Route Trays.
Pieces being claimed at the carrier route presort rate need not be prepared
in packages only when all the mail in those packages would be placed in the
same tray for the same carrier route.  Carrier route packages are required
when the corresponding pieces are being placed in 5-digit or 3-digit carrier
routes trays.

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

647.214 Optional City Trays.
When a mailer chooses to perform optional city sortation, the pieces need
not be prepared in optional city packages when all the pieces in those
packages are for the same optional city and are placed in an optional city
tray labeled to that optional city (see Exhibit 122.63a).
Five-digit packages are required when there are 10 or more pieces to the same
5-digit destination and those packages are placed in other than 5-digit trays.
 It is recommended that optional city packages be made when the corresponding
pieces for an optional city are placed in other than an optional city tray.

647.215 Three-Digit Trays.
Pieces need not be prepared in 3-digit packages only when all the mail in
those packages is placed in the same tray for the same 3-digit ZIP Code
destination.  Five-digit packages are required when there are 10 or more
pieces to the same 5-digit destination and when those packages are being
placed in other than 5-digit trays.  Three-digit packages are required when
the corresponding pieces are being placed in other than 3-digit trays.

647.22 Traying

647.221 General.
Trays must be prepared in the same sequence as required for sacks under
641.135.

647.222  Minimum Volume per Tray.
A tray must be prepared for a required presort destination when the
corresponding pieces (or packages of pieces), when reasonably compressed, fill
3/4 or more of the tray.  Trays that contain less may not be prepared unless a
sack containing less than 125 pieces and 15 pounds of pieces to the same
destination is permitted under 641.135, 641.421b,
641.426, or 641.427, or as provided in 647.223.

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

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

647.225 Tray Labels.
A tray label must be securely affixed to the end of each tray.  Tray labels
are subject to the same requirements as specified for sack labels in
641.133, 641.135, 641.423, 641.425,
and 646, except that additional information must be added to the
second (contents) line as specified in 628.27 and 628.37.

647.23 Optional Sortation to Automated Sites.
Mailers may prepare 3/5 ZIP+4 rate and 3-digit ZIP+4 Barcoded rate mailings
without making 5-digit packages or trays if

a.
All pieces in the mailing are for destinations within the 3-digit ZIP Code
ranges listed in Exhibit 122.63m;

b.
All pieces are prepared in optional city or 3-digit packages and optional
city or 3-digit trays; and

c.
Pieces destinating in other ZIP Code areas are prepared as a separate
mailing.

647.3 Rate Eligibility

647.31 Presort.
Mailings prepared in trays remain eligible for the basic presort, 3/5
presort, carrier route presort, and walk-sequence rates if the applicable
requirements in 624.1, 624.2, 624.3, or
624.8 are met, and sufficient volume of mail per tray (see
647.222) is generated for the applicable required destinations.

647.32 Automated Rates.
Mailings prepared in trays remain eligible for the ZIP+4 and ZIP+4 Barcoded
rates if the applicable requirements in 628 are met.

647.33 Destination Entry.
Mailings prepared in trays remain eligible for the destination entry rates
if the applicable requirements in 624.7 are met.

650 Mailing

651 Single-Piece Rates--Place of Mailing

651.1  Payment by Regular Adhesive Stamps.
Mail bearing regular adhesive stamps may be placed in collection boxes,
mailchutes, receiving boxes, or other places where mail is accepted.

651.2  Payment by Metered Postage.
Metered single-piece rate third-class mail may be deposited in any street
collection box, mailchute, receiving box, cooperative mailing rack, or other
place where mail is accepted under the jurisdiction of the licensing post
office (i.e., the post office shown in the meter stamp).  Mailers may deposit
metered mail at other than the licensing post office only as provided in
144.522, 144.523, and 144.8.

651.3  Payment by Precanceled Stamps or Permit Imprints.
Precanceled stamp mailings and permit imprint mailings must be brought to
the post office as required by 143.15, 145.54, and
145.62.

652 Bulk Rates

652.1  Place of Mailing

652.11  Regular Bulk Rates.
Except for plant-loaded mailings prepared and accepted as provided in
154, mailings at the regular bulk rates must be brought to a bulk
mail acceptance unit of the post office where the postage permit or license is
held and the annual bulk mailing fee (see 612.1 and 623.1)
has been paid.  Mailings must be deposited at the locations and times
designated by the postmaster.  Mailers may deposit metered mail at other than
the licensing post office only as provided in 144.522,
144.523, and 144.8.   Mail is accepted at the mailer's
plant when a plant-load authorization has been obtained under 154.

652.12 Special Bulk Rates.
Mailings at the special bulk rates must meet the place of mailing
requirements of 652.11.  In addition, mailings at the special bulk
rates may only be made at post offices where a nonprofit authorization has
been granted under 626 (see 625.1).

652.2 Separation of Mailings.
Pieces mailed at the carrier route presort rate and pieces mailed at the
3/5 presort rate may not be part of the same mailing and may not be reported
on the same mailing statement unless authorized under 644.17.

660 Payment of Postage

661 Method of Payment

661.1 Single-Piece Mailings.
Mailers of third-class mail at other than bulk rates may use any method of
paying postage, and may mail any number of pieces at one time.  Exception:
When permit imprints are used, a minimum of 50 pounds or 200 identical pieces
must be mailed (see 145).

661.2 Bulk Mailings at the Basic Presort, 3/5 Presort, and Carrier Route
Presort Rates

661.21 Identical-Weight Pieces.
Postage may be paid by any of the following methods:

a. Meter Stamps.
See 144.

(1) Bulk Rate Mailings.
Bulk rate mailings may be mailed with the correct metered postage affixed
to each piece (i.e., pieces eligible for the carrier route presort rate are
metered at that rate, while pieces eligible for the 3/5 presort rate are
metered at the 3/5 presort rate, and pieces subject to the basic presort rate
are metered at the basic presort rate).

(2) Carrier Route Presort.
Carrier route presort rate mailings may have metered postage affixed at the
carrier route presort rate to each piece in the mailing.  Additional postage
for pieces subject to the basic presort rate must be paid by means of a meter
strip affixed to the back of the mailing statement that must accompany the
mailing, or through an advance deposit account as provided in Handbook F-1,
Post Office Accounting Procedures, 524.  Section 624.33
limits basic presort rate material to 5% of the total qualifying presorted
carrier route pieces addressed to that 5-digit area.

(3) 3/5 Presort.
3/5 presort rate mailings may have metered postage affixed at the 3/5
presort rate to each piece in the mailing.  Additional postage for pieces
subject to the basic presort rate must be paid by means of a meter strip
affixed to the back of the mailing statement that must accompany the mailing,
or through an advance deposit account as provided in Handbook F-1, 524.

b. Precanceled Stamps or Precanceled Stamped Envelopes.
Requirements prescribed for meter stamps in 661.21a also apply to
mailings with precanceled postage (see 143).

c. Permit Imprints (Cash).
See 145.

661.22 Nonidentical-Weight Pieces

661.221 Pound Rates

a. Permit Imprint.
When pieces in a nonidentical mailing are subject to a pound rate, postage
may be paid by permit imprint, provided the mailer has been specifically
authorized by the general manager, rates and classification center, serving
the office of mailing, in accordance with 145.7, 145.8, or
145.9.  Pieces subject to a pound rate are also subject to a
per-piece rate (see Exhibit 611.2a).

b. Meter Stamps.
Postage may be paid by meter stamps on mailings subject to a pound rate.
Each piece must have full metered postage affixed.  Postage for each piece is
computed by multiplying the weight of the piece (in decimal pounds) by the
pound rate, adding this amount to the applicable per-piece rate and rounding
the sum up to the nearest tenth of a cent or whole cent that can be printed,
except as authorized in 661.221d.

c. Precanceled Stamps.
Postage may be paid by precanceled stamps on mailings subject to a pound
rate.  Each piece must have precanceled stamp postage affixed.  Postage for
each piece is computed by multiplying the weight of the piece (in decimal
pounds) by the pound rate, adding this amount to the applicable per-piece
rate, except as authorized by 661.221d.

d. Alternative.
As an alternative to 661.221b and 661.221c, mailers may
affix the applicable per-piece rate to each piece and pay the pound rate for
the mailing through a permit imprint advance deposit account.  The mailer is
then required to submit both Form 3602-R (or Form 3602-N if authorized to
claim special rates) and Form 3602-PC.  When the alternative method of paying
postage is used, the endorsement "Pound Rate Pd via Permit" must appear on
each mailpiece.  Markings made by postage meter, special slug, ad plate, or
other suitable means ensure a legible endorsement.

661.222 Minimum Per-Piece Rates.
Postage may be paid by meter stamps, precanceled stamps, or precanceled
stamped envelopes for mailings of nonidentical weight pieces subject to the
minimum per-piece rate.  Nonidentical-weight pieces subject to minimum
per-piece charges may be paid by permit imprint only under a manifest mailing
system, optional procedure, alternate mailing system procedure, or ZIP+4
Barcoded rate combined mailing procedure authorized by the general manager,
rates and classification center (see 145.7, 145.8,
145.9, and 661.4).

661.223 Combination of Rates.
Postage for mailings that include pieces subject to pound rates and pieces
subject to minimum per-piece charges may be paid by meter stamp.  Postage may
also be paid by permit imprint under a manifest mailing system, optional
procedure, or alternate mailing system procedure when authorized by the
general manager, rates and classification center (see 145.7,
145.8, and 145.9).

661.23 Single-Piece Weight.
The weight of a single piece must be entered on the appropriate mailing
statement as "nonidentical" whenever a mailing contains pieces having
different weights.  In addition, the mailer must complete the appropriate
items on the mailing statement as usual to show the pounds and/or pieces and
the corresponding postage amounts at the applicable rate levels, and the total
pounds, pieces, and postage for the entire mailing.  Bulk third-class mailings
of nonidentical weight pieces may be paid by permit imprint only after
specific authorization by the general manager, rates and classification center
(see 145.7, 145.8, or 145.9).

661.3  Bulk Mailings at ZIP+4 and ZIP+4 Barcoded Rates

661.31  Permit Imprint.
See 145.

661.311  Identical-Weight Pieces.
Identical-weight mailings may have postage paid by permit imprint.
Mailings at the 3/5 ZIP+4, basic ZIP+4, 5-digit ZIP+4 Barcoded, 3-digit ZIP+4
Barcoded, and basic ZIP+4 Barcoded rates must be accompanied by the
documentation required in 628.13, 628.24, and
628.34 or, if Chapter 5 preparation is used, by 562.16,
562.25, 563.16, 563.24, or 564.6.

661.312 Nonidentical-Weight Pieces.
Pieces of nonidentical-weight may be paid by permit imprint only under a
manifest mailing system, optional procedure, or alternate mailing system
procedure authorized by the general manager, rates and classification center
(see 145.7, 145.8, and 145.9).

661.32  Meter Stamps

661.321 General.
Meters may be used to pay postage for mailings of both identical weight and
nonidentical weight pieces.  Postage may be paid by either of the methods
described in 661.322 and 661.323 (see 144 for
additional information on postage meters).

661.322 Correct Postage Affixed to Each Piece

a.  3/5 ZIP+4 and Basic ZIP+4 Mailings.
Pieces qualifying for the 3/5 ZIP+4 rate, the 3/5 presort rate, the basic
ZIP+4 rate, and basic presort rate are each metered at the rate for which they
qualify.  (See 624.24, 628.13, and 628.24 for
documentation requirements, or, if Chapter 5 is used, 562.16 and
562.25.)

b.  ZIP+4 Barcoded Mailings.
Pieces qualifying for the 5-digit ZIP+4 Barcoded rate, the 3-digit ZIP+4
Barcoded rate, the basic ZIP+4 Barcoded rate, the 3/5 ZIP+4 rate, the 3/5
presort rate, the basic ZIP+4 rate, and the basic presort rate are each
metered at the rate for which they qualify.  (See 624.24,
628.13, and 628.34 for documentation requirements, or, if
Chapter 5 is used, 563.16, 563.24, or 564.6.)

661.323  Lowest Rate in Mailing Affixed to Each Piece

a.  3/5 ZIP+4 and Basic ZIP+4 Mailings.
All pieces may have metered postage affixed at the 3/5 ZIP+4 rate.
Additional postage for pieces subject to the basic presort rate must be
determined from the documentation required to be submitted with each mailing
as specified in 624.24, 628.13, 628.24, or if
Chapter 5 is used, 562.16 or 562.25.  The total additional
postage must be paid by a meter strip affixed to the back of the mailing
statement required to accompany the mailing, or through an advance deposit
account as provided in Handbook F-1, 524.

b.  ZIP+4 Barcoded Mailings

(1)
Where a 5-digit presort tier is included in the mailing, all pieces may
have metered postage affixed at the 5-digit ZIP+4 Barcoded rate.  Additional
postage for pieces subject to the 3-digit Barcoded rate, basic Barcoded rate,
3/5 ZIP+4 rate, 3/5 presort rate, basic ZIP+4 rate, and basic presort rate,
must be determined from the documentation required to be submitted with each
mailing as specified in 624.24, 628.13, and
628.34, or if Chapter 5 is used, 563.16, 563.24,
or 564.6.  The total additional postage must be paid by a meter
strip affixed to the back of the mailing statement required to accompany the
mailing, or through an advance deposit account as provided in Handbook F-1,
524.

(2)
Where a mailing prepared under 628.36, 563.1,
563.2, or 564 does not include a 5-digit presort tier, all
pieces may be metered at the 3-digit ZIP+4 Barcoded rate, and additional
postage for pieces subject to the 3/5 ZIP+4 rate, 3/5 presort rate, basic
Barcoded rate, basic ZIP+4 rate, and basic presort rate, must be determined
from the documentation and paid as described above.

661.324 Neither Lowest Rate Nor Correct Postage Affixed to Each Piece

a. General.
Where it is not practicable for the mailer to (1) affix the exact postage
to each piece as prescribed in 661.322 or (2) to affix the lowest
postage rate to all pieces in the mailing as prescribed in 661.323,
postage for the mailing is affixed to all pieces as provided in
661.324b and 661.324c.

Exception:  If precanceled stamps are not available at either the
lowest rate or at the exact rate of postage for ZIP+4 and ZIP+4 Barcoded rate
mailings, the procedures in 661.33 may be followed for precanceled
stamp mailings at these rates provided the same denomination of precanceled
stamp is affixed to each piece in the mailing.

b. Adding Postage.
 Additional postage must be paid based on the difference between the lowest
rate affixed to any piece in the mailing and the appropriate rate for each
rate level in the mailing.  No refund is paid on any piece where postage is
affixed at a rate higher than the lowest rate claimed for or affixed to any
piece.  For example, if a ZIP+4 Barcoded mailing contains pieces bearing ZIP+4
Barcoded postage, 3/5 presort rate postage, 3/5 ZIP+4 postage, and basic ZIP+4
postage, postage for the mailing is assessed based on the difference between
the ZIP+4 Barcoded rate and the rate for which each piece qualifies according
to the documentation required for ZIP+4 Barcoded rate mailings.

c. Payment.
The total additional postage must be paid by a meter strip affixed to the
back of the mailing statement that must accompany the mailing, or through an
advance deposit account as provided in Handbook F-1.

661.33  Precanceled Stamps or Precanceled Stamped Envelopes.
The requirements described in 661.32 also apply to mailings with
precanceled postage.  (See 143 for additional information on
precanceled postage methods.)  Mailers at ZIP+4 and ZIP+4 Barcoded rates
should be advised that precanceled stamps may not be available at all
applicable rate denominations.  Precanceled stamp mailers may affix a
nondenominated precanceled stamp (if available) to each piece in the mailing,
or a precanceled stamp of a denomination less than the applicable ZIP+4
barcoded rate (provided the precanceled stamps do not contain an inappropriate
rate marking) to each piece in the mailing.  The same denomination of stamp
must be affixed to each piece in the mailing.  Mailers must pay the additional
postage totaling the difference between the face value of the precanceled
stamp and the amount of actual postage owed for each piece in the amount
documented under 624.24, 628.13, and 628.34, or
563.16, 563.24, or 564.6.  The total additional
postage must be paid by a meter strip affixed to the back of the mailing
statement required to accompany the mailing, or through an advance deposit
account as provided in Handbook F-1, 524.

661.4 ZIP+4 Barcoded Rate Combined Mailings With Different Postage
Payment Methods

661.41 General.
Combined mailings may be prepared under the following conditions:

a.
Subject to 661.41 through 661.5, a mailer may be
authorized to prepare third-class ZIP+4 Barcoded rate mailings composed of
pieces paid under the permit imprint system combined with pieces bearing meter
stamps and/or precanceled stamps.  For this procedure, the term "mailer"
identifies the presenter of the mail -- the entity preparing the combined
mailing and presenting it to the Postal Service.  Authorization to prepare
such combined mailings must be granted by the general manager, rates and
classification center (RCC), serving the mailer's plant.  No pieces in a ZIP+4
Barcoded rate combined mailing may weigh more than 3 ounces.  Pieces claimed
at regular third-class bulk rates must not be combined with pieces claimed at
special bulk third-class rates for qualified nonprofit organizations.

b.
The mailer pays postage due the Postal Service for the permit imprint mail
and any precanceled stamp mail through an advance deposit account for combined
mailings.  Requests for refunds of overpayments of postage for the metered
portion of combined mailings resulting from the application of barcodes are
processed under 147.43.

661.42 General Qualification Requirements

661.421 Authorization.
Before preparing combined mailings, the mailer must be authorized to
prepare ZIP+4 Barcoded rate combined mailings by the general manager, RCC,
under the procedures in 661.46.

661.422 Production of Mailings.
The mailer must have an automated mailing system that produces ZIP+4
Barcoded rate mailings under 563, 564, 628, and
647, as applicable.  The mailer must demonstrate that the mailing
system can correctly produce ZIP+4 Barcoded rate combined mailings and
accurately calculate postage according to all applicable regulations.

661.423 Postage Payment

a. Meter Stamps.
Pieces in a combined mailing may bear meter stamps, provided that the
meters are licensed at the post office where the mailings are entered, unless
otherwise authorized under 144.8.  All meter stamps must be prepared
under 144.4.  Metered mail must have postage affixed at the 5-digit,
3-digit, or basic ZIP+4 Barcoded rate; 3/5-digit or basic ZIP+4 rate; 3/5
presort rate; or basic presort rate.

b. Precanceled Stamps.
Pieces in a combined mailing may bear precanceled stamps under
143.1.  The precanceled stamp permits must be held at the office of
mailing.  Any denomination of precanceled stamp currently allowed on pieces
included in a third-class ZIP+4 Barcoded rate mailing (for regular rate or
special rate mailings, as applicable) may be affixed to pieces in a combined
mailing.

c. Permit Imprint (Advance Deposit Account).
Pieces in a combined mailing may bear the permit imprint of the mailer or
of any of the mailer's clients under 145.  The permits must be held
at the office of mailing.  Postage for the permit imprint portion of each
combined mailing presented must be paid through a separate advance deposit
account for the combined mailings maintained by the mailer at the office of
mailing.  The Postal Service makes deductions only from this account and not
from individual client accounts, regardless of the permit numbers or company
permit imprints appearing on pieces in the combined mailing.

d. Additional Postage for Postage Affixed Pieces.
Any additional postage due for postage-affixed pieces in a combined mailing
is deducted from the mailer's advance deposit account.

661.424 Fees and Permits.
The mailer must ensure that all applicable fees for the current 12-month
period are paid and that permits and licenses for pieces included in combined
mailings are current and maintained at the office of mailing.

661.425 Identification of Individual Jobs Included in Combined Mailing

a. Description.
The mailer must maintain records (e.g., customer/job work tickets and/or
customer billing summaries) that identify the segments merged to form the
combined mailing in a manner that enables the Postal Service to identify the
following: clients/jobs represented; number of permit imprint pieces; number
of metered pieces by the amount of postage affixed; number of precanceled
stamped pieces by the amount of postage affixed.

b. Separation of Jobs.
Within a specific job during the initial count by the mailer's automated
mailing system, all pieces must have postage paid by the same method (e.g.,
all permit imprint, all metered, all precanceled stamped); all metered pieces
must have the same amount of postage affixed; and all precanceled stamped
pieces must have the same amount of postage affixed.

c. Retention.
The supporting records must be retained for 90 days from the date the
combined mailing is mailed.  The information must be maintained in a central
location.  Reports, such as customer/job mail reports and mail summaries, must
be in the form of computer-generated printouts or RCC-approved computer media
(such as diskettes or magnetic tapes).

661.426 Reject Mail from Mailer's Automated Sorting System

a. Mail Bearing Meter Stamps or Precanceled Stamps.
Metered and precanceled stamped pieces rejected for any reason by the
mailer's automated sorting system (e.g., mail cannot be scanned, a ZIP+4
barcode cannot be applied), and that are pulled out of the combined mailing
stream and brought to another separate sorting operation, must be documented
and have postage affixed at a rate no lower than the 3/5 presort rate for
letters.  The mailer must apply additional postage to all pieces that bear
meter or precanceled stamp postage in an amount that is less than the
applicable 3/5 presort rate for letters to bring the mail up to the minimum
rate.

b. Permit Imprint Mail.
Permit imprint pieces rejected for any reason by the mailer's automated
sorting system (e.g., mail cannot be scanned, a ZIP+4 barcode cannot be
applied), and that are pulled out of the combined mailing stream and brought
to another separate sorting operation, must be documented and weigh-verified
for proper payment of postage.

661.43 Mailing Statements

661.431 Submission.
The mailer must submit complete and accurate mailing statements, by postage
payment method, for each combined mailing supported by the documents required
in 661.5.  In addition, the mailer must submit the combined mailing
postage payment worksheet described in 661.44 with each combined
mailing.  The required mailing statements must each bear the words "Combined
Mailing" at the top and be attached to the associated postage payment
worksheet when the mailing is submitted to the post office employee for
verification.  Mailers must use the method in 661.432 for mailing
statement preparation.

661.432  Complete and Accurate Statements by Postage Payment Method

a.  General.
The mailer must submit complete and accurate mailing statements for each
postage payment method.  The mailing records must support the rates claimed,
by rate level, for each postage payment method.  The mailer's automated
mailing system must track and report the actual destination and presort level
of all pieces in the combined mailing by method of postage payment and by rate
of postage affixed for all metered and precanceled stamped pieces (see
661.5 for documentation requirements).  The final postage charges for
each method of postage payment (amount to be deducted from the mailer's
advance deposit account for permit imprint and precanceled stamped pieces and
the amount of refund requested for meter stamp pieces) must be calculated
according to 661.432c, 661.432d, and 661.432e.
The mailing statements for each postage payment method are treated separately
for accounting purposes according to 661.432c, 661.432d,
and 661.432e.

b. Completion of Part A, Mailing Statement

(1) Pieces Bearing Meter Stamps or Precanceled Stamps.
The net rate of postage for each rate level (before any adjustments are
made for the amount of postage affixed) is multiplied by the total number of
pieces qualifying for that rate in the portion of the combined mailing
represented by the mailing statement (meter stamps or precanceled stamps).
Postage for metered pieces and precanceled stamped pieces is reported in Part
A on a separate Form 3602-PC.  These calculations represent the postage due
before any adjustments are made for postage affixed to stamped and metered
pieces.

(2) Permit Imprint Pieces.
The total number of permit imprint pieces qualifying for each rate level is
reported in the Count (Pcs) column of Form 3602-R or Form 3602-N, as
applicable.  The total postage charge for all pieces is reported by rate level
in the Charge column in Part A of Form 3602-R or Form 3602-N.

c. Calculating Postage Due for Permit Imprint Mail.
The mailer must calculate the net postage due the Postal Service for the
permit imprint mail on the reverse side of Form 3602-R or Form 3602-N in Part
A according to 661.432b(2).  The total of the postage charges for
each rate level is the net postage due the post office for the permit imprint
portion of the combined mailing.  If nonidentical-weight permit imprint pieces
are included in the mailing, the mailing statement must be annotated
accordingly.

d. Calculating Postage Due for Metered Mail.
The mailer must calculate the net postage due the Postal Service or the
amount of refund requested by the mailer for the metered mail on a separate
sheet attached to the Form 3602-PC used to calculate metered postage.  This
calculation is performed as follows:

(1)
Show the total postage charge for the metered portion of the combined
mailing as calculated in Part A under 661.432b.

(2)
Multiply the number of pieces by the amount of postage affixed.  Separate
calculations must be shown for each different rate of postage affixed.  The
products of these calculations represent the total postage already paid for
the metered mail.  As an alternative, the mailer may multiply the number of
pieces claimed at each rate level by the amount of postage overpaid or
underpaid for those particular pieces to calculate the amount of postage
overpaid or underpaid for the metered portion of the combined mailing.

(3)
Subtract the products of the calculations in (2), representing prepaid
postage, from the total postage charge (total amount due) in (1) to determine
the net postage charge for the metered mail.  If this calculation indicates
that the mailer owes the Postal Service additional postage for the metered
mail, this postage is paid through the mailer's advance deposit account for
combined mailings.  If this calculation results in a negative number,
indicating that postage for the metered portion of the combined mailing is
overpaid due to a finer level of presort being achieved and value being added
with the application of barcodes, the mailer may submit Form 3533 requesting a
refund according to 661.41b.

e.  Calculating Postage Due for Precanceled Stamp Mail.
The mailer must calculate the net postage due the Postal Service for the
precanceled stamped mail on a separate sheet attached to the Form 3602-PC used
to calculate precanceled stamped postage.  This calculation is performed as
follows:

(1)
Show the total postage charge for the precanceled stamped portion of the
combined mailing as calculated in Part A under 661.432b.

(2)
Multiply the number of pieces by the amount of postage affixed.  Separate
calculations must be shown for each different rate of postage affixed.  The
products of these calculations represent the total postage already paid for
the precanceled stamped mail.  As an alternative, the mailer may multiply the
number of pieces claimed at each rate level by the amount of postage underpaid
for those particular pieces to calculate the amount of postage due for the
precanceled stamped portion of the combined mailing.

(3)
Subtract the products of the calculations in (2), representing prepaid
postage, from the total postage charge in (1) to determine the net postage due
the post office for the precanceled stamped mail.

f.  Reporting Postage on Combined Mailing Postage Payment Worksheet.
The mailer must report the calculations in 661.432b,
661.432c, 661.432d, and 661.432e and calculate
the net postage charge for the entire combined mailing on the combined mailing
postage payment worksheet described in 661.44.  The net postage
charge is determined by adding the total postage due for the permit imprint
mail and the total postage due for the precanceled stamped mail.  If metered
postage is overpaid (see 661.432d), the amount overpaid is
subtracted from the sum of the permit and precanceled stamped postage due to
calculate the net postage owed the post office.  If postage for the metered
mail is underpaid, the amount of postage due is added to the sum of the permit
and stamped postage due to calculate the net postage due the post office.

661.44  Combined Mailing Postage Payment Worksheet.
This worksheet must be completed for every ZIP+4 Barcoded rate combined
mailing and submitted with the associated mailing statements required by
661.43.  The worksheet identifies the total postage charges from
Part A of each mailing statement and postage adjustments made to reflect
postage affixed to pieces bearing precanceled stamps and meter stamps.  It
also identifies the number of trays or sacks in the mailing.  It must include
all information in the format shown on the sample worksheet in Exhibit
382.64.*viewer dmm382.pcx*

661.45  Mailer Internal Quality Control.
The mailer must establish and use quality control procedures before merging
different mailpieces into a combined presorted mailing that ensure that:

a.
Meter dates are correct.

b.
Meter impressions are legible.

c.
Permits and licenses are current at office of mailing.

d.
Postage on mail bearing meter stamps and precanceled stamps is affixed at a
rate acceptable for inclusion in the mailing (see 661.423a and
661.423b).

e.
Barcodes are in compliance with all requirements for quality, accuracy, and
placement (see 550).

f.
Mailings are prepared according to the requirements for
automation-compatible mail in 520, 530, 540, and
550, as applicable.

g.
Correct information about jobs is entered by mailer's employees into the
automated mailing system to calculate accurately the amount of postage paid
and the amount due for the mailing (e.g, method of postage payment, amount of
postage affixed for metered and precanceled stamped mail).

661.46 Authorization Procedures

661.461 Application.
A mailer must submit a written request for authorization to prepare ZIP+4
Barcoded rate combined mailings to the postmaster serving the mailer's
production plant.  The postmaster reviews the request and forwards it through
the MSC and field division manager, mailing requirements, (who reviews the
application for completeness) to the general manager, RCC, serving the
mailer's plant.  In this request, the mailer must:

a.
Identify the methods of postage payment to be combined and the rates of
postage to be affixed to stamped or metered pieces.

b.
Describe all steps in the automated mailing system to be used to prepare
combined mailings and include a flow chart showing how jobs are handled from
the time received from clients or other departments through the time the
combined mailing is presented to the post office for verification and
acceptance.

c.
Submit samples of all reports that the mailing system can generate
(numbered and annotated to describe step-by-step how the data is obtained and
how each data element is supported and can be verified) and describe at which
step in the mailing operation the reports may be generated, and how the
reports relate to each other and to the preparation of mailing statements.

d.
Describe how rejects/nonscans (e.g., pieces that cannot be read by the
automated mailing system, pieces automatically rejected because they cannot be
assigned a ZIP+4 barcode when the mailer's automated mailing system is in the
throttle mode) are handled throughout the mail preparation process.

e.
Provide a detailed description of internal quality control procedures that
ensure mailings are properly prepared, from the time received from clients or
other areas in the mailer's operation through the time the combined mailing is
submitted, and that correct postage is paid (that the mailing statement data
and supporting documents are accurate), and submit copies of any quality
control instructions and checklists used.

661.462 Granting or Denying an Application

a. General.
The general manager, RCC, reviews the application and all supporting
materials to determine its completeness and whether the mailer's system meets
the conditions for participation in the combined mailing program.  Within 30
days of receipt of a complete application, an RCC representative with other
post office representatives visits the mailer's plant to review the mailing
system, the accuracy of the reports used to support combined mailings, and the
internal quality control procedures before recommending approval or denial of
an application.

b. On-Site Review.
During the on-site review by Postal Service representatives, the mailer is
required to produce a controlled test mailing with the appropriate supporting
documentation.  The documentation is compared with the combined mailing
produced by the mailing system to determine its accuracy.  The mailer is also
required to demonstrate that the internal quality control procedures are
satisfactorily administered and the mailing system provides acceptable
documentation by which the Postal Service can verify the accuracy of the
volume counts and postage rates claimed for each postage payment method.

c. Approval.
If the general manager, RCC, finds that the mailer meets the prescribed
requirements, a 90-day interim authorization to prepare combined mailings is
granted.  Representatives of the RCC and the local post office responsible for
administering the procedures review the mailer's combined mailing operations
during that time to determine whether the mailer is in compliance with all
applicable requirements.  If, after this review, the mailer's program meets
all applicable requirements, the RCC prepares an authorization that describes
the types of mail, the methods of postage payment, the reports that must be
submitted with combined mailings, and the records that must be maintained to
support combined mailings in accordance with the requirements of this section.
 The authorization document must be signed by the mailer, the general manager,
RCC, the postmaster of the local post office serving the mailer's plant, and
the field division general manager/postmaster or representative before it is
effective.

d. Authorization Period.
An authorization to prepare ZIP+4 Barcoded rate combined mailings is
granted for a period not to exceed 2 years (see 661.464).

e. Denial.
If an application is denied, the general manager, RCC, notifies the mailer,
the administering post office, and the field division, in writing, stating the
reasons for the denial.  The mailer may appeal the denial,  within 15 days
from the receipt of the notice by the mailer, by filing a written appeal,
including additional evidence as to why the combined mailing system should be
authorized, with the director, Office of Classification and Rates
Administration, U.S. Postal Service (for address, see Address List in
Appendices).  The director issues the final agency decision.

661.463 System Modification.
Mailers must provide advance written notice to the RCC of any plans to
modify or adjust the system used to prepared combined mailings.  The RCC
determines whether the proposed changes affect the calculation of postage,
generation of required mailing documentation, or mail presorting and whether
they affect the terms of the mailer's authorization to prepare combined
mailings.

661.464 Authorization Renewals.
A ZIP+4 Barcoded rate combined mailing authorization may be renewed after a
review conducted before the expiration date by the general manager, RCC, or a
designated person, if the general manager determines that the mailer remains
qualified.  A new agreement is initiated under the following conditions:

a. Approved Without Modifications.
If the review of the mailer's combined mailing system indicates that the
mailer may continue to combine mailings under this system without any
modifications to the agreement, the existing agreement is extended for a
2-year period.  The 2-year extension may be accomplished by an addendum
showing the new expiration date, signed by the administering postmaster, the
field division general manager/postmaster, the general manager, RCC, and the
mailer.

b. Approved With Mailer Modifications.
If the review of the mailer's combined mailing system reveals that the
system has been modified, without prior notification to the RCC as required in
661.463, but still remains qualified, a new agreement must be
prepared that outlines in detail the modifications.  The revised agreement
must be signed by the administering postmaster, the field division general
manager/postmaster, the general manager, RCC, and the mailer.

c. Approved With Postal Service Modifications.
If the review of the mailer's combined mailing system reveals that the
system can be renewed only with modifications required by the Postal Service,
the mailer must be so informed and, if the mailer agrees, a new agreement is
prepared in accordance with 661.462c and 661.462d.

661.465 Cancellation.
If a review of the mailer's combined mailing system indicates that the
mailer is not preparing combined mailings in accordance with applicable
requirements, or if the mailer does not agree to Postal Service modifications,
the procedures for cancellation in 661.47 must be followed.

661.47 Suspension or Cancellation of ZIP+4 Barcoded Rate Combined Mailing
Authorization

661.471 Suspension.
A combined mailing system authorization may be suspended by the general
manager, RCC, at any time, pending investigation, if the general manager finds
that postage is not being fully paid or mail is not being prepared to meet
applicable requirements.  The decision may be appealed to the director, Office
of Classification and Rates Administration, within 15 days of the suspension
by submitting a written appeal with explanation.  The suspension remains in
effect during the appeal.  A suspension is terminated by showing that the
mailer is in compliance.

661.472 Cancellation Procedure.
If a decision is made to cancel a combined mailing authorization, the
general manager, RCC, must notify the mailer of the decision in writing.  The
cancellation becomes effective 15 days from the mailer's receipt of the notice
unless the mailer files a written appeal within that time with the general
manager, RCC.  The appeal must contain additional information as to why the
combined mailing authorization should not be canceled.  The general manager
reviews the additional information to determine whether the agreement should
be continued.  If a decision is made to continue the combined mailing
agreement, the general manager notifies the mailer, in writing, of the
decision.  If the general manager denies the appeal, the appeal and the
additional information furnished by the mailer is forwarded to the director,
Office of Classification and Rates Administration, who issues the final agency
decision.

661.473 Reasons for Cancellation.
An authorization to prepare combined mailings may be canceled by either the
mailer or the Postal Service at any time under the following conditions:

a.
The mailer may cancel the authorization at any time by notifying the
administering post office in writing.

b.
The general manager, RCC, may cancel the combined mailing authorization
under any of the following conditions:

(1)
The mailer has provided misleading or incorrect data to avoid payment of
postage.

(2)
The mailer makes no combined mailings under the agreement during any
consecutive 12-month period.

(3)
The mailer fails to comply with applicable requirements or the agreement,
including failure to perform required quality control procedures, and does not
make changes to comply with these requirements after being notified to do so
by the Postal Service.

661.5 Combined Mailing Documentation Submission Requirements

661.51 General Requirements.
Mailers must submit the documents specified in 661.52 with each
combined mailing at the time the mailing is submitted to postal employees for
verification and acceptance.

661.52 Documentation

661.521  Detailed Tray/Sack Listing for ZIP Code Tray/Sack Sortation Level
by Postage Payment Method.
Each tray/sack identified on this listing must represent all mail in the
combined mailing prepared in trays/sacks for the ZIP Code destination
identified.  If tray/sack identification numbers are used, the same tray/sack
number must be used to identify all mail for a specific destination, as shown
on the tray/sack label destination line and reported on the tray/sack listing.
 Based on the volume of mail to a specific destination, there may be more than
one tray/sack containing the mail identified on the listing for that
destination.  For example, the tray/sack listing for Brooklyn NY 112 may show
1,570 pieces for that destination.  The listing may also indicate that the
mail for Brooklyn NY 112 is in tray/sack 7.  Based on the volume of mail, the
pieces are likely to fill more than one tray.  Accordingly, all mail reported
on the tray/sack listing must be placed in a tray/sack identified as
Tray/Sack: 7, labeled to Brooklyn NY 112.

a.
For each destination, the tray/sack listing must identify the destination
of the tray/sack as shown on the top line of the tray/sack label (e.g.,
Brooklyn NY 112).  The tray/sack to a destination may also be represented by a
unique identification number (e.g., Tray: 7).

b.
The listing must show the following information, by client/job and by
destination:

(1)
Number of pieces claimed at each postage rate.

(2)
Number of permit imprint pieces.

(3)
Number of metered pieces by the amount of postage affixed.

(4)
Number of precanceled stamped pieces by amount of postage affixed.

(5)
Cumulative postage due and cumulative postage affixed.

c.
The tray/sack listing must show the total number of pieces claimed at each
postage rate by destination and must include a cumulative running total of the
amount of postage due for all of the pieces to the ZIP Code destination of the
tray/sack.  The mailer must also submit the detailed listing for the
basic/residual tier identifying reject mail that is reported and accounted for
in the combined mailing documentation and has not been pulled out of the
combined mailing and brought to a separate sorting operation (see
661.426).

d.
The mailer must provide the detailed tray/sack listing for each of the ZIP
Code destinations corresponding to the trays/sacks selected by postal
personnel verifying the combined mailing.  The trays/sacks selected must
include pieces representing all methods of postage payment included in the
combined mailing.  The listing is compared against the physical mail contained
in the trays/sacks for the destinations selected.

661.522  Postage Summary Reports

a.  General.
Postage summary reports include any records used by the mailer to complete
the mailing statements.  The mailer must submit a summary report for each
method of postage payment and a grand total summary report for all methods
combined.  These reports must support the number of pieces reported on the
mailing statements for each rate level for the qualified and nonqualified
portions (e.g., presort and residual, barcoded and nonbarcoded), the amount of
postage due for the combined mailing, the amount of postage affixed to mailing
pieces included in the mailing, and the percentage of ZIP+4 barcoded pieces.
The mailer must describe the disposition of nonqualifying pieces.  The
following information must be included in these reports:

(1)
The individual summary for each postage payment method must report:

(a)
Total number of pieces and postage charges for the qualified and
nonqualified mail by rate level and the total number of pieces and postage
charges for the postage payment method before adjustments are made for the
amount of postage affixed for metered and precanceled stamped mail.

(b)
Percentage of qualified ZIP+4 barcoded mail.

(c)
For precanceled stamped mail, the total amount of precanceled stamp postage
affixed.

(d)
For metered mail, the total amount of metered postage affixed.

(e)
For permit imprint mail, the total postage due.

(2)
The grand total summary of all postage payment methods must include, for
the combined mailing:

(a)
Total number of pieces and postage charges for the combined mailing by rate
level and for the entire mailing for the qualified and nonqualified portions
before adjustments are made for the amount of postage affixed for metered and
precanceled stamped mail.

(b)
Qualifying percentage of ZIP+4 barcoded mail.

(c)
Total amount of precanceled stamp postage affixed and the total amount of
metered postage affixed.

(d)
Net postage charges, by method of postage payment and the total postage
charge for the mailing (see 661.432f and 661.44).

b.  Summary of Postage Affixed Pieces and Permit Imprint Pieces.
The amount of postage affixed to pieces included in the combined mailing
and the number of permit imprint pieces included in the combined mailing,
based on piece counts from the mailer's automated sorting system's computer,
reported as follows:

(1)
Total number of permit imprint pieces.

(2)
Total number of metered pieces for each amount of postage affixed.

(3)
Total number of precanceled stamped pieces for each amount of postage
affixed.

661.523  Mailing Statements.
Mailing statements, prepared under 661.43, must be submitted by
the mailer with the associated combined mailing postage payment worksheet (see
661.44), tray/sack listings, and postage summary reports at the time
the mailing is submitted for verification and acceptance.

662 Mailing Statements

662.1 General.
The mailer must complete, sign, and present a mailing statement with each
third-class mailing for which postage is paid using a permit imprint or
claimed at any bulk rate.  The mailer must use the appropriate Postal Service
form or a facsimile approved by the postmaster of the office of mailing.

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

663  Computation Standards

663.1  Weight

663.11  General.
Express all weights as decimal pounds (e.g., 1.125 pound) rather than as
pounds and ounces.  Round weights as directed below.  For purposes of this
section, the "round off" instruction requires increasing the last digit to be
retained by 1 if the digit to its right, which is not to be retained, is 5 or
greater; if it is 4 or less, the last digit retained is unchanged.  (For
example, rounding off 3.376 to two decimal places yields 3.38; while 3.374
yields 3.37.)

663.12 Rate Application

663.121 Single-Piece Rates

a. Pieces Weighing 4 Ounces or Less.
For pieces not exceeding 4 ounces (0.25 pound), the single-piece
third-class rate is charged per ounce or fraction thereof, based on the weight
of each addressed piece.  For postage purposes, any fraction of or over an
ounce is charged as a whole ounce.  The minimum postage per addressed piece is
that chargeable for a piece weighing 1 ounce (0.0625 pound).

b. Pieces Weighing More Than 4 Ounces But Less Than 16 Ounces.
For pieces weighing more than 4 ounces (0.25 pound), but not more than 16
ounces (1 pound), the single-piece third-class rate is charged per 2-ounce
(0.125 pound) unit or fraction thereof, based on the weight of each addressed
piece.  For postage purposes, any fraction of an ounce over a 2-ounce step is
charged as 2 ounces.  The minimum postage per addressed piece weighing more
than 4 ounces but not more than 6 ounces (0.375 pound) is that chargeable for
a piece weighing 6 ounces.

663.122  Keys and Identification Devices.
The rate for keys and identification devices is charged per 2-ounce (0.125
pound) unit or fraction thereof for pieces weighing less than 16 ounces (1
pound), based on the weight of each addressed piece.  For postage purposes,
any fraction of an ounce over a 2-ounce step is charged as 2 ounces.  The
minimum postage per addressed piece is that chargeable for a piece weighing 2
ounces.

663.123  Bulk Rates

a.
Pieces weighing 0.2067 pound (3.3067 ounces) or less, or 0.2085 pound
(3.3367 ounces) or less at nonprofit rates, are subject to the minimum
applicable rate per addressed piece.

b.
Pieces weighing more than 0.2067 pound (3.3067 ounces), or more than 0.2085
pound (3.3367 ounces) at nonprofit rates, are subject to a per-piece charge
plus a per-pound charge based on the weight of the addressed piece.


663.13  Weight of a Single Piece

663.131  Computation

a.  Identical-Weight Bulk Mailings.
In a bulk or presort rate mailing of identical-weight pieces, compute the
average weight of a single piece by weighing a sample group of at least 10
randomly selected pieces and dividing the total sample weight by the number of
pieces in the sample.  Express the weight of a single piece in decimal pounds
rounded off, if necessary, to four decimal places.  (Note that 1 ounce equals
0.0625 pound.)

b.  Other Mailings.
For nonidentical-weight piece, single-piece, and other mailings, weigh each
addressed piece individually.  Express the weight of a single piece in decimal
pounds rounded off, if necessary, to four decimal places.  (Note that 1 ounce
equals 0.0625 pound.)

663.132  Determining Weight (Postage) Increment -- Single-Piece Rates

a.  Pieces Weighing 4 Ounces or Less.
To determine the weight (postage) increment of an addressed piece, treat
any fraction of an ounce in the actual weight of the piece as a whole ounce.
For example, if a piece weighs 1.2 ounce (0.075 pound), the weight (postage)
increment is 2 ounces (0.125 pound).

b.  Pieces Weighing More Than 4 Ounces But Less Than 16 Ounces.
To determine the weight (postage) increment of an addressed piece, treat
any ounces or fractions over a 2-ounce multiple as the whole 2-ounce multiple.
 For example, if a piece weighs 12.2 ounces (0.7625 pound), the weight
(postage) increment is 14 ounces (0.875 pound).

663.14 Total Mailing Weight

663.141  Identical-Weight Pieces.
To compute the total weight of the addressed pieces (mailing or mailing
segment) for which the applicable postage is to be determined, multiply the
computed average weight of a single piece (from 663.131a) by the
corresponding number of pieces.  Do not round any decimals in the product.

663.142  Nonidentical-Weight Pieces.
To compute the total weight of the addressed pieces (mailing or mailing
segment) for which the applicable postage is to be determined, add the actual
weight of the individual pieces (from 663.131b).  Do not round any
decimals in the product.

663.2  Piece Count.
Always express piece counts in whole numbers.

663.3  Postage

663.31  General.
Express all postage as decimal dollars (e.g., $0.162).  Round as directed
below.

663.32  Per-Pound and Per-Piece Charges

663.321  Single-Piece Rate.
Postage is based on the rate that applies to the weight (postage) increment
of the addressed piece determined in 663.132.

663.322  Bulk Rate Per-Piece Charge.
Compute the per-piece charge based on the total number of addressed pieces
for each rate category claimed.  Add the total per-piece charge to the
per-pound charge, if applicable, to determine total postage.  When postage is
affixed to each piece, it must be sufficient to equal payment of one unit of
the per-piece charge.

663.323  Bulk Rate Per-Pound Charge.
When applicable, compute the per-pound charge based on the total weight of
the addressed pieces (see 663.14) for each rate category claimed.
Add the total per-pound charge to the per-piece charge, if applicable, to
determine total postage.  (For example, a quantity of pieces weighing 100.25
pounds is charged 100.25 times the applicable rate per pound, based on the
rate claimed, plus the per-piece charge.)  When postage is affixed to each
piece, it must be sufficient to equal payment of the per-piece charge plus the
per-pound charge for the corresponding weight of the piece at the applicable
rate.

663.33  Affixing Postage to Each Piece

663.331  Third-Class Single-Piece Rate.

a.
The mailer must affix to each piece a value in adhesive stamps, precanceled
stamps, or meter impressions that equals at least the postage required for the
piece.

b.
If more than the applicable amount of postage is affixed for reasons other
than those described in 663.331c, a refund is allowed only as
provided in 147.

c.
If a mailer's postage meter cannot print the exact applicable amount of
postage, the mailer must print the next higher tenth of a cent or whole cent
that can be printed.  No credit or refund is allowed for such overpayment.

663.332  Other Third-Class Mailings.
The mailer must affix a value in adhesive stamps, precanceled stamps, or
meter impressions that equals:

a.
At least the full amount of postage for each piece at the applicable rate.

b.
The applicable postage per piece at the lowest rate in the mailing, as long
as any additional postage is paid as provided in 661.323.

c.
The applicable postage per piece at another rate in the mailing, as long as
any additional postage is paid as provided in 661.324.

d.
The minimum per-piece charge, with the applicable pound-rate charge paid by
permit imprint as provided in 661.221d.

663.34  Use of Permit Imprint.
To compute the postage payable for the mailing, perform these steps:

a.
Multiply the total (unrounded) weight of the pieces (from 663.14)
by the applicable rate per pound, rounding off each product to four decimal
places if necessary.

b.
For each rate category in the mailing, multiply the number of addressed
pieces by the applicable rate per piece.

c.
Add the postage amounts determined by steps in 663.34a and
663.34b above.

d.
If necessary, round off the total postage to the nearest whole cent ($0.01).

664 Plant-Verified Drop Shipment Postage Payment System

664.1 General

664.11 Definition.
The plant-verified drop shipment postage payment system is designed to
allow destination acceptance of mailings prepared for entry at destination
rates (see 624.7), while taking advantage of the greater postal
efficiency associated with origin postage payment.  Approval for use of a
plant-verified drop shipment postage payment system is granted under the
conditions specified in 664.2.

664.12 System Elements.
Under this system

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

b.
postage and fees are prepaid at the post office performing all
verifications as designated by the field division general manager/postmaster;

c.
the shipment is released for dispatch under postal seal;

Exception: The requirement for affixing a Postal Service seal (or
equivalent security device) to vehicles containing plant-verified drop
shipments and for recording the seal number on clearance documents is
suspended indefinitely.

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

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

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

664.13 Participation.
The plant-verified drop shipment postage payment system may be used only by
mailers who have been authorized by the field division general
manager/postmaster in whose service area the mailer is located (see
664.3).

664.14 Other Mailings.
Other destination entry mailings that are not verified and paid for at the
origin plant or the origin post office (or other post office designated by the
field division general manager/postmaster) under a plant-verified drop
shipment postage payment system agreement must be verified and paid for at the
destination post office under 624.716c or 624.716d.

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

664.2 Program Participation Criteria for Mailers

664.21 Request for Participation.
The mailer must submit an application for participation in the
plant-verified drop shipment postage payment system as prescribed in
664.3.

664.22 Facilities for Postal Personnel for DMU Verification.
When mail is to be verified and cleared for dispatch by postal personnel
staffing a detached mail unit (DMU) at a mailer's plant under a plant-verified
drop shipment agreement (see 664.3), the mailer must provide an
enclosed work area for the DMU that can be locked, has a telephone, is
separate from the mailer's activities, and provides a safe working
environment.  Facilities are determined to be necessary and approved for
operation by the Postal Service.

664.23 Verification at Origin Post Office.
When mail is to be verified and cleared for dispatch by postal personnel at
the BMAU at the origin post office serving the mailer's plant (or another
postal facility designated by the division general manager/postmaster) under a
plant-verified drop shipment agreement (see 664.3), the mailer is
responsible for transporting all mailings to the post office, unloading the
mailings for verification, and reloading the mailings that have been cleared
for dispatch onto the mailer's transportation for shipment to the destination
entry post offices.  A bulk mail center (BMC) bulk mail acceptance unit (BMAU)
should not be designated as the office to perform origin verification of DBMC
rate drop shipments that are to be transported by a mailer to other
destination post offices for deposit and acceptance.

664.24 Postage Payment.
The mailer must pay postage for plant-verified drop shipments at either the
post office serving the mailer's plant where mailings were verified or the
post office that performs BMAU verification of mailings, as designated by the
division.  If permit imprints are used, the mailer must ensure that sufficient
funds are on deposit in the appropriate advance deposit accounts to pay for
all plant-verified drop shipments prior to their release for dispatch.  The
mailer must pay all applicable fees (e.g., annual bulk mailing fees, permit
imprint fees, etc.) and maintain all applicable permits and authorizations
(e.g., permit imprint authorizations, meter licenses, precanceled stamp
permits, authorizations to mail at special bulk rates) at the post office that
collects postage for the mailings, verifies them, and clears them for dispatch
by the mailer to destination entry post offices.  No permits or fees are
required at the destination entry post offices where plant-verified drop
shipments are deposited.

664.25 Documentation

a.
The mailer must produce and submit an individual mailing statement for each
mailing destined for each destination entry post office, at the time the mail
is presented for verification and postage payment.

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

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

664.26 Transportation

664.261 Responsibility.
The mailer is responsible for the transportation of plant-verified drop
shipments from the origin plant to the destination postal facility.  The
mailer may use any means of transportation, including Express Mail or Priority
Mail drop shipment, to transport shipments to the destination post offices.
664.262 Other Mailings.
The mailer must not transport plant-verified drop shipment mailings on the
same vehicle with other shipments that are not entered as plant-verified drop
shipments.

664.263 Scheduling.
The mailer must meet the requirements in 624.717 in regard to the
deposit of mail at destination entry postal facilities.

664.264 Separation of Mailings.
When a vehicle contains more than one plant-verified drop shipment for a
single destination postal facility, the shipments must be separated so that
each shipment can be reconciled against the appropriate accompanying Form
8125.  If more than one destination entry discount (destination delivery unit,
SCF, or BMC rates) is claimed within a single shipment to be deposited at the
same postal facility (applicable to DDUs and SCFs, including SCFs that are
also ASFs), the mail eligible for one level of destination discount must be
separated from mail eligible for another level of destination discount.  A
single Form 8125 that clearly identifies all the mail for a single postal
facility must be prepared for a shipment consisting of copalletized or
combined mailings.  When a vehicle contains shipments to be deposited at
multiple destination postal facilities, the shipments must also be physically
separated by destination to identify each shipment.

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

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

664.3 Authorization

664.31 Request

664.311 General.
The mailer must submit a written request to the mailer's local postmaster
seeking assignment of postal personnel to the mailer's plant (e.g.,
establishment of a DMU) or approval to bring mailings to the origin post
office serving the mailer's plant for verification of plant-verified drop
shipment destination entry mailings.  No form is provided for this purpose.  A
request for authorization must also be submitted by existing plant load
mailers to ensure that the current mailer facilities and DMU resources are
adequate for verification of drop shipments.  The mailer may submit a single
request that covers more than one type of third-class mail product or mail for
more than one client.  The request must fully describe the characteristics of
the items the mailer is to prepare as plant-verified drop shipments.  The
mailer must provide the post office that performs the verifications, and to
which postage is paid, with mailing production schedules as required by
664.27.

664.312 Date of Filing.
The mailer must submit the request at least 30 days before the date
proposed for submission of the first plant-verified drop shipment using the
system.  Depending on the specific situation, the required 30-day advance
notice may be waived by the approving official (see 664.32).

664.313 Content.
The request must fully describe the characteristics of the mailings that
are prepared as plant-verified drop shipments.  At a minimum, the request must
include the following information for each mailing or series of mailings of
the same product, publication, or job:

a.
the schedule of mailing, i.e., the number, frequency and time of mailings
(e.g., at noon daily for two weeks, every other Monday at 4 p.m., etc.);

b.
the number of pieces and mailing statements to be presented to postal
personnel, both daily and in total;

c.
the class of mail and processing category;

d.
the level of sortation and rate(s) claimed;

e.
either:

(1)
postage is paid locally

(a)
the method of postage payment and a listing of the precanceled stamp
permits, postage meter numbers and licenses, and permit imprint (or company
permit imprint) to be used; and

(b)
the alternative mailing system used by the mailer, if any (see
145.7, 145.8, and 145.9);

(2)
postage is paid under Centralized Postage Payment (CPP) procedures, a copy
of the authorization must accompany the request (separate authorization by the
serving rates and classification center is required to mail under CPP);

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

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

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

i.
the destination entry points to which shipments are to be dispatched (e.g.,
a listing of the BMCs, SCFs, DDUs).

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

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

b.
The mailer is located within the service area of the post office where the
mail is to be verified and where postage is to be paid, except for situations
described in 664.314g.

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

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

e.
If an alternative method of paying postage with permit imprint (e.g.,
manifesting) is used, an original mailing statement and appropriate required
documentation must accompany each drop shipment mailing for verification at
the post office BMAU.  If a single mailing is contained in more than one
vehicle, a separate original mailing statement and documentation must
accompany each vehicle for each mailing segment.

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

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

664.32 Approving or Denying Authorization

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

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

664.323 Approval.
If the mailer's request for participation in the plant-verified drop
shipment postage payment system is approved, the field division general
manager/postmaster prepares a plant-verified drop shipment agreement that must
be signed by the general manager/postmaster, the mailer, and the postmaster of
the post office serving the mailer's plant before the approval can be made
effective.  The agreement specifies the terms and period of the authorization
(not to exceed 2 years).  Copies of the agreement are provided to the local
postmaster, the MSC/division manager, mailing requirements, and the rates and
classification center.

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

664.33 Renewal, Termination, and Revocation

664.331  Renewal.
The mailer must submit a new request for authorization at least 30 days
prior to the expiration of a plant-verified drop shipment agreement.  The
content of the request, and the procedures for its review, approval, or denial
are as prescribed in 664.31 and 664.32.