New price and product changes will be effective Monday, May 14, 2007. The changes encompass all classes of domestic mail, extra services and other fees, and international mail. The new pricing system puts an emphasis on shape to more accurately reflect the true cost of doing business.
Today, we will go over key points of the changes to First-Class Mail®, Priority Mail®, Express Mail®, and international mail service.
First-Class Mail Changes
1. Pricing Based on Shape
The single-piece First-Class Mail 1-ounce package (parcel) price will be $1.13.
2. Forever Stamp
The Forever Stamp™ will be sold at the First-Class Mail single-piece 1-ounce letter rate that is in effect on the day of purchase. The postage value of a Forever Stamp will always be the First-Class Mail single-piece 1-ounce letter rate that is in effect on the day of mailing.
- The Forever Stamp will go on sale at the retail counter on April 12 at a price of 41 cents each. It will be available in booklets of 20 for $8.20.
- It will also be available in sheetlets of 18 for $7.38 beginning on May 14, at Automated Postal Centers® (APCs®) and at select automated teller machines (ATMs).
- The Forever Stamp will also be available for purchase online at www.usps.com/shop, by mail, or by phone at 800-STAMP 24 (800-782-6724).
Priority Mail Changes
- Dimensional-weight pricing is being introduced for Priority Mail items larger than one cubic foot and destinating to Zones 5–8. Dimensional-weight pricing is based on the cubic capacity of a package (parcel) rather than on weight. It converts the cubic size of an item into a dimensional weight. Large, relatively light-weight packages addressed for delivery to Zones 5–8, could be charged as a heavier-weight item, based on a standard issued by the International Air Transport Association (IATA). This standard is used by other commercial carriers to determine prices for packages shipped by air.
- The Priority Mail balloon rate will change. Packages measuring more than 84 inches in combined length and girth and weighing less than 20 pounds will be charged the 20-pound rate as a balloon rate and only applies to local and Zones 1–4. This recognizes the costs of handling and transporting these large parcels, and limits the balloon rate to those items for which ground rather than air transportation is generally used.
Express Mail Changes
The only significant change to Express Mail service will be the addition of a new 1-pound rate. Adding the 1-pound rate provides better value for customers mailing lightweight documents. The new 1-pound rate (Post Office to Addressee) will be $19.50.
International Mail Changes
New international postage prices and product changes will be effective May 14 along with the domestic rates. The Postal Service™ has made international products more clear-cut and easy to use. Here are some key points related to international products:
Restrictions apply. See POS or GXG service guide for money back details.
Insurance is not available for the Priority Mail International flat-rate envelope.
1. Global Express Guaranteed (GXG)
2. Express Mail International (EMI) — Formerly Global Express Mail
3. Priority Mail International (PMI) — Formerly Global Priority Mail and Global Air Parcel Post
4. First-Class Mail International (FCMI) — Formerly Air Letter Post
Airmail M-bags
You are encouraged to take the time to review the tools available in the April 5, Special Postal Bulletin, which provides details on all of the changes effective on May 14.
First-Class Mail
New First-Class Mail® rates will be effective Monday, May 14, 2007. Here are some key points related to First-Class Mail items:
Two Major Changes
1. Pricing Based on Shape
The single-piece First-Class Mail 1-ounce package (parcel) rate will be $1.13.
2. Forever Stamp
- The Forever Stamp™ will go on sale in April at a price of 41 cents each and will be sold year round.
- The Forever Stamp is available in booklets of 20 for $8.20 and in sheetlets of 18 for $7.38.
- The Forever Stamp will be sold at the First-Class Mail single-piece 1-ounce letter rate that is in effect on the day of purchase. The postage value of a Forever Stamp will always be the First-Class Mail single-piece 1-ounce letter rate that is in effect on the day of mailing.
- The Forever Stamp will also be available for purchase online at www.usps.com/shop, by mail, or by phone at 800-STAMP 24 (782-6724).
Priority Mail
New Priority Mail and Express Mail rates will be effective May 14, 2007. Here are some key points related to Priority Mail® and Express Mail® items:
The Changes
Dimensional-Weight Pricing
- Dimensional-weight pricing is an important component of our Priority Mail rates because it allows our prices to better reflect transportation costs. For example, air transportation costs are based on the cubic size (capacity) of the package — not its weight — while our current prices are weight-based. Dimensional-weight pricing applies only to Priority Mail packages larger than 1 cubic foot capacity and traveling to destinations within Zones 5–8 (zones that use air transportation).
- Dimensional-Weight Pricing Criteria:
1. Applies to Priority Mail items only.
2. Measures more than 1 cubic foot (1,728 cubic inches).
3. Destined for Zones 5–8.
Balloon Rate
Express Mail
New Express Mail rates will be effective Monday May 14, 2007. Here are some key points related to Express Mail:
Package Services
New Package Services rates will be effective Monday, May 14, 2007. Here are some key points related to Package Services:
Extra Services and Other Fees
New Extra Services (formally known as Special Services) rates and other fees will be effective Monday, May 14, 2007. Here are key points related to Extra Services and other fees.
Extra Services are enhancements that, for a fee in addition to postage, provide greater security and accountability and include confirmation of mailing, delivery, and receipt; special handling; and payment and acceptance options for mail. Extra Services also provide delivery alternatives and secure options for sending important matter through the mail. Extra Services include Certified Mail™, Return Receipt, Delivery Confirmation™, Signature Confirmation™, Registered Mail™, and Insurance. Other services include fees for Post Office™ boxes, Caller Service, Address Change Service (ACS), and other services.
The Changes
Domestic Insurance
Post Office Boxes
Certified Mail and Return Receipt
Delivery Confirmation and Signature Confirmation
Money Orders
Registered Mail
Other Fees
- Pricing of all Business Reply Mail (BRM) returns will be based on shape. In addition, there are increases as well as decreases to certain BRM per-piece fees. The BRM annual permit fee, the annual accounting fee, and QBRM quarterly fees will increase. The new fees apply only to first-time payments and fee renewals. BRM customers with current annual and quarterly fees paid do not begin paying the new fees until their current payment period expires and it is time to renew.
- Business Reply Mail received at the retail counter should be handled as directed by postmaster/manager.
- The permit imprint application fee and all annual mailing fees will increase to $175. Annual accounting fees will increase to $550. The new fees apply only to first-time payments and fee renewals. Customers with current fees paid do not begin paying the new fees until their current payment period expires and it is time to renew.
- The Premium Forwarding Service enrollment fee remains $10, but the weekly shipment fee will increase to $11.95 per week. The new weekly fee applies only to customers initially enrolling (or extending) the service and paying on or after Monday, May 14.
International
New international postage rates and product changes will be effective Monday, May 14, 2007. Here are some key points related to international products:
Restrictions apply. See POS or GXG service guide for money-back details.
Insurance is not available for the Priority Mail International Flat-Rate Envelope.
The Changes
Airmail M-bags
New price and product changes will be effective Monday, May, 14, 2007. We have previously discussed some of the highlights of the new prices, but today we will discuss how the changes affect our employees and customers and how the product and service changes will specifically impact delivery unit operations. The Postal Reform Law did not affect these changes.
First-Class Mail
The price changes include prices that are based on the shape of mail and the relative costs involved. As shape becomes more important, weight becomes less important. Additionally, the prices are reduced for many letter-size pieces over 1 ounce.
Priority Mail
We will continue to offer the convenience of Priority Mail® service to our customers including the flat-rate envelope, which will be priced at the 1-pound rate of $4.60. The USPS®-produced flat-rate box will be priced at $9.15, regardless of weight or destination. Additionally, prices for all Priority Mail pieces weighing over 25 pounds will decrease for all zones.
There will be additional changes based on the dimensions of the Priority Mail piece being sent. Detailed explanations of those changes are available to our customers through various sources.
Express Mail
A new 1-pound rate of $19.50 will be available for Express Mail® users. The flat-rate envelope will continue to be available at the 1.2-pound rate of $16.25.
Extra Services
All domestic insured mailpieces will have a barcoded label and receive a delivery scan. There will still be two labels:
1. Insurance for $200 and under — the new label will be black and white and will only require a delivery scan.
2. Insurance over $200 — the label will remain the current blue color and will require a scan and a signature at delivery.
We will not require a signature at delivery for insured items with an indemnity of $200 or less.
International Mail
International Mail rates will also be adjusted. In addition, the international product portfolio will be simplified to offer more clear-cut choices for customers. International products have been reorganized from eight products into four using the familiar and trusted domestic product names. The four products will be:
Aerogrammes have been eliminated.
In addition, an Express Mail International flat-rate envelope will be available — $22 for Canada and Mexico, and $25 for all other countries. A Priority Mail International flat-rate envelope — $9 for Canada and Mexico, and $11 for all other countries, will also be available, as well as a Priority Mail International flat-rate box — $23 to Canada and Mexico, and $37 for all other countries.
Customers will be able to use domestic packaging for all of the above (except GXG) for their international shipments.
In addition, customers who pay for postage online via Click-N-Ship® service or through an authorized postage vendor, will receive the following discounts in postage: Global Express Guaranteed, 10 percent; Express Mail International, 8 percent; and Priority Mail International, 5 percent.
New price and product changes will be effective Monday, May 14, 2007. The new pricing system puts an emphasis on shape to more accurately reflect our true cost of doing business. We will now discuss product and service changes associated with the upcoming price implementation that will specifically affect processing and distribution operations.
General
- The single-piece First-Class Mail® 1-ounce letter rate is going up 2 cents to 41 cents. The First-Class Mail additional-ounce rate (except automation letters) decreases by 7 cents to 17 cents. The First-Class Mail additional-ounce rate for automation letters decreases by 11.2 cents to 12.5 cents. The First-Class Mail single-piece card rate is going up 2 cents to 26 cents.
- We will be introducing the new Forever Stamp™, which will cost the same as a regular First-Class Mail (1-ounce) stamp and be valid for the single-piece, 1–ounce letter rate even in the event of future price increases. The Forever Stamp will go on sale at retail counters April 12 at 41 cents each in booklets of 20 for $8.20. Beginning May 14, our Automated Postal Centers® (APCs®) and select automated teller machines (ATMs) will sell them in sheetlets of 18 for $7.38. At the same time, we will issue a nondenominated 41-cent American Flag stamp available in coils of 100, 3,000, and 10,000, in panes of 20 and 100, and as individual quantities. The American Flag stamp is not a Forever Stamp and will always have a value of 41 cents.
Letter Mail
- First-Class Mail and Standard Mail® presorted letters are currently categorized and labeled as automation (BC), machinable (MACH), and nonmachinable (MANUAL). The nonmachinable letters, which are pieces that cannot be processed by our letter sorting equipment, will now cost more. This should encourage letter mailers who do not claim automation discounts to at least prepare automation-compatible letters. In addition, the “manual only” option used by customers when requesting that their letters stay off of automated equipment has been eliminated.
- The preparation of machinable letters that are not pre-barcoded by the customer is now limited to optional origin/entry 3-digit, AADC, and mixed AADC (WKG) trays in order to better match the postal operations that apply barcodes.
- New preparation options will reduce the amount of 1–foot trays and trays containing small volumes (“skin” trays). Also, new preparation requirements for Standard Mail Enhanced Carrier Route (ECR) letters will significantly reduce the instances of carrier route bundles in letter trays, which will result in fuller trays and more-efficient automated processing.
Flats Mail
- First-Class Mail and Standard Mail automation flats must now meet automated flat sorting machine (AFSM) 100 standards with new flexibility and uniform thickness criteria. First-Class Mail rigid pieces can no longer be categorized as flats and will now be prepared as parcels and cost parcel prices. Standard Mail rigid pieces will now be prepared as parcels and cost parcel prices or as new Not Flat-Machinable (NFM) pieces and cost NFM prices (described further below). The new flexibility and uniform thickness standards for flat-shaped mail should enhance our ability to automate more flat volume.
- ECR saturation (full coverage) flats accompanied by detached address labels (DALs) will now be surcharged 1.5 cents for each DAL, resulting in a significant reduction in DALs.
Parcels
- Standard Mail irregular parcels (lightweight pieces labeled as “STD IRREG”) will be targeted for processing on small parcel and bundle sorter (SPBS) or automated package processing system (APPS) machines. Specifically, irregular parcels over 2 ounces that are not rolls or tubes must be segregated from purely nonmachinable items, and these pieces will now require the application of a barcode, or be surcharged 5 cents each.
- Compact disks (CD-ROMs), small merchandise samples, and other rigid pieces formerly bundled and prepared as flats will now be categorized as Not Flat-Machinable (NFM) pieces and prepared much like other Standard Mail parcels. These lighter weight items (labeled “NFM”) should be processed on SPBS and APPS machines to the greatest extent possible. NFMs also require the application of a barcode, or are surcharged 5 cents each. This new category with higher associated prices will provide incentives for customers to convert their rigid pieces to flexible AFSM 100–compatible flats.
- There will now be additional charges based on the dimensions of certain Priority Mail pieces. If the dimensional-weight rate, calculated using the dimensions of the piece, is more than the actual (scale) weight for items larger than 1 cubic foot when addressed to Zones 5–8, the dimensional-weight rate will be charged instead of the actual weight price. This should encourage customers to use more efficient packaging.
Periodicals
- Periodicals changes are delayed until July 15. Periodicals will have a price structure that provides significant incentives for customers to prepare fewer bundles, to prepare pallets and fewer containers, and to enter mail at destination facilities. These changes should lower our costs and reduce the number of sacks throughout our system.
International Mail
International Mail products will be simplified. Effective Monday, May 14, 2007, international products are being reorganized from eight products into four using the familiar and trusted domestic product names:
All domestic Express Mail and Priority Mail packaging and supplies including flat-rate envelopes and boxes will be permitted for international shipping.
International rates for the Express Mail International Flat-Rate Envelope will be $22 to Canada and Mexico, and $25 for all other countries.
International rates for the Priority Mail International Flat-Rate Envelope will be $9 to Canada and Mexico, and $11 for all other countries.
Priority Mail International Flat-Rate Boxes will be $23 to Canada and Mexico, and $37 for all other countries.
Customers will be able to use domestic packaging for all of the above (except GXG) for their international shipments.
In addition, customers who pay for postage online (via Click-N-Ship® service) or through a USPS®-authorized vendor, will receive the following discounts in postage:
Additional information can be found at www.usps.com/ratecase.
New price and product changes will be effective Monday, May 14, 2007. The new pricing system puts an emphasis on shape to more accurately reflect our cost of doing business. We will now discuss product and service changes associated with the upcoming price implementation that will specifically affect bulk mail center operations.
General
- The single-piece First-Class Mail® 1-ounce letter rate is going up 2 cents to 41 cents. The single-piece First-Class Mail additional-ounce rate (except automation letters) will decrease by 7 cents to 17 cents. The First-Class Mail additional-ounce rate for automation letters will decrease by 11.2 cents to 12.5 cents. The First-Class Mail single-piece card rate will increase 2 cents to 26 cents.
- We will be introducing the new Forever Stamp™, which will cost the same as a regular First-Class Mail (1-ounce) stamp and be valid for the single-piece, 1–ounce letter rate even in the event of future price increases. The Forever Stamp will go on sale at the retail counters on April 12 at a price of 41 cents each in booklets of 20 for $8.20. Beginning May 14, our Automated Postal Centers (APCs) and select automated teller machines (ATMs) will sell them in sheetlets of 18 for $7.38. At the same time, we will also issue a nondenominated 41-cent American Flag stamp available in coils of 100, 3000, and 10,000 in panes of 20 and 100, and in individual quantities. The American Flag stamp is not a Forever Stamp and will always have a value of 41 cents.
Package Services
- Customers mailing Parcel Select — Destination bulk mail center (DBMC) machinable parcels will now be required to apply a UCC/EAN Code 128 barcode, which will further increase the presence of barcodes on parcels and decrease the need to manually key ZIP Code information.
Standard Mail
- There will be a significant surcharge for nonbarcoded Standard Mail parcels, both irregular and machinable, which will provide even greater incentives for mailers to pre-barcode these small parcels.
- Standard Mail irregular parcels (lightweight pieces labeled as “STD IRREG”) will be targeted for processing on small parcel and bundle sorter (SPBS) or automated package processing system (APPS) machines. Specifically, irregular parcels over 2 ounces that are not rolls or tubes must now be segregated from purely nonmachinable items, and these pieces will now require the application of a barcode.
- Compact disks (CD-ROMs), small merchandise samples, and other rigid pieces formerly bundled and prepared as flats will now be categorized as Not Flat-Machinable (NFM) pieces and prepared much like other Standard Mail parcels. These lighter weight items (labeled “NFM”) should be processed on SPBS and APPS machines to the greatest extent possible, and the heavier weight items (labeled “NFM MACH”) should be processed on parcel sorting machines (PSMs).
Periodicals
- Periodicals changes are delayed until July 15. Periodicals will now have a price structure that provides significant incentives for customers to prepare fewer bundles, to prepare pallets and fewer containers, and to enter mail at destination facilities. These changes should lower our costs and reduce the number of sacks throughout our system.
International Mail
International Mail products will be simplified. Effective Monday, May 14, 2007, international products are being reorganized from eight products into four using the familiar and trusted domestic product names:
All domestic Express Mail® and Priority Mail® packaging and supplies including flat-rate envelopes and boxes will be permitted for international shipping.
International rates for the Express Mail International® Flat-Rate Envelope will be $22 to Canada and Mexico, and $25 for all other countries.
Rates for the Priority Mail International Flat-Rate Envelope will be $9 to Canada and Mexico, and $11 for all other countries.
Priority Mail International Flat-Rate Boxes will be $23 to Canada and Mexico, and $37 for all other countries.
Customers will be able to use domestic packaging for all of the above (except GXG) for their international shipments.
In addition, customers who pay for postage online (via Click-N-Ship® service) or through a USPS-authorized vendor, will receive the following discounts in postage:
Additional information can be found at www.usps.com/ratecase.
New pricing and product changes will be effective Monday, May 14, 2007. We have previously discussed some of the highlights, but today we will discuss how the changes affect our employees and customers and how the pricing and product changes will impact the acceptance function.
We will review changes and key points in the following areas:
First-Class Mail
New price and product changes will be effective Monday, May 14, 2007. Today we will discuss the changes to First-Class Mail:
The shape of the mailpiece will play a larger role in the pricing of First-Class Mail. Now, letters, flats (large envelopes), and parcels over 1 ounce have the same price at every weight increment. It costs 63 cents to mail a 2-ounce letter, a 2-ounce flat, or a 2-ounce parcel. The new prices recognize that each of these shapes have substantially different processing costs and should have separate prices.
- The single-piece 1 ounce First-Class Mail letter rate is going up 2 cents to 41 cents.
- The changes in pricing encourage efficiency. For example, if the contents of a flat are folded and placed into a letter-size envelope, the mailer can save as much as 39 cents on the first ounce. On the other hand, a mailer may determine that the aesthetics of a flat-size mailpiece better communicates the message. Likewise, if a parcel's contents can be reconfigured as a machinable flat, the mailer can save up to 33 cents on the first ounce.
- Letters that weigh more than 3.5 ounces, that are rigid, or that exceed one or more of the dimensions for a letter will not be eligible for letter rates.
- Flat-size mailpieces that are rigid or non-uniformly thick, or that exceed one or more of the dimensions for a flat, will be subject to the rates for parcels. The weight limit for First-Class Mail flats and parcels will remain at 13 ounces.
- Another feature of pricing based on shape includes a reduction in the additional-ounce rate, from 24 cents to 17 cents, and results in lower prices for all letters over 1 ounce and all flats over 6 ounces. Similar changes are included in the pricing for workshare mail. The additional-ounce rate for automation letters will decrease from 23.7 cents to 12.5 cents. The additional-ounce rate for automation-rate and presort-rate flats and all parcels will decrease from 23.7 cents to 17 cents. This also eliminates the need for the separate “heavy piece” discount for mailpieces weighing more than 2 ounces.
- The automation carrier route rate for letters will be discontinued. Carrier route presorting by the mailer no longer has the value it once had. Five-digit scheme and (individual) 5-digit preparation provides an attractive option to automation-rate letter mailers and is optimal in terms of efficiency. Otherwise, we will maintain the existing price structure and 150–piece minimums for 5-digit, 3-digit, and automated area distribution center (AADC)-rate automation letter rates.
- “Machinable” letters are not barcoded by the mailer, but can be processed and barcoded on automation equipment at the origin facility. Presorting by the mailer for First-Class Mail machinable letters will consist of origin, 3-digit, AADC, and mixed AADC. All machinable letters pay the presorted rate based on weight. This simplified mail preparation should also reduce workshare costs for mailers.
- Preparation for nonmachinable letters will not change. Letters that do not meet aspect ratio, or that have any other nonmachinable characteristics and weigh 1 ounce or less will pay a 17-cent nonmachinable surcharge. Flats weighing 1 ounce or less will no longer be subject to the nonmachinable surcharge.
- We will implement a new price structure for Presorted Parcels that will include workshare rates that are not available now. To facilitate more-efficient handling of Presorted Parcels, we will require a 5–digit UCC/EAN Code 128 or POSTNET barcode. A surcharge of 5 cents will apply to nonbarcoded parcels. The surcharge will also apply to all parcels weighing less than 2 ounces and to irregularly shaped parcels such as tubes or rolls, unless prepared in 5-digit scheme or 5-digit containers.
Priority Mail and Express Mail
New price and product changes will be effective Monday, May 14, 2007. Today we will discuss the changes to Priority Mail and Express Mail:
Priority Mail
Today, prices for large, lightweight items do not adequately reflect our transportation costs — and heavier items are overpriced. If a lightweight piece is large in size and takes up a lot of space in transportation, it is possible that the price of mailing does not cover our handling costs.
One of the major initiatives of the pricing changes includes the introduction of “dimensional-weight” pricing. Dimensional-weight pricing is based on the cubic size or dimension of the parcel rather than on the weight. Dimensional-weight pricing is a mechanism that converts the cubic size of the parcel into a “weight,” and applies to parcels traveling to Zones 5–8.
The (minimum) balloon-rate pricing remains for local and Zones 1–4, but will no longer apply to Zones 5–8. The minimum price for these parcels will increase to the 20–pound price, up from 15 pounds. The changes will also separate Zone 3 prices from Zone 1 and Zone 2 prices. This aligns the Priority Mail zones with the ones used for all other classes of mail and allows for lower price increases for parcels traveling shorter distances.
The new price for the Priority Mail Flat-Rate Boxes, regardless of weight, contents, or distance traveled, will be $9.15. The price for the Priority Mail Flat-Rate Envelope will continue to be the same as the (unzoned) 1-pound price, $4.60. Also, we will retain the “no fee” electronic Delivery Confirmation™ service.
Express Mail
The only significant change to Express Mail rates is the addition of the 1-pound rate:
Express Mail pieces are mostly lightweight documents that range from 1/2 pound to 2 pounds. To keep Express Mail a viable option for document mailers, we are adding a new 1-pound rate to fill the gap between 1/2 pound and 2 pounds.
Previously, any item over a 1/2 pound was charged the 2-pound rate. Adding the new 1-pound rate will make Express Mail a better value for mailers of lightweight documents. The price for the Express Mail Flat-Rate Envelope will continue to be the 1/2-pound price, $16.25.
Standard Mail and Nonprofit Standard Mail
Similar to the changes for First-Class Mail, effective Monday, May 14, 2007, pricing of Standard Mail will consider shape. The biggest change in Standard Mail will be for parcels. Today, the pricing for parcels is simple — you just add the residual shape surcharge of 24.2 cents to the prices for flats. But that surcharge doesn't allow us to give larger incentives for presorting and drop shipping parcels. So we've developed separate pricing for parcels, with more presort tiers, and a new DDU-entry option. And we have different preparation guidelines for irregular and machinable parcels — all to help process these pieces more efficiently, and, in turn, keep prices lower.
- The current price and mail preparation structure for automation letters will not change. Also, the automation basic carrier route rate for Enhanced Carrier Route (ECR) letters will be eliminated.
- However, a change will be that the destination delivery unit (DDU) rates for ECR letters will be discontinued. The DDU-entry rates for flats and parcels will be retained since that is the best entry location for those shapes.
- In general, Standard Mail pieces that are not compatible with automated processing or are parcel-shaped will be priced higher.
- Currently, automation flat rates are offered to some pieces that are not totally compatible with flats automation. These pieces are handled more like parcels, which is more costly. In order to match the prices more closely with costs, the definition of automation- and nonautomation-rate flats is being changed. In short, if a mailpiece is too thick, or too rigid to run on the AFSM 100, it will no longer qualify for flats rates and could be categorized as “Not Flat-Machinable.” This new category will have higher prices than flats, but lower than other parcels.
- The maximum size of ECR flats has been increased to 12" x 15". This will make the maximum size the same for all flats.
- To encourage greater efficiency, there will be separate prices for machinable letters and nonmachinable letters. Machinable letters are not barcoded by the mailer, but can be processed and barcoded on automation at the origin facility. Presorting for machinable letters will consist of optional origin/entry 3-digit, AADC, and mixed AADC. This simplified mail preparation should also reduce workshare costs for mailers.
- The nonmachinable surcharge for Standard Mail letters will be eliminated, and nonmachinable letters will have their own separate prices and preparation. Letters that do not meet aspect ratio, that have any other nonmachinable characteristics, or that may be too rigid will be assessed the prices for nonmachinable letters. Nonmachinable letters must be handled manually, and finer presorting is more valuable so the price structure is being expanded to four separate presort tiers.
- Postal processing and delivery operations have evolved over the past 20 years. ECR flats prepared and mailed with detached address labels (DALs) no longer provide the benefit that they once did. DALs allow a saturation mailer to provide the address and postage on a separate card, rather than on the piece itself, which is more compatible with mail processing operations. The option will still exist, but a surcharge of 1.5 cents each will apply if DALs are used.
Package Services
- A lower increase for drop shipped BPM and Parcel Select mail recognizes the savings generated by mailers who enter mail in bulk at downstream processing and delivery facilities. The (minimum) balloon-rate pricing remains for Parcel Post and Parcel Select to all zones. The new minimum cost for these parcels will be the 20-pound price rather than the 15-pound price.
Extra Services and Other Fees
Extra Services include Certified Mail, Return Receipt, Delivery Confirmation, Signature Confirmation, Registered Mail and insurance. Other services include items such as Post Office boxes and Address Change Service. Here are some of the changes that will be effective Monday, May 14, 2007:
- OneCode ACS — This program is an enhancement to the existing Address Change Service program. One method of reducing the volume and cost of undeliverable-as-addressed mail is to provide a correct address to the mailer as soon as possible. This change uses the new Intelligent Mail® barcode (formerly known as the 4-state barcode) and will allow us to electronically identify an incorrect address on a letter, and then electronically send the corrected address to the mailer at a much lower cost than today.
For First-Class Mail letters using the automated OneCode ACS™, the first two notices of an incorrect address will be provided at no charge; after that, the fee will be 5 cents each. For Standard Mail letters, the first two notices will be 2 cents each, and subsequent notices will be 15 cents each.
- Redesigned Confirm — Confirm service enables mailers to obtain information about the status of their letters and flats in the mail processing system. The current Platinum, Gold, and Silver subscription tiers will remain in place. A Platinum subscription will increase from $10,000 to $19,500; a Gold subscription will increase from $4,500 to $6,000; and a Silver subscription will remain $2,000. The annual fee for additional Subscriber IDs will remain $2,000, however, the quarterly fee will increase from $500 to $750. Confirm service currently offers the Intelligent Mail barcode for use on letter mail and will begin offering it for flats in the near future. This featured option is called OneCode Confirm™.
- Business Reply Mail — Pricing of all Business Reply Mail™ (BRM) returns will be based on shape. In addition, there are increases as well as decreases to certain BRM per-piece fees. The BRM annual permit fee, annual accounting fee, and QBRM quarterly fees will increase. The new fees apply only to first-time payments and fee renewals. BRM customers with current annual and quarterly fees paid do not begin paying the new fees until their current payment period expires and it is time to renew.
- Certified Mail — Certified Mail™ service will increase from $2.40 to $2.65.
- Return Receipt — Return Receipt (hard copy) service at the time of mailing will increase to $2.15. Electronic option will decrease to 85 cents. The new fee for Return Receipt service requested after mailing will be $3.80.
- Delivery Confirmation — The Delivery Confirmation service fee is built into the price for certain Priority Mail and Parcel Select parcels, and can be purchased separately for other parcels. For First-Class Mail and Parcel Post parcels, the retail option fee will increase to 75 cents, and the electronic option fee will increase to 18 cents. For Priority Mail service, the retail option fee will increase to 65 cents, and the electronic option fee — as well as Delivery Confirmation obtained through Click-N-Ship® service — remains available at no charge. For Standard Mail parcels, the electronic option fee will increase to 18 cents.
- Insurance — All domestic insured items will have a barcode. Insurance $200 and under will use PS Form 3813 and will receive a scan at delivery. Insurance over $200 will use PS Form 3813-P and will receive a signature and a scan at delivery. For insurance purchased with Delivery Confirmation™ or Signature Confirmation service, customers will be able to view delivery information using the Delivery Confirmation or Signature Confirmation barcode information online at www.usps.com. Prices for insurance coverage will change as follows:
- Post Office Boxes — Post Office™ box fees are realigned to better reflect the costs the Postal Service incurs for each individual location. As a result, prices at some locations will increase, while prices at other locations will decrease. Caller Service fees will also be realigned into the same fee groups as Post Office boxes. Instead of one set price, prices will range from $370 to $630, depending on the assigned fee group.
- Current Post Office box holders (and customers paying Caller Service fees) do not begin paying the new fees until their current rental period expires and it is time to renew. Post Office box and Caller Service fees may be paid for up to two semi-annual periods at a time (i.e., up to 1 year in advance).
- Registered Mail — Registered Mail™ service without insurance will increase to $9.50.
- Mailing and Permit Fees — The permit imprint application fee and all annual mailing fees will increase to $175. Account maintenance fees (annual accounting fees) will increase to $550. These new fees apply only to first-time payments and fee renewals. Customers with current fees paid do not begin paying the new fees until their current payment period expires and it is time to renew.
International Mail
International Mail products will be simplified. Effective Monday, May 14, 2007, international products are being reorganized from eight products into four using the familiar and trusted domestic product names:
All domestic Express Mail and Priority Mail packaging and supplies including flat-rate envelopes and boxes will be permitted for international shipping.
International rates for the Express Mail International Flat-Rate Envelope will be $22 to Canada and Mexico and $25 for all other countries.
International rates for the Priority Mail International Flat-Rate Envelope will be $9 to Canada and Mexico and $11 for all other countries.
Priority Mail International Flat-Rate Boxes will be $23 to Canada and Mexico and $37 for all other countries.
Customers will be able to use domestic packaging for all of the above (except GXG) for their international shipments.
In addition, customers who pay for postage online (via Click-N-Ship service) or through a USPS-authorized vendor, will receive the following discounts in postage:
Additional information can be found at www.usps.com/ratecase.
New price and product changes will be effective Monday, May 14, 2007. The new pricing system puts an emphasis on shape to more accurately reflect our true cost of doing business. Also effective on May 14 are new redesigned international products and new prices.
Here are some key points related to the upcoming changes to International products:
- USPS® domestic product names — First-Class Mail®, Priority Mail®, and Express Mail® services have been extended to International shipping.
- All domestic Express Mail and Priority Mail packaging supplies, including flat-rate envelopes and flat-rate boxes, may be used for international shipments.
Restrictions apply. See POS or GXG service guide for money back details.
Insurance is not available for the Priority Mail International Flat-Rate Envelope.
The Changes
Global Express Guaranteed (GXG)
Express Mail International (EMI) — formerly Global Express Mail
Priority Mail International (formerly Global Priority Mail) — GPM and Air Parcel Post have been combined into one service
Flat-Rate Envelope
Flat-Rate Boxes and Variable-Weight Packaging
Domestic Priority Mail variable-weight packaging can be used for international shipping and requires a Customs declaration.
First-Class Mail International
