2. The Nuts and Bolts of Periodicals

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

4. 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.

5. 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

6. 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.

7. 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

8. 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.

9. 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.

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

11. 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

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

13. 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

14. 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

15. 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

16. 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

17. 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)

18. 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

19. 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 $ for a one year subscription to Airline Pilots International 5 5

20. 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

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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. QUESTIONS?

29. 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.

30. 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.

31. 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.

32. 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

33. 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.

34. 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

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