Periodicals Simplification Ideas February 23, 2017 Key Points Except in exceptional or extraordinary circumstances, postage price increases are capped at the rate of inflation at the class level as measured by the Consumer Price Index (CPI). Stamp prices have stayed consistent with the average annual rate of inflation since the Postal Service was formed in 1971. The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations. As mandated by the PRC, the termination of the exigent surcharge left the Postal Service with an approximate $2 billion loss in annual revenue.  

Initiatives Under Consideration Note: All discussions around these initiatives are to be considered preliminary and non-binding as they are still under consideration and are pending USPS senior leadership approval. Preliminary & Pre-Decisional

Periodicals Virtual FSS bundles for Periodicals Incent use of Periodical trays Simplify pending Periodicals payments Combine nonmachinable flats and parcels Eliminate foreign publication qualification and new agent registry Eliminate multiple origin entry facility types Encourage DDU entry Reviewing the mail piece requirements for flats Evaluate the need for indicia on products with Service Type codes Preliminary & Pre-Decisional

Periodicals Virtual FSS bundles for Periodicals Description: Currently FSS bundles are comprised of pieces that pay the 3D, 5D and CR rates but pay a single bundle charge. This is to analyze whether these pieces should actually be prepared as 3-Digit, 5-Digit and CR bundles. Preliminary & Pre-Decisional

Periodicals Incent use of Periodical trays Description: Currently, the Periodicals flat trays and tubs prices are the same as prices for sacks at all presort and entry levels. The tray/tub mail process is more cost effective than Sacks. It also reduces the manual handling of the mail. This looks at pricing incentives to shift from sack to trays or tubs. Preliminary & Pre-Decisional

Periodicals Simplify pending Periodicals payments Description: Currently, publications pending approval as Periodicals are charged the corresponding Standard Mail or Bound Printed Matter Price. It has become increasingly difficult for the Postal Service and the mailers to map to these prices. The proposal is to determine a percentage of Periodicals prices (based on knowledge of corresponding Standard Mail and BPM) that is appropriate for these Periodicals and to charge that amount. Preliminary & Pre-Decisional

Periodicals Combine nonmachinable flats and parcels Description: The purpose is to simplify the product offering and ensure optimal processing by combining nonmachinable Periodical flats with Periodical parcels Preliminary & Pre-Decisional

Periodicals Eliminate foreign publication qualification and new agent registry Description: The purpose is to remove News Agent and Foreign Publication from the Application for Periodicals Mailing Privileges. Instead, they will qualify under the remaining existing authorizations. Preliminary & Pre-Decisional

Periodicals Eliminate multiple origin entry facility types Description: Currently the Periodicals postage statement, PS Form 3541 has multiple lines for Origin Entry Sack/Tray and Pallet price; however, the price is the same no matter what origin entry is chosen. The proposed change will eliminate the multiple origin entry facility types for each of the various presort level of sacks and pallets, namely Origin NDC, Origin ADC, Origin SCF and Origin DDU or DMU and combine those options into one. Preliminary & Pre-Decisional

Periodicals Encourage DDU entry Description: We are looking at ways to encourage DDU entry for Periodicals. Preliminary & Pre-Decisional

Periodicals Reviewing the mail piece requirements for flats Description: This BNS will address what the criteria for a machinable/ automation flat-size mailpiece should be and streamline all the classes into the same definition. This will improve our ability to more efficiently process on flat sorting machines and will focus on unbound publications. Preliminary & Pre-Decisional

Periodicals Virtual FSS bundles for Periodicals Incent use of Periodical trays Simplify pending Periodicals payments Combine nonmachinable flats and parcels Eliminate foreign publication qualification and new agent registry Eliminate multiple origin entry facility types Reviewing the mail piece requirements for flats Evaluate the need for indicia on products with Service Type codes Preliminary & Pre-Decisional

Periodicals Evaluate the Need for Indicia on Products for Service Type Codes Description: This is to evaluate the possibility of making indicia optional for some or all classes of mail. Preliminary & Pre-Decisional

Questions