1 Northeast Area Mailing Industry Focus Group Presentation 6/24/2014

2  Exigent Price Increase Ruling  PAG Items update  Standard Mail Eligibility  Nonprofit Standard Mail Eligibility  Exceptions  Permit Indicia Formats  Media Mail Eligibility Agenda

Exigent Price Increase Ruling

Federal Appeals Court  Ruling Issued  Case is remanded back to the PRC  USPS will have to roll back temporary 4.3% price increase at some point depending on decision from PRC  Appeals Court ruling added an estimated 1.4 billion additional revenue as part of exigent Exigent Price Increase

Outcome  Until we get a decision from PRC, we are projecting that we may have to roll back Exigent surcharge sometime in August  If we roll back, then we will have to put in place again at a later time to cover the estimated 1.4 billion that was added on by Appeals Court Exigent Price Increase

PAG Items

7 PAG Related Items Marked Copies  Continued discussion of this issue at the June 11 th Periodical Advisory Group (PAG).  Process still not defined / built.  Inconsistency across industry on submission (original vs additional entry)  DMM standards to be reviewed with regard to each edition (possibly change to most prominent issue)

8 PAG Related Items Marked Copies  USPS to work with original entry offices with minimal marked copy audit knowledge.  USPS and industry mutually agreed that the current requirement will remain in effect.

9 PAG Related Items Video / Audio / Electronic Inserts: Background  PCSC has approved some of these at Periodicals prices but others as Ride-Along  Publishers requested a clarification of what crosses the line

10 PAG Related Items Video / Audio / Electronic Inserts:  Product Classification defined what types of video, audio, and electronic inserts will be eligible at Periodicals prices.  PCSC allows a minor portion of a printed page to be a non-printed sheet as part of a multi-layered advertisement.  Many of these video /audio units take the reader to an advertisement for a product and has the same effect / purpose as a product sample.  Drives more mail when the product is ordered

11 PAG Related Items Video / Audio / Electronic Inserts:  Electronic unit cannot weigh more than 3.3 oz. (limit in the Product Sample standard).  Rigidity of electronic may make the piece non- machinable.  If not eligible for Periodicals prices and rigid, and since a Ride-Along cannot change the processing category, it may make the unit a Standard Mail enclosure.

Standard Mail Eligibility

13

14 Standard Mail Eligibility  Handwritten or typewritten  Bill  Statement of Account  Personal information Ineligible Mailpieces

15 Standard Mail Eligibility  Must have an advertisement for a product or service, or solicitation for a donation (for Nonprofit mailpieces)  Personal information must be directly related to the advertisement  The exclusive purpose of the personal information is to support the advertisement. Mailpieces with Personal Information

16 Standard Mail Eligibility  The advertisement for a product or service must be clear and not inferred  Avoid a dual purpose (if you are asking addressee to do something else with the personal information, it make’s it a dual purpose) Mailpieces with Personal Information

17 Standard Mail Eligibility  We look at the entire mailpiece including the outer envelope  We consider an account number an identifier and not personal unless it is brought into the mailpiece. Determining Personal Information

Nonprofit Standard Mail Eligibility

19 Nonprofit Standard Mail Eligibility  All matter mailed at Nonprofit Standard Mail prices must identify the authorized organization.  Name and return address of authorized organization must be either on the outside or in a prominent location.  Pseudonyms or bogus names  If there is a return address the name and address must be that of the authorized organization  Organizations are allowed to have multiple addresses (CSR – 124) Identification of Nonprofit Organization

20 Nonprofit Standard Mail Eligibility  An organizations own matter  The postal Service does not provide rulings on substantially related  Cannot lend or delegate its authorization to other persons or organizations (ex. cooperative mailing)  Cooperative mailing permitted when both organizations are authorized Eligible Matter

21 Nonprofit Standard Mail Eligibility  May contain general advertising if the content standards for Periodicals is met:  Title  Frequency  Issue date  May not contain T.I.F. advertisement Eligible Matter

22 Nonprofit Standard Mail Eligibility  Travel Must include transportation, accommodation and destination to be considered a travel arrangement  Insurance  Financial (credit / debit card) Ineligible Matter

Exception Requests

24 Exception Process The PCSC is the approval authority when mailers request exceptions to the mailing standards  We approve exceptions to markings, incorrect permit number, missing Periodicals ID Statement, etc., that do not effect price.  The PCSC is not authorized and cannot approve exceptions to price. Exception Process

25 Requests for Exception to Standards To the extent that postage prices, fees for mail services, and basic mail classification and eligibility are prescribed by federal statute or the Domestic Mail Classification Schedule, the USPS is not authorized to waive or except the corresponding DMM standards. Postmasters or managers at Post Offices, district or area offices, and other field facilities may not suspend or grant any waiver or exception to standards established by the USPS (e.g., regarding mail preparation) unless specifically authorized by the DMM. Any mailer's request for an exception to DMM standards must be referred to the PCSC. (DMM ) Exception Process

26 Exception Process The mailer must request the exception through the local BMEU, with the following:  Letter from the owner of the mail (not the mailing preparer or agent.  Sample mailpiece, or a scan at the minimum  The BMEU will forward the request to the PCSC Exception Process

27 Exception Process The BMEU will forward the letter from the mail owner, sample mailpiece (or scan) and the Exception Request form (internal form) to the PCSC. Exception Request form provides necessary contact information, mailing location, class of mail, processing category, mail date, etc.

28 Exception Requests If your mail is at the acceptance unit and the PCSC is able to approve your request, we will provide the local acceptance unit a verbal approval to release the mail pending our ruling letter.

29 Permit Indicia Formats

30 Permit Indicia  Legible in a color that contrasts with the OE paper  Must read in the same direction as the delivery address  Placed in the following four:  Upper right corner of mailpiece  Upper right corner of address area  Upper right area of an address label  To the right of the address in an insert /window envelope  Cannot be placed below the delivery address Permit Indicia Format

31 Permit Indicia  No printing to the right or above the indicia  Any decorative designs must be to the left with a clear space to the indicia  Box around the indicia may be omitted if the required content is present  Indicia must not resemble or imitate a postage meter imprint, postage stamp or other postage payment method. Permit Indicia Format

32 Permit Indicia  Markings such as; “Urgent,” “Rush-Delivery,” “Time Sensitive,” must show the class of mail more prominently than other words in the indicia  Pieces may not include markings identical to or confusingly similar to USPS trademarks, or designs used by USPS to identify a class of mail. Marking Expedited Handling on Permit Indicia Mail

33 Media Mail Eligibility

34 Media Mail  Background  Media Mail (or “Book Rate”) designed in 1938  Flow of educational material  Technology has changed  Computer-readable media classification created in 1984 DMM i provides that computer-readable media containing prerecorded information and guides or scripts prepared solely for use with such media may be mailed at Media Mail prices. Media Mail Eligibility

35 Media Mail  Contents Standards  Books, supplements to book, 8 pages minimum, no advertising  16 mm or narrower films  Printed music  Printed objective test materials and accessories  Sound recordings, video recordings, player piano rolls  Playscripts and manuscripts  Printed education reference charts  Loose leaf pages and their binders / medical  Computer readable media Media Mail Eligibility

36 CSR PS-334: Media Mail Prices Eligibility Computer Readable-Media  Video Games are ineligible  CD-ROM  Diskettes  Similar software  Regardless of playable system including computers Media Mail Eligibility

37 CSR PS-334: Media Mail Prices Eligibility Computer Readable-Media  Storage Devices are ineligible  Portable hard drives  Thumb drives  Flash drives  Jump-drives  USB drives Media Mail Eligibility

38 Questions? Peter Pagano