VERIFIED SOLUTION i

Where does the destination information for Pallet Labels come from when presorting with MailStream Plus

Products Affected:  MailStream Plus™ with Palletization Plus, All Platforms
The Domestic Mail Manual (DMM) gives the directions for how to prepare pallets and where to label them to.  
The DMM can be found at pe.usps.gov

(For First-Class mailings only, a mailer may be using the normal DMM preparations, or they may have a USPS Customer/Supplier Agreement.  If the mailer has a Customer/Supplier Agreement, then it is used instead of the standard DMM preparation and labeling.  The information below is based on pallets being prepared per the DMM.)

DMM section 705.8 is about presorting onto pallets.
The individual sections in 705.8.10 give the information for preparing pallets for each Class and Mail Piece type.

8.10.1 is for First-Class Mail—Letter or Flats Trays
8.10.2 is for Periodicals—Bundles, Sacks, or Trays
etc.

Using 705.8.10.3 "Standard Mail or Parcel Select Lightweight-Bundles, Sacks, or Trays" as an example-

Letter a in that section says- 
5-digit scheme carrier routes, required, allowed with no minimum, permitted for bundles of flats only. Pallet must contain only carrier route bundles for the same 5-digit scheme under L001. Labeling:
1. Line 1: L001.
2. “STD” followed by “FLTS”; followed by “CARRIER ROUTES” (or “CR-RTS”); followed by “SCHEME” (or “SCH”).
So a is for preparing 5-digit scheme carrier route pallets, and says they are labelled per L001

Letter e in 705.8.10.3 says-
SCF, required, permitted for bundles, sacks, and trays. Pallet may contain carrier route, automation price, and/or Presorted price mail for the 3-digit ZIP Code groups in L005. Mailers may, at their option, place AADC trays on SCF pallets when the tray's “label to” 3-digit ZIP Code (from L801) is within that SCF's service area. Mailers may also, at their option, place mixed ADC or mixed AADC trays, labeled per L010, on an SCF pallet entered at the SCF facility responsible for the processing of mixed ADC or mixed AADC trays for that NDC/ASF facility. Labeling:
1. Line 1: L002, Column C.
2. Line 2: For flats and irregular parcels, “STD” followed by “FLTS” or “IRREG,” as applicable; followed by “SCF”; followed by “BARCODED” (or “BC”) if pallet contains automation price mail; followed by “NONBARCODED” (or “NBC”) if pallet contains carrier route and/or Presorted price mail. For letters, “STD LTRS SCF”; followed by “BC” if pallet contains barcoded letters; followed by “MACH” if pallet contains machinable letters; followed by “MAN” if pallet contains nonmachinable letters.
So SCF pallet destinations are per Labeling List L002 column C

Each 705.8.10.x letter is for a different pallet level, and gives instructions as to where that level of pallet is to be labelled to.
UPDATED:  March 28, 2019