Effective November 7, 2011, the Postal Service™ will revise the Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM®) 126.1, 136.1, 156.1 and 705 to introduce new options designed for the return of merchandise, and to add a new subchapter 505 to consolidate all other USPS® return service standards.
Many merchants prefer to provide convenience labels to their customers for the return of goods purchased by paying shipping charges from the merchant’s account. Current return options provided by the Postal Service often require a weighing and rating process that can be inefficient for both the Postal Service and the merchant.
To provide a more comprehensive selection, the Postal Service is introducing:
n Priority Mail® Return Service: An expedited return service that will be processed through USPS networks similarly to Priority Mail outbound parcels.
n First-Class™ Package Return Service: A lightweight return service that will be processed similarly to First-Class Mail outbound parcels.
n Ground Return Service: A ground return service that will be processed similarly to Parcel Post® outbound parcels.
These optional services feature processing, transportation, pricing, and service objectives that correspond with their respective outbound products.
With this revision, the Postal Service will implement an optional supporting postage payment program called scan-based payment (SBP), with some similarities to the current Electronic Verification System (eVS®). The SBP program will record data from delivery, acceptance, and other USPS scanning events, and will use this data to debit the permit holder’s account. The SBP program uses a statistically valid sampling program to calculate postage, in lieu of weighing and rating each individual piece. This program will be available for customers who receive a minimum of 10,000 combined SBP parcel returns at one location for Priority Mail Return Service, First-Class Package Return Service, and Ground Return Service only. Mailpieces bearing traditional Merchandise Return Service (MRS) and Bulk Parcel Return Service (BPRS) markings are not eligible for SBP. Participation in SBP is a requirement for any of the USPS returns options.
The pricing for these new returns options will be based on the existing pricing schedules for their corresponding outbound products. The Postal Service will also offer commercial base pricing for each of the three new returns service options, predicated on the use of a USPS-approved barcoded label and participation in the SBP program. Commercial base pricing for Ground Return Service will parallel that for regular Parcel Post pricing.
Commercial plus pricing is available only for Priority Mail Return Service and First-Class Package Return Service, and is available to mailers who meet the qualifications for commercial base pricing and:
n Have cumulative Priority Mail Return Service and First-Class Package Return Service volume exceeding a combined total of 25,000 return pieces in the previous calendar year, or
n Have cumulative returns commercial plus cubic volume exceeding a combined total of 85,000 pieces returned in approved packaging in the previous calendar year, or
n Have cumulative returns and outbound volume exceeding a combined total of 90,000 pieces in the previous calendar year, or
n Have a signed commercial plus returns customer commitment agreement with USPS.
The Postal Service is also providing a process to obtain scan data for mailpieces addressed to participating merchants when their customers pay their own postage for return parcels. Within this process, tracking barcodes will be applied when customers pay retail postage for mailpieces being returned to a participating merchant, at an Automated Postal Center® (APC®) or at a retail window with Point of Service (POS) ONE capability. Tracking information will then be made available at no additional charge. For more information on this process, contact your local shipping solutions specialist.
This new suite of mailing choices, under the umbrella of USPS returns, enables the Postal Service to offer competitive return shipping options that meet the service needs of customers. These new options will streamline the process for doing business with USPS by including barcodes on every piece, a streamlined payment protocol, enhanced tracking, and more label distribution choices. The new options will also enable the Postal Service to better identify shipments, while providing customers with tracking and visibility in a simple and convenient process.
Mailers may begin the application process for the new returns options immediately.
Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM)
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100 Retail Mail
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120 Priority Mail
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126 Deposit
1.0 Deposit
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[Add a new 1.3 as follows:]
1.3 Returns
The USPS Priority Mail Return Service retail option is available either via an Automated Postal Center (APC) transaction or at a retail window with Point of Service (POS) One capability. The Postal Service will apply a tracking barcode to these pieces and provide tracking information, including confirmation of delivery.
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130 First-Class Mail
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136 Deposit
1.0 Deposit for First-Class Mail
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[Add a new 1.2 as follows:]
1.2 Returns
The USPS First Class Package Return Service retail option is available either via an Automated Postal Center (APC) transaction or at a retail window with Point of Service (POS) One capability. The Postal Service will apply a tracking barcode to these pieces and provide tracking information, including confirmation of delivery.
150 Parcel Post
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156 Deposit
1.0 Deposit for Parcel Post
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[Add a new 1.7 as follows:]
1.7 Returns
The USPS Ground Return Service retail option is available either via an Automated Postal Center (APC) transaction or at a retail window with Point of Service (POS) One capability. The Postal Service will apply a tracking barcode to these pieces and provide tracking information, including confirmation of delivery.
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500 Additional Mailing Services
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[Add new 505 as follows:]
505 Return Services
[Move current 507.9.0, Business Reply Mail (BRM), and renumber as new 505.1.0.]
[Move current 507.10.0, Permit Reply Mail, and renumber as new 505.2.0.]
[Move current 507.11.0, Merchandise Return Service, and renumber as new 505.3.0.]
[Add a new 505.4.0 as follows:].
4.0 USPS Return Services
4.1 Description
Priority Mail Return Service, First-Class Package Return Service, and Ground Return Service provide return service options to customers who meet the standards in this section. Except as provided below, restricted material described in 601.8.0, and live animals under 601.9.3, any mailable matter may be mailed using any of the USPS Return Service options. Any content that constitutes First-Class Mail matter may only be mailed using Priority Mail Return Service or using First-Class Package Return Service at commercial plus prices. All USPS Return Service labels, except those using Parcel Return Service, must include an Intelligent Mail package barcode. Mailers using Priority Mail Return Service, First-Class Package Return Service, or Ground Return Service must participate in a scan-based payment program (SBP) under 705.24.
4.2 Permits, Authorizations, and Fees
4.2.1 Permit Fee
An annual Merchandise Return Service permit fee, under 3.1.1, is required for the return services described in 4.1.
4.2.2 Advance Deposit Account and Account Maintenance Fee
The participant must pay postage through an advance deposit account and must pay a Merchandise Return Service annual account maintenance fee, under 3.1.2, for the return services described in 4.1
4.3 Extra Services
Only USPS insurance for items with a value of $200 or less can be purchased by the mailer at retail for Priority Mail Return Service, First-Class Package Return Service, and Ground Return Service.
4.4 Pricing
4.4.1 Commercial Base Prices
Commercial base prices are available for permit holders receiving mailpieces under 4.0 bearing USPS-authorized labels and participating in a scan-based payment program (SBP) under 705.24.
4.4.2. Commercial Plus Prices
Permit holders may combine cumulative volumes for Priority Mail Return Service and First-Class Package Return Service. Eligibility for commercial plus prices are available to permit holders who qualify for commercial base prices, and at least one of the following:
a. Have cumulative Priority Mail Return Service, First-Class Package Return Service, and Ground Return Service volume exceeding a combined total of 25,000 return pieces in the previous calendar year.
b. Have cumulative returns commercial plus cubic volume exceeding a combined total of 85,000 pieces returned in approved packaging in the previous calendar year.
c. Have cumulative returns and outbound volume exceeding a combined total of 90,000 pieces in the previous calendar year.
d. Have a signed commercial plus returns customer commitment agreement with USPS.
4.5 Computing Postage
Postage is calculated based on the weight of the parcel and zone, except for First-Class Package Return Service, for which postage is based on the weight of the parcel. Commercial base and commercial plus customers must pay postage under 705.24.0 and via an eVS/CAPS account.
4.6 Label Requirements
4.6.1 Label Preparation
Returns labels must be certified by the USPS for use prior to distribution as defined in the authorization letter. In addition, permit holders must obtain USPS certification for barcode symbology. Any photographic, mechanical, or electronic process or any combination of these processes may be used to produce labels. Labels must be prepared in accordance with 708.5, PUB 91, and PUB 205.
4.6.2 Labeling Methods
Permit holders or their agents may distribute approved USPS Return Service labels and instructions by any of the following methods:
a. As an enclosure with merchandise when initially shipped, or as a separate label mailed by the permit holder to the customer. If the reverse side of the label bears an adhesive, it must be strong enough to bond the label securely to the mailpiece.
b. As an electronic file created by the permit holder for local printing by the customer.
4.6.3 Label Instructions
Permit holders or their agents must provide written instructions to the label end-user (mailer) directing them as follows:
a. “If not already printed in the return address area, print your name and address (or attach a return address label) in this area.”
b. “Attach the return label squarely onto the largest side of the mailpiece, centered when possible. Place the label at least one inch from any edge of the parcel, so that it does not fold over to another side. Do not put any tape over any barcodes on the label.”
c. “If reusing the original container, cover your delivery address, barcodes, and any other postal information on the container with the return label. If it is not possible to cover all that information, remove the old labels, mark them out completely with a permanent marker, or cover them completely with blank labels that cannot be seen through. If the labels cannot be removed or completely obscured or if the original container is no longer sound, use a new box to return the merchandise and attach the return label to the new box.”
d. “Mail the labeled parcel at a Post Office, drop it in a collection box, leave it with a letter carrier, or schedule a carrier pickup at USPS.com.”
4.6.4 Label Format Elements
USPS Return Services standard label sizes are 3 inches by 6 inches, 4 inches by 4 inches, or 4 inches by 6 inches. All other label sizes require written approval from the National Customer Support Center (NCSC). The label must accommodate all required elements. All labels, except those using Parcel Return Service, must be prepared according to 708.5.1 and must include an Intelligent Mail package barcode. All USPS Returns label elements must be legible.
4.7 Priority Mail Return Service
4.7.1 Description
Priority Mail Return Service is an expedited service and may contain any mailable matter weighing no more than 70 pounds. Lower weight limits apply to commercial plus cubic (see 1.1.4), APO/FPO mail is subject to 703.2.0 and 703.4.0, and Department of State mail is subject to 703.3.0.
4.7.2 Service Objectives
Priority Mail Return Service receives expeditious handling and transportation, with service standards in accordance with Priority Mail.
4.7.3 Prices and Eligibility
Priority Mail Return Service items mailed under a specific customer agreement is charged postage according to the individual agreement. Otherwise Priority Mail Return Service eligibility is under 4.7. Commercial base and commercial plus prices are the same as for outbound Priority Mail in Notice 123.
4.7.5 Labels
Labels must be prepared under 4.6. See exhibit 4.7.5a.
Exhibit 4.7.5a Priority Mail Return Service Label Example
4.8 First-Class Package Return Service
4.8.1 Description
First-Class Package Return Service is an expedited service. Items subject to commercial base First-Class Package Service parcel prices may contain any mailable merchandise matter weighing no more than 13 ounces. Items subject to commercial plus First-Class Package Service parcel prices may contain any mailable matter weighing less than 16 ounces. Parcels greater than 13 ounces will be charged the 1-pound Priority Mail price unless they are eligible for commercial plus prices for items over 13 ounces but less than 16 ounces.
4.8.2 Service Objectives
First-Class Package Return Service receives expeditious handling and transportation, with service standards in accordance with First-Class Mail.
4.8.3 Prices and Eligibility
First-Class Package Return Service eligibility of contents is the same as for outbound First-Class Package Service parcels under 433. Parcels weighing more than 13 ounces but less than 16 ounces may be included in the eligibility calculation for commercial plus prices, and parcels weighing 13 ounces or less are eligible for commercial base prices.
4.8.4 Labels
Labels must be prepared under 4.6. See Exhibit 4.8.4a.
Exhibit 4.8.4a First-Class Mail Package Return Service Label Example
4.9 Ground Return Service
4.9.1 Description
Ground Return Service provides ground transportation for mailpieces containing mailable matter weighing no more than 70 pounds and meeting the content standards in 153.3.
4.9.2 Service Objectives
Ground Return Service assumes the handing and transportation and service objectives for delivery of Parcel Post.
4.9.3 Prices and Eligibility
Ground Return Service mailpieces are charged per pound; any fraction of a pound is rounded up to the next whole pound. The minimum postage amount per addressed piece is the 1-pound price. Ground Return Service eligibility and prices are the same as for outbound Parcel Post.
4.9.4 Labels
Labels must be prepared in accordance with 4.6. See Exhibit 4.9.4a.
Exhibit 4.9.4a Ground Return Service Label Example
[Move current 507.13.0, Parcel Return Service, and renumber as new 505.5.0.]
5.0 Parcel Return Service
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5.4 Label Formats
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5.4.5 PRS Label Format Examples
The following are PRS label format examples. Note: The ZIP Code 56999 appears in each example for demonstration purposes only.
[Revise item 5.4.5a by deleting the word “Select” as follows:]
a. Parcel Return Service label using a separate PRS barcode and postal routing barcode.
[Revise the current graphic for item 5.4.5a by deleting the word “SELECT” in the legend.]
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[Revise item 5.4.5b by deleting the word “Select” as follows:]
b. Parcel Return Service label using a concatenated barcode.
[Revise the current graphic for item 5.4.5b by deleting the word “SELECT” in the legend.]
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[Move current 507.12.0, Bulk Parcel Return Service, and renumber as new 505.6.0.]
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600 Basic Standards for All Mailing Services
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608 Postal Information and Resources
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8.0 USPS Contact Information
8.1 Postal Service
[Add the following new addresses to 8.1 in alphabetical order:]
New Business Opportunities
US Postal Service
475 L’Enfant Plz SW Rm 5407
Washington DC 20260-5407
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Domestic Products
US Postal Service
475 L’Enfant Plz SW Rm 5337
Washington DC 20260-5337
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700 Special Standards
* * * * *
705 Advanced Preparation and Special Postage Payment Systems
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[Add new part 705.24 as follows:]
24.0 Scan-based Payment
24.1 Basic Information
24.1.1 Description
The scan-based payment (SBP) program is designed to calculate postage based on sampling, rather than weighing and rating each individual piece. Participation in this program, subject to application and authorization, is available for customers who receive a minimum of 10,000 combined SBP parcel returns to a single location in 505.2.0 through 505.5.0. Prices are calculated as follows:
a. Applicants are provided with an initial agreed-upon uniform price per mailpiece, from the published price schedules, though an initial USPS/mailer agreement.
b. Mailpieces are identified by the presence of one or more USPS scan events.
c. Program volume is sampled for each participant, and an adjusted average uniform price, from the published price schedules, is developed through revolving 4-week sampling periods. During these sampling periods, postage and fees are assessed based upon the weight and zone of sampled pieces.
d. The participant’s initial uniform price, from the published price schedules, is adjusted in accordance with the result of the sampling.
e. A new SBP value is calculated and applied monthly, based on the previous 4 weeks of sampling data. The adjusted uniform price, from the published price schedules, will become effective on the 11th of each month.
f. If there is a general change in the published price schedules, prices under this program will automatically adjust to reflect the new prices.
24.1.2 Eligibility
SBP participation may be authorized for applicants who receive a minimum of 10,000 combined returns per year at a single destination. Returns include Ground Return Service, First-Class Package Return Service, Priority Mail Return Service, and Parcel Return Service shipments. Only parcels and flat rate parcels and flats may be processed through the SBP program.
24.2 Authorization
24.2.1 Application
Application for this program is available through the Business Customer Gateway via the USPS.com website.
24.2.2 Approval
The manager, New Business Opportunities authorizes participation in this program. If the application is approved, an authorization letter is provided to the mailer.
24.2.3 Denial
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 SBP request should be approved, to the vice president, Domestic Products (see 608.1 for address) who reviews the appeal and issues the final agency decision.
24.2.4 Authorization Period
Authorization remains in effect until the manager, New Business Opportunities or the customer cancels the agreement. The authorization or agreement may be modified with concurrence by the manager, New Business Opportunities and the mailer.
24.2.5 USPS Suspension
The manager, New Business Opportunities may suspend an SBP authorization at any time, pending investigation, if the authorization does not provide adequate revenue protection, or the customer (or agent) fails to meet the criteria established by the authorization. The decision to suspend the authorization may be appealed to the vice president, Domestic Products within 15 days of the receipt of the notice, by submitting a written appeal with explanation.
24.2.6 Mailer Cancellation
The customer may cancel an SBP authorization by writing to the manager, New Business Opportunities. Customers are responsible for payment on all outstanding packages even after cancellation of the SBP agreement.
24.3 Price Adjustment
Each price change will take effect on the 11th of the month. Following a price adjustment, the customer will have 10 days to dispute the change in writing to the manager, New Business Opportunities.
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We will incorporate these revisions into the next monthly update of the online DMM, which is available via Postal Explorer® at http://pe.usps.com.
— Product Classification,
Pricing, 9-22-11
