Effective September 27, 2007, the Postal Service™ is updating standards to allow easier use of special postage payment systems. This includes optional procedure mailing systems, alternate mailing systems (AMS), manifest mailing systems (MMS), First-Class Mail® or Standard Mail® mailings with different payment methods systems (also known as combined mailing systems), and value added refund systems (VAR). Each of these systems requires a signed agreement between the Postal Service and the approved customer. Currently, the agreements are renewed in 2-year intervals. After this revision, agreements will no longer have a predetermined expiration date. Continuation will be based on the customer’s ability to effectively maintain the terms of the agreement. The change will eliminate repetitive authorization paperwork and allow continuous use of the system.
We are also streamlining the appeal process within the systems. When a customer chooses to appeal a decision regarding performance within their system, the customer can appeal to the Marketing and Technology Channel Management manager. This change will provide a more direct appeal process.
Currently, customers authorized to use an AMS are required to pay a 1.5 percent penalty surcharge above the calculated postage adjustment whenever postage verification exceeds the established tolerance level. We are removing this standard so that only the postage adjustment will be collected. However, frequent postage adjustments, due to poor performing systems, may become a factor in determining whether or not to continue the customer’s authorization.
We will incorporate these changes in our October update of the Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM®) 604.9.4, 705.2.0, 705.3.0, 705.4.0, and 705.5.0 as noted below. Customers currently authorized to use a special postage payment system will be provided new nonexpiring agreements incorporating these changes as their current agreements expire.
Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM)
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600 Basic Standards for All Mailing Services
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604 Postage Payment Methods
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9.0 Refunds and Exchanges
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9.4 Value Added Refunds
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9.4.5 Authorization
[Revise 9.4.5 to remove the expiration requirement as follows:]
If the application is approved, an authorization to make refund requests remains in effect until such time as the Business Mailer Support manager or the mailer cancels the agreement. If Postal Service periodic reviews or mailer-supplied information demonstrates a need for a modification, the authorization will be modified, with concurrence by the Business Mailer Support manager and the mailer.
9.4.6 Appeal
[Revise 9.4.6 to designate appeal responsibility as follows:]
If the application is denied, the presenter may file a written appeal within 15 days through Business Mailer Support, USPS Headquarters, to the Marketing and Technology Channel Management manager, who issues the final agency decision.
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9.4.9 Appeal of Cancellation or Suspension
[Revise the second sentence of 9.4.9 as follows:]
***If the manager upholds the action, the appeal is forwarded to the Marketing and Technology Channel Management manager, USPS Headquarters, who issues the final agency decision.***
9.4.10 Form 8096 Required
[Revise the first sentence of 9.4.10 and add a new second sentence as follows:]
An original PS Form 8096 must be completed and signed by each of the presenter’s customers whose metered pieces are included in the mailing that is eligible for a VAR. A list of those customers must be on file with the postmaster where the mailings are deposited for acceptance and payment.***
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700 Special Standards
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705 Advanced Preparation and Special Postage Payment Systems
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2.0 Manifest Mailing System
2.1 Description
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2.1.2 Electronic Verification System
[Revise the first sentence of 2.1.2 as follows:]
Mailers using an MMS when presenting Parcel Select mailings under 456.2.0 or commingled parcel mailings under 6.0 or 7.0 may document and pay postage using the Electronic Verification System (eVS) (see 2.9).***
2.2 Basic Standards
[Revise the title and text of 2.2.1 as follows:]
2.2.1 Authorization Document
An MMS is established through a letter of authorization or by a service agreement as follows:
a. An MMS approved by the district, as defined in 2.4.5a, is authorized with a letter signed by the district Customer Service manager and addressed to the mailer making the MMS application. The authorization letter contains provisions regarding mailer and USPS responsibilities, including document retention and quality control.
b. An MMS approved by Business Mailer Support, as defined in 2.4.5b, is authorized with a service agreement signed by the mailer and the Business Mailer Support manager. The service agreement contains provisions regarding mailer and USPS responsibilities, including document retention and quality control.
2.2.2 Mailer System
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[Revise item 2.2.2d as follows:]
d. A summary listing the required information on the postage statement must be included as the last page of the manifest.
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2.2.4 Mailer Quality Control
[Revise the text in the second sentence of 2.2.4 as follows:]
The mailer must implement a quality control program that ensures proper mail preparation and provides accurate documentation. The authorization letter or service agreement must detail the USPS-approved quality control procedures.
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2.3 Keyline
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2.3.3 Rate Category Abbreviations
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Exhibit 2.3.3a Rate Category Abbreviations—First–Class Mail
[Revise the text in Exhibit 2.3.3a as follows:]
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Exhibit 2.3.3b Rate Category Abbreviations—Standard Mail
[Revise the text in Exhibit 2.3.3b to add additional codes as follows:]
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2.3.5 Unique ID Number Location—Itemized Mailings
[Revise the last sentence in 2.3.5 as follows:]
***The numbers must be printed in overall ascending order, or in ascending order within each zone, 5-digit, 3-digit, or BMC ZIP Code area on the manifest.
2.4 Authorization
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2.4.2 Approval Review
[Revise the text in 2.4.2 as follows:]
After the mailer completes the development and installation of the MMS, the following will occur:
a. For an MMS approved by the district, as defined in 2.4.5a, a district USPS representative will review the system and the district Customer Service manager will give final approval if the system is functioning as required.
b. For an MMS approved by Business Mailer Support, as defined in 2.4.5b, a district USPS representative will review the system and the district Customer Service manager will give temporary approval if the system is functioning as required. A final review will be conducted by a Business Mailer Support representative within 90 days of the date of the temporary approval, and the Business Mailer Support manager will give final approval if the system is functioning as required.
2.4.3 General Requirements for Authorization
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[Delete item d. Renumber current items e and f as new d and e.]
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[Renumber current 2.4.4 through 2.4.6 as new 2.4.5 through 2.4.7. Add new 2.4.4 as follows:]
2.4.4 Authorization Period
The authorization period for an MMS is as follows:
a. An MMS not approved to use the Minimum Volume Reduction Provision (MVRP) defined in Publication 401 and approved by the district as defined in 2.4.5a remains in effect until such time as the district Customer Service manager or the mailer cancels the agreement. If Postal Service periodic reviews or mailer supplied information demonstrates a need for modification to the agreement, the authorization will be modified with concurrence by the district Customer Service manager and the mailer.
b. An MMS approved to use an MVRP as defined in Publication 401 remains in effect for the time period specified in the MVRP, unless the district Customer Service manager or the mailer cancels the MMS authorization. The MVRP authorization will be reviewed at the end of the authorization period and may be renewed by decision of the district Customer Service manager.
c. An MMS approved by Business Mailer Support as defined in 2.4.5b remains in effect until such time as the Business Mailer Support manager or the mailer cancels the agreement. If Postal Service periodic reviews or mailer-supplied information demonstrates a need for modification of the agreement, the authorization will be modified with concurrence by the Business Mailer Support manager and the mailer.
2.4.5 Approval Authority
[Revise the text in renumbered 2.4.5 as follows:]
Approval authority for manifest mailing systems is as follows:
a. The district Customer Service manager approves systems that produce separate or mixed mailings of single-piece rate First-Class Mail, Package Services, international mail, including mailings with extra services and predetermined weights, or presorted First-Class Mail letter systems not exceeding 25,000 pieces per manifest or 50,000 total pieces in daily manifested mail volume.
b. The Business Mailer Support manager, USPS Headquarters, approves MMS that produce presorted First-Class Mail (except as noted in 2.4.5a) or Standard Mail mailings, Package Services presort mailings, PVDS mailings, or eVS mailings.
2.4.6 Denial
[Revise the text in renumbered 2.4.6 as follows:]
If an MMS application is denied, the mailer may appeal the decision as follows:
a. For MMS applications denied by the district Customer Service manager, the mailer may, within 15 days from the receipt of the notice, file a written appeal, including any additional evidence in support of why the MMS should be authorized. This appeal is sent to the Business Mailer Support manager, USPS Headquarters, who issues the final agency decision.
b. For MMS applications denied by the Business Mailer Support manager, the mailer may, within 15 days from the receipt of the notice, file a written appeal, including any additional evidence in support of why the MMS should be authorized. This appeal is sent to the Marketing and Technology Channel Management manager, USPS Headquarters, who issues the final agency decision.
2.4.7 Renewal
[Revise the text in renumbered 2.4.7 as follows:]
Only MMS with an approved Minimum Volume Reduction Provision (MVRP) requires renewal. MMS with MVRP are renewed prior to the expiration date by the Sales manager that originally authorized the MVRP. The Sales manager reviews all supporting documentation to determine if the mailer continues to meet the requirements of the MVRP. The MVRP is renewed when the review demonstrates that the MVRP continues to meet established requirements.
2.5 Revocation
2.5.1 Revocation Authority
The revocation authority for MMS is as follows:
[Revise items a and b in 2.5.1 as follows:]
a. The district Customer Service manager may revoke an MMS authorization when the final approval had originally been given through that office.
b. The Business Mailer Support manager may revoke any MMS authorization.
2.5.2 Reasons for Revocation
[Revise the introductory text of 2.5.2 as follows:]
The reasons for revocation of an MMS are as follows:
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[Revise items c and d for 2.5.2 as follows:]
c. The mailings no longer meet MMS criteria established by standards in 2.0 or in the MMS authorization letter or service agreement.
d. The mailer does not present mailings under MMS for more than 6 months (except as noted in the authorization letter or service agreement).
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2.5.4 Appeal of Revocation
[Revise 2.5.4 as follows:]
The mailer may appeal following receipt of the notice of revocation and may continue to mail under the MMS during the appeal process. Appeals are handled as follows:
a. For MMS authorizations given final approval by the district Customer Service manager, the mailer has 15 days from the date of receipt of the notice to file a written appeal with the Business Mailer Support manager. The appeal must include the reason why the MMS authorization should not be revoked. The Business Mailer Support manager issues the final agency decision. The final revocation takes effect 15 days after receipt by the mailer.
b. For MMS authorizations given final approval by the Business Mailer Support manager, the mailer has 15 days from the date of receipt of the notice to file a written appeal with the Marketing and Technology Channel Management manager, USPS Headquarters. The appeal must include the reason why the MMS authorization should not be revoked. The Marketing and Technology Channel Management manager, USPS Headquarters, issues the final agency decision. The final revocation takes effect 15 days after receipt by the mailer.
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3.0 Optional Procedure Mailing System
3.1 Basic Information
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3.1.2 General Qualification
[Revise the introductory sentence as follows:]
An Optional Procedure Mailing System is authorized when all of the following conditions are met:
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3.2 Authorization
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3.2.2 Business Mailer Support Action
[Revise 3.2.2 as follows:]
The Business Mailer Support manager, USPS Headquarters, approves or denies applications for Optional Procedure Mailing Systems.
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[Renumber current 3.2.4 through 3.2.10 as new 3.2.5 through 3.2.11. Add new 3.2.4 as follows:]
3.2.4 Authorization Period
Authorization remains in effect until such time as the Business Mailer Support manager or the mailer cancels the agreement. If Postal Service periodic reviews or mailer-supplied information demonstrates a need for modification of the agreement, then the authorization will be modified with concurrence by the Business Mailer Support manager and the mailer.
3.2.5 Denial
[Revise the third sentence of renumbered 3.2.5 as follows:]
***If the manager determines that the application should be denied, the file is forwarded to the Marketing and Technology Channel Management manager, USPS Headquarters, who will issue the final agency decision to the mailer.
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3.2.10 USPS Cancellation
The USPS may cancel an Optional Procedure Mailing System authorization if:
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[Revise renumbered 3.2.10b as follows:]
b. An audit reveals that the Optional Procedure Mailing System agreement should no longer be authorized or the mailer is not complying with the agreement.
3.2.11 Cancellation Notice and Appeal
[Revise the third sentence of renumbered 3.2.11 as follows:]
***If the Business Mailer Support manager does not uphold the appeal, the appeal letter, additional information, and the complete record underlying the decision to cancel the authorization are forwarded to the Marketing and Technology Channel Management manager, USPS Headquarters, who issues the final agency decision to the mailer.
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4.0 Alternate Mailing System
4.1 Basic Information
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4.1.2 Postage Adjustment
[Revise 4.1.2 as follows:]
Underpayments identified during USPS verification may require a postage adjustment. Verification samples are considered to be representative of the entire mailing, and postage adjustment calculations are applied to the total mailing. The total corrected postage for the entire mailing is deducted from the mailer’s permit imprint advance deposit account.
4.2 Authorization
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4.2.2 Conditions
[Delete item g.]
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[Renumber current 4.2.5 through 4.2.8 as new 4.2.6 through 4.2.9. Add new 4.2.5 as follows:]
4.2.5 Authorization Period
Authorization remains in effect until such time as the Business Mailer Support manager or the mailer cancels the agreement. If Postal Service periodic reviews or mailer-supplied information demonstrates a need for modification of the agreement, then the authorization will be modified with concurrence by the Business Mailer Support manager and the mailer.
4.2.6 Denial
[Revise renumbered 4.2.6 as follows:]
If the application is denied, the mailer may file a written appeal within 15 days from the receipt of the notice, including additional evidence explaining why the AMS request should be approved, to the Marketing and Technology Channel Management manager, USPS Headquarters, who reviews the appeal and issues the final agency decision.
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4.2.9 Appeal
[Revise the third sentence of renumbered 4.2.9 as follows:]
***The appeal must be filed with the Business Mailer Support manager for referral to the Marketing and Technology Channel Management manager, USPS Headquarters, who issues the final agency decision.***
5.0 First-Class Mail or Standard Mail Mailings with Different Payment Methods
5.1 Basic Provisions
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5.1.2 Postage Payment
[Revise 5.1.2 as follows:]
Postage, which is due to the USPS for permit imprint mail and additional postage for postage-affixed pieces, is paid through the mailer’s advance deposit account.
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5.1.8 Final Authorization
[Revise 5.1.8 as follows:]
At the end of the 90-day interim authorization, if the mailer’s program meets all applicable standards, Business Mailer Support prepares a detailed authorization for the mailer to follow in preparing combined mailings. The mailer must give advance written notice to Business Mailer Support regarding any planned changes to the system used to prepare combined mailings.
[Renumber current 5.1.9 through 5.1.14 as new 5.1.10 through 5.1.15. Add new 5.1.9 as follows:]
5.1.9 Authorization Period
Authorization remains in effect until such time as the Business Mailer Support manager or the mailer cancels the agreement. If Postal Service periodic reviews or mailer-supplied information demonstrates a need for modification of the agreement, then the authorization will be modified with concurrence by the Business Mailer Support manager and the mailer.
5.1.10 Denial
[Revise renumbered 5.1.10 as follows:]
If an application is denied, the mailer may, within 15 days from receipt of the notice, file a written appeal, including additional evidence explaining why the request should be approved, to the Marketing and Technology Channel Management manager, USPS Headquarters, who issues the final agency decision.
5.1.11 USPS Review
[Revise the introductory sentence for renumbered 5.1.11 and items a through c as follows:]
A USPS review of the mailer’s system is conducted annually with the following results:
a. If the review shows no need for modifications to the agreement, it continues according to current requirements.
b. If the review shows modifications were made to the system without prior notification to Business Mailer Support, but the system still remains qualified, the agreement is changed to reflect the new requirements.
c. If the review shows that the system can be continued but requires modifications specified by the USPS, the mailer must be so informed. If the mailer agrees to the modifications, a new agreement is implemented under 5.1.7 and 5.1.8.
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5.1.12 Suspension
[Revise the second sentence of renumbered 5.1.12 as follows:]
***The decision to suspend the agreement may be appealed to the Marketing and Technology Channel Management manager, USPS Headquarters, within 15 days of the receipt of the notice by submitting a written appeal with explanation.***
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5.1.14 Cancellation Procedure
[Revise the second and third sentences of renumbered 5.1.14 as follows:]
***The appeal must include additional information explaining why the combined mailing authorization should not be canceled. If the manager denies the appeal, both the appeal and the additional information are sent to the Marketing and Technology Channel Management manager, USPS Headquarters, who issues the final agency decision.
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5.2 Postage
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5.2.5 Permit Imprint Pieces—First-Class Mail and Standard Mail
[Revise the second sentence in 5.2.5 as follows:]
***Postage for the permit imprint part of a combined mailing must be paid from the mailer’s permit imprint advance deposit account.***
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We will incorporate these revisions into the next printed version of the DMM and into the monthly update of the online DMM available via Postal Explorer® at http://pe.usps.com.
— Mailing Standards,
Pricing and Classification, 9-27-07
