Rate Case Impacts Mailers Council Meeting March 20

1. Rate Case Impacts Mailers Council Meeting March 20

2. Agenda • USPS Proposal vs. PRC Recommendation • Implementation Plan • Mailing Standards Changes

3. First-Class Mail

4. First-Class Mail

5. First-Class Mail

6. Priority Mail

7. Express Mail

8. Standard Mail

9. Standard Mail

10. Periodicals

11. Package Services

12. Special Services

13. International Global Express Guaranteed GXG document GXG non-document Global Express Mail Airmail Parcel Post Economy Parcel Post Global Priority Mail Airmail Letter Post Economy Letter Post Express Mail International Priority Mail International First-Class Mail International

14. Implementation Plan

15. Implementation Stamp Distribution

16. Implementation Communication * All dates pending Governor’s action

17. Implementation Communication

18. Implementation Training

19. Implementation In-Store Retail Systems

20. Mailing Standards Changes

21. First-Class Mail and Standard Automation Letters Reduced Overflow Tray Option No change to rate eligibility and required tray prep (85% full trays) 5-digit/scheme overflow mail AADC overflow mail 3-digit/scheme overflow mail 5-Digit/Scheme optional 3-Digit/Scheme L002 AADC L801 Mixed AADC L201/L011

22. Standard Mail ECR Letters Discontinue DDU rates DSCF eligibility when DDU entered • Prepared with simplified addresses • Mailers holding a mailing permit at the entry office • one mailing per day • Less than 2,500 pieces

23. Standard Mail ECR Letters No Bundling Required • Full trays only for basic, high density, and saturation letters • Barcoded and auto-compatible • Up to 3 ounces • Group carrier routes within trays

24. Standard Mail Machinable Letters Simplified Prep • Maximum letter weight – 3.3 ounces • No 5-digit or 3-digit* tray preparation • Tray preparation includes 3-D origin, AADC, and mixed AADC * Except optional 3-digit origin trays

25. Standard Mail Automation Flats Flexibility Required • AFSM 100 standards • New flexibility standards • Required 5-digit/sch bundles • Required 3-digit/sch bundles • Required 5-digit/sch sacks

26. Standard Mail Non-Auto Flats Flexibility Required • New scheme preparation • Rectangular requirement • Uniform thickness • Rigid pieces pay NFM or parcel rate

27. Standard Mail Not Flat-Machinable New Category • Rigid • UFSM 1000 (over ¾” thick or over 15” L) • Optional 5-digit bundles on pallets • 5 piece minimum

28. Standard Mail Not Flat-Machinable New Category • Less than 6 ounces • Sortation – 5-digit, 3-digit, ADC and mixed ADC • Allow DDU entry if sorted to 5-digit • No minimum when entered at DDU 5-Digit/ Scheme L606 optional Mixed ADC L009 3-Digit L002 ADC L004

29. Standard Mail Not Flat-Machinable New Category • 6 ounces or more • Sortation – 5-digit, BMC/ASF and mixed BMC • Allow DDU entry if sorted to 5-digit • No minimum when entered at DDU 5-Digit/ Scheme L606 optional Mixed BMC L601 ASF L602 BMC L601

30. Standard Mail Parcels New Rate Structure Machinable rate tiers Current Proposed Irregular rate tiers Current Proposed

31. Standard Mail Irregular Parcels Different Prep • Tubes, rolls, triangles, etc., and pieces less than 2 ounces • Labeling • 5-digit/scheme L606 • 3-digit L002 • ADC L603 • Mxd ADC L604

32. Standard Mail Irregular Parcels Different Prep • Parcels 2 ounces or greater that are not tubes, rolls, triangles, etc • Labeling • 5-digit/scheme L606 • 3-digit L002 • ADC L004 • Mxd ADC L009

33. Periodicals Significant Changes • Bundle rates based on bundle level and container level • Container rates based on container type, level, and entry

34. Timeline Final Domestic Standards (March 21) Final International Standards (April) 2007 Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Implementation (May ) Periodicals Implementation (TBD) Governors Decision (March ) PRC Recommendation (Feb 28) Proposed Periodicals Standards (March 23) Final Periodicals Standards (April 30) Special Postal Bulletin (April 5)