Postal Points December 24, 2012 Issue #12-18

Inside this issue … News and views: PRC Approves Revised Standard Mail Rates. The rates were approved after some adjustment. Page 1. Approved USPS Rates and Fees to be Effective January 27, 2013. The new prices for Standard Mail. Page 3. PRC Issues Order on “Nonpostal” Services and Products. The PRC reviews even the prices for making a copy. Page 5. Do-Nothing Congress Can’t Find Time for Postal Legislation. – Analysis. Why do meaningful work when there’s arguing to do? Page 6. Vacancies May Challenge Continuity of Postal Panels. Critical positions may be going unfilled. Page 7. Early Retirement Offers Save Money, Cost Experience. When employees leave, so does what they know. Page 8. Post-Election Reports Show Union PAC Activity. The unions know how to help their friends at election time. Page 9. FERS Surplus Revised with Two Results. OPM says the surplus is a lot smaller; surprised? Page 10. USPS Final Rule: New Mailing Standards for Domestic Mailing Services Products. The rules that are effective January 27 Page 11. Departments: Short Subjects. Pages 2, 5-10. All the stuff you need to know: Federal Register Stuff (Page 25), DMM Advisory Stuff (Page 25), Postal Bulletin Stuff (Page 26). Calendars. Page 26.

A Postal Points Milestone The Postal Points production staff is celebrating a milestone: this is the 350th issue of MFSA’s postal newsletter. We’ll be celebrating again next March when we reach the publication’s 20th anniversary. We hope to offer readers a brief retrospective at that time, summarizing the major postal-related topics that we’ve covered over two decades. But that’s next year; for now, it’s 350 down, many more to go. – LR PRC Approves Revised Standard Mail Rates In a ruling issued December 11, the Postal Regulatory Commission approved revised price changes for Stand- ard Mail, enabling those rates to be implemented with other Postal Service rate and classification changes on January 27, 2013. Back and forth The USPS had initially proposed its prices for 2013 in an October 11 filing and, in a November 16 order, the PRC approved all of what was proposed except the rates for Standard Mail. Instead, the commission remand- ed that portion of the Postal Service’s proposal, stating the proposed prices for flats were inadequate to improve cost coverage (see the December 3 issue of Postal Points). The PRC ordered the Postal Service to submit revised prices for Standard Mail, which it did on November 26. In that second filing, the agency altered the rates that it had previously proposed for Standard Mail flats, but not to the degree that some observers would have expected – some rate cells actually decreased from the October 11 proposal and any increases were modest compared to what could have been done to yield better cost coverage. Moreover, the revised pricing submission did not lower the letter rates (to offset increases in the rates for flats and keep within the class level CPI-based cap) as at least one commenter on the case had suggested. Yet, despite what seemed a minimal response by the Postal Service to the PRC’s demand for higher rates for Standard Mail flats, the commission decided that response was sufficient, stating: “The Commission has reviewed the revised Standard Mail pricing proposals for consistency with the requirements of title 39 and its earlier directives. Based on its review of the record, including parties’ comments, the Commission finds provisionally that the revised planned price adjustments do not violate the price cap in 39 USC 3622(d); are consistent with, or justified by an exception to, the workshare discount limitations in 39 USC 3622(e); establish prices that satisfy 39 USC 3626; and satisfy applicable Commission directives.” Not a ringing endorsement, but approval nonetheless. Another argument continues The PRC’s approval of the Postal Service’s revised rates for Standard Mail does not mean the parties’ feud over larger ratesetting policy has been resolved. In its November 26 filing, the USPS contended that the PRC had “overstepped its authority” when remanding the Standard Mail price proposal and ordering an increase in the rates for flats. That perspective was sup- ported by Commissioner Robert Taub in a dissenting opinion accompanying the PRC’s November 16 remand. However, in its most recent order, the PRC did not acknowledge that disagreement and avoided any further engagement on the issue.  Short Subjects Separately, however, Commissioner Taub did not share the panel’s silence. In a concurring opinion, Taub wrote that, while he supports the PRC’s approval Carper to chair key committee. of the revised rates for Standard Mail flats, he found: On December 12, Sen. Tom Carper (DE) announced that the Democratic “… it important to highlight a significant issue that has been raised in the most re- Steering Committee has named him cent proposal that results from Commission decisions in Order No. 1541, from the anticipated Chairman of the which I dissented in part. … As I explained in my dissent in part in Order No. 1541, Committee on Homeland Security I believe the approach of the Commission is a step back in time toward its rateset- and Governmental Affairs. The an- ting role that was abolished with the former Postal Rate Commission. In its new ticipated committee assignments are role of regulator rather than ratemaker, the function of the Commission is to subject to approval by the Demo- define the spectrum of lawful rates. Within this spectrum, the Postal Service is cratic caucus and an organizational responsible for selecting the set of rates which, in its judgment, is most consistent resolution by the Senate when the th with its statutory mission. The Commission may reject a given rate or classifica- 113 Congress convenes in January. tion as unlawful, but it should no longer recommend rates and classifications Taub elected as PRC Vice chairman. except in the most extraordinary cases. …” On December 12, the Postal Regula- Although some of Taub’s colleagues on the PRC, or the commission’s leader- tory Commission announced the unanimous election of Robert Taub ship, may not appreciate his dissention, observers are quick to point out that, to serve as its vice chairman, effec- when he was still a senior aide to then-Congressman John McHugh, Taub was tive January 1, 2013, succeeding instrumental in formulating the 2006 postal reform law. That legislation re- Nanci Langley. Under PRC policy, placed the Postal Rate Commission with the current PRC and redefined the vice chairs serve one-year terms. roles, responsibility, and authority of the reconstituted commission. As a re- PRC dismisses two PO appeals. sult, observers may be correct in believing Taub’s perspective on the law’s in- On December 17, the PRC dismissed tention is well-founded. the appeal filed September 18 regarding the Tyner (IN) post office At the same time, many observers believe that some members of the com- (A2012-127). Operation of that of- mission or its professional staff have failed to internalize the changes to the fice was suspended pending a deci- ratesetting process caused by the postal reform law. As a result, observers sion on its future so the commission conclude, the inclination remains strong to approach ratesetting and USPS granted a USPS motion to dismiss rate proposals from a philosophical position more appropriate to the pre- the appeal as premature. Nonethe- less, the PRC instructed the agency reform 1970 ratesetting process than to the one implemented in 2006. to give it a status report about the One more shot PO by January 4. Then, on December 19, the commis- For her part, PRC chair Ruth Goldway couldn’t pass up the chance for a part- sion dismissed an October 9 appeal ing shot at the Postal Service. In a cleverly written concurring opinion, Gold- filed by Rep. Henry Waxman (CA way added: 30th) regarding the relocation of retail services in Santa Monica (CA) “Postal price changes do not occur in a vacuum. They entail considerable work by (A2013-1). Consistent with prior de- mailers and those who provide products and services to mailers, including soft- cisions, the PRC ruled the matter ware development. The prices and worksharing discounts offered by the Postal was simply a realignment of retail Service provide opportunities to mailers who can take advantage of them, but the operations, not a post office closure, ability to do so is a demanding challenge for the industry, given the need for ade- and so dismissed the case for lack of quate lead time to respond. The Postal Service’s initial reluctance to adopt jurisdiction. Given that she once was Standard Flats rates in accordance with the 2010 Annual Compliance Determina- the mayor of Santa Monica and tion and with Commission Orders 1427 and 14721 effectively shortened the time maintains ties to the city, PRC chair mailers have to prepare for changes. Ruth Goldway did not participate in the proceeding. [TOP] “I am committed to facilitating prompt decisions from the Commission in response to requests for price adjustments from the Postal Service. In turn, I expect the Postal Service to respond to clear orders of the Commission by preparing The price cap for price adjustments that satisfy PAEA requirements in a manner that provides ade- Market Dominant Products quate lead time for adoption by the industry.” is 2.170% By reminding the Postal Service of the mailing industry’s need for sufficient as of time to prepare for a rate change, Goldway was able to both scold the agency 12/14/2012 for, essentially, not doing what it was told to do, and make it responsible for using the PRC’s formula for a price increase on a 12-month interval. the delay in final approval for Standard Mail rates – and the resulting incon- (39 CFR 3010.12, 3010.21, and 3010.26) venience to mailers. The cap will be revised following re- However, readers may also perceive a thinly veiled assertion that she and the lease of the December CPI-U data on PRC have no intent of changing their approach to ratesetting. By recasting 1/16/2013. Note: The CPI cap is not necessarily the disagreement with the USPS as simply the agency’s failure to follow in- indicative of the Postal Service’s rate structions that consequently impacted mailers, Goldway tries to put herself authority at any given time. squarely on the side of the angels. Whether the angels want to be associated with her approach to ratesetting is another matter altogether.  Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 2

APPROVED USPS RATES AND FEES TO BE EFFECTIVE JANUARY 27, 2013

STANDARD MAIL

Annual fee – $200.00 Customized MarketMail, per piece – $0.460 (Commercial), $0.334 (Nonprofit) Repositionable notes, each – $0.000 Picture Permit Imprint Indicia, per piece – $0.02 Auto letters or auto, HD, or CR flats that meet the standards for the Intelligent Mail full-service option, discount per piece – $0.001 Move update: Assessment charge, per piece – $0.07; Noncompliance charge, per piece – $0.07

Pieces weighing 3.3 ounces (0.2063 lb.) or less, except as noted, each Every Door Direct Mail – Retail (Saturation flats, DDU entry only) – per piece, $0.016 Commercial Rates ($) Nonprofit Rates ($) DESTINATION ENTRY RATES DESTINATION ENTRY RATES None NDC SCF DDU None NDC SCF DDU LETTERS CARRIER ROUTE Basic 0.279 0.246 0.236 N/A Basic 0.202 0.169 0.159 N/A High Density 0.202 0.169 0.159 N/A High Density 0.128 0.095 0.085 N/A High Density Plus 0.199 0.166 0.156 N/A High Density Plus 0.125 0.092 0.082 N/A Saturation 0.189 0.156 0.146 N/A Saturation 0.115 0.082 0.072 N/A Nonautomation Basic 0.279 0.246 0.236 N/A Nonautomation Basic 0.202 0.169 0.159 N/A Nonautomation High Density 0.228 0.195 0.185 N/A Nonautomation High Density 0.153 0.120 0.110 N/A Nonautomation High Density Plus 0.224 0.191 0.181 N/A Nonautomation High Density Plus 0.149 0.116 0.106 N/A Nonautomation Saturation 0.201 0.168 0.158 N/A Nonautomation Saturation 0.126 0.093 0.083 N/A AUTOMATION Mixed AADC 0.282 0.249 N/A N/A Mixed AADC 0.170 0.137 N/A N/A AADC 0.266 0.233 0.223 N/A AADC 0.154 0.121 0.111 N/A 3-Digit 0.266 0.233 0.223 N/A 3-Digit 0.154 0.121 0.111 N/A 5-Digit 0.247 0.214 0.204 N/A 5-Digit 0.135 0.102 0.092 N/A NONAUTOMATION Mixed AADC (Machinable) 0.290 0.257 N/A N/A Mixed AADC (Machinable) 0.178 0.145 N/A N/A AADC (Machinable) 0.274 0.241 0.231 N/A AADC (Machinable) 0.162 0.129 0.119 N/A Mixed ADC (Nonmachinable) 0.632 0.599 N/A N/A Mixed ADC (Nonmachinable) 0.520 0.487 N/A N/A ADC (Nonmachinable) 0.537 0.504 0.494 N/A ADC (Nonmachinable) 0.425 0.392 0.382 N/A 3-digit (Nonmachinable) 0.503 0.470 0.460 N/A 3-digit (Nonmachinable) 0.391 0.358 0.348 N/A 5-digit (Nonmachinable) 0.408 0.375 0.365 N/A 5-digit (Nonmachinable) 0.296 0.263 0.253 N/A FLATS CARRIER ROUTE Basic 0.279 0.246 0.236 0.227 Basic 0.202 0.169 0.159 0.150 High Density # 0.228 0.195 0.185 0.176 High Density # 0.153 0.120 0.110 0.101 High Density Plus # 0.224 0.191 0.181 0.172 High Density plus # 0.149 0.116 0.106 0.097 Saturation # 0.201 0.168 0.158 0.149 Saturation # 0.126 0.093 0.083 0.074 # -Surcharge for use of detached address labels, each – $0.031 # -Surcharge for use of detached address labels, each – $0.031 AUTOMATION Mixed ADC 0.511 0.478 N/A N/A Mixed ADC 0.362 0.329 N/A N/A ADC 0.501 0.468 0.458 N/A ADC 0.352 0.319 0.309 N/A 3-digit 0.455 0.422 0.412 N/A 3-digit 0.306 0.273 0.263 N/A 5-digit 0.362 0.329 0.319 N/A 5-digit 0.216 0.183 0.173 N/A NONAUTOMATION Mixed ADC 0.566 0.533 N/A N/A Mixed ADC 0.417 0.384 N/A N/A ADC 0.529 0.496 0.486 N/A ADC 0.380 0.347 0.337 N/A 3-digit 0.479 0.446 0.436 N/A 3-digit 0.336 0.303 0.293 N/A 5-digit 0.401 0.368 0.358 N/A 5-digit 0.258 0.225 0.215 N/A PARCELS MARKETING (formerly Not Flat-machinable) Mixed NDC * 1.477 N/A N/A N/A Mixed NDC * ** 1.402 N/A N/A N/A NDC * 1.063 1.017 N/A N/A NDC * ** 0.988 0.942 N/A N/A SCF * N/A 0.705 0.656 N/A SCF * ** N/A 0.630 0.580 N/A 5-digit N/A 0.637 0.588 0.551 5-digit ** N/A 0.562 0.512 0.476 * Surcharge, nonbarcoded pieces, each – $0.064 * Surcharge, nonbarcoded pieces, each – $0.064; ** Wt. 3.5 oz. or less IRREGULAR Mixed NDC * 1.493 N/A N/A N/A NDC * 1.128 1.082 N/A N/A Commercial rate Standard Mail regular and irregular SCF * N/A 0.726 0.677 N/A parcels are now among the competitive products. 5-digit N/A 0.697 0.648 0.611 * Surcharge, nonbarcoded pieces, each – $0.064 SATURATION/CARRIER ROUTE Saturation Carrier Route Saturation Carrier Route Mailing Volume Tier Mailing Volume Tier Small 1 Large 2 Small 1 Large 2 Small 1 Large 2 Small 1 Large 2 0-200,000 0.260 0.300 0.360 0.400 0-200,000 0.195 0.225 0.270 0.300 200,001-400,000 0.250 0.290 0.350 0.390 200,001-400,000 0.188 0.218 0.263 0.293 400,001-600,000 0.240 0.280 0.340 0.380 400,001-600,000 0.180 0.210 0.255 0.285 600,001-800,000 0.230 0.270 0.330 0.370 600,001-800,000 0.173 0.203 0.248 0.278 800,001-1,000,000 0.220 0.260 0.320 0.360 800,001-1,000,000 0.165 0.195 0.240 0.270 Over 1,000,000 0.210 0.250 0.310 0.350 Over 1,000,000 0.158 0.188 0.233 0.263 Handling fee: DNDC pallet/3-digit presort 45.614 45.614 Handling fee: DNDC pallet/3-digit presort 36.492 36.492 Handling fee: DNDC pallet/5-digit presort 74.168 74.168 Handling fee: DNDC pallet/5-digit presort 59.334 59.334 Handling fee: DSCF pallet/3-digit presort 34.750 34.750 Handling fee: DSCF pallet/3-digit presort 27.800 27.800 3-digit pallet presort, per carton/sack 6.212 6.212 3-digit pallet presort, per carton/sack 4.970 4.970 1 Small: not more than 6 inches long or 4 inches high or 1.5 inches thick. 2 Large: more than 6 inches long or 4 inches high or 1.5 inches thick, but not more than 12-inches long or 9 inches high or 2 inches thick. Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 3

APPROVED USPS RATES AND FEES TO BE EFFECTIVE JANUARY 27, 2013

STANDARD MAIL

Pieces weighing more than 3.3 ounces (0.2063 lb.) except as noted, each Commercial Rates ($) Nonprofit Rates ($) DESTINATION ENTRY RATES DESTINATION ENTRY RATES None NDC SCF DDU None NDC SCF DDU per pc.+ per lb. per lb. per lb. per lb. per pc.+ per lb. per lb. per lb. per lb. LETTERS CARRIER ROUTE (Automation-compatible pieces weighing more than 3.3 ounces but not more than 3.5 ounces) Basic 0.135 0.699 0.538 0.490 N/A Basic 0.093 0.529 0.368 0.320 N/A High Density 0.076 0.609 0.448 0.400 N/A High Density 0.037 0.439 0.278 0.230 N/A Saturation 0.063 0.609 0.448 0.400 N/A Saturation 0.024 0.439 0.278 0.230 N/A AUTOMATION (Automation-compatible pieces weighing more than 3.3 ounces but not more than 3.5 ounces) Mixed AADC 0.127 0.752 0.591 N/A N/A Mixed AADC 0.036 0.648 0.487 N/A N/A AADC 0.111 0.752 0.591 0.543 N/A AADC 0.020 0.648 0.487 0.439 N/A 3-digit 0.111 0.752 0.591 0.543 N/A 3-digit 0.020 0.648 0.487 0.439 N/A 5-digit 0.092 0.752 0.591 0.543 N/A 5-digit 0.001 0.648 0.487 0.439 N/A NONAUTOMATION (Including saturation and high-density letter-size pieces weighing over 3.5 ounces and nonautomation or nonbarcoded saturation, high density, and carrier route letter-size pieces over 3.3 ounces) Basic 0.135 0.699 0.538 0.490 N/A Basic 0.093 0.529 0.368 0.320 N/A High Density 0.102 0.609 0.448 0.400 N/A High Density 0.062 0.439 0.278 0.230 N/A Saturation 0.075 0.609 0.448 0.400 N/A Saturation 0.035 0.439 0.278 0.230 N/A Mixed AADC 0.429 0.752 0.591 N/A N/A Mixed AADC 0.299 0.648 0.487 N/A N/A AADC 0.387 0.752 0.591 0.543 N/A AADC 0.257 0.648 0.487 0.439 N/A 3-digit 0.335 0.752 0.591 0.543 N/A 3-digit 0.212 0.648 0.487 0.439 N/A 5-digit 0.257 0.752 0.591 0.543 N/A 5-digit 0.134 0.648 0.487 0.439 N/A Surcharge for use of detached address labels, each – $0.031 Surcharge for use of detached address labels, each – $0.031 FLATS CARRIER ROUTE Basic 0.135 0.699 0.538 0.490 0.447 Basic 0.093 0.529 0.368 0.320 0.277 High Density # 0.102 0.609 0.448 0.400 0.357 High Density # 0.062 0.439 0.278 0.230 0.187 High Density Plus # 0.098 0.609 0.448 0.400 0.357 High Density Plus # 0.058 0.439 0.278 0.230 0.187 Saturation # 0.075 0.609 0.448 0.400 0.357 Saturation # 0.035 0.439 0.278 0.230 0.187 # - Surcharge for use of detached address labels, each – $0.031 # - Surcharge for use of detached address labels, each – $0.031 AUTOMATION Mixed ADC 0.356 0.751 0.590 N/A N/A Mixed ADC 0.228 0.648 0.487 N/A N/A ADC 0.346 0.751 0.590 0.542 N/A ADC 0.218 0.648 0.487 0.439 N/A 3-digit 0.300 0.751 0.590 0.542 N/A 3-digit 0.172 0.648 0.487 0.439 N/A 5-digit 0.207 0.751 0.590 0.542 N/A 5-digit 0.082 0.648 0.487 0.439 N/A NONAUTOMATION Mixed ADC 0.411 0.751 0.590 N/A N/A Mixed ADC 0.283 0.648 0.487 N/A N/A ADC 0.374 0.751 0.590 0.542 N/A ADC 0.246 0.648 0.487 0.439 N/A 3-digit 0.324 0.751 0.590 0.542 N/A 3-digit 0.202 0.648 0.487 0.439 N/A 5-digit 0.246 0.751 0.590 0.542 N/A 5-digit 0.124 0.648 0.487 0.439 N/A PARCELS MACHINABLE (3.5 ounces or greater) Mixed NDC * 1.170 0.947 N/A N/A N/A Commercial rate Standard Mail machinable parcels are NDC * 0.808 0.947 0.724 N/A N/A now among the competitive products. 5-digit 0.548 N/A 0.724 0.485 0.306 MARKETING Mixed NDC * 1.264 1.034 N/A N/A N/A Mixed NDC * 1.205 0.954 N/A N/A N/A NDC * 0.850 1.034 0.811 N/A N/A NDC * 0.791 0.954 0.731 N/A N/A SCF * 0.538 N/A 0.811 0.572 N/A SCF * 0.479 N/A 0.731 0.492 N/A 5-digit 0.470 N/A 0.811 0.572 0.393 5-digit 0.411 N/A 0.731 0.492 0.313 * Surcharge, nonbarcoded pieces, each – $0.064 * Surcharge, nonbarcoded pieces, each – $0.064 IRREGULAR Mixed NDC * 1.298 0.947 N/A N/A N/A NDC * 0.933 0.947 0.724 N/A N/A Commercial rate Standard Mail irregular parcels are SCF * 0.577 N/A 0.724 0.485 N/A now among the competitive products. 5-digit 0.548 N/A 0.724 0.485 0.306 * Surcharge, nonbarcoded pieces, each – $0.064 SATURATION/CARRIER ROUTE Saturation Carrier Route Saturation Carrier Route Mailing Volume Tier Mailing Volume Tier Small 1 Large 2 Small 1 Large 2 Small 1 Large 2 Small 1 Large 2 0-200,000 0.260 0.300 0.360 0.400 0-200,000 0.195 0.225 0.270 0.300 200,001-400,000 0.250 0.290 0.350 0.390 200,001-400,000 0.188 0.218 0.263 0.293 400,001-600,000 0.240 0.280 0.340 0.380 400,001-600,000 0.180 0.210 0.255 0.285 600,001-800,000 0.230 0.270 0.330 0.370 600,001-800,000 0.173 0.203 0.248 0.278 800,001-1,000,000 0.220 0.260 0.320 0.360 800,001-1,000,000 0.165 0.195 0.240 0.270 Over 1,000,000 0.210 0.250 0.310 0.350 Over 1,000,000 0.158 0.188 0.233 0.263 Handling fee: DNDC pallet/3-digit presort 45.614 45.614 Handling fee: DNDC pallet/3-digit presort 36.492 36.492 Handling fee: DNDC pallet/5-digit presort 74.168 74.168 Handling fee: DNDC pallet/5-digit presort 59.334 59.334 Handling fee: DSCF pallet/3-digit presort 34.750 34.750 Handling fee: DSCF pallet/3-digit presort 27.800 27.800 3-digit pallet presort, per carton/sack 6.212 6.212 3-digit pallet presort, per carton/sack 4.970 4.970 1 Small: not more than 6 inches long or 4 inches high or 1.5 inches thick. 2 Large: more than 6 inches long or 4 inches high or 1.5 inches thick, but not more than 12-inches long or 9 inches high or 2 inches thick. [TOP] Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 4

PRC Issues Order on “Nonpostal” Services and Products USPS Marketing re-re-re-reorganized. Drawing nearly to an end a series of classification cases that began in 2008, Postal observers of any tenure will the Postal Regulatory Commission issued a December 11 Order Approving agree that reorganization is a recur- ring event at USPS HQ, with Market- Mail Classification Schedule Descriptions and Prices for Nonpostal Service ing and Sales being the most often Products. The identification and PRC approval for “nonpostal services” is a reshuffled. As announced on De- process initiated by the 2006 postal reform law that enlarged the purview of cember 14, it’s happened again; the PRC to more than traditional postal rates and mail classification matters. Chief Marketing and Sales Officer Nagisa Manabe, who joined the Defining the list USPS in May, has realigned her staff In its order, the PRC authorized thirteen USPS activities to continue as effective December 29:  New Products and Innovation (Gary Re- nonpostal services which will be “regulated as either a market dominant or blin, VP) Product development for Direct competitive product.” The authorized nonpostal services are: Mail and Periodicals, Emerging Technol-  Market Dominant (2 Activities) ogies, New Business Opportunities, 1. MoverSource Product Integration, Shipping Products, Transaction and Correspondence Mail, 2. Philatelic Sales Product Support, and Innovation.  Competitive (11 Activities)  Brand Marketing (Dan Barrett, Acting 1. Affiliates for Website Executive Director) Marketing USPS 2. Affiliates—Other (Linking Only) products and services with a focus on Small Business, Shipping, Mail, Market 3. Electronic Postmark Research, Retail and Digital Marketing, 4. FedEx Drop Boxes and Marketing Services. 5. Licensing Programs Other Than Officially Licensed Retail Products  Sales (Cliff Rucker, VP) Business Cus- 6. Meter Manufacturers Marketing Program tomer Intelligence, Field Sales Strategy 7. Non-Sale Lease Agreements (Non-Government) and Contracts, National Business Alli- ances, National Operations Integration, 8. Officially Licensed Retail Products (OLRP) National Sales, Sales Operations and 9. Passport Photo Service Planning, National Strategic Accounts, 10. Photocopying Service and Customer Retention. 11. Training Facilities  Channel Access (Kelly Sigmon, VP) Re- tail Alliances, Channel Management Subsequently, while developing the Mail Classification Schedule language to and Strategy, Retail Business Technolo- define these services, the Postal Service gy, and Retail Services. “… retained seven services as a distinct product, but renamed others and, in two  Pricing (Jeff Williamson, VP) Competi- tive Products Pricing; Pricing and Classi- cases, paired two nonpostal services to form a product. The Postal Service’s fication Service Center; Product Classi- conversions of nonpostal services into various products are intended to reflect the fication, Pricing; and Pricing and Pricing essential activity within each service rather than the names of a vendor, Innovations. programs, or the location of the activity (e.g., the web).”  Global Business (Giselle Valera, VP) Global Business Solutions, Global Busi- In turn, the PRC detailed the products authorized under the listed services: ness Management, International Postal “Upon review of the Postal Service’s proposed MCS language covering the Affairs, International Strategy and authorized nonpostal services, the Commission has concluded that the following Business Development Support, and 11 nonpostal products (2 market dominant products and 9 competitive products) Asia Pacific Relations.  Stamp Services and Corporate Licensing proposed by the Postal Service accurately reflect the underlying characteristics of (Susan McGowan, Director) Stamp Ful- the authorized nonpostal services. [Those products are]:” fillment Services, Stamp Manufacturing,  Market Dominant Product List—Nonpostal Services Stamp Products and Exhibitions, Stamp 1. Alliances with the Private Sector to Defray Cost of Key Postal Functions [Includes Development, and Corporate Licensing. MoverSource nonpostal service] Postal wonks who’ve seen previous 2. Philatelic Sales reorgs may want to remind Manabe  Competitive Product List—Nonpostal Services that it’s more important to keep the boat afloat than to realign the deck 1. Advertising [Includes Affiliates—Other (Linking Only) and Meter Manufacturers chairs. Marketing Program nonpostal services] 2. Licensing of Intellectual Property Other Than OLRP USPS considering subscriptions. 3. Mail Services Promotion [Affiliates for Website nonpostal service] According to comments by USPS offi- 4. Officially Licensed Retail Products (OLRP) cials reported by Dead Tree Edition, 5. Passport Photo Service the USPS may offer magazine sub- 6. Photocopying Service scriptions on its website and in select 7. Rental, Leasing, Licensing or Other Non-Sale Disposition of Tangible Property retail outlets. But the blog’s anony- [Includes Non-sale Lease Agreements (Non-Government) and FedEx Drop Boxes mous author questioned whether the activity would unfairly compete nonpostal services] with private sector subscription ser- 8. Training Facilities and Related Services vices, whether subscription would be 9. USPS Electronic Postmark Service (EPM) Program limited to only hard copy editions, The PRC adopted the MCS language the USPS had submitted for most prod- and whether newspapers would be ucts but directed the agency to file language for two: “Philatelic Sales” and allowed to participate. [TOP] “Training Facilities and Related Services.” [TOP]

Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 5

Examples of Congress’ productivity. Do-Nothing Congress Can’t Find Time for Postal Legislation An November 30 observation by the – Analysis Courier, Express, and Postal Journal illustrates how Congress can occupy With its calendar filled with political maneuvering and last-minute action on itself while avoiding meaningful measures it couldn’t get done in the preceding 23 months, it’s becoming clear work or difficult decisions. that the 112th Congress won’t find time to pass any form of postal legislation. “This week the House of Repre- sentatives passed six bills renam- Hopes and promises unfulfilled ing Post Offices. These ceremonial Like other citizens, members of the mailing community are sadly accustomed bills were all passed under suspension of the rules. Maybe it’s time to the promises of politicians trying to placate constituents with assurances for a member of Congress to ob- of future action on matters that should have been resolved long ago. Postal ject to suspension of the rules on reform legislation, actually a revisitation of what was enacted in 2006, has each bill that renames of Post Of- been promised for nearly the entire span of the current Congress, but always fice until the House of Representa- was postponed when some other issue – something more politically juicy or tives acts on postal reform. It may not move legislation forward fast- more headline-worthy – was put ahead of it in line. er, but it would raise public Many observers were hopeful that Congress could come together on a postal awareness as to the failure of the House of Representatives to act.” compromise during the lame-duck session, particularly given that the Senate The bills were HR 2338 (Sponsor: passed a bill in April and the House had a preferred measure that supposedly Rep. Bill Posey (FL 15th)); HR 3892 has been ready for months to be brought to the floor. Industry groups (like st (Sponsor: Rep. Tom McClintock (CA the Coalition for a 21 Century Postal Service, of which MFSA is a steering 4th)); HR 3912 (Sponsor: Rep. Tim st committee member) have been working key legislative contacts, and the Bishop (NY 1 )); HR 5738 (Sponsor: Postal Service has been unceasing in reminding legislators that help is needed Rep. Candice Miller (MI 10th)); HR 5788 (Sponsor: Rep. David Reichert quickly if it’s to have any hope of staying solvent in 2013. But to no avail. (WA 8th)); and HR 5954 (Sponsor: th As reported by The Hill, staff discussions have made progress on how to blend Rep. Jason Altmire (PA 4 )). the very different approaches of the House and Senate but that progress What’s notable is that all six bills hasn’t motivated Congressional leaders to make time to consider the staffers’ passed through the House Over- sight and Government Reform work product. According to an aide, Senate Majority Leader Harry Reid (NV) Committee, whose chairman, Dar- “is concerned that there’s not enough time to deal with postal legislation rell Issa (CA 49th) still can’t get the without an unlikely agreement on unanimous consent,” and postal reform is House to vote on his postal reform “a long shot to be included in a year-end tax-and-spending agreement.” bill (HR 2309) that was voted out of committee months ago. Observers Retiring Sen. Joe Lieberman (CT) stated that “We’re not there yet, and a lot of can draw their own conclusions people outside this group negotiating don’t like what they hear our compro- about what this says about the mises are. And at this stage of the session, if there’s any real controversy, House leadership’s opinion of the bill and its sponsor. there’s no time to do it, so I’m pessimistic.” th Wrong kind of postal bill. Rep. Dennis Ross (FL 12 ) added that “I don’t think it’s going to make it. A Bloomberg.com reports that the lot’s got to happen in the next two weeks, and I don’t know if the move- House has indeed passed legislation ment’s going to be there.” affecting the Postal Service – just not anything that would help it. Looking ahead Instead, legislators passed HR 5817, Sen. Tom Carper (DE) said he would continue to look for chances for postal a bill ending the requirement that reform this year, especially since Congress may not be out of session before financial institutions mail customers an annual privacy notice, except if the end of December. “As long as we’re here in session, I’m not giving up on the company’s privacy policy has postal reform,” Carper told The Hill. changed. The bill’s sponsor, Rep. th Blaine Luetkemeyer (MO 9th), said However, Rep. Darrell Issa (CA 49 ), chairman of the House Oversight and the measure is intended to “end Government Reform Committee and sponsor of HR 2309, the presumed lead- redundant mailings” and make re- ing postal bill in the House, stated that negotiators had reached a roadblock cipients pay more attention to the over reforming workers’ compensation – a key issue for Sen. Susan Collins notices they do receive. The bill still (ME), a sponsor of the bill passed by the Senate last April. But the Reid aide needs to be considered by the Sen- ate before it can be enacted. disagreed, asserting that timing was the major impediment to moving a postal reform bill this year. According to the report, Luet- kemeyer issued a statement last Regardless, as citizens should know, at the end of the 112th Congress, any year calling on the Postal Service to measures awaiting action – including anything like postal reform – will need “adapt to meet the challenges of the future” while also urging it not to be refiled again when the next Congress is seated in January. At that time, to cut service to his rural Missouri the mix of players will be different, so how the shifting political landscape will constituents. [TOP] affect the already dim future of postal reform is anyone’s guess. – LR [TOP]

Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 6

Vacancies May Challenge Continuity of Postal Panels Early outs at FedEx, too. As every student of the Postal Service knows, the agency has a Board of Gov- The Associated Press reports that, ernors that sets basic policy and develops business strategy, and a regulator next year, Federal Express intends to offer some employees up to two (the Postal Regulatory Commission) that ensures its prices and operations years’ pay if they retire or quit. The comport with applicable statutes. Presumably, those panels are of sufficient incentive is part of a plan to reduce national interest that the government would ensure that each group is always annual costs by about $1.7 billion populated with qualified members. However, maybe that isn’t the case, at within three years. least judging from the chronic vacancy problem again facing both. Under the early out plan, employees who volunteer will receive four The Board weeks’ pay for every year of service, The eleven-member Postal Service Board of Governors is supposed to include capped at two full years of base pay. nine members nominated by the president and confirmed by the Senate (the Eligible employees will be notified in other two are the PMG and Deputy PMG). The wrinkle in that plan is appar- February, and have until April to apply. The first wave of employees will ent when vacancies occur: getting the White House to offer nominations, leave on May 31, the last day of Fed- then getting the Senate to hold hearings and vote on the nominees. Ex’s fiscal year, with more waves at The result of this circumstance is becoming obvious once again. Earlier this the end of November 2013 and the month, the term of Board Chairman Thurgood Marshall Jr. expired, causing a end of May 2014. The company ex- pects to reduce “fixed head count by third vacancy, and leaving the Board with just one more member than the six several thousand people.” (including the PMG and Deputy) needed for a quorum. The law allows the Most of the complement reductions governors’ seven-year terms to be extended in the absence of a replacement, will be in the Express unit, with as is the situation for Dennis Toner, but that provision only buys another year. about 146,000 employees (two- By law, no more than five of the nine appointed governors can be from the thirds in the US), and in the Services same political party and none may serve more than two terms. (logistics) unit, but cost cuts will also mean shedding aircraft and “un- Governor/Nominee Term, Expiration derused assets.” Thurgood Marshall, Jr., chair (ending “holdover” year) 1st, December 8, 2011 Mickey Barnett, vice-chair 1st, December 8, 2013 According to the report, cost reduc- James Bilbray 2nd, December 8, 2015 tions are needed because FedEx cus- Louis Giuliano 2nd, December 8, 2014 tomers are using fewer premium Dennis Toner (starting “holdover” year) 1st, December 8, 2012 services and more economical choic- Ellen Williams 2nd, December 8, 2014 es to get packages delivered, while products being sent are getting light- James Miller III (nominee, reappointment) December 8, 2017 er, reducing shipping charges. Katherine Tobin (nominee, replacing Carolyn Gallagher) December 8, 2016 Stephen Crawford (nominee, replacing Alan Kessler) December 8, 2015 Northeast Area exec arrested. The White House sent up three nominees earlier this year: James Miller III On December 13, the US Attorney (March 27), who was on the board from 2003 until last year; Katherine Tobin for the District of Connecticut an- (March 12), who also served from 2006 to 2009; and Stephen Crawford (June nounced that the USPS Northeast Area’s Facilities Project Manager 7), a public policy professor at George Washington University. A hearing on was arrested on charges of bribery, the Miller and Tobin nominations was held in June but none has been held for conspiracy, wire fraud, and money the Crawford nomination nor has the Senate scheduled confirmation votes. laundering. The government also According to the Federal Times, a spokeswoman for the responsible Senate executed seizure warrants on three committee did not know the reason for the delay. bank accounts controlled by the individual and seized $630,731.40 in The PRC proceeds allegedly involved in the Observing the situation, Postal Regulatory Commission Chair Ruth Goldway commission of those offenses. opined that “certainly the Postal Service could benefit from the advice and The complaint alleges that the wisdom of more members who bring a wide range of expertise,” but that ad- manager accepted significant cor- rupt payments from contractors do- vice might apply to her panel as well. ing business with the USPS in return Commissioner Term Expires The PRC is facing its own va- for being influenced in the perfor- Ruth Goldway, chair November 22, 2014 cancy problem: the terms of mance of his official duties. Alleg- Nanci Langley November 22, 2012 two of its five members recent- edly, the manager set up a separate Mark Acton October 14, 2016 ly expired; though they can company to whom he would award Tony Hammond October 14, 2012 serve another “holdover” year, contracts. The company then sub- Robert Taub, vice-chair October 14, 2016 contracted to others for the actual the White House has yet to ei- work, generating “hundreds of ther renominate them or name replacements. (PRC commissioners serve six- thousands of dollars in profit by year terms and no more than three may be from the same political party.) [charging the] USPS more than [it] Both the PRC and the Board need to be populated with persons whose pro- had to pay the contractors who performed the actual work.” fessional qualifications (independent of their politics) enable them to provide the expertise appropriate to their respective roles. Of course, the prerequi- If convicted, each charge could result in five to twenty years in prison site to such service is getting them nominated and confirmed, and that’s and fines of up to $500,000. [TOP] seems to be where the system is malfunctioning. [TOP] Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 7

USPS may pursue Armstrong. Early Retirement Offers Save Money, Cost Experience A report in the December 10 Wall In recent years, the loss of mail volume (and revenue) and the combination of Street Journal revealed that the various contractual, legislative, and practical constraints have left the Postal USPS Office of Inspector General and the US Department of Justice Service with too many employees making too much money doing too little are close to deciding whether to work. Under such circumstances, notably when it’s not possible to compel join litigation against former Tour citizens and businesses to mail more, reducing the size of both complement de France winner Lance Armstrong. and infrastructure is essential to keep costs in line with revenue. The pending case, a whistleblower Trimming where and when possible suit brought by Floyd Landis, Arm- strong’s former teammate, alleges Legislative limitations and outright political meddling have made it difficult to Armstrong defrauded the Postal rework the retail network, and steps to downsize the processing infrastruc- Service by taking performance- ture by about half have only recently begun. In each effort, though, any sav- enhancing drugs in violation of his contract. The agency spent $30.6 ings from reducing the cost of having and operating a building pale compared million sponsoring Armstrong’s to what’s derived from trimming the cost of staffing it. Postal workers are team from 2001 through 2004. well paid and receive good benefits, both while on the rolls and when retired. Landis brought the suit under the However, contractual terms struck long ago bar layoffs, and other restrictions Federal False Claims Act, which al- applied to all federal employment complicate processes to reduce comple- lows citizens to sue on behalf of the government but also lets the liti- ment through involuntary separations (“reductions in force”). As a result, the gant collect up to 30% of any mon- Postal Service often turns to “early out” offers to persuade employees to quit ey recovered by the government. If or retire, enabling the agency to shed excess employees relatively quickly. found guilty, Armstrong and others In 2012, there have been four “early outs”: for mailhandlers, with a $15,000 in- named in the suit would be liable for triple the amount of the spon- centive; for postmasters, with a $20,000 incentive; for administrative and man- sorship, the report stated. agerial (EAS) staff with no incentive; and the ongoing offer to clerk craft per- The OIG’s investigation was started sonnel, also with a $15,000 incentive. These offers have resulted in the depar- in late 2010 but not made public ture of about 3,000 mailhandlers, 4,200 postmasters, and nearly 3,600 EAS until recently when the DOJ sought employees. The incentive to clerks was expected to induce between 15,000 to enforce an OIG subpoena to and 20,000 to leave but, based on recent comments by the PMG (as reported which Armstrong failed to respond. by the Federal Times), over 25,000 (of about 115,000 eligible) will be leaving. New appeal of PO “closure.” Too many in the wrong places A representative of another community upset over changes to its Though some employees may be leaving early in their careers, most will be tak- USPS retail service has taken the ing early or regular retirement. Persons who are retiring are the best sources matter to the Postal Regulatory of savings because they’re likely at the top of their pay grades, and, if replaced, Commission. will be succeeded by persons earning appreciably less. So, while the departure In an appeal filed December 11, the of nearly 35,000 postal employees from throughout the organization doubtless city clerk of Climax (GA) complained will yield savings, in the short term it may cause staffing challenges as well. because the Postal Service has suspended operations at the local post Unless a position is reverted (eliminated), filling it is not a speedy process. A office over a lease dispute and that position must be approved for filling by upper management, the language of a Village Post Office being opened the vacancy announcement must be approved, and a vacancy must be posted at a hardware store is unsatisfacto- for a specified time period. If a job is awarded based on seniority alone, that’s ry. The writer also alleges citizens weren’t given “adequate notice” easier than if a job is one that’s awarded to the “senior qualified” or “best qual- about the closure and that the VPO ified” bidder, in which case training and/or evaluation of applicants must occur isn’t “handicap friendly.” before a position is awarded. Once that happens (under any scenario), a residual vacancy is caused which, unless the vacated position is reverted, starts the whole process over again. As a result, the retirement of one employee can cause successive vacancies that can continue for months. However, as professional mailers are beginning to realize, the loss of usually senior, more experienced employees also means the loss of institutional and job knowledge that cannot be replicated easily among their successors. For example, clerks experienced in retail services, mail distribution, finance, logistics, acceptance, and other functions will be leaving, and their replacements, Photo: Google Earth if there will be any, may not be identified until the bidding processes are Climax is a southwest Georgia ham- let with fewer than 300 residents, completed. Even then, new relationships, whether internally or with custom- about fifteen miles from the Florida ers, will need to be established and technical learning curves will need to be border. [TOP] overcome before the effectiveness of the new incumbents can be assured. In the end, once the Postal Service has settled new personnel into however many of the 35,000 vacancies it decides to fill, only time will tell if those new- bies will equal – or exceed – the knowledge of those they replaced. [TOP] Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 8

Post-Election Reports Show Union PAC Activity FedEx accused of overcharging. An unavoidable part of the American electoral process is the need for candi- According to a December 12 report dates to raise funds to pay for their campaigns. This activity long ago became by Bloomberg, a FedEx sales executive has claimed the company has dominated by special interest groups that, not surprisingly, expected their gifts been “systematically overcharging” to win the candidate’s support for whatever may be the contributor’s cause. customers by billing businesses and In the postal world government offices at higher residential rates. The Postal Service, though one of the nation’s largest businesses by almost Materials developed as part of a any measure, is an agency of the Executive Branch of the federal government class action suit filed against FedEx and, as such, can neither lobby nor contribute money to political candidates included internal emails in which the or elected representatives. However, that constraint does not apply to the sales executive repeatedly calls at- labor groups that represent nearly all USPS employees. tention to instances in which commercial and government customers As in past years, the political action committees of the four labor unions and were charged as much as $3 too three management “associations” were active during the 2012 election cycle, much per piece because of inappro- gathering funds from their members and making contributions to favored priate assessment of a residential candidates. According to data from CampaignMoney.com, the seven groups surcharge. contributed $3.97 million to candidates for House and Senate seats, bringing In August 2011 emails revealed during the proceeding, the executive their total contributions over the past eight election cycles to over $33.1 mil- wrote that “I have brought this to at- lion. By far, the National Association of Letter Carriers and the American tention of many people over the past Postal Workers Union are the biggest donors, in that order, pouring in a com- five or six years, including more than bined total exceeding $3.2 million in the 2012 cycle alone. one managing director, and no action has been taken to address it. House Total House Senate Total Senate Total Total My belief is that we are choosing not Group (2012) (1998-2012) (2012) (1998-2012) (2012) (1998-2012) to fix this issue because it is worth so APWU $1,320,587 $7,530,827 $129,500 $1,315,500 $1,450,087 $8,846,327 much money to FedEx.” NALC $1,653,250 $10,638,246 $145,750 $1,679,500 $1,799,000 $12,317,746 NRLCA $163,000 $4,046,650 $52,000 $1,392,150 $215,000 $5,438,800 The lawsuit, filed in federal court in NPMHU $152,000 $610,000 $25,500 $87,000 $177,500 $697,000 Memphis in 2011 seeking to repre- NAPUS $113,200 $2,805,253 $30,000 $710,542 $143,200 $3,515,795 sent a national class of consumers, LEAGUE $20,320 $770,170 $7,250 $241,950 $27,570 $1,012,120 also asks for an injunction barring NAPS $129,900 $926,242 $32,500 $379,726 $162,400 $1,305,968 FedEx from charging commercial Total $3,552,257 $27,327,388 $422,500 $5,806,368 $3,974,757 $33,133,756 customers at residential rates. The plaintiffs in the suit claim violations Special friends of federal civil racketeering laws and Not surprisingly, contributions flow unevenly, with more going to those can- are seeking damages of three times the amount of the alleged over- didates whose politics and attitudes align most closely with the contributor’s charges. interests. Of the total 1998-2012 contributions to candidates for the 435 According to the plaintiffs’ com- House seats, almost $2.7 million (9.8%) has gone to only 15 members (includ- plaint, “… on at least 70 separate oc- ing four no longer in office). For the 100 Senate seats, about $1.5 million casions, FedEx improperly charged a (25.7%) has gone to 15 members, including two no longer in office. residential delivery surcharge to its customers for deliveries to FedEx’s House Candidate (> $139K) Total Senate Candidate (> $80K) Total own headquarters.” The suit also (* no longer in office) (1998-2012) (* no longer in office) (1998-2012) th claims that “Defendants’ own inter- Steny Hoyer (MD 5 ) $278,500 Harry Reid (NV) $126,000 nal documents prove that defend- *John McHugh (NY 23rd) $232,500 Patty Murray (WA) $124,250 th ants have known for years that they Henry Waxman (CA 30 ) $230,365 Barbara Mikulski (MD) $118,000 are unlawfully charging residential Danny Davis (IL 7th) $210,400 Mary Landrieu (LA) $114,250 th surcharges when they do not apply, Stephen Lynch (MA 9 ) $180,000 Barbara Boxer (CA) $108,000 but have permitted the unlawful sur- Chris Van Hollen (MD 8th) $176,500 Susan Collins (ME) $100,000 th charges to continue because they * Tom Davis (VA 11 ) $170,998 Bill Nelson (FL) $98,500 generate substantial illicit profits. … * Earl Pomeroy (ND At-large) $160,650 Dianne Feinstein (CA) $95,499 * John Spratt, Jr (SC 5th) $156,000 Tom Carper (DE) $94,860 We believe that FedEx’s own e-mails Elijah Cummings (MD 7th) $153,950 * Arlen Specter (PA) $89,500 show that the overcharges were not Edolphus Towns (NY 10th) $153,100 Debbie Stabenow (MI) $88,000 an accident or error, but rather an Nancy Pelosi (CA 8th) $151,500 Tim Johnson (SD) $85,500 intentional decision to employ a sys- Debbie Wasserman Schultz (FL 20th) $141,500 Ron Wyden (OR) $85,500 tem that overcharged customers.” James Clyburn (SC 6th) $141,000 * Byron Dorgan (ND) $83,500 The sales executive stated that he John Tierney (MA 6th) $139,500 Joe Lieberman (CT) $80,499 brought the issue to the attention of $2,676,463 $1,491,858 three of his superiors, including his managing director, “using the lan- These data do not indicate anything illegal or unethical, but they do illustrate guage ‘This is a huge class-action one way that the postal labor groups influence legislative thought and action. lawsuit waiting to happen,’” adding For the mailing industry (or the USPS), neither of which matches the unions’ that “none of them have ever re- largesse, the data also shows why their interests are often not considered in a ported back taking any action to ele- political process where money and influence go hand-in-hand. [TOP] vate this issue.” [TOP] Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 9

Moving plans revived in Boston. FERS Surplus Revised with Two Results According to the Boston Business Just over two months ago, the Postal Service’s Office of Inspector General re- Journal, talks have resumed about relocating USPS processing and dis- leased a report stating that the USPS has overfunded its obligation to the tribution operations now in a hulking Federal Employee Retirement System by an estimated $11.4 billion (see the multi-story building near downtown. November 13 issue of Postal Points). Conveying a study by the Hay Group, the report added that, if actuarial assumptions specific to the Postal Service’s employees were used, the surplus could be as high as $24 billion. Figures are funny things Virtually on the heels of the OIG report, the Office of Personnel Management issued its own findings claiming that any overpayment was actually much less – $2.6 billion at the end of fiscal 2011, and $3 billion as of the end of FY 2012. The OIG explained that OPM’s estimate used “new economic and demo- Photo: Boston Business Journal graphic assumptions adopted in July by the Board of Actuaries in charge of The 14-acre Dorchester Avenue site, setting assumptions for FERS” and that “several reasons” contributed to the wedged between Fort Point Channel lower estimate: and South Station, has long been considered for redevelopment.  “The assumed rate of future interest earnings was reduced from 5.75 percent to Though the potential relocation of 5.25 percent, increasing the estimated liability; the postal facility has been the sub-  “OPM’s new demographic assumptions included improvements to expected ject of on-and-off discussions in the lifespans increasing the liability; and past, no agreement has ever been reached among the several city and  “Actual 2011 experience for both the assets and liability were less favorable than state agencies, private interests, and initially assumed resulting in an experience loss.” the Postal Service, particularly about In light of this significant decrease in the estimated surplus, the OIG asked where a new facility would be built. Hay to revisit its study and examine the updated data used by OPM. As its However, renewed interest in ex- original study had recommended, Hay used USPS-specific actuarial data and, panding the railroad station to ac- commodate added commuter train surprise surprise, found that the overpayment to FERS was $12.48 billion at volume has spurred the revival of the end of FY 2012 – four times what OPM had estimated. relocation talks. In turn, this has I like my numbers better led to consideration of land about a mile away, near the MassPort facili- In its calculations, OPM used updated data and assumptions for the FERS parties and entrances to the Massa- ticipant population as a whole (i.e., all federal employees); while the OIG and chusetts Turnpike, as a possible site Hay used similarly updated factors, but theirs applied to USPS participants for a new postal processing plant. only. In each case, the updates considered salary history, projected salary in- Whether this latest interest will lead creases, retirement age, longevity, and mortality rates, all of which contribute to real action remains to be seen. to an estimate of future liability and, in turn, current funding obligations. Too hurt to work but not to ski. The OIG repeated that it supports The Department of Justice has reported that a grand jury in Sacra- “… using Postal Service-specific assumptions whatever the effect on the FERS mento (CA) has indicted a former surplus as it provides a more accurate and stable estimate of Postal Service postal employee on eleven counts liability that is more likely to match the future payout stream. … The Postal of wire fraud, mail fraud, and mak- Service’s contribution rate could also be adjusted to use Postal Service-specific ing a false statement to obtain fed- assumptions. The Postal Service’s payments for retiree benefits should accurately eral workers’ compensation. reflect their ultimate costs.” According to authorities, the em- If OPM and the Board of Actuaries were so inclined, they could adopt the ployee claimed a work-related inju- ry in 1987, never returned to full- OIG’s suggestion to narrow the basis for calculation of USPS FERS liability to time duty, annually certified that he look only at USPS employee data, and could adjust the agency’s FERS contri- “could not perform any work due to bution rate accordingly. However, notwithstanding its official comments, the pain he suffered that limited his OPM likely has little interest in facilitating any changes to FERS payments that mobility and range of movement,” would lessen the flow of cash from the Postal Service to the federal treasury. and collected about $160,000 in workers’ compensation from late As with previously reported overpayments to the Civil Service Retirement 2007 to late 2012. System, any excess contributions by the Postal Service offset inadequate con- However, investigators found he tributions by other agencies and help conceal shortcomings in the federal skied at least forty times per season budget. Moreover, as the OIG reminds, there’s no mechanism under current at a ski area where he had a season law to return funds once a surplus has occurred so, given how Congress cov- pass, and was observed “performing arduous physical labor on numerous ets USPS overpayments, it’s highly unlikely that it would pass legislation to days.” If convicted, the former em- enable such a refund. ployee faces a maximum of 20 years As a result, postal ratepayers must continue to fund inequitable burdens im- in prison and a $250,000 fine. [TOP] posed on the USPS to serve Congress’ selfish political objectives. [TOP]

Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 10

USPS FINAL RULE: NEW MAILING STANDARDS FOR DOMESTIC MAILING SERVICES PRODUCTS POSTAL SERVICE 39 CFR Part 111 New Mailing Standards for Domestic Mailing Services Products AGENCY: Postal Service. ACTION: Final rule. ------SUMMARY: In October 2012, the Postal Service filed a notice of mailing services price adjustments with the Postal Regulatory Commission (PRC), effective in January 2013. This final rule contains the revisions to Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM) that we will adopt to implement the changes coincident with the price adjustments. DATES: Effective date: January 27, 2013. FOR FURTHER INFORMATION CONTACT: Bill Chatfield, 202-268-7278. SUPPLEMENTARY INFORMATION: Prices will be available under Docket Number R2013-1 on the Postal Regulatory Commission’s Web site at www.prc.gov. The Postal Service’s final rule includes a summary of comments received and responses to those comments, several mail classification changes, modifications to mailpiece characteristics, and changes in classification terminology. Comments Summary The Postal Service received nine formal responses to our proposed rule as comments, two of which included comments about more than one issue. There were three responses by mailers, two by vendors, and four by associations. Changes to Proposed Revisions One comment by an association requested that the USPS withdraw a proposed change that would limit the extrusion of an insert; that change has been withdrawn. Three comments regarding wrappers on Periodicals requested that the proposed change to require a return address on all copies with wrappers be limited to opaque wrappers; that change has been modified to only apply to opaque wrappers. Clarifications It was requested that we clarify that the minimum number of 300 pieces per route and the rule that multiple pieces per delivery address can count toward the new high density plus prices will apply to both Standard Mail letters and flats; that will be the case. It was requested that we clarify the names for Standard Mail parcels. There will be Marketing parcels, mailable at presorted (noncarrier route) prices. There will continue to be irregular and machinable parcels mailable only at Nonprofit prices. Carrier route parcels will be called Product Samples (or Simple Samples). One response questioned if the new handling charges for inbound First-Class Mail will apply to First-Class Mail nonmachinable letters. Nonmachinable letters are not authorized for this entry. The Postal Service’s current plan is for the handling charge to apply only to First-Class Mail Machinable Letters, Single-Piece Postcards, Single-Piece Flats, and Parcels under an authorization arrangement between the Postal Service and a foreign postal operator. A more complete response can be found at this link, starting on page 23: http://prc.gov/Docs/85/85452/CHIR%20No1%20Response%20Final.pdf. New Price for Residual Single-Piece First-Class Mail Letters Up to Two Ounces There were five comments about the new price for single-piece residual First-Class Mail letters weighing up to two ounces that are intended to be part of an automation or presorted mailing, but are not presorted. One response suggested that one price should be provided for all First-Class Mail letters over an ounce. The other four responses indicated displeasure with the new price that will be two cents more than the retail First-Class Mail single-piece one- ounce letter price, but 18 cents less than the retail First-Class Mail two-ounce letter price. The Postal Service notes, however, that the uniform price for residual letters was developed to address mailer claims that it was impractical to prepare one-ounce pieces separate from two-ounce pieces. For mailers who wish to separate out the one-ounce from the two-ounce letters and not submit mixed trays of one-ounce and two-ounce pieces, such mail would be able to be presented separately with a separate postage statement. The one-ounce pieces in a separate tray would be charged a 46-cent per-piece price and the two-ounce pieces in a separate tray would pay a 66-cent per-piece price. Advance Notice of a New Single-Piece Letter Price for Metered Mail There were three comments about the advance notice of a possible new price for single-piece metered letter mail. Two customers appreciated the consideration; the other customer suggested that the new price apply also to letters with PCPostage with IBI, and also advocated another lower price for nonpresorted letters with Intelligent Mail barcodes and CASS-certified addresses. The comments will be considered as this initiative develops. General Several responses noted appreciation for prior discussions of some of the proposed changes, but also noted that there were some surprise proposals. Suggestions were made to encourage the USPS to be involved in detailed discussion with mailers prior to any substantive future proposals. While we appreciate the challenges of fully understanding what is going to be proposed before it is filed with the PRC, the USPS declines to share pricing or price cells until the actual filing. It is noted that the structural changes are shared in advance with the mailing and vendor community as part of the ongoing dialogue with many groups. Change for Letters  Commercial First-Class Mail Letters The pricing structure for presorted and automation First-Class Mail letters retains the change implemented in 2012 for the minimum postage charge to be that for a 2-ounce letter, and extends the concept to residual single-piece letters that are part of the same mailing job and presented at the same time as the presorted or automation mailing. There will be a new price for residual letters up to 2 ounces, which is different than the price for single- piece letters presented as a stand-alone mailing.  Standard Mail Letters We add a new price tier for high density letters. In addition to the current high density tier which requires a minimum of 125 pieces per carrier route, the new tier (high density plus) requires a minimum of 300 pieces per carrier route. Changes for Flats  Standard Mail Flats We add a new price tier for high density flats. In addition to the current high density tier which requires a minimum of 125 pieces per carrier route, the new tier (high density plus) requires a minimum of 300 pieces per carrier route. Changes for Letters and Flats  Preparing Residual Mail From First-Class Mail and Standard Mail Mailings We revise DMM 235.0, 245.0, 335.0, 345.0, and 705.8.0 to provide new standards for the preparation of pallets, trays, and sacks of First-Class Mail or Standard Mail letters and flats. 

Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 11

USPS FINAL RULE: NEW MAILING STANDARDS FOR DOMESTIC MAILING SERVICES PRODUCTS The Postal Service continuously reviews the processes and requirements related to the preparation and entry of mail from commercial mailers. In this regard, the Postal Service, working in collaboration with the commercial mailing industry, has identified areas for improved mutual efficiencies from mi- nor changes to its mail preparation standards. These specific revisions were offered by members of the mailing community, adopted and implemented as optional standards in the context of a Postal Bulletin article (22344, August 23, 2012), and incorporated into the DMM on September 4, 2012. The Postal Service now adopts these current options as mandatory preparation standards. These changes generally require mailers to place trays or sacks of residual single-piece First-Class Mail letters and flats on an origin sectional center facility (SCF) pallet; and to place trays or sacks of residual Standard Mail letters and flats, paid at the single-piece First-Class Mail prices, on a mixed network distribution center (NDC) pallet. The Postal Service also requires use of new human-readable texts linked to several existing content identifier number (CIN) codes that specifically identify single-piece mailpieces. This requires barcoded labels for trays of residual pieces, and new text on origin SCF pallet placards (identifying this pallet level as a working pallet). No Additional Entry Fees for Periodicals We change the designation “additional entry” to “additional mailing offices” and eliminate the fees for Periodicals publications to be mailed in multiple locations. Approved Periodicals will be able to mail at any Post Office with PostalOne access. Change in Advertising Percentage Allowed for Periodicals Requester Publications Requester publications will be permitted to exceed 75% advertising in no more than 25% of the issues produced in any 12-month period. This will allow publishers greater advertising flexibility during high advertising volume periods. Endorsements on Mailing Wrappers for Periodicals We clarify that the term “mailing wrapper” includes all types of packaging used to enclose Periodicals publications, by adding “carton” to the definition of mailing wrapper. We also extend the return address requirement to all pieces with opaque wrappers because all Periodicals receive a type of address correction. These revisions will ensure processing the pieces as Periodicals and eliminate the need to open the items when the mailpiece must be for- warded or returned. Changes for Parcels  Parcel Post Now Standard Post Parcel Post has become a competitive product, excluding Alaska Bypass. Parcel Post will only be offered at retail in January 2013, and is renamed as Standard Post. Mail currently eligible for Alaska Bypass Service, which is part of the Postal Service’s current Parcel Post product, will be retained as a market-dominant product and will be named “Alaska Bypass Service.” Information about Alaska Bypass Service may be found in USPS Handbook PO 508, accessible on usps.com.  Standard Mail Marketing Parcels, Including Product Samples Prices for marketing parcels are designed for parcels containing information and/or product samples with the purposes of encouraging recipients to purchase a product or service, make a contribution, support a cause, form a belief or opinion, take an action, or obtain information. Standard Mail Market- ing parcels will be mailable at Presorted prices only, except for the new category of Product Samples (also known as Simple Samples), which will be mailable at targeted (similar to the current basic carrier route) or saturation (Every Door) prices. Marketing parcels in general continue to have a maximum size of 12 inches by 9 inches by 2 inches thick. Product Sample parcels, like other marketing parcels, must be addressed using an alternative addressing format. In addition, each parcel in a mailing of Prod- uct Sample parcels must be of identical size and weight. Within each of the price categories – targeted and saturation – there will be separate prices for small samples and for large samples. Saturation parcels must bear simplified addresses and be sorted by route. Detached address labels (DALs) must be used with targeted parcels, and must be sorted by carrier route. There is no additional charge per DAL. DALs are optional with saturation parcels, and there will be an additional charge for each DAL (including detached marketing labels or DMLs). Special, Extra, and Other Services  Certificate of Bulk Mailing – Fee Payment Effective August 6, 2012, the Postal Service revised DMM 503.5 to allow mailers paying postage by permit imprint to report identical weight pieces on PS Form 3606, Certificate of Bulk Mailing. For January 27, 2013, the Postal Service allows mailers paying postage for the pieces reported on a PS Form 3606 by permit imprint to also pay for the fees by permit imprint.  Delivery Confirmation We revise the DMM to expand acceptable terminology being allowed for Delivery Confirmation service to include USPS Tracking/Delivery Confirmation. This provides clarification to mailers who use privately printed forms, create integrated labels, or who may receive an applicable tracking label affixed to their packages at retail Post Offices, station or branches, that the text is acceptable in either format.  Return Receipts Current DMM standards permit customers to request proof of delivery via mail, fax, email, or electronically when an electronic return receipt is purchased at the time of mailing or via mail, fax, or email when PS Form 3811-A, Request for Delivery Information/Return Receipt After Mailing is requested. The Postal Service will restrict the service provided for electronic return receipts purchased at the time of mailing by discontinuing the options to obtain electronic records by fax, mail or on CD-ROM (for Bulk Proof of Delivery) and for return receipts purchased after mailing by discontinuing the option to obtain proof of delivery signature data by fax. Customers will receive proof of delivery signature data by email for electronic return receipts purchased at the time of mailing, and by email or a PS Form 3811-A by mail for return receipts purchased after mailing. Customers will continue to be able to purchase a return receipt (PS Form 3811) at the time of mailing and receive the “green card” receipt with delivery signature by mail. The Postal Service has reviewed data about customer usage of proof of delivery services and the associated system work and time necessary to provide proof of delivery letters by fax, by mail, or in bulk on CD-ROM. Year-to-date data show that approximately 95.8% (up from 91.6% last fiscal year) of customers receive the proof of delivery record by email. Approximately 97.2% of our customers that receive bulk proof of delivery records electronically receive their records weekly via signature extract file format, instead of bi-monthly by CD-ROM. The cost of the CD-ROMs is not included in the price of the service, and the additional work required in addition to maintaining the signature extract file format is currently absorbed by the Postal Service. These revisions help the Postal Service reduce costs and improve the turnaround time for delivery records to be received by our customers.  Registered Mail and COD – Where To File Claims for Indemnity We are extending the online claims function to allow customers filing claims for indemnity for domestic Registered Mail or COD articles the option of filing online at www.usps.com/insuranceclaims/online.htm.  IMb Tracing We are removing language concerning the old Confirm service from DMM 503.15.0, because all Confirm subscriptions will end by January of 2013. IMb Tracing now provides a service similar to the old Confirm service. 

Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 12

USPS FINAL RULE: NEW MAILING STANDARDS FOR DOMESTIC MAILING SERVICES PRODUCTS  Picture Permit Imprint Indicia Effective June 24, 2012, the Postal Service introduced picture permit imprint indicia standards allowing customers to include business-related color images, such as corporate logos, company brand, or trademarks, in the permit indicia area on commercial mailings of IMb full-service automation First-Class Mail letters and postcards, and of IMb full-service automation Standard Mail automation letters, for a per-piece fee in addition to postage. For January 27, 2013, we expand picture permit imprint indicia standards to also allow its use on First-Class Mail and Standard Mail flats prepared under the IMb full-service automation option. Mailers interested in picture permit imprint indicia may contact [email protected] by email for more information. Official Mail (Franked and Penalty) The Postal Service will revise DMM 703.7.0 to remove obsolete standards for the use of official mail such as the need for PS Form 3602-G, references to INTELPOST, and the use of penalty mail stamps. Advance Notice The Postal Service is considering the proposal next year of a separate price category for single-piece First-Class Mail metered letters with prices that may be different than other single-piece First-Class Mail letter prices. The Postal Service plans to conduct market research to evaluate various price points for single-piece stamped and metered mail before offering this price differentiation. The Postal Service adopts the following changes to Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM), which is incorporated by reference in the Code of Federal Regulations. See 39 CFR 111.1. List of Subjects in 39 CFR Part 111 Administrative practice and procedure, Postal Service. Accordingly, 39 CFR part 111 is amended as follows: PART 111 – [AMENDED] 1. The authority citation for 39 CFR part 111 continues to read as follows: Authority: 5 U.S.C. 552(a); 13 U.S.C 301-307; 18 U.S.C. 1692-1737; 39 U.S.C. 101, 401, 403, 404, 414, 416, 3001-3011, 3201-3219, 3403-3406, 3621, 3622, 3626, 3632, 3633, and 5001. 2. Revise the following sections of the Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM), as follows: Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM) * * * * * 233 Prices and Eligibility * * * * * 1.2 Price Computation for First-Class Mail Letters [Revise the text:] Commercial First-Class Mail Presorted letters are charged at one price for the first 2 ounces, with separate prices for pieces over 2 ounces up to 3 ounces and for pieces over 3 ounces up to 3.5 ounces. Any fraction of an ounce is considered a whole ounce. For example, if a piece weighs 2.2 ounces, the weight (postage) increment is 3 ounces. The pricing per ounce is similar for automation First-Class Mail letters, with pricing dif- ferences per sortation level. Single-piece price letters that are presented as residual pieces from either a Presorted or automation mailing are charged the residual single-piece price for letters up to 2 ounces. * * * * * 235 Mail Preparation * * * * * 5.1.2 Single-Piece Price Pieces Presented With Presort Mailings * * * The following standards apply: [Revise the first two sentences of the introductory paragraph of 5.1.2a:] a. The mailer must prepare the single-piece price pieces in separate trays from the automation and presort pieces. Mailers must label the trays under 708.6.0 using CIN code 260 on trays of single-piece letters. * * * * * * * * [Revise 5.1.2.a2:] 2. Line 2: Use the human-readable content line corresponding to content identifier number 260 (see Exhibit 708.6.2.4). * * * * * 243 Prices and Eligibility * * * * * 6.1.1 Optional Preparation * * * [Revise the second sentence:] * * * An Enhanced Carrier Route mailing may include pieces at basic, high density, high density plus, and saturation prices. * * * * * [Revise the headings of 6.4 and 6.4.1 and the text of 6.4.1:] 6.4 High Density and High Density Plus (Enhanced Carrier Route) Standards 6.4.1 Basic Eligibility Standards for High Density and High Density Plus Prices High density and high density plus letter-size mailpieces must be in a full carrier route tray or in a carrier route bundle of 10 or more pieces placed in a 5- digit carrier routes or 3-digit carrier routes tray. High density and high density plus prices for barcoded letters apply to each piece that is automation- compatible according to 201.3.0, and has an accurate delivery point Intelligent Mail barcode (IMb) encoded with the correct delivery point routing code matching the delivery address and meeting the standards in 202.5.0 and 708.4.0. Pieces that are not automation-compatible or not barcoded are mailable only at the applicable high density or high density plus nonautomation letter prices. [Revise the title and text of 6.4.2:] 6.4.2 High Density and High Density Plus Prices for Letters All pieces mailed at high density or high density plus prices must be prepared in walk sequence according to schemes prescribed by the USPS (see 245.6.8 through 245.6.9). Multiple pieces per delivery address can count toward both density standards. Specific density requirements are as follows: a. Pieces mailed at high density prices must be sorted together in sequence in quantities of at least 125 pieces for each carrier route. b. Pieces mailed at high density plus prices must be sorted together in sequence in quantities of at least 300 pieces for each carrier route. [Revise the title and text of 6.4.3:] 6.4.3 High Density and High Density Plus Discount for Heavy Letters High density and high density plus pieces that are automation-compatible under 201.3.0, accurately barcoded with a delivery point IMb, and weigh more than 3.3 ounces but not more than 3.5 ounces, require postage equal to the piece/pound price and receive a discount equal to the high density flat-size piece price (3.3 ounces or less) minus the high density letter piece price (3.3 ounces or less). The discount is calculated using nondestination entry prices only, regardless of entry level. This discount does not apply to pieces requiring payment of nonautomation high density or high density plus letter prices. 

Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 13

USPS FINAL RULE: NEW MAILING STANDARDS FOR DOMESTIC MAILING SERVICES PRODUCTS * * * * * 245 Mail Preparation * * * * * 5.5 Residual Pieces [Revise the introductory paragraph:] Mailers entering Standard Mail residual pieces that do not qualify for Standard Mail prices, and paying the First- Class Mail prices (but prepared “as is” under 244.5.0), must prepare these pieces in separate trays from the automation and presort pieces. Mailers must label the trays under 708.6.0 using CIN code 560 on residual trays. Label trays as follows: * * * * * [Revise 5.5b:] b. Line 2: Use the human-readable content line corresponding to content identifier number 560 (see Exhibit 708.6.2.4). * * * * * 6.2 Marking All regular and Nonprofit Standard Mail Enhanced Carrier Route pieces must be marked under 202.3.0. All pieces must also be marked “ECRLOT” for basic price, “ECRWSH” for high density or high density plus price, or “ECRWSS” for saturation price. Pieces in carrier route mailings under 6.7 must bear carrier route information lines under 708.8.0. * * * * * 6.6 General Traying and Labeling * * * Preparation sequence, tray size, and labeling: a. Carrier route: required; full trays only, no overflow. [Revise item 6.6a2:] 2. Line 2: for saturation, “STD LTR MACH WSS,” followed by route type and number; for high density or high density plus, “STD LTR MACH WSH,” followed by route type and number; for basic, “STD LTR MACH LOT,” followed by route type and number. * * * * * 6.7 Traying and Labeling for Automation-Compatible ECR Letters * * * Preparation sequence, tray size, and labeling: a. Carrier route: required; full trays only, no overflow. [Revise item 6.7a2:] 2. Line 2: for saturation, “STD LTR BC WSS,” followed by route type and number; for high density or high density plus, “STD LTR BC WSH,” followed by route type and number; for basic, “STD LTR BC LOT,” followed by route type and number. * * * * * [Revise the title and txt of 6.9.2:] 6.9.2 High Density and High Density Plus For each carrier route to which high density or high density plus mail is addressed, the mailer must document the total number of addressed pieces to the route. * * * * * 6.9.5 Both Prices [Revise the text:] If a mailing contains pieces qualifying for more than one walk-sequence price, the documentation required by 6.9.2, 6.9.3, or 6.9.4 may be combined. Entries for pieces at the high density or high density plus prices must be so annotated on the documentation. For the entire mailing, a summary of the total number of pieces at each price must be provided. This documentation must be submitted with each mailing. 6.9.6 Carrier Route Price [Revise the text:] If a mailing includes walk-sequence price and basic carrier route price pieces, in addition to the information required by 6.9.2 through 6.9.5, the documentation for the basic carrier route price mail must show, by 5-digit ZIP Code and, within each, by carrier route, the total number of addressed pieces at each price for each carrier route to which pieces are addressed. Pieces qualifying for the basic carrier route price must be so annotated. For the entire mailing, a summary by 5-digit ZIP Code of the total number of pieces at each price must be provided. This documentation must be submitted with each mailing. * * * * * 301 Physical Standards * * * * * 1.5.1 Polywrap Films and Similar Coverings [Revise the introductory text:] Mailers using polywrap film or similar material on flat-size mailpieces (except pieces mailed at high density, high density plus, or saturation prices) must use a product meeting the standards in 1.5. Film approved for use under 1.5.4 must meet the specifications in Exhibit 1.5.1 as follows: * * * * * 1.6 Maximum Deflection for Flat-Size Mailpieces [Revise the introductory text:] Flat-size mailpieces must meet maximum deflection standards. Flat-size pieces mailed at high density, high density plus, or saturation prices, and flats mailed at basic carrier route prices entered by the mailer at destination delivery units (DDUs), are not required to meet these deflection standards. Test deflection as follows: * * * * * 335 Mail Preparation * * * * * 5.2 Single-Piece Price Pieces Presented With Presort Mailings [Revise the second and third sentences of the introductory paragraph:] * * * Mailers must label the trays under 708.6.0 using CIN code 282 on single- piece trays. Label the trays as follows: * * * * * [Revise item 5.2b:] b. Line 2: Use the human-readable content line corresponding to content identifier number 282 (see Exhibit 708.6.2.4). * * * * * 343 Prices and Eligibility * * * * * 

Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 14

USPS FINAL RULE: NEW MAILING STANDARDS FOR DOMESTIC MAILING SERVICES PRODUCTS 6.1.1 Optional Preparation [Revise the last sentence:] * * * An Enhanced Carrier Route mailing may include pieces at basic, high density, high density plus, and saturation En- hanced Carrier Route prices. * * * * * 6.1.3 Full-Service Intelligent Mail Eligibility Standards In addition to other requirements in 6.0, flats eligible for the full-service Intelligent Mail option must: * * * * * [Revise item 6.1.3b:] b. Be part of a basic carrier route, high density, or high density plus carrier route mailing under 6.3 or 6.4. * * * * * 6.2.2 USPS-Approved Methods [Revise the text:] Carrier route coding must be performed using CASS-certified software and the current USPS Carrier Route Product or another Ad- dress Information System (AIS) product containing carrier route information subject to 509.1.0 and 708.3.0. Printed Carrier Route Files (schemes) may be used for Standard Mail Enhanced Carrier Route flat-size mail at basic, high density, high density plus, and saturation prices. * * * * * [Revise the title of 6.4:] 6.4 High Density and High Density Plus (Enhanced Carrier Route) Standards [Revise the title and text of 6.4.1:] 6.4.1 Basic Eligibility Standards for High Density and High Density Plus Prices All pieces mailed at high density and high density plus prices must: a. Be prepared in walk sequence according to schemes prescribed by the USPS (see 345.6.9). b. Meet the density requirement of at least 125 pieces for each carrier route. For high density plus prices, the density requirement is at least 300 pieces for each carrier route. Multiple pieces per delivery address can count toward the density standards. [Revise the title of 6.4.2:] 6.4.2 High Density and High Density Plus Prices for Flats [Revise the introductory text and 6.4.2a:] High density or high density plus prices apply to each piece in a carrier route bundle of 10 or more pieces that is: a. Palletized under 705.8.0, 705.10.0, 705.12.0, or 705.13.0. * * * * * 345 Mail Preparation * * * * * 5.10 Residual Pieces [Revise the introductory paragraph:] Mailers entering Standard Mail residual pieces that do not qualify for Standard Mail prices, and paying the First- Class Mail prices (but prepared “as is” under 344.5.0), must separately bundle and sack residual pieces from the automation and presort pieces. Mail- ers must label sacks under 708.6.0 using the CIN code 582 for use with residual sacks. Label sacks as follows: * * * * * [Revise 5.10bas follows:] b. Line 2: Use the human-readable content line corresponding to content identifier number 582 (see Exhibit 708.6.2.4). * * * * * 6.1 Basic Standards All mailings and all pieces in each mailing at Enhanced Carrier Route Standard Mail and Nonprofit Enhanced Carrier Route Standard Mail nonautomation prices are subject to specific preparation standards in 6.2 through 6.7 and to these general standards: * * * * * c. All pieces must meet the applicable general preparation standards in 2.0 through 4.0 and 302, and the following: [Revise 6.1c1:] 1. All regular and Nonprofit Standard Mail Enhanced Carrier Route pieces must be marked under 302.3.0. All pieces also must be marked “EC- RLOT” for basic price, “ECRWSH” for high density or high density plus prices, or “ECRWSS” for saturation price. * * * * * [Revise the title and text of 6.10.2:] 6.10.2 High Density and High Density Plus For each carrier route to which high density or high density plus mail is addressed, the mailer must document the total number of addressed pieces to the route. * * * * * 6.10.5 Both Prices [Revise the text:] If a mailing contains pieces qualifying for more than one walk-sequence price, the documentation required by 6.10.2, 6.10.3, or 6.10.4 may be combined. Entries for pieces at the high density or high density plus prices must be so annotated on the documentation. For the entire mailing, a summary of the total number of pieces at each price must be provided. This documentation must be submitted with each mailing. 6.10.6 Carrier Route Price [Revise the text:] If a mailing includes walk-sequence price and basic carrier route price pieces, in addition to the information required by 6.10.2 through 6.10.5, the documentation for the basic carrier route price mail must show, by 5-digit ZIP Code and, within each, by carrier route, the total number of addressed pieces at each price for each carrier route to which pieces are addressed. Pieces qualifying for the basic carrier route price must be so annotated. For the entire mailing, a summary by 5-digit ZIP Code of the total number of pieces at each price must be provided. This documentation must be submitted with each mailing. * * * * * 401 Physical Standards * * * * * 2.4.2 Marketing Parcels Marketing parcels do not meet letters or flats standards and have the following characteristics: * * * * * [Add new 2.4.2e:] e. Marketing parcels mailed as small Product Samples under 443 must be no larger than 6 inches long, 4 inches high and 1.5 inches thick. Product Samples that have any dimension larger than one of the maximum dimensions for a small Product Sample, up to the maximum size in 2.4.2b, are large Product Samples.  Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 15

USPS FINAL RULE: NEW MAILING STANDARDS FOR DOMESTIC MAILING SERVICES PRODUCTS * * * * * 443 Prices and Eligibility * * * * * [Revise title of 1.2:] 1.2 Regular and Nonprofit Standard Mail – Marketing Parcel and Product Sample Prices * * * * * 3.2.2 Standard Mail Marketing Parcels [Add a new second sentence:] * * * All Marketing parcels prepared as Product Samples in the same mailing must additionally be identical in size and weight. * * * * * [Revise the title and the first two sentences of 3.5:] 3.5 Merging Similar Standard Mail Mailings Mailings are subject to the general definitions and conditions in 445.1.0. Generally, mailers may merge similar Standard Mail matter into a single mailing; however all parcels in a mailing of Product Samples must be identical in size and weight. * * * * * * * * 4.1 General Information [Revise the text:] Standard Mail parcel prices are commercial prices that apply to mailings meeting the basic standards in 2.0 through 4.0 and the specific standards in 5.0 through 6.0. Destination entry discount prices are available under 446.2.0 through 446.5.0. Except for Product Samples, pieces are subject to either a single minimum per piece price or a combined piece/pound price, depending on the weight of the individual pieces in the mailing under 4.2 or 4.3. Prices for Product Samples are available under 6.0. Nonprofit prices are available for USPS-authorized organizations under 703.1.0. * * * * * 4.2 Minimum per Piece Prices The minimum per piece prices (i.e., the minimum postage that must be paid for each piece) apply as follows: [Revise 4.2a:] a. Basic Requirement. Except for pieces mailed at Product Sample prices, pieces are subject to minimum per piece prices when they weigh no more than 3.3 ounces (0.2063 pound). [Delete current 4.2b, redesignate current 4.2c as new 4.2b and revise:] b. Individual Prices. Except for Product Samples, there are separate minimum per piece prices for each product and, within each product, for the presort and destination entry levels within each mailing. There are also separate prices for Marketing parcels, Nonprofit machinable parcels, and Non- profit irregular parcels. Under Marketing parcels, there are separate prices for Product Samples. 4.3 Piece/Pound Prices [Revise the text:] Except for Product Samples, pieces that exceed 3.3 ounces are subject to a two-part piece/pound price that includes a fixed charge per piece and a variable pound charge based on weight. There are separate per piece prices for each product, and within each product, for the type of mailing and the presort and destination entry levels within each mailing. There are separate per pound prices for each product. 4.4 Surcharge [Revise the introductory text:] Unless prepared as Product Samples or in 5-digit/scheme containers, Standard Mail parcels are subject to a surcharge if: * * * * * * * * 4.5.2 Ineligible Matter Extra services (other than certificate of mailing service) may not be used for any of the following types of Standard Mail: * * * * * [Revise 4.5.2d:] d. Pieces mailed at Product Sample prices. * * * * * 5.2 Price Application [Revise the text:] Prices for Standard Mail and Nonprofit Standard Mail apply separately to Marketing parcels (and within Marketing parcels, to Product Samples) that meet the eligibility standards in 2.0 through 4.0 and the applicable preparation standards in 445.5.0, 705.6.0, 705.8.0, or 705.22. Prices for Nonprofit parcels not qualifying as Marketing parcels apply separately to machinable parcels and irregular parcels. When parcels are combined (except for Product Samples, which cannot be combined with other parcels) under 445.5.0, 705.6.0, or 705.22, all pieces are eligible for the applicable prices when the combined total meets the eligibility standards. * * * * * [Revise the title and the standards within 6.0:] 6.0 Additional Eligibility Standards for Marketing Parcels Mailed as Product Samples 6.1 General Product Sample Standards 6.1.1 Basic Standards and Optional Preparation Product Samples are a type of Marketing parcels. See 401.2.4.2 for physical standards and 443.3.0 for basic standards. Preparation to qualify for any Product Sample price is optional and need not be performed for all carrier routes in a 5-digit area. A Product Sample mailing may include pieces mailed at targeted prices and pieces mailed at saturation (Every Door) prices, but all pieces in a mailing must be identical in size and weight. All mailings of Product Samples must be entered under DNDC, DSCF, or DDU standards (see 446). No origin office entry of Product Samples is allowed. See 705.18.0 for Express Mail and Priority Mail Open and Distribute options. 6.1.2 Pricing for Product Samples See Notice 123 – Price List for price tables. Detached address labels (DALs; see 602.4.0) for Product Samples must be sorted to carrier routes, including delivery routes and Post Office Box sections. Product Sample mailings are subject to per piece prices and, when not entered at a DDU, are subject to carton/sack and/or pallet prices. Piece prices are different for parcels sorted to the targeted level (6.3) than for parcels sorted to the saturation level (6.4). Within each sortation level, piece prices are different for small parcels than for large parcels (see 401.2.4.2). Prices for cartons (or sacks) and pallets are subject to the following conditions: a. A pallet charge applies to each pallet of Product Samples entered at a DNDC or DSCF, except 3-digit pallets properly entered at a DSCF. b. A carton or sack charge applies to each carton or sack of Product Samples on a 3-digit pallet. Each carton must not exceed 40 pounds nor exceed a combined length and girth of 108 inches. 6.1.3 Basic Eligibility Standards All parcels (or DALs, when used) in a mailing of Product Samples must bear an alternative addressing format. Parcels mailed at targeted prices must have an occupant address format or an exceptional address format under 602.3.0. Parcels mailed at saturation prices must bear a simplified address under 602.3.2. In addition, all Product Sample parcels must meet these conditions: a. Meet the basic standards for Standard Mail in 2.0 through 4.0.  Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 16

USPS FINAL RULE: NEW MAILING STANDARDS FOR DOMESTIC MAILING SERVICES PRODUCTS b. Be part of a single mailing of at least 200 pieces or 50 pounds of parcels mailed at Product Sample prices. Regular and Nonprofit mailings must meet separate minimum volumes. c. DALs, when used, must be sorted to carrier routes and documented under 445.6.0 and 705.8.0, as applicable. d. DALs used with parcels mailed at targeted prices must bear a delivery address that includes the correct ZIP Code, ZIP+4 code, or numeric equivalent to the delivery point barcode and that meets the carrier route accuracy standard in 6.2. e. DALs must meet the applicable sequencing requirements in 6.3 through 6.5 and in 445.6.6. 6.2 Carrier Route Accuracy 6.2.1 Basic Standards The carrier route accuracy standard is a means of ensuring that the carrier route code correctly matches the delivery address information on detached address labels (DALs) used with Product Samples mailed at targeted prices. For the purposes of this standard, address means a specific address associated with a specific carrier route code. This standard does not apply to pieces with simplified addresses. Addresses used on pieces subject to the carrier route accuracy standard must meet these requirements: a. Each address and associated carrier route code used on the pieces in a mailing must be updated within 90 days before the mailing date with one of the USPS-approved methods in 6.2.2. b. If the carrier route code of an address used on a piece in a carrier route mailing at one class of mail and price is updated with an approved method, the same address may be used during the following 90 days to meet the carrier route accuracy standard required for mailing at any other class of mail and price. 6.2.2 USPS-Approved Methods Carrier route coding must be performed using CASS-certified software and the current USPS Carrier Route Product or another Address Information Sys- tem (AIS) product containing carrier route information subject to 509.1.0 and 708.3.0. 6.2.3 Mailer Certification The mailer’s signature on the postage statement certifies that the carrier route accuracy standard has been met for each address in the corresponding mailing presented to the USPS. 6.3 Additional Standards for Targeted Product Samples 6.3.1 Sequencing All parcels mailed at targeted prices must be accompanied with detached address labels (DALs) prepared in walk sequence (see 445.6.6). The combined weight of the DAL and associated sample must be less than 1 pound; there are no additional fees for use of DALs with pieces mailed at targeted prices. 6.3.2 Basic Preparation for Targeted Prices Targeted prices apply to each parcel for a carrier route, prepared under 445.6.0. There are separate targeted prices for small parcels and for large parcels (see 401.2.4.2). DALs must be in carrier route bundles and prepared under 445.6.0 and 602.4.0. 6.4 Additional Standards for Saturation (Every Door) Product Samples 6.4.1 Basic Eligibility Standards for Saturation Prices All parcels in a mailing at saturation prices must bear simplified addresses (or be accompanied by DALs bearing simplified addresses), and the mailing must meet the saturation standards for simplified addressed pieces under 602.3.2. For DAL charges, see Notice 123 – Price List. 6.4.2 Basic Preparation for Saturation Prices Saturation prices apply to each parcel in a carrier route or 5-digit/L606 sack or carton of simplified addressed pieces, or as allowed in bundles on pallets under 445.6.0. If used, DALs must be in carrier route bundles and prepared under 445.6.0 and 602.4.0. * * * * * 444 Postage Payment and Documentation * * * * * [Revise the title of 2.0:] 2.0 Additional Postage Payment Standards * * * * * 2.2 Nonidentical-Weight Pieces [Revise the text:] Product Samples must be of identical weight within each mailing. Postage for other nonidentical-weight parcels may be paid by precanceled stamps, subject to 4.0 and 604.3.0. Mailings of nonidentical-weight pieces subject to the piece/pound prices may have postage paid by permit imprint (if the mailer is authorized by Business Mailer Support) or by meter (if each piece has the full postage affixed). Alternatively, the mailer may affix the per piece price to each piece and pay the pound price for the mailing through an advance deposit account. Under this option, the mailer must provide a postage statement for each payment method and mark each piece “Pound Price Pd via Permit” in the postage meter indicium. For mailings of nonidentical-weight pieces, “nonidentical” must be shown as the weight of a single piece on the postage statement. * * * * * 445 Mail Preparation * * * * * 1.2 Definition of Mailings Mailings are defined as: * * * * * b. Standard Mail. Except as provided in 443.3.6, the types of Standard Mail listed below may not be part of the same mailing. [Revise 1.2b1 and 1.2b2:] 1. Product Sample parcels and any other type of mail. 2. Product Sample parcels of nonidentical size or nonidentical weight. * * * * * 1.3 Terms for Presort Levels Terms used for presort levels are defined as follows: [Revise 1.3a:] a. Targeted (Product Samples or Simple Samples): a type of Marketing parcel that is intended for specific carrier routes, with DALs sorted to and marked at the carrier route level; with a minimum of one piece per carrier route. Multiple DALs per route are all addressed for delivery to the same city route, rural route, highway contract route, Post Office box section, or general delivery unit. * * * * * 

Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 17

USPS FINAL RULE: NEW MAILING STANDARDS FOR DOMESTIC MAILING SERVICES PRODUCTS 2.1 General [Revise the text:] A bundle is a group of addressed pieces for a presort destination secured together as a unit. Bundling is permitted only for Marketing parcels mailed at Product Sample prices and for related DALs when used. Bundles must be in equal quantities of up to 50 parcels per bundles, with quantities of other than 50 indicated on a bundle facing slip. Bundles of parcels must be either banded or shrinkwrapped, and bundles of parcels more than 8 ounces each must be banded and shrinkwrapped. See 601.2.0 for other bundling standards. [Revise the title of 2.2:] 2.2 Facing Slips [Revise the introductory text and 2.2b:] Facing slips on bundles of DALs must show the carrier route designation, the 5-digit destination ZIP Code, and the number of DALs for that carrier route. Facing slips used on bundles of Product Sample parcels must show the quantity in the bundle if less than 50 and this information: * * * * * b. Line 2: Content (e.g., “STD MKTG SAMPLE) if accompanied by DALs bundled by carrier route, or contents followed by carrier route type and route number when not accompanied by DALs (e.g., “STD MKTG SAMPLE CR R 012”). * * * * * 3.1 Standard Containers [Revise the first sentence of the introductory text and add a new second sentence:] Mailings must be prepared in sacks, except for Product Samples, which may be in cartons, sacks, or bundles directly on pallets. Also, see 602.4.0 when Product Samples are mailed with DALs. * * * * * 5.4.1 Bundling [Revise the text:] Bundling is permitted only for bundles of Product Sample parcels (and associated DALs) under 6.0. * * * * * [Revise the title of 6.0:] 6.0 Preparing Enhanced Carrier Route Product Sample Parcels 6.1 Basic Standards All mailings and all pieces in each mailing at an Enhanced Carrier Route (ECR) parcel price are subject to specific preparation standards in 6.4 and 6.5, entry standards in 446, and these general standards: * * * * * [Revise 6.1b:] b. All pieces in each mailing must be Product Sample parcels as defined in 443.3.2.2. * * * * * [Revise 6.1e:] e. Sortation, size, and preparation determine price eligibility as specified in 443.6.0. 6.2 Marking [Revise the text:] All Enhanced Carrier Route pieces (or DALs) must be marked under 402.2.0. All pieces must be marked “ECRLOT” for pieces claiming a targeted price, or “ECRWSS” for pieces claiming a saturation (Every Door) price. 6.3 Residual Pieces [Revise the text:] Parcels not prepared or sorted as a carrier route mailing at Product Sample prices must be prepared as a separate mailing at Standard Mail Presorted prices. 6.4 Bundling 6.4.1 Bundle Preparation [Revise the text:] Carrier route preparation and bundling of DALs is required; Product Samples must be bundled by either carrier route or by 5-digit/L606 destinations. Prepare bundles as follows: a. Sacks must contain at least 15 pounds or 125 pieces of mail, except under 6.4.2. Cartons may be used instead of sacks. Cartons have no minimum weight, must not weigh more than 40 pounds, and must not exceed 108 inches in combined length and girth. b. DALs are required for parcels mailed at targeted prices; mailers must prepare carrier route bundles of DALs. Bundles of DALs must have a facing slip with the number of DALs for that carrier route indicated. Bundles of parcels must be prepared in sacks or cartons labeled to the correct 5-digit/L606 destination, and bundled under 2.0 and the same bundling standards as for saturation parcels under 6.4.1c. Optionally, parcels may be prepared in carrier route bundles, with a facing slip on the top of each bundle, noting the carrier route. Prepare bundles of DALs and bundles of samples in the same carton or sack, with the bundles of DALs on the top. See 602.4.0 for additional preparation standards for parcels and accompanying DALs, including optional pallet preparation. c. DALs are optional for parcels mailed at saturation prices. Bundles of parcels are prepared in sacks or cartons labeled to carrier routes or to 5-digit destination ZIP Codes, and bundled in similar quantities of up to 50 pieces per carrier route bundle or 5-digit/L606 bundle. When DALS are used, the DALs must be prepared in carrier route bundles and placed in the same carton or sack as the samples for the corresponding route or routes within the same delivery ZIP Code. Bundles of DALs must have facing slips with the number of DALs for that carrier route indicated. If not placed in a sack or carton, saturation parcels must be bundled in quantities of 50 or less under 2.0 and the bundles placed on 5-digit/L606 pallets in a stable manner. As an option, bundled saturation parcels without accompanying DALs may be prepared in sacks or cartons labeled to carrier routes or 5-digit destination ZIP Codes, then placed on pallets. A manifest report showing the total number of samples per carrier route is required when the samples are not prepared with DALs. [Revise the title and the first sentence of 6.4.2:] 6.4.2 Fewer Than the Minimum Number of Pieces per Route [Revise the text:] As a general exception to 6.4.1 and 6.5.1, mailers may prepare pieces and DALS with fewer than 125 pieces or less than 15 pounds of mail to a carrier route or a 5-digit destination when the mail is in a carton. Also, there may be less than 125 pieces or 15 pounds of mail to a sack when the saturation price is correctly claimed. * * * [Revise the title of 6.5:] 6.5 Preparing Product Samples 6.5.1 Sack Minimums [Revise the text:] Except for bundled saturation parcels and except under 6.4.2, a sack or carton must be prepared when the quantity of mail for a required presort destination reaches either 125 pieces or 15 pounds of mail. [Delete current 6.5.1a through 6.5.1c.] 

Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 18

USPS FINAL RULE: NEW MAILING STANDARDS FOR DOMESTIC MAILING SERVICES PRODUCTS 6.5.2 Sacking and Labeling Preparation sequence, sack or carton size (see also 602.4.3.5 for additional standards when using cartons), and labeling: a. Carrier route: optional with no minimum per carton; see 6.5.1 for minimums for sacks: * * * * * [Revise 6.5.2a2:] 2. Line 2: “STD MKTG WSS” (for saturation samples) or “STD MKTG LOT” (for targeted samples), followed by the route type and number. [Add new 6.5.3:] 6.5.3 Required Palletization All Product Sample mailings must be destination entered at one or more DDUs, DSCFs, or DNDCs. Except for sacks or cartons of Product Samples entered directly at a DDU, all mailings of Product Samples must be palletized. Pallets (under 705.8.10.3) must be used for sacks or cartons (or bundles of saturation samples only) of Product Samples for mail entered at DNDCs and DSCFs. * * * * * [Revise the title and text of 6.7.2:] 6.7.2 Product Samples – Targeted For each mailing of Product Samples at targeted carrier route prices, the mailer must document the total number of pieces mailed to each carrier route. * * * * * [Delete current 6.7.4 and renumber current 6.75 as new 6.7.4.] 6.7.4 Both Prices [Revise the text of renumbered 6.7.4:] If a mailing contains pieces qualifying for targeted and saturation prices, the documentation required may be combined. Entries for pieces at the targeted price must be so annotated on the documentation. For the entire mailing, a summary of the total number of pieces at each price must be provided. This documentation must be submitted with each mailing. [Delete current 6.7.6.] * * * * * 446 Enter and Deposit * * * * * 2.5.5 Volume Standards Except as permitted for a local mailer under 2.6.13, destination entry mailings are subject to these volume standards: [Revise 2.5.5a:] a. Except for Product Samples, the pieces for which a destination price is claimed must represent more than 50% of the mail (by weight or pieces, whichever is greater) presented by the same mailer within any 24-hour period. Product Samples mailings must be 100% destination-entered. For this standard, mailer is the party presenting the mail to the USPS. * * * * * 3.2 Eligibility Pieces in a mailing that are deposited at a NDC or ASF under 2.0 and 3.0 are eligible for the DNDC price when the following conditions are met: * * * * * [Revise 3.2b by adding a new last sentence:] b. * * * Product Samples must be palletized under 445.6.5 and 705.8.10.3. * * * * * 4.2 Eligibility Pieces in a mailing that meets the standards in 2.0 and 4.0 are eligible for the DSCF price, as follows: [Revise 4.2a by adding a new last sentence:] a. * * * Product Samples must be palletized under 445.6.5 and 705.8.10.3. * * * * * 5.2 Eligibility Pieces in a mailing that meets the standards in 2.0 and 5.0 are eligible for the DDU price or DDU entry (as applicable) when deposited at a DDU, addressed for delivery within that facility’s service area, and prepared as follows: [Revise 5.2a:] a. Marketing parcels eligible for and prepared as Product Samples in carrier route bundles, cartons, or sacks, and otherwise eligible for and claimed at a carrier route price under 443 and 445. * * * * * 463 Prices and Eligibility * * * * * 1.1 Nonpresorted Bound Printed Matter * * * Apply the prices and discounts for nonpresorted Bound Printed Matter as follows: * * * * * [Delete current 1.1.3 and renumber current 1.1.4 as new 1.1.3.] * * * * * 465 Mail Preparation * * * * * [Delete current 7.0.] * * * * * 503 Extra Services * * * * * 1.1.2 Proof of Delivery Proof of delivery information for Express Mail is available as follows: [Revise the text of 1.1.2a:] a. Individual requests by article number can be retrieved at www.usps.com or by calling 1-800-222-1811. A proof of delivery letter (signature data) is provided electronically via email or signature extract file as provided in 1.1.2b. [Revise the text of 1.1.2b:] b. Bulk proof of delivery (7.0) is available only to mailers using Express Mail Manifesting service and is obtained in a signature extract file format. * * * * * 

Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 19

USPS FINAL RULE: NEW MAILING STANDARDS FOR DOMESTIC MAILING SERVICES PRODUCTS 2.2.5 Additional Services [Revise the fourth sentence:] * * * Customers receiving bulk proof of delivery obtain signature data in a signature extract file format.* * * * * * * * 5.1 Certificate of Mailing Fees [Revise the text :] In addition to the correct postage, the applicable certificate of mailing fee must be paid for each article on Form 3817 or Form 3877 (5.2.3) and for duplicate copies (5.3.3). When postage evidencing indicia are used to pay the fee, they must bear the full numerical value of the amount paid in the imprint. See Notice 123 – Price List. * * * * * 5.4.1 Certificate of Bulk Mailing Fees [Adding a new last sentence:] * * * Mailers using Form 3606 with a permit imprint mailing also may pay certificate of mailing fees, at the time of mailing, using the same permit imprint.* * * * * * * * 6.2.1 Description [Revise the second and fourth sentences and delete the current last two sentences:] * * * A mailer purchasing return receipt service at the time of mailing may choose to receive the return receipt by mail (Form 3811) or electronically (by email or by signature extract file format as provided in 7.0).* * * A mailer purchasing return receipt service after mailing will receive the proof of delivery record by email (electronic signature data) or by mail (Form 3811-A).* * * * * * * * 6.2.3 Endorsement [Revise the last sentence:] * * * No endorsement is required on mail for which electronic return receipt service is requested or is provided in bulk in a signature extract file format. * * * * * 6.3.2 After Mailing [Revise last sentence of the introductory text:] * * * Mailers may request a delivery record by completing Form 3811-A, paying the appropriate fee in 6.1.1, and submitting the request to the appropriate office as follows: * * * * * 6.3.3 Time Limit [Revise the text:] A request for a return receipt after mailing must be submitted within 2 years from the date of mailing. * * * * * 6.5.1 Receipt Not Received [Delete the current last sentence.] * * * * * 7.1 Description [Revise the current second sentence of the introductory text:] * * * The proof of delivery records are sent in a signature extract file format.* * * * * * * * 9.2.1 Description [Revise the current third sentence of the introductory text:] * * * The USPS maintains a record of delivery (which includes the recipient’s signature) for 2 years.* * * * * * * * 9.2.5 Confirmation of Delivery Confirmation of delivery information for Adult Signature is available as follows: [Revise the text of 9.2.5a:] a. Information by article number can be retrieved at www.usps.com or by calling 800-222-1811. A proof of delivery letter may be provided electronically (see 9.2.5b) or by email. [Revise the second sentence of 9.2.5b:] b. * * * Customers receiving bulk proof of delivery obtain signature data in a signature extract file format. * * * * * [Revise the title of 11.0:] 11.0 USPS Tracking/Delivery Confirmation [Note: Make global change to DMM changing “Delivery Confirmation” to “USPS Tracking/Delivery Confirmation.”] * * * * * 12.2.1 Description [Revise the second sentence of the introductory text:] * * *A delivery record, including the recipient’s signature, is maintained by the USPS and is available electronically or by email, upon request.* * * * * * * * [Revise the title of 15.0:] 15.0 IMb Tracing 15.1.1 General Information [Revise the text:] IMb Tracing is available at no charge without a subscription. Requirements for participation in IMb Tracing are the use of the Intelli- gent Mail barcode, the use of a Mailer Identifier that has been registered (via the Business Customer Gateway, accessible on usps.com) to receive scan data, and verification by the Postal Service that the Intelligent Mail barcode (IMb) as printed meets all applicable postal standards. 15.1.2 Description of Service [Revise the text:] IMb Tracing provides a mailer with data electronically collected from the scanning of barcoded mailpieces as they pass through auto- mated mail processing operations. Scanned data can include the postal facility where such pieces are processed, the postal operation used to process the pieces, the date and time when the pieces are processed, and the numeric equivalent of a barcode(s) that helps to identify the specific pieces. Any piece intended to generate scanned data must meet the physical characteristics and standards in 15.0, although not every piece is guaranteed such data or complete data. This service does not provide a delivery scan or proof of delivery. * * * * * 15.2.1 General Barcode Requirements [Revise the introductory text:] Each piece in a mailing that is intended to generate IMb Tracing information must bear an Intelligent Mail barcode under 15.2.2. Mailers must apply Intelligent Mail barcodes under 708.4.0 and the following standards: * * * * * 

Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 20

USPS FINAL RULE: NEW MAILING STANDARDS FOR DOMESTIC MAILING SERVICES PRODUCTS 602 Addressing * * * * * 3.2.1 Conditions for General Use The following conditions must be met when using a simplified address on commercial mailpieces: * * * * * [Revise the introductory text of 3.2.1b:] b. Standard Mail, Periodicals, and Bound Printed Matter flat-size mailpieces (including Standard Mail pieces allowed as flats under 3.2.1c), Standard Mail Product Samples mailed at saturation (Every Door) prices, and Periodicals irregular parcels for distribution to a city route or to Post Office boxes in offices with city carrier service may bear a simplified address, but only when complete distribution is made under the following conditions: * * * * * 4.1 DAL and DML Use * * * * * [Revise the title and text of 4.1.3:] 4.1.3 Standard Mail Marketing Parcels--Product Samples DALs or DMLs must be used with Standard Mail Marketing parcels mailed at targeted Product Sample prices and may be used with parcels mailed at saturation (Every Door) Product Sample prices. * * * * * 4.3.2 Basic Standards for DALs [Revise the fourth sentence:] * * * Mailers must prepare DALs as bundles placed in sacks or in cartons, unless prepared in trays under 4.3.7 when mailed with saturation flats or with Product Samples. * * * * * * * * 4.3.3 Basic Standards for Items Distributed With DALs [Revise the first sentence:] Except for bundles of saturation flats or Product Samples placed directly on pallets under 4.3.7, the items to be distributed with DALs must be placed in cartons or prepared in bundles placed in sacks, subject to the standards for the price claimed. * * * * * * * * 4.3.6 Optional Tray and Bundle Preparation [Revise the text:] Mailers may prepare DALs in letter trays according to 245.6.0 when DALs are used in mailings of saturation flats or Product Samples. Bundles of saturation flats and bundles of Product Sample parcels to be distributed with DALs may be prepared on 5-digit (and 5-digit scheme under L606 for parcels) pallets under 4.3.7. Do not use pallets when the Drop Shipment Product indicates the delivery unit that serves the 5-digit pallet destination cannot handle pallets. For such delivery units, mail with DALs must be prepared in cartons or sacks. The tray(s) of corresponding DALs must be placed on top of the accompanying pallet of flats, and the pallet contents must be secured with stretchwrap to avoid separation in transportation and processing. All containers must be labeled according to 4.3.5. 4.3.7 Optional Container Preparation [Revise the text:] Bundles of flats, bundles of Product Samples, and cartons or sacks of items may be placed on pallets meeting the standards in 705.8.0. Cartons or trays of DALs must be placed on pallets with the corresponding items under 4.3 and 705.8.0. The USPS plant manager at whose facility a DAL mailing is deposited may authorize other containers for the portion of the mailing to be delivered in that plant’s service area. * * * * * 4.5.2 Postage Computation and Payment * * * In addition, these methods of postage payment apply: * * * * * [Revise 4.5.2c:] c. A surcharge applies to each DAL (including DMLs) used in a Standard Mail flats mailing and to each DAL (or DML) used with pieces mailed at Stand- ard Mail Product Sample saturation parcel prices. * * * * * 604 Postage Payment Methods * * * * * 1.1 Postage Stamp Denominations Postage stamps are available in the following denominations: [Revise the table:] Type and format Denomination Regular Postage: $0.01, .02, .03, .04, .05, .10, .20, .33, $1, $2, $5, $10. In addition, panes of stamps for the current First-Class Mail (FCM) single-piece 1-ounce letter price, Panes FCM 2-ounce letter price, FCM 3-ounce letter price, Priority Mail flat-rate envelope price, and Express Mail flat-rate envelope price. Booklets of 10 or 20 stamps The current First-Class Mail single-piece 1-ounce letter price. Coils of 50 The current First-Class Mail single-piece 1-ounce letter price. Coils of 100 $0.20, .33, and the current First-Class Mail single-piece 1-ounce letter price. Coils of 3,000 The current First-Class Mail single-piece 1-ounce letter price. Coils of 10,000 $0.01, .02, .03, .04, .05, .10, and coils of the current First-Class Mail single-piece 1-ounce letter price. Precanceled Presorted Price Postage –

First-Class Mail and Standard Mail Coils of 500, 3,000, and 10,000 Various nondenominated (available only to permit holders). Commemoratives: Panes of up to 20 stamps The current First-Class Mail single-piece 1-ounce letter price and other denominations. and 20-stamp booklets Semipostal: Breast Cancer Research & Save Purchase price of $0.55; postage value equivalent to First-Class Mail single-piece 1-ounce letter price; Vanishing Species remainder, minus reasonable costs incurred by the Postal Service, is contributed to fund specified causes. Forever Stamp (Nondenominated): Panes of up to 20 The current First-Class Mail 1-ounce letter price. 20-Stamp Booklets The current First-Class Mail 1-ounce letter price. 18-Stamp Sheetlets The current First-Class Mail 1-ounce letter price. Coils of 100 The current First-Class Mail 1-ounce letter price.  Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 21

USPS FINAL RULE: NEW MAILING STANDARDS FOR DOMESTIC MAILING SERVICES PRODUCTS * * * * * 1.11 Additional Standards for Semipostal Stamps Semipostal stamps are subject to the following special conditions: * * * * * [Revise 1.11b:] b. The following semipostal stamps are available for sale: 1. The Breast Cancer Research semipostal stamp. The difference between the purchase price and the First-Class Mail single-piece first-ounce letter price in effect at the time of purchase constitutes a contribution to breast cancer research and cannot be used to pay postage. Funds (net of reasonable USPS costs) from the sale of the Breast Cancer Research semipostal stamp are transferred to the Department of Defense and the National Institutes of Health. 2. The Save Vanishing Species semipostal stamp. The difference between the purchase price and the First-Class Mail single-piece first-ounce letter price in effect at the time of purchase constitutes a contribution to the Multinational Species Conservation Funds. Funds (net of reasonable USPS costs) from the sale of the Save Vanishing Species semipostal stamps are transferred to the United States Fish and Wildlife Service. c. The postage value of each semipostal stamp is the First-Class Mail single-piece first-ounce letter price in effect at the time of purchase. Additional postage must be affixed to pieces weighing in excess of 1 ounce, pieces subject to the nonmachinable surcharge, or pieces for which extra services have been requested. The postage value of semipostal stamps purchased before any subsequent change in the First-Class Mail single-piece first- ounce letter price is unaffected by any subsequent change in that price. The purchase price is listed in 1.1. * * * * * 5.4.1 Description [Revise the text:] Picture permit imprint indicia may contain business-related color images, such as corporate logos, brand, trademarks and other picto- rial business images. These images are known as picture permit imprints. Picture permit imprints may be used to pay postage and extra service fees on commercial mailings of full-service automation First-Class Mail or Standard Mail postcards, letters, or flats. * * * * * 5.4.5 Picture Permit Imprint Indicia Format [Revise the introductory text:] As options to the basic format under 5.3.11 and if all other applicable standards in 5.0 are met, permit imprint indicia may be prepared in picture permit imprint format subject to these conditions: * * * * * [Revise 5.4.5f:] f. Commercial mailings of First-Class Mail and Standard Mail postcards, letters or flats bearing picture permit indicia must be prepared as IMb full- service automation mailings under 705.24.0. Residual mailpieces that result from a mailer’s normal preparation of the full-service IMb mailing also can be mailed bearing a picture permit imprint and not be paid at the full-service price. * * * * * 608 Postal Information and Resources * * * * * 8.1 Postal Service * * * * * [Rename the reference “Post Office Accounting Manager, US Postal Service, 475 L’Enfant Plz SW Rm 8831, Washington DC 20260-5241”:] Corporate Ac- counting Manager, US Postal Service, 475 L’Enfant PLZ SW RM 8831, Washington DC 20260-5241 * * * * * [Replace the address for reference “National Customer Support Center, US Postal Service, 6060 Primacy Pkwy Ste 201, Memphis TN 38188-0001”:] Na- tional Customer Support Center, US Postal Service, 225 N. Humphreys Blvd., Ste 501, Memphis, TN 38188-1001 * * * * * [Rename the reference “Postage Technology Management, US Postal Service, 475 L’Enfant Plz SW Rm 3660, Washington DC 20260-4110”:] Payment Technology, US Postal Service, 475 L’Enfant PLZ SW RM 3660, Washington DC 20260-4110 * * * * * 609 Filing Indemnity Claims for Loss or Damage * * * * * 1.5 Where To File A claim may be filed: [Revise 1.5b by deleting the second sentence and revising the first sentence:] * * * * * b. Online at www.usps.com/insuranceclaims/online.htm for domestic insured mail, Express Mail, COD and Registered Mail. * * * * * 703 Nonprofit Standard Mail and Other Unique Eligibility * * * * * 6.1 Basic Information * * * * * [Renumber current 6.1.3 through 6.1.7 as new 6.1.4 through 6.1.8, and add a new 6.1.3:] 6.1.3 Vice President-Elect The Vice President-elect of the United States may send franked mail in connection with preparations for assuming official duties as Vice President. If the Vice President-elect is authorized/eligible to use penalty mail, the right to use penalty mail ceases immediately on inauguration to the vice presidency. * * * * * 7.3 Eligibility * * * * * [Delete 7.3.5.] * * * * * 7.4.1 Authorized Agencies [Add a new second sentence and revise the last sentence:] * * * New locations or departments under these agencies must obtain approval from the Agency Mail Manager before using penalty mail. Other agencies may request authorization to use penalty mail by writing to the Corporate Accounting Manager, USPS Headquarters (608.8.0). 

Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 22

USPS FINAL RULE: NEW MAILING STANDARDS FOR DOMESTIC MAILING SERVICES PRODUCTS * * * * * 7.4.4 Private Use [Revise the first sentence:] Unless permitted by USPS standards, an agency may not lend or provide penalty envelopes, cards, cartons, labels, or meter stamps to any private person, concern, or organization.* * * 7.4.5 Permit and BRM Numbers [Revise the text:] Penalty mail permit imprint or BRM numbers, or information to help agencies track and account for penalty mail postage by cost center, may be obtained by written request to the Corporate Accounting manager, USPS Headquarters (608.8.0). * * * * * 7.5.3 Basic Preparation Penalty mail must: * * * * * [Revise 7.5.3d:] d. Be endorsed for class or price except for single-piece price First-Class Mail. * * * * * 7.5.7 Military Units Military units engaged in hostile operations or operating under arduous conditions may be authorized to use a special form of postage-due penalty mail, subject to these conditions: * * * * * [Revise 7.5.7e:] e. The Military Postal Service Agency must notify the Corporate Accounting manager, USPS Headquarters (608.8.0), within three business days after implementing these provisions. * * * * * 7.5.9 Mail Detention [Revise the second sentence:] * * * Reports of indicated abuse are submitted to the Pricing Classification Service Center (PCSC) (608.8.0) for referral to the proper agency for investigation and action. * * * * * 7.6.1 General [Revise the text:] The formats and methods of mailing penalty mail are penalty metered mail, penalty permit imprint mail, penalty Periodicals imprint mail, and penalty reply mail. There are also special procedures for penalty Express Mail. All penalty mail matter must meet the applicable standards in 7.6 through 7.15. 7.6.2 Use Envelopes and labels prepared under these standards may be used only to transmit penalty mail within the US Mail, except when: * * * * * [Revise 7.6.2c:] c. Agencies reach written agreement with the Corporate Accounting Manager, USPS Headquarters (608.8.0), to account for and pay postage on official items carried outside the US Mail (18 USC 1693-1699 and 39 USC 601-606). * * * * * 7.7.5 Refunds for Unused Penalty Meter Indicia [Revise the first sentence:] Refunds for complete, legible, valid, unused penalty mail meter indicia are made under 604.9.0. * * * * * * * * 7.7.10 Computerized Meter Resetting [Revise the first sentence:] An agency may use a penalty mail version of the authorized postage meter payment process for remotely reset meters if it is offered by one of the USPS-authorized postage meter providers.* * * * * * * * 7.8.1 Application [Revise the fourth sentence:] * * * When the agency receives authorization to use a penalty permit imprint number, a Form 3615 must be submitted to the Post Office where mailings will be entered.* * * * * * * * 7.8.5 GPO Contractor An agency mailing submitted by a GPO contractor may contain nonidentical-weight pieces or more than one class of mail, if: * * * * * [Revise item 7.8.5c as follows:] c. A completed postage statement appropriate for each class of mail is submitted to the entry Post Office for each mailing, in duplicate if the contractor wants a copy. [Delete current 7.8.5d and redesignate current 7.8.5e as new 7.8.5d.] * * * * * 7.9.7 Exchanges [Revise the text:] Incorrectly shipped items or items damaged in shipping or defective or otherwise unserviceable may be exchanged as provided in 604.9. * * * * * 7.12.4 Application [Revise the first sentence:] An agency must apply by letter to the Corporate Accounting Manager, USPS Headquarters (608.8.0), to use merchandise return labels. * * * * * * * * 705 Advanced Preparation and Special Postage Payment Systems * * * * * 2.3.3 Price Category Abbreviations * * * * * b. Standard Mail: Exhibit 2.3.3b Price Category Abbreviations – Standard Mail [Revise the wording in the column headed “PRICE CATEGORY” in the block that corresponds to the CODE “EH” to read: “Enhanced Carrier Route High Den- sity or High Density Plus”.] 

Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 23

USPS FINAL RULE: NEW MAILING STANDARDS FOR DOMESTIC MAILING SERVICES PRODUCTS * * * * * 8.10.1 First-Class Mail--Letter or Flat Trays * * * Preparation, sequence, and labeling: * * * * * [Revise the second sentence of the introductory paragraph:] b. * * * Mailers may place AADC or ADC trays on origin SCF pallets when the tray’s “label to” 3-digit ZIP Code (from L801 for AADC trays and L004 for ADC trays) is within the origin SCF’s service area; and must place trays containing pieces paid at the single-piece price on origin SCF pallets, unless required to be presented separately by special postage payment authorization or customer service agreement (CSA).* * * * * * * * [Revise 10.1b2:] 2. Line 2: “FCM LTRS” or “FCM FLTS,” followed by “WKG.” * * * * * 8.10.3 Standard Mail or Parcel Select Lightweight--Bundles, Sacks, or Trays * * * * * [Revise the current third sentence and add a new fourth sentence of the introductory:] * * * For parcels, use this preparation only for irregular parcels in sacks or Marketing parcels prepared as Product Samples in carrier route bundles, sacks or cartons. For Product Samples, only 5-digit pallets under 8.10.3b and 3- digit pallets under 8.10.3d are allowed, and the pallets must be entered under DNDC or DSCF standards only. * * * Preparation sequence and labeling: [Revise 8.10.3a:] a. 5-digit scheme carrier routes, required, permitted for bundles of flats only. Pallet must contain only carrier route bundles for the same 5-digit scheme under L001. Labeling: 1. Line 1: L001. 2. Line 2: “STD” followed by “FLTS”; followed by “CARRIER ROUTES” (or “CR-RTS”); followed by “SCHEME” (or “SCH”). [Revise 8.10.3b:] b. 5-digit carrier routes, required except for trays, permitted for bundles, sacks, trays, and cartons. Pallet must contain only carrier route mail for the same 5-digit ZIP Code. Labeling: 1. Line 1: City, state, and 5-digit ZIP Code destination (see 8.6.4c for overseas military mail). 2. Line 2: For flats and Marketing parcels (Product Samples only), “STD FLTS” or “STD MKTG,” as applicable; followed by “CARRIER ROUTES” (or “CR-RTS”). For letters, “STD LTRS”; followed by “CARRIER ROUTES” (or “CR-RTS”); followed by “BC” if pallet contains barcoded letters; followed by “MACH” if pallet contains machinable letters; followed by “MAN” if pallet contains nonmachinable letters. * * * * * [Revise 8.10.3d:] d. 3-digit, optional, option not available for parcels other than Product Sample parcels or for bundles for 3-digit ZIP Code prefixes marked “N” in L002. Pallet may contain mail for the same 3-digit ZIP Code or the same 3-digit scheme under L008 (for automation-compatible flats only under 301.3.0). Three-digit scheme bundles are assigned to pallets according to the “label to” 3-digit ZIP Code in L008. Labeling: 1. Line 1: L002, Column A. 2. Line 2: For flats, “STD” followed by “FLTS;” followed by “3D”; followed by “BARCODED” (or “BC”) if pallet contains automation price mail; followed by “NONBARCODED” (or “NBC”) if pallet contains carrier route and/or Presorted price mail. For letters, “STD LTRS 3D”; followed by “BC” if pallet contains barcoded letters; followed by “MACH” if pallet contains machinable letters; followed by “MAN” if pallet contains nonmachinable letters. For Marketing parcels (Product Samples only), use “STD MKTG.” * * * * * [Revise the introductory paragraph of 8.10.3h:] h. Mixed NDC, optional, permitted for sacks and trays only. Pallet may contain carrier route, automation, and/or Presorted mail. Mailers must place trays and sacks containing pieces paid at the single-piece price on the mixed NDC pallet (unless required to be presented separately by special postage payment authorization). Labeling: * * * * * * * * [Add new 26.0:] 26.0 Alaska Bypass Service 26.1 Prices Alaska Bypass Service prices are calculated based on the zone to which the shipment is addressed and the weight of the shipment. See Notice123 – Price List for prices. 26.2 Price Eligibility Requirements for Alaska Bypass Service are provided in Handbook PO 508. * * * * * 707 Periodicals * * * * * 1.4 Fees [Revise the text:] Periodicals fees are per application for original entry, news agent registry, and reentry. See Notice 123 – Price List. * * * * * 3.2.3 Return Address [Revise the text:] The return address must appear on any mailing wrapper (see 3.3.7) of a publication with the optional ancillary service endorsement “Address Service Requested” and on any opaque wrapper of a publication. If a clear plastic wrapper is used on a publication endorsed “Address Service Requested,” the return address must appear visibly anywhere on the address side of the wrapper or the topmost item inside. * * * * * 3.3.7 Mailing Wrapper [Revise the first sentence:] A mailing wrapper is an envelope, sleeve, partial wrapper, polywrap, or carton used to enclose the mailpiece.* * * * * * * * 3.6.1 Publication Title and Address Notice [Revise the second and third sentences:] * * * On any publication enclosed in an opaque mailing wrapper, carton or any wrapper when the title of the publication is not prominently displayed through the wrapper or carton, the publication title and the mailing address to which undeliverable copies or change-of- address notices (see 4.12.5h) are to be sent must be shown in the upper left corner of the address side of the mailing wrapper (see 3.3.7). A publication with a clear wrapper and a prominently displayed publication title need not have the return mailing address on the wrapper unless required under 3.2.5. 

Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 24

USPS FINAL RULE: NEW MAILING STANDARDS FOR DOMESTIC MAILING SERVICES PRODUCTS 3.6.2 Periodicals Imprint [Revise the first sentence:] Mailing wrappers (see 3.3.7) that completely enclose the host publication must bear the Periodicals imprint “Periodicals Post- age Paid at * * *” or the word “Periodicals” in the upper right corner of the address area.* * * * * * * * 6.4.1 Basic Standards A publication, whether circulated free or to subscribers, may be authorized Periodicals prices if it meets the basic standards in 4.0 and: [Revise 6.4.1b:] b. Contains more than 75% advertising in no more than 25% of the issues published during any 12-month period. * * * * * [Revise the title and text of 30.0 as follows:] 30.0 Additional Mailing Offices 30.1 Basic Standards 30.1.1 Facility The additional mailing office must be a Post Office. 30.1.2 Definition Except for publications authorized an alternative payment method, the verification Post Office is also the office where Periodicals postage is paid. 30.1.3 Postage Postage must be prepaid or available for all copies presented for verification at an additional mailing office before the mail can be released. 30.2 Additional Standards Approved Periodicals publications may be mailed at any additional mailing office that is linked to PostalOne. Publishers who wish to present Periodicals for verification at additional mailing offices without access to PostalOne must file a PS Form 3510A application indicating that mailings will be presented at these offices. Publishers of publications pending approval must submit PS Form 3510A applications with their original entry application for all mailing offices where mail will be submitted during the pending period. * * * * * 708 Technical Specifications * * * * * 1.3 Price Level Column Headings The actual name of the price level (or abbreviation) is used for column headings required by 1.2 and shown below: * * * * * c. Carrier Route Periodicals and Enhanced Carrier Route Standard Mail: [Revise the table in 1.3c by adding a new third row:] Price Abbreviation * * * * * * * * * * High Density Plus [Standard Mail only;HDP letters and flats] HDP * * * * * 6.2.4 3-Digit Content Identifier Numbers * * * * * Exhibit 6.2.4 3-Digit Content Identifier Numbers * * * * * STANDARD MAIL ECR Letters – Barcoded [Revise the second row, first column to read:] High density or high density plus price * * * * * ECR Letters – Nonautomation (Machinable) [Revise the second row, first column to read:] High density or high density plus price * * * * * ECR Letters – Nonautomation (Nonmachinable) [Revise the second row, first column to read:] High density or high density plus price * * * * * Enhanced Carrier Route Flats – Nonautomation [Revise the second row, first column to read:] High density or high density plus price sacks * * * * * We will publish an appropriate amendment to 39 CFR part 111 to reflect these changes. * * * * *

Stanley F. Mires, Attorney, Legal Policy & Legislative Advice December 20: New Mailing Stand- December 7: International Mail Con- www.gpoaccess.gov ards for Domestic Mailing Ser- tract, 73062. DMM Advisory Stuff /fr/browse.html vices Products, 75362-75377. December 11: International Mail pe.usps.gov/DMMAdvisory.asp December 7: IMB Services Update. Postal Service  PROPOSED RULES Contract, 73699-73700. December 14: IMB Services Update.  NOTICES [None] December 12: International Mail Contract, 74032-74033; Standard December 18: USPS Introduces Sin- [None]  FINAL RULES Mail Pricing, 74033. gleSource ACS.  PROPOSED RULES December 20: Product List Update, December 19: New International December 20: New Mailing Standards [None] Stuff 75377-75379. Mail Contract, 75200. for Domestic Mailing Services  FINAL RULES Postal Regulatory Commission December 20: New International Products. December 7: International Mail:  NOTICES Mail Contract, 75452-75453. December 21: IMB Services Update. Product Rate and Fee Changes, December 5: International Mail December 21: International Mail [TOP] 72960-72966. Contract, 72412-72413. Contract, 75678-75679.

Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 25

MFSA Calendar Stuff MFSA Midwinter Conference Loews Don CeSar Hotel http://about.usps.com/postal-bulletin St Pete Beach FL In the December 13 issue (PB# 22352): February 5-8, 2013  Effective January 1, DMM 601.10 is revised to adopt new marking standards for parcels MFSA Annual Conference containing mailable hazardous materials. The Postal Service will also make correspond- Rancho Bernardo Inn ing revisions to Publication 52, Hazardous, Restricted, and Perishable Mail, as soon as San Diego CA possible thereafter. The Publication 52 revisions will be provided in a later edition of June 25-28, 2013 ------the Postal Bulletin. USPS Calendar  Effective January 1, Labeling Lists L001, L002, L003, L004, L005, L006, L007, L008, L009, L011, L012, L201, L601, L602, L605, L606, L607, and L801 are revised to reflect changes Mailers Technical Advisory in mail processing operations. Mailers are encouraged to label according to these re- Committee (MTAC) (At USPS Headquarters) vised lists immediately but no later than January 31. February 19-21, 2013  Effective January 27, DMM 102, 126, 136, 153, 154, 155, 156, 223, 323, 401, 402, 433, May 14-16, 2013 434, 453, 454, 455, 456, 503, 505, 507, 508, 602, 604, 703, 705, 707, and 708 are revised August 27-29, 2013 to reflect changes to prices and mailing standards for the following Competitive Products: November 19-21, 2013 Express Mail, Priority Mail, First-Class Package Service, Parcel Select, Standard Post, Extra National Postal Forum Services, Return Services, Mailer Services, and Recipient Services. San Francisco CA  Effective January 27, IMM 123, 141, 152, 213, 221, 222, 223, 232, 233, 252, 253, 254, March 17-20, 2013 255, 265, 292, 293, 322, 371, 372, and the Individual Country Listings are revised to re- Washington DC flect changes to prices and standards for the international shipping services noted. March 16-19, 2014  Effective January 27, IMM 134, 135, 138, 141, 142, 152, 241, 242, 243, 244, 272, 273, Anaheim CA 274, 275, 311, 312, 332, 381, 423, 771, 781, 921, 941, and the Individual Country List- May 17-20, 2015 [TOP] ings are revised to reflect changes to prices and standards for the international mailing services noted. This Week in Postal  Effective January 27, IMM 524.21 is revised to reflect that mailers shipping goods to Su- MFSA members dan, including “gift parcels or humanitarian donations,” must file export information. are invited to  Effective January 27, IMM 613.3 is revised to remove two conditions by which the Post- listen to this al Service may disqualify a wholesaler from the Postal Qualified Wholesaler program. podcast about postal issues, produced by Post-  Effective November 15, Publication 52, Hazardous, Restricted, and Perishable Mail, is com and MFSA. revised to indicate the new standards when mailing primary and secondary lithium cells Just click on the link above or go or lithium batteries internationally, or to and from an APO, FPO, and DPO destinations. to http://thisweekinpostal.info/.  Effective December 13, Publication 431, Post Office Box Service and Caller Service Fee Groups, was revised to include the changes shown. [TOP]

Attention Postal Points subscribers: Remember to join the Postal Points in Review webinar The online discussion of this issue will be at 1pm ET on Friday, December 28, and will be sponsored by Pitney Bowes.

There is no charge to participate but you must register; follow the link on MFSA’s home page (www.MFSAnet.org).

Mailing & Fulfillment Service Association 1421 Prince Street, Suite 410, Alexandria, VA 22314-2806 703-836-9200 800-333-6272 703-548-8204 (FAX) www.MFSAnet.org Leo Raymond, Postal Points Editor MFSA Board of Directors and Officers CHAIRMAN OF THE BOARD TREASURER PRESIDENT AND CEO Michael Kellogg (2013) Tom Duchene (2013) Tammy Caserta (2013) Dave Lewis (2014) John Palazzolo (2013) Corey Smith (2014) Ken Garner Century Direct, LLC TDMS Think Patented ProList, Inc. AdPhos North America, Inc. Satori Software, Inc. MFSA Long Island City NY Huntington Beach CA Dayton OH Gaithersburg MD Cincinnati OH Seattle, WA Alexandria VA VICE CHAIRMAN IMMEDIATE PAST CHAIRMAN Ted Kulpinski (2013) Ken Gossett Joy Franckowiak (2014) Wayne Marshall (2014) Wesley Powell (2014) Mike Stewart (2013) Universal/Wilde AMI Valpak EDWARDS TMR Direct Great Lakes Integrated Holliston MA Alexandria VA St. Petersburg FL Des Moines IA Colorado Springs CO Avon Lake OH SECOND VICE CHAIRMAN Tim Johnson (2013) Charles Buchanan (2013) Tom Glassman (2015) Ken Orr (2014) Anita Pursley (2013) Joy Zehrbach (2015) Impact Proven Solutions World Marketing, Inc. NPI ICS Marketing Support Svcs. RR Donnelley Bus. Extension Bureau of Texas, Inc. Minneapolis MN Dallas TX Fort Worth, TX Lansing MI Atlanta GA Houston, TX

Postal Points is published every three weeks and provided to MFSA members and colleagues electronically. For membership or subscription assistance, call Tyler Keeney at (800) 333-6272, extension 206, or send an e-mail to [email protected]; provide your name, title, company, and e-mail address. Postal Points is protected by the copyright laws of the United States (Title 17, US Code). Reproduction of the contents of this newsletter is prohibited without the written consent of the Mailing & Fulfillment Service Association. Copyright 2012 Mailing & Fulfillment Service Association.

Mailing & Fulfillment Service Association Postal Points – December 24, 2012 – Page 26