Under statutory restrictions in Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM®) section 703.1.6.11, products that are mailed at the Nonprofit Standard Mail® prices must meet at least one of three exceptions listed thereunder. One of the three enumerated exceptions is low-cost items (see DMM 703.1.6.11.a).
A low-cost item is one of the exceptions referenced in the Internal Revenue Code (see 26 USC 513(h)(2). The value of a low-cost item — the actual cost to the authorized nonprofit organization — is determined each year by the Internal Revenue Service at the beginning of each calendar year, and adjusted for the cost of living. Effective January 1, 2016, the value of a low-cost item cannot exceed $10.60.
Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM)
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700 Special Standards
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703 Nonprofit Standard Mail and Other Unique Eligibility
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1.0 Nonprofit Standard Mail
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1.6 Eligible and Ineligible Matter
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1.6.11 Products Mailable at Nonprofit Standard Mail Rates
[Revise item 1.6.11a to read as follows:]
a. Low-cost items within the meaning of 26 USC 513(h)(2), Internal Revenue Code. At the beginning of each calendar year, the value of low-cost items is adjusted for cost of living. Effective January 1, 2016, the cost of such items cannot exceed $10.60. This is the cost to the authorized organization that mails the items or on whose behalf the items are mailed.
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We will incorporate this revision into the January 17, 2016, update of the online DMM, which is available via Postal Explorer® at http://pe.usps.com.
— Product Classification,
Pricing, 11-26-15
