R2006-1 Impact on Letter Mail Course #40201-27

1. R2006-1 Impact on Letter Mail Course #40201-27

2. Agenda • Topics by class of mail • First-Class • Standard Mail • Changes in standards • Changes in mail preparation • Acceptance • Accepting Postage Statements with “Old” Rates • How to Access “Old” Rates in PostalOne! • Verification

3. First-Class Mail® Letters

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

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

6. Letters and Cards First-Class Mail Automation – Reduced Overflow Tray Option 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

7. Letters First-Class Mail Automation - Reduced Overflow Tray Option 50 pieces ZIP 100 5-digit/scheme overflow mail 100 pieces 5-digit overflow 50 pieces ZIP 10010 50 pieces ZIP 10020 New York NY 100

8. Lines A1 & D1 will not indicate Carrier Route after Rate Case Implementation. Changes to Postage Statements and PostalOne!

10. Letters and Cards First-Class Mail Machinable • Maximum letter weight – 3.3 ounces • No 5-digit or 3-digit tray preparation except for 3-digit origin trays • Required trays include 3-digit origin, AADC, and mixed AADC

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

12. Letters and Cards First-Class Mail Machinable AADC overflow mail 3-Digit origin AADC Mixed AADC

13. Letters and Cards First-Class Mail Nonmachinable • Surcharge for pieces one ounce or less • Over one ounce pays the presorted letter rate based on weight • Eliminate “manual only” option • No prep changes • 5-digit...3-digit...ADC...mixed ADC

14. First-Class Mail – 3600-R1 – Page 1

15. First-Class Mail – Regular – Page 1

16. Part B of PS Form 3600R-1 is where all nonautomation rate mailpieces will now be entered. Changes to Postage Statements and PostalOne!

17. Easier to Use Statements First-Class Mail – Regular – Page 3

18. First-Class Letters Acceptance Issues • Mailer presents pieces that weigh more than 3.5 ounces and are rigid or that exceed one or more of the dimensions for a letter will not be eligible for letter rates. Clerks should advise mailer of new standards; accept mailing as prepared. Re-rate mailing at applicable flat or parcel rate. Rigidity is determined by using the flats flexibility test...DMM 301.1.4. • Mailer presents machinable letter mailing sorted to 5-digit and 3-digit rates. Clerk should advise mailer of new preparation standards; accept mailing as prepared. Presorted rates apply.

19. First-Class Letters Acceptance Issues • Reduced overflow tray allows mailers to place pieces in next lower tray and claim higher rate. For example, mailer has less than 150 pieces remaining after making 5-digit tray. Mailer may place these pieces into 3-digit tray and those pieces still qualify for 5-digit rate. If acceptance personnel identify pieces in a 3-digit tray that could have been placed in a 5-digit overflow tray, those pieces should be compared to mailers documentation. Documentation must support mail preparation. If documentation does not match mail preparation, advise mailer and make appropriate revisions. • Mailer presents mailing and clerk determines that trays do not meet 85% capacity. Clerk should advise mailer of new standard; accept mailing as prepared. Advise mailer to make corrections on future mailings.

20. Standard Mail Letters

21. Letters Standard Mail Automation • Maximum letter weight • 3.5 ounces – remains the same • No automation carrier route preparation • Overflow trays are optional • No change in rate eligibility (full trays 85%)

22. Standard Mail – Regular/NP – Page 1

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

24. Letters Standard Mail Automation - Reduced Overflow Tray Option 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 L011

25. Easier to Use Statements Standard Mail – Regular/NP – Page 2 Part A is for Automation Letters ONLY.

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

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

28. Letters Standard Mail Machinable - Reduced Overflow Tray Option AADC overflow mail Origin 3d optional AADC L801 Mixed AADC L011

29. Letters Standard Mail Nonmachinable • Nonmachinable letters separate price • Eliminate nonmachinable surcharge • Eliminate “manual only” option

30. Standard Mail – Regular/NP – Page 4

31. Letters Standard Mail Enhanced Carrier Route • Full trays only for basic, high density, and saturation letters • Barcoded • Up to 3 ounces • Group carrier routes within trays • Basic ECR letters – auto compatible and barcoded

32. Letters Standard Mail Enhanced Carrier Route Non-Bundled Automation-Compatible 5-Digit Carrier Routes 3-Digit Carrier Routes Carrier Route

33. Letters Standard Mail Enhanced Carrier Route Non-Bundled Automation-Compatible Carrier Route overflow mail 5-digit/CRs overflow mail 3-Digit Carrier Routes 5-Digit Carrier Routes Carrier Route

34. Letters Standard Mail Enhanced Carrier Route Bundled or Non-Automation Compatible or Non-barcoded 5-Digit Carrier Routes 3-Digit Carrier Routes Carrier Route

35. Changes to Postage Statements and PostalOne! • Bundled Carrier Route sortation includes: a. Nonbarcoded mailpieces or b. Mailpieces that weigh more than 3 ounces or c. Not automation compatible • Bundled Carrier Route letters OVER 3 ounces up to 3.3 ounces pay the same rates as unbundled full tray preparation shown on earlier slides.

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

38. Standard Mail Letters Acceptance Issues • Mailer presents mailpieces that are automation compatible, barcoded, and bundled. Clerk should advise mailer of new standards for unbundled full tray prep. Accept mailing as prepared. No increase in postage. • Mailer presents a mailing claiming a DDU discount for ECR letters. Clerk should advise mailer of new standards; accept mailing as prepared. Rates paid will be letter-size “Non” entry rates. Revise PS Form 8125 if necessary. • Mailer presents machinable letter mailing sorted to 5-digit and 3-digit rates. Clerk should advise mailer of new preparation standards; accept mailing as prepared. Part D – nonautomation letters – AADC & mixed AADC rates apply.

39. Standard Mail Letters Acceptance Issues • Mailer presents letter mailing at machinable rates; however, acceptance clerk determines that mailpiece is nonmachinable. Clerk should advise mailer of new standards; accept mailing as prepared. Rates should be revised to nonmachinable rates found in Part D of PS Form 3602. • Mailer presents mailing and clerk determines that trays do not meet 85% capacity. Clerk should advise mailer of new standard; accept mailing as prepared. Advise mailer to make corrections on future mailings.

40. Postage Statements Submitted via Mail.dat • Prior to submitting a postage statement, Mail.dat mailers send their qualification report(s). • The qualification report will be received even if it shows pieces claimed at “eliminated” rates. For example: a Periodicals qual report might show foreign pieces but foreign pieces have to be presented on PS Form 3700, not PS Form 3541. • The associated postage statement will fail if the foreign mailpieces are included. • This information applies to all classes of mail...if ineligible rates are claimed in the Mail. at file, the postage statement will “fail” when sent.

41. “Old” Postage Statements • Under no circumstances are the old postage statements to be accepted after rate case implementation. • Mailers must present mailings with the new postage statements. If a customer presents a mailing with an old postage statement, advise the mailer of the rate change and provide them with a new postage statement. Ask customer to complete new postage statement prior to accepting the mail.

42. “Old” Postage Statements • If the customer electronically submitted a postage statement using Postage Statement Wizard prior to the rate change but does not present the mailing until after the rate change: 1. ask them if there’s someone they can call at their office who could cancel the previously submitted postage statement and resubmit a current statement OR 2. they can complete a new hard-copy postage statement and cancel the PSW statement when they get back to their computer.

43. Current PostalOne! Transaction Page Adding “Pre- Rate Case” Links

44. Questions

45. Questions and Answers Q: What day are we implementing the rate case? A: Monday, May 14, 2007 @ 12:01am Q: What is the new definition of a full tray? A: A full tray is one that is 85 to 100% full. Q: What is the maximum weight for a First-Class letter? A: 3.5 ounces

46. Questions and Answers Q: What are the sortation levels for auto First-Class and Standard Mail letters? A: 5D/scheme; 3D/scheme; AADC; mixed AADC Q: For First-Class letters, what rate do pieces prepared in 3-digit origin trays pay. A. Presort

47. Questions and Answers • Under the reduced overflow tray option, mail may move back to the next tray level when it results in how many pieces in a tray? • 150 pieces • What rates do Standard Mail letters prepared in origin 3-digit trays pay? A. AADC

48. Questions and Answers • 175 pieces in a tray – 100 pieces of 5D overflow and 75 pieces of 3D – what rate do the 3-digit pieces qualify for? • 3-digit Q. What is the nonmachinable surcharge for First-Class Mail letter-size pieces 1 ounce or less? A. $ .17

49. Questions and Answers • What is the nonmachinable surcharge for First-Class Mail pieces over 1 ounce? A. $ .00

50. Part 2 -- Agenda • Why do we perform VERIFICATIONs? • What is “Initial Verification”? • What is “In-Depth Verification”? • When are verifications performed at MERLIN sites? • When are verifications performed at non-MERLIN sites? • Verification sample selection using the Random Generator Tool.