81 FR 43965 - Address Quality Census Measurement and Assessment Process

POSTAL SERVICE

Federal Register Volume 81, Issue 129 (July 6, 2016)

Page Range		43965-43971
FR Document		2016-15649
The Postal Service is revising its pending proposal to amend Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM[supreg]), to include a newly proposed measurement and assessment procedure for evaluating address quality for mailers who enter eligible letter- and flat-size pieces of First-Class Mail[supreg] (FCM) and Standard Mail[supreg] that meet the requirements for Basic or Full-Service mailings.
Federal Register, Volume 81 Issue 129 (Wednesday, July 6, 2016)
[Federal Register Volume 81, Number 129 (Wednesday, July 6, 2016)]
[Proposed Rules]
[Pages 43965-43971]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-15649]


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POSTAL SERVICE

39 CFR Part 111


Address Quality Census Measurement and Assessment Process

AGENCY: Postal Service^TM.

ACTION: Supplemental notice of proposed rulemaking.

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SUMMARY: The Postal Service is revising its pending proposal to amend 
Mailing Standards of the United States Postal Service, Domestic Mail 
Manual (DMM[supreg]), to include a newly proposed measurement and 
assessment procedure for evaluating address quality for mailers who 
enter eligible letter- and flat-size pieces of First-Class Mail[supreg] 
(FCM) and Standard Mail[supreg] that meet the requirements for Basic or 
Full-Service mailings.

DATES: Submit comments on or before August 5, 2016.

ADDRESSES: Mail or deliver written comments to the manager, Product 
Classification, U.S. Postal Service, 475 L'Enfant Plaza SW., Room 4446, 
Washington, DC 20260-5015. If sending comments by email, include the 
name and address of the commenter and send to 
Product;[email protected], with a subject line of ``Address 
Quality Census Measurement and Assessment Process.'' Faxed comments are 
not accepted.
    You may inspect and photocopy all written comments, by appointment 
only, at USPS[supreg] Headquarters Library, 475 L'Enfant Plaza SW., 
11th Floor North, Washington, DC 20260. These records are available for 
review on Monday through Friday, 9 a.m.-4 p.m., by calling 202-268-
2906.

FOR FURTHER INFORMATION CONTACT: Heather Dyer, USPS Mail Entry, Phone: 
(207) 482-7217, email: [email protected].

SUPPLEMENTARY INFORMATION: On December 23, 2014, the Postal Service 
published a notice of proposed rulemaking (79 FR 76930-76931) to add a 
process for measuring address quality.
    From that proposed rule, the mailing industry provided many 
insightful and valuable comments (outlined later in this document) to 
the Postal Service and requested that a revised proposed rule be 
published. Therefore, we are renaming and revising our original 
proposal, and publishing it with a request for additional comments. 
This proposed rulemaking is subject to both Postal Service management 
and Postal Regulatory Commission (PRC) approvals.
    The Postal Service continues to look for opportunities to work with 
mailers to improve address quality and reduce undeliverable-as-
addressed (UAA) mail. We have developed a newly proposed procedure, the 
Address Quality Census Measurement and Assessment Process, to measure 
address quality pertaining to move-related changes. This proposed 
process will allow the Postal Service to provide valuable feedback to 
mailers who enter eligible letter- and flat-size pieces of FCM and 
Standard Mail that meet the requirements for Basic or Full-Service 
mailings.
    The Address Quality Census Measurement and Assessment Process will 
utilize a scorecard for mailers that conveys information on address 
hygiene as well as Move Update quality. The scorecard provides mailers 
with change-of-address (COA) data as well as details about mailpieces 
that are UAA.
    Presently, one of the benefits of the Full-Service Intelligent 
Mail[supreg] program is free Address Change Service (ACS\TM\) for 
mailpieces prepared in accordance with Full-Service requirements. In 
order to further encourage the adoption of Full-Service and to increase 
the number of mailers that receive address quality information, the 
Postal Service is proposing to extend free ACS to mailers who enter 
qualifying Basic automation and non-automation mailpieces that meet the 
criteria of the Address Quality Census Measurement and Assessment 
Process and to mailers that meet a Full-Service threshold of 95 percent 
along with other requirements, which are outlined later in this 
document.
    Today, some mailers who enter Periodicals could potentially be 
charged for manual address correction notices on mailpieces using a 
Full-Service ACS Service Type IDentifier (STID). The Postal Service is 
proposing that mailers who enter Full-Service Periodicals mailings 
using a Full-Service ACS STID will not be required to receive or pay 
for manual address correction notices unless they are requested. 
Although mailers who enter Periodicals will be

[[Page 43966]]

provided with address quality data, these mailpieces will not be 
subject to the Address Quality Census Measurement and Assessment 
Process.

Terms

    To further clarify this document, several terms are defined below:
    [ssquf] 99 Percent Accurate Method: Mailers who can demonstrate 
that their internal list management maintains address quality at 99 
percent or greater accuracy for changes of address may be authorized to 
comply with the Move Update standard through the 99 Percent Accurate 
Method. The 99 Percent Accurate test is a computer-based process that 
performs Postal Service ZIP + 4[supreg] coding and change-of-address 
processing utilizing the customer's file as input. The 99 Percent 
Accurate test is accomplished by submitting the mailer's address 
file(s) to the Postal Service for processing.
    [ssquf] Commercial Mailings: The Postal Service offers lower prices 
for business mailings, because mailers perform some of the work that 
would otherwise have to be done by the Postal Service (for example, 
sorting the mail by ZIP Code\TM\ or transporting the mail to a 
destination postal facility). Everyone benefits from ``work-sharing.'' 
Mailers make an investment in time and technology while paying less 
postage, and the Postal Service's costs are reduced, while mail is 
expedited through the system. Among other requirements, commercial 
mailings must comply with the Move Update standard as outlined in the 
DMM so that UAA mail is minimized.
    [ssquf] eDoc Submitter: The electronic documentation (eDoc) 
Submitter is determined using the Customer Registration IDentifier 
(CRID) number that is used to upload the eDoc to the Postal Service for 
processing. The eDoc submitter most often is the Mail Preparer, but can 
also be the Mail Owner. All results of Address Quality Measurement will 
be displayed on the eDoc Submitter and Mail Owner scorecards; however, 
any additional postage assessments will be presented to the eDoc 
submitter.
    [ssquf] Legal Restraint: Mailers of First-Class Mail and First-
Class Package Service pieces who assert they are restricted by law from 
incorporating Postal Service COA information onto their mailpieces 
without permission from addressees may request Postal Service approval 
to meet their Move Update standard using the Legal Restraint method. 
Such mailers must be able to clearly demonstrate how the use of a 
primary Move Update method would violate the law. (See the Guide to 
Move Update at http://beta.postalpro.usps.com/node/1116). Pieces that 
meet the requirements for the Legal Restraint method will be excluded 
from the Mailer Scorecard and the Address Quality Census Measurement 
and Assessment Process, as long as the mailpieces use the appropriate 
CRID or Mailer IDentifier (MID).
    [ssquf] Mailer: The term ``mailer'' within this document 
encompasses Mail Owners, Mail Preparers, and Mail Service Providers 
(MSPs).
    [ssquf] Mailer Scorecard: This is an electronic report that 
contains mail quality measurements and assessments on mailings over a 
calendar month for Move Update, Full-Service Intelligent Mail, 
eInduction[supreg], and Seamless Acceptance. The Scorecard is 
accessible through the Business Customer Gateway (BCG) and provides 
views for both Mail Owners and Mail Service Providers (MSPs).
    [ssquf] Non-qualifying Mailings: The below non-qualifying 
mailpieces will be excluded from the Address Quality Census Measurement 
and Assessment Process and the Mailer Scorecard:
     Mailpieces which are undeliverable due to an address 
change which is Temporary, Foreign, Moved Left No Address (MLNA), and 
Box Closed No Order (BCNO).
     Mailpieces that are priced as single-piece.
     Mailpieces that qualify for the Legal Restraint method.
     Mailpieces without the documentation submitted 
electronically.
    [ssquf] Qualifying Mailings: An eDoc submitter is eligible for the 
Address Quality Census Measurement and Assessment Process when at least 
one of its mailings qualifies for Full-Service in a calendar month. 
Thereafter, when mailers enter eligible mailings of letter- and flat-
size pieces of FCM and Standard Mail that meet the requirements for 
Basic or Full-Service mailings in a subsequent calendar month, the 
Address Quality Census Measurement and Assessment Process will be used, 
if the postage statement and supporting documentation are submitted 
electronically and a unique Intelligent Mail barcode (IMb[supreg]) is 
included in the eDoc.

Summary of Industry Comments and USPS Responses

    The Postal Service appreciates all of the comments that were 
provided by the mailing industry. The valuable feedback was used to 
establish revised proposed requirements for the Address Quality Census 
Measurement and Assessment Process. Even though this is a proposed 
rule, we have chosen to include these insightful comments and replies, 
which can be used as FAQs to further clarify this document. The 
mailers' comments and corresponding USPS responses are outlined as 
follows:

Mailer Comment

    If mailings are not in compliance with Move Update standards, why 
is it necessary to levy an additional charge or assessment?

USPS Response

    As outlined in the DMM, commercial mailings must comply with the 
Move Update standard. Regardless of whether the Postal Service measures 
Move Update compliance through Mail Evaluation Readability Lookup 
INstrument (MERLIN[supreg]) verification or using the Address Quality 
Census Measurement and Assessment Process, failure to meet the Move 
Update standard may result in an additional postage assessment.

Mailer Comment

    How does this proposed rule support the UAA objective?

USPS Response

    The ability to observe UAA performance at the individual mailer or 
service provider level will benefit both the Postal Service and the 
mailing industry. This data will provide more information regarding the 
actual mailing performance. This data will provide mailers with viable 
information to assist with reducing UAA, improve their return on 
investment, and better understand anomalies that impact Move Update 
performance.

Mailer Comment

    Since the Move Update verification process was implemented in 2008, 
has data shown a decrease in UAA mail volume?

USPS Response

    Yes; since the implementation of Move Update in 2008, UAA volumes 
have declined:
    [ssquf] In 2008, there was an 11.2 percent decline in UAA volume. 
This reduction was nearly twice the overall decline in FCM volume of 
6.4 percent.
    [ssquf] From 2008 through 2015, there was a decline of 37 percent 
in UAA volume, which resulted in a reduction for all mail classes of 
2.8 billion UAA pieces.
    [ssquf] From 2008 through 2015, there was an overall decline of 
43.8 percent in FCM forwarding volume from 1.6 billion pieces in 2008 
to 0.9 billion pieces in 2015.

[[Page 43967]]

Mailer Comment

    Currently, when mailing Periodicals, there is a requirement to pay 
for manual address corrections. Will this payment cease in conjunction 
with this proposal?

USPS Response

    In this proposed rule, with regard to Full-Service Periodicals 
mailings, there will no longer be a requirement to receive or pay for 
manual address corrections, except when manual address correction 
notifications are specifically requested by the mailer or the mailpiece 
does not contain a Full-Service ACS STID.

Mailer Comment

    For each STID, will the data for both COA errors and the total 
number of pieces be all-inclusive or be limited by services such as 
ACS?

USPS Response

    The data will be inclusive of both ACS- and non-ACS-requested 
STIDs.

Mailer Comment

    When mailers enter Periodicals, will there still be a requirement 
for address correction service?

USPS Response

    Yes, mailers who enter Periodicals will still be required to meet 
the requirement for address correction service.

Mailer Comment

    Does the Address Quality Census Measurement and Assessment Process 
apply to mailpieces that meet the criteria for single-piece prices, 
Legal Restraint, and the 99 Percent Accurate Method?

USPS Response

    The Address Quality Census Measurement and Assessment Process will 
exclude mailpieces that are paid at the single-piece price and 
mailpieces that meet the requirements for the Legal Restraint 
alternative method, which will be based upon the CRID or MID of the 
mail owner who is approved for the exemption. In contrast, mailpieces 
entered under the 99 Percent Accurate Method were factored into the 
newly proposed Address Quality Census Measurement and Assessment 
Process error threshold, and these mailpieces will not be excluded from 
the new measurement process.
    In addition to this proposed rule, the Postal Service intends to 
publish an additional proposed rule to provide further guidance on the 
Move Update standard. This document will propose that mailers who are 
authorized for the Legal Restraint Move Update alternative method be 
required to use an exclusive MID or multiple exclusive MIDs on their 
mailpieces for Legal Restraint mailings. This would allow the Postal 
Service to properly identify these types of mailpieces and, when 
appropriate, exclude the mailpieces from the Address Quality Census 
Measurement and Assessment Process. The mailer will not be able to use 
these MIDs for other types of mailpieces that do not fall under the 
Legal Restraint authorization. The Postal Service is working with the 
Legal Restraint mailers to identify these MIDs. All current Legal 
Restraint authorized mailers would be allowed a one-year transition 
period to begin use of the exclusive MIDs. The one-year transition 
period would be calculated starting from the date of their next annual 
Legal Restraint reauthorization.

Mailer Comment

    If a mailer temporarily falls below the qualifying 75 percent Full-
Service threshold for 30 days, what are the consequences?

USPS Response

    There will no longer be a qualifying Full-Service percentage; the 
mailer need only submit one qualifying Full-Service mailing.

Mailer Comment

    If a mailer does not enter mailings meeting the 75 percent Full-
Service threshold, how will address quality be measured?

USPS Response

    To be measured under the Address Quality Census Measurement and 
Assessment Process, there will no longer be a 75 percent Full-Service 
threshold. For mailers whose CRID does not present any Full-Service 
mailings, the address quality will be measured through the traditional 
MERLIN verification process, and the mailer must declare that an 
approved Postal Service Move Update method was used. An eDoc submitter 
will be eligible for the Address Quality Census Measurement and 
Assessment Process when at least one of its mailings qualifies for 
Full-Service in a calendar month. Thereafter, all mailings of letter- 
and flat-size pieces of FCM and Standard Mail that meet the 
requirements for Basic or Full-Service mailings entered in a subsequent 
calendar month will use the Address Quality Census Measurement and 
Assessment Process, if the postage statements and supporting 
documentation are submitted electronically and unique IMbs are included 
in the eDoc.

Mailer Comment

    When MSPs prepare a combined mailing (multiple Mail Owners), will a 
fee be assessed if the COA percentage measured for one of the Mail 
Owners exceeds the error threshold, but the COA percentage measured for 
the submitter of the eDoc does not exceed the threshold?

USPS Response

    If a combined mailing (with multiple Mail Owners) is entered and 
the COA percentage does not exceed the Address Quality Census 
Measurement and Assessment Process error threshold, no fee would be 
assessed, because the fee is assessed at the eDoc submitter level.

Mailer Comment

    When there is a combined mailing (with multiple Mail Owners), what 
is the process for ensuring that the correct mailer is assessed for 
exceeding the error threshold?

USPS Response

    For a combined mailing, the Mailer Scorecard and the Mail Entry 
Assessment Report allow the Postal Service to provide detailed piece-
level information and identify Mail Owners who exceed the established 
Address Quality Census Measurement and Assessment Process error 
threshold. While the eDoc submitter will pay the assessment to the 
Postal Service, there will be adequate information for the eDoc 
submitter to seek reimbursement from the applicable Mail Owner.

Mailer Comment

    Can the Postal Service clearly outline the appeal process for 
postage assessments?

USPS Response

    To appeal postage assessments, the dispute process is available on 
PostalPro^TM at http://beta.postalpro.usps.com/node/847 and 
steps are outlined within the Guide to Postage Assessment as follows:
    [ssquf] Mailings are evaluated based on an entire calendar month.
    [ssquf] If thresholds are exceeded, an invoice is generated and a 
Mail Entry Assessment Notification is sent on the 10th of the month 
(for the previous month's mailing activity).
    [ssquf] Notifications for all assessments will be sent to the eDoc 
submitter.
    [ssquf] An assessment notification is sent by email to the 
individual designated by the mailer for each CRID in BCG as the 
Verification Assessment Evaluator

[[Page 43968]]

(VAE). Mailers can also review assessment information through the 
Mailer Scorecard.
    [ssquf] VAE accesses BCG and pays invoice.
    [ssquf] If a VAE is not in agreement with the charges, the VAE may 
dispute charges by requesting a review and providing supporting 
documentation within 10 days of assessment notification.
    [ssquf] Business Mail Entry (BME) reviews the documentation and 
contacts the mailer with results.

Mailer Comment

    Will there be changes to the National Change of Address Linkage 
System (NCOA\Link\[reg])?

USPS Response

    Currently, there are no changes to the database for NCOA\Link\ 
which would affect a mailer's ability to use the product or comply with 
Move Update requirements. If such changes are anticipated, the Postal 
Service is always willing to work with mailers to mitigate impacts.

Mailer Comment

    Is it the intent of the Postal Service to make ACS the default 
source for Move Update changes and eliminate the other methods 
(NCOA\Link\ Mail Processing Equipment (MPE), Ancillary Service 
Endorsement (ASE), and NCOA\Link\)?

USPS Response

    The Postal Service has no intention of making ACS the default 
source for Move Update or eliminating any of the other USPS-approved 
Move Update methods.

Mailer Comment

    Will the traditional ACS be free and postage statements be modified 
to reflect these new changes?

USPS Response

    In general, the traditional ACS fees will not be waived. The 
postage statements will be modified to incorporate all new changes.

Mailer Comment

    What mechanisms are in place to correct erroneous information in 
the Mailer Scorecard?

USPS Response

    The Postal Service is working internally to validate the Mailer 
Scorecard. All known systemic issues are currently being addressed. In 
addition, a task team consisting of both Postal Service and Mailing 
Industry representatives is validating the reliability and stability of 
the Mailer Scorecard and all corresponding reports. After the 
assessment period begins, if new issues are identified, the Postal 
Service will remove all applicable charges resulting from USPS systemic 
issues.

Mailer Comment

    Under the new measurement process, what is the actual assessment 
fee for mailpieces that exceed the established error threshold?

USPS Response

    The address quality assessment fee has not been determined and is 
subject to USPS management and regulatory approval.

Mailer Comment

    Will the address quality assessment fee vary based on the 
disposition activity (forwarded, returned, or destroyed) of the 
mailpieces in question?

USPS Response

    No; the address quality assessment fee will be the same for all 
mailpieces that exceed the established Address Quality Census 
Measurement and Assessment Process error threshold, regardless of 
whether they are forwarded, returned, or destroyed.

Mailer Comment

    What happens if mail is mistakenly run through MERLIN? Is there a 
risk of double jeopardy?

USPS Response

    If mail is mistakenly processed on MERLIN, there will be no risk of 
double jeopardy. Once mailers qualify for the Address Quality Census 
Measurement and Assessment Process, they will be removed from the 
MERLIN Move Update verification process. Prior to the implementation of 
the Address Quality Census Measurement and Assessment Process, all 
Postal Service acceptance employees will be trained. However, if a 
mailing is mistakenly processed on MERLIN and additional postage under 
that method is assessed, the associated assessment fee will be removed.

Mailer Comment

    Will MERLIN be used for evaluating mail in the future?

USPS Response

    MERLIN will still be used to measure Move Update compliance for 
those mailers who enter mailings that do not meet the requirements to 
be evaluated under the newly proposed Address Quality Census 
Measurement and Assessment Process.

Mailer Comment

    Will the error threshold for the newly proposed process be applied 
at the Mail Owner or CRID level?

USPS Response

    The error threshold for the new proposed Address Quality Census 
Measurement and Assessment Process will apply to the eDoc submitter at 
the CRID level.

Mailer Comment

    Regarding assessments, it is recommended that the Postal Service 
focus on the individual Mail Owner, which will allow the MSP to be free 
from the onerous task of determining who should pay an assessment fee.

USPS Response

    The Postal Service is providing specific data to assist the MSP 
with identifying the Mail Owners who are exceeding the established 
Address Quality Census Measurement and Assessment Process error 
threshold and contributing to the assessment fee.

Mailer Comment

    When the Mail Preparer performs the Move Update functions, will the 
Postal Service negotiate the credit between the Mail Owner and MSP?

USPS Response

    All assessments will be remitted to the eDoc submitter for payment; 
negotiations between the Mail Owner and MSP will not be managed by the 
Postal Service.

Mailer Comment

    How will the Postal Service ensure that the data from the 
MicroStrategy Report within the Mailer Scorecard is reliable?

USPS Response

    An internal Postal Service team as well as a task team consisting 
of both Postal Service and Mail Industry representatives will validate 
the data integrity of the MicroStrategy Reports and Mailer Scorecard. 
These reports outline detailed mailpiece data for errors that are 
captured.

Mailer Comment

    Will there still be two different databases relative to address 
changes, i.e. Postal Automated Redirection System (PARS) vs. 
NCOA\Link\?

USPS Response

    Yes, two separate databases will continue to exist as follows:
    [ssquf] PARS: This database has 18 months of COA data for 
processing UAA mail.

[[Page 43969]]

    [ssquf] NCOA\Link\: This database holds up to 48 months of COA data 
for updating mailing lists.

Mailer Comment

    Does the United States Postal Inspection Service (USPIS) agree with 
the newly proposed measurement process, and how will investigations be 
determined?

USPS Response

    Yes, USPIS agrees with the decision to utilize the newly proposed 
Address Quality Census Measurement and Assessment Process, which allows 
the Postal Service to leverage technology. Also, USPIS will continue to 
collaborate with the Postal Service on all matters, including the 
determination of whether investigations are warranted.

Background

    The Postal Service requires mailers to update address-related 
changes through the Move Update requirements process. Currently, Move 
Update compliance is measured at the mailing level using MERLIN as 
follows:
    [ssquf] At the point of acceptance, mailings are randomly selected 
for address quality assessment, and samples of the selected mailings 
are processed through MERLIN.
    [ssquf] PostalOne![supreg] sends an electronic version of the 
mailer's Postage Statement Message (PSM) to the MERLIN Maintenance and 
Operations Database (MMOD).
    [ssquf] MMOD routes the PSM to the appropriate site and MERLIN 
machine.
    [ssquf] Postal Service personnel generate a verification report, 
and the report produces a set of results that are routed back to the 
MMOD system.
    [ssquf] MERLIN generates a report that provides the details on mail 
quality.
    [ssquf] MMOD sends an Address Quality Validation System (AQVS) 
message-stream of addresses, names, and ZIP Codes to the National 
Customer Support Center (NCSC) for Move Update processing.
    [ssquf] MERLIN captures the address information from the mailpiece 
and electronically sends each record to the NCSC to see if there is a 
COA on file.
    [ssquf] The piece is identified as an error if the mailer did not 
use the updated address indicated in the COA on file, and the COA 
``filing date'' is between 95 days and 18 months of the postage 
statement finalization date.
    [ssquf] MMOD sends mail verification results (whether the mailer 
passed) to the PostalOne! System.
    [ssquf] NCSC processes the AQVS data stream and sends the results 
to PostalOne!, which addresses the Move Update failures.
    [ssquf] PostalOne! uses the mail verification and NCSC Move Update 
results to formulate the final charges.
    In 2013, the Postal Service introduced the concept of measuring and 
assessing mail quality for mailings over a calendar month for Full-
Service Intelligent Mail, eInduction, and Seamless Acceptance. Since 
August 2014, Postal Service technology has further evolved so that, 
when mailers use an IMb and submit their postage statements and 
supporting documentation electronically, data collection scans from 
mail processing equipment (MPE) can be used to evaluate the address and 
move-related quality of mail being processed. Accordingly, the Postal 
Service is using this technology as an alternative to measure and 
evaluate the quality of mailings.

Future Process

    The Postal Service is proposing to add a Move Update compliance 
verification process named the Address Quality Census Measurement and 
Assessment Process for letter- and flat-size pieces of FCM and Standard 
Mail that meet the requirements for Basic or Full-Service mailings.
    Mailers of Periodicals will be provided with address quality data; 
however, Periodicals will not fall under the Address Quality Census 
Measurement and Assessment Process. This newly proposed process will 
result in several benefits including enhanced mailing visibility and 
improved mail quality metrics over all mailings within a calendar 
month, rather than sampled mailings.
    This process is a much more robust method to assess Move Update 
compliance, which would be measured across all mailings within a 
calendar month according to the following process:
    [ssquf] Mailpieces are scanned on MPE.
    [ssquf] Data from mailpieces identified as UAA is captured and 
evaluated to determine if COA information is on file.
    [ssquf] The address information for mailpieces matching an active 
COA is captured from the piece and sent electronically to NCSC.
    [ssquf] NCSC forwards COA information to the Address Quality Census 
Measurement and Assessment Process for evaluation.
    [ssquf] Move Update validations are performed by comparing the MID 
+ Serial Number of the IMb from the COA-related mailpiece data. If the 
COA is between 95 days and 18 months old, and the address has not been 
updated, then a COA error for the associated IMb is logged and 
allocated under the CRID of the eDoc submitter.
    [ssquf] The proposed Address Quality Census Measurement and 
Assessment Process error threshold that is under consideration is 0.5 
percent. This threshold, which is subject to review at the PRC, would 
be applied to all pieces submitted by an eDoc submitter in a calendar 
month.
    [ssquf] The Postal Service would assess the relevant eDoc submitter 
CRID for each non-compliant mailpiece beyond the threshold.
    [ssquf] The data would be collected and reported on the Mailer 
Scorecard under the eDoc submitter CRID.

Address Quality Assessment Fee

    The address quality assessment fee will be applied to mailpieces in 
qualifying mailings that contain COA errors in excess of the 
established Address Quality Census Measurement and Assessment Process 
error threshold. This address quality assessment fee is currently 
pending management and regulatory approval.
    Once the Address Quality Census Measurement and Assessment Process 
is in place, qualifying mailings will no longer be required to document 
Move Update compliance methods on the postage statement, mail.dat, or 
mail.xml. However, documents demonstrating the method used should be 
available upon request by the Postal Service, and mailers must continue 
to use a Move Update method in order to remain below the Address 
Quality Census Measurement and Assessment Process error threshold, 
expedite the delivery of mail by avoiding mail forwarding, and increase 
the security and privacy of sensitive customer information.

Mailer Scorecard

    The Mailer Scorecard is currently available to mailers. This report 
provides data that allow mailers to gauge address quality on their 
mailpieces. After the final rule is implemented and the PRC review is 
completed, mailings with errors that exceed the newly proposed Address 
Quality Census Measurement and Assessment Process error threshold will 
incur an address quality assessment fee.

Criteria

    The Address Quality Census Measurement and Assessment Process will 
apply to mailings when mailers:
    [ssquf] Submit any mailpieces during a calendar month as Full-
Service.
    [ssquf] Use a unique Basic or Full-Service IMb on mailings of 
letter- and flat-size pieces for FCM and Standard Mail.
    [ssquf] Use eDoc to submit mailing information.

[[Page 43970]]

Specifications

    After the test period commences, address quality will be measured 
as follows:
    [ssquf] Analysis will be performed on all pieces in the mailing, 
rather than on a sample.
    [ssquf] The assessment will be determined by the number of COA 
errors, in a calendar month, divided by the total number of pieces 
mailed that were subject to analysis. The resulting percentage will be 
compared to the established Address Quality Census Measurement and 
Assessment Process error threshold.
    [ssquf] There are a number of exclusions to the measurement and 
assessment process. Generally, mailpieces with addresses that have the 
following COA characteristics will not be included in the assessment: 
Temporary moves, MLNA, BCNO, and COA data for foreign addresses.
    [ssquf] Mailpieces authorized for the Legal Restraint alternate 
Move Update method (See Guide to Move Update) will be excluded at the 
CRID level of the Mail Owner, during a short transition period. After 
the transition period, an established MID will be identified for use on 
mailpieces that fall under the Legal Restraint method.

Mailpiece Results

    Once qualifying mailings are processed on MPE, the data from 
mailpieces are reconciled with eDoc. These results are available on the 
BCG and displayed on the Electronic Verification tab of the Mailer 
Scorecard, which can be easily accessed at https://gateway.usps.com/eAdmin/view/signin. Mailers are able to review the Mailer Scorecard and 
corresponding detailed reports to identify any anomalies or issues.
    To resolve Mailer Scorecard irregularities, mailers should contact 
the PostalOne! [supreg] Help Desk at 800-522-9085 or their local 
Business Mail Entry Unit (BMEU).

Address Change Service and Correction Notifications

    In order to further encourage the adoption of Full-Service, the 
Postal Service is proposing to extend free Full-Service ACS to 
qualifying Basic automation and non-automation mailpieces for mailers 
who enter at least 95 percent of their mail as Full-Service in a 
calendar month. The Basic mailpieces must be prepared as follows:
    [ssquf] Bear a unique IMb printed on the mailpiece.
    [ssquf] Include a Full-Service ACS or OneCode ACS[supreg] STID in 
the IMb.
    [ssquf] Include the unique IMb in eDoc.
    [ssquf] Provide accurate mail owner identification in eDoc.
    Address change information will be provided to the Mail Owner 
identified in eDoc. Address change information which does not qualify 
for free ACS will continue to be provided through SingleSource at the 
appropriate charge.
    As part of this proposed rule, mailers who enter mailings of Full-
Service Periodicals would no longer be required to receive and pay for 
manual address corrections when a Full-Service ACS STID is used. 
However, these mailers may elect to receive and pay for manual address 
correction notifications by including the appropriate STID within the 
IMb.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

    Although exempt from the notice and comment requirements of the 
Administrative Procedure Act (5 U.S.C. 553(b), (c)) regarding proposed 
rulemaking by 39 U.S.C. 410(a), the Postal Service invites public 
comments on the following proposed revisions to Mailing Standards of 
the United States Postal Service, Domestic Mail Manual (DMM), 
incorporated by reference in the Code of Federal Regulations. See 39 
CFR 111.1. Accordingly, 39 CFR part 111 is proposed to be amended as 
follows:

PART 111--[AMENDED]

0
1. The authority citation for 39 CFR part 111 continues to read as 
follows:

    Authority:  5 U.S.C. 552(a); 13 U.S.C. 301-307; 18 U.S.C. 1692-
1737; 39 U.S.C. 101, 401, 403, 404, 414, 416, 3001-3011, 3201-3219, 
3403-3406, 3621, 3622, 3626, 3632, 3633, and 5001.

0
2. Revise the following sections of Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM), as follows:

Mailing Standards of the United States Postal Service, Domestic Mail 
Manual (DMM)

* * * * *

507 Mailer Services

1.0 Treatment of Mail

* * * * *

1.5 Treatment for Ancillary Services by Class of Mail

* * * * *

1.5.2 Periodicals

* * * * *
    [Revise 507.1.5.2c by changing the last word of the sentence to 
``received'' as follows:]
    c. Address correction service is mandatory for all Periodicals 
publications, and the address correction service fee must be paid for 
each notice received.
* * * * *

4.0 Address Correction Services

* * * * *

4.2 Address Change Service (ACS)

* * * * *

4.2.2 Service Options

    [Revise 507.4.2.2 by modifying the introductory sentence and adding 
a new item ``d'' as follows:]
    ACS offers four levels of service, as follows:
* * * * *
    d. A Full-Service option available to mailings of First-Class Mail 
automation cards, letters, and flats; Standard Mail automation letters 
and flats; Standard Mail Carrier Route, High Density, and Saturation 
letters; Periodicals Outside County barcoded or Carrier Route letters 
and flats; Periodicals In-County automation or Carrier Route letters 
and flats; and Bound Printed Matter Presorted, non-DDU barcoded flats. 
Mailers who present at least 95 percent of their eligible First-Class 
Mail and Standard Mail volume as Full-Service in a calendar month will 
receive electronic address correction notices for their qualifying 
mailpieces of Basic automation and non-automation First-Class Mail and 
Standard Mail at the address correction fee for pieces which are 
eligible under the Full-Service Intelligent Mail option in 705.23.0, 
for the next calendar month. The Basic First-Class Mail and Standard 
Mail mailpieces must:
    1. Bear a unique IMb printed on the mailpiece.
    2. Include a Full-Service or OneCode ACS STID in the IMb.
    3. Include the unique IMb in eDoc.
    4. Provide accurate mail owner identification in eDoc.
* * * * *

4.2.8 Address Correction Service Fee

    [Revise 507.4.2.8 by deleting the current language and adding new 
language as follows:]
    ACS fees will be assessed as follows:
    a. The applicable fee for address correction is charged for each 
separate notification of address correction or the reason for 
nondelivery provided, unless an exception applies.
    b. Once the ACS fee charges have been invoiced, any unpaid fees for 
the prior invoice cycle (month) will be assessed an annual 
administrative fee of 10 percent for the overdue amount.

[[Page 43971]]

    c. Mailers who present at least 95 percent of their eligible First-
Class Mail and Standard Mail volume as Full-Service in a calendar month 
will receive electronic address correction notices for their qualifying 
Basic automation and non-automation First-Class Mail and Standard Mail 
mailpieces, as specified in 4.2.2. The electronic address correction 
notices are charged at the applicable Full-Service address correction 
fee for the next calendar month.
* * * * *

600 Basic Mailing Standards for All Mailing Services

* * * * *

602 Addressing

* * * * *

5.0 Move Update Standards

* * * * *

5.3 Basis for Move Update Assessment Charges

    [Revise 602.5.3 by removing the current language and adding new 
5.3.1. and 5.3.2 as follows:]

5.3.1 Basic Move Update Assessment Charge

    Mailings that do not fall under 5.3.2 are subject to a Move Update 
assessment charge, if more than 30 percent of addresses with a change-
of-address (COA) are not updated, based on the error percent found in 
Postal Service sampling at acceptance during Performance-Based 
Verification. Specifically, mailings for which the sample contains 
greater than 30 percent failed COAs out of the total COAs in the sample 
are subject to additional postage charges as follows:
    a. The percentage of the mailing paying the charge is based on the 
percentage of failed pieces above 30 percent.
    b. Each of the assessed pieces is subject to the established per 
piece charge.
    c. As an example, if 40 percent of COAs in the sample are not 
updated, then the charge is applied to 10 percent (= 40%-30%) of the 
total mailing.
    d. Mailings for which the sample has five or fewer pieces that were 
not updated for a COA are not subject to the assessment, regardless of 
the failure percentage.

5.3.2 Address Quality Census Measurement and Assessment Charge

    Mailers who have submitted any Full-Service volume in a calendar 
month will be subject to the Address Quality Census Measurement and 
Assessment Process beginning in the next calendar month. Mailings will 
be subject to the Address Quality Census Measurement Assessment charge 
(address quality assessment fee) if submitted via eDoc with unique 
Basic or Full-Service IMbs on letter- and flat-size pieces of First-
Class Mail and Standard Mail. The address quality assessment fee will 
be assessed if:
    a. The percent of all qualifying mail submitted in a calendar month 
that have a COA error is greater than the Address Quality Census 
Measurement and Assessment Process error threshold, as determined by an 
analysis of the data captured by mail processing equipment. A COA error 
occurs when the address on the mailpiece has not been updated within 95 
days of the COA move effective date or the COA record creation date, 
whichever is later.
    b. Each mailpiece with addresses containing COA errors in excess of 
the Address Quality Census Measurement and Assessment Process error 
threshold will pay the address quality assessment fee.

5.4 Mailer Certification

    [Revise 602.5.4 by modifying introductory paragraph and adding new 
items ``a'' and ``b'' as follows:]
    The mailer's signature on the postage statement certifies that the 
Move Update standard has been met for each address in the corresponding 
mailing presented to the USPS as follows:
    a. For mailings that fall under 5.3.1, the mailer's signature on 
the postage statement certifies that the Move Update standard has been 
met for each address in the corresponding mailing presented to the 
Postal Service.
    b. For mailings that fall under 5.3.2, the Move Update compliance 
method does not need to be declared on the postage statement or within 
the mail.dat or mail.xml file. However, documentation demonstrating 
compliance must be retained and provided upon request of the Postal 
Service.
* * * * *

700 Special Standards

* * * * *

705 Advanced Preparation and Special Postage Payment Systems

* * * * *

23.0 Full-Service Automation Option

* * * * *

23.5 Additional Standards

* * * * *

23.5.2 Address Correction Notices

    [Revise 705.23.5.2a as follows:]
    a. Address correction notices will be provided at the applicable 
Full-Service address correction fee for letters and flats eligible for 
the Full-Service option, except for Standard Mail ECR flats, BPM flats 
dropshipped to DDUs, or BPM carrier route flats. Mailers who present at 
least 95 percent of their eligible First-Class Mail and Standard Mail 
volume as Full-Service in a calendar month will receive electronic 
address correction notices for their qualifying Basic automation and 
non-automation First-Class Mail and Standard Mail pieces charged at the 
applicable Full-Service address correction fee for the next calendar 
month. The Basic automation and non-automation First-Class Mail and 
Standard Mail mailpieces must:
    1. Bear a unique IMb printed on the mailpiece.
    2. Include a Full-Service or OneCode ACS STID in the IMb.
    3. Include the unique IMb in eDoc.
    4. Provide accurate mail owner identification in eDoc.
* * * * *
    We will publish an appropriate amendment to 39 CFR part 111 to 
reflect these changes, if our proposal is adopted.

Stanley F. Mires,
Attorney, Federal Compliance.
[FR Doc. 2016-15649 Filed 7-5-16; 8:45 am]
 BILLING CODE 7710-12-P
Federal Register / Vol. 81, No. 129 / Wednesday, July 6, 2016 / Proposed Rules 43965

economic impact on a substantial agent such as a licensed customs broker. published a notice of proposed
number of small entities. For IE and T&E in-bond shipments, and rulemaking (79 FR 76930–76931) to add
goods to be delivered to an FTZ, the ISF a process for measuring address quality.
C. Unfunded Mandates Reform Act of From that proposed rule, the mailing
Importer may also be the party filing the
1995 industry provided many insightful and
IE, T&E, or FTZ documentation. For
Title II of the Unfunded Mandate FROB cargo, the ISF Importer will be valuable comments (outlined later in
Reform Act of 1995 (UMRA) requires the carrier or the non-vessel operating this document) to the Postal Service and
agencies to assess the effects of their common carrier. requested that a revised proposed rule
regulatory actions on State, local, and * * * * * be published. Therefore, we are
tribal governments and the private renaming and revising our original
sector. This proposed rule is exempt Dated: June 28, 2016. proposal, and publishing it with a
from these requirements under 2 U.S.C. Jeh Charles Johnson, request for additional comments. This
1503 (Exclusions) which states that Secretary. proposed rulemaking is subject to both
UMRA ‘‘shall not apply to any provision [FR Doc. 2016–15687 Filed 7–5–16; 8:45 am] Postal Service management and Postal
in a bill, joint resolution, amendment, BILLING CODE 9111–14–P Regulatory Commission (PRC)
motion, or conference report before approvals.
Congress and any provision in a The Postal Service continues to look
proposed or final Federal regulation that POSTAL SERVICE for opportunities to work with mailers
is necessary for the national security or to improve address quality and reduce
the ratification or implementation of 39 CFR Part 111 undeliverable-as-addressed (UAA) mail.
international treaty obligations.’’ We have developed a newly proposed
Address Quality Census Measurement procedure, the Address Quality Census
D. Paperwork Reduction Act and Assessment Process Measurement and Assessment Process,
In accordance with the Paperwork to measure address quality pertaining to
AGENCY: Postal ServiceTM. move-related changes. This proposed
Reduction Act of 1995 (44 U.S.C. 3507),
an agency may not conduct, and a ACTION:Supplemental notice of process will allow the Postal Service to
person is not required to respond to, a proposed rulemaking. provide valuable feedback to mailers
collection of information unless the who enter eligible letter- and flat-size
SUMMARY: The Postal Service is revising
collection of information displays a pieces of FCM and Standard Mail that
its pending proposal to amend Mailing
valid control number assigned by OMB. meet the requirements for Basic or Full-
Standards of the United States Postal
The collections of information related to Service mailings.
Service, Domestic Mail Manual The Address Quality Census
this NPRM are approved by OMB under (DMM®), to include a newly proposed
collection 1651–0001. Measurement and Assessment Process
measurement and assessment procedure will utilize a scorecard for mailers that
List of Subjects in 19 CFR Part 149 for evaluating address quality for conveys information on address hygiene
mailers who enter eligible letter- and as well as Move Update quality. The
Arrival, Declarations, Customs duties
flat-size pieces of First-Class Mail® scorecard provides mailers with change-
and inspection, Freight, Importers,
(FCM) and Standard Mail® that meet the of-address (COA) data as well as details
Imports, Merchandise, Reporting and
requirements for Basic or Full-Service about mailpieces that are UAA.
recordkeeping requirements, Shipping,
mailings. Presently, one of the benefits of the
Vessels.
DATES: Submit comments on or before Full-Service Intelligent Mail® program
Proposed Amendment to the August 5, 2016. is free Address Change Service (ACSTM)
Regulations for mailpieces prepared in accordance
ADDRESSES: Mail or deliver written
For the reasons stated in the comments to the manager, Product with Full-Service requirements. In order
preamble, DHS proposes to amend part Classification, U.S. Postal Service, 475 to further encourage the adoption of
149 of title 19 of the Code of Federal L’Enfant Plaza SW., Room 4446, Full-Service and to increase the number
Regulations (19 CFR part 149), as set Washington, DC 20260–5015. If sending of mailers that receive address quality
forth below: comments by email, include the name information, the Postal Service is
and address of the commenter and send proposing to extend free ACS to mailers
PART 149—IMPORTER SECURITY who enter qualifying Basic automation
to Product;Classification@usps.gov,
FILING and non-automation mailpieces that
with a subject line of ‘‘Address Quality
Census Measurement and Assessment meet the criteria of the Address Quality
■ 1. The authority citation for part 149 Census Measurement and Assessment
continues to read as follows: Process.’’ Faxed comments are not
accepted. Process and to mailers that meet a Full-
Authority: 5 U.S.C. 301; 6 U.S.C. 943; 19 Service threshold of 95 percent along
You may inspect and photocopy all
U.S.C. 66, 1624, 2071 note. with other requirements, which are
written comments, by appointment
■ 2. Section 149.1(a) is revised to read only, at USPS® Headquarters Library, outlined later in this document.
as follows: 475 L’Enfant Plaza SW., 11th Floor Today, some mailers who enter
North, Washington, DC 20260. These Periodicals could potentially be charged
§ 149.1 Definitions. for manual address correction notices
records are available for review on
(a) Importer Security Filing Importer. Monday through Friday, 9 a.m.–4 p.m., on mailpieces using a Full-Service ACS
For purposes of this part, Importer Service Type IDentifier (STID). The
ehiers on DSK5VPTVN1PROD with PROPOSALS

by calling 202–268–2906.
Security Filing Importer (ISF Importer) Postal Service is proposing that mailers
FOR FURTHER INFORMATION CONTACT:
means the party causing goods to arrive who enter Full-Service Periodicals
within the limits of a port in the United Heather Dyer, USPS Mail Entry, Phone: mailings using a Full-Service ACS STID
States by vessel. For shipments other (207) 482–7217, email: heather.l.dyer@ will not be required to receive or pay for
than foreign cargo remaining on board usps.gov. manual address correction notices
(FROB), the ISF Importer will be the SUPPLEMENTARY INFORMATION: On unless they are requested. Although
goods’ owner, purchaser, consignee, or December 23, 2014, the Postal Service mailers who enter Periodicals will be

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43968 Federal Register / Vol. 81, No. 129 / Wednesday, July 6, 2016 / Proposed Rules

(VAE). Mailers can also review Scorecard and all corresponding reports. Mailer Comment
assessment information through the After the assessment period begins, if Will the error threshold for the newly
Mailer Scorecard. new issues are identified, the Postal proposed process be applied at the Mail
D VAE accesses BCG and pays Service will remove all applicable Owner or CRID level?
invoice. charges resulting from USPS systemic
D If a VAE is not in agreement with issues. USPS Response
the charges, the VAE may dispute The error threshold for the new
Mailer Comment
charges by requesting a review and proposed Address Quality Census
providing supporting documentation Under the new measurement process, Measurement and Assessment Process
within 10 days of assessment what is the actual assessment fee for will apply to the eDoc submitter at the
notification. mailpieces that exceed the established CRID level.
D Business Mail Entry (BME) reviews error threshold?
the documentation and contacts the Mailer Comment
USPS Response
mailer with results. Regarding assessments, it is
The address quality assessment fee recommended that the Postal Service
Mailer Comment has not been determined and is subject focus on the individual Mail Owner,
Will there be changes to the National to USPS management and regulatory which will allow the MSP to be free
Change of Address Linkage System approval. from the onerous task of determining
(NCOALink®)? Mailer Comment who should pay an assessment fee.
USPS Response Will the address quality assessment USPS Response
Currently, there are no changes to the fee vary based on the disposition The Postal Service is providing
database for NCOALink which would activity (forwarded, returned, or specific data to assist the MSP with
affect a mailer’s ability to use the destroyed) of the mailpieces in identifying the Mail Owners who are
product or comply with Move Update question? exceeding the established Address
requirements. If such changes are USPS Response Quality Census Measurement and
anticipated, the Postal Service is always Assessment Process error threshold and
willing to work with mailers to mitigate No; the address quality assessment fee contributing to the assessment fee.
impacts. will be the same for all mailpieces that
exceed the established Address Quality Mailer Comment
Mailer Comment Census Measurement and Assessment When the Mail Preparer performs the
Is it the intent of the Postal Service to Process error threshold, regardless of Move Update functions, will the Postal
make ACS the default source for Move whether they are forwarded, returned, Service negotiate the credit between the
Update changes and eliminate the other or destroyed. Mail Owner and MSP?
methods (NCOALink Mail Processing Mailer Comment
Equipment (MPE), Ancillary Service USPS Response
Endorsement (ASE), and NCOALink)? What happens if mail is mistakenly All assessments will be remitted to
run through MERLIN? Is there a risk of the eDoc submitter for payment;
USPS Response double jeopardy? negotiations between the Mail Owner
The Postal Service has no intention of USPS Response and MSP will not be managed by the
making ACS the default source for Move Postal Service.
Update or eliminating any of the other If mail is mistakenly processed on
USPS-approved Move Update methods. MERLIN, there will be no risk of double Mailer Comment
jeopardy. Once mailers qualify for the How will the Postal Service ensure
Mailer Comment Address Quality Census Measurement that the data from the MicroStrategy
Will the traditional ACS be free and and Assessment Process, they will be Report within the Mailer Scorecard is
postage statements be modified to removed from the MERLIN Move reliable?
reflect these new changes? Update verification process. Prior to the
implementation of the Address Quality USPS Response
USPS Response Census Measurement and Assessment An internal Postal Service team as
In general, the traditional ACS fees Process, all Postal Service acceptance well as a task team consisting of both
will not be waived. The postage employees will be trained. However, if Postal Service and Mail Industry
statements will be modified to a mailing is mistakenly processed on representatives will validate the data
incorporate all new changes. MERLIN and additional postage under integrity of the MicroStrategy Reports
that method is assessed, the associated and Mailer Scorecard. These reports
Mailer Comment
assessment fee will be removed. outline detailed mailpiece data for
What mechanisms are in place to errors that are captured.
correct erroneous information in the Mailer Comment
Mailer Scorecard? Will MERLIN be used for evaluating Mailer Comment
mail in the future? Will there still be two different
USPS Response
databases relative to address changes,
The Postal Service is working USPS Response
ehiers on DSK5VPTVN1PROD with PROPOSALS

i.e. Postal Automated Redirection
internally to validate the Mailer MERLIN will still be used to measure System (PARS) vs. NCOALink?
Scorecard. All known systemic issues Move Update compliance for those
are currently being addressed. In mailers who enter mailings that do not USPS Response
addition, a task team consisting of both meet the requirements to be evaluated Yes, two separate databases will
Postal Service and Mailing Industry under the newly proposed Address continue to exist as follows:
representatives is validating the Quality Census Measurement and D PARS: This database has 18 months
reliability and stability of the Mailer Assessment Process. of COA data for processing UAA mail.

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Document Created: 2016-07-06 07:56:02
Document Modified: 2016-07-06 07:56:02
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Supplemental notice of proposed rulemaking.
Dates		Submit comments on or before August 5, 2016.
Contact		Heather Dyer, USPS Mail Entry, Phone: (207) 482-7217, email: [email protected]
FR Citation		81 FR 43965
CFR Associated		Administrative Practice and Procedure and Postal Service