Modified Rates Effective July 1, 2001

The Governors of the Postal Service have voted to modify domestic postage rates and fees for various classes and services. The Board of Governors has directed that these changes be implemented at 12:01 a.m. on Sunday, July 1, 2001.

This special section of the Postal Bulletin contains the following information:

· Additional resources for information about modified rates.

· Summary of changes by class of mail.

· Mail acceptance procedures.

· Availability of postage statements.

· New Retail procedures and checklists.

· Sample customer letters.

· Local contacts.

· Complete listing of new rates and fees.

· Updated postage statements.

· Employees stand-up talk, modified postage rates counter card, and door poster.

Additional Resources

Domestic Mail Manual R Module

The Domestic Mail Manual (DMM) R module, which contains all rates and fees, has been updated to reflect new postage rates and fees. The complete R module is included later in this Postal Bulletin. All changes have been marked with the July 1 revision date and a revision bar in the margin of the page.

Electronic versions (PDF and HTML) of updated DMM 56 will be posted on the Postal Explorer Web site (http://pe.usps.gov) on July 1, 2001. Employees are encouraged to share this information with customers so that they can prepare for the rate change.

Updated DMM 56 will be included in Postal Explorer 12.0 (CD-ROM and LAN versions).

Postage Statements

Twenty-three postage statements have been revised as a result of the July 1 rate change. Copies of the revised statements appear later in this Postal Bulletin.

Who to Contact With Questions

If you have questions about the rate modification that are not answered by this Postal Bulletin or by other materials, please contact your district implementation coordinator. A list of coordinators appears in this Postal Bulletin.

- Mail Preparation and Standards,Pricing and Product Design, 5-31-01

Summary of Changes

First-Class Mail

The single-piece first-ounce letter rate will remain 34 cents. The rate for each additional ounce will increase from 21 cents to 23 cents. The first ounce at the presorted rate, automation rate, and automation carrier route rate will increase by 0.2 cent. The nonstandard surcharge remains the same - 11 cents for single-piece rates and 5 cents for automation and presorted rates. All card rates will increase by 1 cent. The fee for stamped cards will remain at 2 cents, in addition to the postage.

Business Reply Mail

Only the underlying postage rates will change. Accounting fees and per-piece charges are not affected. For basic and high-volume business reply mail the card rate will increase to 21 cents. For qualified business reply mail (QBRM) the card rate will increase from 17 to 18 cents. The rate for each additional ounce for all BRM will increase from 21 to 23 cents.

Priority Mail

The newly implemented Priority Mail rate for 1 pound or less will remain $3.50. The 2-pound and flat-rate envelope for Priority Mail will remain $3.95. Rates over 2 pounds will increase by varying amounts.

Express Mail

Express Mail rates will increase 1.5 percent across the board. The increases will range from 15 cents to $1.80 per piece. The Express Mail Post Office to Addressee service half-pound rate will increase by 20 cents, to $12.45, and the 2-pound flat rate will increase 25 cents, to $16.25.

Customers who use Post Office to Post Office or Custom Designed services will see small increases in those two service options.

Periodicals

Overall, Periodical mail rates will increase by an average of 2.6 percent. The 5 percent differential for nonprofit and classroom rates will remain the same. There will be no change to application, additional entry, and reentry fees. The experimental ride-along rate will remain 10 cents.

Outside-County Periodicals

Zoned advertising pound rate increases will range from 0.5 cent to 1.5 cents per pound, depending on how far the publication travels. The non-advertising pound portion of the Periodicals rate will increase by 0.6 cent, from 17.3 to 17.9 cents. Piece rates will increase from 0.2 cent for carrier route saturation levels to 0.8 cent for non-automation basic rate addressed pieces. The discount for the non-advertising percentage applied to pieces will increase from .00065 to .00067 cent.

In-County Periodicals

Pound rates will increase by 0.2 cent. Rates for addressed pieces will increase by 0.1 cent with the exception of the basic and 3-digit automation rates, which will remain the same.

Standard Mail

All non-carrier route rates will increase by 0.3 cent. Enhanced Carrier Route (ECR) pieces will increase by 0.2 cent. Nonprofit rates will have the same increases of 0.2 cent for ECR piece rates and 0.3 cent for all other nonprofit piece rates. There will be no changes to the pound rates or to drop ship discounts.

Package Services

Parcel Post retail rates will increase between 0 and 88 cents, depending on zone and weight. Parcel Select will increase between 0 and 66 cents, depending on destination and weight. (Note: Some Parcel Post Intra-BMC and Parcel Select rates will be reduced by 5 cents).

Bound Printed Matter rates will increase between 5 and 41 cents, depending on zone and sort. Media Mail first- pound rates will increase 3 cents across the board. Library Mail single-piece and 5-digit rates will increase 2 cents. BMC sorted Library Mail will increase by 3 cents.

Special Services

The fee for certified mail will increase from $1.90 to $2.10. Domestic money orders will increase from 75 to 90 cents. All other special services are unaffected.

International Mail

The fee for recorded delivery will increase to $2.10.

Mail Acceptance

Acceptance Periods and Policies

Business Mail Entry Units

Mailings presented to business mail entry units (BMEUs), detached mail units (DMUs), and other acceptance locations will be verified for rate eligibility and mail preparation in accordance with existing procedures established by the office of Business Mail Acceptance.

Pieces Metered at Old Rates

Metered license holders may have pieces on hand that bear postage at the old rates. The Postal Service will accept these pieces for mailing until July 31, 2001, provided that the mailer pays the difference between the meter

postage affixed and the applicable new rates and fees (as described below) before the mailing is entered into the mailstream. When dates are required as part of the meter impression, they must appear as shown in DMM P030.4.0.

Postage Difference - Individual Pieces

The difference in postage may be paid on individual pieces (single-piece rate or presorted rate) by affixing a meter impression or meter strip in the correct amount to the mailpiece. Dates in the meter impression must appear as shown in DMM P030.4.0.

Postage Difference - Presorted Pieces

The difference in postage for all pieces in a single mailing claimed at a presorted rate may be paid by affixing postage stamps or a meter strip to the accompanying postage statement in the amount of the total postage difference for all pieces in the mailing, rounded to the full cent. Acceptance personnel must verify the computations on the postage statement to ensure that the proper additional postage is affixed. If the mailer uses postage stamps on the postage statement, the postal acceptance employee must cancel the stamps. As an alternative to applying postage, the total difference in postage may be paid through an advance deposit account and reported on an additional postage statement as described in Handbook F-1, Post Office Accounting Procedures, part 723, until July 31, 2001.

Actions by Postmasters Not at Origin Office

Postmasters at offices other than the office of origin who find metered pieces in the mailstream up to July 31, 2001, bearing either the old presort rates or precanceled postage are to assume that the difference in postage was paid at the time of mailing.

Plant-Verified Drop Shipment

Plant-verified drop shipment (PVDS) mailings will be verified and accepted by postal employees as follows:

a. PVDS mailings verified and paid for before July 1, 2001, will be accepted into the mailstream at destination entry postal facilities through July 14, 2001, if presented with appropriate documentation of verification and payment (PS Form 8125).

b. PVDS mailings may be verified and paid for beginning June 1, 2001, under the rates and preparation standards that take effect July 1, 2001, provided the shipments are not deposited at destination entry Postal Service facilities until July 1, 2001, or later.

Mailpieces Bearing Old Rates - Nonprecanceled Envelopes and Cards

Envelopes prepaid at the old rates may be revalued by affixing enough postage to satisfy the new rates.

- Business Mail Acceptance,Marketing Technology and Channel Management, 5-31-01

Postage Statements

Revised Domestic Postage Statements

Effective July 1, 2001, 23 of the domestic postage statements are revised to implement the rate modifications resulting from the Board of Governors' actions on May 7, 2001. Copies of the revised statements appear later in this Postal Bulletin. These revised statements are dated July 2001. Statements not requiring revision have a January 2001 edition date.

Availability of New Statements

There will be no automatic distribution of the July 2001 statements. Revised statements can be ordered from the Material Distribution Center using normal ordering procedures. All statements are available on the Postal Service Web site (http://www.usps.com/ratecase/forms.htm) in Adobe PDF (print-only) format. They can be printed locally and completed manually. Wherever possible, postmasters and managers of business mail entry should encourage their customers and staff to use the Postal Service Web site to obtain postage statements. Also, you may make copies of the statements that appear in this Postal Bulletin.

Managers of business mail entry need to ensure that all Post Offices and detached mail units within their district's service area have access to all statements needed to satisfy the needs of local mailers. Post Offices without Internet access must be supplied by their district office. Mailers may continue to use January 2001 statements and simply cross out the old postage rate(s) for the mailing and write in the new rate(s).

Statements not requiring revisions and maintaining the January 2001 issue date are as follows:

· 3600-PM, Priority Mail - Permit Imprint

· 3605-PR, Parcel Post - Permit Imprint

· 3605-SR, Parcel Select - Permit Imprint

· 3605-PP, Parcel Post - Postage Affixed

· 3605-SP, Parcel Select - Postage Affixed

· 3605-BP, Bound Printed Matter - Postage Affixed

· 3605-DBP, Destination Entry Bound Printed Matter - Postage Affixed

· 3608-R, Media Mail or Library Mail - Permit Imprint

· 3608-P, Media Mail or Library Mail - Postage Affixed

Computer-Generated Facsimile Postage Statements

Mailers who may have received approval for computer- generated facsimile statements must apply for approval again. All PAVE-certified products that support PS Form facsimiles are required to resubmit the forms with the new rates to the PAVE department before June 15th. The PAVE department will verify the dollar value of the rates only. PAVE-certified developers should contact the PAVE department for instructions on how to submit the forms. The rates and classification service centers (RCSCs) are available to provide guidance to postmasters, district managers of business mail entry, and mailers with questions on this matter. The use of computer software to prepare facsimiles of standard Postal Service forms is a practical way for mailers to prepare statements and is encouraged by the Postal Service. See DMM P012.4.2.

- Mail Preparation and Standards,Pricing and Product Design, 5-31-01

Retail

IRT Coordinator Procedures

Rate change diskettes for all types of integrated retail terminals (IRTs) will be distributed in the same manner as all other IRT software updates. They will be sent to district IRT coordinators in bulk via Express Mail Service. IRT coordinators will be advised via cc:Mail of the expected mailing date.

IRT coordinators who do not receive their diskettes by the expected date or receive an insufficient quantity of diskettes should call the appropriate IRT hotline (see telephone numbers below).

Each shipment will include release notes, which provide software installation instructions and a summary of what has changed in the software. The IRT coordinator will send one diskette and one copy of the release notes to each IRT site.

IRT Retail Site Procedures

Each retail site will install the IRT update after the close of business on Saturday, June 30, 2001, or before opening for business on or after Sunday, July 1, 2001. Sites that do not receive update diskettes by Friday, June 29, 2001, should contact their district IRT coordinator for guidance.

Sites that have difficulty installing the update should contact the appropriate IRT hotline. Any site that discovers at the last minute that its update disk is faulty should attempt to borrow an update disk from a neighboring retail unit. This will be faster than waiting for a disk to be mailed by district or hotline personnel.

The toll-free IRT hotlines are:

· MOS hotline: 1-800-346-0902

· Unisys hotline: 1-800-247-6478

POS ONE Software Updates

IBM and NCR will distribute new software for the rate change via download over the network. The changes will have an effective date of July 1, 2001, but downloads will occur in advance of the implementation date. More details will be provided to POS ONE sites as well as to area and district POS ONE coordinators prior to the rate change. Help desk support will be available at the following number:

· POS ONE help desk: 1-800-USPS-HELP

Lobby Scales

The new rates will require lobby scales to be updated. There are three basic types of lobby scales: mechanical scales, weighing and rating units (WRUs), and electronic scales. Each type will require a different action.

Electronic Scales

Two brands of electronic scales are available through the Material Distribution Center (MDC): the Ascom Hasler model AH30P and Triner model TS30P. See Postal Bulletin 22007 (9-23-99) for ordering instructions.

Triner scales: If a rate change takes place within one year of the shipment of a scale purchased under the agreement published in Material Logistics Bulletin MLB- CO-99-002 (3-19-99), the rate change chip is sent at no additional charge. If this is not the case, Triner will sell their rate change chip for $95.

Ascom Hasler scales: If a rate change takes place within one year of installation of a scale purchased under the agreement published in Material Logistics Bulletin MLB- CO-00-002 (3-19-99), the rate change chip will be shipped at no additional charge. If this is not the case, Ascom Hasler will sell their rate change chip for $100.

Some offices may have purchased after-warranty maintenance agreements that cover rate change upgrades. Check your contract to find out how to contact the vendor for the rate change upgrade. Rate change activity for these scales is to be performed prior to the rate change or as soon as possible thereafter.

Weighing and Rating Units (WRUs)

The maintenance agreement on all Unisys WRUs terminated December 31, 2000. There will be no further maintenance or parts support (see Postal Bulletin 22007 (9-23-99, page 78).

Mechanical Scales (Fan Scales)

With the exception of faceplate replacement, there have been no spare parts, no training, and no maintenance support for these obsolete scales for many years. Still, many smaller retail units use these scales at full-service windows. These scales used anywhere else should be removed.

Mechanical scale faceplate replacements will be available for those scales used at full-service windows by placing an order with the MDC. Faceplate orders must be placed by close of business Friday, June 15, 2001. Employees may requisition items as follows:

· Use Touch Tone Order Entry by calling 1-800-332-0317, option 1, then option 2.

· Send an F3Fill-completed PS Form 7380, MDC Supply Requisition, by cc:Mail to MDC Customer Service @ TOKS001L.

· Mail a completed PS Form 7380 to the following address:

SUPPLY REQUISITIONS
500 SW GARY ORMSBY DR
TOPEKA KS 66624-9702

Districts will be responsible for the printing cost of each faceplate, which is anticipated to range from $20 to $50 per piece. Be sure to include your supply FEDSTRIP number for payment.

We ask that each retail unit place an individual order for their faceplate(s) since we need to identify where these scales are located for replacement purposes. However, if a district insists on making a bulk order for faceplates, a list of retail units where the scales are being used at full-service counters must be electronically sent to:

JIM BOLLENDORF
RETAIL OPERATIONS SUPPORT
US POSTAL SERVICE
1735 N LYNN ST RM 5008
ARLINGTON VA 22209-6053

Lists should include the following: Scale number(s) ordered, FEDSTRIP number, quantity ordered, complete retail unit address, and phone number. Failure to supply this list of locations could jeopardize receiving replacement scales. Following is the list of scales for which faceplates may be ordered:

*Note: Special attention should be given to the 20-ounce fan scales. Charts associated with these scales consist of two pieces. The first piece is a metal scale plate identified as 0-859-AA, BB, CC, or E that has weight indications silk-screened on it. The second piece is a thin, clear plastic, pressure-sensitive overlay identified as 0-859-AD, BD, CD, or ED. The overlays have postage rates printed on them and will have been applied directly over the weight indications silk-screened on the metal plates. All 20-ounce scales currently in service should be this type, and only new plastic overlays (0-859-AD, BD, CD, or ED) should be required. However, if any 20-ounce fan scales are found to contain chart plates of the single-piece design without an overlay (with the rate information as well as weight indication silk-screened directly to the plate), identify those scale quantities.

Stamps By Mail Customer Letter

Dear Stamps By Mail Customer:

The Governors of the U.S. Postal Service have acted on the Recommended Decision of the Postal Rate Commission to change domestic rates and fees for various classes of mail and services effective July 1, 2001.

We have received your Stamps By Mail order; however, you placed your order prior to the rate change. Rather than return your order to you unfulfilled, we have sent the amount of stamps equal to your payment. We are also enclosing an insert with the new rates. If you need to place another order before the new Stamps By Mail order form is available, please cross out the dollar amount on the form and write in the proper amount.

Thank you for understanding. We hope you continue to use our Stamps By Mail program.

Sincerely,

Postmaster

Enclosure

New Retail Signage

New point-of-purchase (POP) to support the rate change will be shipped with the Summer/Fall Kit pack and will arrive in offices the week of June 11, 2001. Instructions will direct offices to hold new menuboards with new rates for display on July 1. The menuboards are for traditional offices and postal stores. Other rate change POP will include Extra Services and U.S. Shipping lobby posters, money order counter cards, stickers, and parcel slide stickers (postal stores only).

- Retail Marketing, Retail, Consumers and Small Business, 5-31-01

Business Customer Letter

The following is a sample letter that can be retyped and printed on local postal letterhead to notify customers of the upcoming modification in postage rates and fees.

Dear Customer:

As a valued customer, we want to keep you informed of changes in postage rates. On May 7, 2001, the Governors of the Postal Service approved a modification of the postage rate schedule put into effect under protest on January 7 of this year. The modified rates will go into effect on July 1, 2001.

The modification will result in an overall average increase of 1.6 percent.

Here are a few highlights of the changes:

· The First-Class Mail single-piece first-ounce letter rate will remain 34 cents.

· The additional ounce rate for First-Class Mail letters will increase from 21 cents to 23 cents each ounce.

· Rates for First-Class Mail letters at the presorted rate, automation rate, and automation carrier route rate will each increase by 0.2 cent.

· All First-Class Mail card rates will increase by 1 cent each.

· The Priority Mail flat rate, 1-pound, and 2-pound rates will not change; however, rates for heavier Priority Mail pieces will increase, as will rates for Express Mail Service, Package Services, Standard Mail, and Periodicals.

· The certified mail fee will increase by 20 cents to $2.10, and the money order fee will increase to 90 cents. No other domestic special services or fees are affected by this modification.

For complete modified rate information, such as rate tables in printable and comma-delimited formats, printable modified postage statements, and more, visit http://www.usps.com/ratecase.

Sincerely,

[INSERT YOUR NAME AND TITLE]

Implementation Materials

The following rate modification items will be printed and distributed in various quantities according to the CAG level of the office:

· Retail Customer Card - 3-11/16" x 8-1/2" finished size.

· Carrier Pocket Rate Card - 3-11/16" x 4-1/4" finished size.

· Lobby Poster (English and Spanish versions) - 18" x 24" finished size.

Distribution to Post Offices and stations and branches is scheduled to begin in early June.

Modified Postage Rates Counter Card

At the end of this Postal Bulletin you will find an easy-to- duplicate counter card that can be used as a "quick glance" guide for postmasters and sales and service associates at offices without electronic terminals. The counter card contains often-used calculations and the most frequently requested domestic rates and fees.

Modified Postage Rates Door Poster

Also at the end of this Postal Bulletin is an easy-to-duplicate modified rate sheet that can be posted on a door or other convenient location to alert customers of the upcoming July 1 modification to postage rates.

Local Contacts/Rate Implementation Coordinators

Domestic Mail Manual R MODULE

Titles For Postage Statements

The following forms appear in the Rate Case section of this Postal Bulletin and are available at www.usps.com:

PS Form 3600-EZ, July 2001, Postage Statement - First-Class Mail - Easy Nonautomation Letters, Cards, or Flats - Permit Imprint

PS Form 3600-R, July 2001 (Page 1 of 2), Postage Statement - First-Class Mail, Permit Imprint

PS Form 3600-R, July 2001 (Page 2 of 2), First-Class Mail - Permit Imprint

PS Form 3600-P, July 2001 (Page 1 of 2), Postage Statement - First-Class Mail, Postage Affixed

PS Form 3600-P, July 2001 (Page 2 of 2), First-Class Mail - Postage Affixed

PS Form 3541, July 2001 (Page 1 of 2), Postage Statement - Periodicals, One Issue or One Edition

PS Form 3541, July 2001 (Page 2 of 2), Periodicals - One issue or One Edition

PS Form 3541-M, July 2001 (Page 1 of 2), Postage Statement - Periodicals, All Issues in a Calendar Month

PS Form 3541-M, July 2001 (Page 2 of 2), Periodicals - All Issues in a Calendar Month

PS Form 3541-X, July 2001 (Page 1 of 2), Postage Statement - Periodicals With Ride- Along Enclosed, One Issue or One Edition

PS Form 3541-X, July 2001 (Page 2 of 2), Periodicals With Ride-Along Enclosed - One Issue or One Edition

PS Form 3602-EZ, July 2001, Postage Statement - Standard Mail - Easy, Nonautomation Letters or Flats - Permit Imprint

PS Form 3602-R, July 2001 (Page 1 of 2), Postage Statement - Standard Mail Letters and Flats, Permit Imprint

PS Form 3602-R, July 2001 (Page 2 of 2), Standard Mail Letters and Flats - Permit Imprint

PS Form 3602-RS, July 2001 (Page 1 of 2), Postage Statement - Standard Mail With Residual Shape Surcharge, Permit Imprint

PS Form 3602-RS, July 2001 (Page 2 of 2), Standard Mail With Residual Shape Surcharge - Permit Imprint

PS Form 3602-P, July 2001 (Page 1 of 2), Postage Statement - Standard Mail Letters and Flats, Postage Affixed

PS Form 3602-P, July 2001 (Page 2 of 2), Standard Mail Letters and Flats - Postage Affixed

PS Form 3602-PS, July 2001 (Page 1 of 2), Postage Statement - Standard Mail With Residual Shape Surcharge, Postage Affixed

PS Form 3602-PS, July 2001 (Page 2 of 2), Standard Mail With Residual Shape Surcharge - Postage Affixed

PS Form 3602-NZ, July 2001, Postage Statement - Nonprofit Standard Mail - Easy, Nonautomation Letters or Flats - Permit Imprint

PS Form 3602-N, July 2001 (Page 1 of 2), Postage Statement - Nonprofit Standard Mail Letters and Flats, Permit Imprint

PS Form 3602-N, July 2001 (Page 2 of 2), Nonprofit Standard Mail Letters and Flats - Permit Imprint

PS Form 3602-NS, July 2001 (Page 1 of 2), Postage Statement - Nonprofit Standard Mail With Residual Shape Surcharge - Permit Imprint

PS Form 3602-NS, July 2001 (Page 2 of 2), Nonprofit Standard Mail With Residual Shape Surcharge - Permit Imprint

PS Form 3602-PN, July 2001 (Page 1 of 2), Postage Statement - Nonprofit Standard Mail Letters and Flats, Postage Affixed

PS Form 3602-PN, July 2001 (page 2 of 2), Nonprofit Standard Mail Letters and Flats - Postage Affixed

PPS Form 3602-NPS, July 2001 (Page 1 of 2), Postage Statement - Nonprofit Standard Mail With Residual Shape, Surcharge - Postage Affixed

PS Form 3602-NPS, July 2001 (Page 2 of 2), Nonprofit Standard Mail With Residual Shape Surcharge - Postage Affixed

PS Form 3602-RC, July 2001 (Page 1 of 2), Consolidated Postage Statement - Standard Mail Letters and Flats, Permit Imprint

PS Form 3602-RV, July 2001 (Page 2 of 2), Standard Mail Letters and Flats - Permit Imprint

PS Form 3602-PRV, July 2001 (Page 1 of 2), Consolidated Postage Statement - Standard Mail Letters and Flats, Postage Affixed

PS Form 3602-PRV, July 2001 (Page 2 of 2), Standard Mail Letters and Flats - Postage Affixed

PS Form 3602-NV, July 2001 (Page 1 of 2), Consolidated Postage Statement - Nonprofit Standard Mail Letters and Flats - Permit Imprint

PS Form 3602-NV, July 2001 (Page 2 of 2), Nonprofit Standard Mail Letters and Flats - Permit Imprint

PS Form 3602-PNV, July 2001 (Page 1 of 2), Consolidated Postage Statement - Nonprofit Standard Mail Letters and Flats - Postage Affixed

PS Form 3602-PNV, July 2001 (Page 2 of 2), Nonprofit Standard Mail Letters and Flats - Postage Affixed

PS Form 3605-BR, July 2001 (Page 1 of 2), Postage Statement - Bound Printed Matter, Permit Imprint

PS Form 3605-BR, July 2001 (Page 2 of 2), Bound Printed Matter - Permit Imprint

PS Form 3605-DBR, July 2001 (Page 1 of 2), Postage Statement - Destination Entry Bound Printed Matter, Permit Imprint

PS Form 3605-DBR, July 2001 (Page 2 of 2), Destination Entry Bound Printed Matter - Permit Imprint

PS Form 3540-S, July 2001, Postage Statement - Supplement