1. 1 R2006-1 Mail Preparation Changes NCSC January 18, 2007

2. 2 Automation  Maximum letter weight  3.5 ounces  No automation carrier route preparation  Overflow trays are optional  No change to rate eligibility and required tray prep (85% full trays) Letters and Cards First-Class Mail

3. 3 Letters and Cards First-Class Mail 5-Digit/Scheme optional 3-Digit/Scheme L002 AADC L801 Mixed AADC L201 Automation

4. 4 Letters and Cards First-Class Mail 5-Digit/Scheme optional 3-Digit/Scheme L002 AADC L801 Mixed AADC L201 5-digit/scheme overflow mail 3-digit/scheme overflow mail AADC overflow mail Automation

5. 5 Machinable  Maximum letter weight – 3.5 ounces  No 5-digit or 3-digit tray preparation except for 3-digit origin trays  Required trays include 3-digit origin, AADC, and mixed AADC Letters and Cards First-Class Mail

6. 6 Letters and Cards First-Class Mail 3-Digit origin L002 AADC L801 Mixed AADC L201 Machinable

7. 7 Letters and Cards First-Class Mail 3-Digit originAADCMixed AADC AADC overflow mail Machinable

8. 8 Nonmachinable  Nonmachinable letters pay flat-size price based on weight  Eliminate nonmachinable surcharge  Eliminate “manual only” option  No prep changes Letters and Cards First-Class Mail

9. 9 Automation  AFSM 100 standards  New flexibility standards  Eliminate nonmachinable surcharge  Rigid flats pay the parcel price Flats First-Class Mail

10. 10 Nonautomation  Eliminate nonmachinable surcharge  Rigid flats pay the parcel price  Rectangular requirement  Uniform thickness Flats First-Class Mail

11. 11 Presorted  Barcoding required  Either UCC-EAN 128 postal routing or POSTNET code  No bundling  Added 5-digit/scheme prep  Optional Parcels First-Class Mail

12. 12 Presorted  Sacks – 10 lbs minimum for 5 digit/sch, 3-digit, and ADC  Separate prices for 5-digit, 3-digit, and ADC  Remainder mixed ADC (single-piece prices) 5d/sch L606 3-dg L002 ADC L004 Mxd L201 Parcels First-Class Mail

13. 13 Presorted Parcels  Barcode Standard  $0.05 surcharge assessed to pieces in 3-digit and ADC sacks if:  No barcode on parcel, or  Weight less than 2 ounces, or  Tubes, rolls, triangles, etc. No surcharge for pieces sorted to 5-digit sacks or if paying single-piece rates Parcels First-Class Mail

14. 14 Standard Mail Significant Changes  DDU 5-digit drop ship option for parcels  Add “Not Flat-Machinable” category

15. 15 Standard Mail Significant Changes  Discontinue destination delivery unit rate for letters  Charge for detached address labels (DALs) on ECR flats and parcels.

16. 16 Automation  Maximum letter weight  3.5 ounces – remains the same  No automation carrier route preparation  Overflow trays are optional Letters Standard Mail

17. 17 5-Digit/Scheme optional 3-Digit/Scheme L002 AADC L801 Mixed AADC L011 Automation Letters Standard Mail

18. 18 5-Digit/Scheme optional 3-Digit/Scheme L002 AADC L801 Mixed AADC L011 5-digit/scheme overflow mail 3-digit/scheme overflow mail AADC overflow mail Automation Letters Standard Mail

19. 19  Machinable  Maximum letter weight – 3.3 ounces  No 5-digit or 3-digit tray preparation  Tray preparation includes 3-D origin, AADC, and mixed AADC Letters Standard Mail

20. 20 AADC L801 Mixed AADC L011 Machinable Letters Standard Mail Origin 3d optional

21. 21 AADC L801 Machinable Letters Standard Mail Mixed AADC L011 Origin 3d optional AADC overflow mail

22. 22 Letters Standard Mail  Nonmachinable  Nonmachinable letters separate price  Eliminate nonmachinable surcharge  Nonmachinable letters over 3.3 ounces pay NFM price  Eliminate “manual only” option

23. 23 Enhanced Carrier Route  Full trays only for basic, high density, and saturation letters  Barcoded  Up to 3 ounces  Group carrier routes within trays Letters Standard Mail

24. 24 Carrier Route 5-Digit Carrier Routes 3-Digit Carrier Routes Enhanced Carrier Route Letters Standard Mail

25. 25 Carrier Route 5-Digit Carrier Routes Carrier Route overflow mail 5-digit/CRs overflow mail Enhanced Carrier Route Letters Standard Mail 3-Digit Carrier Routes

26. 26 Carrier Route 5-Digit Carrier Routes 3-Digit Carrier Routes Enhanced Carrier Route Letters Standard Mail

27. 27 Automation  AFSM 100 standards  New flexibility standards  Required 5-digit/sch bundles  Required 3-digit/sch bundles  Required 5-digit/sch sacks Flats Standard Mail

28. 28 Nonautomation  New scheme preparation  Required 5-digit/sch bundles  Required 3-digit/sch bundles  Required 5-digit scheme sacks  Rectangular requirement  Uniform thickness  Rigid pieces pay NFM or parcel rate Flats Standard Mail

29. 29 Enhanced Carrier Route  Maximum dimensions  Increased to 12" X 15"  Standardized for all flats Flats Standard Mail

30. 30 Standard Mail Parcels Machinable rate tiers Current Proposed 5-digit3-digitADCMixed ADC 3/5Basic Irregular rate tiers Current Proposed 3/5Basic 5-digitBMCMixed BMC

31. 31 Machinable  DDU entry discount if sorted to 5-digit  No minimum when entered at DDU  New prices – 5-digit, BMC, mixed BMC  Eliminate residual shape surcharge 5-d/sch L606, ASF L602, BMC L601, Mxd BMC L601 Parcels Standard Mail

32. 32  Irregular Parcels  No bundling  Eliminate residual shape surcharge  DDU entry discount if sorted to 5-digit  No minimum when entered at DDU 2- 6 ounces, not tubes or rolls 5-d/sch L606, 3-d L002, ADC L004, Mxd ADC L009 Parcels Standard Mail

33. 33  Irregular Parcels  No bundling  Eliminate residual shape surcharge  DDU entry discount if sorted to 5-digit  No minimum when entered at DDU Tubes or Rolls and pieces less than 2 ounces 5-d/sch L606, 3-d L002, ADC L603, Mxd ADC L604 Parcels Standard Mail

34. 34 Standard Mail Significant Changes Not-Flat Machinable Proposed rate tiers 5-digit3-digitADCMixed ADC

35. 35 Not Flat-Machinable  Rigid  UFSM 1000  Optional 5-digit bundles on pallets  5 piece minimum Standard Mail

36. 36 Not Flat-Machinable  Less than 6 ounces  Sortation – 5-digit, 3-digit, ADC and mixed ADC  Allow DDU entry if sorted to 5-digit  No minimum when entered at DDU Standard Mail

37. 37 Not Flat-Machinable  less than 6 ounces (proposed) Standard Mail 5-Digit/ Scheme L606 optional 3-Digit L002 ADC L004 Mixed ADC L009

38. 38 Not Flat-Machinable  6 ounces or more  Sortation – 5-digit, BMC and mixed BMC  Allow DDU entry if sorted to 5-digit  No minimum when entered at DDU Standard Mail

39. 39 Not Flat-Machinable  6 ounces or more (proposed) Standard Mail 5-Digit/ Scheme L606 optional ASF L602 BMC L601 Mixed BMC L601

40. 40  Combining parcels at DDUs  Machinable  Nonmachinable  Not Flat-Machinable  5-digit/sch sacks or pallets  No minimum when entered at DDU Parcels Standard Mail

41. 41  Combining NFM and Mach parcels  Machinable  Not Flat-Machinable 6 ounces & over  5-d/sch, BMC/ASF, Mixed levels 5-d/sch L606, BMC L601, ASF L602, Mxd BMC L601 Parcels Standard Mail

42. 42  Combining NFM/NM parcels  Irregular Parcels (over 2 ounces, not tube or roll)  Not Flat-Machinable less than 6 ounces  Any container level  Optional 5-digit  5-d/sch, 3-d, ADC and Mixed ADC 5-d/sch L606, 3-d L002, ADC L004, Mxd ADC L009 Parcels Standard Mail

43. 43  Combining L607 parcels  Expansion of L607  Combining with Package Services  Machinable  Nonmachinable  Not Flat-Machinable  3-digit containers at SCF entry Parcels Standard Mail

44. 44 Periodicals Significant Changes  Increase per-piece drop ship discounts  New 85¢ container rate  Enhanced drop ship incentives –Particularly for high-editorial content

45. 45  Pallet discounts eliminated  Copalletization experiments expire Periodicals Simplified Rate Structure

46. 46  Applying the container rate  $0.85 per container in mailing  Pallets  Sacks  Trays  Paid on 3541 or 3541-C Periodicals Outside-County Container Rate

47. 47 For Example Periodicals Outside-County Container Rate Quick Service Guide Outside-County mail prepared… Pays the container charge for… PalletsEach pallet Trays on palletsEach pallet Sacks on palletsEach sack SacksEach sack TraysEach tray Not in containers; entered at a DDU Each 5-digit/scheme serviced by the DDU

48. 48  Third Option for Printers  Prorate across the pool  Based on percentage of each title or edition on a pallet  Must use Mail.dat  Mixed In-County and Outside County  No charge for carrier route, 5d carrier routes, or 5-digit containers Periodicals Container Charge

49. 49  Nonadvertising pound rate  DDU, DSF, DADC (Regular)  DDU, DSF, DADC, Zones 1 and 2 (Science of Agr.) Periodicals Rate Structure Changes

50. 50 Periodicals Pound Rate Postage

51. 51  Maximum weight 6 pounds  Maximum thickness 1.25 inches Periodicals Automation Flats

52. 52 Timeline 2006 2007 May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Governors Decision (March/April) Implementation (May/June) PRC Recommendation (Early March) Litigation (May through March 2007) Filing Date (May 3, 2006) 10 Months 1 Year

53. 53 Questions