Field Information Kit: New Periodicals Prices Effective Sunday, July 15, 2007

The new mailing standards and prices for all Periodicals mail will be implemented Sunday, July 15, 2007. A complete summary of the Periodicals changes, as well as corresponding Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM^®) changes, were published in the article titled “DMM Revision: New Standards for Periodicals Mailing Services” in Postal Bulletin 22208 (6-7-07, pages 13–29). New Periodicals rates and fees appear starting on page 32 of this issue of the Postal Bulletin, as well as on page 10 of Notice 123, Ratefold, which is available at www.usps.com/ratecase. A list of Periodicals “frequently asked questions” is included with this Field Information Kit and is also available at www.usps.com/ratecase.

The new prices encourage efficient mail preparation, offer more choices for the mailer, and help ensure that all types of Periodicals mail cover their costs. Periodicals mailers have new incentives to use efficient bundles and containers, and copalletization becomes a permanent offering to encourage more publishers to combine mailings. We have also added new prices for the nonadvertising portion of a mailing to give mailers of high-editorial-content publications access to lower destination entry rates.

On May 14, 2007, the Postal Service™ implemented new prices and mailing standards to support the majority of the pricing changes recommended by the Postal Regulatory Commission (PRC) in Docket No. R2006-1 and accepted by the Governors of the United States Postal Service^®. The Postal Service Board of Governors delayed the implementation of new Periodicals prices and mailing standards until July 15, 2007, to give Postal Service employees and mailers more time to prepare for the complex pricing structure recommended by the Commission.

The PRC recommended rates based on pieces and pounds as well as on bundles and containers for Outside-County pieces. Piece rates vary based on mailpiece characteristics such as machinability, barcoding, and presort level. Bundle rates are based on bundle and container level, and container rates are based on container level and point of entry. The new rate structure explicitly recognizes the cost differences between various bundles, containers, and entry points. Ideally, mailers will respond to these price signals, bring down costs, and improve the efficiency of all Periodicals mail. The rate structure for In-County Periodicals does not change. In-County Periodicals prices continue to be based on pieces, pounds, and destination delivery unit entry.

Most of the basic mail preparation standards did not change as a result of the new rate structure. Mailers will still follow the mail preparation requirements in DMM 705, 707, and 708, as appropriate, which specify when to prepare mail in (presort destination) bundles and when to place it in/on trays (letters and flats trays), sacks, and pallets. Mailers must continue to follow the preparation and entry requirements in the DMM. Mailers cannot choose to use certain containers (or not to use containers) to circumvent paying the new rates.

International Publishers’ Periodicals rates were eliminated on May 14, 2007. Mailing options for International Publishers’ Periodicals now include the following: International Priority Airmail™ (IPA^®), M-bags, and International Surface Air Lift^® (ISAL^®) using a valid permit imprint account and PS Form 3700, Postage Statement — International Mail. Remember: such mailings must contain a minimum of 200 pieces or 50 pounds. “Single-piece” mailing options include First-Class Mail International™ service and Priority Mail International™ service. When Periodicals mailers affix postage using a postage meter (or PC Postage™) for publications mailed at First-Class Mail International or Priority Mail International rates, they do not need to submit PS Form 3700.

New PS Form 3541 and PS Form 3541-M

PS Form 3541, Postage Statement — Periodicals: One Issue or One Edition, and PS Form 3541-M, Postage Statement — Periodicals: All Issues in a Calendar Month, have been revised to implement the new Outside-County Periodicals prices based on pieces, pounds, bundles, and containers, as well as the new nonadvertising pound destination entry options. All postage statements are available at www.usps.com/ratecase in Adobe PDF (print-only) format.

Beginning July 15, 2007, all Periodicals mailers must use the July 2007 editions of PS Form 3541 and PS Form 3541-M, as appropriate. (For PS Form 3541, an approved facsimile is acceptable.) All previous versions are obsolete as of July 15, 2007, and must not be used, not even for mailings of “back issues.” Also, all mailings of Outside-County back issues at Periodicals rates, regardless of the number of copies mailed, are subject to all pound, piece, bundle, and container rate charges. Wherever possible, postmasters and managers of Business Mail Entry should encourage their customers and staff to use the Web site (www.usps.com/ratecase) to obtain postage statements. Managers of Business Mail Entry, working with district and area implementation coordinators, must ensure that all Post Offices™ and detached mail units within their district’s service areas have access to all new postage statements to satisfy the needs of local publishers, as well as printers and letter-shops that prepare and enter Periodicals mailings (including any pending Periodicals publications). District offices must supply postage statements to Post Offices without Internet access. Ordering procedures for printed copies of the July 2007 editions of PS Form 3541 and PS Form 3541-M will appear in a future issue of the Postal Bulletin. Mailers with questions regarding the use and availability of postage statements should contact the Post Office where they enter their mailings. Employees with questions should contact their district manager of Business Mail Entry. A copy of PS Form 3541 appears starting on page 36 of this issue of the Postal Bulletin. Also, see the article titled “Completing the Periodicals Postage Statement,” which appears starting on page 44 of this issue of the Postal Bulletin.

Keep in mind that Periodicals published on a less-than-monthly basis (including “monthlies” that may not publish during the summer months) may be several months away from their first mailing under the new rate structure after July 15, 2007.

Periodicals publications authorized to use monthly postage statement reporting under DMM 707.17.5 will have to terminate their July 2007 statement on July 14, 2007, to include all mailings deposited July 1 through July 14, 2007. A second monthly statement (using the July 2007 edition) must begin July 15, 2007, and include all remaining mailings through July 31, 2007. Managers of Business Mail Entry and postmasters should use this opportunity to determine if continuing monthly statement reporting is warranted and if the publisher can meet the additional documentation requirements for Outside-County Periodicals mailings under the monthly statement format. Publishers today, through various means such as presort software, may be better able to provide individual statements for each issue or edition.

Periodicals mailers who enter their mailings at Post Offices supported by PostalOne! should be encouraged to utilize the PostalOne! system’s ability to submit domestic postage statements using a secure Internet connection. All that is needed is an Internet connection and a logon ID. The system offers different features for mail owners and mailing agents. For additional information, customers can go to www.usps.com/postalone; under “New Customers: Apply for a PostalOne! account,” click on the Learn More button.

Preparing Customers (Business Mail Entry)

Managers of Business Mail Entry, working with the postmasters, are responsible for informing Periodicals customers within their districts of the upcoming changes to Periodicals mail.

Meet with Periodicals customers in the district.
Use the information provided in this Field Information Kit. Use the customer letter and fact sheet starting on page 34 of this issue of the Postal Bulletin to notify Periodicals customers.

Preparing Employees (Business Mail Entry)

Managers of Business Mail Entry at each district are responsible for training their employees on the changes to Periodicals mail.

View Business Mail Acceptance Webcast Training. Business Mail Acceptance is currently conducting Ratecase Periodicals Webcast training sessions. Go to http://blue.usps.gov/bma for the webcast schedule. Ensure that all business mail entry employees who handle Periodicals mail view one of the scheduled webcasts. Note: A webcast will be recorded and available for a limited time (60 days) for future viewing.
Ensure access is available to the new Periodicals postage statements. Managers of Business Mail Entry, working with district and area implementation coordinators, must ensure that all Post Offices and detached mail units within their districts have access to all new postage statements to satisfy the needs of local publishers, as well as printers and letter-shops that prepare and enter Periodicals mailings (including any pending Periodicals publications). District offices must supply postage statements to Post Offices without Internet access. Ordering procedures for printed copies of the July 2007 editions of PS Form 3541 and PS Form 3541-M will appear in a future issue of the Postal Bulletin.
Review this Field Information Kit in its entirety and access the information available online at www.usps.com/ratecase and http://blue.usps.gov/bma to become familiar with the changes to Periodicals mail.

Preparing Employees (Operations/Delivery)

Please deliver the stand-up talk included with this Field Information Kit to all operations and delivery unit employees as soon as possible.

FAQs About Periodicals

1. Why are the price increases larger for some Periodicals Mail?

Periodicals prices reflect the increased costs of handling this mail. The new pricing is intended to encourage efficient mailing behavior such as preparing mail in containers that are easy to process (pallets) and drop shipping the mail closer to destination. Mail that is prepared in sacks and/or is not entered deeply into the system incurs additional processing costs which, in turn, result in higher prices. The prices continue to encourage co-palletization, with less complexity than the previous co-palletization experiments.

2. Did the rates for Periodicals nonprofit mail change as well?

Yes. Nonprofit and Classroom price structures continue to mirror Outside-County rates and receive a 5–percent discount off the Outside-County postage, excluding the advertising pound postage.

3. Until May 14, I used the Publisher’s Periodicals rates to mail my publications to foreign countries. What practical options are now available?

Mailing options for Publishers’ Periodicals include International Priority Airmail (IPA), M-bag, and International Surface Air Lift (ISAL). “Single-piece” mailing options would be First-Class Mail International and Priority Mail International.

4. If I choose to use Priority Mail International to mail my foreign copies, and pay postage online using Click–N-Ship^®, do I qualify for the 5-percent postage discount?

Yes — and not only with Click-N-Ship but also through an authorized postage vendor. For more information, see the March/April 2007 issue of MailPro.

5. Can Periodicals publications be mailed to foreign countries using the Priority Mail International flat rate envelope and flat rate box options?

Yes. Keep in mind the flat-rate envelope has a 4–pound weight limit and the flat-rate box has a 20–pound weight limit. If postage is paid using Click–N-Ship, or authorized postage vendor, the 5–percent postage discount also applies.

6. If I use my postage meter (or PC postage) to affix postage for publications mailed at First-Class Mail International or Priority Mail International, do I still have to complete PS Form 3700, Postage Statement — International Mail?

No.

7. Is the Ride-Along rate still available?

Yes, the Periodicals Ride-Along rate will be $0.155.

8. Do the fees associated with Periodicals mail change?

Yes, Periodicals fees will be: original entry $500; reentry $55; additional entry $75; news agent registry $45.

9. How much mail is needed to prepare a pallet?

The minimum weight for flats and irregular parcels prepared in bundles and placed directly on a pallet is 250 pounds. However, there is no minimum weight for pallets entered at a destination delivery unit. Also, SCF pallets entered at an individual destination SCF or ADC pallets entered at an individual destination ADC may contain a minimum of 100 pounds of mail. Any pallets entered at a destination BMC must contain a minimum of 250 pounds.

FAQs About Bundle and Container Rate

1. Where can I find a listing of the bundle and container rates?

Periodicals bundle and container rates are included with the new Periodicals rates and fees starting on page 32 of this issue of the Postal Bulletin.

2. What if sacks are placed on pallets or in some other container?

The container rates would apply to each sack not the pallet or secondary containers.

3. How do bundle and container rates apply if I enter my mail at the DDU under the “exception to sacking” rule for carrier route bundles?

For mailings prepared and entered under the exception to sacking rule, mailers pay only the 5-digit carrier route bundle rate for each carrier route bundle prepared.

4. What if more than one publication is co-mailed?

There are three options to pay the bundle and container charges:

a. The appropriate bundle and container rates can be claimed on the postage statement of one of the publications.

b. A separate PS Form 3541 can be submitted to pay the bundle and container rates for the entire mailing using the printer’s permit imprint account.

c. A third option allows consolidators to prorate the bundle and container rates on each postage statement in the pool if they electronically submit their qualification report using Mail.dat.

5. I see there are bundle and container rates for Outside-County Periodicals mail, but not for other classes of mail. Why?

We need to encourage more efficient mail preparation for Periodicals mail because this class of mail has the most to gain from better mail preparation. The new rate structure closely aligns the cost of handling pieces, bundles, and containers with their associated rates.

6. Will In-County Periodicals mail have bundle and container rates?

No. The In-County prices do not include bundle and container rates. Also, any carrier route or 5-digit bundles and containers consisting of In-County and Outside County copies are not subject to the bundle or container rates.

Stand-Up Talk for All Operations and Delivery Unit Employees

[Please read this stand-up talk to all operations and delivery unit employees and then post copies on employee bulletin boards.]

New price changes for all Periodicals mail will be effective Sunday, July 15, 2007. We have previously discussed some of the highlights of the new prices for other classes of mail that took effect May 14. Today we will discuss how the changes may affect our employees and customers and how these changes may specifically impact delivery unit operations.

The Outside-County Periodicals changes include bundle and container charges, and mailers will pay for each bundle and container prepared. Given this, we should see more efficient mail preparation from mailers as they adjust to the new rates and fees. Basically, there is no change to existing mail preparation, other than more mailings may now be entered at DBMC/ASFs for “dock transfer.” Such mailings must be prepared on ADC, SCF, 3-digit, and 5-digit pallets. Periodicals mailings will not be prepared and labeled to BMC destinations just transferred through the BMC/ASFs. Therefore, BMC and ASF destination facilities will likely see an increase in Periodicals mailings entered at their facilities on pallets. The rate structure for In-County Periodicals does not change. In-County Periodicals prices continue to be based on pieces, pounds, and destination delivery unit entry.