The Nuts and Bolts of Periodicals

The Nuts and Bolts of Periodicals Dennis Farley ESPN & Chuck Tricamo USPS

Nuts and Bolts of Periodicals Mail Classification Act enacted in 1879 established the classes of mail including Second Class Four basic elements to qualify: Published in serial format Established minimum frequency Office of publication in United States Formed up of printed sheets Generally, there are 3 reasons the Postal Servcie would perform a review of a publication’s circulation. When a publisher first applies for Periodicals mailing privileges for a publication. Periodic reviews of a publication’s continued eligibility Lastly, to change qualification category, for example from requester to general.

Nuts and Bolts of Periodicals Application Process Application process and associated fees Authorization categories Circulation and advertising restrictions Contents and characteristics PAID PUBLICATIONS: More than 50% paid circulation and no more than 75% advertising in half the issues in a 12 month period REQUESTER: More than 50% either requested or paid and no more than 75% advertising in a single issue

Nuts and Bolts of Periodicals Application Process Why a review? Original authorization for Periodicals mailing privileges Periodic reviews to prove continuing eligibility Change qualification category Generally, there are 3 reasons the Postal Servcie would perform a review of a publication’s circulation. When a publisher first applies for Periodicals mailing privileges for a publication. Periodic reviews of a publication’s continued eligibility Lastly, to change qualification category, for example from requester to general.

Nuts and Bolts of Periodicals Applying for Periodicals Authorization Form 3500, Application for Periodicals Mailing Privileges DM-204, Applying for Periodicals Mailing Privileges Only available via the WEB at pe.usps.com Additional links: Additional Publications: DM-204

Nuts and Bolts of Periodicals Alternative to USPS Review Certified Audit Bureaus For General and Requester Periodicals Initial Applications Reentry Applications Periodic Reviews This is a change we made somewhat recently, For General and Requester publications only, as an alternative to the USPS performing verifications of a publication’s circulation, we now permit publishers to contract with the independent audit bureaus ABC and BPA to perform any required verification of circulation including those required for initial applications for Periodicals mailing privileges.

Nuts and Bolts of Periodicals Periodic Reviews The USPS reviews Form 3526, Statement of Ownership Management and Circulation Expect a review if paid or requested circulation is less than 60% of total circulation You should expect the Postal Service to schedule a periodic review when your paid or requested circulation is less than 60% of your total circulation. The Postal Service will review Form 3526, statement of ownership, management, and circulation….. To determine whether a review should be scheduled. It should be pointed out that the Postal Service can schedule a review of a publication’s circulation regardless of what is reported on Form 3526. You must maintain circulation records for three years from its issue date except for records for which postal verification is done by a USPS authorized audit bureau. In that case, the records must be kept as long as required by the audit bureau.

Nuts and Bolts of Periodicals Two Forms 3526 Requester publications – Form 3526-R All other – Form 3526

Nuts and Bolts of Periodicals Periodic Reviews Ollie Overton, Owner September 14, 2005 October 12 6,430 5,128 14,954 15,083 1,963 1,482 16,917 16,565 57% 66% Average vs actual

Nuts and Bolts of Periodicals General Publications Subscriber List Exclude nonqualified recipients Newsstand copies Other paid 3 3

Nuts and Bolts of Periodicals Requester Publications Run Separate Lists For: Hard Copy Requests with Signatures and Dates along with paid subscriptions Telemarketing or Internet Requests

Nuts and Bolts of Periodicals Other Records Print order or invoice Orders for subscriptions and/or requests Records for “non-mail” sales (e.g., newsstand) A record of disposition for returns Vending machine records if any This is a list of the types of records you may be asked to provide. They include but are not limited to

Nuts and Bolts of Periodicals Other Records Records of sample copies distributed through the mails or otherwise Non distributed copies Records of spoils, stored copies, copies for office use only, and destroyed or recycled copies 9 12

Nuts and Bolts of Periodicals Other Records Copies of receipts for cash, checks, etc. Records of deposits Records for credit card payments Records of payments received through a third party 4 4

Nuts and Bolts of Periodicals Ordered Subscriptions Not Yet Paid Count as paid for up to two or three billing cycles or 90 days after order (Promise to Pays)

Nuts and Bolts of Periodicals Membership Organizations Membership application, dues payment, and membership renewal notices Make sure they separate the amount paid for a subscription to the publication from other fees 5 5

Nuts and Bolts of Periodicals Subscription as Part of Membership Be sure it is clear to the member that a specific amount is for the publication Dues statement Annual Membership Dues of $100 includes $10 for a one year subscription to Airline Pilots International 5 5

Nuts and Bolts of Periodicals Resolved that a copy of “Carpenters USA” Request as Part of Membership Membership organizations may adopt a resolution specifying that each member receive a copy of each issue Resolved that a copy of “Carpenters USA” shall be sent to each member of the National Carpenters Association of America 2 6 2

Nuts and Bolts of Periodicals What if I use Telemarketing/Internet? Three methods: Audit Bureau Review Form 3845 Publisher Letter 2 6 2

Nuts and Bolts of Periodicals How long will I have to wait for results? The goal is to schedule reviews within 30 days of the receipt of an application at the Post Office Reviews should take around 1-3 days Applications are sent to the PCSC Decision made within ten days after the eligibility review 10 13

Nuts and Bolts of Periodicals What if I fail the review? You may have to re-file with a later issue Pending money is not refunded You have to prepare mail as either First-Class or Standard Mail OR You may appeal the decision

Nuts and Bolts of Periodicals How will the appeal work? Appealed to Postal Service Headquarters through the PCSC Evidence to refute the determination may allow the PCSC to reverse its decision If not, Postal Service Headquarters may reverse or uphold the decision

Nuts and Bolts of Periodical Appeal You may file a petition for a hearing with an Administrative Law Judge Must file within 15 days of receipt of the ruling Must state the reasons why the publisher feels the ruling is incorrect

Nuts and Bolts of Periodicals Paying Postage While Pending Postage must be paid through an advance deposit account at or before the time of mailing (CAPS not available while Pending) 4 16

Nuts and Bolts of Periodicals New Launch Publications Apply prior to meeting circulation standards Publication’s circulation must be declared within 15 months Must have a updated business plan Pay applicable rates while pending Receive all other benefits of Periodicals Complete application on issue you think will qualify

QUESTIONS?

Nuts and Bolts of Periodicals Question 1 True or False A circulation review will encompass only the copies of a publication that are distributed by the mail.

Nuts and Bolts of Periodicals Question 1 True or False A circulation review will encompass only the copies of a publication that are distributed by the mail. Answer - FALSE Generally, there are 3 reasons the Postal Service would perform a review of a publication’s circulation. When a publisher first applies for Periodicals mailing privileges for a publication. Periodic reviews of a publication’s continued eligibility Lastly, to change qualification category, for example from requester to general.

Nuts and Bolts of Periodicals Question 2 True or False Once approved, a publisher no longer has to maintain the publication’s circulation records needed to prove eligibility.

Nuts and Bolts of Periodicals Question 2 True or False Once approved, a publisher no longer has to maintain the publication’s circulation records needed to prove eligibility. Answer - FALSE

Nuts and Bolts of Periodicals Question 3 True or False A review of circulation is generally performed when the paid or requested circulation is under 60 percent.

Nuts and Bolts of Periodicals Question 3 True or False A review of circulation is generally performed when the paid or requested circulation is under 60 percent. Answer - TRUE

Nuts and Bolts of Periodicals Thank You! Nuts and Bolts of Periodicals Dennis Farley ESPN & Chuck Tricamo USPS