Postal Processing Overview

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					  MAILPIECE DESIGN CONSULTANT (MDC)
          Industry Professional
          Certification Program




                MDC
             STUDY GUIDE
         MAILPIECE DESIGN CONSULTANT CERTIFICATION PROGRAM
                           EST. MARCH 2010




The information contained herein is the published property of Mail Systems
Management Association (MSMA). The MDC Study Guide includes basic
information and is to be used as a basic reference tool, only. For specific USPS
regulations, requirements, and restrictions, sign up to receive electronic federal
register notice updates, maintain a professional network thru MSMA and add the
online Domestic Mail Manual as a ―My Favorite‖ to your Internet Browser.
Table of Contents
1 POSTAL PROCESSING OVERVIEW...................................................................... 1
  Shaped-Based Initiative ............................................................................................................... 1
  Postal Operations ........................................................................................................................ 2
  Classes of Mail ............................................................................................................................. 4
2 PROCESSING METHODS & CATEGORIES.......................................................... 21
  Manual and Automated Processing Methods .......................................................................... 21
  USPS Processing Equipment ...................................................................................................... 22
  Physical Standards for Commercial Letters and Postcards ....................................................... 25
  Automation Letters and Cards .................................................................................................. 28
  Physical Standards for Commercial Flats .................................................................................. 34
3 WORLSHARE INCENTIVES ............................................................................... 41
  Mailing Services – Retail, Discount and Online ......................................................................... 41
  Workshare Incentives................................................................................................................ 42
  Move Update............................................................................................................................. 43
  Outsourcing ............................................................................................................................... 48
  Mail Service Providers ............................................................................................................... 50
  Planning a Discount Mailing ...................................................................................................... 51
4 ADDRESSING AND AUTOMATION................................................................... 53
  Addressing Guidelines ............................................................................................................... 53
  Window Envelopes and Inserts ................................................................................................. 59
  Barcodes .................................................................................................................................... 68
5 EXTRA SERVICES ............................................................................................. 75
  Certificate of Mailing ................................................................................................................. 75
  Certified Mail™ .......................................................................................................................... 76
  Collect on Delivery (COD) .......................................................................................................... 76
  Delivery Confirmation™ ............................................................................................................ 77
  Express Mail® Insurance ............................................................................................................ 77
  Insured Mail............................................................................................................................... 78
  Registered Mail™....................................................................................................................... 79
  Restricted Delivery .................................................................................................................... 79
  Return Receipt ........................................................................................................................... 80
  Return Receipt for Merchandise ............................................................................................... 80
  Signature Confirmation™ .......................................................................................................... 81
  Special Handling ........................................................................................................................ 81
  Form 3877 - Firm Mailing Book ................................................................................................. 82
6 ANCILLARY SERVICE ENDORSEMENTS ............................................................ 83
7 REMITTANCE MAIL ......................................................................................... 87
  Business Reply Mail (BRM) ........................................................................................................ 88
  Meter Reply Mail ....................................................................................................................... 91
8 POSTAGE METHODS ....................................................................................... 97
  Postage Stamps ......................................................................................................................... 97
  Permit Imprint (Indicia) ........................................................................................................... 100
  Postage Meters & PC Postage Products.................................................................................. 102
9 PRIVATE EXPRESS STATUTES ........................................................................ 113
  Private Express Statutes (PES) ................................................................................................. 113
10 HISTORY OF THE POSTAL SERVICE® ............................................................ 117
  The Postal Service® Begins ...................................................................................................... 117
  The Pony Express..................................................................................................................... 118
  ZIP Code™ ................................................................................................................................ 118
  Postal Reorganization Act ....................................................................................................... 119
  The Postal Service® Board of Governors ................................................................................. 120
  Transformation Plan ................................................................................................................ 121
  The Postal Accountability and Enhancement Act ................................................................... 122
  Significant Years in U.S. Postal History .................................................................................... 124
  Mailing Industry Resource Publications .................................................................................. 124
11 POSTAL KNOWLEDGE – REVIEW QUESTIONS .............................................. 125
1 POSTAL PROCESSING OVERVIEW
SHAPED-BASED INITIATIVE
POSTAL OPERATIONS
CLASSES OF MAIL

Shaped-Based Initiative
A new Postal Service approach to pricing which reshaped the future of mail was
implemented on May 14, 2007. The new pricing system is based on the shape of mail,
not just the weight, reflecting the fact that the costs for handling letters, large envelopes
and packages differs.

Shaped-based pricing, in effect, creates a more flexible rate system by giving mailers
the opportunity to obtain lower rates if they find ways to configure their mail into shapes
that reduce handling costs for the Postal Service and that help keep rates affordable for
everyone.

The shape of the mailpiece plays a major role in postage pricing. The new price
structure recognizes that each of these mail shapes has substantially different
processing costs so each mail shape now has separate prices.

Letter-size mailpieces that weigh 3.5 ounces or less that do not meet aspect ratio
standards, or have any other nonmachinable characteristics, are subject to the
nonmachinable surcharge for First-Class Mail® or nonmachinable letter-size pricing for
Standard Mail®. Letters that weigh more than 3.5 ounces, or exceed one or more of the
maximum letter dimensions, regardless of weight, are subject to the rates for flats.
Similarly, mailpieces that exceed any one of the dimensions for a flat are subject to the
rates for parcels. The weight limit for First-Class Mail® flats and parcels is 13 ounces
and 15.999 ounces for Standard Mail® flats and parcels.

Another change relative to shape-based pricing was a reduction in the additional ounce
rate for First-Class Mail®. As shape becomes more important in determining the price,
less emphasis is placed on weight.

If the contents intended for a large envelope can be folded and placed into a letter-size
envelope, the mailer can reduce postage. On the other hand, a mailer may determine
that using a large envelope will enhance the perceived value of the enclosed message
to the addressee and choose to pay the higher price. Likewise, some items traditionally
prepared and mailed as a package may be reconfigured and placed in a large
(expansion) envelope, saving the mailer on the first ounce. When mailers choose to
mail more efficient shapes, the Postal Service costs are lower and the savings can be
passed on to the mailers through lower prices. The mailer has a choice as to the value
of the shape of the mailpiece, versus the cost of preparing and mailing it.

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Machinable letters are automation-compatible letters not barcoded by the mailer but
easily processed and barcoded on USPS® processing equipment. To ensure efficient
processing of commercial flat-size mail, all flats must be rectangular in shape, which
includes square mailpieces, uniform in thickness, flexible and meet deflection criteria.
Mailpieces that do not meet these criteria are subject to the rates for parcels. (Note: the
physical standards for automation flats are based on the Automated Flat Sorting
Machine-AFSM 100.)



Postal Operations
First-Class Mail® from collection boxes and carrier pickup is processed through the
Advanced Facing & Canceling Machine (FCM). This is a process where mail is
separated by sizes, sorted and oriented to face the same direction so it can be
processed on postal automation equipment.

It is then processed through different channels based on mail classification and size. A
Facing Identification Mark (FIM) used on reply mail helps separate the mail by type.
Certified Mail™ is found and culled from the primary mail stream by the special taggent
on the label. Its number is then recorded. Stamped and metered mail has phosphorus in
the ink of the impression and stamp that help to face the mail.

Stamped mail needs to be completely cancelled, so the stamp cannot be reused and
the date of entry into the mail stream shows on the mailpiece. Metered Mail is
sometimes sprayed to indicate the date of entry into the mail stream although it is not
required since the mailer is supposed to only print the actual date the mail is entered
into the mail stream. This varies from Post Office to Post Office. Newer digital mailing
systems do not allow the mailer to back date the mail.

The newer Advanced FCMs perform the same function as the MultiLine Optical Carrier
Reader (MLOCR) reading the address on the mailpiece and spraying the Delivery Point
Bar Code (DPBC) in the bar code clear zone. If it can't read it, it sprays an orange
barcode on the reverse and sends the information off to a remote encoding station
where human operators read the mail and key in the correct destination information.

This is then tied to that orange bar code so the next piece of equipment to read it will
spray the correct DPBC in the bar code clear zone. If the bar code clear zone is not
available to have the DPBC sprayed then it goes to a special machine called a LIM that
applies a label and then sprays the DPBC on the label.

From there the mail is put through a number of passes on a barcode sorter, arranging
the mail in increasingly finer sortation levels with each pass until the mail is in carrier
route delivery sequence. In between these passes, it is transported to various
processing centers and commingled with other mail on similar journeys.

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Automation-rate First-Class Mail® and Standard Mail® skips most of the steps since it is
entered thru the Business Mail Entry Unit (BMEU). The mail is already separated by
size and processing category and does not need to be cancelled. It is 100% DPBC and
is put directly on the barcode sorters. Nonautomation mail may require extra steps in
order to process and that is why it costs more to send.

Letters and flats are processed on different types of machines. It costs the Post Office™
less to process letter mail because the equipment is significantly faster and takes up
much less floor space. The bar codes allow postal equipment to process mail to Carrier
Route Walk Sequence thus saving time and allowing the carrier to spend his entire day
delivering mail instead of manually ―casing‖ it.

Flat Processing machines were updated to eliminate the need for manual keying of the
destination ZIP Code™, and the roll-out of the Flat Sequence Sorter (FSS) will further
automate this process by sorting flats into carrier sequence.

Small parcels have also been automated and there are savings for the mailers who
presort and barcode them.

Rates are determined by the following factors:
   Classification of the mail
   Physical size, shape and weight of the mailpieces
   Contents of the mailpieces
   The postal equipment the mailpiece is processed on

Each of these factors is interdependent on the other and plays a role in determining the
rates that will be applied to the mailing.




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Classes of Mail
The United States Postal Service (USPS) divides mail into different services or classes
of mail. Each class of mail has different standards, service levels, features, pricing and
requirements. For most mailings, the contents, postage, shape and size will determine
the class of mail that is selected. The maximum weight of any mailed item is 70 pounds.

Determination of mail classification depends on the contents, size, weight, speed of
delivery and price you are willing to pay. Almost anything that is mailable may be mailed
using either Express Mail® or Priority Mail® service. What you gain in delivery speed
however, you pay in higher postage. The following USPS® chart will help you select the
appropriate mail classification for your mailing.

 Content                                  Discount             Speed (1)   Postage      Service
                                          Qualifiers
 The following materials must be mailed      13 ounces or      1–3 days    $$           First-
 as First- Class Mail:                       less                                       Class
     bills and checks                        500 or more                                Mail®
     statements of account                   pieces per
     handwritten materials                   mailing
     typewritten materials
     personal correspondence
 Generally, Standard Mail can be mailed
 at First-Class Mail prices.
 Materials such as circulars,                less than 16      (2)         $            Standard
 advertisements, solicitations,              ounces            2–9 days                 Mail®
 newsletters, merchandise and printed        200 or more
 matter not required to be mailed as         pieces or 50
 First-Class Mail or Periodicals             pounds or more
                                             per mailing
 Authorized publications such as:            1 or more         (2)         $            Periodical
     newspapers                              pieces per        1-7 days
     newsletters                             mailing
     magazines
 Permanently bound printed materials         15 lbs or less    (2)         $            Bound
 such as:                                    300 or more       2–9 days                 Printed
     advertising                             pieces/mailing                             Matter
     promotional material                    (50+ pieces for
     directory material                      barcode
     editorial material                      discount only)
 Materials such as:                          300 or more       (2)                      Media
     books                                   pieces per        2–9 days                 Mail
     printed music                           mailing
     videotapes (recorded)
     CD-ROMs (recorded)
     computer-readable media
     (recorded)
     printed educational charts
                                                                     (1) Estimated time of delivery
                                                                      (2) Except Alaska and Hawaii

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Express Mail® Service
Express Mail® is a money-back guaranteed overnight 2-day service that includes
tracking, proof of delivery, and insurance up to $100. Express Mail® is delivered 365
days a year. A premium fee may be charged for Sunday or holiday delivery. Mailers
may call 1-800-222-1811 or visit www.USPS.com for delivery information between
specific ZIP Codes™.

For mailers' convenience, Express Mail® envelopes and boxes are available from local
Post Offices™ or at www.USPS.com at no additional cost. Customized preprinted labels
are also available by contacting your local Post Office™. Matter mailed in USPS®-
provided Express Mail® packaging is subject to Express Mail® rates regardless of how
the packaging is reconfigured or how markings may be obliterated. Express Mail®
International Service is available between the United States and more than 190 foreign
countries.

Express Mail® tracking is available on the USPS® Web site at www.USPS.com

Options: Express Mail® Next Day/Second Day Services provide guaranteed overnight
and second day service to designated delivery areas and Post Offices. Hold for pickup
is a Post Office-to-Post Office option. The sender must notify addressee for pickup.

Express Mail® Military Service is available between the United States and designated
APOs and FPOs. Shipments are delivered in 2 to 3 days to more than 300 locations in
Europe, Asia, and Panama. Sunday and Holiday delivery is available for a premium fee.

Physical Standards: Maximum weight: 70 pounds. Maximum length and girth: 108
inches. Weight and size limitations vary for international and military service.

Rates and Fees: Except for the Express Mail flat rate envelope, Express Mail prices
are based on weight and zone. Items are charged the half pound price for weights up to
one-half pound. Items over a half pound are rounded up to the next whole pound.

Commercial Based Pricing:
Express Mail commercial base prices are less than Express Mail retail prices.

These prices apply to:
   Customers who use an Express Mail Corporate Account (EMCA), including Federal
   Agency Accounts.
   Click-n-Ship customers.
   Registered end-users of USPS-approved PC Postage providers when using a
   qualifying shipping label managed by the PC Postage system used.
   Customers who pay postage using information-based indicia (IBI) postage meters
   when using an Express Mail shipping label.

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   Customers using USPS-approved IBI postage meters that print the IBI with the
   appropriate price marking ("Commercial Base Price," "Commercial Base Pricing," or
   "ComBasPrice") and who electronically transmit transactional data to the USPS and
   use an approved Express Mail shipping label.
   Customers who pay postage with a permit imprint using the Electronic Verification
   System (eVS) program to document and pay postage.

Content Standards: First-Class Mail® (including Priority Mail® or Express Mail®) is
required for personal correspondence, handwritten or typewritten material and bills or
statements of account. It may also be used for any mailable item.

Extra Services: Return receipt service is available. Insurance against loss, damage, or
rifling is included at no extra cost up to $100. Additional merchandise insurance may be
available up to $5,000, depending on the value and nature of the item. Claims must be
filed within 90 days of the date of mailing.

Waiver of Signature: mailers may instruct the USPS® to deliver Express Mail®
packages without obtaining the addressee's signature by signing the waiver on the
Express Mail® label. Waiver of signature is not available for COD Express Mail®
Military Service, or if additional insurance is purchased.

Postage Payment and Documentation: Express Mail® may be paid by adhesive
stamps, postage meter or Express Mail® Corporate Account.

Deposit: Express Mail® Next Day and Second Day items may be mailed at Post
Offices™, stations and branches; dropped into Express Mail® collection boxes; handed
to carriers; or picked up by the USPS®. Acceptance and collection information may be
obtained by calling 1-800-222-1811 or contacting your local postmaster.

Pickup on demand service is available for flat fee regardless of the number of pieces.
Service and information is available by calling 1-800-222-1811 or at www.USPS.com
for all Express Mail®, Priority Mail®, or Parcel Post® picked up at same time.




                                          1-6
Priority Mail® Service
Except for Priority Mail® flat-rate envelopes and boxes, postage is determined by
weight, zone and sometimes even size. Balloon pricing may apply to packages destined
to zones 1 - 4 measuring greater than 84 inches in combined length and girth.
Dimensional weight rating may apply to packages destined to zones 5 - 8 measuring
greater than one cubic foot.

Commercial Base Prices are available for:
  Click-n-Ship customers.
  Registered end-users of USPS-approved PC Postage products when using a
  qualifying shipping label managed by the PC Postage system used.
  Customers using permit imprint when a postal routing barcode matching the
  destination ZIP Code is on the mailpiece Flat-shaped mailpieces with permit imprints
  may bear a POSTNET or Intelligent Mail barcode instead of the postal routing
  barcode.
  Priority Mail Open and Distribute customers using permit imprint.
  Customers who pay postage using information-based indicia (IBI) postage meters in
  conjunction with an approved shipping label that bears a confirmation services
  barcode with a postal routing code.
  Customers using USPS-approved IBI postage meters that print the IBI with the
  appropriate price marking ("Commercial Base Price," "Commercial Base Pricing," or
  "ComBasPrice") and electronically transmit transactional data to the USPS.
  Permit holders using Merchandise Return Service (MRS) for Priority Mail mailpieces
  when all MRS requirements are met.

The Postal Service offers an optional "no fee" electronic Delivery Confirmation™
service, available through Click-N-Ship®, some vendor-provided mailing systems and
for manifest mailing systems (MMS) mailers.

Think shape and size for the best value; here‘s an easy way to look at it: For the lowest
postage rate possible, use the smallest envelope or box possible.

For Envelopes: As an example, a letter mailed in a 6" x 9" envelope costs less than a 9‖
x 12‖ envelope and is considered the ―preferred‖ envelope when converting from a large
envelope to smaller one.




                                          1-7
For Boxes: Don‘t ship small, lightweight items in large boxes– practice ―right-size
shipping.‖ This helps you avoid possible surcharges for oversized packaging. Or you
can simply use Postal Service™ packaging that comes in a range of sizes to meet your
shipping needs.




Dimensional-weight pricing does not apply to Priority Mail® Open and Distribute
(formerly Priority Mail® Drop Shipment) mailings of other classes of mail when enclosed
in USPS®-supplied containers.

Priority Mail® containers, including the Priority Mail® Flat Rate Boxes, available at Post
Offices and USPS®.com are not based on weight and zone but are charged a flat rate
regardless of actual weight (up to 70 pounds) of the mailpiece and domestic destination.




                                           1-8
Express Mail® and Priority Mail® Open & Distribute Service
The Open and Distribute feature of Express Mail® and Priority Mail® service allows
customers to expedite the transportation of shipments of other classes of mail to
destination facilities using Express Mail or Priority Mail service. Customers have the
option to secure their trays in either sacks or Open and Distribute tray boxes, which are
provided free of charge by the Postal Service to all Open and Distribute customers.
Authorization: With the exception of Zoned Rate Matter, no authorization is required
for Express Mail® or Priority Mail® Open & Distribute Service, but the mailer must
obtain necessary permits, licenses, or authorizations for the enclosed mail or postage
payment method used and must pay any annual mailing fee applicable to the enclosed
mail at the Post Office™ where the Express Mail® or Priority Mail® Open & Distribute
Service is mailed.
Basis of Rate: Express Mail® or Priority Mail® postage must be paid on the weight of
the entire contents of the Express Mail® pouch or Priority Mail® sack. The tare weight
of the pouch or sack is not included in this weight.
Zone rates for Priority Mail® are computed from the accepting Post Office™ to the
destination Post Office™ for the Open & Distribute Service (not the destination Post
Office™ for the enclosed mail).
Eligibility Standards: The Express Mail® or Priority Mail® shipment and the enclosed
mail must meet all corresponding eligibility and preparation standards such as:
   Open and Distribute containers must remain unsealed until the business mail entry
   verification and acceptance of the contents have been completed, unless accepted
   under an alternate procedure authorized by Business Mailer Support.
   PS Form 3152, Confirmation Services Certification, must be submitted with each
   mailing.
   Containers must not exceed the 70-pound weight limit.
   The mail enclosed in an Express Mail® or Priority Mail® pouch must consist either
   entirely of single-piece rate matter or entirely of presorted matter that is part of the
   same mailing, unless an exception is granted by the PCSC.
   Customers must use USPS-supplied facsimile Tags 190 and 161. The tags help
   ensure visibility of the product for accurate and efficient processing of Open and
   Distribute containers.

Calculating Payment for Enclosed Mail: Postage and fees for the mail enclosed must
be prepaid under the applicable standards. When the enclosed mail is zone-rated, the
zone is computed from the postal facility where the Express Mail® or Priority Mail®
Open & Distribute Service destinates. Discounts are available if volume and preparation
standards are met.




                                           1-9
Payment Method: Postage on the enclosed mail may be paid with any method
permitted for that mail class. Express Mail® postage must be affixed with adhesive
stamps or meter stamps. Priority Mail® postage must be affixed to or hand-stamped on
green Tag 161, pink Tag 190, to the Open and Distribute tray box, or be part of the
address label.

Priority Mail® may also be paid with a permit imprint through a manifest mailing system,
optional procedure mailing system, or alternate mailing system. If a permit imprint is
used for Priority Mail® postage, the permit imprint must be affixed to or hand-stamped
on Tag.

Open & Distribute Service – Express Mail®
Express Mail® Open & Distribute Service (Express Mail® Custom Designed Service,
Express Mail® Next Day Service, or Express Mail® Second Day Service) expedites
movement of any other class of mail between domestic postal facilities. The open &
distribute service receives the Express Mail® service selected from the origin Post
Office™ to the destination Post Office™ of the shipment, where the enclosed mail is
processed and provided the appropriate service from that Post Office™ to its
destination. This service reduces transportation time and expedites delivery of enclosed
mail.
Service Objectives: The service guarantee for an Express Mail® shipment using Open
& Distribute Service procedures ends on receipt at the postal facility where the shipment
is destined.
Basic Preparation Standards: The mailer must present matter prepared as Express
Mail® Open & Distribute Service in Express Mail® pouches. The proper mailing label
must be placed in an EP-13 envelope and attached to each Express Mail® pouch.
Deposit Site: An Express Mail® Open & Distribute Service must be made at a postal
facility designated by the postmaster to accept both the class of mail enclosed and
Express Mail®. The shipment must be prepared and presented to the business mail
entry unit (BMEU) of the origin Post Office™.
Acceptance Time: An Express Mail® Open & Distribute Service must be presented to
the BMEU with enough time for acceptance, processing, and dispatch to the Express
Mail® unit before the cutoff time for Express Mail®.
Extra Services: No extra services can be added to the Express Mail® portion of the
Open & Distribute Service.




                                          1-10
Open & Distribute Service – Priority Mail®
Priority Mail® Open & Distribute Service expedites movement of any other class or
subclass of mail (except Express Mail®) between domestic postal facilities. The Open &
Distribute Service receives Priority Mail® service from the origin Post Office™ to the
destination Post Office™ of the shipment, where the enclosed mail is processed and
provided the appropriate service from that Post Office™ to its destination. This service
reduces transportation time and expedites delivery of enclosed mail.
Basic Preparation Standards: Mail enclosed in an Open & Distribute Service must
meet the eligibility and preparation standards for its class and rate and for any extra
services used. Classes of mail that may be included in a Priority Mail® Open &
Distribute Service are retail First-Class Mail®, presorted First-Class Mail®, Periodicals,
and Standard Mail®. Mail requiring cancellation may not be drop shipped.

Acceptable containers for expedited transport are as follows:
   An Express Mail® Open & Distribute Service must be contained in a blue and
   orange Express Mail® pouch, except that Customized Market Mailpieces may be
   contained in USPS®-provided Express Mail® envelopes and cartons or in any
   properly labeled container supplied by the mailer.

   A Priority Mail Open and Distribute shipment must be contained in either a USPS-
   approved sack using Tag 161 or Tag 190 or a USPS-provided Priority Mail Open
   and Distribute tray box (Tag 161 and 190 are not required for tray boxes, only the
   4x6 address label should be applied).

Tag 161 and Tag 190 provide a place to affix Priority Mail postage and the address
label for the destination facility and must be attached to each Priority Mail sack, in
addition to the Priority Mail sack label, or container to identify it as a Priority Mail Open
and Distribute shipment.

In addition to Tag 161 and Tag 190, USPS®-supplied cartons and envelopes and
mailer-supplied containers used for Express Mail® or Priority Mail® Open & Distribute
Service must be addressed "POSTMASTER—OPEN AND DISTRIBUTE"; followed by
street address (mailing address) of the facility on the next line; and city, state, and ZIP
Code™ on the last line.




                                            1-11
Extra Services: No extra services may be added to the Priority Mail® segment.

Mail enclosed may receive only the following services:
   First-Class Mail® pieces may be sent with Certified Mail™ service or special
   handing or, for First-Class Mail® parcels only, electronic option Delivery
   Confirmation™ service or electronic option Signature Confirmation service.
   Standard Mail® pieces subject to the residual shape surcharge (except Customized
   Market
   Mail™ pieces) may be sent with electronic option Delivery Confirmation® service.
   Package Services mail may be sent with special handling or, for Package Services
   parcels only, electronic option Delivery Confirmation® service or electronic option
   Signature Confirmation™ service.

Deposit Site: A Priority Mail® Open & Distribute Service must be prepared according to
postal service guidelines and presented to the business mail entry unit (BMEU)
authorized by the postmaster to accept the class of mail enclosed.
Acceptance Time: A Priority Mail® Open & Distribute Service must be presented to the
BMEU with enough time for acceptance, processing, and dispatch before the critical
dispatch time for Priority Mail®.




                                        1-12
First-Class Mail® Service
First-Class Mail prices are the same no matter what the domestic destination and the
price also includes forwarding and return services. Postage on First-Class Mail is
calculated by the ounce. The maximum weight of a First-Class™ letter is 3.5 ounces
and the maximum weight of a First-Class™ large envelope/flat or package/parcel is 13
ounces. First-Class™ mailpieces over 13 ounces become Priority Mail®.

Mailed items required to be sent as First-Class Mail® or Priority Mail® include:
  Handwritten or typewritten material
  Bills, statements of account or invoices, and credit cards
  Personal and personalized business correspondence
  All matter sealed or otherwise closed against inspection

First-Class Mail® pricing includes:
    Postcards
    Letters
    Large Envelopes/Flats weighing 13 ounces or less
    Packages/Parcels weighing 13 ounces or less
First-Class Mail letter-size pieces must meet certain physical requirements or be subject
to surcharges or shape-based pricing. A letter-size mailpiece that is square, rigid or
meets at least one nonmachinable characteristic will be subject to a surcharge and flat
sized mailpieces that are rigid, non-rectangular or have uneven thickness will be
charged parcel rates.
Many smaller and beginning mailers use First-Class Mail® for letters and postcards
because mailings at single piece rates do not require a special payment method,
mailing permit, and the extra time to presort the mail and prepare it for acceptance at a
Business Mail Entry Unit (BMEU) of the USPS. It is simple and quick to place a stamp
on the mailpiece and drop it in any collection box. For larger mailings (500 pieces or
more), the USPS offers workshare discounts with rates for preparing the mailing for the
USPS before bringing it to the BMEU.
Bulk Mail: The term "bulk mail" refers to larger quantities of mail prepared for mailing at
reduced postage. In Business Mail 101, the term "bulk mail" means commercial First-
Class Mail and advertising mail (called "Standard Mail" by the Postal Service).
Commercial prices are available for other classes of mail, too. The Postal Service uses
the terms "bulk" and "presorted" interchangeably.
Bulk prices are discounted from "single-piece". "Single-piece" means that you pay the
full postage price; when you put a stamp on a letter, you're paying the single-piece
postage. Many mailers pay single-piece postage even though they are doing large
mailings. Why? Because they don‘t want to do any extra preparation work—they don‘t
have the time, or it‘s just not cost-effective for their business.

                                           1-13
Periodicals
The Periodicals class of mail is designed for newspapers, magazines and other
periodical publications whose primary purpose if transmitting information to an
established list of subscribers or requesters.

To become a periodicals mailer, one must apply and become authorized to mail using
these rates.

For publications to quality, they must be published at regular intervals; at least four
times per year from a known office of publication and consist of printed sheets.

There are specific standards for circulation, record keeping, and advertising limits.
There are also special rates for Nonprofit, Classroom and Science-of-Agriculture types
of periodicals.

Periodicals have no minimum weight and can weigh no more than 70 pounds. Rates are
based on pounds, number of pieces, advertising content, shape and containers.
Periodicals mail is subject to postal inspection.

Meters, stamps and permit imprints are not used to evidence postage for Periodicals.
Rather, Periodicals must contain an ID statement.




                                         1-14
Standard Mail® Service
Standard Mail® is mail matter that is not required to be mailed as First-Class Mail® or
Periodicals and must weigh less than 16 ounces. A Standard Mail® mailing must have
at least 200 pieces or 50 pounds within the same processing category, i.e., all letters, all
flats or all parcels. Standard Mail is only for domestic mail and there are no single-piece
prices for Standard Mail®. All Standard Mail is considered Commercial discounted mail.

There are specific guidelines regarding how much personalization can be on the
mailpiece and still qualify as Standard Mail®.

Personal information may not be included in a Standard Mail mailpiece unless all of the
following conditions are met:
       The mailpiece contains explicit advertising for a product or service for sale or
       lease or an explicit solicitation for a donation.
       All of the personal information is directly related to the advertising or solicitation.
       The exclusive reason for inclusion of all of the personal information is to support
       the advertising or solicitation in the mailpiece.

Mailers use Standard Mail® to send out:
       Printed matter, flyers, circulars and advertising
       Newsletters, bulletins and catalogs
       Small parcels

Rates and Fees:
   Standard Mail® has pricing available for letters, flats and parcels.
   Postcards are mailed as letters or flats if sent Standard Mail®.
   Postage for Standard Mail® pieces weighing 3.3 ounces or less is determined by the
   piece charge.
   Standard Mail® weighing over 3.3 ounces is subject to a per-pound and per-piece
   charge.
Extra Services: There are extra services that can be used with Standard Mail® parcels
such as electronic Delivery Confirmation, bulk insurance and Return Receipt for
merchandise. Standard Mail® can only be forwarded or returned if the mailpiece
includes and ancillary service endorsement which may result in additional fees or
postage. Standard Mail® is subject, or ―open‖ to postal inspection.




                                            1-15
Standard Mail Parcels and Not Flat-Machinable (NFM) Pieces

Physical Standards: Each piece must weigh less than 16 ounces.
Not Flat-Machinable Pieces: Categorize Standard Mail with the following
characteristics as Not Flat-Machinable pieces (unless mailed as parcels)

Not Flat-Machinable pieces are rigid or are not uniformly thick, with the following
dimensions:
      At least 4‖ high, but not more than 12‖ high.
      At least 4‖ long, but not more than 15-3/4‖ long.
      At least 0.009 thick, but not more than 1-1/4 ― thick.
      (Pieces less than 5” long must be over ¼” thick.)
Flexible pieces at least 4― high, but not more than 12‖ high, with either of the following
dimensions:
       Over 15 inches long, but not more than 15-3/4 inches long.
       Over 3/4 inches thick, but not more than 1-1/4 inches thick.

Undeliverable Standard Mail®: Undeliverable-as-addressed (UAA) mail is forwarded,
returned to sender, or treated as dead mail as authorized for the particular mail class. A
mailer endorsement is used to instruct The Postal Service® regarding the mailpiece's
appropriate disposition upon determining that it is UAA. Standard Mail® with proper
endorsements will allow the mailpiece to be delivered and reduce the UAA volumes. If
the mailer does not receive returned mail with the endorsement ―Returned to Sender‖
this indicates that the mailpiece was delivered, it maybe delivered, it was destroyed, or it
was lost in the postal system. Proper addressing will allow mailers to save money.

Standard Mail® –Nonprofit: Nonprofit mailers who qualify can mail at reduced rates.
Only political committees, voting registration officials, and organizations that meet
specific standards for qualified nonprofit organizations and that have received specific
authorization from the USPS® may mail eligible matter at the Nonprofit Standard Mail®
rates.

Except for mailings deposited under the plant-verified Open & Distribute Service
program, a separate authorization is required at each Post Office™ where nonprofit rate
mailings are deposited. Pieces mailed at the Nonprofit Standard Mail® rates must meet
the general standards for Standard Mail® for letters, for flats, for parcels and the
standards specific to any other discount or rate claimed. Nonprofit mailings are the only
class of mail that continues to receive congressional appropriations to subsidize
postage.




                                           1-16
Qualified Organization: organization is not organized for profit, and none of its net
income inures to the benefit of any private stockholder or individual.

Types of organizations that may qualify:
     Religious
     Educational
     Scientific
     Philanthropic
     Agricultural
     Labor
     Veterans
     Fraternal


Ineligible nonprofit organization:
       Service
       Social
       Hobby clubs
       Citizens' and civic improvement associations
       State, county, and municipal governments

Eligible and Ineligible Matter: Nonprofit rates not permitted for mailing promotional
material for credit cards, insurance policies, and travel arrangements. Authorized
organizations may not let any other person or organization use their authorizations to
mail at Nonprofit Standard Mail® rates.

Cooperative Mailings: Mailable at Nonprofit Standard Mail® rates only if each
cooperating organization is individually authorized to mail at Nonprofit Standard Mail®
rates where the mailing is deposited.




                                         1-17
Package Services
Package Services is a class of mail primarily intended for merchandise, catalogs and
other printed material.

It is not an expedited service and there are four subclasses of mail in Package Services:

1. Parcel Post®

2. Media Mail®

3. Library Mail

4. Bound Printed Matter

Each subclass is suited for a type of mail and offers different levels of service and
requirements as far as advertising and content.

Before mailing merchandise, compare the costs and service between Priority Mail® and
Packages Services. In some cases, the postage cost is nearly the same but Priority
Mail® is faster and includes free forward and return services for undeliverable mail.

There is no minimum weight to be mailed using a package service and the maximum
weight is 70 pounds for Parcel Post®, Media Mail® and Library Mail service. Bound
Printed Matter has a maximum weight of 15 pounds per mailpiece.

Insurance, Delivery Confirmation and other extra services can be added to Package
Services mail for a fee.
All subclasses of Packages Services mail are subject or ―open‖ to postal inspection.

Package Services does not include free forwarding and return for undeliverable mail but
these services can be added by using ancillary service endorsements.

Bound Printed Matter sent without an endorsement that is refused or undeliverable will
be disposed of at the local post office. The other Package Services will be returned to
sender postage-due.

Parcel Post® is Package Services matter not mailed as Bound Printed Matter, Media
Mail®, or Library Mail. Any Package Services matter may be mailed at Parcel Post®

Parcel Select® is used by commercial mailers for merchandise, books, circulars,
catalogs and other printed matter. There are bulk pricing, destination entry and barcode
discounts for large volume mailers.

                                          1-18
Media Mail® is generally used for books or at least eight pages, film, printed music,
printed test materials, sound recordings, play scripts, printed educational charts, loose
leaf pages and binders consisting of medical information and computer readable media.
There are advertising restrictions when using Media Mail®. Postage rates are based on
pounds. There are potential discounts for presorted mailings of 300 or more pieces.
There is also a barcode discount for machinable parcel-size mailings consisting of at
least 50 pieces.

Library Mail can be used by qualifying institutions such as libraries, universities, zoos,
research institutions and nonprofit organizations to mail educational and research
materials. Postage rates are based on pounds. There are potential discounts for
presorted mailings of 300 or more pieces. There is also a barcode discount for
machinable parcel-size mailings consisting of at least 50 pieces.

Bound Printed Matter must: be paid by permit imprint, and:
  consist entirely or a combination of advertising, promotional, directory or educational
  material.
  be bound securely by permanent fastenings such as staples, spiral binding, glue or
  stitching. (Loose leaf binders are not considered permanent)
  consist of sheets of which at least 90% are imprinted by any process other than
  handwriting or typewriting with words, letters, characters, figures or images or a
  combination.
  cannot be personal correspondence.
  cannot be stationery, such as blank pads of printed forms.




                                          1-19
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               1-20
2 PROCESSING METHODS & CATEGORIES
MANUAL AND AUTOMATED PROCESSING METHODS
USPS PROCESSING EQUIPMENT
AUTOMATION LETTERS AND CARDS

Manual and Automated Processing Methods

The Postal Service processes mail through three types of operations:

1. Machinable (or automation compatible) operations allow nonbarcoded mailpieces to
   be processed on machines.

2. Nonmachinable operations require an employee to read the address on each piece
   of mail and then sort the mail into "pigeon holes" in a letter case.

3. Automation mail is machinable mail that is barcoded and received barcoded
   discounts.

If your presorted mail is not compatible with Postal Service automation standards, it has
to be processed manually. This is time-consuming, costly, and likely to reduce the
worksharing discounts you might otherwise be entitled to on mail entered at a business
mail entry unit (BMEU).

The Postal Service handles mailpieces differently according to their size.

The mailpiece size determines which sorting equipment will be used to process your
mail.

The type of processing determines potential discounts.




                                          2-21
USPS Processing Equipment
The Postal Service® uses a variety of automated equipment. The most efficient and
accurate mail processing results from using automated, high-speed, computerized mail
sorting and processing equipment.

Automated Letter Processing Equipment

The Postal Service® uses two basic types of automated equipment to process letter-
size mail:

1. MultiLine Optical Character Reader

2. Barcode Sorter

MultiLine Optical Character Reader (MLOCR): The MLOCR scans the address block
on each letter-size mailpiece to determine the ZIP+4® code and the delivery point
information, and verifies the address information against an internal database.

To locate the address, the MLOCR must be able to scan all the elements clearly. That's
why a complete address and "good" print quality are so important. The MLOCR
converts that information into a POSTNET™ barcode. The MLOCR then prints the
barcode in the lower right corner (barcode clear zone) of the mailpiece and performs an
initial sortation. The barcode is then used for further sortation. From that point on, the
mailpiece is sorted by high-speed barcode sorters (BCSs) that read and interpret the
barcode.

MLOCRs are capable of reading, barcoding, and sorting mail at a rate of 40,000 pieces
per hour—about 11 pieces per second. These machines are used not only by the US
Postal Service, but also by large companies and collateral mailing agents like presort
bureaus and letter shops.

If you accurately barcode your letter-size mailpieces, they can skip the entire MLOCR
process and go straight to a barcode sorter. Mail in this category can receive the
maximum postage discount.

Barcode Sorter: A barcode sorter (BCS) "reads" POSTNET™ and Intelligent Mail®
barcodes on letter-size pieces and sorts the mail accordingly. This machine doesn't
read addresses, so it will miss sort a piece if the customer has applied an incorrect
barcode. The BCS can read and sort 40,000 pieces per hour as well. With the advent
of wide area barcode readers (WABCRs), a BCS can find a barcode almost anywhere
on the face of a letter-size mailpiece, including the address block area and the barcode
clear zone.


                                          2-22
This allows mailers to apply barcodes so they can qualify for lower rates and take
advantage of faster, more efficient mail processing. But, for other reasons, the barcode
must always be printed within 4 inches of the bottom edge of the piece—either as part
of the address block or within the barcode clear zone in the lower right corner. When
buying any ZIP+4® matching software, make sure that the product bears The Postal
Service® certification seal. The software must be Coding Accuracy Support System
(CASS™) certified.

Postage Discounts
The Postal Service® offers a variety of postage discounts for correctly prepared
automation-compatible mailings. You can qualify for automation rates for delivery point
POSTNET™ or Intelligent Mail® (IM™ BC) barcoded mailpieces prepared and
submitted according to postal standards. Your local Post Office can help you or refer
you to another source for information. This is an excellent way to incorporate
―workshare‖ incentives and save money!

Mail Evaluation Readability Lookup Instrument (MERLIN®): MERLIN® is a tool that
is used by the U.S. Postal Service™ to assist with the acceptance of business mail. All
business mailings presented for acceptance must be verified to Confirm® their eligibility
for reduced postage rates. When entering bulk mailing at the BMEU, mailers will have
their mail run through the verification process.
Verifications are separated into two categories:

1. Initial review: Business mail entry clerks inspect a mailing for fees, funds, and
   eligibility.

2. In-depth review: MERLIN® uses a sampling procedure to produce reports for
   verification. It automates the previous manual acceptance process for presorted
   First-Class Mail®, Standard Mail® and Periodicals to qualify for workshare
   discounts.
MERLIN® processes letters, postcards, and flat-size pieces. MERLIN® verifies First-
Class Mail®, Standard Mail®, and Periodicals mail against the standards set in the
Domestic Mail Manual (DMM®) for:
   Postage discounts
   Sorting
   Barcodes
   Piece counts

Barcode Specifications
Barcoding your mail affects mailpiece design. Because there are no OCR readability
standards, you have more latitude in selecting colors, type styles, and the location of the
address if you barcode your mail. When an automation rate mailing—barcoded
according to postal standards—is processed directly on BCSs, the mailing doesn't need
to meet the standards for MLOCR readability.
                                          2-23
If you aren't able to barcode your mailpieces, they should meet all MLOCR readability
standards. Meeting these standards will enable a mailing agent (such as a presort
bureau or letter shop) to barcode your mail using an MLOCR and to be sure that the
read rates will be high.
Mailings of letter-size pieces that receive a barcode discount require the customer to
barcode 100 percent of the pieces with a delivery point barcode.




                                        2-24
Physical Standards for Commercial Letters and Postcards
The Postal Service classifies letters and cards into one of three categories: machinable,
nonmachinable, and automation. For the purposes of determining mailability or
machinability, the length for letters and cards is the dimension parallel to the address as
read.




Machinable Letters and Cards:
  Letters and cards having an accurate address and that can be processed on Postal
  Service equipment is ―machinable‖ and eligible for ―presort‖ prices. Machinable
  mailpieces must meet specific standards, including size, shape, and weight.
  Machinable letters cannot have any nonmachinable characteristics.
  Maximum weight:
     o First-Class Mail and Standard Mail machinable letters: 3.3 ounces
     o Periodicals letters: 3.5 ounces.




                                           2-25
Nonmachinable Letters:
Presorted First-Class Mail® letters are subject to a nonmachinable surcharge if they
have nonmachinable characteristics. (Note: nonmachinable characteristics do not apply
to pieces mailed at card prices.)
    Standard Mail® letters weighing 3.3 ounces or less and having one or more
    nonmachinable characteristics are subject to nonmachinable letter prices
    Standard Mail letters that weigh more than 3.3 ounces and are prepared as
    nonmachinable letters are mailable at Not Flat-Machinable prices
    Maximum weight:
          o First-Class Mail and Periodicals 3.5 ounces
          o Standard Mail 3.3 ounces.

Nonmachinable Criteria:
A letter-size piece is nonmachinable if it has one or more of the following
characteristics:
      Has an aspect ratio (length divided by height) of less than 1.3 or more than 2.5.
      Is polybagged, polywrapped, enclosed in any plastic material, or has an exterior
      surface made of a material that is not paper. Windows in envelopes made of
      paper do not make mailpieces nonmachinable. Attachments allowable under
      applicable eligibility standards do not make mailpieces nonmachinable.
      Contains clasps, strings, buttons, or similar closure devices.
      Contains items such as pens, pencils, keys, or coins that cause the thickness of
      the mailpiece to be uneven; or loose keys or coins or similar objects not affixed to
      the contents within the mailpiece. Loose items may cause a letter to be
      nonmailable when mailed in paper envelopes;
      Is too rigid (does not bend easily when subjected to a transport belt tension of 40
      pounds around an 11-inch diameter turn).
      For pieces more than 4-1/4 inches high or 6 inches long, the thickness is less
      than 0.009 inch.
      Has a delivery address parallel to the shorter dimension of the mailpiece.
      Is a self-mailer that is not prepared according to tabbing and sealing regulations.
      Is a booklet that is not prepared according to tabbing and sealing regulations.

Pens, pencils, key rings, bottle caps, and other similar odd-shaped items are not
permitted in letter-size or flat-size paper envelopes unless they are wrapped within the
other contents of the envelope to streamline the shape of the mailpiece and prevent
damage during postal processing. If an odd-shaped item is not properly wrapped, it
could burst through the envelope and cause injury to employees and damage to USPS
processing equipment. Odd-shaped items that are properly wrapped within paper
envelopes and sent at letter prices may be subject to the nonmachinable surcharge.
Certain types of odd-shaped items, when properly wrapped, are permitted as
automation price letter-size mail.



                                          2-26
Aspect Ratio
Machinable Aspect Ratio: 1.5




Nonmachinable Aspect Ratio: 1.25




                                   2-27
Automation Letters and Cards
Letter-size mailpieces that are machinable and display the correct delivery point
barcode or Intelligent Mail® barcode may qualify for ―automation‖ prices. A letter or card
meets automation standards and qualifies for automation prices if it meets the specific
addressing, barcoding, and design standards.

Physical Standards
  Maximum weight: 3.5 ounces (Heavy letter mail weighing over 3 ounces must be in
  a sealed envelope, have no stiff enclosures and bear a barcode in the address
  block)
  Rectangular. Aspect ratio (length divided by height): 1.3 to 2.5
  Dimensions:
      o Minimum: 3-1/2 inches high, 5 inches long, and either 0.007 inch thick if not
         more than 4-1/4 inches high and 6 inches long; or 0.009 inch thick if more
         than 4-1/4 inches high or 6 inches long, or both.
      o Maximum for First-Class Mail® card prices: 4-1/4 inches high, 6 inches long,
         and 0.016 inch thick.
      o Maximum for letters and other cards: 6-1/8 inches high, 11-1/2 inches long,
         and 1/4 inch thick.

*Length is the dimension parallel to the address as read

Automation Design Standards: Making your mailpieces automation-compatible is
important. Automated equipment can process mail more efficiently, allowing The Postal
Service® to maintain lower rates for those pieces.

Your automation-compatible mailpiece should:

   Meet the size and weight standards in this chapter.
   Be made of good quality white or light-colored paper.
   Contain no sharp or bulky items.
   Be sealed securely.
   Be readable by automation equipment.




                                          2-28
Mailpiece Materials, Construction and Sealing
The following recommendations for paper and card stock refer to the minimum basis
weight of the materials. Basis weight is defined as the weight (in pounds) of a ream (500
sheets) cut to a standard size for that grade.

      For example, envelopes for automation-rate mailings should be constructed of
      paper weighing at least 16 pounds (minimum basis weight). The specific grade of
      16-pound paper recommended for envelopes is defined as 500 sheets
      measuring 17 inches by 22 inches (17 inches by 22 inches by 500 sheets).
      Recycled paper and card stock are compatible with postal automation if the
      materials satisfy the recommendations and the guidelines of the USPS®.

Envelopes : Envelopes (the preferred container) and other letter-size containers sealed
on all four edges must be made of paper with a minimum basis weight of 16 pounds
(measured weight of 500 17-by-22inch sheets). For business reply mail envelopes, the
minimum basis weight is 20 pounds (DMM® section S922).

Cards: Thickness, stiffness, and tear strength are the most important compatibility
characteristics for cards.
   The minimum thickness is 0.007 inch.
       o The minimum required basis weight for card stock is 75 pounds or greater,
          with none less than 71.25 pounds (measured weight of 500 25x38-inch
          sheets).
   The grain of cards should be oriented parallel to the long dimension of the card.
       o Long-grain cards are less likely to jam postal automated equipment than are
          cards with the grain parallel to the short dimension of the card.
   Cards at automation rates must be 0.009 inch thick if more than 4-1/4 inches high or
   6 inches long, or both.

When preparing postcards with perforations, it is recommended that the perf-to-bridge
ratio be 1:1. A typical perforation is from 0.1 inch to 0.2 inch. Vertical perforations in
the center area of the card are not recommended.

Sealing: Letter-size mailpieces not in envelopes must be secured (tabbed) to prevent
an open edge from jamming high-speed processing equipment.

Standards for tabbing are based on basis weight of paper stock used and the location of
the folded or bound edge. As an alternative to tabbing, the open edge of the length of
the mailpiece may be continuously glued or spot glued.

Tabs, wafer seals, cellophane tape, or permanent glue (continuous or spot) must not
interfere with recognition of the barcode, rate marking, postage identification, or
required address information. Cellophane tape is not acceptable within the barcode
clear zone.


                                          2-29
Basis weight: the minimum basis weight standards vary, depending on the
construction of the mailpiece.

Letter-Size Folded Self-Mailers: Folded edge (bottom) must be parallel to the longest
dimension (length) and the address of the mailpiece.

      With one tab or wafer seal:
         Folded edge must be at the bottom of mailpiece
         Tab or wafer seal must be applied in the middle of top edge of mailpiece
         Single folded sheet w/minimum basis weight of 28 lbs (measured weight for
         500 sheets @ 17x 22‖) or 70 pounds (measured weight for 500 sheets @
         25x38‖)
         Two or more sheets w/minimum basis weight of 24 lbs (measured weight for
         500 sheets @ 17x22‖) or 60 pounds (measured weight for 500 25- by 38-inch
         sheets)

      With two tabs or wafer seals:
         Folded edge may be at the top or bottom of mailpiece
         Tabs or wafer seals must be placed within 1 inch of the right and left edges
         on the mailpiece
         Minimum basis weight of 20 lbs (measured weight for 500 sheets @ 17x 22‖)

      With folded edge on right (leading) edge:
      Self-mailers with a left (trailing) edge, all open edges must be secured with at
      least one tab or a glue line; additional tabs may be required based on trim size
      and basis weight.

See illustrations on next page.




                                        2-30
Letter-Size Booklet-Type Mailpieces
Booklets consist of bound sheets or pages. Sheets that are fastened with at least two
staples in the manufacturing fold (saddle stitched), perfect bound, pressed-glued, or
joined together by another binding method that produces an end where pages are
attached together are considered booklets. Booklets are open on three sides before
sealing, similar in design to a book. Spiral bindings are not machinable so booklets
prepared with spiral bindings do not qualify for automation prices. Large booklets may
be folded to letter-size for mailing if the final mailpiece remains uniform in thickness.

The mailpiece must be tabbed (secured) with non perforated 1-1/2'' tabs, continuous or
spot glue, or 1-1/2'' wide tape. See illustrations on next page.

                                          2-31
2-32
Postcards: Minimum basis weight 75 pounds or greater. Double postcards must have
folded edge at the top or bottom. The open edge must be secured with one tab, or spot
glue in the middle or by a continuous glue line

Incompatible Materials and Sealing Methods

Coverings: Certain materials are incompatible with postal automation because they
cannot be transported at high speeds through mail processing equipment or they do not
allow quality printing of a barcode on the mailpiece for optimal scanning. These
materials include polywrap, shrinkwrap, spun-bonded olefin, and other plastic-like
coverings. Certain types of coated papers should also be avoided if the coating is so
glossy that it can prevent a postal-applied barcode from drying within 1 second. Consult
a mailpiece design analyst about nonpaper coverings before you produce your
mailpieces.

Dark Fibers and Patterns: Paper containing dark fibers or background patterns is not
recommended because it can cause interference during MLOCR and BCS processing.
The dark patterns can be mistaken for part of the address or barcode information.

If you use such paper, make sure that the contrast ratio between the fibers (or pattern)
and the background does not exceed 15 percent in the red and the green portions of the
optical spectrum.

Paper Types: Envelope paper and paper material on other letter-size mailpieces—such
as folded self-mailers— must have sufficient opacity (enough density) to prevent any
printing on the inside of the mailpieces from showing through in the MLOCR read area
or in the barcode clear zone.

Avoid using textured paper—paper with other than a smooth surface—if the texture
adversely affects print quality (that is, causes broken characters or smudged spaces).
Because fluorescent paper can confuse the postage detector on postal facer-canceller
machines, it's not suitable paper for automation mailings.

Closures: Because closures can jam equipment and damage mail during processing,
don't use clasps, staples, string, buttons, or similar protrusions for closing letter-size
automation pieces. And make sure that the pieces' edges are not notched, scalloped, or
curved.

A USPS Mailpiece Design Analyst (MDA) is a primary resource for obtaining
instructions to design automation-compatible mailpieces.




                                          2-33
Physical Standards for Commercial Flats




*The length of a flat-size mailpiece is the longest dimension and height is the dimension
perpendicular to the length.

Retail and Nonautomation Flats
Shape: Rectangular, with four square corners, or with finished corners that do not
exceed a radius of 0.125 inch (1/8 inch)

Maximum weight:
  First-Class Mail® 13 ounces
  Standard Mail® less than 16 ounces
  Bound Printed Matter 15 pounds

Uniform thickness: The contents must be uniformly thick so that any bumps,
protrusions, or irregularities do not cause more than 1/4 inch variance in thickness (see
DMM 301). You may exclude the outer edges of a mailpiece (1 inch from each edge)
when the contents do not extend to the edges.

Flexibility: All flat-size pieces must meet flexibility criteria (see DMM 301)
Mailpieces that do not meet flexibility standards or are not uniform in thickness pay:
   First-Class Mail—parcel prices
   Standard Mail—Not Flat-Machinable or parcel prices
   Bound Printed Matter—parcel prices

Address Font: (applies to all commercial flats):
  Flats must have the address of the intended recipient, visible and legible, only on the
  side of the piece bearing postage. (Periodicals do not display postage and the
  address may appear on either side.)
  Use at least 8-point type for addresses on flats prepared without delivery point
  barcodes.
  Sans-serif font printed in all capital letters preferred.
  Individual characters in the address cannot overlap.
  Individual lines in the address cannot touch or overlap. A minimum 0.028-inch clear
  space between lines preferred.
                                           2-34
Automation Flats: Automation or Commercial flats must be uniform in thickness, and
meet flexibility, deflection and polywrap criteria. Clasps, strings, buttons, or other
protrusions, and also staples (unless the staples are properly used as a binding
method) are prohibited

Flat-size pieces meeting the automation standards may qualify for automation or
Periodicals machinable prices. Size, weight, thickness, polywrap, and flexibility and
preparation standards vary by class of mail so refer to the Quick Service Guide or DMM
for more information.

Maximum weight:
  First-Class Mail® 13 ounces
  Periodicals 20 ounces
  Standard Mail® 16 ounces
  Bound Printed Matter 20 ounces

Address Font: (applies to all commercial flats):
  Flats must have the address of the intended recipient, visible and legible, only on the
  side of the piece bearing postage. (Periodicals do not display postage and the
  address may appear on either side.)
  Use at least 8-point type for addresses on flats prepared without delivery point
  barcodes.
  Sans-serif font printed in all capital letters preferred.
  Individual characters in the address cannot overlap.
  Individual lines in the address cannot touch or overlap. A minimum 0.028-inch clear
  space between lines preferred.
  Flats with POSTNET™ or Intelligent Mail® barcode delivery point routing codes may
  have a minimum of 6-point type if addresses in all capital letters
     o Barcodes must be at least 1/8 inch from any edge of the address side

Address Placement: Mailers must place the delivery address parallel or perpendicular
to the top edge on the front or the back of the mailpiece and within the top half of the
mailpiece. If there is a bound or folded edge, the address as read must be within the top
half when the bound or folded edge is to the right. It cannot be upside down as read in
relation to the top edge.




                                          2-35
First-Class Mail® Automation Letters, Postcards and Standard Mail Automation
Letters

Physical Standards:
      Maximum weight: 3.5 ounces.
      Heavy letter mail weighing more than 3 ounces must have a barcode in the
      address block and be prepared in a sealed envelope

Fee: Annual $185.00 presort mailing fee

Eligibility standards: (See Chapter 1 for First-Class Mail® and Standard Mail®
content eligibility Information.)
       First-Class Mail® mailings of 500 or more addressed pieces; Standard Mail®
       mailings of 200
       pieces or 50 pounds (Standard Mail® letters that weigh more than 3.3 ounces but
       not more than 3.5 ounces pay piece/pound postage but receive a discount.)
       100% delivery point or Intelligent Mail barcoded, sorted, and marked as
       described below.
       All pieces must be automation-compatible. Pieces mailed at card prices and
       pieces mailed at letter prices must meet separate 500-piece minimums.
       Each piece must also include a complete delivery address with correct ZIP Code
       or ZIP+4 code.
       Addresses on all pieces must be updated within 95 days before mailing through a
       USPS-approved address update method (e.g., ACS, NCOALink, FASTforward,
       or the appropriate ancillary service endorsement except Forwarding Service
       Requested)
       Addresses must be matched using CASS/MASS-certified process within 180
       days before mailing.
       All letter-size reply cards and envelopes (Business Reply Mail, Courtesy Reply
       Mail, and metered reply mail) provided as enclosures must be automation-
       compatible.


                                          2-36
Postage Payment and Documentation:
     Precanceled stamp, meter, or permit imprint
     Postage statement:
         o First-Class™ - PS Form 3600-R or approved facsimile
         o Standard Mail® Regular - PS Form 3602-R, or approved facsimile,
            Nonprofit - PS Form 3602-N, or approved facsimile.
     PS Form 3553 must be retained for 1 year
     Supporting documentation: required unless correct price affixed to each piece or
     unless each piece is of identical weight and separated by price when presented
     for acceptance; documentation generated by PAVE-certified software (or printed
     in standardized format).

Mail Preparation:
      Mark each piece:
         o ―First-Class Mail,‖ and ―AUTO‖ in the postage area
                 Pieces not marked ―AUTO‖ must bear both the ―Presorted‖ and
                    ―PRSRT‖ and ―First-Class Mail‖ markings
         o Regular - ―Presorted Standard‖ or ―PRSRT STD,‖ ―Standard‖ or ―STD‖,
             and Nonprofit - ―Nonprofit Organization‖ or ―NONPROFIT ORG.‖ or
             ―NONPROFIT‖
      For pieces bearing a delivery point POSTNET™ or Intelligent Mail® barcode in
      the address block or on an insert visible through a window, ―AUTO‖ not required.
      When preparing full trays, mailers must fill all possible 2-foot trays first; if there is
      mail remaining for the presort destination, mailers must use a combination of 1-
      foot and 2-foot trays that result in the fewest total number of trays for that presort
      level.
      Barcoded tray labels required
      Trays, in most cases, should be sleeved and strapped.

Entry/Deposit:
      Enter mailings at an acceptance point designated by USPS
      Note, for Standard Mail®, destination discounts apply to mail prepared as
      prescribed by USPS and addressed for delivery within service area of destination
      BMC/ASF or SCF




                                             2-37
Traying Sequence – Standard Mail® Automation Letters:




                                    2-38
Traying Sequence – First-Class Mail® Automation Letters:




                                     2-39
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               2-40
3 WORLSHARE INCENTIVES
MAILING SERVICES – RETAIL, DISCOUNT AND ONLINE
WORKSHARE INCENTIVES
MOVE UPDATE
OUTSOURCING
MAIL SERVICE PROVIDERS
PLANNING A DISCOUNT MAILING

Mailing Services – Retail, Discount and Online
Depending on your needs and resources, there are three different approaches to using
mail for your business.

   1. Retail Mailing Services
      With retail mailing services, you can easily send any quantity of mail at full
      postage rates without any special preparation. Address, add postage and send—
      it‘s fast and easy.
               Easy mail preparation
               Convenient drop-off options
               Expedited services available

   2. Discount Mailing Services
      With discount or ―bulk‖ mailing services, you receive significant postage
      discounts for larger mailings by preparing and sorting your mail according to
      Postal Service™ guidelines and depositing it at designated locations.
             Reduced postage costs
             Many options available
             Promote your business and create a professional image

   3. Online Mailing Services
      From desktop to doorstep, online mailing services let you use your computer to
      upload or create postcards, letters, and newsletters. Your mailpieces are printed,
      prepared, and delivered directly to your customers.
            No permit or mailing fees
            Discounted postage rates available
            Mail anytime from your desk




                                         3-41
Workshare Incentives
Discount mail, or ―bulk mail,‖ is your best option if you mail in volume. In order to claim
these lower rates, you must have a minimum quantity and do some additional work to
make your mail easier for the Postal Service to handle. In return for this additional
work, the Postal Service shares some its savings in the form of postage discounts. By
sharing some of the work, the Postal Service shares some of the savings with the
mailer. Hence the term ―workshare‖ discount.

How Does It Work?
Your discount depends on the mailing service you choose and the work you do. For
example, if you want to mail 1,000 letter-sized flyers to everyone in your ZIP Code™
advertising your business' sale, if you mail the flyer as a First-Class™ mailpiece you will
pay substantially more postage than if you mail the flyers using Standard Mail®.
Additional savings are available if you mail to everyone in your ZIP Code™, add a
barcode, sort them by carrier route and deposit them at the Post Office that handles
their delivery.

The postage depends on the mailing service you choose and the characteristics of your
mailpiece.

   For any discount mailing, you must do some of the work the Postal Service would
   otherwise do. The work you do, such as preparing, sorting, and entering your
   mailing, can lower your postage costs.
   The discount is greater based on the density and volume of mail going into a specific
   Zip Code or ZIP Code Scheme. Work share postage discounts from the USPS are
   available for both ―List Mailings‖ (likely to be produced at an outside commercial
   supplier; where all pieces identical) and ―Comingled Mailings‖ (likely processed by a
   presort bureau; that include multiple weights and sizes).
   You must pay an annual mailing fee at each facility where you enter mail. Different
   mailing services may require separate fees. For example, First-Class Mail®,
   Standard Mail®, and Package Services require separate annual presort mailing
   fees.
   Other optional aspects of a discount mailing, such as using permit imprints, business
   reply mail, or mailing endorsements, may require additional fees.




                                           3-42
Move Update
The Move Update standard is a means of reducing the number of mailpieces in a
mailing that require forwarding or return by the periodic matching of a mailer‘s address
records with customer-filed change-of-address orders received and maintained by the
Postal Service. Mailers who claim presorted or automation prices for First-Class Mail or
Standard Mail must demonstrate that they have updated their mailing list within 95 days
before the mailing date.

      One exception would be when a customer contacts a business and as a result is
      added to the list, the newly added address can ―ride‖ with the list until the next
      cycle for update. The address can be added to the list only if the customer has
      requested services or literature or has purchased merchandise.

      The regulation does not apply to mail bearing an alternative address format, i.e.,
      ―Postal Customer‖ or ―Occupant,‖ ―Householder,‖ or ―Resident‖. This is because
      mail with an occupant or an exceptional address format is delivered as
      addressed to the physical location rather than the ―person‖.

The Move Update standard is met when an address used on a mailpiece in a mailing for
any class of mail is updated with an approved method and the same address is used in
a commercial First-Class Mail or Standard Mail mailing within 95 days after the address
has been updated.

The Postal Service offers four pre-approved methods:
   1. Address Change Service (ACS)
   2. National Change of Address Linkage System (NCOALink)*
   3. FASTforward
   4. Ancillary Service Endorsements (except for Forwarding Service Requested)

      *NCOALink solutions are considered proactive or pre-mailing because the mailer
      is notified of address changes prior to mail creation and entry into the postal
      system.

      ACS, Ancillary Service Endorsements and FASTforward may be considered
      reactive or post-mailing solutions because essentially the mailpieces are created,
      addressed and entered into the postal system (or presort house system as with
      FASTforward), and the mail owner is notified per various means of address
      changes later.

Alternative Methods: Alternative methods are available for First-Class Mail® mailers
and require USPS® approval. These include the 99% Accurate Method and the Legal
Restriction Method. Mailers should work with their post office for these methods.


                                         3-43
Each mailer may need to experiment with several options to determine the most
effective method or combination of methods to update addresses in different mailing
situations.

Certificate of Compliance: Regardless of the Move Update solution used, the mailer's
signature on the postage statement certifies that the mailing complies with all relevant
standards, including the Move Update. A copy of Form PS6014 Certification of Move
Update Compliance must be retained with the postage statement and other
documentation for each mailing.

Address Change Service (ACS™) – ACS is a process for mailers to receive
address changes electronically from the Postal Service to update their next mailing.
Depending on a mailpiece's class and endorsement, mailers may also receive
information on addresses that are undeliverable for reasons other than a customer
move.

There are two options:
1. OneCode ACS™ or Full-Service ACS™ using the Intelligent Mail® barcode and a
   mailer ID

2. ACS™ used with a participant code and an appropriate ancillary service
   endorsement

For either option, the ―Address Service Requested‖ or ―Change Service Requested‖
endorsements can be printed on First-Class Mail® and are required for Standard Mail®.

To complete the Move Update process, the mailer must make the address changes
received as a result of notifications. It is recommended that mailers retain address
correction records for up to two years.

Ancillary Service Endorsements – Ancillary Service Endorsements allow the
mailer to obtain, on request, the recipient‘s new (forwarding) address (if that recipient
had filed a change-of-address - COA - order with the Postal Service ™) or the reason
for nondelivery.

Approved endorsements include Address Service Requested, Return Service
Requested, temporary Return Service Requested and Change Service Requested
(used with Address Change Service for First-Class Mail® or as a stand-alone option for
Standard Mail®).

The endorsements are the same for all classes of mail, but the treatment and cost differ
by class of mail. The mailer must pay any applicable charges for forwarding or return of
the mailpiece, and a separate address notification charge.



                                          3-44
To complete the Move Update process, the mailer must make the address changes
received as a result of the use of the approved ancillary service endorsement. It is
recommended that mailers retain address correction records for up to two years.

For more information on Ancillary Service Endorsements, please see Chapter 6.




                                        3-45
FASTforward® – FASTforward® Multiline Optical Character Reader (MLOCR) is a
process that allows physical mailpieces to be updated against the USPS® COA
database. If a change of address is provided, the new address is printed directly on the
mailpiece. Presort companies commonly offer FASTforward® service.

Mailers should consider the following:
   FASTforward® only contains 18 months of COA history. Therefore, if a particular
   recipient moved longer than 18 months ago, that new address would not be
   recognized, potentially delaying delivery.
   And while not necessary to meet the Move Update standard, mailers may want to
   work with their presort company and the USPS® as part of the FASTforward® Move
   Update Notification (FFMUN) program to receive electronic files of COA information,
   otherwise, over the course of time, the mailer‘s database could eventually
   deteriorate. This might also have negative ramifications on mailings not processed
   through FASTforward®.
   Some presort companies may not have FASTforward® on their flats processing
   equipment. Thus, another Move Update solution would be required for commercially
   priced flat-size mail.

Partnering with a presort company not only enables mailers to achieve some level of
postal incentive (discount) but it also serves as a simple means of meeting the Move
Update standard.




                                         3-46
National Change of Address Linkage System (NCOALink®) – NCOALink® is an
efficient pre-mailing method leveraging the most current USPS® address information,
including standardized and delivery point coded addresses, for matches made to the
NCOALink® file for individual, family, and business moves. Look for NCOALink®
solutions that provide 48-months of COA history to increase your opportunity to correct
addresses.

Benefits include that addresses are corrected before mailpieces are addressed and
entered into the mailstream, maximizing the opportunity for a fast delivery of revenue-
collection and revenue-generating mailpieces. This can often prevent the need to
regenerate and/or re-mail mailpieces.     CASS-certified solutions with an NCOALink®
element enable mailers of letter-size and flat-size mailpieces to maximize their postal
incentives for qualifying mailings, sometimes at lower prices than a presort company
can offer.

NCOA Link® solutions can be a very valid option for proactive move updates. The
investment can be substantially less, especially comparing the super-low cost per
correction against the overall costs associated with reactive (post-mailing) solutions that
may include regeneration and re-mailing of mailpieces.

Even considering the charge for every record submitted (versus only the correction fee
when using ancillary endorsements), most savvy mailers would only want to submit the
most accurate and concise mailpieces to the USPS®. Mailers wouldn't want to give the
USPS® pieces that may be delayed or not delivered. Nor would they have wanted to
waste the investment in creating, printing, folding, inserting and posting because of
inaccurate addresses. Waiting for address correction notices from the USPS® could
negatively affect turnaround time for subsequent mailings.




                                           3-47
Outsourcing
What selection criteria should you use when all your outsourcing candidates appear
equally qualified to perform your work and the pricing is close? How many times have
you heard "they are all about the same so I went with my gut feeling"? Basically that
means the vendors did a poor job of educating the customer or the customer didn't put
enough effort into understanding the differences in the vendors. Either way, the decision
becomes a gamble on future satisfaction.

Selecting an Outsourcing Partner
There should be two major considerations in selecting a document and mailing
outsourcing company.

1. The usual outsourcing price quotation is based on what your company is doing
   currently.
          A great outsourcing company will ask questions, understanding if you have
          requirements that are not being met and what you would like to improve.
          A great outsourcing company will produce two quotes - one that compares
          apples to apples and one with recommendations for improvements and
          related costs, demonstrating how to reduce production costs.

2. Understand the values of the outsourcing company by listening to how they
   represent their company.
         Is the sales presentation based on the number of laser printers and mail
         machines or do they focus more on satisfied customers, quality, and solving
         your business problems.
         Is the outsourcing company flexible, willing to make changes as the
         customers' needs change or do you get the feeling you have to conform to
         them.
         Do their customers really speak highly about the relationship and provide
         strong recommendations?
         Has the outsourcing company honored all commitments on service and
         turnaround with their customers or does support drop after contracts are
         signed?




                                          3-48
Comparing Costs: In-House vs. Outsourcing
If the primary goal of outsourcing is to reduce costs then why do most companies fail to
accurately assess their internal costs? Certainly capital equipment investments in
printers, mail machines, servers, supplies, maintenance contracts and operator salaries
are easy numbers to obtain - in fact, most studies stop right there.

What's wrong with this comparison?

The outsourcing company, if properly managed, has the same hidden "soft" costs of
running any production operation. Therefore, an accurate comparison to an outsourcing
quotation should include true in-house costs, not just hard dollar line items in budgets.
An example of soft costs rarely addressed is indirect labor cost, such as accounting,
budgeting, interviewing, training, recruiting, payroll, benefits administration, mail
operations management, temporary labor, IT support, building facilities management,
vendor contract management, shipping and receiving, purchasing, and mail delivery.

What about hidden expenses that are buried in larger line items - warehouse storage
space, delivery vehicle usage for mail delivery, various types of insurance, real estate
and utility costs, and so on. All of these costs are included in outsource pricing. If the
objective is a true, accurate comparison of in-house versus outsourcing, then be
prepared to spend some time analyzing real internal costs.
The best method in selecting an outsourcing company should not be derived from
personal references or ones that you know or trust; you must investigate them
thoroughly write a good contract and spell out all requirements prior to signing. The
extra investment in looking beyond pricing and capabilities will pay off handsomely
insuring a mutually successful outsourcing relationship. Rest assured, all outsourcing
companies are not created equal.

Reduce Cost: The most obvious reason companies consider document outsourcing is
to reduce capital investment and on-going expenses for laser printers, mail machines,
software, and personnel - all of which are utilized on a part time basis. Strong
outsourcing partners offer state-of-the-art production facilities allowing you to pay only
for your company's usage.

Concentrate on Core Competencies: In a very competitive world, successful
companies have become more focused and specialized than ever before. Sales and
revenue growth are imperative - building fixed overhead is not. Today, many
organizations recognize there is no competitive advantage in building and managing
print and mail operations, especially when print and mail will diminish over time with the
future transition to electronic documents; these are important details to cover when
looking to outsource presort services, facility management operations, and international
re-mailing services.




                                          3-49
Lack of Internal Expertise: Few companies can afford to hire a full time staff to
research and stay abreast of technology changes in laser printing, mail production
software and equipment and postal regulations. Evaluating, purchasing and
implementing electronic document technology raise the bar significantly. Thriving
outsourcing companies have that specialized expertise - that's why they are successful.
Continued technology advances, increasing wages for the best people and decreasing
talent pool insure outsourcing will grow dramatically.


Mail Service Providers
You can get help with discount mailing from a business that specializes in designing,
preparing, and sorting mail. These businesses, typically called ―mail service providers‖
can help you with a single part of a discount mailing, or you can hire them to handle the
entire mailing, from creation to mail entry.

Mail service providers can help you:
   Purchase or rent an address list
   Manage your address database
   Design and print your mailpieces
   Sort your mailpieces
   Reduce your postage rate
   Enter your mail into the mailstream




                                          3-50
Planning a Discount Mailing
Several steps are involved in the discount mailing process. A successful discount
mailing requires careful consideration of each step.

1. Choosing a Mailing Service - Which mailing service you choose depends on the
   shape, weight, and content of your mail, along with speed of delivery.

2. Choosing a Postage Payment Method - The Postal Service           offers four ways for
   you to pay for and apply postage to your mailpieces.

3. Preparing Your Mail - ―Machinable,‖ ―nonmachinable,‖ and ―automation‖ are the
   three ways The Postal Service       classifies how mailpieces are prepared. These
   classifications are based on the ability of your mailpiece to be processed on Postal
   Service™ equipment.

4. Sorting Your Mail - Sort your mail according to Postal Service™ standards.

5. Entering Your Mail - The minimum requirement is to enter your mail at the business
   mail entry unit (BMEU) or Post Office™ where you hold a mailing permit. You can
   receive additional discounts by transporting your mail closer to where it will be
   delivered.

After you make these choices, prepare your mailpieces, then sort them by Postal
Service™ standards, and enter your mailing at a postal facility. For each step, you will
need to complete the minimum level of work required by the Postal Service.

You may also choose to complete higher levels of work to receive greater postage
discounts.

Example: Minimum Quantities for a Bulk Business Mailing
To qualify for certain postage discounts, you must mail a minimum number of pieces:
   500 pieces for First-Class Mail
   200 pieces (or 50 pounds of mail) for Standard Mail
   50 pieces for Parcel Select
   300 pieces for Presorted or Carrier Route Bound Printed Matter
   300 pieces for Library Mail
   300 pieces for Media Mail (formerly ―book rate‖)

In some cases, the characteristics of your mailpieces will determine which rates and
discounts are available to you.




                                         3-51
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               3-52
4 ADDRESSING AND AUTOMATION
ADDRESSING GUIDELINES
WINDOW ENVELOPES AND INSERTS
BARCODES

Addressing Guidelines
Addresses should be typewritten or machine printed in dark ink on a light background
using uppercase letters. Except for the hyphen in the primary or secondary street
number (if needed) or the ZIP+4® code, all punctuation may be omitted. All lines of the
address should be formatted with a uniform left margin. When using a foreign address,
always place the country name by itself on the last line.

The delivery address line (the line directly above the city, state, and Zip Code™) and
the last line of address (city, State, and Zip Code™) output to the mailpiece should be
complete, standardized, and validated with the ZIP+4® File and City State File,
respectively. A standardized address is one that is fully spelled out, abbreviated by
using The Postal Service® standard abbreviations or as shown in the current Postal
Service™ ZIP+4® File.

The Postal Service® defines a complete address as one that has all the address
elements necessary to allow an exact match with the current Postal Service™ ZIP+4®
and City State Files to obtain the finest level of ZIP+4® and delivery point codes for the
delivery address. A complete address is required on a mailpiece mailed at automation
rates. CASS (Coding Accuracy Support System) Certification™ ensures compliance
with postal regulations as it pertains directly to addressing standards.

Addressing Software - CASS™/DPV®/LACSLink®
CASS processing improves the accuracy of delivery point codes, ZIP+4 codes, 5-digit
ZIP Codes, and carrier route codes on mailpieces. CASS provides a common platform
to measure the quality of address matching software and to diagnose and correct
software problems.

Requirement: Any mailing claimed at an automation price must be produced from
address lists properly matched and coded with CASS-certified address matching
methods listed below. A mailer using Multiline Optical Character Readers (MLOCRs) to
print delivery point barcodes on mailpieces must also obtain CASS certification
(including Multiline Accuracy Support System (MASS)) for the address matching
software used on the MLOCRs. Coding must be done within 90 days before the mailing
date for all carrier route mailings and within 180 days before the mailing date for all non-
carrier route automation price mailings.



                                           4-53
Methods: Delivery point or ZIP+4 coding may be obtained by using the CASS-certified
Delivery Point Validation (DPV®) address matching software with components DPV and
LACSLink; CASS-certified Z4CHANGE process; CASS-certified DirectDPV process;
NCOALink; or DSF2 process. Effective August 1, 2007 CASS Certified™ software
requires use of both the LACSLink and DPV® products when processing address lists.
This requirement ensures ZIP + 4® codes will be assigned only when the primary
number of the address can be validated using the DPV Product and whether the input
address reflects any applicable municipality address conversions.

Delivery Point Validation (DPV®) - The DPV Product identifies whether a ZIP + 4®
coded address is currently represented in the USPS® delivery file as a known address
record. The DPV Product allows users to confirm known USPS addresses as well as
identify potential addressing issues that may hinder delivery. Correcting potential
addressing issues can reduce the amount of undeliverable-as-addressed (UAA) pieces,
which in turn will result in more efficient mail processing and delivery.

The DPV Product confirms that:
   The known address has verifiable primary and secondary data.
   The known address has verifiable primary but not secondary data.
   The address cannot be verified as a known address.
   The DPV Product does not append any missing data or correct any address
   elements.

Locatable Address Conversion System (LACSLink®) - The LACSLink® Product is a
secure dataset of converted addresses that primarily arise from the implementation of
911 system, which commonly involves changing rural-style addresses to city-style
addresses. The LACSLink® Product also contains existing city-style addresses that
have been renamed or renumbered.

Address Element Correction (AEC and AECII) - AEC is a quality process developed
by the USPS with industry support. AEC focuses on inaccurate addresses, specifically
those deliverable addresses that cannot be matched to a USPS ZIP + 4® code using
commercially available CASS Certified™ address-matching. If an address is missing an
element, CASS Certified address-matching software may lack sufficient information to
determine the correct or most accurate match to the ZIP + 4 product and, therefore,
may not provide a ZIP + 4 code. After an address goes through this process and is not
resolved, it becomes a candidate for AECII.

AEC II is an enhancement to the existing AEC service, which identifies and corrects
―bad‖ addresses using a complex computer program. ―Bad‖ addresses that cannot be
resolved using AEC are submitted, via AEC II, to delivery offices for review and
resolution by the same people who deliver the mail for you every day. When USPS
delivery personnel are able to identify and correct address errors, or to identify
addresses that do not exist, address quality is improved.

                                        4-54
Address Format: Format all lines of the address with a uniform left margin. Uppercase
letters are preferred on all lines of the address block. The Attention Line is placed above
the Recipient Line, that is, above the name of the firm to which the mailpiece is directed.




Dual Addresses: Eliminate dual addresses on the output mailpiece, if possible.




Mailer files may maintain both mailing and physical addresses. If dual addresses are
used, place the intended delivery address on the line immediately above the city, state,
and ZIP+4® code. This normally is the Post Office Box™ address. The other address
must be placed on a separate line above the Delivery Address Line. The recommended
address format is shown in the illustration below.




                                           4-55
Readability: An automation readable mailpiece is defined as one that contains an
accurate, correctly formatted, complete address or ZIP+4® POSTNET™ barcode or
IM™ barcode and is readable on an OCR and/or a barcode sorter (BCS).

The entire address should be contained in an imaginary rectangle known as the OCR
read area that extends from 5/8" to 2 3/4" from the bottom of the mailpiece, with 1/2"
margins on each side. The barcode clear area, 5/8" from the bottom, and 4 3/4" from
the right edge of the mailpiece, is the area where a POSTNET™ barcode is pre-applied
or printed by an OCR.




Printing: Address characters must not touch and should be equally spaced. All lines of
the address should be left-justified and parallel to the bottom of the envelope. Be sure to
include all pertinent information such as the directional code, apartment, floor, and suite
number.

For additional information on designing mail for OCR/BCS readability, we suggest you
obtain a copy of Publication 25, Designing Business Letter Mail, or Publication 221,
Addressing for Success.




                                           4-56
Return Address
The return address tells the USPS where the sender of a mailpiece wants it returned if
the piece cannot be delivered. The return address contains elements corresponding to
those for the delivery address. A return address is required in specific circumstances. If
the sender's name is not included in the return address, another clear designation
(apartment, suite, or room number) is required to ensure proper handling of ancillary
services and/or return of the piece. ZIP Codes (5-digit or ZIP+4) are required in the
return address of all mail on which postage is paid with precanceled stamps or company
permit imprint, and in the sender's return address on Periodicals mail when "Address
Service Requested" is specified. Official mail (penalty mail) also requires a ZIP Code in
the return address.


Required Use of Return Addresses
The sender's domestic return address must appear legibly on:
      Mail of any class bearing a printed ancillary service request or an ancillary
      service request embedded within an Intelligent Mail barcode
      Official mail
      Mail paid with precanceled stamps (except Standard Mail pieces weighing 13
      ounces or less and bearing a mailer's postmark in accordance with 604.3.4)
      Matter bearing a company permit imprint
      Priority Mail
      Periodicals in envelopes or wrappers
      Package Services (except unendorsed Bound Printed Matter)
      Registered Mail
      Insured mail
      Collect on Delivery (COD) mail
      Certified Mail if a return receipt is requested
      Express Mail if a return receipt is requested
      Detached addressed labels (DALs)




                                          4-57
International Addresses
The bottom line of the address should show only the COUNTRY name, written in full (no
abbreviations) and preferably in capital letters.

Do not place the postal codes (ZIP Codes™) of foreign country designations on the last
line of the address.

Do not underline the COUNTRY name.

An example of a correct foreign address follows:




Canada Only
The following address format is used when the postal address delivery zone is included
in the address.

Use the standard two-character abbreviation for provinces and territories.

On mail to Canada, there must be two spaces between the province abbreviation and
the postal code, as shown below between "ON" and "K1A 0B1":




                                          4-58
Window Envelopes and Inserts
To ensure successful automated processing, design your window envelopes and their
inserts so that the entire address and postal barcode (when included) appear in the
window area during the full movement of the insert – ―Tap Test‖. While there is no
minimum window size requirement, the address must pass the ―Tap Test‖ to obtain
automation rate discounts.

For MLOCR processing, at least 1/8 inch of clearance (1/4 inch of clearance is
preferred) must be maintained between the address and the edges of the window when
the insert is moved to its full limits inside the envelope. MLOCRs need this clear space
to distinguish the address from the edge of the window or shadows cast near the
address by the edge of the window. Non-address information must not show in the
window clearance area.

Address/Window Clearance




Excessive Address Insert Shift




Vertical Address Insert Shift Test
To test the vertical insert shift of the address within a window, do the following:
   Check that a clear space of at least 1/8 inch is maintained between the top of the
   recipient line in the address and the top edge of the window without tapping the
   mailpiece.
   Tap the mailpiece on a flat horizontal surface on its bottom edge to jog the insert as
   far down into the envelope as it can go.
   Check that a clear space of at least 1/8 inch is still maintained between the bottom of
   the Post Office™, state, and ZIP Code™ line of the address and the bottom edge of
   the window.

Horizontal Address Insert Shift Test
To test the horizontal insert shift of the address and window, do the following:
1. Tap the mailpiece to jog the insert as far to the left and right as it can go.
2. Check that a clear space of at least 1/8 inch is still maintained between the left and
   right edges of the address and the left and right window edges.
                                          4-59
Barcode/Window Clearance
As with addresses, POSTNET™ or IM™ barcodes printed on inserts—including
barcodes printed as the top or bottom line of the delivery address block—must maintain
the following minimum clearances.

   At least 1/8 inch from the left and right edges of the barcode and the edges of the
   window when the insert is moved in those directions.
   At least 1/25 inch from the top and bottom edges of the window opening when the
   insert is moved in those directions. This 1/25-inch minimum clearance is also
   needed between the top and bottom of the barcode and any other printing.




Vertical Barcode Insert Shift Test
To test the vertical insert shift of the barcode and window, do the following:
   If the barcode is the top line of the address block, check that a clear space of at least
   1/25 inch is maintained between the top of the barcode and the top edge of the
   window without tapping the mailpiece.
   Tap the mailpiece on a flat horizontal surface on its bottom edge to jog the insert as
   far down into the envelope as it can go. Check that a clear space of at least 1/25
   inch is still maintained between the last line of the address and the bottom edge of
   window.
   If the barcode is the bottom line of the address block, check that a clear space of at
   least 1/25 inch is still maintained between the bottom of the barcode and the bottom
   edge of the window after tapping.

Horizontal Barcode Insert Shift Test
To test the horizontal insert shift of the barcode and window, do the following:
   Tap the mailpiece to jog the insert as far to the left and right as it can go.
   As each side is tapped, check that a clear space of at least 1/8 inch is still
   maintained between the left and right edges of the barcode and left and right window
   edges.

Excessive Barcode Insert Shift




                                           4-60
Insert Material: Like envelope paper, insert material must have sufficient opacity to
prevent any printing on the inside of the mailpiece from showing through in the MLOCR
read area or in the barcode clear zone.

Window Coverings: Open or covered windows may be used for addresses and
address block barcodes. Windows must always be covered in automation-rate mailings
of pieces that weigh more than 3 ounces.

Material for covered windows must be clear or transparent (low-gloss polyclear
materials are best) and securely attached on all edges. Cellophane, glassine, and
polystyrene are acceptable materials, but must be free of wrinkles, streaks, fogging,
colors, and other conditions that can obscure the address or barcode during processing.

All address and barcode information, as read through the window, must satisfy the
following minimum reflectance and contrast guidelines:
    A print contrast ratio (PCR) equal to or more than 40 percent in the red and green
    portions of the optical spectrum is necessary for an MLOCR to recognize address
    information.
    A print reflectance difference (PRD) equal to or more than 30 percent in the red and
    the green portions of the optical spectrum is necessary for a BCS to recognize
    POSTNET™ or IM™ barcodes.

Because glassine is somewhat opaque (less transparent) compared with other window-
covering materials, addresses read through glassine must produce a slightly higher
PCR of 45 percent. The minimum PRD for barcodes read through glassine is 30
percent—the same minimum required for other window-covering material.

Window Clear Space: Address windows should be no lower than 1/2 inch from the
bottom edge of the envelope and may extend 1/8 inch into the barcode clear zone.




                                         4-61
FASTforward®: In mailings of First-Class Mail®, any envelope whose window intrudes
into the barcode clear zone is not eligible for MLOCR FASTforward® processing to
meet the move update standard. Check with your local mailpiece design analyst or
business mail entry unit for more guidelines.

Barcode Clearance: The following minimum clearances for the POSTNET™ or IM™
barcode, when applied to address labels, are the same as the clearances required for
barcoded inserts in window envelopes.

   At least 1/8 inch between the left and right of the barcode and the left and right
   edges of the label or other printing.
   At least 1/25 inch between the top and bottom of the barcode and the top and
   bottom edges of the label or other printing.




Automation Addressing General Standards: For successful processing and delivery
point barcoding by MLOCRs, the addresses on letter mail should be machine-printed,
with a uniform left margin, and formatted in such a way that a MLOCR will be able to
recognize the information and find a match in its address files.

A complete address is required so that an MLOCR can delivery point barcode the piece
for the most precise point of delivery. In this way, you greatly improve the deliverability
of your mailpiece. An MLOCR and the ZIP+4® database are better able to identify the
correct delivery address the first time that the mailpiece is processed.

For faster, more accurate processing, include in the delivery address the street
designators (for example, BLVD or DR); directionals (for example, NE or SW); the
apartment, suite, or room number; and the ZIP+4® code.

MLOCRs can read a combination of uppercase and lowercase characters in addresses.
Even though MLOCR enhancements now allow effective reading of punctuation in
addresses, it still is suggested that punctuation be omitted when possible.

Whether or not punctuation is included in the address, the ZIP+4® code format is five
digits, a hyphen, and four digits (for example, 12345-6789). The code eliminates
guesswork about the intended destination.

                                           4-62
For automation rates, The Postal Service® requires mailers to prepare their mailings
with addresses that have been verified and corrected using CASS™-certified address
matching software or processes. Your local mailpiece design analyst can provide you
with more information.

Address Block Location: The following illustration shows the area on letter mail where
address information should be located to be read by Multiline Optical Character
Readers (MLOCRs).

The automation specifications are as follows:
   The MLOCR read area requires only ½ inch margins on the left and right sides.
   The entire address (except the optional lines above the recipient line) should appear
   within an imaginary rectangle that extends from 5/8 inch to 2 ¾ inches from the
   bottom edge of the mailpiece, with ½ inch margins on the left and right sides. This is
   the requirement for any letter-size mailpiece.
   For pieces longer than 10 ½ inches, the address should begin no more than 9 ¾
   inches from the right edge.

Clear Zones and Free Space:

      Mailpiece clear zones (unshaded), for pieces up to 10 ½ inches long:




                                          4-63
      Mailpiece clear zones (unshaded), for pieces more than 10 ½ inches long:




Extraneous (non-address) printing in the MLOCR read area can confuse MLOCR
scanners and prevent them from interpreting the address information correctly. This can
cause them to reject the mailpiece. Nonaddress printing such as company logos,
advertising, and die cuts should not be placed within the MLOCR read area. If it is, the
lowest point must be above the delivery address line. In other words, within the MLOCR
read area, you should keep the space on either side of and below the delivery address
line clear of all printing.

Nonaddress Printing Space (Unshaded Area)




Return Address: You should always keep the MLOCR read area clear of return
address information. In addition to being positioned at least 2 ¾ inches above the
bottom edge of the mailpiece, the return address should occupy an area in the far upper
left corner of the mailpiece no longer than 50 percent of the length of the mailpiece. The
return address should be printed in a type size smaller than the type size used in the
delivery address.
                                           4-64
Barcode Clear Zone: After reading the address, the MLOCR prints the appropriate
delivery point barcode in the lower right corner of the mailpiece. This area is known as
the Barcode Clear Zone that extends 5/8 inch from the bottom and 4 ¾ inches long from
the bottom right corner. To ensure that the barcode is readable by barcode sorters, the
barcode clear zone must be clear of all printing, markings, graphics, and colored
borders. Certain types of coated paper should be avoided.


Printing Guidelines
Type Style: Some typefaces have serifs, which are short lines that decorate the ends of
letter strokes. Because typefaces that have no serifs (called "sans serif" faces) are more
easily read by MLOCRs, these styles are recommended for printing the delivery
address.
Display Type: Typefaces (like Helvetica) with specific characteristics (like Helvetica
normal 12 point) are called fonts. As a rule, do not use fonts defined as bold, extended,
or condensed. Also, do not use italic, highly stylized, or script-like fonts.
Unacceptable Type Styles:
  Bold
  Extended
  Condensed
  Italic
  Stylized
  Script
Dot Matrix Characters: Dot matrix characters can be read by MLOCRs if the dots that
form each character touch one another or are not separated by more than 0.005 inch.
Type Size:
   8 Points (Minimum)
   10 Points (Preferred)
   12 Points (Preferred)
   18 Points (Maximum)
MLOCRs can recognize type sizes between 8 and 18 points. The recommended type
size is 10 to 12 points for maximum MLOCR recognition.
        If you use type as small as 8 points for an address, you should print the address
        in all uppercase characters to satisfy the MLOCR's minimum height and width
        requirements. In some type styles, 8-point uppercase characters do not meet the
        minimum 0.080-inch height requirements of MLOCRs.
        If you use 18-point type, you should check that the characters are not taller than
        the maximum size shown on Notice 67, Automation Template. Some styles of
        18-point type are larger than others.


                                          4-65
Address Block Skew: If the address block is slanted too much, the MLOCR might not
be able to see a clear vertical space between each character. For this reason, the
address should not be slanted (or skewed) more than 5 degrees relative to the bottom
edge of the mailpiece. This standard is especially important for the proper application of
address labels.




Interfering Print: You should avoid using preprinted forms, labels, or inserts containing
lines (such as dotted rules for address placement), outline boxes (such as borders for
address placement), or prompting words (such as "TO:") in the address area. These
nonaddress elements can interfere with MLOCR recognition of the delivery address.

Print Quality: Print quality is one of the most important factors for successful MLOCR
processing. Address characters should be clean, sharp, dark, and uniformly printed.
Smudges, fill-ins, voids (inking gaps within characters), and splatter (extraneous ink
outside character boundaries) can adversely affect MLOCR processing. The printer,
typewriter, or ink jet printer should be checked and cleaned often to ensure crisp, clear
printing.




                                          4-66
Reflectance and Print Contrast
Reflectance: The ability of paper to reflect light is also an important factor for MLOCR
recognition. The surface containing the address—whether an envelope, card, label, or
insert—should be light enough in color to reflect a sufficient amount of light to the
MLOCR's scanner. Although a white background is preferred, pastels and many other
light colors are acceptable. You can check background reflectance with a USPS®
envelope reflectance meter or its equivalent. A reading of at least 50 percent in the red
portion and 45 percent in the green portion of the optical spectrum is desirable.

Paper stocks used for envelopes and cards—as well as inks used for addresses and
any other printing on the outside of letter-size mail—should not be fluorescent or
phosphorescent. The glow from such paper stocks and inks can cause malfunctions
during mail processing.

For window envelopes and labels, the MLOCR works best if the reflectance of the insert
or label is about the same as that of the envelope. Some envelope inserts (checks, for
example) are printed with a background pattern that can confuse the MLOCR. Designs
and printing in the background might appear attractive to the human eye, but they can
be mistaken for part of the address information by the MLOCR.

Resolve any issues about print, design, and color with your local Mailpiece Design
Analyst (MDA) before you produce your mailpiece. Your MDA will work with you to
design an effective mailpiece and ensure quality processing.

Print Contrast Ratio (PCR): PCR is the contrast between the background and the
printed address characters. This contrast can be measured with a USPS® envelope
reflectance meter or its equivalent. A PCR of at least 40 percent in both the red and the
green portions of the optical spectrum is needed. Reverse printing (white or light-
colored characters on a dark background) is not MLOCR-readable and therefore not
acceptable.

Background patterns that appear solid to the human eye but are printed in a halftone
screen can interrupt MLOCR recognition. The dot structure in halftone screenings
should be at least 200 dots (or at least 100 pairs of lines) per inch or at least a 20
percent screen (dot size).

Other background patterns with a PCR greater than 15 percent in the red and the green
portions of the optical spectrum should not be used in the MLOCR read area.




                                          4-67
Barcodes
POSTNET™ and Intelligent Mail® Barcodes (IM™ barcodes): Barcoding is also an
important aspect of mailpiece design. Because there are no MLOCR readability
requirements for barcodes, you have more latitude in selecting colors, type styles, and
the location for address printing if you barcode your mail. To receive automation
discounts, your letter-size mailings must be 100% delivery point barcoded.
Nonbarcoded pieces enter the same mailstream as a nonautomation presorted mailing.

Description and Benefits: The POSTNET™ (Postal Numeric Encoding Technique)
barcode was developed by The Postal Service® to encode ZIP Code™ information on
letter mail for rapid and reliable sorting by BCSs. The POSTNET™ barcode can
represent a five-digit ZIP Code™ (32 bars), a nine-digit ZIP+4® code (52 bars), or an
eleven-digit delivery point code (62 bars).

Delivery Point Barcode: The POSTNET™ Delivery Point Barcode (DPBC) was
developed by The Postal Service® to identify each of the 134 million delivery points in
the United States. This barcode system significantly reduces the time it takes carriers to
sort letter mail before delivery.

The DPBC is formed by adding 10 bars to an existing ZIP+4® barcode. The 10 bars
represent two additional digits (normally the last two digits of the street address, Post
Office™ box, rural route number, or highway contract route number). DMM® C840
contains address coding rules for the DPBC, including rules for handling address
anomalies.




POSTNET™ Format Description: The POSTNET™ barcode is always printed in a
format that begins and ends with a frame bar (full or tall bar). To ensure POSTNET™
accuracy during mail processing, a correction character (five bars) must be included
immediately before the rightmost frame bar of all POSTNET™ barcodes.
                                         4-68
The correction character is always the digit that, when added to the sum of the other
digits in the barcode, results in a total that is a multiple of 10. For example, the sum of
the ZIP+4® barcode 12345-6789 is 45. The next higher multiple of 10 is 50, so the
correction character is 5 (50 minus 45).

Code Characters: Each code character is made up of five bars, which together
represent a single numeric digit. Specific combinations of two full bars and three half
bars represent the digits 0 through 9. Only 10 combinations are valid code characters—
they represent all possible combinations of two full bars and three half bars.

These combinations are central to the error-recovery of POSTNET™ because the
system interprets as an error the combination of five bars containing other than two full
and three half bars.

Barcode Placement: If you apply the POSTNET™ or Intelligent Mail barcode to your
outgoing letter mail, you may print the barcode in the lower right corner or as part of the
address block. MLOCR-applied barcodes are always printed in the lower right corner of
the mailpiece.

Barcode Placement Areas:




Address Block Barcoding: With this method, the barcode is not subject to the strict
positioning requirements of the barcode clear zone. The address block barcoding option
is the most desirable method of choice. If you desire printing the POSTNET™ barcode
as part of the address block, you must locate the barcode in one of the following
positions in the address.
                                          4-69
Barcode Clearances: An address block barcode requires certain clearances relative to
any printing and the edges of the window or address label. This allows the barcode
sorter to successfully locate the barcode. As shown in the diagram below, a clear space
of 1/25‖ is required above and below the POSTNET™ barcode, 0.028" above and below
the Intelligent Mail barcode and 1/8‖ is required to the left and the right of either of the
barcode.

Address Block Barcode Placement Options:
           Example A                                            Example B




Above Address (Preferred)                          Below Address (Acceptable)

              Example C                                         Example D




Below Optional Endorsement Line                                 Above Optional
Endorsement
and/or Keyline Information (Preferred)                          and/or Keyline Information
(Acceptable)

You may not apply the POSTNET™ or Intelligent Mail barcode anywhere between the
recipient line and the city, state, and ZIP Code™ line of the address (that is, do not
place the barcode between any lines of the delivery address).

Conventional Lower Right Corner: POSTNET™ or Intelligent Mail barcodes printed
in the lower right corner of letter mail must be positioned to meet specifications. The first
(leftmost) bar of the barcode should appear between 3 ½ inches and 4 ¼ inches from
the right edge of the mailpiece.

Lower Right Corner Barcode:




                                            4-70
Barcode Printing
Background Reflectance: The area of the mailpiece where the barcode is to be placed
(address block or lower right corner) should be uniform in color and produce a minimum
reflectance of 50 percent in the red portion and 45 percent in the green portion of the
optical spectrum, when measured with a USPS® envelope reflectance meter or its
equivalent.

Although a white background is preferred, pastels and other light colors are acceptable.
The mailpiece should not be fluorescent or phosphorescent because the glow can
cause malfunctions during mail processing.

Print Reflectance Difference: The BCS responds to the difference between light
reflected from the printed barcode and the background. This difference is defined as
print reflectance difference (PRD). A PRD of at least 30 percent in the red and the green
portions of the optical spectrum are necessary for reading barcodes.

As with MLOCRs, BCSs respond best when the barcode is printed in black ink on a
white background. Other color combinations are acceptable if the minimum PRD of 30
percent exists for the printed barcode. Refer questionable color combinations to your
local Mailpiece Design Analyst (MDA) for testing.

Application: Barcodes can be applied by the mailer, presort house, or by The Postal
Service®. Mailers would apply POSTNET™ codes as their address is created by their
addressing software. Presort houses will apply the barcode when they process and sort
mail. The Postal Service® can apply the barcode either in the pre-process or post-
processing stages of mail processing.

Assistance: Postal Service™ MDA‘s and others in business mail acceptance can help
you meet USPS® guidelines and determine the automation compatibility and readability
of your mailpieces. Also, many companies employ specialists to provide this service to
their companies.

MDAs also take a more proactive approach: they'll help you create the mailpiece from
the beginning of the design process. These analysts have a thorough understanding of
all postal automated processing equipment and mailpiece design standards.

Account Managers and postal business center personnel also can help you with these
guidelines and answer your questions about postage discounts for automation-
compatible mail.




                                          4-71
Intelligent Mail® Barcode: In 2003, the United States Postal Service® (USPS®)
published the Intelligent Mail® Corporate Plan. This plan identified several key
strategies including: Uniquely Identify Mail and Mail Aggregates; Develop and Deploy
an Enabling Infrastructure; and Enhance Address Quality. This plan provided the
following vision: ―To capitalize on the value of information about mail, The Postal
Service® and its customers will place an information-rich code on all mail, aggregates of
mail, and business forms, enabling end-to-end visibility into the mail stream.

In support of this OneCode Vision®, The Postal Service®, in partnership with the
mailing industry, developed the Intelligent Mail® barcode(IM® barcode) (formally known
as the 4-state Customer Barcode). It is the next generation in the evolution of Postal
Service™ barcode technology. It offers a more effective alternative to existing barcodes
by increasing the amount of information that is present on letter and flat mailpieces,
allowing for expanded tracking capability and creating greater visibility into the
mailstream. The Intelligent Mail® barcode is a height-modulated barcode that encodes
up to 31-digit string of mailpiece data into 65 vertical bars. These bars may be present
in one of four possible states: full bar, ascender, tracker and descender.

The 31-digit Intelligent Mail® barcode (65 bars) is slightly longer than the 11-digit
POSTNET™ barcode (62 bars) and offers mailers certain flexibility in choosing the
height and width of the barcode. Due to mailpiece real estate concerns and barcode
print quality, some mailers expressed an interest in a shorter-height Intelligent Mail®
barcode. Evaluations were conducted with letter mail that allowed The Postal Service®
to reduce the height requirement by 16.3% for the September 2006 offering.
Consequently, the read-rate and dimension analysis supported by an extensive flats
test was used as a decision-making tool in determining the feasibility of a revised
Intelligent Mail® barcode with further reduced vertical dimensions.

As a result of this, in July 2007, The Postal Service® published a new Specification for
the Intelligent Mail® barcode with even shorter bar heights with the full bar ranging in
height between 0.125 and 0.165 inches.

Intelligent Mail® barcode Description: The USPS® is transitioning to the new
Intelligent Mail® barcode as an improvement to the existing POSTNET™ barcode. The
Intelligent Mail® barcode is a 65-bar USPS barcode used to sort and track letters and
flats.

Unlike the POSTNET™ barcode that only contains the delivery point ZIP Code™, the
new Intelligent Mail® barcode contains additional fields like the Service Type Indicator,
Sequence number and Mailer ID which expands your ability to track individual pieces
and provides greater visibility into the mailstream.

With this Intelligent Mail® barcode, you can request services like tracking and address
correction all in one barcode. The Intelligent Mail® barcode allows you to number your
mail so that you can uniquely identify each mailpiece in your mailing and contains a
Mailer ID Field that allows you to obtain data about your mailings.
                                          4-72
Decoding the Intelligent Mail® barcode: There are two formats of the Intelligent
Mail® barcode. The format you use depends upon the Mailer ID assigned to you by the
USPS.




Barcode ID: The barcode identifier is a 2-digit field that is reserved to specify the
presort makeup. If you currently do not use an Optional Endorsement Line, you will
simply populate this field with ―00‖.

Service Type Identifier: Used to request special services such as tracking or address
correction. If you are not requesting special services on the mailpiece, you should use
one of the following codes depending upon the class of mail to which the Intelligent
Mail® barcode is applied: 700 for First-Class Mail®; 702 for Standard mail; 704 for
Periodicals; 706 Bound Printed Matter.

Mailer ID (MID): This is an ID that the USPS will assign to you to use in your Intelligent
Mail® barcodes. The USPS® will issue you a 9-digit or a 6-digit Mailer ID based on your
mail volume. Mailer IDs are obtained by making a request from the subscription process
helpdesk supporting your product or service. Subscribers of OneCode Confirm™ should
call 800-238-3150 and Confirmation and Extra Services customers should call 877-264-
9693. OneCode ACS™ subscribers should call 800-331-5746. Customers participating
in USPS testing initiatives or have an immediate need for using the Mailer ID should
contact the PostalOne!® Help Desk at 800-522-9085.

Sequence or Serial Number: You can use this field to uniquely identify your individual
mailpieces. If you are assigned a 9-digit MID, you will have 6-digits to identify and
number your mailpieces. If you are assigned a 6-digit MID, you will have 9 digits to
identify and number your mailpieces.



                                          4-73
Delivery Point ZIP Code™: Populate this field with delivery point ZIP Code™ of the
mailpiece.

       For detailed information on how to populate the Intelligent Mail® barcode, please
       access the Intelligent Mail® barcode specification and Technical Resource Guide
       @ http://ribbs.usps.gov/onecodesolution/

Full-Service Automation Option: Access to full-service automation option benefits
requires the use of Intelligent Mail barcodes to uniquely identify each mailpiece. In
addition to the automaton standards, all pieces entered under the full-service option
must individually meet the eligibility requirements for automation prices according to
their class and shape.

First-Class Mail, Periodicals, and Standard Mail letters and flats and Bound Printed
Matter flats meeting eligibility requirements for automation or carrier route prices, except
for Standard Mail ECR saturation flats or Standard Mail ECR letters paying ECR flats
prices, are eligible for the full-service automation option.

All pieces entered under the full-service automation option must:
    Bear a unique Intelligent Mail barcode
    Be part of a mailing using unique Intelligent Mail tray labels on all trays and sacks
    Be part of a mailing using unique Intelligent Mail container barcodes on all
    destination-entry pallets and other containers prepared under 8.0 or as part of a
    customer/supplier agreement.
        o A customer/supplier agreement is authorized with a service agreement signed
           by the mailer, the USPS District Manager, Customer Service, and the USPS
           Processing and Distribution Center manager.
        o The service agreement contains provisions regarding mailer and USPS
           responsibilities
    Be part of a mailing using an approved electronic method to transmit a postage
    statement and mailing documentation to the PostalOne! system
    Be scheduled for an appointment through the Facility Access and Shipment Tracking
    (FAST) system when deposited as a DBMC, DADC, or DSCF drop-shipment




                                           4-74
5 EXTRA SERVICES
Extra services are enhancements that, for a fee in addition to postage, provide greater
security and accountability for mail, convenience to the sender, or improved handling.
Extra services are not available with Periodicals. Not all extra services are available for
all classes of mail, and only certain services may be combined for the same mailpiece.

Extra Services include:
CERTIFICATE OF MAILING
CERTIFIED MAIL
COLLECT ON DELIVERY
DELIVERY CONFIRMATION
EXPRESS MAIL INSURANCE
INSURED MAIL
REGISTERED MAIL
RESTRICTED DELIVERY
RETURN RECEIPT
RETURN RECEIPT FOR MERCHANDISE
SPECIAL HANDLING


Certificate of Mailing
Certificate of Mailing is available for the following classes of mail:
        First-Class Mail®
        Priority Mail®
        Standard Mail®
        Package Services
Certificate of mailing provides evidence of mailing only.

Record of delivery is not provided.
May be combined with parcel airlift (PAL), special handling.
Use Form 3817 for single pieces. Fee is affixed to form or paid with permit imprint.
Use Form 3606 for bulk mailings of identical-weight pieces. This certificate states only
the total number of pieces mailed and must not be used as an itemized list or with
permit imprint mailings. Fee is affixed to form.
Deposit: may not be placed in a Post Office™ mail drop or in a street letterbox.




                                             5-75
Certified Mail™
Certified Mail™ is available for the following classes of mail:
        First-Class Mail®
        Priority Mail®

Provides sender with mailing receipt.

Delivery record is maintained by USPS.

No insurance provided.

May be combined with restricted delivery and return receipt services.

Use PS Form 3800.



Collect on Delivery (COD)
COD is available for the following classes of mail:
      Express Mail® (except Express Mail® Military Service)
      First-Class Mail®
      Priority Mail®
      Package Services
      Registered Mail™

May be combined with Delivery Confirmation®, Registered Mail™, restricted delivery,
return receipt, Signature Confirmation®, special handling.

USPS® collects from recipient the postage and price of an item that was not prepaid
and provides the amount collected to the mailer.

Amount collected from recipient may not exceed $1,000.

Delivery record is maintained by USPS®.

A record of mailing is maintained at the mailing Post Office™.

Delivery Confirmation® and restricted delivery are not available with Express Mail®
COD.

Use Form 3816.

Deposit: may not be placed in a Post Office™ mail drop or in a street letterbox.
                                            5-76
Delivery Confirmation™
Delivery Confirmation™ is available for the following classes of mail:
       First-Class Mail® parcels
       Priority Mail®
       Standard Mail® parcels (electronic option only)
       Package Services parcels.

This service may be obtained in two forms:
1. An electronic option for mailers who apply identifying barcodes to each piece,
   provide an electronic file, and retrieve delivery status information electronically.
2. A retail option for mailers who retrieve delivery status on the Internet at
   www.USPS®.com or by calling 1-800-222-1811. No record is kept at the office of
   mailing.

Provides the date and time of delivery or attempted delivery.

Delivery Confirmation® may be purchased at the time of mailing only.

Not available for APO/FPO destinations; U.S. territories, possessions, and freely-
associated states in 608.2 (except for Puerto Rico and U.S. Virgin Islands, to which
service is available); mail paid with precanceled stamps.

May be combined with: COD, insured mail, Registered Mail, return receipt for
merchandise (PS Form 3804), and special handling.

Restricted delivery and return receipt is available if purchased with insurance for over
$200, COD, or Registered Mail.

Use Form 152 (retail) or Label 314 (electronic).



Express Mail® Insurance
Provides automatic indemnity coverage of Express Mail® up to $100 at no extra charge
for items that are lost, rifled, or damaged.

Additional insurance may be purchased up to a maximum liability of $5,000.

For negotiable items, currency, or bullion, the maximum liability is $15.

May be combined with return receipt, COD (except Express Mail® Military Service).



                                           5-77
Insured Mail
Insured Mail is available for the following classes of mail:
      Standard Mail machinable and irregular parcels (bulk insurance only)
      Package Services
      Merchandise sent at First-Class Mail or Priority Mail
      Parcel Select.

Provides indemnity coverage of up to $5,000 for a lost, rifled, or damaged article.

May be combined with: Delivery Confirmation, merchandise return service, parcel airlift
(PAL), Signature Confirmation, and special handling.

Return receipt and restricted delivery available for items insured for more than $200.
Return receipt for merchandise available for items insured for $200 or less.

A mailing receipt is provided with all pieces. For mail insured for $200 or less, the USPS
maintains delivery information (not including a signature).

For mail insured for more than $200, the USPS maintains a delivery record (including
recipient's signature).

Insurance may be purchased online for indemnity coverage up to $500.

Use PS Form 3813 for items insured for $200 or less.
Use PS Form 3813-P for items insured for more than $200.




                                          5-78
Registered Mail™
Is the most secured service offered by USPS®. Provides sender with a written mailing
receipt and an optional delivery record is maintained by the USPS®.

Available for the following classes of mail:
       First-Class Mail®
       Priority Mail®

A record of mailing is maintained at the mailing Post Office™. An additional fee is
required.

May be combined with COD, Delivery Confirmation™, restricted delivery, return receipt,
and Signature Confirmation™.

Insurance is not available for items with no value. Insurance is provided and included in
fee for items valued up to a maximum liability of $25,000. Handling charges apply for
articles valued over $25,000.

Use Form 3806 and Label 200.

Deposit: must be presented to a retail employee at a Post Office™ or a rural carrier.



Restricted Delivery
Directs delivery only to addressee or addressee's authorized agent.

Available for First-Class Mail®, Priority Mail®, and Package Services when purchased
with one of the following:
       Certified Mail™
       COD
       insured for more than $50
       Registered Mail™

May be combined with Delivery Confirmation®, parcel airlift (PAL), return receipt,
Signature Confirmation®, special handling.

Use Form 3811.




                                               5-79
Return Receipt
Provides sender with evidence of delivery (to whom the mail was delivered and date of
delivery).

Available for Express Mail®, First-Class Mail®®, Priority Mail®, and Package Services
when purchased with one of the following: Certified Mail™, COD, mail insured for more
than $50, Registered Mail™.

May be requested at the time of mailing or after mailing.

A return receipt requested at the time of mailing also supplies the recipient's actual
delivery address if different from the address used by sender.

When purchased at the time of mailing, the mailer may choose to receive the return
receipt by mail or electronically. At this time, electronic Return Receipts are not
accepted by all court jurisdictions.

May be combined with Delivery Confirmation®, parcel airlift (PAL), restricted delivery,
Signature Confirmation®, special handling.

Use Form 3811 at the time of mailing or Form 3811-A after mailing.



Return Receipt for Merchandise
Provides sender with a mailing receipt and a return receipt.

Return receipt supplies the recipient's actual address if different from the address used
by the sender.

Available for merchandise sent as Priority Mail, Standard Mail machinable and irregular
parcels, Package
Services, or Parcel Select.

Delivery record is maintained by the USPS®.

Use Form 3804 and Form 3811.




                                           5-80
Signature Confirmation™
Provides the date and time of delivery or attempted delivery. May be purchased at the
time of mailing only.
A delivery record, including the recipient's signature is maintained by the USPS® and is
available, via fax or mail, upon request.
No acceptance record is kept at the office of mailing.
This service may be obtained in two ways:
   1. an electronic option for mailers who apply identifying barcodes to each piece,
       provide an electronic file, and retrieve delivery status information electronically
   2. a retail option for mailers who retrieve delivery information on the Internet at
       www.USPS®.com or by calling 1-800-222-1811.
Available for First-Class Mail® parcels, Priority Mail®, and Package Services parcels.
Not available for APO/FPO destinations; U.S. territories, possessions, and freely-
associated states in 608.2 (except for Puerto Rico and U.S. Virgin Islands, to which
service is available); mail paid with pre-canceled stamps.
May be combined with COD, insured mail, Registered Mail™, or special handling.
Restricted delivery is available if purchased with insurance for over $50, COD, or
Registered Mail™.
Use Form 153 (retail) or Label 315 (electronic).



Special Handling
Provides preferential handling, but not preferential delivery, to extent practicable in
dispatch and transportation.
Available for First-Class Mail®, Priority Mail® and Package Services.
Must be used for honeybees and day-old poultry sent as Parcel Post®.
May be combined with COD, Delivery Confirmation®, insured mail, parcel airlift (PAL)
(Package Services only), return receipt for merchandise, or Signature Confirmation®.




                                            5-81
Form 3877 - Firm Mailing Book

If three or more extra services articles are presented for mailing at one time, the mailer
may use PS Form 3877 (firm sheet) or privately printed firm sheets. Privately printed or
computer-generated firm sheets that contain the same information as PS Form 3877
may be approved by the local postmaster.

The mailer may omit columns from PS Form 3877 that are not applicable to Registered
Mail™.

The mailer submits the forms in duplicate and receives one copy as a mailing receipt
after the postal employee accepting the mailing verifies the entries.

All entries made on firm sheets must be made by typewriter, ink, or ballpoint pen.
Alterations must be initialed by the mailer and accepting employee. All unused portions
of the addressee column must be obliterated with a diagonal line.




                                           5-82
6 ANCILLARY SERVICE ENDORSEMENTS
An Ancillary Service Endorsement (ASE) allows the sender to obtain on request
(provided the appropriate endorsement is used) the addressee's new (forwarding)
address (if the addressee filed a Change-of-Address Order with The Postal Service®) or
the reason for nondelivery.
These endorsements also provide The Postal Service® with instructions for the
disposition of Undeliverable-As-Addressed (UAA) mail. These new endorsements
provide a simpler and more consistent system than the previous endorsements. UAA
mail is forwarded, returned to sender, or treated as dead mail as authorized for the
particular mail class. Alternative addressing formats may not be used on mail with any
ancillary service endorsement under. Mail with an ASE must bear a complete domestic
return address on the front of the mailpiece.
On First-Class Mail®, the following endorsements may be used as an updating method
to meet the move update standard:

Return Service Requested: If UAA, the mailpiece is returned with the new address or
reason for non-delivery; no charge.
Temporary Return Service Requested: If UAA and a temporary change-of-address
has been filed, the mailpiece is forwarded at no charge. No separate notice of a new
temporary change-of-address is provided.
Address Service Requested:
  Months 1–12 - The mailpiece is forwarded; no charge; a separate notice of the new
  address is provided
     o an address correction fee is charged
  Months 13–18 - The mailpiece is returned with the new address attached
     o no charge
  After month 18 or if undeliverable - The mailpiece is returned with reason for
  nondelivery attached
     o no charge
Change Service Requested: Separate notice of new address or reason for nondelivery
provided; in either case, address-correction fee is charged; mailpiece is not forwarded
or returned but disposed of by The Postal Service®. This endorsement option is
available for First-Class Mail® only when used in conjunction with electronic Address
Change Service (ACS™).




                                         6-83
Optional Ancillary Service Endorsement Locations

Ancillary service endorsements must be placed in one of four positions:
1. Directly below the return address.

2. Directly above the delivery address block.

3. Directly to the left of the postage area and below or to the left of any price marketing.

4. Directly below the postage area and below any price marking.




                                           6-84
The following USPS® diagram describes its actions for various endorsements. The
references are to various DMM® sections.
For a detailed description of USPS® actions, see 507.1.5. For Periodicals, see 507.1.5.2.
Mailer Endorsement                    Priority Mail® and Standard Mail® Package Services
and USPS® Action                      First-Class Mail®
Address Service Requested1
Forwarding and return. New
separate address notification
provided.
Months 1 through 12: mailpiece        Forwarded at no      Forwarded at no Forwarded locally at no
forwarded; notice of new address      charge.              charge.         charge; forward out of
provided, address correction fee                                           town as postage due.
charged.
Months 13 through 18: mailpiece       Returned at no       Weighted fee      Return postage charged at
returned with new address             charge.              charged.2         appropriate single-piece
attached.                                                                    price.
After 18 months or if                 Returned at no       Weighted fee      Returned if undeliverable
undeliverable at any time:            charge.              charged. 2        or if addressee refused to
mailpiece returned with reason for                                           pay postage due.
nondelivery attached.                                                        Forwarding (where
                                                                             attempted) and return
                                                                             postage charged at
                                                                             appropriate Package
                                                                             Services single-piece
                                                                             price.
Return Service Requested
No forwarding, only return. New       No charge.           Appropriate       Return postage charged at
address notification provided or                           single-piece      appropriate single-piece
reason for nondelivery attached                            First-Class       price.
                                                           Mail® or Priority
                                                           Mail
                                                           price charged.
Change Service Requested1,3
No forwarding or return. New          Manual notice:       Manual notice:    Manual notice: fee
address notification provided.        N/A.                 fee charged       charged
                                                           Electronic        Electronic notice: fee
                                      Electronic notice:   notice: fee       charged
                                      fee charged          charged
Separate notice of new address or     Automated letters:   first two
reason for nondelivery provided;      first two notices—   notices—No fee
mailpiece disposed of by USPS®.       No fee charged       charged
                                      additional           additional
                                      notices—fee          notices—fee
                                      charged              charged
                                   (Table continued on next page)


                                                   6-85
    Forwarding Service Requested
    Forwarding and return. New address
    notification provided only with return
    *Does NOT meet the Move Update regulation

    Months 1 through 12: mailpiece              Forwarded at     Forwarded at   Forwarded locally at no
    forwarded.                                  no charge        no charge.     charge; forward out of town
                                                                                as postage due.
    Months 13 through 18: mailpiece             Returned at no   Weighted fee   Return postage charged at
    returned with new address attached.         charge.          charged.2      appropriate single-piece
                                                                                price.
    After 18 months or if undeliverable at      Returned at no   Weighted fee   Returned if undeliverable or
    any time: mailpiece returned with           charge.          charged.2      if addressee refused to pay
    reason for nondelivery attached.                                            postage due. Forwarding
                                                                                (where attempted) and
                                                                                return postage charged at
                                                                                appropriate Package
                                                                                Services single-piece price.
    Temp—Return Service Requested
    Piece returned with new address or          No charge.       N/A            N/A
    reason for non-delivery attached. If
    temporary change of address, piece
    forwarded; no separate notice of
    temporary change of address provided.
    No Endorsement                                                          Same as USPS® action for
                                                                            "Forwarding Service
    UAA handled by class of mail.               Same as         Mailpiece   Requested," except Bound
                                                USPS® action disposed of by Printed Matter disposed of
                                                for "Forwarding USPS®.      by USPS®. Parcel Post®,
                                                Service                     Media Mail® and Library
                                                Requested."                 Mail with no endorsement
                                                                            obligates the mailer to pay
                                                                            any applicable forwarding
                                                                            and return postage charges
                                                                            at the Package Services
                                                                            single-piece price.


1
  For Address Change Service with First-Class Mail® and Priority Mail®, see 507.1.5.1, for ACS™ with Standard
Mail® see 507.1.5.3a.
2
  Weighted fee is the appropriate single-piece First-Class Mail® or Priority Mail® price for the piece plus the
nonmachinable surcharge if it applies (101.1.2), multiplied by 2.472 and rounded up to the next whole cent. For
letter-size weighted fee prices, see 243.1.7.2.
3
  For First-Class Mail® and Priority Mail®, Change Service Requested is only available with electronic Address
Change Service (ACS™). Only available for Priority Mail® pieces containing perishable matter that bear the
endorsement "Perishable." Delivery Confirmation® and Signature Confirmation® are the only two special services
permitted with this endorsement.




                                                       6-86
7 REMITTANCE MAIL
BUSINESS REPLY MAIL
COURTESY REPLY MAIL
METER REPLY MAIL

If your business receives most of its orders and payments by mail, your business
depends financially on its incoming mail.

Orders and payments are usually a response to a mailing to customers, which is why
these responses are called reply mail.

There are three basic types of reply mail:
1. Business Reply Mail (BRM)

2. Courtesy Reply Mail (CRM)

3. Meter Reply Mail (MRM)

BRM and CRM are the most used and similar in style however, there is a significant
difference.

Reply mail offers two major advantages:
1. Faster Response

2. More Accurate Delivery

The easier you make it for your customer to respond, the quicker the return will come. A
preaddressed (and perhaps postage-paid) envelope containing the customer's order or
check is easy to mail. Customers have positive attitudes about creditors, marketers, and
fund-raisers who show foresight and consideration by providing reply mail cards,
envelopes, or labels.

A Postal Service™ Mailpiece Design Analyst (MDA) can determine whether your BRM,
CRM and MRM pieces meet the standards.

Size Standards:
Mailpiece    Card             Card           Letter         Letter
Dimension    Minimum          Maximum        Minimum        Maximum
Height       3 ½ inches       4 ¼ inches     3 ½ inches     6 1/8 inches
Length       5 inches         6 inches       5 inches       11 ½ inches
Thickness    0.007 inches     0.016          0.007 inches   ¼ inches
                              inches

                                           7-87
Business Reply Mail (BRM)
BRM enables you to receive First-Class Mail® back from customers while paying postage
only on the pieces that your customers return. You may distribute cards, envelopes, self-
mailers and other types of mail pieces as BRM.

BRM requires that postage be paid by you (the sender) if your customer (the respondent) mails
the reply back to you. BRM is appropriate when your customer needs a little extra inducement
to reply—in other words, the response or its timing is not assured. This type of reply mail is
frequently used by direct marketers seeking orders, researchers pursuing questionnaire
responses, or magazine publishers soliciting subscriptions. The extra inducement is provided
because your customer does not need to affix the return postage, does not have to supply a
postcard or envelope, and does not need to put an address on the mail piece. This many times
can improve response rates by up to 60% or more.

BRM Design Format




                                            7-88
Business Reply Mail Layout Guidelines (507.9.8)




                                                  7-89
Courtesy Reply Mail (CRM)
CRM is a good choice for responses that are fairly certain, such as payments for
mailed invoices. With CRM, you (the sender) provide your customer (the respondent)
with a preprinted return envelope or card without postage. The customer pays the
return postage.

Although the customer usually pays the return postage, the preaddressed postcard or
envelope adds convenience and ensures addressing accuracy.
Courtesy Reply Mail Layout Guidelines




                                        7-90
Meter Reply Mail
Meter stamps may be used to prepay postage on CRM postcards and envelopes.

An additional format standard for MRM is its legend. The words "NO POSTAGE STAMP
NECESSARY POSTAGE HAS BEEN PREPAID BY:" are printed above the delivery address.

Meter Reply Mail




Qualified Business Reply Mail (QBRM)
QBRM provides an automated method for sorting, counting, and rating BRM. The processing
of your mail on automated equipment presents an excellent opportunity for increasing
efficiency, improving service, and protecting postal revenues. QBRM is recommended for
large returns of BRM as it will benefit the mailer with the least expensive amount of service
fees. You may obtain a reduced BRM fee by participating in QBRM. Participation requires
preparing BRM pieces as described in DMM® E150.

If you want to participate in QBRM, you must do the following:
   Submit PS Form 6805, Qualified Business Reply Mail (QBRM) Application and Approval, to
   the postmaster or the manager of business mail entry at the Post Office™ to which the BRM
   pieces are to be returned.
   Produce sample BRM pieces using ZIP+4® barcodes and FIM positives provided by The
   Postal Service®.
   Provide a preproduction sample of each BRM piece to the Mailpiece Design Analyst (MDA)
   for evaluation.
   Have a valid BRM permit.
   Pay the annual BRM permit and accounting fees.
   Obtain authorization to participate in QBRM.
   Follow all requirements in DMM® E150.



                                             7-91
International Business Reply Service (IBRS)
IBRS is similar to domestic business reply mail service. IBRS allows you to distribute
envelopes and cards in certain foreign countries for return to you in the United States
without prepaying postage.

With IBRS, you can extend your reach throughout the world, opening new markets or
improving current markets.

As with domestic business reply mail, you pay only for IBRS pieces mailed back to you
by the respondents.

Be sure to take your IBRS samples to the Post Office™ for evaluation and approval. By
using this service, you can save time and money. For complete information on
designing and using IBRS, see Publication 513, International Business Reply Service,
and the International Mail Manual (IMM).



Printing Standards
Nonmailable Pieces: All pieces not meeting the minimum size standards are
nonmailable.

Nonmachinable Surcharge: Letter-rate BRM that weighs 1 ounce or less is
nonmachinable and subject to the nonmachinable surcharge if it meets the criteria for
‗Nonmachinable Characteristics‘. In addition, any such pieces are not eligible for the
QBRM discount.

Nonmachinable letter-rate First-Class Mail® is subject to the applicable surcharge if it
meets the criteria for ‗Nonmachinable Characteristics‘.

Nonmachinable mail pieces are not automation-compatible.




                                         7-92
Facing Identification Marks (FIM)
The facing identification mark (FIM) serves to orient and separate certain types of First-
Class Mail during the facing-canceling process.

Mailers must use the appropriate FIM as follows:
   All letter-size Business Reply Mail (BRM)
   All letter-size Permit Reply Mail (PRM)
   Letter-size Courtesy Reply Mail (CRM) and Meter Reply Mail (MRM) provided as
   enclosures in automation-price mailings
   Letter-size mail with IBI printed with non-fluorescent ink directly onto the envelope by
   an IBI meter or a PC postage system must use FIM D.
   Cards and letter-size envelopes containing absentee balloting materials
   A FIM must not be used on other types of mail, except that a FIM may be used on a
   letter-size envelope with a permit imprint indicia when that envelope is designed for
   use as a reusable mailpiece. A FIM used for this purpose must be the appropriate
   FIM for the postage payment method on the returned envelope.

The FIM is a pattern of vertical bars printed in the upper right portion of a mail piece, to
the left of the postage area.


Position of FIM




                                           7-93
The FIM pattern is a nine-bit binary code represented by vertical bars (with
corresponding space element).
   Binary 1 = Printed bar
   Binary 0 = Nonprinted bar (placeholder)

The required FIM pattern as shown below depends on the type of mail and the
presence of a POSTNET barcode as follows:
   FIM A is used for CRM and MRM with a preprinted barcode. (FIM A binary code is
   110010011.)
   FIM B is used for BRM without a preprinted BRM ZIP+4 barcode. (FIM B binary code
   is 101101101.)
   FIM C is used for BRM with a preprinted BRM ZIP+4 barcode and for PRM with a
   preprinted delivery-point barcode. (FIM C binary code is 110101011.)
   FIM D is used for letter-size First-Class Mail with IBI printed with non-fluorescent ink
   directly on the envelope. (FIM D binary code is 111010111.)
                                                      POSTNET
NAME         PATTERN           USE
                                                      BARCODED?
                              CRM                    Yes
FIM A                         MRM


                              BRM                    No
FIM B


                              BRM                    Yes
FIM C


                              IBI meters &           Not required
FIM D                         PC Postage
                              systems

The FIM must meet these specifications:
 A FIM clear zone to the upper right of the address side of the mailpiece must be
maintained and must contain no printing other than the FIM. The exhibit below shows
the FIM position and the FIM clear zone as defined by these boundaries:
   Left: 3 inches from the right edge of the piece.
   Right: 1-3/4 inches from the right edge of the piece.
   Top: top edge of the piece.
   Bottom: 5/8 inch from the top edge of the piece.



                                           7-94
The FIM bars must be 5/8 inch (±1/8 inch) high and 1/32 inch (±0.008 inch) wide and
positioned as follows:
   The right edge of the rightmost bar of the FIM must be 2 inches (±1/8 inch) from the
   right edge of the piece.
   The tops of the FIM bars must be no lower than 1/8 inch from the top edge of the
   piece. The tops of the bars may extend over the top edge of the piece to the back
   (flap) of the piece if at least a 1/2-inch bar height is maintained on the address side.
   The bottoms of the FIM bars must touch the bottom boundary of the FIM clear zone
   or be no more than 1/8 inch above or below this boundary.

It is not necessary to design a FIM or a barcode yourself for your reply mail. Camera-
Ready ―FIM ARTWORK‖ can be obtained at no cost via hardcopy and/or electronically
through your local MDA.

Barcode Clear Zone: You must maintain a clear zone for barcodes on your BRM
pieces. This clear zone must measure 5/8 inch from the bottom edge and 4-3/4 inches
from the right edge of the piece. Delivery point barcoding of BRM pieces is not
permitted.

Paper Weight: For BRM envelopes, you must use paper stock with a basis weight of at
least 20 pounds (the weight of 500 17-by-22-inch sheets).
For cards, you should use card stock with a basis weight of at least 75 pounds or greater, with
none less than 71.25 pounds (measured weight of 500 25-by-38-inch sheets). For BRM cards
sent as QBRM, this basis weight is a minimum requirement. Cards also have a minimum
thickness requirement.

Paper Grain: You should orient the paper grain in cards parallel to the long dimension
of the card. Long-grain cards are damaged less often than cards with the grain parallel
to the short dimension of the card.

Dark Fibers: If your BRM pieces contain dark fibers, make sure that the print contrast
ratio between the fibers and the material is 15 percent or less in the red and the green
portions of the optical spectrum, measured with a reflectance meter produced or
licensed by The Postal Service®.

Print Reflectance: You may use any color ink if there is at last a 30 percent print
reflectance difference (PRD) in the red and the green portions of the optical spectrum
between the ink and the background material of the BRM piece, measured with a
reflectance meter produced or licensed by The Postal Service®.

Black ink on a white background generally satisfies this PRD requirement and is
recommended.




                                             7-95
Background Reflectance: You must make sure that the material used for your BRM
pieces produce a background reflectance of at least 50 percent in the red portion and
45 percent in the green portion of the optical spectrum, measured with a reflectance
meter produced or licensed by The Postal Service®.

Material must have a fluorescence of no more than 4.0 phosphor meter units.
Fluorescent colors generally do not meet this requirement. Fluorescent colors should be
tested and approved by The Postal Service®.

Paying for Replies:
In paying for BRM there are two basic options; the first option is the ―Regular Per-Piece
Fee‖. This option, the letter carrier delivers your BRM pieces and charges you First-
Class Mail® postage plus a BRM per-piece fee. You pay the carrier directly or through
a regular postage due account. This method is recommended if you receive a small
volume of BRM pieces.

The second option in paying for BRM is the ―Advance Deposit Account‖. This option
allows you to set up a BRM Advance Deposit Account with The Postal Service® and
place money on deposit. Your per-piece BRM fee is lower than the regular per-piece
fee. Your mail is processed in a postage-due unit that counts the number of pieces,
calculates postage charges, and debits your postage account. Postage and service
fees for BRM accounts may be paid by cash, postage due and BRM Accounts.




                                          7-96
8 POSTAGE METHODS
POSTAGE STAMPS
PRECANCELED STAMPS
PERMIT IMPRINT
POSTAGE METERS & PC PRODUCTS

Postage Stamps
All postage stamps issued by the United States since 1860, unless specified by USPS®
rules, are valid for postage from any point in the United States or from any other place
where U.S. Mail service operates. Precanceled stamps may be used to pay regular
postage and fees for extra services if the mailpiece is endorsed under the standards for
the class of mail and service requested. Precanceled postage may be used only by
authorized permit holders. Unless accepted by standard, the total postage affixed must
equal at least the postage charge for the class of the mail and, if applicable, the fee for
the extra service requested. All nondenominated postage and makeup rate stamps,
including official mail stamps, are valid at the original rates of issue.


Postage Stamps Invalid for Use

The following are not valid to pay postage for U.S. domestic or U.S.-originated
international mail:
    Postage due, special delivery, special handling, and Certified Mail™ stamps.
    Stamps of other countries.
    United Nations stamps, unless on mail deposited at the United Nations, NY.
    U.S. stamps that are mutilated or defaced; cut from stamped envelopes,
    aerogrammes, or stamped cards; covered or coated in such a manner that canceling
    or defacing marks cannot be printed onto the stamps; or overprinted with an
    unauthorized design, message, or other marking.
    Nonpostage stamps, such as migratory-bird hunting and conservation stamps, U.S.
    saving and thrift stamps.




                                           8-97
Precanceled Stamps
Precanceling is the cancellation of adhesive postage stamps, stamped envelopes, or stamped
cards before mailing. Precanceling may be done by the USPS® or by the mailer under a postal
permit. Precanceled commemorative stamps are not available.

Use of Precanceled Stamps: Precanceled postage is an optional postage payment method
for mailings at Presorted and automation First-Class Mail® rates and at all Standard Mail®
rates.

Prohibited Use of Precanceled Stamps: Precanceled postage stamps may not be
used on matter mailed in boxes, cases, bags, or other reusable mailing containers.
Unless accepted by standard, a precanceled stamp mailing must be accompanied by
documentation subject to the standards for documentation for each class of mail

Amount of Postage: The value of precanceled stamps affixed to each piece in a
mailing must be either the exact amount due or another amount permitted by standard.

Depositing Precanceled Stamp Mailings: Mail bearing precanceled postage must be
presented to the Post Office™ where the permit is held, at the times and places
designated by the postmaster. Mail bearing precanceled postage must not be deposited
in street collection boxes.

Combining Precanceled Stamps With Other Postage Payment Methods:
Precanceled mail may be combined in a mailing with mail paid with other means only if
authorized by the USPS®.

Return Address: Mailpieces with any precanceled imprint must have a complete
domestic return address. If the return address is outside the delivery area of the Post
Office™ of mailing, the mailer must put a cancellation endorsement to the left of the
postage showing city, two-letter state abbreviation, and ZIP Code™ of the office of
mailing; or submit, at the time of mailing, a duplicate of the postage statement and a
sample mailpiece, both in an envelope stamped and addressed to the postmaster at the
Post Office™ shown in the return address; or use the cancellation endorsement "Mailed
From ZIP Code" followed by the 5-digit ZIP Code™ assigned to the postmaster at the
office of mailing.

Markings and Endorsements: Whether the mailer or the USPS® precanceled the
stamps, each mailpiece with precanceled postage must bear markings and
endorsements required for the rate claimed or services requested.




                                           8-98
Authorization to Use Precanceled Stamps: A mailer who wants to use USPS®-
precanceled stamps and stamped envelopes must complete Form 3615 and file it at the
Post Office™ where mailings are to be deposited. If an applicant has a completed Form
3615 on file for other services, precanceled authorization is annotated on the existing
application. There is no fee for this permit.

Revocation of Precanceled Stamp Permit: A permit may be revoked if used in
operating any unlawful scheme or enterprise, or for buying or acquiring stamps or
mailer's precanceled postmarks for other than mailing, or for failing to comply with the
format requirement or instructions on Form 3615. The permit holder has 10 days to file
a written statement showing why the permit should not be revoked. The manager,
customer service support (district), issues the decision on such appeals.




                                         8-99
Permit Imprint (Indicia)
A mailer may be authorized to mail material without affixing postage when payment is
made at the time of mailing from a permit imprint advance deposit account established
with the USPS® for that purpose. This payment method may be used for postage and
extra service fees for First-Class Mail®, Standard Mail®, and Package Services. This
method is not available for Periodicals or Express Mail®.
Permit imprint mailings must contain at least 200 pieces or 50 pounds except
nonpresorted Bound Printed Matter, or as allowed in section 604 of the DMM®, but
higher volumes may be required depending on price claimed. These mailings must be
presented for weighing unless otherwise authorized by Business Mailer Support.

Use of Permit Imprint: Each mailpiece sent under this payment method must bear a
permit imprint indicia showing that postage is paid. Permit imprint indicia may be printed
directly on mailpieces, on labels (including address labels) permanently affixed to
mailpieces, or on mailpiece wrappers, envelopes, and other containers. Except where
the enclosure is prohibited by other standards, matter bearing a permit imprint indicia
may be mailed as an enclosure when postage for the enclosure or the host matter is not
paid with the enclosed permit imprint and the enclosed permit imprint indicia is not
visible when the matter is mailed.

Permit and Fees: A mailer may obtain a permit to use a permit imprint indicia and pay
postage in cash before or at the time of mailing by submitting Form 3615 and the
applicable fee to the Post Office™ where mailings are made. There is no other fee for
the use of a permit imprint indicia as long as the permit remains active, but other fees
(e.g., an annual presort mailing fee) may be due depending on the class of mail to be
prepared.

Application Fee –An application fee is required.

Payment of Permit Imprint Postage: Payment must be made for each mailing, either
in cash or through an advance deposit account, before the mailing can be released for
processing. Funds to pay postage must be deposited as directed by the USPS®. If the
funds paid or on deposit are less than that necessary to pay for a mailing, the difference
must be paid or deposited before the mailing or other permit imprint mailings can be
accepted. Credit for postage is not allowed. Postage may not be paid partly in money
and partly by postage stamps unless permitted by standard.

Preparation of Mailing: All pieces in a permit imprint mailing must be faced (positioned
with all addresses in the same direction, unless counter stacked under the applicable
standards) and meet the preparation standards for the rate claimed. Mail claimed at a
postage rate that varies by zone must be separated by zone when mailed, unless
otherwise authorized by the USPS®.


                                          8-100
Indicia Placement on Mailpiece: Permit imprint indicia must be aligned parallel with
the address of the mailpiece.

The indicia must not encroach on reserved space and can be placed in one of these
four positions:

1. Upper right corner of the mailpiece.

2. Upper right corner of the address area.

3. To the right of the address on an address label.

4. To the right of the address on an insert appearing through a window envelope.

A permit imprint indicia on First-Class Mail® or Priority Mail® must show "First-Class
Mail" or "Priority Mail" (or "Priority"), as applicable; "U.S. Postage Paid"; city and state;
and permit number. The "Priority Mail" (or "Priority") marking may be omitted when
using USPS®-provided Priority Mail® envelopes and containers.

The indicia may show the mailing date, amount of postage paid, or the number of
ounces for which postage is paid. The ZIP Code™ of the permit holder may be shown
directly after the state name or in a separate inscription reading "ZIP Code 00000,"
when that ZIP Code™ does not create uncertainty about the permit holder's correct
address or permit number.

Instead of printing the city and state of mailing in the indicia, the mailer may print
"Mailed From ZIP Code™," followed by the 5-digit ZIP Code™ assigned to the
postmaster of the mailing office. The indicia may also include required rate markings.




                                           8-101
Postage Meters & PC Postage Products
Postage meters and PC Postage products are collectively identified as "postage
evidencing systems." A postage evidencing system is a device or system of
components a customer uses to print evidence that postage required for mailing has
been paid. Postage evidencing systems print indicia, such as meter imprints or
information-based indicia (IBI), to indicate postage payment. Mailers print indicia directly
on a mailpiece or on a label that is affixed to a mailpiece. Mailers must place indicia in
the upper-right corner of the mailpiece or label.

Product Categories
Product categories include postage meters and PC Postage products. Additional
information on product categories and authorized providers is available online at
www.USPS®.com/postagesolutions.

The primary characteristics of postage meters and PC Postage products are described
below.
   Postage meters are devices that allow download, storage, and accounting of
   postage in the device. Meters print indicia that may be IBI or non-IBI, to indicate
   postage payment. IBI are digitally generated indicia that include a two-dimensional
   barcode. Postage meters are available only through authorized providers. Meters
   may only be leased or rented and may not be sold or resold. Some components of
   metering systems may be purchased as authorized by the USPS®.
   PC Postage products are software-based solutions for managing postage accounts.
   Mailers purchase postage using a computer and print indicia using desktop or label
   printers. PC Postage products print IBI indicating postage payment and may print
   directly onto mailpieces, shipping labels, and USPS®-approved customized labels.
   PC Postage products are offered by commercial providers approved by the USPS®.
   PC Postage products are typically offered by providers through subscription service
   agreements. Some components of PC Postage systems may be purchased as
   authorized by the USPS®.
   PC Postage technology also enables authorized postage payment for Internet-based
   services operated by authorized private vendors as well as Click-N-Ship®, a
   shipping label option available at www.USPS®.com.


Authorized Meter Providers:                       Authorized PC Postage Providers:
FRANCOTYP-POSTALIA INC                            ENDICIA.COM (PSI SYSTEMS INC)
HASLER INC                                        PITNEY BOWES INC
NEOPOST INC                                       STAMPS.COM
PITNEY BOWES INC
DATA-PAC MAILING SYSTEMS CORP



                                          8-102
Authorized Classes of Mail
Mailers may use postage evidencing systems to affix or imprint indicia on any class of
mail except Periodicals. Nonprofit mailers will often use postage meters that print up to
three decimals to capture as much postage savings as possible.


Authorization to Use Postage Evidencing Systems
Customers must enter into an agreement with the USPS® for authorization to use
postage evidencing systems. By entering into the agreement, the customer accepts
responsibility for control and use of the system and agrees to abide by all rules and
regulations governing its use. The following conditions apply to these agreements.
   Customers enter into an agreement with the USPS® (e.g., via electronic click-
   through or contract signature) in conjunction with executing a separate agreement
   with the provider for rental, lease, or use of a postage evidencing system. Actual
   implementation of the agreement with the USPS® varies by product category and
   provider and is typically facilitated by the provider on behalf of the USPS®. Postage
   evidencing systems are rented or leased. They may not be purchased, sold, or
   resold.
   A meter lease or rental agreement with an authorized provider is required for
   postage meter use. Registration with an authorized provider is required for PC
   Postage system use.
   The customer must provide updated address information to the provider in the event
   of relocation.
   Postage meter manufacturers must conduct inspection of certain meters on a
   scheduled basis. The customer agrees to make the meter available for provider
   inspection or USPS® examination when required.
   The customer agrees to promptly report a defective meter, or loss or theft of a meter,
   to the provider.


Authorized Possession
Only authorized customers may possess or use postage evidencing systems.
Customers must surrender postage evidencing systems to the provider or its agent
upon termination of the lease or rental agreement or device malfunction.

Denial of Use
USPS® may deny use of a postage evidencing system in the event of failure to comply
with rules and regulations. The customer must make the postage evidencing system
and transaction records available and surrender the system to the provider, the USPS®,
or its agent when notified to do so.




                                         8-103
Appeal Process
Appeals regarding standards in this section or regarding decisions on the basis of
noncompliance must be made in writing to the manager, Postage Technology
Management.

Postage Payment
The value of the indicia on each mailpiece must be the exact amount due for the
applicable rate category and associated criteria such as weight, shape, and zone or
another amount permitted by mailing standards to qualify for worksharing or volume
discounts. Payment options vary by provider and product category. Contact provider for
authorized USPS® payment options.

Legibility of Postage
Postage indicia must be legible (readable by USPS® personnel and mail processing
equipment). Illegible or unreadable (unscannable) indicia are not acceptable as
payment of postage. Reflectance measurements of the indicia and the background
material must meet the standards in DMM® 708.4.0.

Placement of Postage
Mailers must print or apply indicia in the upper-right corner of the envelope or address
label. Mailers must meet the following additional standards when placing indicia on
mailpieces.
   Position indicia at least 1/4 inch from the right edge of the mailpiece and 1/4 inch
   from the top edge of the mailpiece.
   Do not allow the indicia to infringe on the areas reserved for the FIM, POSTNET™
   barcode, or optical character reader (OCR) clear zone.
   Orient indicia with the longest dimension parallel to the address.
   When a FIM is printed with the indicia, position the FIM according to standards in
   708.9.0.
   When placing multiple indicia on an envelope (e.g., for re-date or postage correction)
   the indicia must not overlap each other. Overlapping indicia are not acceptable as
   payment of postage.

Postal Markings
Indicia are comprised of human-readable information. Information-based indicia (IBI)
also contain machine-readable information that identifies the postage evidencing
system, postage payment information, and mail service requested. There are particular
data sets associated with different types of indicia, depending on the product and the
type of mailing.

Indicia may include postal markings related to the class of mail and presort level and an
ancillary service endorsement. All words must be legible and in bold capital letters at
least 1/4 inch high or 18-point type. Refer to the DMM® for standards for placing
ancillary service endorsements on letter-size mailpieces, flat-size mailpieces or parcels.

                                          8-104
Refund Procedures
Refund procedures for unused printed postage, postage purchased but not printed, and
postage lost due to postage evidencing system failure varies by product category.

Unused, dated postage meter indicia are considered for refund only if complete, legible,
and valid. PC Postage indicia refunds are processed under 9.3.3. All other metered
postage refund requests must be submitted as follows:
   The licensee must submit the request. The refund request must include proof that
   the person or entity requesting the refund is the licensee for the postage meter that
   printed the indicia. Acceptable proof includes a copy of the lease, rental agreement,
   or contract.
   The licensee must submit the request, along with the items bearing the unused
   postage, to the licensing Post Office™. The items must be sorted by meter used and
   then by postage value shown in the indicia, and must be properly faced and bundled
   in groups of 100 identical items when quantities allow. The request is processed by
   the USPS®. The postmaster approves or denies the refund request.
   The licensee must submit the refund request within 60 days of the date(s) shown in
   the indicia.
   When the unused metered postage is affixed to a mailpiece, the refund request must
   be submitted with the entire envelope or wrapper. The unused metered postage
   must not be removed from the mailpiece once applied.
   Indicia printed on labels or tapes not stuck to wrappers or envelopes must be
   submitted loose and must not be stapled together or attached to any paper or other
   medium. However, self-adhesive labels printed without a backing may be submitted
   on a plain sheet of paper.
   If a part of one indicium is printed on one envelope or card and the remaining part on
   one or more, the envelopes or cards must be fastened together to show that they
   represent one indicium.
   Refunds are allowable for indicia on metered reply envelopes only when it is obvious
   that an incorrect amount of postage was printed on them.
   The refund request must be submitted with Form 3533. A separate Form 3533 must
   be completed for each meter for which a refund is requested. All identifying
   information and all sections related to the refund requested must be completed.
   Charges for processing a refund request for unused, dated meter indicia are as
   follows:
       o If the total face value of the indicia is $350 or less, the amount refunded is
           90% of the face value. USPS® may process the refund payment locally via a
           no-fee postal money order.
       o If the total face value is more than $350, the amount refunded is reduced by a
           figure representing $35 per hour, or fraction thereof, for the actual hours to
           process the refund, with a minimum charge of $35.




                                         8-105
Date and Postage Corrections
Mailers may print a date correction or additional postage indicium directly on the
mailpiece.
   A date correction indicium is required for any mailpiece not deposited by the date of
   mailing in the indicium. Only one date correction indicium is permitted on a
   mailpiece.
   Indicia for additional postage on short-paid mailpieces must equal the total amount
   of required postage.
   To correct an incorrect mailing date and if the material is letter size, the
   recommended position to place the ―$.00‖ meter impression is on the non-address
   side of the envelope in the upper right hand corner OR on the address side in the
   lower left corner.


Mailing Date Format
The mailing date in meter indicia must meet the format standards in this section. The
year must be represented by all four digits or by the last two digits. Mailers may print the
indicia directly onto mailpieces or onto separate labels or tape affixed to mailpieces. The
mailing date format used in the indicia is also subject to the following conditions.

Complete Date - Mailers must use a complete date for the following:

       All First-Class Mail®, Priority Mail®, and Express Mail® pieces.
           o All mailpieces with Insured Mail, COD, or Special Handling service.
           o All mailpieces prepared with the indicia printed on nonadhesive paper
               (e.g., computer printer paper) and affixed to the mailpiece or used as part
               of an insert in a window envelope.

Month and Year - Mailers may use a complete date or a mailing date consisting solely
of the month and year in the indicia only for the following pieces:
       Standard Mail®
       Package Services

No Date - Mailers must use indicia with no mailing date for prepaid metered reply
postage. As an option, mailers may use indicia with no mailing date for the following
classes of mail:
      Standard Mail®
      Package Services (pieces not subject to 4.5.2a.)




                                          8-106
Mailing Date Accuracy and Mailing Periods: The date or period when mailers may
deposit or present metered mail for mailing is controlled by the mailing date in the
indicia under the following conditions.

Complete Date - Mailpieces bearing a complete date in the indicia must be deposited
or presented on that date, except that pieces entered after the day's last scheduled
collection from the Post Office™ or collection box may bear the actual date of entry or
the date of the next scheduled collection from the Post Office™ or collection box. When
authorized by USPS®, presort mail accepted after midnight may bear the previous day's
date. If the mailer knows that the mail is not to be deposited or presented on the date in
the indicia, the mailer must use a date correction indicium under 4.4.1.

Month and Year - Mailpieces bearing only the month and year in the indicia may be
deposited or presented for mailing on any day during the month shown in the indicia
and through the third day of the following month.

No Date - Mailpieces bearing no date in the indicia may be deposited or presented for
mailing on any date.

Deposit of Mail: Mailers must deposit or enter mailpieces with metered or PC Postage
indicia according to the following conditions.
    Mailers may deposit Express Mail®, Priority Mail®, single-piece rate First-Class
    Mail®, single-piece rate Media Mail®®, and single-piece rate Library Mail items with
    metered or PC Postage indicia at any postal facility, preferably within the area of the
    customer's local Post Office™.
    Mailers must deposit all mail not specified in 4.5.3a as follows:
        o At a postal facility within the ZIP Code™ shown in the indicia.
        o For Presort rate mail, at the authorized mailing office if not at a facility within
           the ZIP Code™ shown in the indicia.
    Mailers also may dropship metered mail according to standards in 705.17.0.




                                           8-107
Permit Imprint (Indicia): A mailer may be authorized to mail material without affixing
postage when payment is made at the time of mailing from a permit imprint advance
deposit account established with the USPS® for that purpose. This payment method
may be used for postage and extra service fees for First-Class Mail®, Standard Mail®,
and Package Services. This method is not available for Periodicals or Express Mail®
and must not be used to pay postage on any mailpiece that is designed for reply
purposes.

Permit imprint mailings must contain at least 200 pieces or 50 pounds, except:

   Other higher minimum quantities may apply, depending on the rate claimed.
   An occasional First-Class™ mailing may contain fewer than 200 pieces if from a
   mailer whose total daily mailings are not much more than 200 pieces but who, to
   cooperate with the Post Office™, presents a part of that mail early in the day.
   A mailing may contain fewer than 200 pieces if it is the completion of a large mailing
   extending over 2 or more consecutive days and the mailer includes an explanation
   on the accompanying postage statement.
   Single-piece rate mailings submitted under the terms of an approved manifest
   mailing system agreement with a minimum volume provision.
   Permit Imprint is the only approved method to evidence postage for USPS® manifest
   mailing.

Use of Permit Imprint: Each mailpiece sent under this payment method must bear a
permit imprint indicia showing that postage is paid. Permit imprint indicia may be printed
directly on mailpieces, on labels (including address labels) permanently affixed to
mailpieces, or on mailpiece wrappers, envelopes, and other containers. Except where
the enclosure is prohibited by other standards, matter bearing a permit imprint indicia
may be mailed as an enclosure when postage for the enclosure or the host matter is not
paid with the enclosed permit imprint, and the enclosed permit imprint indicia is not
visible when the matter is mailed.

Stealth Postage: One of the major benefits available to a USPS® Manifest user is the
ability to disguise how much postage was spent to deliver their merchandise via the
mail. This is commonly referred to as ―Stealth Postage‖. Since the label from a
manifest mailing includes a unique identifier that can be matched to the weight, class of
service and cost of that particular piece of mail, the amount of postage does not need to
be affixed.

Catalog, TV and On-line retailers see this as a significant opportunity to make additional
revenue when using the Postal Service to deliver their goods as they will charge more
than what it costs them to ship. Conversely, if a customer receives their merchandise
and notices that the amount spent was significantly less than what they were charged,
they likely would perceive the retailer was not treating them fairly.


                                          8-108
Permit and Fees: A mailer may obtain a permit to use a permit imprint indicia and pay
postage in cash before or at the time of mailing by submitting Form 3615 and the
applicable fee to the Post Office™ where mailings are made. There is no other fee for
the use of a permit imprint indicia as long as the permit remains active, but other fees
(e.g., an annual presort mailing fee) may be due depending on the class of mail to be
prepared.

Application Fee - An application fee is required.

Payment of Permit Imprint Postage: Payment must be made for each mailing, either
in cash or through an advance deposit account, before the mailing can be released for
processing. Funds to pay postage must be deposited as directed by the USPS®. If the
funds paid or on deposit are less than that necessary to pay for a mailing, the difference
must be paid or deposited before the mailing or other permit imprint mailings can be
accepted.

Preparation of Mailing: All pieces in a permit imprint mailing must be faced (positioned
with all addresses in the same direction, unless counterstacked under the applicable
standards) and meet the preparation standards for the rate claimed. Mail claimed at a
postage rate that varies by zone must be separated by zone when mailed, unless
otherwise authorized by the USPS®.

Weight Standards for Permit Imprint Mailing: All pieces in a permit imprint mailing
must be of identical weight unless authorized by the USPS®.

Depositing Permit Imprint Mailings
Mail must be deposited and accepted at the Post Office™ that issued the permit, at a
time and place designated by the postmaster, except as otherwise provided for plant-
verified Open & Distribute Services.

Revocation of Permit
A permit may be revoked for use in operating any unlawful scheme or enterprise, for
nonuse during any 2-year period, for refusal to provide information about permit imprint
use or mailings, or for noncompliance with any standard applicable to permit imprints.
The permit holder may make a written appeal to the postmaster within 10 days of
receipt of the notice.

Indicia Design, Placement, and Content
Embossed or unembossed permit imprint indicia may be made by printing press, hand
stamp, lithography, mimeograph, multigraph, or similar device. They may not be
typewritten or hand-drawn.




                                          8-109
Permit Imprint Indicia Content and Format
The permit imprint indicia must be legible and of a color that contrasts sufficiently with
the paper and the indicia's background for readability. A different color may be used to
highlight the background of indicia.

Indicia Placement on Mailpiece
Permit imprint indicia must be aligned parallel with the address of the mailpiece.

The indicia must not encroach on reserved space and can be placed in one of these
four positions:
   1. Upper right corner of the mailpiece.
   2. Upper right corner of the address area.
   3. To the right of the address on an address label.
   4. To the right of the address on an insert appearing through a window envelope.

First-Class Mail® and Priority Mail® Format
A permit imprint indicia on First-Class Mail® or Priority Mail® must show "First-Class
Mail" or "Priority Mail" (or "Priority"), as applicable; "U.S. Postage Paid"; city and state;
and permit number. The "Priority Mail" (or "Priority") marking may be omitted when
using USPS®-provided Priority Mail® envelopes and containers. The indicia may show
the mailing date, amount of postage paid, or the number of ounces for which postage is
paid. The ZIP Code™ of the permit holder may be shown directly after the state name
or in a separate inscription reading "ZIP Code 00000," when that ZIP Code™ does not
create uncertainty about the permit holder's correct address or permit number. Instead
of printing the city and state of mailing in the indicia, the mailer may print "Mailed From
ZIP Code," followed by the 5-digit ZIP Code™ assigned to the postmaster of the mailing
office. The indicia may also include required rate markings.

Standard Mail® and Package Services Format
A Standard Mail® or Package Services permit imprint indicia must contain the same
information required in 5.3.6 for a First-Class Mail® indicia, except "First-Class Mail" or
"Priority Mail" (or "Priority") must be omitted. The indicia may include the amount of
postage paid, the weight of the piece, and rate markings as required. The indicia must
not include the mailing date.




                                           8-110
Company Permit Imprint
A company permit imprint is one in which the exact name of the company or individual
holding the permit is shown in the indicia in place of the city, state, and permit number.

A customer may use a company permit imprint if:
   For 1 year from the date of mailing, the permit holder or its agent keeps records for
   each mailing paid with a company permit imprint and makes them available for
   USPS® review on request. These records include (for each version of what was
   mailed, if applicable) the weight of a single piece; the total number of pieces mailed;
   the total postage; the date(s) and Post Office™ (s) of mailing; and other records
   required by the postage rate claimed or the payment method used. A complete
   sample mailpiece must be included for each identical-weight mailing, or each
   commingled or combined version in a nonidentical-weight mailing. Sample pieces
   are not required for nonidentical-piece Standard Mail® and Package Services
   machinable or irregular parcel mailings (e.g., merchandise and other fulfillment
   mailings).
   Each mailpiece bears a complete domestic return address. The return address on
   official mail is subject to the corresponding standards. On unendorsed Standard
   Mail® and Bound Printed Matter, the return address is permitted below the indicia.

Payment Methods for Co-mingled Mail
All of the postage payment methods noted above, except stamps, may be commingled
by a presort bureau. This includes metered mail, mail with precanceled stamps and
permit imprints.




                                          8-111
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              8-112
9 PRIVATE EXPRESS STATUTES

Private Express Statutes (PES)
The Private Express Statutes (PES) are a group of laws under which the U.S. Postal
Service™(USPS®) has the exclusive right, with certain limited exceptions and
suspensions, to carry letters for compensation. The Statutes are based on the provision
in the U.S. Constitution that empowers Congress "to establish Post Offices."

Congress enacted the Statutes to protect the USPS® and thereby enable it to fulfill its
mission of providing mail service to all parts of the country at uniform rates. The
Statutes enable the USPS® to fulfill its responsibilities by preventing private courier
services from competing selectively with the USPS® on its most profitable routes.

What is a letter?

For the purpose of the PES, a letter is defined as a message directed to a specific
person or address and recorded on a tangible object. A more complete definition can be
found at title 39, Code of Federal Regulations (CFR), 310.1.

What does the PES require?

The Statutes provide that letters may be transported outside the U.S. Mail system only if
one or more of the exceptions or suspensions apply, or appropriate postage is paid.
The basic prohibition is against private carriage of letters for other persons without
payment of postage.

Are there any exceptions to the PES?

The law allows for the private carriage of letters under certain circumstances, including
letters:
    Sent with and relating in all substantial respects to the cargo that they accompany.
    Carried by the senders or recipients or their regular, salaried employees.
    Carried by private hands without compensation.
    Carried by special messenger on an infrequent, irregular basis for the sender or
    addressee.
    Carried to or from a postal facility prior or subsequent to mailing.

For example, an individual may transport without restriction his or her own letters, or a
company its own letters (but not those of a parent or subsidiary) if it uses its regular
salaried employees as couriers. Contract couriers would not qualify under this exception
to the Statutes. In addition, the USPS® has suspended the PES for extremely urgent
letters.

                                         9-113
Criteria for Extremely Urgent Letter Suspension of PES:
   Will the letter lose its value or will its usefulness be greatly diminished if it is not
   delivered within the applicable time limits as described in section (1) above, and will
   the private carrier complete delivery within the applicable limit?
   Is the cost of private carriage at least $3.00 or twice the applicable First-Class Mail®
   rate (including Priority Mail®), whichever is higher.


What is an extremely urgent letter as defined by the Private Express Suspension?

Certain extremely urgent letters may be carried by means other than the USPS® and
without the payment of postage. To ensure that this provision is not open-ended, two
tests of urgency are prescribed.

If either of these tests is met, the suspension applies:

   The letter's value or usefulness will be lost or greatly diminished if not delivered
   within specific urgent time limits, and the private carrier meets that time limit.
   Specifically, the time limit for this test for letters dispatched before 12 noon and
   within 50 miles of the intended destination is delivery within 6 hours or by the close
   of the addressee's normal business day.

   Delivery of letters dispatched within the same distance after 12 noon and before 12
   midnight must be completed by 10 a.m. on the addressee's next business day. For
   letters sent more than 50 miles, delivery must be completed within 12 hours or by
   noon of the addressee's next business day.

   It is "conclusively presumed" that a letter is extremely urgent if the amount paid for
   the private carriage of the letter is at least $3.00 or twice the applicable First-Class
   rate (including Priority Mail®), whichever is greater.




                                           9-114
Material Not Considered Letters

Within the meaning of PES, the following forms of communication are not considered
letters:

   Telegrams.
   Interoffice memos
   Financial instruments such as checks, drafts, promissory notes, bonds, stock
   certificates, securities, title policies, and insurance policies, when shipped to, from,
   or between financial institutions.
   Checks and drafts, financial institutions means banks, savings banks, savings and
   loan institutions, credit unions, and their offices, affiliates, and facilities.
   For other instruments, financial institutions means institutions performing functions
   involving the bulk generation, clearance, and transfer of such instruments.
   Abstracts of title, mortgages, and other liens, deeds, leases, releases, and articles of
   incorporation.
   Papers filed in lawsuits or formal quasi-judicial proceedings, and orders of courts
   and quasi-judicial bodies.
   Newspapers and periodicals.
   Books and catalogs consisting of 24 or more bound pages with at least 22 printed,
   and telephone directories.
   Matter sent from a printer, stationer, or similar source to a person ordering such
   matter for use as his or her letters.
   Letters sent to a records storage center exclusively for storage, sent exclusively for
   destruction, retrieved from a records storage center, and sent as part of a household
   or business relocation.
   Tags, labels, stickers, signs, or posters whose type-size, layout, or physical
   characteristics indicate that they are primarily intended to be attached to other
   objects for reading.
   Photographic material sent by a person to a processor, and processed photographic
   material being returned from the processor to the person sending the material for
   process.




                                          9-115
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            9-116
10 HISTORY OF THE POSTAL SERVICE®
THE POSTAL SERVICE BEGINS
THE PONY EXPRESS
ZIP CODE
POSTAL REORGANIZATION ACT
THE POSTAL SERVICE BOARD OF GOVERNORS
TRANSFORMATION PLAN
THE POSTAL ACCOUNTABILITY AND ENHANCEMENT ACT
SIGNIFICANT YEARS IN U.S. POSTAL HISTORY
MAILING INDUSTRY RESOURCE PUBLICATIONS
On July 26, 1775, members of the Second Continental Congress, meeting in
Philadelphia, agreed that a Postmaster General be appointed for the United Colonies,
who shall hold his office at Philadelphia, and shall be allowed a salary of 1000 dollars
per an: for himself, and 340 dollars per an: for a secretary and Comptroller, with power
to appoint such, and so many deputies as to him may seem proper and necessary.
This simple statement signaled the birth of the Post Office™ Department, the
predecessor of the United States Postal Service® and the second oldest federal
department or agency of the United States of America.

The Postal Service® Begins
Three weeks after the battles of Lexington and Concord, the Second Continental
Congress met in Philadelphia in May 1775 to plan for the defense of the colonies
against British aggression and ―to take into consideration the state of America.‖ The
conveyance of letters and intelligence was essential to the cause of liberty. A
committee, chaired by Benjamin Franklin and including Samuel Adams, Richard Henry
Lee, Philip Livingston, Thomas Lynch, and Thomas Willing, was named to consider the
creation of a postal system.

The committee reported back to Congress on July 25, 1775. The Continental Congress
agreed to the committee‘s recommendations on the following day, creating the position
of Postmaster General, and naming Franklin to it. Richard Bache, Franklin‘s son-in-law,
was named comptroller, and William Goddard was appointed surveyor.

Under Franklin and his immediate successors, the postal system mainly carried
communications between Congress and the armies. Postmasters and post riders were
exempt from military duties so service would not be interrupted.

Benjamin Franklin served as Postmaster General until November 7, 1776. America‘s
present Postal Service ™descends in an unbroken line from the system Franklin
planned and placed in operation. History rightfully accords him major credit for
establishing the basis of the system that has well served the growing and changing
needs of the American people. His invention of the ―pigeon hole‖ sorting case remains
useful even in today‘s postal processing centers.

                                        10-117
The Pony Express
American transportation pioneer William H. Russell advertised for hostlers and riders to
work on the Overland Express Route via Salt Lake City in March 1860.
Russell had failed repeatedly to get the backing of the Senate Post Office™ and Post
Roads Committee for an express route to carry mail between St. Joseph, Missouri —
the westernmost point reached by the railroad and telegraph — and California. St.
Joseph was the starting point for the nearly 2,000-mile central route to the West. Except
for a few forts and settlements, the route beyond St. Joseph was a vast, unknown land,
inhabited primarily by Native Americans.

Many thought that year-round transportation across this area was impossible because
of extreme weather conditions. Russell organized his own express to prove otherwise.
With partners Alexander Majors and William B. Waddell, Russell formed the Central
Overland California and Pike‘s Peak Express Company. They built new relay stations
and readied existing ones. The country was combed for good horses — hardy enough
to challenge deserts and mountains and to withstand thirst in summer and ice in winter.
Riders were recruited hastily but, before being hired, had to swear on a Bible not to
cuss, fight, or abuse their animals and to conduct themselves honestly.

On April 3, 1860, the Pony Express began its run through parts of Missouri, Kansas,
Nebraska, Colorado, Wyoming, Utah, Nevada, and California. On average, a rider
covered 75 to 100 miles daily. He changed horses at relay stations set 10 to 15 miles
apart, swiftly transferring himself and his mochila (a saddle cover with four pockets or
cantinas for mail) to the new mount.

The first mail by Pony Express from St. Joseph to Sacramento took 10 days, cutting the
overland stage time via the southern route by more than half. The fastest delivery was
in March 1861, when President Abraham Lincoln‘s inaugural address was carried from
St. Joseph to Sacramento in 7 days and 17 hours.

On July 1, 1861, the Pony Express began operating under contract as a mail route. The
Pony Express officially ended October 26, 1861, after the transcontinental telegraph line
was completed, and became an enduring legend.

ZIP Code™
During World War II, thousands of experienced postal employees left to serve with the
military. To offset the loss, in May 1943 the Post Office™ Department began a zoning
address system in 124 of the largest Post Offices™. Under this system, delivery units
or zones were identified by one or two numbers between the city and state — for
example, Birmingham 7, Alabama — so that mail could be separated by employees
who did not have detailed scheme knowledge.

Twenty years later, 1963, the Department implemented an even farther-reaching plan,
the Zone Improvement Plan–ZIP Code™.
                                      10-118
Postal Reorganization Act
On March 12, 1970, after extensive hearings, the House Post Office™ and Civil Service
Committee reported a compromise measure containing provisions similar to the
Commission proposals and endorsed by President Nixon. The bill included a 5.4
percent retroactive pay raise and a system that would allow employees to reach the top
of their pay grade in 8 rather than 21 years. Postal employees called it too little, too late.

On March 18, a work stoppage began. It ultimately involved 152,000 postal employees
in 671 locations. The President ordered the Army to deliver the mail, and the unions
asked Labor Secretary George Shultz to intervene. Postmaster General Winton M.
Blount agreed to negotiate with the seven postal unions when the employees returned
to work. They did, and negotiations began March 25. Eight days later, the negotiating
parties recommended a general wage increase of 6 percent, retroactive to December
27, 1969, for all federal employees. Postal workers would get an additional 8 percent
increase if there was agreement on, and enactment of, legislation reorganizing the Post
Office™ Department.

On April 16, 1970, the Department and union leaders announced agreement on a
reorganization plan, which was embodied in a legislative proposal and sent to Congress
by President Nixon. It included four provisions that Postmaster General Blount saw as
necessary: adequate financing authority, removal of the system from politics to assure
continuity of management, collective bargaining, and setting of rates by The Postal
Service® after an opportunity for hearings before an impartial rate panel. In addition to
the 8 percent pay increase, the bill provided for negotiation of new wage-schedule
permitting employees to reach the top of their pay grade in 8 years.

On August 3, 1970, by a vote of 57 to 7, the Senate approved the conference report on
House Resolution 17070, a modified version of the legislation proposed by the
President. Three days later, the House of Representatives approved it. On August 12,
1970, President Nixon signed into law the most comprehensive postal legislation since
the founding of the Republic, Public Law 91-375, and the Postal Reorganization Act.

The Post Office™ Department was transformed into the United States Postal Service®,
an independent establishment of the executive branch of the Government of the United
States.

The mission of The Postal Service® remained the same, as stated in Title 39 of the U.S.
Code:
      The Postal Service® shall have as its basic function the obligation to provide
      postal services to bind the Nation together through the personal, educational,
      literary, and business correspondence of the people. It shall provide prompt,
      reliable, and efficient services to patrons in all areas and shall render postal
      services to all communities.

                                           10-119
The Postal Service® officially began operations on July 1, 1971 and received:
   Operational authority vested in a Board of Governors and Postal Service™
   executive
   management, rather than in Congress.
   Authority to issue public bonds to finance postal buildings and mechanization.
   Direct collective bargaining between representatives of management and the unions.
   A new rate-setting procedure, built around an independent Postal Rate Commission.


The Postal Service® Board of Governors
The Board of Governors was established by the Postal Reorganization Act of August
12, 1970. The Board includes nine Governors who are appointed by the President with
the advice and consent of the Senate. The nine Governors select a Postmaster
General, who becomes a member of the Board, and those ten select a Deputy
Postmaster General, who also serves on the Board. The Postmaster General serves at
the pleasure of the Governors for an indefinite term. The Deputy Postmaster General
serves at the pleasure of the Governors and the Postmaster General.

The Governors are chosen to represent the public interest and cannot be
representatives of special interests. Not more than five of the nine may belong to the
same political party. The Postmaster General and the Deputy Postmaster General
participate with the Governors on all matters except that they may not vote on rate or
classification adjustments, adjustments to the budget of the Postal Rate Commission,
selection and removal of the Inspector General, and election of the Chairman of Board.
While the entire Board approves requests to the independent Postal Rate Commission
(now the Postal Regulatory Commission) for changes in rates and classes of mail, the
Governors alone, upon receiving a recommendation from the Commission, may
approve, allow under protest, reject, or modify that recommendation. The entire Board
determines the dates on which new rates and classification adjustments become
effective.

The Board directs the exercise of the powers of the Postal Service, directs and controls
its expenditures, reviews its practices, conducts long-range planning, and sets policies
on all postal matters. The Board takes up matters such as service standards, capital
investments, and facilities projects exceeding $10 million. It also approves officer
compensation.

The first nine appointments were for staggered terms of 1 to 9 years. Subsequent
appointments have been made for a full 9 years or, when vacancies have occurred, for
the remainder of the un-expired terms. Each Governor‘s term expires on December 8 of
a given year. Governors may continue to serve following expiration of their term until a
successor is appointed, but not for more than 1 year.



                                        10-120
Transformation Plan
The law that created today‘s Postal Service, the Postal Reorganization Act of 1970,
placed the organization on a businesslike footing by making postal operations self-
sufficient. The new business environment led to unparalleled levels of service and
efficiency.

In 2002, The Postal Service® improved service to record levels while aggressively
holding the line on expenses. Volume declined, yet total factor productivity rose. By the
end of 2002, The Postal Service® delivered 22 billion more pieces of mail to 12 million
more addresses than it did in 1995 with the same number of employees. However,
technological and commercial trends have been reshaping national and international
services for collecting, transporting, and delivering all types of postal products.

At stake is the right of every American to send and receive mail. The Postal Service®,
with the assistance of stakeholders, created a comprehensive Transformation Plan. It
was submitted to Congress and the American people in April 2002 and contains views
on the steps that must be taken now and the long-term options that appear feasible, as
a decisive response to the challenges of a new century.
The Transformation Plan is a blueprint for the future of The Postal Service®. It contains
specific strategies that will foster growth by increasing the value of postal products and
services to customers, improve operational efficiency, and enhance a performance-
based culture.

The plan identified actions The Postal Service® can take — and is taking — within the
context of existing law; moderate, short-term legislative change; and, long-term
structural change to ensure a sound postal system for years to come.




                                         10-121
The Postal Accountability and Enhancement Act
The Postal Accountability and Enhancement Act is the first major legislative change to
The Postal Service® since 1971. President George W. Bush signed it into law on
December 20, 2006.

The new law directs the Department of the Treasury to resume funding of military
pensions for postal employees, returning the Postal Service to the same status as the
majority of other agencies. It also abolishes a legally mandated escrow requirement. It
reconstitutes the former Postal Rate Commission into the Postal Regulatory
Commission (PRC), and grants it greater authority and responsibility.

The Act also establishes two separate product categories: Market-Dominant products
and Competitive products. It prescribes a new process for setting prices, with increases
for Market-Dominant products capped at the Consumer Price Index, by class. For
Competitive products, the law creates new pricing flexibility. Many of the provisions of
Sarbanes-Oxley will now also apply to the Postal Service.




                                        10-122
Guiding Principles for Implementation of the New Law
These guiding principles are consistent with the intent of Congress that The Postal
Service® continue to provide reliable universal service at affordable prices, while
enhancing its ability to operate in a more businesslike manner and foster growth and
innovation in the mailing industry:

   Design a modern pricing and regulatory system that:
         o Provides flexibility to respond effectively to market and operational
            conditions, and the needs of all customers.
         o Provides incentives for the Postal Service and mailers to operate in a
            fashion that improves the efficiency of the nation‘s postal system.
         o Supports the adoption of corporate best practices, such as rational
            investments in the infrastructure, and the realignment of resources to
            match the changing needs of customers and mailers, in order to respond
            to the system‘s incentives.
         o Promotes honest, economical, efficient management.
         o Allows The Postal Service®'s competitive products to compete fairly in the
            marketplace.
         o Ensures adequate revenues to support the network and set prices that
            cover cost in a manner required by law.
         o Streamlines the pricing and classification process to increase predictability
            and reduce administrative burdens on all parties.

   Have service standards consistent with universal service at reasonable prices that
   enhance the value of postal services, and reasonably assure customers of delivery
   reliability and speed through the use of transparent performance measurement
   systems.

   Work together with the Postal Regulatory Commission and stakeholders to provide a
   high degree of financial transparency by improving the quality of postal data systems
   through warranted and cost-effective enhancements.




                                        10-123
Significant Years in U.S. Postal History
  1775 Benjamin Franklin was appointed first Postmaster General under Continental
  Congress
  1860 Pony Express started
  1885 Special delivery began
  1963 ZIP Code™ and sectional center plan implemented
  1970 Postal Reorganization Act signed - Express Mail® began experimentally -
  MAILGRAM instituted
  1971 United States Postal Service® began operations - Postmaster General no
  longer in Cabinet - Labor contract negotiated through collective bargaining, a first for
  the federal government - National service standards established - Letter cancelled
  on moon by Apollo 15 mission
  1983 ZIP+4® code instituted
  2002 Segway Human Transporter used experimentally - Transformation Plan
  released
  President‘s Commission on the United States Postal Service® established - Record
  levels of service performance posted for First-Class Mail® and Priority Mail®



Mailing Industry Resource Publications
  MAIL Magazine
  Mailing Systems Technology Magazine
  Parcel & Shippers Magazine
  Postal Bulletin
  USPS® Mail Pro
  Federal Register




                                        10-124
11 POSTAL KNOWLEDGE – REVIEW QUESTIONS

Review Questions
  1. The United States Post Office Department was established in what year?

     A.   1971
     B.   1972
     C.   1775
     D.   1776

  2. The first Postmaster General of the Post Office™ was:

     A.   George Washington
     B.   Thomas Jefferson
     C.   Benjamin Franklin
     D.   Marvin Runyon

  3. The Postal Service® Reorganization Act occurred in what year?

     A.   1971
     B.   1963
     C.   1983
     D.   1970

  4. ZIP® stands for?

     A.   Zone Initial Process
     B.   Zone Improvement Plan
     C.   Zone Improvement Program
     D.   Zone in Property

  5. The ZIP Code™ was established in what year?

     A.   1955
     B.   1961
     C.   1963
     D.   1964




                                      11-125
6. Who appoints The Postal Service® Board of Governors?

   A.   Congress
   B.   Senate
   C.   Legislatures
   D.   The President with advice and consent from the Senate

7. Who appoints the Postmaster General?

   A.   Congress
   B.   The President
   C.   The Board of Governors
   D.   Senate

8. The Postal Regulatory Commission is?

   A.   An independent regulatory agency
   B.   A branch of The Postal Service
   C.   Part of the Legislative Branch
   D.   A nonprofit agency

9. Postage pricing for Market Dominant and Competitive Services are determined
   by regulations set forth under the Postal Accountability and Enhancement Act?

   A.   True
   B.   False

10. The Private Express Statutes (PES) are:

   A.  Laws that make it unlawful for any entity other than the USPS® to send or
      carry letters over postal routes.
   B. Postal rules that explain expedited delivery
   C. A law that protects Federal Express and UPS from competition
   D. None of the above

11. Registered Mail™ has insurance to what value of the enclosed article?

   A.   $.01 to $5,000
   B.   $.01 to $10,000
   C.   $.01 to $25,000
   D.   Registered Mail™ has no insurance provided




                                    11-126
12. Which one of the following is not an approved Move Update endorsement?

   A.   Address Service Requested
   B.   Return Service Requested
   C.   Change Address Requested
   D.   Forwarding Service Requested

13. An address correction service that the USPS® provides to mailers through
    USPS® licensees. If a match is made a correction can be made of the address‘
    before it is used on a pieces of mail.

   A.   Address Change Service (ACS™)
   B.   Address Element Correction (AEC™)
   C.   National Change of Address (NCOALink®)

14. An automated process that provides change of address information to
    participating mailers who maintain computerized mailing lists. The information is
    send to mailers on electronic media, which reduces the volume of manual
    change of address notices.

   A.   Address Element Correction (AEC™)
   B.   Address Change Service (ACS™)
   C.   National Change of Address (NCOA®)

15. For automation rates on First-Class Mail® addresses must be updated within
    ________ days prior to the mailing dated by and approved update method.

   A.   At least once a year.
   B.   60 days
   C.   95 days

16. For automation rate mailings, addresses must be matched                  using
    CASS/MASS-certified process within _________ days before mailing.

   A.   180 days
   B.   At least once a year
   C.   At least twice a year.




                                     11-127
17. The system used for letter-size and flat-size mailpieces to print barcode
    based on ―reading‖ and, encoding ZIP Code™ information and then
    printing delivery point information (barcode) onto the mailpiece:

   A.  Postal Numeric Encoding Technique (POSTNET™) or Intelligent Mail®
      Barcode
   B. Presort Accuracy Validation Evaluation (PAVE™)
   C. FASTforward®

18. For a mailpiece that is forwarded 1 – 12 months and a separate notice of new
    address is provided; which endorsement should be used:

   A.   Forward Service Requested
   B.   Return Service Requested
   C.   Address Service Requested

19. Which class of mail is generally used by publications (magazines & newspapers
    whose primary purpose is transmitting information to an established list of
    subscribers or requesters?

   A.   Package Services
   B.   Standard Mail®
   C.   Periodicals

20. Which class of mail weighs less than 16 oz. and sub-classes includes:
    Advertisements, circulars, newsletters, magazines, small parcels and
    merchandise:

   A.   First-Class Mail®
   B.   Standard Mail®
   C.   Express Mail®

21. Which class of mail comprises of these sub-classes: Merchandise, catalogs,
    printed materials and computer media. There is no minimum weight for this
    class:

   A.   Package Service
   B.   First-Class Mail®
   C.   Express Mai®




                                     11-128
22. Which class of mail includes all matter wholly or partly in writing or typewriting, all
    actual and personal correspondence, bills, invoices, and all matter sealed or
    otherwise closed against inspection.

   A.    Express Mail
   B.    Standard Mail®
   C.    First-Class Mail®

23. Which class of mail provides guaranteed expedited delivery service for
    mailable material?

   A.    First-Class Mail®
   B.    Express Mail®
   C.    Priority Mail®

24. What does CASS™ stand for?

   A.    Certified Address Software System
   B.    Coding Accuracy Support System
   C.    Coding Accuracy Software System
   D.    Correction Address Standards System

25. What does the abbreviation FIM mean?

   A.    Facing Identification Mark
   B.    Free Identification Mark
   C.    Firm Identification Mark

26. Which of the following is not a ―best practice‖ when addressing a mailpiece?

   A.    Type or machine-print all characters in dark on a light background.
   B.    Use the two letter state abbreviation.
   C.    Right-justify every line in the address block.
   D.    Left-justify every line in the address block.

27. For a Standard Mail® mailpiece weighing 3 ounces, which endorsement will
    provide an address correction notice at the least cost (assume the mailer is not
    an ACS™ participant, the recipient has moved 15 months ago, and that the
    mailer does not require the mailpiece to be forwarded or returned).

   A.    Address Service Requested
   B.    Change Service Requested
   C.    Forwarding Service Requested
   D.    Return Service Requested


                                        11-129
28. A bulk certificate of mailing may not be obtained for mailing identical pieces of
    First-Class Mail® or Standard Mail® if the postage is paid with which kind of
    payment method?

   A.   Postage stamps
   B.   Pre-canceled stamps
   C.   Meter strips or meter impressions
   D.   Permit imprints

29. A partial refund for complete and legible unused meter stamps is made, when
    there are submitted within 60 days from dates shown on these stamps:

   A.   The face value of the stamp is $350 or less, 90% is refunded
   B.   The face value of the stamp is more than $350, refund for the face value
        minus $35 per hour process fee, the minimum charge of $35.
   C.   Both A and B

30. Permit imprint mailings must contain:

   A.   At least 200 pieces or 50 pounds
   B.   At least 500 pieces or 75 pounds
   C.   At least 150 pieces or 50 pounds

31. Postage for periodicals may not be paid with:

   A.   Permit imprint
   B.   Postage meter
   C.   Adhesive stamps
   D.   All of the above

32. Flat-size mailpieces, regardless of class of mail, must be rectangular in shape,
   uniform in thickness and flexible.

   A.   True
   B.   False

33. Odd-shaped items that are properly wrapped within paper envelopes and sent at
    the First-Class Mail® l or Standard Mail® nonautomation rates may be subject to
    the nonmachinable surcharge as applicable.

   A.   True
   B.   False




                                      11-130
34. Postal Service™ processing equipment that will read the face of the envelope
    and spray a barcode is called a:

   A.   Barcode Sorter – BCS
   B.   MERLIN®
   C.   Multi-line Optical Character Reader
   D.   Small Parcel Sorters

35. Postal Service™ mail processing equipment that will read a barcode and sorts
    the mail accordingly is called a:

   A.   MERLIN®
   B.   Optical Character Reader
   C.   Small Parcel Sorters
   D.   Barcode Sorter
   E.   None of the Above

36. MERLIN® is the acronym for;

   A.   Mail Evaluation Readability Lookup Instrument
   B.   Mail Estimate Readability Lookup Instrument
   C.   Mail Evolution Resource Line Instrument
   D.   None of the above

37. The Postal Service® processes mail through two types of operations:

   A.   Manual and automated.
   B.   Manual and mechanical
   C.   Computerized and mechanical
   D.   None of the Above.

38. Several steps are involved in the discount mailing process. A successful
    discount mailing requires which of the following steps;

   A.   Choosing a Mailing Service
   B.   Choosing a Postage Payment Method
   C.   Preparing Your Mail
   D.   Sorting Your Mail
   E.   Entering Your Mail
   F.   All of the Above




                                     11-131
39. When designing a mailpiece, who would be a good resource for obtaining
    instructions to design automation-compatible mailpieces:

   A.   Mail Designer
   B.   Mailpiece Design Analyst
   C.   Cartoonist
   D.   Mail architect

40. Mail service providers can help you:

   A.   Purchase or rent an address list.
   B.   Manage your address database.
   C.   Design and print your mailpieces.
   D.   Sort your mailpieces.
   E.   Reduce your postage rate
   F.   Enter your mail into the mailstream.
   G.   All of the Above




                                     11-132
Answers to Questions

Question   Answer   Section   Page           Question   Answer   Section   Page
     1.      C         10     117                 21.     A         1       18
     2.      C         10     117                 22.     C         1       13
     3.      D         10     119                 23.     B         1       5
     4.      C         10     118                 24.     B         2       23
     5.      C         10     118                 25.     A         7       93
     6.      D         10     120                 26.     C         4       62
     7.      C         10     120                 27.     B         6       85
     8.      A         10     120                 28.     D         5       75
     9.      A         10     122                 29.     C         8      105
     10.     A         9      113                 30.     A         8      108
     11.     C         5       79                 31.     D         1       14
     12.     C         6       86                 32.     A         2       34
     13.     C         3       47                 33.     A         2       26
     14.     B         3       44                 34.     C         2       22
     15.     C         3       43                 35.     D         2       22
     16.     A         2       36                 36.     A         2       23
     17.     A         4       68                 37.     A         2       21
     18.     C         6       83                 38.     F         3       51
     19.     C         1       14                 39.     B         2       33
     20.     B         1       15                 40.     G         3       50




                                    11-133

				
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