Application for Periodicals Mailing Privileges Under the New Launch Procedure

These instructions are intended for publishers, Pricing and Classification Service Center (PCSC) personnel, post­masters, and Business Mail Entry managers who file, accept, or process applications for Periodicals mailing privileges under the New Launch procedure. The New Launch procedure is available for “general” or “requester” publications only.

To submit PS Form 3500, Application for Periodicals Mailing Privileges, under the New Launch procedure, the publisher must include a letter of request with a business plan outlining the actions, including forecasted dates of completion, to be taken to develop the publication’s subscriber or requester circulation. Examples of actions to develop legitimate circulation include, but are not limited to, marketing efforts such as direct mail, telemarketing, and the Internet; sample copies in and outside the mail; and other forms of promotion and advertising.

The business plan must include a statement that the publisher will declare circulation data, on PS Form 3500, within 15 months of the date of application. The business plan must be signed by the publisher and dated the same day as the application date, and must include the following statement:

“I understand that a denial by the Pricing and Classifica­tion Service Center (PCSC) of an application submitted under the New Launch procedure may be appealed to the manager of Mailing Standards, who will issue the final agency decision on the application. I agree that the decision by the manager of Mailing Standards, or the manager’s designee, is not subject to an appeal to the Office of Administrative Law Judges or the Judicial Officer under 39 CFR 954, or otherwise subject to fur­ther review, and that neither I nor anyone else on behalf of the publisher will seek such review.”

After the application is filed with the postmaster or Business Mail Entry manager and forwarded to the PCSC, the publisher must determine and select an issue upon which the application is to be based. The publisher has 15 months from the date of application to submit to the PCSC circulation information for the application issue. To do so, the publisher must submit to the PCSC an updated PS Form 3500 with Part B completed for a “general” publica­tion, or Part C completed for a “requester” publication, and all supporting information required by PS Form 3500. The PCSC will notify the publisher in writing if any additional information is needed to complete or clarify the application.

The postmaster at the Post Office™ serving the known office of publication must review PS Form 3500 for completeness and to ensure that the publication meets the basic standards for Periodicals rates in Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM^®) 707.4.0, and that the publisher submitted a written business plan as described above. The postmaster immediately sends the application, a marked copy of the publication, and the publisher’s letter and business plan to the PCSC manager. The PCSC determines if the publica­tion meets the basic requirements for Periodicals privileges and takes appropriate action to notify the publisher of any noncompliance with the basic requirements. Once the publisher provides the PCSC with an updated PS Form 3500, with Part B completed for a “general” publication, or Part C completed for a “requester” publication, the post­master, with guidance from the PCSC, will schedule a review and verification of the publisher’s circulation records, unless the publisher provides notice at the time that the application is filed that an authorized independent audit bureau will perform the audit in lieu of the Post Office. Once the verification is complete, the postmaster must pre­pare a detailed written report of all findings and supporting information. The written report, completed application, and supporting information are then forwarded to the PCSC for review.

When the original PS Form 3500 and the publisher’s written business plan are received from the postmaster, a PCSC specialist will review the application for complete­ness along with the marked copy and the publisher’s busi­ness plan. The PCSC acknowledges receipt of the pending application in a letter to the publisher, with a copy to the postmaster of the office of original entry, advising the pub­lisher of the name of the specialist who is available to pro­vide guidance to the postmaster and the publisher concerning the application. The PCSC specialist will con­tact the publisher periodically to review the business plan and ensure progress toward meeting the circulation requirements.

Once the publisher provides the PCSC with an updated PS Form 3500, with Part B or Part C completed, the PCSC asks the postmaster to schedule and perform a review and verification of the circulation figures for the issue upon which the application is based (unless the publisher has, at the time of application, selected an authorized independent audit bureau to perform the review and verification of the circulation records for the issue upon which the application is based). At any time during the application process, the PCSC may request additional information from the pub­lisher to complete or clarify the application.

Once the PCSC has received the postmaster’s written report of the results of the verification of circulation records, or received the circulation audit report prepared by an authorized independent audit bureau, the PCSC evaluates all aspects of the application, including the results of the review and verification of the circulation records, and issues a decision, in writing, to approve or deny the application.

The publisher may, if desired, select an authorized inde­pendent audit bureau to perform the initial circulation audit for the issue upon which the application is based under the New Launch procedure. The publisher must indicate at the time the application is filed that an independent audit bureau has been chosen in lieu of the Post Office to per­form the circulation audit. Once the audit is performed, the audit bureau must submit the results directly to the PCSC to enable the PCSC to approve or deny the application.

— Mailing Standards,
Pricing and Classification, 8-30-07