Postal Regulatory Commission Submitted 10/10/2018 1:35:34 PM Filing ID: 106732 Accepted 10/10/2018

BEFORE THE POSTAL REGULATORY COMMISSION WASHINGTON, D.C. 20268-0001

MARKET-DOMINANT PRICE CHANGE Docket No. R2019-1

UNITED STATES POSTAL SERVICE NOTICE OF MARKET-DOMINANT PRICE CHANGE

By its attorneys:

Nabeel R. Cheema Chief Counsel, Pricing & Product Support

__/s/ Kara C. Marcello______

Kara C. Marcello Christopher C. Meyerson David H. Rubin Maria W. Votsch

475 L'Enfant Plaza, SW Washington, D.C. 20260 (202) 268-4031 [email protected] October 10, 2018

TABLE OF CONTENTS

I. Overview of Price Case ...... 1

II. Price Cap Compliance ...... 2

A. Annual CPI-U Based Cap Space ...... 2

B. Unused Cap Space from Previous Years ...... 2

C. Total Available Cap Space ...... 3

D. Percentage Change in Rates ...... 4

E. Unused Cap Space After Price Change ...... 4

III. Discussion of New Prices ...... 5

A. First-Class Mail ...... 5

B. USPS Marketing Mail ...... 14

C. Periodicals ...... 24

D. Package Services ...... 26

E. Special Services ...... 27

F. Objectives and Factors ...... 29

G. Preferential Rates ...... 30

IV. MCS Changes ...... 32

V. Other Issues ...... 34

I. Overview of Price Case

The Governors of the United States Postal Service have authorized new prices

for market-dominant products. Pursuant to section 3622 of title 39 and 39 C.F.R. part

3010, the Postal Service submits the prices for Postal Regulatory Commission review.

The Postal Service continues to hold that the objectives of section 3622 cannot

be met without fundamental changes to the market-dominant ratemaking system, and

therefore looks forward to the Commission’s conclusion of its Ten Year Review in

Docket No. RM2017-3. In the meantime, the prices approved by the Governors are

designed to meet the statutory objectives to the extent possible within the limited

authority that is presently available to the Postal Service.

The schedule of new prices appears in Attachment A.1 Pending Commission

review, the prices will take effect at 12:01 a.m. on January 27, 2019. The Postal

Service is publicizing the price changes via Press Release, Industry Alert, DMM

Advisory, and on usps.com. The Postal Service will also provide notice in future issues of the PCC Insider, Postal Bulletin, and Federal Register.

In compliance with Rule 3010.12(a)(4), the Postal Service identifies Steven

Phelps as the official available to respond to Commission inquiries:

Steven Phelps Acting Manager, Pricing 475 L’Enfant Plaza SW, Room 4136 Washington, D.C. 20260

1 The prices are set forth in Mail Classification Schedule format in order to satisfy both subparts (a)(1) and (b)(11) of Rule 3010.12. - 2 -

The remainder of this Notice is structured as follows. Part II details compliance

with the current ratemaking system’s price cap.2 Part III discusses the new prices and

workshare discounts and their compliance with applicable law.3 Part IV describes

associated changes to the Mail Classification Schedule (MCS).4 Part V reviews the

timeline to implementation.

II. Price Cap Compliance

The Postal Service is making a Type 1-B rate adjustment, meaning that it is

using both the pricing authority (or cap space) that it is permitted under 39 U.S.C. §

3622(d)(1)(A) – that is, cap space equaling the change in the Consumer Price Index for

All Urban Consumers (CPI-U) since the last price case – as well as the unused cap space from previous years that it is allowed under 39 U.S.C. § 3622(d)(2)(C).

A. Annual CPI-U Based Cap Space

Using the most recent data from the Bureau of Labor Statistics, and in conformance with Rule 3010.22, the cap space available to the Postal Service based on

CPI-U is 2.419 percent. In compliance with Rule 3010.12(b)(1), the calculations underlying this figure are presented in Attachment C.5

B. Unused Cap Space from Previous Years

The unused cap space available to the Postal Space from previous years is listed

in the table that follows on the next page.

2 Part II is intended to satisfy subparts (b)(1) through (b)(4) of Rule 3010.12. 3 Part III is intended to satisfy subparts (b)(5) through (b)(8) of Rule 3010.12. 4 Part IV is intended to satisfy subpart (b)(11) of Rule 3010.12. 5 See also Postal Regulatory Commission, 12-Month Average Change in CPI-U (Sept. 14, 2018), at http:// www.prc.gov/sites/default/files/CPI%20091418.pdf. - 3 -

Table 1 Available Unused Cap Space

Class Unused Authority (%) First-Class Mail 0.078 USPS Marketing Mail 0.072 Periodicals 0.101 Package Services 0.103 Special Services 0.104

The Postal Service has taken these figures directly from the Commission’s workpapers

in Docket No. R2018-1,6 obviating the need for new workpapers to derive them, as

would otherwise be required by Rule 3010.12(b)(2).

C. Total Available Cap Space

Combining the current CPI-U based cap space with the unused cap space from previous years results in total available cap space in the following amounts:

Table 2 Total Available Cap Space

Class Total Cap Space (%) First-Class Mail 2.497 USPS Marketing Mail 2.491 Periodicals 2.520 Package Services 2.522 Special Services 2.523

6 See PRC Docket No. R2018-1, PRC–LR–R2018–1/1 (at “PRC-CAPCALC-FCM-R2018-1.xlsx,” tab “Percent Change Summary,” cell B29), PRC–LR–R2018–1/2 (at “PRC-CAPCALC-MM-R2018-1.xlsx,” tab “Price Change Summary,” cell C19), PRC–LR–R2018–1/3 (at “PRC-CAPCALC-PER-R2018-1.xlsx,” tab “Summary,” cell F22), PRC-LR-R2018-1/4 (at “PRC-CAPCALC-PACKSERV-R2018-1.xlsx,” tab “3. All Package Services Summary,” cell D41), and PRC-LR-R2018-1/5 (at “PRC-CAPCALC-SS-R2018-1.xlsx,” tab “6. Rate Cap Authority,” cell D14) (Nov. 9, 2017). - 4 -

D. Percentage Change in Rates

As in past price cases, prices for some products and categories within each class

will increase, while others may decrease. The resulting prices represent the following

percentage changes by class:

Table 3 Price Change Percentages

Class Percent Change First-Class Mail 2.486 USPS Marketing Mail 2.479 Periodicals 2.520 Package Services 2.522 Special Services 2.512

The workpapers required by Rule 3010.12(b)(3) deriving these figures are contained in the library references accompanying this Notice, with the underlying calculations

conforming to Rule 3010.23.7

E. Unused Cap Space After Price Change

The following amounts of cap space will remain after this price case:

Table 4 Unused Cap Space After Price Change

Class Remaining Cap Space (%) First-Class Mail 0.011 USPS Marketing Mail 0.012 Periodicals 0.000 Package Services 0.000 Special Services 0.011

7 See USPS–LR–R2019–1/1 (at “CAPCALC-FCM-R2019-1.xlsx,” tab “Percent Change Summary,” cell E19); USPS–LR–R2019–1/2 (at “CAPCALC-USPSMM-R2019-1.xlsx,” tab “Price Change Summary,” cell C7); USPS–LR–R2019–1/3 (at “CAPCALC-PER-R2019-1.xlsx,” tab “Summary,” cell F21); USPS–LR– R2019–1/4 (at “CAPCALC-PACKSERV-R2019-1.xlsx,” tab “All Package Services Summary,” cell F22); USPS–LR–R2019–1/5 (at “CAPCALC-SpecServ-R2019-1.xlsx,” tab “Change Calc,” cell E4). - 5 -

The underlying calculations required by Rule 3010.12(b)(4) are contained in the library

references accompanying this Notice.8 In compliance with Rule 3010.12(e), the library

references also show the amount of previous years’ unused cap space utilized by each

class under the proposed adjustment.9

III. Discussion of New Prices

This section summarizes the new prices by class. It also reviews each class’s

workshare discounts and, in compliance with Rule 3010.12(b)(6), justifies every

workshare discount that exceeds avoided costs. The schedules required by Rule

3010.12(b)(5) showing workshare discounts and avoided costs, along with their

underlying calculations, appear in Attachment B.

Following the class-specific discussions, the section explains how the planned

price changes are designed to help achieve the objectives and properly take into

account the factors of 39 U.S.C. § 3622, as required by Rule 3010.12(b)(7). Finally, in

compliance with Rule 3010.12(b)(8), the section closes with a discussion of how the

planned price changes are consistent with the preferential rate requirements of 39

U.S.C. §§ 3626, 3627, and 3629.

A. First-Class Mail

1. Summary of Price Changes

Prices for the five First-Class Mail products will change by the following amounts:

8 See USPS–LR–R2019–1/1 (at “CAPCALC-FCM-R2019-1.xlsx,” tab “Percent Change Summary,” cell B29); USPS–LR–R2019–1/2 (at “CAPCALC-USPSMM-R2019-1.xlsx,” tab “Price Change Summary,” cell C18); USPS–LR–R2019–1/3 (at “CAPCALC-PER-R2019-1.xlsx,” tab “Summary,” cell F22); USPS–LR– R2019–1/4 (at “CAPCALC-PACKSERV-R2019-1.xlsx,” tab “All Package Services Summary,” cell D39); USPS–LR–R2019–1/5 (at “CAPCALC-SpecServ-R2019-1.xlsx,” tab “Rate Cap Authority Calcs,” cell C10). The figures in Table 4 are also obtained by subtracting the figures in Tables 3 from the figures in Table 2. 9 Id. - 6 -

Table 5 First-Class Mail Price Changes

Product Percent Change Single-Piece Letters/Postcards 7.534 Presort Letters/Postcards 0.999 Flats -10.951 Outbound Single-Piece 0.000 First-Class Mail International Inbound Letter Post 7.337 Total First-Class Mail 2.486

Within the Letters products, the prices for one-ounce mailpieces will increase as

follows:

Table 6 First-Class Mail First-Ounce Prices

Current New Change Percent Change Stamped Single-Piece $0.50 $0.55 $0.05 10.0 Metered Single-Piece $0.47 $0.50 $0.03 6.4 MAADC Automation $0.424 $0.428 $0.004 0.9 AADC Automation $0.408 $0.412 $0.004 1.0 5-Digit Automation $0.378 $0.383 $0.005 1.3

Prices for Single-Piece Letters/Postcards will see an above-average increase of 7.534 percent. The one-ounce Stamped Letters price will increase by 5 cents, to 55 cents.

The price for one-ounce Metered Letters will increase by 3 cents, to 50 cents. The additional ounce price and the nonmachinable surcharge will each decrease by 6 cents,

from 21 cents to 15 cents. Prices for Presort Letters/Postcards will increase by 0.999

percent, lower than the class average.

The Postal Service is deliberately setting the Stamped Letters, additional ounce,

and nonmachinable surcharge prices at round numbers divisible by five, to better achieve the “simplicity of structure” called for by Section 3622(c)(6). This should facilitate convenience for retail customers, for whom a straightforward, understandable - 7 -

pricing structure is more important than it is for commercial customers, who do not rely on stamps. Of course, moving to this structure (while still raising prices) requires that the Postal Service apply a substantial amount of this year’s pricing authority to Stamped

Letters. The impact of this increase should be mitigated by the fact that the Postal

Service is effectively reducing the prices for pieces heavier than one ounce and for nonstandard shaped pieces.10 In addition, the Single-Piece Postcard price will remain

the same at 35 cents. Importantly, the Postal Service intends to maintain this simplicity

of structure for retail customers into future years, meaning that Stamped Letters may

not see an increase in every price case (subject to the business conditions that obtain in

coming years).

In addition, the Postal Service is purposely increasing the differential between the

Stamped and Metered Letters prices from three cents to five cents, both to better retain

those non-Presort customers who most use the mail, and to enhance operational

efficiency. Meter-based payment is more efficient than stamp-based payment – it

eliminates the need for stamp production, distribution, and cancellation – and fosters

more consistent use of the postal system, slowing the migration of mail volume to

electronic channels.11 Small business volume in particular should be protected by this

decision.

The smaller increase for Presort Letters as compared to Stamped and Metered

Letters should help preserve volume in the category of First-Class Mail that both

10 Thus, for example, many holiday cards and invitations will be sent at a less expensive overall rate than before. 11 That the Postal Service must account for electronic diversion in its pricing decisions demonstrates that, as a practical matter, market-dominant pricing is constrained by marketplace forces, and therefore a price cap is not necessary to achieve the statutory objectives. - 8 -

provides higher unit contribution and is most at risk for electronic diversion.12 With that

said, and as noted above, maintaining a retail rate structure based on round numbers into future years may require that the Postal Service follow this year’s below average

increase for Presort Letters with a higher than average increase next year.

Within Flats, the Postal Service is decreasing prices for Single-Piece Flats 11.0

percent, Non-Automated Flats 10.5 percent, and Automated Presort Flats 10.8 percent.

These reductions are driven by the Postal Service’s decision to match the additional ounce Flats price with the additional ounce Letters price, lowering both from 21 cents to

15 cents.

The Postal Service is correcting a pricing anomaly between Business Reply Mail

(BRM) and Qualified Business Reply Mail (QBRM). When the Metered price was first introduced in Docket No. R2013-10, Basic and High Volume BRM shifted from the

Stamped price to the Metered price, while QBRM continued to pay the Stamped price, minus a discount. Because the differential between the Metered and Stamped prices was only one cent at that time, the discount resulted in QBRM being priced lower than

BRM, as intended. The differential between the Metered and Stamped Letters prices

later increased to 3 cents in Docket No. R2017-1, eclipsing the QBRM discount and

leaving BRM priced lower than QBRM. Following this price change, the Stamped

Letters price will apply to both BRM and QBRM, with QBRM continuing to receive a discount, thus properly realigning the two categories.

12 See, e.g., Postal Regulatory Commission, Financial Analysis of United States Postal Service Financial Results and 10-K Statement, Fiscal Year 2017 (Apr. 5, 2018), at Appendix A (contribution per piece of 18.853 cents for Single-Piece Letters and Cards and 25.862 cents for Presort Letters and Cards); Postal Regulatory Commission, Financial Analysis of United States Postal Service Financial Results and 10-K Statement, Fiscal Year 2016 (Mar. 31, 2017), at Appendix A (contribution per piece of 21.646 cents for Single-Piece Letters and Cards and 27.269 cents for Presort Letters and Cards). - 9 -

In International, Inbound Letter Post prices are increasing 7.337 percent, as a

consequence of changes in terminal dues resulting from the Universal Postal

Convention; the greatest portion of the increase can be attributed to a steep, stepped

increase in inbound terminal dues rates for packet shapes.

Overall, the First-Class Mail pricing structure reflects the complicated tradeoffs that the Governors must make with the limited pricing authority available to the Postal

Service, balancing competing statutory objectives and taking into account powerful marketplace forces such as electronic diversion. Variances among the Stamped,

Metered, and presort increases are not new,13 and while some parties may disagree

with specific pricing decisions that have been made, those decisions fall within the wide

discretion that the Postal Accountability and Enhancement Act placed with the

Governors. Furthermore, given the significant constraints that the current price cap

imposes, rate design must be viewed not just as a yearly snapshot but also from the

perspective of a longer-term, multiple year business strategy.

2. Workshare Discounts

All First-Class Mail workshare discounts are equal to or below their avoided

costs, with the exception of Automated Mixed AADC Letters, which is at 105.9 percent.

13 See, e.g., Order No. 3610, Order on Price Adjustments for First-Class Mail, Standard Mail, Periodicals, and Package Services Products and Related Mail Classification Changes, PRC Docket No. R2017-1 (Nov. 15, 2016), at 18-20 (approving First-Class Mail price structure including a 4.3% increase in Stamped Single-Piece Letters, a 1.1% decrease in Metered Single-Piece Letters, and an overall 0.243% decrease in Presort Letters/Postcards); Order No. 2365, Order on Price Adjustments for First-Class Mail Products and Related Mail Classification Changes, PRC Docket No. R2015-4 (Feb. 24, 2015), at 5-7 (approving First-Class Mail price structure including a 0.623% increase in Single-Piece Letters/Postcards, a 2.422% increase in Presorted Letters/Postcards, a 2.437% increase in Flats, and a 10.180% increase in Parcels); Order No. 675, Order Revising Postal Service Market Dominant Price Adjustments, PRC Docket No. R2011-2 (Feb. 16, 2011), at 9-10, 17-18 (approving First-Class Mail price structure including a 0.461% increase for Single-Piece Letters/Postcards, a 1.796% increase for Presort Letters/Postcards, and a 5.343% increase for Flats). - 10 -

The Postal Service justifies this passthrough pursuant to Section 3622(e)(2)(d). The

wider gap between the Metered Letters and Mixed AADC prices will encourage more

mail to be entered as Presort mail at the Business Mail Entry Unit, creating efficiencies that go beyond the specific workshare categories already captured in the cost avoidance models. For example, migrations from Metered Letters to the Presort categories result in a reduced operating window for cancellations, such that mail can be finalized earlier, leading to earlier clearance times and reduced overtime in delivery from late trips. In addition, a shift in volumes from Metered Letters to Automated Mixed

AADC Letters reduces the amount of mail that requires processing on the Advanced

Facer Canceler System (AFCS), since Presort Letters can bypass the AFCS. Incenting

lower volumes on the AFCS supports the ongoing operational strategy to reduce the

number of these machines, which in turn will reduce maintenance needs and allow

maintenance employees to be deployed to other activities.

3. Adjustments to Billing Determinants

The Postal Service has made five adjustments to the hybrid year billing

determinants for First-Class Mail.

First, the Postal Service has adjusted the First-Class Mail International billing

determinants to reflect the Docket No. MC2019-3 proposal to reduce the Outbound

Single-Piece First-Class Mail International Large Envelopes (Flats) weight maximum

from 64 ounces to 15.994 ounces, to align more closely with Universal Postal

Convention Regulations governing the dimensions of “G” format items. Specifically, the - 11 -

Postal Service has deleted rate cells above 16 ounces,14 and, in conformance with Rule

3010.23(d)(4), has zeroed out the 265,006 pieces in the deleted cells.15

Second, the Postal Service has adjusted the billing determinants to account for

the Move Update changes approved in Docket No. R2017-7.16 The volumes reported in

the pre-adjusted billing determinants for Quarter 4 of FY 2017 through Quarter 2 of FY

2018 were the result of the now retired performance-based Move Update verification. In

contrast, the Move Update volumes reported in Quarter 3 of FY 2018 were the result of

census verification. To more accurately reflect the impact of the change in verification

method on the new prices, the Postal Service has adjusted the billing determinants using Quarter 3’s census-only volumes as a proxy for the volumes of the other three quarters in the hybrid year.

Third, the Postal Service has adjusted the billing determinants to reflect the shift of BRM mail from the Metered price to the Stamped price. Specifically, it has moved

204,173,254 pieces from the first ounce Metered Letters price to the first ounce

Stamped Letters price, and moved 33,154,405 in additional ounce pieces from Metered to Stamped.17

Fourth, the Postal Service has adjusted Share Mail volumes to subtract the

market test volumes for Share Mail out of the total volumes reported in the billing

determinants. The Share Mail volumes reported in the billing determinants contain both

14 The Postal Service lacks the granular data necessary to isolate the volume above 15.994 ounces in the rate cell covering pieces between 12.1 and 16 ounces. 15 Cf. Order No. 4215, Order on Price Adjustments for First-Class Mail, USPS Marketing Mail, Periodicals, Package Services, and Special Services Products and Related Mail Classification Changes, PRC Docket No. R2018-1 (Nov. 9, 2017), at 27. 16 Order No. 4059, Order Approving Price Adjustment and Classification Changes Related to Move Update Assessment, PRC Docket No. R2017-7 (Aug. 23, 2017), at 19–20. 17 The additional ounce volume shift is inconsequential to the cap calculation because the additional ounce prices are the same for Metered mail and Stamped Mail. - 12 -

regular Share Mail pieces and a small number of pieces that continue to appear in the mail stream from the expired Alternate Postage market test.18 Because market test pieces should not be weighted into the price cap calculations, the market test pieces are subtracted out of the billing determinants totals for Share Mail.

And fifth, Picture Permit revenues from the billing determinants have been converted to pieces by multiplying the dollar amount by 100. The data source for the billing determinants only reports revenues, not volumes, for Picture Permit. These revenues need to be converted to volumes to give them their proper weight in the cap calculations.

4. Promotions

The Postal Service is offering six promotional discounts in Calendar Year 2019, four of which apply to eligible First-Class Mail: Emerging & Advanced Technology;

Earned Value Reply Mail; Personalized Color Transpromo; and Informed Delivery. The

Informed Delivery promotion is new, while the other three were offered in previous years. Those three result in the generation of $21.4 million in cap space, or 0.082 percent (the Postal Service is electing not to generate cap space with Informed

Delivery). The First-Class Mail workpapers accompanying this Notice include the calculations underlying these figures. Classification changes associated with the promotions are shown in Attachment A. The 2019 Promotions Calendar is provided in

Attachment D.

18 See PRC Docket No. MT2011-1. - 13 -

a. Emerging & Advanced Technology

The Emerging and Advanced Technology promotion encourages mailers to

incorporate mobile and other technologies into their mailpieces. As in prior years, the

promotion grants a 2 percent discount on the qualifying postage for First-Class Mail

presort or automation letters, postcards, and flats (as well as regular and nonprofit

USPS Marketing Mail letters and flats, as discussed below) that are sent during the established program period, and which either include affixed or embedded technology that allows the recipient to engage in a technological experience, or have been automatically generated by the recipient’s applicable online activities. To receive the discount, mailers must comply with the eligibility requirements of the program. The

Postal Service will offer this discount from March 1 through August 31, 2019.

b. Earned Value Reply Mail

The Earned Value Reply Mail promotion encourages mailers to distribute

Business Reply Mail (BRM) and Courtesy Reply Mail (CRM) envelopes and cards,

along with Share Mail. Mailers who satisfy the promotion requirements, including a new

threshold requirement for repeat participants to meet or exceed 95 percent of their

comparable volume last year, will receive a three-cent postage credit for each BRM,

CRM, and Share Mail piece that is placed in the mail stream and scanned during the

promotion period.19 Customers may apply the credit toward future mailings of First-

Class Mail presort and automation, cards, letters, and flats, and USPS Marketing Mail

letters and flats. The Postal Service will offer this promotion from April 1 through

June 30, 2019.

19 The threshold will not apply to new mailers. - 14 -

c. Personalized Color Transpromo

The Personalized Color Transpromo promotion enhances the value of First-Class

Mail by encouraging mailers of bills and statements to use color messaging. First-Class

Mail presort and automation letters – bills and statements only – that meet the

promotion requirements will be eligible for an upfront 2 percent postage discount during

the promotion period. Because First-Class Mail is sealed against inspection, mailers

seeking to qualify for the promotion must submit samples for pre-approval prior to

mailing. The Postal Service will offer this discount from July 1 through December 31,

2019.

d. Informed Delivery

The new Informed Delivery Promotion seeks to increase the adoption rate of the

Postal Service’s Informed Delivery platform, by offering a 2 percent discount off postage for mailings that incorporate Informed Delivery advertising campaigns. First-Class Mail presort and automation letters, cards, and flats are eligible. The Postal Service will offer the promotion from September 1 through November 30, 2019. In accordance with Rule

3010.12(b)(9)(ii), the Postal Service notes that the promotion has been excluded from

the cap space calculation.

B. USPS Marketing Mail

1. Summary of Price Changes

Prices for the seven USPS Marketing Mail products will increase by the following

amounts:

- 15 -

Table 7 USPS Marketing Mail Product Price Changes

Product Percent Change Letters 2.382 Flats 2.621 Parcels 2.691 High Density / Saturation Letters 3.817 High Density / Saturation Flats and Parcels 3.556 Carrier Route 0.733 Every Door Direct Mail – Retail 5.056 Overall 2.479

In accordance with the Commission’s FY 2010 Annual Compliance

Determination (ACD) directive regarding USPS Marketing Mail Flats,20 the Postal

Service notes that the proposed price increase for Flats is slightly above 105 percent of

overall USPS Marketing Mail pricing authority, meeting the schedule that the Postal

Service presented most recently in Docket No. ACR2017.21 Assuming that the average cost per piece does not change drastically, this year’s above average price increase for

Flats should improve cost coverage over the long term, by allowing revenue per piece to rise faster than cost per piece. In addition, because the proposed price increase for

Flats is larger than the proposed price increase for Letters, the cross-subsidy between the two products should be reduced. The Postal Service provides the following required pricing schedule for improving Flats cost coverage:

20 Annual Compliance Determination Report: Fiscal Year 2010, PRC Docket No. ACR2010 (Mar. 29, 2011), at 107. 21 United States Postal Service FY 2017 Annual Compliance Report, PRC Docket No. ACR2017 (Dec. 29, 2017), at 24. - 16 -

Table 8 Schedule of Flats Price Increases

Year Planned Flats Price Increase 2019 CPI-U * 1.05 2020 CPI-U * 1.05 2021 CPI-U * 1.05

Turning to Parcels, the proposed price increase for Parcels is above the class

average for USPS Marketing Mail. In FY 2017, the product’s cost coverage was 62.8

percent. The above average price increase proposed here continues the Postal

Service’s existing plan to move the product toward full cost coverage. Separately, the

Postal Service is proposing to add a Small Parcel Forwarding Fee to USPS Marketing

Mail Parcel products, similar to the existing option for Letters and Flats.

Lastly, the Postal Service notes that the significant above-average price increase for Every Door Direct Mail – Retail follows two consecutive below-average price increases for the product.22

2. Workshare Discounts

The Postal Service has made significant progress in correcting USPS Marketing

Mail passthroughs; there are eight fewer passthroughs above 100 percent in this case than there were in the FY 2017 ACD. In particular, the Postal Service has complied

with the Commission’s directive in the FY 2017 ACD to correct the following six

passthroughs: Automation Mixed ADC Flats, Nonautomation 3-Digit Nonmachinable

Letters, Nonautomation 5-Digit Nonmachinable Letters, Basic Carrier Route Flats

22 See Order No. 4215, at 37 (approving the Postal Service’s proposed 0.565 percent increase for Every Door Direct Mail – Retail, compared to an overall price increase of 1.936 percent for USPS Marketing Mail); Order No. 3610, at 29 (approving the proposed price increase of 0.568 percent, compared to an overall increase of 0.900 percent). - 17 -

Entered at DDU, High Density and Saturation DNDC Flats, and High Density and

Saturation DSCF Flats.

The following fourteen passthroughs remain above 100 percent. The Postal

Service has made progress in reducing all of these passthroughs, and justifies them below.

Table 9 USPS Marketing Mail Passthroughs Above 100 Percent

Product Rate Category Passthrough

Letters Automation Mixed AADC 1100.0% Letters DNDC Letters 129.4% DSCF Letters 133.3%

Parcels Nonprofit Mixed NDC 138.5.% Machinable Barcoded Parcels Nonprofit Mixed NDC 138.5% Irregular Barcoded Parcels Mixed NDC 138.5% Barcoded Marketing Parcels

Carrier Route DNDC Letters 147.1% DSCF Letters 152.4% Carrier Route 5-Digit Pallets at 116.7% Origin Entry, DNDC Entry, DSCF Entry, and DDU Entry

High Density & DNDC Letters 117.6% Saturation Letters DSCF Letters 119.0%

a. Letters Passthroughs

The Postal Service justifies the Automation Mixed AADC Letters passthrough

pursuant to section 3622(e)(2)(D). The Postal Service has made progress lowering the

passthrough from its previous level of 1300 percent to 1100 percent, by reducing the - 18 -

discount to $0.011.23 This discount encourages mailers to include Intelligent Mail barcodes on their mailpieces, thereby improving operational efficiency. The Postal

Service intends to reduce the passthrough in future price cases, contingent on adequate pricing flexibility, operational efficiencies, and changes in the cost avoidance.24

The Postal Service notes that, under the methodology change recently proposed

in Docket No. RM2019-1, the FY 2017 cost avoidance for Automation Mixed AADC

Letters would increase to $0.006 from $0.001.25 Had the updated methodology been in

place before the FY 2017 ACD, the FY 2017 passthrough would have been 216.7

percent rather than 1300 percent. With the $0.011 discount proposed here, the

passthrough would decrease further to 183.3 percent.

The Postal Service justifies the DNDC and DSCF dropship Letters passthroughs

pursuant to the rate shock exception in section 3622(e)(2)(B). In past cases, the

Commission accepted this justification contingent on the Postal Service’s plan to reduce

the passthroughs by at least 10 percentage points in each subsequent price case.26

In accordance with its plan, the Postal Service has reduced each of these

passthroughs by more than 10 percentage points. The DNDC dropship Letters

passthrough has been reduced to 129.4 percent from its baseline of 141.2, a decrease

23 At the same time, the Postal Service has increased the Full-Service Intelligent Mail barcode incentive to encourage the use of Full-Service Intelligent Mail. 24 The Automation Mixed AADC Letters cost avoidance has been volatile over the last several years. See Second Response of the United States Postal Service to Commission Requests for Additional Information in the FY 2017 ACD, PRC Docket No. ACR2017 (June 27, 2018), at Question 7. 25 Petition of the United States Postal Service for the Initiation of a Proceeding to Consider Proposed Changes in Analytical Principles (Proposal Eight), PRC Docket No. RM2019-1 (Oct. 5, 2018), at 6. 26 See Order No. 4215, at 43; Order No. 3610, at 38 (“[t]he Commission finds that this plan is sufficient and complies with the ACD directive”) (citing to PRC Docket No. R2017-1, United States Postal Service Notice of Market Dominant Price Adjustment (Oct. 12, 2016), at 46-47 (“[c]ontingent on price cap availability, operational efficiencies, and changes in cost avoidance, the plan for reducing these passthroughs to 100 percent is to decrease them by at least 10 percentage points ... in each subsequent market dominant price adjustment”)). - 19 -

of 11.8 percentage points.27 The DSCF dropship Letters passthrough has been

reduced to 133.3 percent from its baseline of 147.6 percent, a decrease of 14.3

percentage points. The Postal Service will endeavor to reduce these passthroughs by

at least 10 percentage points in future price cases, contingent on adequate pricing

flexibility, operational efficiencies, and changes in the cost avoidances.

b. Parcels Passthroughs

The Postal Service justifies the Nonprofit Mixed NDC Machinable Barcoded

Parcels, Nonprofit Mixed NDC Irregular Barcoded Parcels, and Mixed NDC Barcoded

Marketing Parcels passthroughs pursuant to section 3622(e)(2)(D). These discounts encourage mailers to pre-barcode their parcels, thereby increasing operational efficiency. The Postal Service relied on the same exception to justify these discounts in

Docket No. ACR2016 and Docket No. R2018-1. The Commission accepted this justification contingent on the Postal Service’s plan to reduce the passthroughs by at least 10 percentage points in each subsequent price case.28 Measured against the

baseline of 148.7 percent, the Postal Service has reduced these passthroughs by 10.2

percentage points to 138.5 percent, in accordance with its plan. The Postal Service will

endeavor to reduce these passthroughs by at least 10 percentage points in future price

cases, contingent on adequate pricing flexibility, operational efficiencies, and changes in

the cost avoidances.

27 Consistent with Commission guidance, the baseline passthroughs were calculated using the most recent discount under Docket No. R2018-1 prices and the FY 2017 avoided cost. See Order No. 4215, at 43, n.51. 28 See Order No. 4215 at 43; Annual Compliance Determination Report: Fiscal Year 2016, PRC Docket No. ACR2016 (Mar. 28, 2017), at 32 (FY 2016 ACD). - 20 -

c. Carrier Route Passthroughs

The Postal Service justifies the Carrier Route DNDC Letters and Carrier Route

DSCF Letters passthroughs pursuant to the rate shock exception in section

3622(e)(2)(B). In Docket Nos. ACR2016, R2018-1, and ACR2017, the Postal Service justified the passthroughs pursuant to the same exception; the Commission accepted

the justifications contingent on the Postal Service’s plan to reduce the passthroughs by

at least 10 percentage points in each subsequent price case.29

In accordance with that plan, the Postal Service has reduced each of these

passthroughs by more than 10 percentage points. The Carrier Route DNDC Letters

passthrough has decreased 11.7 percentage points from its baseline of 158.8 percent,

and the Carrier Route DSCF Letters passthrough has decreased 14.3 percentage

points from its baseline of 166.7 percent. The Postal Service will endeavor to reduce

the passthroughs by at least 10 percentage points in future price cases, contingent on

adequate pricing flexibility, operational efficiencies, and changes in the cost avoidances.

The Postal Service justifies the four USPS Marketing Mail 5-Digit Carrier Route

Pallet passthroughs pursuant to section 3622(e)(2)(D). These passthroughs are 116.7

percent for each entry point (Origin, DNDC, DSCF, and DDU), with cost avoidances of

$0.018 and proposed discounts of $0.021. The 5-Digit Carrier Route pallet discount is

available for pieces prepared in Carrier Route bundles and placed on 5-Digit Carrier

Route pallets, as well as pieces prepared in FSS Scheme bundles and placed on FSS

Scheme pallets. The cost avoidance for pieces prepared in Carrier Route bundles on 5-

Digit Carrier Route pallets is $0.020, while the cost avoidance for FSS Scheme

29 See Annual Compliance Determination Report: Fiscal Year 2017, PRC Docket No. ACR2017 (Mar. 29, 2018), at 35 (FY 2017 ACD); Order No. 4215, at 43; FY 2016 ACD, at 34. - 21 -

prepared pieces is $0.007 cents. The $0.018 cost avoidance is the weighted average of the two preparation populations; clearly, the majority of pallets that receive the discount are 5-Digit Carrier Route pallets prepared in non-FSS zones.30

The preparation of 5-Digit Carrier Route pallets is of significant benefit to Postal

Service operations, as these pallets can be directly cross-docked to the appropriate

delivery unit, thereby bypassing bundle and parcel sortation equipment. Consequently,

5-Digit Carrier Route pallets facilitate the efficient operation of the Postal Service by increasing processing capacity for parcel-shaped mail and other bundles that need sortation. The Postal Service believes that a discount closer to the avoided costs of the

5-Digit Carrier Route pallet preparation (as opposed to the weighted average of the 5-

Digit Carrier Route cost avoidance and the FSS Scheme cost avoidance) will encourage the increased preparation of 5-Digit Carrier Route pallets that the Postal Service needs to avoid mail processing costs resulting from less efficient mail preparation. The Postal

Service believes a discount above the isolated cost avoidance of 5-Digit Carrier Route pallets is necessary to reflect the operational benefits that will result from the

preparation of more of these pallets not just for USPS Marketing Mail flats, but also for

other shapes and classes of mail.

d. High Density & Saturation Letters Passthroughs

The Postal Service justifies the High Density & Saturation DNDC Letters and

High Density & Saturation DSCF Letters passthroughs pursuant to the rate shock

exception in section 3622(e)(2)(B). In Docket Nos. ACR2017, R2018-1, and ACR2016,

the Postal Service justified the passthroughs pursuant to the same exception; the

30 See PRC Docket No. ACR2017, USPS-FY17-11 (at “USPS-FY17-11 MM flats.xlsm,” tab “Carrier Route Avoided Cost Calc”); Preface to USPS-FY17-11, at 13–15. - 22 -

Commission accepted the justifications, contingent on the Postal Service’s plan to

reduce the passthroughs by at least 10 percentage points in each subsequent price case.31

In accordance with that plan, the Postal Service has reduced each of these

passthroughs by more than 10 percentage points. The High Density & Saturation

DNDC Letters passthrough has decreased 11.8 percentage points and the High Density

& Saturation DSCF Letters passthrough has decreased 14.3 percentage points, from

their respective baselines of 129.4 percent and 133.3 percent. The Postal Service will

endeavor to reduce the passthroughs by at least 10 percentage points in future price cases, contingent on adequate pricing flexibility, operational efficiencies, and changes in the cost avoidances.

3. Adjustments to Billing Determinants

The Postal Service has made two adjustments to the USPS Marketing Mail billing

determinants. First, to account for the introduction of the census method of Move

Update verification, the Postal Service has made an adjustment identical to the one

discussed in Section III.A.3. above with respect to First-Class Mail.

Second, simultaneous with the Docket No. R2018-1 price change in January

2018, the Postal Service amended the Domestic Mail Manual to require mailers to prepare lower-priced 5-Digit Carrier Route pallets before resorting to higher-priced 5-

Digit Merged pallets.32 The Postal Service has adjusted the billing determinants that

preceded the change to equalize the hybrid billing determinants year and reflect the

31 See FY 2017 ACD, at 37; Order No. 4215, at 43; FY 2016 ACD, at 36. 32 See New Mailing Standards for Domestic Mailing Services Products, 82 Fed. Reg. 55947–55951 (Nov. 27, 2017). - 23 -

movement of Carrier Route pieces from 5-Digit Merged pallets to 5-Digit Carrier Route pallets.

4. Promotions

The Postal Service is offering six promotional discounts in Calendar Year 2019,

five of which apply to eligible USPS Marketing Mail: Tactile, Sensory and Interactive

Engagement; Emerging & Advanced Technology; Mobile Shopping; Informed Delivery;

and Earned Value Reply Mail. Except for Informed Delivery, all of these promotions

were offered in previous years. The promotions result in the generation of $63.5 million

in cap space, or 0.382 percent (the Postal Service is electing not to generate cap space

with Informed Delivery). The USPS Marketing Mail workpapers accompanying this

Notice include the calculations underlying these figures. Classification changes

associated with the promotions are shown in Attachment A. The 2019 Promotions

Calendar is provided in Attachment D.

a. Tactile, Sensory and Interactive Engagement

The Tactile, Sensory and Interactive Engagement promotion encourages mailers

to enhance customer engagement with the mail through the use of advanced print

innovations in paper and stock, substrates, inks, and finishing techniques. Regular and

nonprofit USPS Marketing Mail letters and flats that meet the promotion requirements are eligible for an upfront two percent discount off postage during the promotion period from February 1 to July 31, 2019.

b. Emerging & Advanced Technology

The Emerging and Advanced Technology promotion provides a 2 percent

discount on the qualifying postage for regular and nonprofit USPS Marketing Mail letters - 24 -

and flats that are sent during the promotion period. The promotion is described above in the First-Class Mail discussion in Section III.A.4.

c. Mobile Shopping

This Mobile Shopping promotion encourages mailers to integrate into their mail pieces mobile technology that connects consumers to an online shopping platform.

Regular and nonprofit USPS Marketing Mail letters and flats that meet the promotion requirements are eligible for an upfront 2 percent discount off postage during the promotion period from August 1 to December 31, 2019.

d. Informed Delivery

The new Informed Delivery promotion provides mailers a 2 percent discount off postage for regular and nonprofit USPS Marketing letters and flat mailings that incorporate Informed Delivery campaigns as a component of their mailings. Mailpieces

that meet the promotion requirements are eligible for the discount during the promotion period from September 1 through November 30, 2019. As noted above, this promotion

has been excluded from the cap space calculation.

e. Earned Value

As described in Section III.A.4 above, First-Class Mail mailers who satisfy the promotion requirements may apply their three-cent postage credits toward future mailings of First-Class Mail presort and automation, cards, letters, and flats, and USPS

Marketing Mail letters and flats.

C. Periodicals

1. Summary of Price Changes

Prices for the two Periodicals products will increase as follows: - 25 -

Table 10 Periodicals Price Changes

Product Percent Change Outside County 2.543 Within County 2.015 Overall 2.520

In FY 2017, Periodicals once again did not cover its attributable costs. At this

point, this is a function of the lack of adequate pricing flexibility at the class level. Given

the limited tools currently available to correct Periodicals cost coverage, the Postal

Service is proposing:

 above-average increases for trays and sacks to boost their cost coverage;

 above-average increases for all bundles and pallet containers, to raise

their cost coverage and encourage operational efficiency;

 increasing the price differential between basic Carrier Route and

Machinable Automation 5-Digit Flats, to encourage the preparation of

Carrier Route pieces; and

 increasing piece prices to bring all workshare discount passthroughs down

to 100 percent or below.33

Overall, the current ratemaking system is not suited to bringing about a meaningful change in Periodicals’ cost coverage. Until the Postal Service is granted additional pricing flexibility, the class is likely to remain underwater.

33 Given the small amount of cap space available, all of the above-mentioned changes can be achieved only by keeping pound prices constant. - 26 -

2. Workshare Discounts

No Periodicals workshare discounts exceed avoided costs. The passthroughs

for the two In-County and nine Outside County workshare discounts that exceeded

avoided costs in the FY 2017 ACD are now set equal to or below 100 percent.34

3. Adjustments to Billing Determinants

The Postal Service has made one adjustment to the Periodicals billing

determinants. As discussed with respect to USPS Marketing Mail in Section III.B.3

above, the Postal Service has adjusted the Periodicals billing determinants to reflect the

movement of Carrier Route pieces from 5-Digit Merged pallets to 5-Digit Carrier Route pallets.

D. Package Services

1. Summary of Price Changes

The prices for the four Package Services products will increase as follows:

Table 11 Package Services Price Changes

Product Percent Change Alaska Bypass Service 2.200 BPM Flats 2.465 BPM Parcels 2.217 Media Mail and Library Mail 2.954 Overall 2.522

The Postal Service is applying above average increases to the Media/Library Mail

products in order to improve cost coverage. However, even after these increases,

Media Mail and Library Mail pieces will still be priced below other ground parcel

products, recognizing their educational, cultural, scientific, and informational value.

34 Compare FY 2017 ACD, at 19, with Attachment B. - 27 -

2. Workshare Discounts

All Package Services workshare discounts are equal to or below their avoided costs. The Postal Service has complied with the Commission’s directives in the FY

2017 ACD by aligning the following passthroughs with avoided costs: BPM Flats DNDC dropship, BPM Flats DSCF dropship, BPM Parcels DNDC dropship, and BPM Parcels

DSCF dropship.35

3. Adjustments to Billing Determinants

The Postal Service has made no adjustments to the Package Services billing determinants.

E. Special Services

1. Summary of Price Changes

The prices for Special Services will increase as follows:

Table 12 Special Services Product Price Changes

Product Percent Change Ancillary Services 1.941 International Ancillary Services 3.196 Address Management Services 2.890 Caller Service and Reserve Numbers 3.680 Credit Card Authentication 5.000 International BRM Service 2.728 Money Orders 3.965 Post Office Box Service 3.985 Customized Postage 3.030 Stamp Fulfillment Services 3.456 Overall 2.512

35 FY 2017 ACD, at 41-42. - 28 -

Given rounding constraints and other pricing concerns, prices for some products within Special Services are increasing above the class average, while prices for other products are receiving a below average increase or no increase at all. Within products, the Postal Service is increasing most prices within a range of 0 to 5 percent. Prices that are increasing outside that range or are otherwise noteworthy are discussed below.

Within Ancillary Services, Permit fees increase by 4.4 percent. The overall

Return Receipt price increase is 2.9 percent, with electronic Return Receipt service increasing by 6.7 percent to reflect its value of service. Regular Business Reply Mail per piece fees are being decreased to offset the postage increase resulting from making the First-Class Mail Stamped Letters prices apply to these Business Reply Mail pieces.

The overall price increase for Address Management Services is 2.9 percent.

However, prices for thirteen of the services will remain unchanged, as the current prices adequately cover costs and the Postal Service wishes to avoid discouraging mailers from using services that will improve the quality of their mailing addresses.

The Credit Card Authentication fee will increase 5.0 percent, reflecting the convenience it provides to customers. Money Orders are receiving a 4.0 percent increase, to reflect the value of the service and to ensure Money Orders continue to cover costs, even after the costing methodology changes resulting from Docket No.

RM2018-7 have been implemented. Finally, Stamp Fulfillment Services is receiving a

3.5 percent overall price increase, with the goal of improving cost coverage.

2. Workshare Discounts

There are no Special Services workshare discounts. - 29 -

3. Adjustments to Billing Determinants

The Postal Service has not adjusted the Special Services billing determinants.

F. Objectives and Factors

Rule 3010.12(b)(7) requires a discussion demonstrating that the proposed prices are designed to help achieve the objectives in 39 U.S.C. § 3622(b) and properly take into account the factors in 39 U.S.C. § 3622(c).36 While the primary purpose of the

objectives and factors is to guide the Commission’s establishment, review, and revision

of the ratemaking system, the Postal Service also has considered the objectives and

factors in setting the new prices, as evidenced in the class-specific discussions above.

From a more general perspective, the content and timing of this Notice are intended to

satisfy Objectives 2 and 6, by informing customers of predictable and stable price

changes in a transparent proceeding. In designing the prices, the Postal Service has

exercised its pricing flexibility in a manner aimed at increasing revenues, to the extent

the price cap allows, thus fulfilling Objectives 4 and 5. The Postal Service believes that

the intra-product price differentials described in the class-specific discussions above

result in a schedule of rates that continues to be just and reasonable, satisfying

Objective 8. Many of the price changes also are designed to maximize incentives to

reduce costs and increase efficiency, as appropriate under Objective 1. The above

discussions also evince the Postal Service’s consideration and balancing of multiple

factors, particularly Factors 1 through 8, 11, and 12.

36 For ease of reference, each objective and factor is referred to here according to its placement in section 3622(b) and section 3622(c), respectively. For example, section 3622(b)(1) is referred to as Objective 1. - 30 -

G. Preferential Rates

Section 3626 sets forth pricing requirements for certain preferred categories of mail. The Postal Service has complied with these requirements in this price change, as explained below.

First, section 3626(a)(3) requires that the prices for Within County Periodicals

“reflect its preferred status,” as compared to the prices for regular rate Periodicals. The

Postal Service continues to recognize the preferential status of Within County

Periodicals by keeping its prices below those of regular Outside County Periodicals.

Second, section 3626(a)(4)(A) requires that Nonprofit and Classroom Periodicals

receive, as nearly as practicable, a 5 percent discount from regular rate postage, except

for advertising pounds. Consistent with past practice, the Postal Service maintains this

rate preference by giving Nonprofit and Classroom pieces a 5 percent discount on all

components of postage, except for advertising pounds and ride-along postage.

Third, section 3626(a)(5) requires that Science of Agriculture Periodicals be given preferential treatment for their advertising pounds. Consistent with past practice, the Postal Service continues to grant these publications advertising pound rates for

DDU, DSCF, DADC, and Zones 1 & 2 that are 75 percent of the advertising pound rates applicable to regular Outside County Periodicals.

Fourth, section 3626(a)(6) requires that Nonprofit USPS Marketing Mail prices be set to achieve an average revenue per piece that is, as nearly as practicable, 60 percent of the commercial average revenue per piece. The prices set forth in this - 31 -

Notice achieve a revenue per piece ratio of 59.96 percent.37 The Postal Service is also

keeping nonprofit discounts equal to the comparable commercial discounts.38

Fifth, section 3626(a)(7) requires that the prices for Library Mail be equal, as

nearly as practicable, to 95 percent of the prices for Media Mail. This is achieved by

setting each Library Mail price element equal to 95 percent of the corresponding Media

Mail price element. The Postal Service has followed this approach in setting its new prices.

Finally, section 3626(g)(4) requires that preferential treatment be accorded to the

Outside County pieces of a Periodicals publication having fewer than 5,000 Outside

County pieces and at least one Within County piece. In conformance with this

requirement, the Postal Service is maintaining the “limited circulation” discount that

gives these mailers a discount equivalent to the Nonprofit and Classroom Periodicals

discount.

In addition to a discussion of section 3626, Rule 3010.12(b)(8) also requires the

Postal Service to discuss how its planned prices are consistent with sections 3627 and

3629. Neither section is implicated by this price change, because the Postal Service is

not altering the free rates and is not changing the eligibility requirements for nonprofit

prices.

37 Details of the nonprofit-commercial revenue per piece ratio are contained in USPS–LR–R2019–1/2. Consistent with past practice, the Postal Service has calculated this ratio at the class level. 38 In all of the USPS Marketing Mail tabs of Attachment B, the Postal Service has added an additional column reflecting the Nonprofit discounts next to the calculation of Commercial discounts. - 32 -

IV. MCS Changes

Rule 3010.12(b)(11) requires that this Notice be accompanied by a schedule

identifying every change to the MCS that will be necessary to implement the planned

price changes. Attachment A shows the new prices and related product description

changes incorporated into a revised draft of the market-dominant section of the MCS.39

The substantive classification changes and minor corrections that are necessary for or

otherwise contained in this filing include the following:

 A note has been added to the size and weight limitations chart for Media

Mail/Library Mail, describing a charge for nonmailable overweight parcels that

was previously announced in the Federal Register40 and will go into effect on the

same date as the price changes discussed in this filing. For transparency

purposes, this language is being added to the applicable size and weight

limitation sections in the MCS, even though the charge does not apply to any

mailable items or any particular postal products. Parcels exceeding the 70-

pound weight limit are nonmailable under current Postal Service regulations, but

they continue to be identified in the mailstream, where they create safety and

handling issues. This classification change explains that a charge, as described

in the Domestic Mail Manual, will apply to nonmailable items that exceed the 70

pound weight limitation generally applicable in the Postal Service, including to

39 Attachment A is based on the July 15, 2018 MCS draft published by the Commission at http://www.prc.gov/mail-classification-schedule. The classification changes proposed in this filing are shown in legislative format. 40 See Overweight Items, 83 Fed. Reg. 43,985 (Aug. 29, 2018). An additional Federal Register Notice confirming the implementation and amount of the charge will be published separately, prior to its inclusion in the Domestic Mail Manual. - 33 -

Media Mail/Library Mail. As under current regulations, overweight parcels will not

be delivered; no service is provided for such parcels.

 The definitions of Machinable Stamped Letters and Machinable Metered Letters

have been changed to reflect the reclassification of BRM pieces as Machinable

Stamped Letters.

 The classification changes proposed in Docket No. MC2019-3 for First-Class

Mail International are also reflected here, for consistency.

 A Small Parcel Forwarding Fee has been added to USPS Marketing Mail parcel

products, and the language for all Forwarding and Return Service sections has

been clarified to correctly reflect the way that the Address Correction Service

option works (e.g., no returns), and to remove an incorrect extra reference to

“price”.

 The Periodicals class description has been updated to indicate that Address

Correction Service is being proposed, via Domestic Mail Manual changes, to not

be mandatory if alternative addressing formats are used. Conforming changes

have been made to Address Correction Service section 1505.1.1.

 Pursuant to 39 C.F.R. § 3020.90, the Postal Service is submitting minor

corrections to Sections 1505.1.2, 1505.3.1, 1505.8.1, 1505.12.1, and 1505.16.1,

to ensure that the descriptions accurately represent the availability and

applicability of these ancillary services for First-Class Package Service

pieces. These minor corrections were inadvertently omitted from the list of

classification changes submitted with the First-Class Mail Parcels transfer

request that was approved in Order No. 4009. These corrections either provide - 34 -

consistency with the MCS language for First-Class Package Service, or indicate

that First-Class Package Service (rather than First-Class Mail Parcels) postage is

charged.

 The Promotions language has been updated to reflect the proposed Promotions

Calendar for 2019.

 A minor correction has been made to delete extraneous references to

Destination FSS rate categories that were eliminated in Docket No. R2017-1.

V. Other Issues

The Postal Service is filing seven public and one nonpublic library reference to

support this case. Brief descriptions of the library references are contained in the

accompanying notices filed with the Commission today.41 Each library reference

contains a preface that explains its contents in more detail.

Finally, the Postal Service notes that it has structured the timeline of this case not

only to meet applicable legal requirements and provide adequate notice to customers, but also to ensure that the Postal Service itself has enough time to implement the technical and systems changes needed to convert to new prices on January 27, 2019.

Therefore, as the Commission reviews this case, should it find cause to adjust the initial procedural schedule, the Postal Service requests that the Commission endeavor to conclude the docket by December 13, 2018, as a delay beyond this date would jeopardize implementation. To facilitate this, the Postal Service will strive to produce any additional information that the Commission requires in a timely manner.

41 See USPS Notice of Filing Public Library References (Oct. 10, 2018); USPS Notice of Filing USPS– LR–R2019–1/NP1 (Oct. 10, 2018).

ATTACHMENT A

CHANGES TO MAIL CLASSIFICATION SCHEDULE

(New text is underlined, and deleted text is struck through. “* * * * *” indicates material that has been omitted because it contains no changes. All prices are listed in price tables, whether or not they are changing)

First-Class Mail Single-Piece Letters/Postcards

ATTACHMENT A

PART A MARKET DOMINANT PRODUCTS

1100 First-Class Mail

* * * * *

1105 Single-Piece Letters/Postcards

* * * * *

1105.3 Price Categories

The following price categories are available for the product specified in this section:

• Machinable Stamped Letters – Bear a non-cancelled stamp, or postage validation imprint (PVI) indicia, or permit imprint Business Reply Mail

• Machinable Metered Letters – Bear postage affixed by meter, information-based indicia (IBI), permit imprint (except Business Reply Mail), or pre-cancelled stamp

• Nonmachinable Stamped Letters – Stamped letters that either have an aspect ratio that does not fall between 1 to 1.3 and 1 to 2.5 inclusive or do not meet other machinability requirements

• Nonmachinable Metered Letters – Metered letters that either have an aspect ratio that does not fall between 1 to 1.3 and 1 to 2.5 inclusive or do not meet other machinability requirements

• Qualified Business Reply Mail (QBRM) Letters

• Residual Machinable Letters

• Postcards

• Qualified Business Reply Mail (QBRM) Postcards

• Share Mail Letters and Postcards

* * * * *

Changes to Mail Classification Schedule Page 1 of 115

First-Class Mail Single-Piece Letters/Postcards

1105.5 Prices

Single-Piece Machinable Stamped Letters1, 2, 3

Maximum Machinable Weight Letters (ounces) ($) 1 0.55 2 0.70 3 0.85 3.5 1.00

Notes

1. The price for single-piece, one, two, or three ounce letters also applies to sales of Forever stamps and Forever Print-on-Demand indicia at the time of purchase, as specified by the Postal Service.

2. The price for a Forever additional ounce stamp is the difference between the 2-ounce price and the 1-ounce price.

3. A handling charge of $0.01 per piece applies to foreign-origin, inbound direct entry mail tendered by foreign postal operators, subject to the terms of an authorization arrangement.

Single-Piece Machinable Metered Letters

Maximum Machinable Weight Letters (ounces) ($) 1 0.50 2 0.65 3 0.80 3.5 0.95

Changes to Mail Classification Schedule Page 2 of 115

First-Class Mail Single-Piece Letters/Postcards

Single-Piece Nonmachinable Stamped Letters1

Maximum Nonmachinable Weight Letters (ounces) ($) 1 0.70 2 0.85 3 1.00 3.5 1.15

Notes

1. The prices for single-piece, first-ounce nonmachinable letters also applies to sales of Forever nonmachinable stamps and Forever Print-on-Demand indicia at the time of purchase.

Single-Piece Nonmachinable Metered Letters

Maximum Nonmachinable Weight Letters (ounces) ($) 1 0.65 2 0.80 3 0.95 3.5 1.10

Single-Piece QBRM Letters

Maximum QBRM Weight Letters (ounces) ($) 1 0.535 2 0.685

Changes to Mail Classification Schedule Page 3 of 115

First-Class Mail Single-Piece Letters/Postcards

Single-Piece Residual Machinable Letters

Maximum Residual Weight Machinable Letters (ounces) ($) 1 0.561 2 0.561 3 0.561 3.5 0.561

Notes

1. This price applies only to residual machinable letters derived from a mixed weight presort mailing, and only when the residual mailing reflects the weight levels included in the mixed weight presort mailing. In all other cases, single-piece machinable metered letter rates apply.

Single-Piece Postcards1, 2

Maximum Postcards Single-Piece Weight Double Card (ounces) ($) ($) not applicable 0.35 0.70

Notes

1. The price for single-piece postcards also applies to sales of stamped cards marked with Forever postage, at the time the stamped cards are purchased. The price also applies to Forever postcard stamps.

2. A handling charge of $0.01 per piece applies to foreign-origin, inbound direct entry mail tendered by foreign postal operators, subject to the terms of an authorization arrangement. Such inbound direct entry mail cannot include Single-Piece Double Cards.

Single-Piece QBRM Postcards

Maximum QBRM Weight Postcards (ounces) ($) not applicable 0.335

Changes to Mail Classification Schedule Page 4 of 115

First-Class Mail Single-Piece Letters/Postcards

Share Mail Letters and Postcards1, 2

Maximum Share Mail Letters Share Mail Weight ($) Postcards (ounces) ($) 1 0.59 0.44

Notes

1. To qualify for Share Mail, customers must meet and comply with all eligibility requirements of the program. Share Mail allows a qualifying customer to distribute pre-approved mailpieces that contain an Intelligent Mail barcode (IMb) and that can be mailed without prepayment of postage. Postage is collected when a pre-approved mailpiece is placed in the mailstream and scanned during processing.

2. Customers that are party to a current Alternate Postage Marketing Agreement (Marketing Agreement) as of December 31, 2016 may continue to distribute Alternate Postage mailpieces for the duration of that agreement, per its terms. For all Marketing Agreements, the term “prevailing Alternate Postage rate” shall be synonymous with the prevailing Share Mail rate most recently approved by the Postal Regulatory Commission.

Changes to Mail Classification Schedule Page 5 of 115

First-Class Mail Presorted Letters/Postcards

1110 Presorted Letters/Postcards

* * * * *

1110.4 Optional Features

The following additional postal services may be available in conjunction with the product specified in this section:

• Ancillary Services (1505) o Address Correction Service (1505.1) o Certified Mail (1505.5) o Certificate of Mailing (1505.6) o Collect on Delivery (1505.7) o Insurance (1505.9) o Return Receipt (1505.13) o Special Handling (1505.18)

• Competitive Ancillary Services (2645) o Package Intercept Service (2645.2)

• Full-service Intelligent Mail Option: Automation Letters and Automation Postcards Only

• Picture Permit Imprint Indicia

• Emerging and Advanced Technology Promotion (March 1, 20197 to August 31, 20197)

• Earned Value Reply Mail Promotion (AprilJanuary 1, 20197 to June 30, 20197)

• Personalized Color Transpromo Promotion (July 1, 20197 to December 31, 20197)

• Informed Delivery Promotion (September 1, 2019 to November 30, 2019)

Changes to Mail Classification Schedule Page 6 of 115

First-Class Mail Presorted Letters/Postcards

1110.5 Prices

Automation Letters

Maximum 5-Digit AADC Mixed Weight AADC (ounces) ($) ($) ($) 1 0.383 0.412 0.428 2 0.383 0.412 0.428 3 0.383 0.412 0.428 3.5 0.383 0.412 0.428

Nonautomation Presorted Machinable Letters

Maximum Presorted Weight (ounces) ($) 1 0.459 2 0.459 3 0.459 3.5 0.459

Nonmachinable Letters

Maximum Presorted Weight (ounces) ($) 1 0.609 2 0.609 3 0.609 3.5 0.609

Automation Postcards

Maximum 5-Digit AADC Mixed Weight AADC (ounces) ($) ($) ($) not applicable 0.257 0.268 0.274

Changes to Mail Classification Schedule Page 7 of 115

First-Class Mail Presorted Letters/Postcards

Nonautomation Presorted Machinable Postcards

Maximum Presorted Weight (ounces) ($) not applicable 0.280

Move Update Assessment Charge

Add $0.08 per assessed piece, for mailpieces that fail Move Update verification under the Address Quality Census Measurement and Assessment Process, with more than 0.5 percent for mailpieces submitted by a mailer in a calendar month having COA error, and which cannot demonstrate compliance with Move Update requirements.

Letter Round-Trip Mailer

a. Letter Round-Trip Mailer service allows a mailer to send a letter- shaped mailpiece to a subscriber at the applicable Presorted Letters/Postcards price and pay postage for the return of the contents of that mailpiece at the Single Piece Machinable Letters price.

b. A mailer may either prepay postage for the return mailpiece by using Permit Reply Mail or only pay for mailpieces actually returned by using Business Reply Mail.

c. Qualifying pieces must contain a standard 12 cm or smaller optical disc.

d. Qualifying pieces must weigh no more than one (1) ounce.

e. Returned pieces must be picked up by the mailer at designated Postal Service facilities.

f. Letter Round-Trip Mailers are not subject to prices for: (i) the Nonmachinable Letters price category of Presorted Letters/Postcards, or (ii) the Single-Piece Nonmachinable Letters price category of Single- Piece Letters/Postcards.

Full-service Intelligent Mail Option

Subtract $0.003 for each automation letter or automation postcard that complies with the requirements for the Full-service Intelligent Mail option.

Changes to Mail Classification Schedule Page 8 of 115

First-Class Mail Presorted Letters/Postcards

Picture Permit Imprint Indicia

Add $0.01 for each piece that includes Picture Permit Imprint Indicia

Emerging and Advanced Technology Promotion (March 1, 20197 to August 31, 20197)

Provide a two percent discount on the qualifying postage for First-Class Mail presort or automation letters, postcards, and flats, and USPS Marketing Mail letters and flats that are sent during the established program period, and which either include affixed or embedded technology that allows the recipient to engage in a technological experience, or were automatically generated by the recipient’s applicable online activities. To receive the discount, mailers must comply with the eligibility requirements of the program.

Earned Value Reply Mail Promotion (AprilJuly 1, 20197 to JuneDecember 301, 20197)

Provide a $0.035 per piece rebate on all Business Reply Mail, Courtesy Reply Mail, and Share Mail pieces if the volume of those pieces meets or exceeds 95 percent of the volume of the comparable volume count for the same period during 2018, for mailers that were registered for the 2017 Earned Value promotion. If the 2019 volumes meet or exceed the threshold established for 2018 volumes, mailers will be credited for all Business Reply Mail, Courtesy Reply Mail or Share Mail piece counted in 2019. The threshold for mailers who did not participate in the 2017 promotion is zero. Participants also mustthat meet program requirements and beare placed in the mailstream by the recipient and scanned during the program period. To receive the rebate, registered customers must have distributed a Business Reply Mail, Courtesy Reply Mail, or Share Mail card or envelope, and must comply with all other eligibility requirements of the program.

Personalized Color Transpromo Promotion (July 1, 20197 to December 31, 20197)

Provide a 2 percent discount on qualifying postage for First-Class Mail automation letters sent as part of a full-service IMb mailing during the established program period. All mailpieces must contain bills or statements with dynamic variable color (four-color-process) messaging. In addition, in mailpieces sent by a prior year’s participant the color messaging must be personalized to the recipient. The color messaging must be on the bill or statement and be for marketing or consumer information purposes. To receive the discount, mailers must comply with the eligibility requirements of the program.

Changes to Mail Classification Schedule Page 9 of 115

First-Class Mail Presorted Letters/Postcards

Informed Delivery Promotion (September 1, 2019 to November 30, 2019)

Provide a 2 percent discount off postage for mailings that incorporate Informed Delivery campaigns as a component of their mailings. To receive the discount, mailers must comply with the eligibility requirements of the program.

Changes to Mail Classification Schedule Page 10 of 115

First-Class Mail Flats

1115 Flats

* * * * *

1115.4 Optional Features

The following additional postal services may be available in conjunction with the product specified in this section:

• Ancillary Services (1505) o Address Correction Service (1505.1) o Business Reply Mail (1505.3) o Certified Mail (1505.5) o Certificate of Mailing (1505.6) o Collect on Delivery (1505.7) o Insurance (1505.9) o Registered Mail (1505.12) o Return Receipt (1505.13) o Special Handling (1505.18)

• Competitive Ancillary Services (2645) o Package Intercept Service (2645.2)

• Full-service Intelligent Mail option: Automation Flats Only

• Picture Permit Imprint Indicia

• Emerging and Advanced Technology Promotion (March 1, 20197 to August 31, 20197)

• Earned Value Reply Mail Promotion (January 1, 20197 to June 30, 20197)

• Informed Delivery Promotion (September 1, 2019 to November 30, 2019)

Changes to Mail Classification Schedule Page 11 of 115

First-Class Mail Flats

1115.5 Prices

Automation Flats

Maximum 5-Digit 3-Digit ADC Mixed Weight ADC (ounces) ($) ($) ($) ($) 1 0.486 0.605 0.644 0.727 2 0.636 0.755 0.794 0.877 3 0.786 0.905 0.944 1.027 4 0.936 1.055 1.094 1.177 5 1.086 1.205 1.244 1.327 6 1.236 1.355 1.394 1.477 7 1.386 1.505 1.544 1.627 8 1.536 1.655 1.694 1.777 9 1.686 1.805 1.844 1.927 10 1.836 1.955 1.994 2.077 11 1.986 2.105 2.144 2.227 12 2.136 2.255 2.294 2.377 13 2.286 2.405 2.444 2.527

Changes to Mail Classification Schedule Page 12 of 115

First-Class Mail Flats

Presorted Flats

Maximum Presorted Weight (ounces) ($) 1 0.799 2 0.949 3 1.099 4 1.249 5 1.399 6 1.549 7 1.699 8 1.849 9 1.999 10 2.149 11 2.299 12 2.449 13 2.599

Changes to Mail Classification Schedule Page 13 of 115

First-Class Mail Flats

Single-Piece Flats1

Maximum Single-Piece Weight (ounces) ($) 1 1.00 2 1.15 3 1.30 4 1.45 5 1.60 6 1.75 7 1.90 8 2.05 9 2.20 10 2.35 11 2.50 12 2.65 13 2.80

Notes

1. A handling charge of $0.01 per piece applies to foreign-origin, inbound direct entry mail tendered by foreign postal operators, subject to the terms of an authorization arrangement.

Changes to Mail Classification Schedule Page 14 of 115

First-Class Mail Flats

Keys and Identification Devices

Maximum Keys and Weight Identification Devices (ounces) ($) 1 3.60 2 3.60 3 3.60 4 3.60 5 3.78 6 3.96 7 4.14 8 4.32 9 4.50 10 4.68 11 4.86 12 5.04 13 5.22 1 (pound) Priority Mail Retail Zone 4 postage plus 0.83 2 (pounds) Priority Mail Retail Zone 4 postage plus 0.83

Changes to Mail Classification Schedule Page 15 of 115

First-Class Mail Flats

Move Update Assessment Charge

Add $0.08 per assessed piece, for mailpieces that fail Move Update verification under the Address Quality Census Measurement and Assessment Process, with more than 0.5 percent for mailpieces submitted by a mailer in a calendar month having COA errors, and which cannot demonstrate compliance with Move Update requirements.

Flat Round-Trip Mailer

a. Flat Round-Trip Mailer service allows a mailer to send a flat-shaped mailpiece to a subscriber at the applicable one (1) ounce Machinable Letter price and pay postage for the return of the contents of that mailpiece at the one (1) ounce Single-Piece Machinable Letter price.

b. A mailer may either prepay postage for the return mailpiece by using Permit Reply Mail or only pay for mailpieces actually returned by using Business Reply Mail.

c. Qualifying pieces must contain a standard 12 cm or smaller optical disc.

d. Pieces weighing no more than two (2) ounces qualify for the one (1) ounce price.

e. Returned pieces must be picked up by the mailer at designated Postal Service facilities.

f. Flat Round-Trip Mailers are not subject to prices for: (i) the Nonmachinable Letters price category of Presorted Letters/Postcards, or (ii) the Single-Piece Nonmachinable Letters price category of Single- Piece Letters/Postcards.

Full-service Intelligent Mail Option

Subtract $0.003 for each automation flat that complies with the requirements for the Full-service Intelligent Mail option.

Picture Permit Imprint Indicia

Add $0.01 for each piece that includes Picture Permit Imprint Indicia.

Changes to Mail Classification Schedule Page 16 of 115

First-Class Mail Flats

Emerging and Advanced Technology Promotion (March 1, 20197 to August 31, 20197)

Provide a two percent discount on the qualifying postage for First-Class Mail presort or automation letters, postcards, and flats, and USPS Marketing Mail letters and flats that are sent during the established program period, and which either include affixed or embedded technology that allows the recipient to engage in a technological experience, or were automatically generated by the recipient’s applicable online activities. To receive the discount, mailers must comply with the eligibility requirements of the program.

Earned Value Reply Mail Promotion (AprilJuly 1, 20197 to JuneDecember 301, 20197)

Provide a $0.035 per piece rebate on all Business Reply Mail, Courtesy Reply Mail, and Share Mail pieces if the volume of those pieces meets or exceeds 95 percent of the volume of the comparable volume count for the same period during 2018, for mailers that were registered for the 2017 Earned Value promotion. If the 2019 volumes meet or exceed the threshold established for 2018 volumes, mailers will be credited for all Business Reply Mail, Courtesy Reply Mail or Share Mail piece counted in 2019. The threshold for mailers who did not participate in the 2017 promotion is zero. Participants also mustthat meet program requirements and beare placed in the mailstream by the recipient and scanned during the program period. To receive the rebate, registered customers must have distributed a Business Reply Mail, Courtesy Reply Mail, or Share Mail card or envelope, and must comply with all other eligibility requirements of the program.

Informed Delivery Promotion (September 1, 2019 to November 30, 2019)

Provide a 2 percent discount off postage for mailings that incorporate Informed Delivery campaigns as a component of their mailings. To receive the discount, mailers must comply with the eligibility requirements of the program.

* * * * *

Changes to Mail Classification Schedule Page 17 of 115

First-Class Mail Outbound Single-Piece First-Class Mail International

1125 Outbound Single-Piece First-Class Mail International

* * * * *

1125.6 Prices

Machinable Letters1

Maximum Country Price Group Weight 1 2 3 4 5 6 7 8 9 (ounces) ($) ($) ($) ($) ($) ($) ($) ($) ($) 1 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 2 1.15 1.72 2.13 2.13 2.13 1.98 1.98 1.98 1.98 3 1.61 2.29 3.12 3.12 3.12 2.81 2.81 2.81 2.81 3.5 2.08 2.86 4.11 4.11 4.11 3.64 3.64 3.64 3.64

Notes

1. International Forever stamps are sold at the price of a single-piece First- Class Mail International first ounce machinable letter and have a postage value equivalent to the price of a single-piece First-Class Mail International first ounce machinable letter in effect at the time of use.

Nonmachinable Letters

Maximum Country Price Group Weight 1 2 3 4 5 6 7 8 9 (ounces) ($) ($) ($) ($) ($) ($) ($) ($) ($) 1 1.36 1.36 1.36 1.36 1.36 1.36 1.36 1.36 1.36 2 1.36 1.93 2.34 2.34 2.34 2.19 2.19 2.19 2.19 3 1.82 2.50 3.33 3.33 3.33 3.02 3.02 3.02 3.02 3.5 2.29 3.07 4.32 4.32 4.32 3.85 3.85 3.85 3.85

Postcards

Maximum Canada Mexico All Other Weight Countries

(ounces) ($) ($) ($) not applicable 1.15 1.15 1.15

Changes to Mail Classification Schedule Page 18 of 115

First-Class Mail Outbound Single-Piece First-Class Mail International

Large Envelopes (Flats)

Maximum Country Price Group Weight 1 2 3 4 5 6 7 8 9 (ounces) ($) ($) ($) ($) ($) ($) ($) ($) ($) 1 2.29 2.29 2.29 2.29 2.29 2.29 2.29 2.29 2.29 2 2.50 2.97 3.23 3.23 3.23 3.18 3.18 3.18 3.18 3 2.71 3.64 4.16 4.16 4.16 4.06 4.06 4.06 4.06 4 2.91 4.32 5.10 5.10 5.10 4.94 4.94 4.94 4.94 5 3.12 5.00 6.04 6.04 6.04 5.83 5.83 5.83 5.83 6 3.33 5.67 6.97 6.97 6.97 6.71 6.71 6.71 6.71 7 3.54 6.35 7.91 7.91 7.91 7.60 7.60 7.60 7.60 8 3.75 7.03 8.85 8.85 8.85 8.48 8.48 8.48 8.48 12 4.79 8.48 10.72 10.72 10.72 10.31 10.31 10.31 10.31 16 15.994 5.83 9.94 12.60 12.60 12.60 12.13 12.13 12.13 12.13 20 6.87 11.40 14.47 14.47 14.47 13.95 13.95 13.95 13.95 24 7.91 12.86 16.34 16.34 16.34 15.77 15.77 15.77 15.77 28 8.95 14.31 18.22 18.22 18.22 17.59 17.59 17.59 17.59 32 9.99 15.77 20.09 20.09 20.09 19.41 19.41 19.41 19.41 36 11.03 17.23 21.97 21.97 21.97 21.24 21.24 21.24 21.24 40 12.08 18.69 23.84 23.84 23.84 23.06 23.06 23.06 23.06 44 13.12 20.14 25.71 25.71 25.71 24.88 24.88 24.88 24.88 48 14.16 21.60 27.59 27.59 27.59 26.70 26.70 26.70 26.70 52 15.20 23.06 29.46 29.46 29.46 28.52 28.52 28.52 28.52 56 16.24 24.52 31.33 31.33 31.33 30.35 30.35 30.35 30.35 60 17.28 25.97 33.21 33.21 33.21 32.17 32.17 32.17 32.17 64 18.32 27.43 35.08 35.08 35.08 33.99 33.99 33.99 33.99

Fee for Return of Undeliverable as Addressed Outbound U.S. Origin Mail Posted through a Foreign Postal Administration or Operator

A fee is charged for the return of an undeliverable-as-addressed Outbound Single-Piece First-Class Mail International item bearing a U.S. return address which was originally posted to an international addressee through a foreign postal administration, consolidator, or operator. The fee for each returned item is equal to the First-Class Mail International postage which would have been charged if the item had been posted through the Postal Service as First-Class Mail International. The fee is charged to the return addressee. * * * * *

Changes to Mail Classification Schedule Page 19 of 115

USPS Marketing Mail (Commercial and Nonprofit) High Density and Saturation Letters

1200 USPS Marketing Mail (Commercial and Nonprofit)

* * * * *

1205 High Density and Saturation Letters

* * * * *

1205.5 Optional Features

The following additional postal services may be available in conjunction with the product specified in this section:

• Forwarding-and-Return Service

• Ancillary Services (1505) o Address Correction Service (1505.1) o Certificate of Mailing (1505.6)

• Full-service Intelligent Mail Option

• Picture Permit Imprint Indicia

• Emerging and Advanced Technology Promotion (March 1, 20197 to August 31, 20197)

• Earned Value Reply Mail Promotion (AprilJuly 1, 20197 to JuneDecember 301, 20197)

• Mobile Shopping Promotion (August 1, 20197 to December 31, 20197)

• Tactile, Sensory, and Interactive Mailpiece Engagement Promotion (February 1, 20197 to July 31, 20197)

• Direct Mail Starter Promotion (May 1, 2017 to July 31, 2017)

• Informed Delivery Promotion (September 1, 2019 to November 30, 2019)

Changes to Mail Classification Schedule Page 20 of 115

USPS Marketing Mail (Commercial and Nonprofit) High Density and Saturation Letters

1205.6 Prices

Saturation Letters (3.5 ounces or less)

Entry Point Commercial Nonprofit ($) ($) Origin 0.190 0.111 DNDC 0.170 0.091 DSCF 0.165 0.086

High Density Plus Letters (3.5 ounces or less)

Entry Point Commercial Nonprofit ($) ($) Origin 0.200 0.117 DNDC 0.180 0.097 DSCF 0.175 0.092

High Density Letters (3.5 ounces or less)

Entry Point Commercial Nonprofit ($) ($) Origin 0.209 0.124 DNDC 0.189 0.104 DSCF 0.184 0.099

Saturation, High Density Plus, and High Density Nonautomation Letters (4.0 ounces or less) Commercial

Entry Point Saturation High Density High ($) Plus Density ($) ($) None 0.224 0.232 0.250 DNDC 0.186 0.194 0.212 DSCF 0.179 0.187 0.205

Changes to Mail Classification Schedule Page 21 of 115

USPS Marketing Mail (Commercial and Nonprofit) High Density and Saturation Letters

Saturation, High Density Plus, and High Density Nonautomation Letters (4.0 ounces or less) Nonprofit

Entry Point Saturation High Density High ($) Plus Density ($) ($) None 0.136 0.144 0.166 DNDC 0.098 0.106 0.128 DSCF 0.091 0.099 0.121

Saturation, High Density Plus, and High Density Nonautomation Letters (more than 4.0 ounces) Commercial and Nonprofit

Saturation, High Density Plus, and High Density letter-shaped pieces that weigh more than 4.0 ounces must pay the piece and pound prices shown in the applicable Saturation, High Density Plus, and High Density Flats (Commercial and Nonprofit) price tables (1210.6). These pieces cannot be entered at a DDU and must be prepared as letters.

Move Update Noncompliance Charge

Add $0.07 per piece in a mailing that does not comply with the Move Update standards.

Move Update Assessment Charge

Add $0.08 per assessed piece, for mailpieces that fail Move Update verification under the Address Quality Census Measurement and Assessment Process, with more than 0.5 percent for mailpieces submitted by a mailer in a calendar month having COA errors, and which cannot demonstrate compliance with Move Update requirements.

Forwarding-and-Return Service

If Forwarding-and-Return Service is used in conjunction with electronic or automated Address Correction Service, forwarded letters pay $0.454 per piece and returned letters pay the applicable First-Class Mail price. All other letters requesting Forwarding-and-Return Service that are returned are charged the appropriate First-Class Mail price for the piece plus the price multiplied by a factor of 2.472.

Changes to Mail Classification Schedule Page 22 of 115

USPS Marketing Mail (Commercial and Nonprofit) High Density and Saturation Letters

Full-service Intelligent Mail Option

Subtract $0.0031 for each letter that complies with the requirements for the Full-service Intelligent Mail option.

Picture Permit Imprint Indicia

Add $0.021 for each piece that includes Picture Permit Imprint Indicia.

Emerging and Advanced Technology Promotion (March 1, 20197 to August 31, 20197)

Provide a two percent discount on the qualifying postage for First-Class Mail presort or automation letters, postcards, and flats, and USPS Marketing Mail letters and flats that are sent during the established program period, and which either include affixed or embedded technology that allows the recipient to engage in a technological experience, or were automatically generated by the recipient’s applicable online activities. To receive the discount, mailers must comply with the eligibility requirements of the program.

Earned Value Reply Mail Promotion (AprilJuly 1, 20197 to JuneDecember 301, 20197)

Provide a $0.035 per piece rebate on all Business Reply Mail, Courtesy Reply Mail, and Share Mail pieces if the volume of those pieces meets or exceeds 95 percent of the volume of the comparable volume count for the same period during 2018, for mailers that were registered for the 2017 Earned Value promotion. If the 2019 volumes meet or exceed the threshold established for 2018 volumes, mailers will be credited for all Business Reply Mail, Courtesy Reply Mail or Share Mail pieces counted in 2019. The threshold for mailers who did not participate in the 2017 promotion is zero. Participants also mustthat meet program requirements and beare placed in the mailstream by the recipient and scanned during the program period. To receive the rebate, registered customers must have distributed a Business Reply Mail, Courtesy Reply Mail, or Share Mail card or envelope, and must comply with all other eligibility requirements of the program.

Mobile Shopping Promotion (August 1, 20197 to December 31, 20197)

Provide a two percent discount on the qualifying postage for USPS Marketing Mail letters and flats which include, inside or on the mailpiece, a mobile barcode or other qualifying technology that facilitates a mobile optimized shopping experience. To receive the discount, the qualifying mail must be sent during the established program period by mailers that comply with the eligibility requirements of the program.

Changes to Mail Classification Schedule Page 23 of 115

USPS Marketing Mail (Commercial and Nonprofit) High Density and Saturation Letters

Tactile, Sensory, and Interactive Mailpiece Engagement Promotion (February 1, 20197 to July 31, 20197)

Provide a two percent discount on the qualifying postage for USPS Marketing Mail letters and flats that incorporate scent, sound, visual, textural, dimensional, or other qualifying enhancements. To receive the discount, the qualifying mail must be sent during the established program period by mailers that comply with the eligibility requirements of the program.

Direct Mail Starter Promotion (May 1, 2017 to July 31, 2017)

Provide a five percent discount on the qualifying postage for USPS Marketing Mail letters and flats that contain print-mobile or other qualifying technology that leads the recipient to a mobile optimized website. To receive the discount, the qualifying mail must be sent during the established program period by mailers that comply with the eligibility requirements of the program. No more than 10,000 mailpieces per mailer may qualify for the discount during the promotion period.

Informed Delivery Promotion (September 1, 2019 to November 30, 2019)

Provide a 2 percent discount off postage for mailings that incorporate Informed Delivery campaigns as a component of their mailings. To receive the discount, mailers must comply with the eligibility requirements of the program.

Changes to Mail Classification Schedule Page 24 of 115

USPS Marketing Mail (Commercial and Nonprofit) High Density and Saturation Flats/Parcels

1210 High Density and Saturation Flats/Parcels

* * * * *

1210.5 Optional Features

The following additional postal services may be available in conjunction with the product specified in this section:

• Detached Address Labels: – except for Simplified Address flats

• Forwarding-and-Return Service

• Ancillary Services (1505) o Address Correction Service (1505.1) o Certificate of Mailing (1505.6) o USPS Tracking: parcels only (1505.8) o Bulk Insurance: parcels only (1505.9)

• Full-service Intelligent Mail Option: High Density Flats Only

• Picture Permit Imprint Indicia: Flats Only

• Emerging and Advanced Technology Promotion (March 1, 20197 to August 31, 20197)

• Earned Value Reply Mail Promotion (AprilJuly 1, 20197 to JuneDecember 301, 20197)

• Mobile Shopping Promotion (August 1, 20197 to December 31, 20197)

• Tactile, Sensory, and Interactive Mailpiece Engagement Promotion (February 1, 20197 to July 31, 20197)

• Direct Mail Starter Promotion (May 1, 2017 to July 31, 2017)

• Informed Delivery Promotion (September 1, 2019 to November 30, 2019)

Changes to Mail Classification Schedule Page 25 of 115

USPS Marketing Mail (Commercial and Nonprofit) High Density and Saturation Flats/Parcels

1210.6 Prices

Saturation Flats (4.0 ounces or less)

Entry Point Commercial Nonprofit ($) ($) EDDM Other EDDM Other Origin 0.225 0.224 0.137 0.136 DNDC 0.187 0.186 0.099 0.098 DSCF 0.180 0.179 0.092 0.091 DDU 0.162 0.161 0.074 0.073

Saturation Flats (greater than 4.0 ounces)

Charges are computed by multiplying the number of pieces in the mailing by the applicable per-piece price, multiplying the number of pounds of the mailing by the applicable per-pound price, and adding both totals.

a. Per Piece

Commercial Nonprofit ($) ($) EDDM Other EDDM Other Per Piece 0.073 0.072 0.028 0.027

b. Per Pound

Entry Point Commercial Nonprofit ($) ($) EDDM Other EDDM Other Origin 0.609 0.609 0.436 0.436 DNDC 0.454 0.454 0.281 0.281 DSCF 0.426 0.426 0.253 0.253 DDU 0.357 0.357 0.184 0.184

Changes to Mail Classification Schedule Page 26 of 115

USPS Marketing Mail (Commercial and Nonprofit) High Density and Saturation Flats/Parcels

Saturation Parcels

a. Per Piece

Commercial Nonprofit Mailing Volume Small Large Small Large Tier ($) ($) ($) ($) 0-200,000 0.302 0.347 0.226 0.261 200,001 and above 0.290 0.336 0.218 0.253

b. Handling Fees for DNDC/DSCF Entry

Commercial Nonprofit ($) ($) Entry Point/ Pallet Pallet Presort DNDC – 3-Digit 52.847 42.277 DNDC – 5-Digit 85.927 68.742 DSCF – 5-Digit 40.259 32.322 Pallet Presort Carton/Sack Carton/Sack 3-Digit 7.196 5.864

High Density Plus Flats (4.0 ounces or less)

Entry Point Commercial Nonprofit ($) ($) Origin 0.232 0.144 DNDC 0.194 0.106 DSCF 0.187 0.099 DDU 0.169 0.081

Changes to Mail Classification Schedule Page 27 of 115

USPS Marketing Mail (Commercial and Nonprofit) High Density and Saturation Flats/Parcels

High Density Plus Flats (greater than 4.0 ounces)

Charges are computed by multiplying the number of pieces in the mailing by the applicable per-piece price, multiplying the number of pounds of the mailing by the applicable per-pound price, and adding both totals.

a. Per Piece

Commercial Nonprofit ($) ($) Per Piece 0.080 0.035

b. Per Pound

Entry Point Commercial Nonprofit ($) ($) Origin 0.609 0.436 DNDC 0.454 0.281 DSCF 0.426 0.253 DDU 0.357 0.184

High Density Flats (4.0 ounces or less)

Entry Point Commercial Nonprofit ($) ($) Origin 0.250 0.166 DNDC 0.212 0.128 DSCF/DFSS 0.205 0.121 DDU 0.187 0.103

High Density Flats (greater than 4.0 ounces)

Charges are computed by multiplying the number of pieces in the mailing by the applicable per-piece price, multiplying the number of pounds of the mailing by the applicable per-pound price, and adding both totals.

a. Per Piece

Commercial Nonprofit ($) ($) Per Piece 0.098 0.057

Changes to Mail Classification Schedule Page 28 of 115

USPS Marketing Mail (Commercial and Nonprofit) High Density and Saturation Flats/Parcels

b. Per Pound

Entry Point Commercial Nonprofit ($) ($) Origin 0.609 0.436 DNDC 0.454 0.281 DSCF 0.426 0.253 DDU 0.357 0.184

Move Update Noncompliance Charge

Add $0.07 per piece in a mailing that does not comply with the Move Update standards.

Move Update Assessment Charge

Add $0.08 per assessed piece, for mailpieces that fail Move Update verification under the Address Quality Census Measurement and Assessment Process, with more than 0.5 percent for mailpieces submitted by a mailer in a calendar month having COA errors, and which cannot demonstrate compliance with Move Update requirements.

Flat-shaped pieces including a Detached Address Label

Add $0.04036 for each piece addressed using a Detached Address Label with no advertising, and $0.04036 for each piece using a Detached Address Label containing advertising (Detached Marketing Label).

Forwarding-and-Return Service

If Forwarding Service is used in conjunction with electronic or automated Address Correction Service, forwarded flats pay $1.396 per piece and forwarded parcels pay $4.53 per piece and returned flats the applicable First-Class Mail price. All other pieces requesting Forwarding-and-Return Service that are returned are charged the appropriate First-Class Mail or First-Class Package Service price for the piece plus the price multiplied by a factor of 2.472.

Full-service Intelligent Mail Option

Subtract $0.0031 for each high density flat that complies with the requirements for the Full-service Intelligent Mail option.

Changes to Mail Classification Schedule Page 29 of 115

USPS Marketing Mail (Commercial and Nonprofit) High Density and Saturation Flats/Parcels

Picture Permit Imprint Indicia: Flats Only

Add $0.021 for each piece that includes Picture Permit Imprint Indicia.

Emerging and Advanced Technology Promotion (March 1, 20197 to August 31, 20197)

Provide a two percent discount on the qualifying postage for First-Class Mail presort or automation letters, postcards, and flats, and USPS Marketing Mail letters and flats that are sent during the established program period, and which either include affixed or embedded technology that allows the recipient to engage in a technological experience, or were automatically generated by the recipient’s applicable online activities. To receive the discount, mailers must comply with the eligibility requirements of the program.

Earned Value Reply Mail Promotion (AprilJuly 1, 20197 to JuneDecember 301, 20197)

Provide a $0.035 per piece rebate on all Business Reply Mail, Courtesy Reply Mail, and Share Mail pieces if the volume of those pieces meets or exceeds 95 percent of the volume of the comparable volume count for the same period during 2018, for mailers that were registered for the 2017 Earned Value promotion. If the 2019 volumes meet or exceed the threshold established for 2018 volumes, mailers will be credited for all Business Reply Mail, Courtesy Reply Mail or Share Mail pieces counted in 2019. The threshold for mailers who did not participate in the 2017 promotion is zero. Participants also mustthat meet program requirements and beare placed in the mailstream by the recipient and scanned during the program period. To receive the rebate, registered customers must have distributed a Business Reply Mail, Courtesy Reply Mail, or Share Mail card or envelope, and must comply with all other eligibility requirements of the program.

Mobile Shopping Promotion (August 1, 20197 to December 31, 20197)

Provide a two percent discount on the qualifying postage for USPS Marketing Mail letters and flats which include, inside or on the mailpiece, a mobile barcode or other qualifying technology that facilitates a mobile optimized shopping experience. To receive the discount, the qualifying mail must be sent during the established program period by mailers that comply with the eligibility requirements of the program.

Changes to Mail Classification Schedule Page 30 of 115

USPS Marketing Mail (Commercial and Nonprofit) High Density and Saturation Flats/Parcels

Tactile, Sensory, and Interactive Mailpiece Engagement Promotion (February 1, 20197 to July 31, 20197)

Provide a two percent discount on the qualifying postage for USPS Marketing Mail letters and flats that incorporate scent, sound, visual, textural, dimensional, or other qualifying enhancements. To receive the discount, the qualifying mail must be sent during the established program period by mailers that comply with the eligibility requirements of the program.

Direct Mail Starter Promotion (May 1, 2017 to July 31, 2017)

Provide a five percent discount on the qualifying postage for USPS Marketing Mail letters and flats that contain print-mobile or other qualifying technology that leads the recipient to a mobile optimized website. To receive the discount, the qualifying mail must be sent during the established program period by mailers that comply with the eligibility requirements of the program. No more than 10,000 mailpieces per mailer may qualify for the discount during the promotion period.

Informed Delivery Promotion (September 1, 2019 to November 30, 2019)

Provide a 2 percent discount off postage for mailings that incorporate Informed Delivery campaigns as a component of their mailings. To receive the discount, mailers must comply with the eligibility requirements of the program.

Changes to Mail Classification Schedule Page 31 of 115

USPS Marketing Mail (Commercial and Nonprofit) Carrier Route

1215 Carrier Route

* * * * *

1215.5 Optional Features

The following additional postal services may be available in conjunction with the product specified in this section:

• Forwarding-and-Return Services

• Ancillary Services (1505) o Address Correction Service (1505.1) o Certificate of Mailing (1505.6) o USPS Tracking: parcels only (1505.8) o Bulk Insurance: parcels only (1505.9)

• Full-service Intelligent Mail Option: Letters and Flats Only

• Picture Permit Imprint Indicia: Letters and Flats Only

• Emerging and Advanced Technology Promotion (March 1, 20197 to August 31, 20197)

• Earned Value Reply Mail Promotion (AprilJuly 1, 20197 to JuneDecember 301, 20197)

• Mobile Shopping Promotion (August 1, 20197 to December 31, 20197)

• Tactile, Sensory, and Interactive Mailpiece Engagement Promotion (February 1, 20197 to July 31, 20197)

• Direct Mail Starter Promotion (May 1, 2017 to July 31, 2017)

• Informed Delivery Promotion (September 1, 2019 to November 30, 2019)

1215.6 Prices

Carrier Route Letters (3.5 ounces or less)

Entry Point Commercial Nonprofit ($) ($) Origin 0.294 0.209 DNDC 0.269 0.184 DSCF 0.262 0.177

Changes to Mail Classification Schedule Page 32 of 115

USPS Marketing Mail (Commercial and Nonprofit) Carrier Route

Carrier Route Letters weighing greater than 3.5 ounces, but not more than 4.0 ounces

Carrier Route letter-shaped pieces that weigh more than 3.5 ounces, but not more than 4.0 ounces, must pay the prices shown in the “Carrier Route Flats (4.0 ounces or less)” price tables (1215.6). These pieces cannot be entered at a DDU and must be prepared as letters.

Carrier Route Letters weighing greater than 4.0 ounces

Carrier Route letter-shaped pieces that weigh more than 4.0 ounces must pay the per piece and per pound prices shown in the “Carrier Route Flats (greater than 4.0 ounces)” price tables (1215.6). These pieces cannot be entered at a DDU and must be prepared as letters.

Carrier Route Flats (4.0 ounces or less)

Entry Point Commercial Nonprofit ($) ($) 5-Digit 5-Digit Other Other Pallet Pallet Origin 0.279 0.300 0.195 0.216 DNDC 0.249 0.270 0.165 0.186 DSCF 0.241 0.262 0.157 0.178 DDU 0.232 0.253 0.148 0.169

Changes to Mail Classification Schedule Page 33 of 115

USPS Marketing Mail (Commercial and Nonprofit) Carrier Route

Carrier Route Flats (greater than 4.0 ounces)

Charges are computed by multiplying the number of pieces in the mailing by the applicable per-piece price, multiplying the number of pounds of the mailing by the applicable per-pound price, and adding both totals.

a. Per Piece

Commercial Nonprofit Entry Point ($) ($) 5-Digit 5-Digit Other Other Pallets Pallets Origin 0.104 0.125 0.062 0.083 DNDC 0.104 0.125 0.062 0.083 DSCF 0.104 0.125 0.062 0.083 DDU 0.104 0.125 0.062 0.083

b. Per Pound

Commercial Nonprofit Entry Point ($) ($) 5-Digit 5-Digit Other Other Pallets Pallets Origin 0.700 0.700 0.530 0.530 DNDC 0.580 0.580 0.410 0.410 DSCF 0.549 0.549 0.379 0.379 DDU 0.511 0.511 0.341 0.341

Carrier Route Parcels

a. Per Piece

Commercial Nonprofit Mailing Volume Small Large Small Large Tier ($) ($) ($) ($) 0-200,000 0.418 0.463 0.313 0.347 200,001 and above 0.405 0.451 0.305 0.339

Changes to Mail Classification Schedule Page 34 of 115

USPS Marketing Mail (Commercial and Nonprofit) Carrier Route

b. Handling Fees for DNDC/DSCF Entry

Commercial Nonprofit ($) ($) Entry Point/ Pallet Pallet Presort DNDC – 3-Digit 52.847 42.277 DNDC – 5-Digit 85.927 68.742 DSCF – 5-Digit 40.259 32.322 Pallet Presort Carton/Sack Carton/Sack 3-Digit 7.196 5.864

Move Update Noncompliance Charge

Add $0.07 per piece in a mailing that does not comply with the Move Update standards.

Move Update Assessment Charge

Add $0.08 per assessed piece, for mailpieces that fail Move update verification under the Address Quality Census Measurement and Assessment Process, with more than 0.5 percent for mailpieces submitted by a mailer in a calendar month having COA errors, and which cannot demonstrate compliance with Move Update requirements.

Forwarding-and-Return Service

If Forwarding Service is used in conjunction with electronic or automated Address Correction Service, forwarded letters pay $0.454 per piece, forwarded flats pay $1.396 per piece, and forwarded parcels pay $4.53 per piece and returned letters and flats pay the applicable First-Class Mail price. All other pieces requesting Forwarding-and-Return Service that are returned are charged the appropriate First-Class Mail or First-Class Package Service price for the piece plus the price multiplied by a factor of 2.472.

Full-service Intelligent Mail Option: Letter and Flats Only

Subtract $0.0031 for each carrier route letter or flat that complies with the requirements for the Full-service Intelligent Mail option.

Changes to Mail Classification Schedule Page 35 of 115

USPS Marketing Mail (Commercial and Nonprofit) Carrier Route

Picture Permit Imprint Indicia

Add $0.021 for each piece that includes Picture Permit Imprint Indicia.

Emerging and Advanced Technology Promotion (March 1, 20197 to August 31, 20197)

Provide a two percent discount on the qualifying postage for First-Class Mail presort or automation letters, postcards, and flats, and USPS Marketing Mail letters and flats that are sent during the established program period, and which either include affixed or embedded technology that allows the recipient to engage in a technological experience, or were automatically generated by the recipient’s applicable online activities. To receive the discount, mailers must comply with the eligibility requirements of the program.

Earned Value Reply Mail Promotion (AprilJuly 1, 20197 to JuneDecember 301, 20197)

Provide a $0.035 per piece rebate on all Business Reply Mail, Courtesy Reply Mail, and Share Mail pieces if the volume of those pieces meets or exceeds 95 percent of the volume of the comparable volume count for the same period during 2018, for mailers that were registered for the 2017 Earned Value promotion. If the 2019 volumes meet or exceed the threshold established for 2018 volumes, mailers will be credited for all Business Reply Mail, Courtesy Reply Mail or Share Mail pieces counted in 2019. The threshold for mailers who did not participate in the 2017 promotion is zero. Participants also mustthat meet program requirements and beare placed in the mailstream by the recipient and scanned during the program period. To receive the rebate, registered customers must have distributed a Business Reply Mail, Courtesy Reply Mail, or Share Mail card or envelope, and must comply with all other eligibility requirements of the program.

Mobile Shopping Promotion (August 1, 20197 to December 31, 20197)

Provide a two percent discount on the qualifying postage for USPS Marketing Mail letters and flats which include, inside or on the mailpiece, a mobile barcode or other qualifying technology that facilitates a mobile optimized shopping experience. To receive the discount, the qualifying mail must be sent during the established program period by mailers that comply with the eligibility requirements of the program.

Changes to Mail Classification Schedule Page 36 of 115

USPS Marketing Mail (Commercial and Nonprofit) Carrier Route

Tactile, Sensory, and Interactive Mailpiece Engagement Promotion (February 1, 20197 to July 31, 20197)

Provide a two percent discount on the qualifying postage for USPS Marketing Mail letters and flats that incorporate scent, sound, visual, textural, dimensional, or other qualifying enhancements. To receive the discount, the qualifying mail must be sent during the established program period by mailers that comply with the eligibility requirements of the program.

Direct Mail Starter Promotion (May 1, 2017 to July 31, 2017)

Provide a five percent discount on the qualifying postage for USPS Marketing Mail letters and flats that contain print-mobile or other qualifying technology that leads the recipient to a mobile optimized website. To receive the discount, the qualifying mail must be sent during the established program period by mailers that comply with the eligibility requirements of the program. No more than 10,000 mailpieces per mailer may qualify for the discount during the promotion period.

Informed Delivery Promotion (September 1, 2019 to November 30, 2019)

Provide a 2 percent discount off postage for mailings that incorporate Informed Delivery campaigns as a component of their mailings. To receive the discount, mailers must comply with the eligibility requirements of the program.

Changes to Mail Classification Schedule Page 37 of 115

USPS Marketing Mail (Commercial and Nonprofit) Letters

1220 Letters

* * * * *

1220.5 Optional Features

The following additional postal services may be available in conjunction with the product specified in this section:

• Forwarding-and-Return Services

• Ancillary Services (1505) o Address Correction Service (1505.1) o Certificate of Mailing (1505.6)

• Full-service Intelligent Mail Option: Automation Letters Only

• Picture Permit Imprint Indicia

• Emerging and Advanced Technology Promotion (March 1, 20197 to August 31, 20197)

• Earned Value Reply Mail Promotion (AprilJuly 1, 20197 to JuneDecember 301, 20197)

• Mobile Shopping Promotion (August 1, 20197 to December 31, 20197)

• Tactile, Sensory, and Interactive Mailpiece Engagement Promotion (February 1, 20197 to July 31, 20197)

• Direct Mail Starter Promotion (May 1, 2017 to July 31, 2017)

• Informed Delivery Promotion (September 1, 2019 to November 30, 2019)

Changes to Mail Classification Schedule Page 38 of 115

USPS Marketing Mail (Commercial and Nonprofit) Letters

1220.6 Prices

Automation Letters (3.5 ounces or less)

Commercial Nonprofit Entry 5-Digit AADC Mixed 5-Digit AADC Mixed Point AADC AADC ($) ($) ($) ($) ($) ($) Origin 0.256 0.281 0.291 0.138 0.163 0.173 DNDC 0.234 0.259 0.269 0.116 0.141 0.151 DSCF 0.228 0.253 n/a 0.110 0.135 n/a

Machinable Letters (3.5 ounces or less)

Commercial Nonprofit Entry AADC Mixed AADC AADC Mixed AADC Point ($) ($) ($) ($) Origin 0.292 0.302 0.174 0.184 DNDC 0.270 0.280 0.152 0.162 DSCF 0.264 n/a 0.146 n/a

Nonmachinable Letters (4.0 ounces or less)

Commercial Nonprofit Entry 5- 3- ADC Mixed 5- 3- ADC Mixed Point Digit Digit ADC Digit Digit ADC ($) ($) ($) ($) ($) ($) ($) ($) Origin 0.505 0.573 0.595 0.668 0.387 0.455 0.477 0.550 DNDC 0.483 0.551 0.573 0.646 0.365 0.433 0.455 0.528 DSCF 0.477 0.545 0.567 n/a 0.359 0.427 0.449 n/a

Changes to Mail Classification Schedule Page 39 of 115

USPS Marketing Mail (Commercial and Nonprofit) Letters

Pieces weighing greater than 4.0 ounces

Letters pieces that weigh more than 4.0 ounces must pay the prices shown in the “Nonautomation Flats (greater than 4.0 ounces)” price tables (1225.6). These pieces cannot be entered at a DDU and must be prepared as letters.

Move Update Noncompliance Charge

Add $0.07 per piece in a mailing that does not comply with the Move Update standards.

Move Update Assessment Charge

Add $0.08 per assessed piece, for mailpieces that fail Move Update verification under the Address Quality Census Measurement and Assessment Process, with more than 0.5 percent for mailpieces submitted by a mailer in a calendar month having COA errors, and which cannot demonstrate compliance with Move Update requirements.

Forwarding-and-Return Service

If Forwarding-and-Return Service is used in conjunction with electronic or automated Address Correction Service, forwarded letters pay $0.454 per piece and returned letters pay the applicable First-Class Mail price. All other letters requesting Forwarding-and-Return Service that are returned are charged the appropriate First-Class Mail price for the piece plus the price multiplied by a factor of 2.472.

Full-service Intelligent Mail Option: Automation Letters Only

Subtract $0.0031 for each automation letter that complies with the requirements for the Full-service Intelligent Mail option.

Picture Permit Imprint Indicia

Add $0.021 for each piece that includes Picture Permit Imprint Indicia.

Emerging and Advanced Technology Promotion (March 1, 20197 to August 31, 20197)

Provide a two percent discount on the qualifying postage for First-Class Mail presort or automation letters, postcards, and flats, and USPS Marketing Mail letters and flats that are sent during the established program period, and which either include affixed or embedded technology

Changes to Mail Classification Schedule Page 40 of 115

USPS Marketing Mail (Commercial and Nonprofit) Letters

that allows the recipient to engage in a technological experience, or were automatically generated by the recipient’s applicable online activities. To receive the discount, mailers must comply with the eligibility requirements of the program.

Earned Value Reply Mail Promotion (AprilJuly 1, 20197 to JuneDecember 301, 20197)

Provide a $0.035 per piece rebate on all Business Reply Mail, Courtesy Reply Mail, and Share Mail pieces if the volume of those pieces meets or exceeds 95 percent of the volume of the comparable volume count for the same period during 2018, for mailers that were registered for the 2017 Earned Value promotion. If the 2019 volumes meet or exceed the threshold established for 2018 volumes, mailers will be credited for all Business Reply Mail, Courtesy Reply Mail or Share Mail pieces counted in 2019. The threshold for mailers who did not participate in the 2017 promotion is zero. Participants also mustthat meet program requirements and beare placed in the mailstream by the recipient and scanned during the program period. To receive the rebate, registered customers must have distributed a Business Reply Mail, Courtesy Reply Mail, or Share Mail card or envelope, and must comply with all other eligibility requirements of the program.

Mobile Shopping Promotion (August 1, 20197 to December 31, 20197)

Provide a two percent discount on the qualifying postage for USPS Marketing Mail letters and flats which include, inside or on the mailpiece, a mobile barcode or other qualifying technology that facilitates a mobile optimized shopping experience. To receive the discount, the qualifying mail must be sent during the established program period by mailers that comply with the eligibility requirements of the program.

Tactile, Sensory, and Interactive Mailpiece Engagement Promotion (February 1, 20197 to July 31, 20197)

Provide a two percent discount on the qualifying postage for USPS Marketing Mail letters and flats that incorporate scent, sound, visual, textural, dimensional, or other qualifying enhancements. To receive the discount, the qualifying mail must be sent during the established program period by mailers that comply with the eligibility requirements of the program.

Changes to Mail Classification Schedule Page 41 of 115

USPS Marketing Mail (Commercial and Nonprofit) Letters

Direct Mail Starter Promotion (May 1, 2017 to July 31, 2017)

Provide a five percent discount on the qualifying postage for USPS Marketing Mail letters and flats that contain print-mobile or other qualifying technology that leads the recipient to a mobile optimized website. To receive the discount, the qualifying mail must be sent during the established program period by mailers that comply with the eligibility requirements of the program. No more than 10,000 mailpieces per mailer may qualify for the discount during the promotion period.

Informed Delivery Promotion (September 1, 2019 to November 30, 2019)

Provide a 2 percent discount off postage for mailings that incorporate Informed Delivery campaigns as a component of their mailings. To receive the discount, mailers must comply with the eligibility requirements of the program.

Changes to Mail Classification Schedule Page 42 of 115

USPS Marketing Mail (Commercial and Nonprofit) Flats

1225 Flats

* * * * *

1225.5 Optional Features

The following additional postal services may be available in conjunction with the product specified in this section:

• Forwarding-and-Return Services

• Ancillary Services (1505) o Address Correction Service (1505.1) o Certificate of Mailing (1505.6)

• Full-service Intelligent Mail Option: Automation Flats Only

• Picture Permit Imprint Indicia

• Emerging and Advanced Technology Promotion (March 1, 20197 to August 31, 20197)

• Earned Value Reply Mail Promotion (AprilJuly 1, 20197 to JuneDecember 301, 20197)

• Mobile Shopping Promotion (August 1, 20197 to December 31, 20197)

• Tactile, Sensory, and Interactive Mailpiece Engagement Promotion (February 1, 20197 to July 31, 20197)

• Direct Mail Starter Promotion (May 1, 2017 to July 31, 2017)

• Informed Delivery Promotion (September 1, 2019 to November 30, 2019)

Changes to Mail Classification Schedule Page 43 of 115

USPS Marketing Mail (Commercial and Nonprofit) Flats

1225.6 Prices

Automation Flats (4.0 ounces or less)

Commercial Entry Mixed 5-Digit 3-Digit ADC Point ADC ($) ($) ($) ($) Origin 0.405 0.523 0.597 0.632 DNDC 0.362 0.480 0.554 0.589 DSCF 0.352 0.470 0.544 n/a

Nonprofit Entry Mixed 5-Digit 3-Digit ADC Point ADC ($) ($) ($) ($) Origin 0.231 0.349 0.423 0.458 DNDC 0.188 0.306 0.380 0.415 DSCF 0.178 0.296 0.370 n/a

Changes to Mail Classification Schedule Page 44 of 115

USPS Marketing Mail (Commercial and Nonprofit) Flats

Automation Flats (greater than 4.0 ounces)

Charges are computed by multiplying the number of pieces in the mailing by the applicable per-piece price, multiplying the number of pounds of the mailing by the applicable per-pound price, and adding both totals.

a. Per Piece

Commercial Entry Mixed 5-Digit 3-Digit ADC Point ADC ($) ($) ($) ($) Origin 0.178 0.296 0.370 0.405 DNDC 0.178 0.296 0.370 0.405 DSCF 0.178 0.296 0.370 n/a

Nonprofit Entry Mixed 5-Digit 3-Digit ADC Point ADC ($) ($) ($) ($) Origin 0.037 0.155 0.229 0.264 DNDC 0.037 0.155 0.229 0.264 DSCF 0.037 0.155 0.229 n/a

b. Per Pound

Commercial Entry Mixed 5-Digit 3-Digit ADC Point ADC ($) ($) ($) ($) Origin 0.907 0.907 0.907 0.907 DNDC 0.736 0.736 0.736 0.736 DSCF 0.694 0.694 0.694 n/a

Changes to Mail Classification Schedule Page 45 of 115

USPS Marketing Mail (Commercial and Nonprofit) Flats

Nonprofit Entry Mixed 5-Digit 3-Digit ADC Point ADC ($) ($) ($) ($) Origin 0.775 0.775 0.775 0.775 DNDC 0.604 0.604 0.604 0.604 DSCF 0.562 0.562 0.562 n/a

Nonautomation Flats (4.0 ounces or less)

Commercial Entry Mixed 5-Digit 3-Digit ADC Point ADC ($) ($) ($) ($) Origin 0.469 0.561 0.617 0.652 DNDC 0.426 0.518 0.574 0.609 DSCF 0.416 0.508 0.564 n/a

Nonprofit Entry Mixed 5-Digit 3-Digit ADC Point ADC ($) ($) ($) ($) Origin 0.295 0.387 0.443 0.478 DNDC 0.252 0.344 0.400 0.435 DSCF 0.242 0.334 0.390 n/a

Changes to Mail Classification Schedule Page 46 of 115

USPS Marketing Mail (Commercial and Nonprofit) Flats

Nonautomation Flats (greater than 4.0 ounces)

Charges are computed by multiplying the number of pieces in the mailing by the applicable per-piece price, multiplying the number of pounds of the mailing by the applicable per-pound price, and adding both totals.

a. Per Piece

Commercial Entry Mixed 5-Digit 3-Digit ADC Point ADC ($) ($) ($) ($) Origin 0.242 0.334 0.390 0.425 DNDC 0.242 0.334 0.390 0.425 DSCF 0.242 0.334 0.390 n/a

Nonprofit Entry Mixed 5-Digit 3-Digit ADC Point ADC ($) ($) ($) ($) Origin 0.101 0.193 0.249 0.284 DNDC 0.101 0.193 0.249 0.284 DSCF 0.101 0.193 0.249 n/a

Changes to Mail Classification Schedule Page 47 of 115

USPS Marketing Mail (Commercial and Nonprofit) Flats

b. Per Pound

Commercial Entry Mixed 5-Digit 3-Digit ADC Point ADC ($) ($) ($) ($) Origin 0.907 0.907 0.907 0.907 DNDC 0.736 0.736 0.736 0.736 DSCF 0.694 0.694 0.694 n/a

Nonprofit Entry Mixed 5-Digit 3-Digit ADC Point ADC ($) ($) ($) ($) Origin 0.775 0.775 0.775 0.775 DNDC 0.604 0.604 0.604 0.604 DSCF 0.562 0.562 0.562 n/a

Customized MarketMail Prices

Commercial Nonprofit ($) ($) Per Piece 0.462 0.342

Move Update Noncompliance Charge

Add $0.07 per piece in a mailing that does not comply with the Move Update standards.

Move Update Assessment Charge

Add $0.08 per assessed piece, for mailpieces that fail Move Update verification under the Address Quality Census Measurement and Assessment Process, with more than 0.5 percent for mailpieces submitted by a mailer in a calendar month having COA errors, and which cannot demonstrate compliance with Move Update requirements.

Changes to Mail Classification Schedule Page 48 of 115

USPS Marketing Mail (Commercial and Nonprofit) Flats

Forwarding-and-Return Service

If Forwarding-and-Return Service is used in conjunction with electronic or automated Address Correction Service, forwarded flats pay $1.396 per piece and returned flats pay the applicable First-Class Mail price. All other flats requesting Forwarding-and-Return Service that are returned are charged the appropriate First-Class Mail price for the piece plus the price multiplied by a factor of 2.472.

Full-service Intelligent Mail Option: Automation Flats Only

Subtract $0.0031 for each automation flat that complies with the requirements for the Full-service Intelligent Mail option.

Picture Permit Imprint Indicia

Add $0.021 for each piece that includes Picture Permit Imprint Indicia.

Emerging and Advanced Technology Promotion (March 1, 20197 to August 31, 20197)

Provide a two percent discount on the qualifying postage for First-Class Mail presort or automation letters, postcards, and flats, and USPS Marketing Mail letters and flats that are sent during the established program period, and which either include affixed or embedded technology that allows the recipient to engage in a technological experience, or were automatically generated by the recipient’s applicable online activities. To receive the discount, mailers must comply with the eligibility requirements of the program.

Earned Value Reply Mail Promotion (AprilJuly 1, 20197 to JuneDecember 301, 20197)

Provide a $0.035 per piece rebate on all Business Reply Mail, Courtesy Reply Mail, and Share Mail pieces if the volume of those pieces meets or exceeds 95 percent of the volume of the comparable volume count for the same period during 2018, for mailers that were registered for the 2017 Earned Value promotion. If the 2019 volumes meet or exceed the threshold established for 2018 volumes, mailers will be credited for all Business Reply Mail, Courtesy Reply Mail or Share Mail pieces counted in 2019. The threshold for mailers who did not participate in the 2017 promotion is zero. Participants also mustthat meet program requirements and beare placed in the mailstream by the recipient and scanned during the program period. To receive the rebate, registered customers must have distributed a Business Reply Mail, Courtesy Reply Mail, or Share Mail card or envelope, and must comply with all other eligibility requirements of the program.

Changes to Mail Classification Schedule Page 49 of 115

USPS Marketing Mail (Commercial and Nonprofit) High Density and Saturation Letters

Mobile Shopping Promotion (August 1, 20197 to December 31, 20197)

Provide a two percent discount on the qualifying postage for USPS Marketing Mail letters and flats which include, inside or on the mailpiece, a mobile barcode or other qualifying technology that facilitates a mobile optimized shopping experience. To receive the discount, the qualifying mail must be sent during the established program period by mailers that comply with the eligibility requirements of the program.

Tactile, Sensory, and Interactive Mailpiece Engagement Promotion (February 1, 20197 to July 31, 20197)

Provide a two percent discount on the qualifying postage for USPS Marketing Mail letters and flats that incorporate scent, sound, visual, textural, dimensional, or other qualifying enhancements. To receive the discount, the qualifying mail must be sent during the established program period by mailers that comply with the eligibility requirements of the program.

Direct Mail Starter Promotion (May 1, 2017 to July 31, 2017)

Provide a five percent discount on the qualifying postage for USPS Marketing Mail letters and flats that contain print-mobile or other qualifying technology that leads the recipient to a mobile optimized website. To receive the discount, the qualifying mail must be sent during the established program period by mailers that comply with the eligibility requirements of the program. No more than 10,000 mailpieces per mailer may qualify for the discount during the promotion period.

Informed Delivery Promotion (September 1, 2019 to November 30, 2019)

Provide a 2 percent discount off postage for mailings that incorporate Informed Delivery campaigns as a component of their mailings. To receive the discount, mailers must comply with the eligibility requirements of the program.

Changes to Mail Classification Schedule Page 50 of 115

USPS Marketing Mail (Commercial and Nonprofit) Parcels

1230 Parcels

* * * * *

1230.6 Prices

Marketing Parcels (3.3 ounces or less)

Commercial Nonprofit Entry 5- SCF NDC Mixed 5- SCF NDC Mixed Point Digit NDC Digit NDC

($) ($) ($) ($) ($) ($) ($) ($) Origin n/a n/a 1.270 1.604 n/a n/a 1.113 1.467 DNDC 0.813 0.906 1.220 n/a 0.676 0.769 1.083 n/a DSCF 0.763 0.856 n/a n/a 0.626 0.719 n/a n/a DDU 0.718 n/a n/a n/a 0.581 n/a n/a n/a

Marketing Parcels (greater than 3.3 ounces)

Charges are computed by multiplying the number of pieces in the mailing by the applicable per-piece price, multiplying the number of pounds of the mailing by the applicable per-pound price, and adding both totals.

a. Per Piece

Commercial Nonprofit 5- SCF NDC Mixed 5- SCF NDC Mixed Digit NDC Digit NDC

($) ($) ($) ($) ($) ($) ($) ($) Per 0.626 0.719 1.033 1.367 0.532 0.625 0.939 1.273 Piece

Changes to Mail Classification Schedule Page 51 of 115

USPS Marketing Mail (Commercial and Nonprofit) Parcels

b. Per Pound

Commercial Nonprofit Entry 5- SCF NDC Mixed 5- SCF NDC Mixed Point Digit NDC Digit NDC

($) ($) ($) ($) ($) ($) ($) ($) Origin n/a n/a 1.150 1.150 n/a n/a 0.941 0.941 DNDC 0.905 0.905 0.905 n/a 0.696 0.696 0.696 n/a DSCF 0.663 0.663 n/a n/a 0.454 0.454 n/a n/a DDU 0.445 n/a n/a n/a 0.236 n/a n/a n/a

Nonprofit Machinable Parcels Prices (3.5 ounces or more)

Charges are computed by multiplying the number of pieces in the mailing by the applicable per-piece price, multiplying the number of pounds of the mailing by the applicable per-pound price, and adding both totals.

a. Per Piece

5-Digit NDC Mixed NDC ($) ($) ($) Per Piece 0.668 0.954 1.350

b. Per Pound

Entry 5-Digit NDC Mixed NDC Point ($) ($) ($) Origin n/a 1.060 1.060 DNDC 0.815 0.815 n/a DSCF 0.552 n/a n/a DDU 0.355 n/a n/a

Changes to Mail Classification Schedule Page 52 of 115

USPS Marketing Mail (Commercial and Nonprofit) Parcels

Nonprofit Irregular Parcels (3.3 ounces or less)

Entry 5-Digit SCF NDC Mixed NDC Point ($) ($) ($) ($) Origin n/a n/a 1.430 1.680 DNDC 0.836 0.998 1.379 n/a DSCF 0.782 0.994 n/a n/a DDU 0.741 n/a n/a n/a

Nonprofit Irregular Parcels (greater than 3.3 ounces)

Charges are computed by multiplying the number of pieces in the mailing by the applicable per piece price, multiplying the number of pounds of the mailing by the applicable per pound price, and adding both totals.

a. Per Piece

Entry 5-Digit SCF NDC Mixed NDC Point ($) ($) ($) ($) Per Piece 0.668 0.830 1.211 1.461

b. Per Pound

Entry 5-Digit SCF NDC Mixed NDC Point ($) ($) ($) ($) Origin n/a n/a 1.060 1.060 DNDC 0.815 0.815 0.815 n/a DSCF 0.552 0.552 n/a n/a DDU 0.355 n/a n/a n/a

Move Update Noncompliance Charge

Add $0.07 per piece in a mailing that does not comply with the Move Update standards.

Changes to Mail Classification Schedule Page 53 of 115

USPS Marketing Mail (Commercial and Nonprofit) Parcels

Forwarding-and-Return Service

If Forwarding Service is used in conjunction with electronic Address Correction Service, forwarded parcels pay $4.53 per piece. All other parcelsPieces requesting Forwarding-and-Return Service that are returned are charged the appropriate First-Class Package ServiceMail price or Priority Mail price for the piece plus the price multiplied by a factor of 2.472.

Non-barcoded Parcels Surcharge

For non-barcoded parcels, add $0.0548 per piece. The surcharge does not apply to pieces sorted to 5-Digit ZIP Codes.

Changes to Mail Classification Schedule Page 54 of 115

USPS Marketing Mail (Commercial and Nonprofit) Every Door Direct Mail—Retail

1235 Every Door Direct Mail—Retail

* * * * *

1235.6 Prices

Saturation Flats (3.3 ounces or less)

Entry Point ($) DDU 0.187

Changes to Mail Classification Schedule Page 55 of 115

Periodicals In-County Periodicals

1300 Periodicals

1300.1 Class Description

* * * * * c. Use of Address Correction Service is mandatory with Periodicals mail, except for pieces using an alternative addressing format.

* * * * *

1305.6 Prices

In-County Automation

Charges are computed by multiplying the number of pieces in the mailing by the applicable per-piece price, multiplying the number of pounds of the mailing by the applicable per-pound price, and adding both totals.

a. Pound Prices (per pound or fraction thereof)

Price Entry Point ($) DDU 0.156 Non-DDU 0.204

b. Piece Prices (per addressed piece)

Presort Letters Flats Level ($) ($) 5-Digit 0.056 0.117 3-Digit 0.063 0.135 Basic 0.069 0.151

In-County Nonautomation

Charges are computed by multiplying the number of pieces in the mailing by the applicable per-piece price, multiplying the number of pounds of the mailing by the applicable per-pound price, and adding both totals.

a. Pound Prices (per pound or fraction thereof)

Price Entry Point ($) DDU 0.156 Non-DDU 0.204

Changes to Mail Classification Schedule Page 56 of 115

Periodicals In-County Periodicals

b. Piece Prices (per addressed piece)

Letters, Flats, and Parcels Presort Level ($) Carrier Route 0.037 Saturation Carrier Route 0.050 High Density Carrier Route 0.067 Basic 5-Digit 0.136 3-Digit 0.165 Basic 0.188

Worksharing Discount for DDU

Each DDU entered piece receives a discount of $0.008.

In-County Periodicals including a Ride-Along piece

Add $0.1786 for a Ride-Along item enclosed with or attached to an In- County Periodical.

Full-service Intelligent Mail Option

Subtract $0.001 for each automation or Carrier Route letter or flat that complies with the requirements for the Full-service Intelligent Mail option.

Changes to Mail Classification Schedule Page 57 of 115

Periodicals Outside County Periodicals

1310 Outside County Periodicals

* * * * *

1310.6 Prices

Charges are computed by adding the appropriate per-piece charge, per- bundle charge, per-sack charge, and per-pallet charge to the sum of the editorial (nonadvertising) pound portion and the advertising pound portion, as applicable.

Pound Prices (per pound or fraction thereof)

Regular Science of Agriculture Entry Level or Advertising Editorial Advertising Editorial Zone ($) ($) ($) ($) DDU 0.120 0.088 0.090 0.088 DSCF 0.176 0.132 0.132 0.132 DADC 0.188 0.141 0.141 0.141 Zones 1 0.212 0.157 0.159 0.157 & 2 Zone 3 0.230 0.157 0.230 0.157 Zone 4 0.291 0.157 0.291 0.157 Zone 5 0.364 0.157 0.364 0.157 Zone 6 0.445 0.157 0.445 0.157 Zone 7 0.539 0.157 0.539 0.157 Zone 8 0.623 0.157 0.623 0.157 Zone 9 0.623 0.157 0.623 0.157

Piece Price (per addressed piece)

a. Carrier Route Letters, Flats, and Parcels

Letters, Flats, and Parcels Bundle Level ($) Saturation 0.159 High Density 0.172 Basic 0.205

Changes to Mail Classification Schedule Page 58 of 115

Periodicals Outside County Periodicals

b. Barcoded Letters

Barcoded Letters Bundle Level ($) 5-Digit 0.303 3-Digit/SCF 0.324 ADC 0.328 Mixed ADC 0.341

c. Machinable Flats and Nonbarcoded Letters

Barcoded Nonbarcoded Nonbarcoded Flats Flats Letters Bundle Level ($) ($) ($) 5-Digit 0.317 0.333 0.333 3-Digit/SCF 0.413 0.445 0.445 ADC 0.468 0.507 0.507 Mixed ADC 0.523 0.577 0.577

d. Nonmachinable Flats and Parcels

Barcoded Nonbarcoded Parcels Flats Flats Bundle Level ($) ($) ($) 5-Digit 0.443 0.445 0.445 3-Digit/SCF 0.539 0.540 0.540 ADC 0.585 0.590 0.590 Mixed ADC 0.702 0.702 0.702

e. Editorial Adjustment

A per-piece editorial adjustment is provided by subtracting $0.001110 for each 1 percent of editorial (nonadvertising) content from the applicable piece price.

Changes to Mail Classification Schedule Page 59 of 115

Periodicals Outside County Periodicals

f. Firm Bundle Piece Price

Firm bundles are charged a single-piece price of $0.21005.

Bundle Prices (per bundle)

Container Level Carrier Mixed 5-Digit 3-Digit/SCF ADC Route ADC Bundle ($) ($) ($) Level ($) ($) Firm 0.119 0.119 0.311 0.375 0.481 Carrier 0.175 0.175 0.599 0.832 1.065 Route 5-Digit 0.363 0.411 0.540 0.797 3-Digit/SFC 0.367 0.500 0.764 ADC 0.393 0.646 Mixed ADC 0.214

Container Prices (per pallet, tray, or sack)

a. Pallet Container

Carrier Entry Route 5-Digit 3-Digit/SCF ADC Mixed ADC Point ($) ($) ($) ($) ($) DDU 3.046 DSCF 27.220 44.296 27.250 DFSS DADC 46.944 63.943 46.900 27.950 DNDC 51.767 68.766 51.721 48.666 Origin 73.421 90.415 73.410 70.369 9.091

Changes to Mail Classification Schedule Page 60 of 115

Periodicals Outside County Periodicals

b. Tray or Sack Container

Carrier Route/ 3-Digit/SCF ADC Mixed Entry 5-Digit ADC Point ($) ($) ($) ($) DDU 1.149 DSCF 1.739 1.056 DADC 2.303 1.618 1.056 DNDC 2.741 1.966 1.811 Origin 3.691 2.803 2.657 0.692

Outside County Periodicals including a Ride-Along piece

Add $0.1786 for a Ride-Along item enclosed with or attached to an Outside County Periodical.

Full-service Intelligent Mail Option

Subtract $0.001 for each barcoded or Carrier Route letter or flat that complies with the requirements for the Full-service Intelligent Mail option.

Publications eligible for Nonprofit and Classroom price categories

Publications qualified as Nonprofit, Classroom, and Limited Circulation receive a 5 percent discount on all components of postage except advertising pounds.

The 5 percent discount does not apply to commingled nonsubscriber, nonrequestor, complimentary, and sample copies in excess of the 10 percent allowance, or to Science of Agriculture mail.

The advertising pound price is not applicable to qualifying Nonprofit and Classroom publications containing 10 percent or less advertising content.

Changes to Mail Classification Schedule Page 61 of 115

Package Services Alaska Bypass

1400 Package Services

* * * * *

1405 Alaska Bypass Service

* * * * *

1405.6 Prices

Alaska Bypass

Prices are calculated by dividing the total weight of the shipment by 70 (subject to the maximum weight restriction) and multiplying the result (rounded to the nearest one-hundredth) by the appropriate Alaska Bypass price for the zone to which the parcel is addressed.

Maximum Zones 1 & 2 Zone 3 Weight (pounds) ($) ($) 70 26.09 31.89

Changes to Mail Classification Schedule Page 62 of 115

Package Services Bound Printed Matter Flats

1415 Bound Printed Matter Flats

* * * * *

1415.6 Prices

Carrier Route

Charges are computed by multiplying the number of pieces in the mailing by the applicable per-piece price, multiplying the number of pounds of the mailing by the applicable per-pound price, and adding both totals.

1. Destination Entry

DDU DSCF DNDC DNDC DNDC DNDC Zones Zone 3 Zone 4 Zone 5 1 & 2 ($) ($) ($) ($) ($) ($) Per Piece 0.388 0.561 1.015 1.015 1.015 1.015 Per Pound 0.021 0.036 0.063 0.097 0.124 0.222

2. Other Than Destination Entry

Zones Zone 3 Zone 4 Zone 5 Zone 6 Zone Zones Local 7 8 & 9 1 & 2 ($) ($) ($) ($) ($) ($) ($) Per Piece 1.100 1.100 1.100 1.100 1.100 1.100 1.100 Per Pound 0.138 0.149 0.202 0.257 0.329 0.372 0.500

Changes to Mail Classification Schedule Page 63 of 115

Package Services Bound Printed Matter Flats

Presorted

Charges are computed by multiplying the number of pieces in the mailing by the applicable per-piece price, multiplying the number of pounds of the mailing by the applicable per-pound price, and adding both totals.

1. Destination Entry1

DDU DSCF DNDC DNDC DNDC DNDC Zones Zone 3 Zone 4 Zone 5 1 & 2 ($) ($) ($) ($) ($) ($) Per Piece 0.533 0.706 1.160 1.160 1.160 1.160 Per Pound 0.021 0.036 0.063 0.097 0.124 0.222

2. Other Than Destination Entry

Zones Zone 3 Zone 4 Zone 5 Zone 6 Zone Zones Local 7 8 & 9 1 & 2 ($) ($) ($) ($) ($) ($) ($) Per Piece 1.245 1.245 1.245 1.245 1.245 1.245 1.245 Per Pound 0.138 0.149 0.202 0.257 0.329 0.372 0.500

Notes

1. DDU price is not available for presorted flats that weigh 1 pound or less.

Changes to Mail Classification Schedule Page 64 of 115

Package Services Bound Printed Matter Flats

Nonpresorted

Maximum Zones Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zones Weight 1 & 2 8 & 9 (pounds) ($) ($) ($) ($) ($) ($) ($) 1.0 1.95 2.00 2.06 2.15 2.25 2.31 2.51 1.5 1.96 2.01 2.07 2.16 2.26 2.32 2.52 2.0 2.04 2.10 2.18 2.30 2.44 2.52 2.79 2.5 2.13 2.21 2.31 2.46 2.63 2.73 3.07 3.0 2.23 2.32 2.44 2.62 2.83 2.95 3.35 3.5 2.33 2.44 2.58 2.80 3.05 3.19 3.67 4.0 2.42 2.54 2.70 2.95 3.24 3.40 3.94 4.5 2.52 2.66 2.84 3.12 3.44 3.62 4.24 5.0 2.62 2.77 2.98 3.29 3.65 3.86 4.55 6.0 2.80 2.98 3.23 3.60 4.03 4.28 5.10 7.0 3.00 3.22 3.51 3.95 4.46 4.75 5.71 8.0 3.18 3.43 3.76 4.26 4.85 5.18 6.27 9.0 3.37 3.65 4.03 4.60 5.26 5.64 6.88 10.0 3.56 3.87 4.29 4.93 5.67 6.09 7.46 11.0 3.76 4.11 4.57 5.27 6.08 6.54 8.05 12.0 3.94 4.32 4.82 5.58 6.46 6.96 8.60 13.0 4.13 4.54 5.08 5.90 6.85 7.39 9.16 14.0 4.32 4.76 5.34 6.22 7.25 7.83 9.73 15.0 4.52 5.00 5.64 6.60 7.71 8.35 10.41

Full-service Intelligent Mail Option

Subtract $0.001 for each presorted or Carrier Route barcoded flat that complies with the requirements for the Full-service Intelligent Mail option.

Forwarding-and-Return Service

If used in conjunction with electronic or automated Address Correction Service, forwarded flats pay $3.2115 per piece and returned flats the applicable First-Class Mail price. All other pieces requesting Forwarding- and-Return Service that are returned are charged the appropriate First- Class Mail price for the piece plus the price multiplied by a factor of 2.472.

Changes to Mail Classification Schedule Page 65 of 115

Package Services Bound Printed Matter Parcels

1420 Bound Printed Matter Parcels

* * * * *

1420.6 Prices

Carrier Route

Charges are computed by multiplying the number of pieces in the mailing by the applicable per-piece price, multiplying the number of pounds of the mailing by the applicable per-pound price, and adding both totals.

a. Destination Entry

DDU DSCF DNDC DNDC DNDC DNDC Zones Zone 3 Zone 4 Zone 5 1 & 2 ($) ($) ($) ($) ($) ($) Per 0.635 0.808 1.262 1.262 1.262 1.262 Piece Per 0.040 0.073 0.101 0.132 0.179 0.249 Pound

b. Other Than Destination Entry

Zones Zone 3 Zone 4 Zone 5 Zone 6 Zone Zones Local 7 8 & 9 1 & 2 ($) ($) ($) ($) ($) ($) ($) Per Piece 1.347 1.347 1.347 1.347 1.347 1.347 1.347 Per Pound 0.189 0.225 0.274 0.338 0.413 0.476 0.623

Changes to Mail Classification Schedule Page 66 of 115

Package Services Bound Printed Matter Parcels

Presorted

Charges are computed by multiplying the number of pieces in the mailing by the applicable per-piece price, multiplying the number of pounds of the mailing by the applicable per-pound price, and adding both totals.

a. Destination Entry

DDU DSCF DNDC DNDC DNDC DNDC Zones Zone 3 Zone 4 Zone 5 1 & 2 ($) ($) ($) ($) ($) ($) Per Piece 0.780 0.953 1.407 1.407 1.407 1.407 Per Pound 0.040 0.073 0.101 0.132 0.179 0.249

b. Other Than Destination Entry

Zones Zone 3 Zone 4 Zone 5 Zone 6 Zone Zones Local 7 8 & 9 1 & 2 ($) ($) ($) ($) ($) ($) ($) Per Piece 1.492 1.492 1.492 1.492 1.492 1.492 1.492 Per Pound 0.189 0.225 0.274 0.338 0.413 0.476 0.623

Changes to Mail Classification Schedule Page 67 of 115

Package Services Bound Printed Matter Parcels

Nonpresorted

Maximum Zones Weight Zones Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 8&9 (Pounds) 1&2 ($) ($) ($) ($) ($) ($) ($) 1.0 2.65 2.71 2.77 2.86 2.98 3.04 3.25 1.5 2.73 2.79 2.85 2.94 3.06 3.13 3.34 2.0 2.78 2.86 2.94 3.06 3.22 3.30 3.59 2.5 2.90 3.00 3.10 3.25 3.46 3.56 3.92 3.0 3.03 3.15 3.27 3.45 3.70 3.82 4.26 3.5 3.17 3.31 3.45 3.67 3.96 4.10 4.62 4.0 3.29 3.45 3.61 3.86 4.19 4.35 4.95 4.5 3.41 3.59 3.77 4.05 4.42 4.60 5.27 5.0 3.54 3.75 3.96 4.27 4.68 4.89 5.63 6.0 3.79 4.04 4.29 4.67 5.17 5.42 6.30 7.0 4.05 4.34 4.63 5.07 5.67 5.96 6.99 8.0 4.30 4.63 4.96 5.47 6.15 6.48 7.65 9.0 4.55 4.93 5.31 5.89 6.65 7.03 8.36 10.0 4.80 5.22 5.64 6.28 7.12 7.54 9.01 11.0 5.07 5.54 6.01 6.71 7.65 8.12 9.75 12.0 5.31 5.82 6.33 7.09 8.11 8.62 10.40 13.0 5.56 6.11 6.66 7.48 8.58 9.13 11.05 14.0 5.83 6.43 7.03 7.92 9.10 9.70 11.78 15.0 6.08 6.72 7.36 8.31 9.59 10.23 12.46

Pickup On Demand Service

Add $232.00 for each Pickup On Demand stop.

Changes to Mail Classification Schedule Page 68 of 115

Package Services Media Mail/Library Mail

1425 Media Mail/Library Mail

* * * * *

1425.2 Size and Weight Limitations

Length Height Thickness Weight Minimum large enough to accommodate postage, None address, and other required elements on the address side Maximum 108 inches in combined length and girth 70 pounds1

Notes

1. An overweight item charge, as described in the Domestic Mail Manual, applies to pieces found in the postal network that exceed the 70-pound maximum weight limitation. Such items are nonmailable and will not be delivered.

* * * * *

Changes to Mail Classification Schedule Page 69 of 115

Package Services Media Mail/Library Mail

1425.6 Prices

Media Mail

Maximum 5-Digit Basic Single-Piece Weight (pounds) ($) ($) ($) 1 1.97 2.60 2.75 2 2.49 3.12 3.27 3 3.01 3.64 3.79 4 3.53 4.16 4.31 5 4.05 4.68 4.83 6 4.57 5.20 5.35 7 5.09 5.72 5.87 8 5.61 6.24 6.39 9 6.13 6.76 6.91 10 6.65 7.28 7.43 11 7.17 7.80 7.95 12 7.69 8.32 8.47 13 8.21 8.84 8.99 14 8.73 9.36 9.51 15 9.25 9.88 10.03 16 9.77 10.40 10.55 17 10.29 10.92 11.07 18 10.81 11.44 11.59 19 11.33 11.96 12.11 20 11.85 12.48 12.63 21 12.37 13.00 13.15 22 12.89 13.52 13.67 23 13.41 14.04 14.19 24 13.93 14.56 14.71 25 14.45 15.08 15.23

Changes to Mail Classification Schedule Page 70 of 115

Package Services Media Mail/Library Mail

Media Mail (Continued)

Maximum 5-Digit Basic Single-Piece Weight (pounds) ($) ($) ($) 26 14.97 15.60 15.75 27 15.49 16.12 16.27 28 16.01 16.64 16.79 29 16.53 17.16 17.31 30 17.05 17.68 17.83 31 17.57 18.20 18.35 32 18.09 18.72 18.87 33 18.61 19.24 19.39 34 19.13 19.76 19.91 35 19.65 20.28 20.43 36 20.17 20.80 20.95 37 20.69 21.32 21.47 38 21.21 21.84 21.99 39 21.73 22.36 22.51 40 22.25 22.88 23.03 41 22.77 23.40 23.55 42 23.29 23.92 24.07 43 23.81 24.44 24.59 44 24.33 24.96 25.11 45 24.85 25.48 25.63 46 25.37 26.00 26.15 47 25.89 26.52 26.67 48 26.41 27.04 27.19 49 26.93 27.56 27.71 50 27.45 28.08 28.23

Changes to Mail Classification Schedule Page 71 of 115

Package Services Media Mail/Library Mail

Media Mail (Continued)

Maximum 5-Digit Basic Single-Piece Weight (pounds) ($) ($) ($) 51 27.97 28.60 28.75 52 28.49 29.12 29.27 53 29.01 29.64 29.79 54 29.53 30.16 30.31 55 30.05 30.68 30.83 56 30.57 31.20 31.35 57 31.09 31.72 31.87 58 31.61 32.24 32.39 59 32.13 32.76 32.91 60 32.65 33.28 33.43 61 33.17 33.80 33.95 62 33.69 34.32 34.47 63 34.21 34.84 34.99 64 34.73 35.36 35.51 65 35.25 35.88 36.03 66 35.77 36.40 36.55 67 36.29 36.92 37.07 68 36.81 37.44 37.59 69 37.33 37.96 38.11 70 37.85 38.48 38.63

Changes to Mail Classification Schedule Page 72 of 115

Package Services Media Mail/Library Mail

Library Mail

Maximum 5-Digit Basic Single-Piece Weight (pounds) ($) ($) ($) 1 1.87 2.47 2.61 2 2.36 2.96 3.10 3 2.85 3.45 3.59 4 3.34 3.94 4.08 5 3.83 4.43 4.57 6 4.32 4.92 5.06 7 4.81 5.41 5.55 8 5.30 5.90 6.04 9 5.79 6.39 6.53 10 6.28 6.88 7.02 11 6.77 7.37 7.51 12 7.26 7.86 8.00 13 7.75 8.35 8.49 14 8.24 8.84 8.98 15 8.73 9.33 9.47 16 9.22 9.82 9.96 17 9.71 10.31 10.45 18 10.20 10.80 10.94 19 10.69 11.29 11.43 20 11.18 11.78 11.92 21 11.67 12.27 12.41 22 12.16 12.76 12.90 23 12.65 13.25 13.39 24 13.14 13.74 13.88 25 13.63 14.23 14.37

Changes to Mail Classification Schedule Page 73 of 115

Package Services Media Mail/Library Mail

Library Mail (Continued)

Maximum 5-Digit Basic Single-Piece Weight (pounds) ($) ($) ($) 26 14.12 14.72 14.86 27 14.61 15.21 15.35 28 15.10 15.70 15.84 29 15.59 16.19 16.33 30 16.08 16.68 16.82 31 16.57 17.17 17.31 32 17.06 17.66 17.80 33 17.55 18.15 18.29 34 18.04 18.64 18.78 35 18.53 19.13 19.27 36 19.02 19.62 19.76 37 19.51 20.11 20.25 38 20.00 20.60 20.74 39 20.49 21.09 21.23 40 20.98 21.58 21.72 41 21.47 22.07 22.21 42 21.96 22.56 22.70 43 22.45 23.05 23.19 44 22.94 23.54 23.68 45 23.43 24.03 24.17 46 23.92 24.52 24.66 47 24.41 25.01 25.15 48 24.90 25.50 25.64 49 25.39 25.99 26.13 50 25.88 26.48 26.62

Changes to Mail Classification Schedule Page 74 of 115

Package Services Media Mail/Library Mail

Library Mail (Continued)

Maximum 5-Digit Basic Single-Piece Weight (pounds) ($) ($) ($) 51 26.37 26.97 27.11 52 26.86 27.46 27.60 53 27.35 27.95 28.09 54 27.84 28.44 28.58 55 28.33 28.93 29.07 56 28.82 29.42 29.56 57 29.31 29.91 30.05 58 29.80 30.40 30.54 59 30.29 30.89 31.03 60 30.78 31.38 31.52 61 31.27 31.87 32.01 62 31.76 32.36 32.50 63 32.25 32.85 32.99 64 32.74 33.34 33.48 65 33.23 33.83 33.97 66 33.72 34.32 34.46 67 34.21 34.81 34.95 68 34.70 35.30 35.44 69 35.19 35.79 35.93 70 35.68 36.28 36.42

Pickup On Demand Service

Add $232.00 for each Pickup On Demand stop.

Changes to Mail Classification Schedule Page 75 of 115

Special Services Ancillary Services

1500 Special Services

* * * * *

1505 Ancillary Services

1505.1 Address Correction Service

1505.1.1 Description

a. Address Correction Service provides a mailer, upon request, both an addressee’s former and current addresses, if the correct address is known to the Postal Service or, if not known, the reason for non- delivery.

b. Address Correction Service is available for postage-prepaid mail of all classes, except for mail addressed for delivery at any military installation and for Customized MarketMail pieces.

c. Address Correction Service is mandatory for Periodicals mail, except for pieces using an alternative addressing format..

d. Full-service, Automated and Electronic Address Correction Service is available to mailers who can receive computerized address corrections and meet barcoding, address hygiene, and other mail preparation requirements.

e. Full-service Address Correction Service is only available for mailings of First-Class Mail automated letters, cards, and flats, USPS Marketing Mail automation letters and flats; USPS Marketing Mail Carrier Route, High Density, and Saturation letters; Periodicals Outside County barcoded or Carrier Route letters and flats; Periodicals In-County automation or Carrier Route letters and flats; and Bound Printed Matter barcoded Presort non-DDU flats. The mailings must comply with the requirements for the Full-service Intelligent Mail option.

Changes to Mail Classification Schedule Page 76 of 115

Special Services Ancillary Services

1505.1.2 Prices

($) Manual correction, each First-Class Mail or First-Class Package Service piece, 0.00 on-piece correction only Other 0.61 Electronic correction, each First-Class Mail or First-Class Package Service piece 0.13 Other 0.31 Automated correction (Letters Only) First-Class Mail piece First two notices, for a given address change, each 0.07 Additional notices, for a given address change, each 0.14 USPS Marketing Mail piece First two notices, for a given address change, each 0.10 Additional notices, for a given address change, each 0.27 Full-service correction, each 0.00

Changes to Mail Classification Schedule Page 77 of 115

Special Services Ancillary Services

1505.2 Applications and Mailing Permits

* * * * *

1505.2.2 Prices

($) First-Class Mail Presort Mailing Fee (per year) 235.00 USPS Marketing Mail Mailing Fee (per year) 235.00 Periodicals Application Fees (one-time only for each) A. Original Entry 725.00 B. Re-entry 85.00 C. Registration for News Agents 85.00 Bound Printed Matter: Destination Entry Mailing Fee (per 235.00 year)1 Application to Use Permit Imprint (one-time only) 235.00

Notes

1. Fee does not apply in circumstances described in 1505.2.1.

Changes to Mail Classification Schedule Page 78 of 115

Special Services Ancillary Services

1505.3 Business Reply Mail

1505.3.1 Description

a. Business Reply Mail service allows a permit holder or its representative to distribute postcards, envelopes, cartons and labels that can be used to send First-Class Mail, First-Class Package Service, or Priority Mail pieces to an address chosen by the distributor without prepayment of postage.

b. A permit to distribute Business Reply Mail must be obtained from each office to which mail is addressed for delivery, except that only one permit is required for Business Reply Mail to be returned to the permit holder’s branches or agents in other cities.

c. The permit holder guarantees payment on delivery of postage and fees for the Business Reply Mail pieces including any pieces that the addressee refuses.

d. The permit holder must pay an annual account maintenance fee when an advance deposit account is used to pay the postage and fees.

Changes to Mail Classification Schedule Page 79 of 115

Special Services Ancillary Services

1505.3.2 Prices

($) Permit (All categories) 235.001 Regular (no account maintenance fee) Per-piece charge 0.830 Regular (with account maintenance fee) Account maintenance (per year) 710.00 Per-piece charge 0.091 Qualified Business Reply Mail, low-volume Account maintenance (per year) 710.00 Per-piece charge 0.070 Qualified Business Reply Mail, high-volume Account maintenance (per year) 710.00 Quarterly 2405.00 Per-piece charge 0.014 Bulk Weight Averaged (Non-letters only) Account maintenance (per year) 710.00 Per-piece charge 0.019 Monthly maintenance 1175.00

Notes

1. Fee does not apply to permit holder who receives (1) only Qualified Business Reply Mail, or (2) only parcel-shaped Business Reply Mail.

Changes to Mail Classification Schedule Page 80 of 115

Special Services Ancillary Services

1505.4 Bulk Parcel Return Service

1505.4.1 Description

a. Bulk Parcel Return Service provides a method whereby high-volume parcel mailers may have machinable parcels, initially mailed as USPS Marketing Mail (Commercial and Nonprofit) or Parcel Select Lightweight parcels, returned to designated postal facilities for pickup by the mailer at a predetermined frequency, or delivered in bulk by the Postal Service in a specified manner and frequency. Such parcels may be returned because they are: undeliverable-as-addressed; have been opened, resealed, and redeposited into the mail for return to the mailer using a mailer provided return label; or are found in the mailstream, having been opened, resealed, and redeposited by the recipient for return to the mailer.

b. To claim eligibility for Bulk Parcel Return Service at each facility through which the mailer requests Bulk Parcel Return Service, the mailer must demonstrate receipt of 10,000 returned machinable parcels at a given delivery point in the previous 12-month period or must demonstrate a high likelihood of receiving 10,000 returned parcels in the postal fiscal year for which the service is requested.

c. Mailers must receive authorization from the Postal Service to use Bulk Parcel Return Service.

1505.4.2 Prices

($) Per-piece charge 3.30

Changes to Mail Classification Schedule Page 81 of 115

Special Services Ancillary Services

1505.5 Certified Mail

* * * * *

1505.5.2 Prices

(Per piece) ($) Certified Mail 3.50 Certified Mail with Restricted Delivery and/or Adult Signature 8.80

Changes to Mail Classification Schedule Page 82 of 115

Special Services Ancillary Services

1505.6 Certificate of Mailing

* * * * *

1505.6.2 Prices

Individual Piece Prices

($) Original Certificate of Mailing, Form 3817, individual article 1.45 presented at retail Three or more pieces individually listed on Form 3665-Firm or 0.41 USPS approved customer provided manifest (per piece listed) Each additional copy of original Certificate of Mailing, or original mailing receipt (Form 3877) for Registered Mail, 1.45 insured mail, Certified Mail, and COD mail (each copy)

Quantity of Pieces

($) Up to 1,000 identical-weight pieces (one Form 3606 for total 8.55 number) Each additional 1,000 identical-weight pieces or fraction 1.07 thereof Each additional copy of the original Form 3606 1.45

Changes to Mail Classification Schedule Page 83 of 115

Special Services Ancillary Services

1505.7 Collect on Delivery

* * * * *

1505.7.2 Prices

($) ($) ($) Amount to be collected, or insurance coverage desired, whichever is higher: 7.75 to 50.00 7.75 9.60 to 100.00 9.60 11.55 to 200.00 11.55 13.50 to 300.00 13.50 15.45 to 400.00 15.45 17.40 to 500.00 17.40 19.35 to 600.00 19.35 21.30 to 700.00 21.30 23.25 to 800.00 23.25 25.20 to 900.00 25.20 27.15 to 1,000.00 27.15 Additional Fees for Optional Features: COD Restricted Delivery 5.20

Changes to Mail Classification Schedule Page 84 of 115

Special Services Ancillary Services

1505.8 USPS Tracking

1505.8.1 Description

a. USPS Tracking service provides mailers of USPS Marketing Mail parcels, Package Services, Priority Mail, Parcel Select, USPS Retail Ground, and First-Class Package Service pieces with end-to-end tracking updates, including confirmation of delivery, as the item travels to its destination.

b. USPS Tracking service is automatically included with the purchase of items sent via First-Class Mail Parcels, Package Services, Priority Mail, Parcel Select, USPS Retail Ground, and First-Class Package Service.

* * * * *

1505.8.2 Prices

($) First-Class Package Service Electronic 0.00 USPS Marketing Mail Parcels Electronic 0.40 Package Services Returns with integrated retail system label 0.00 Electronic 0.00 Retail 0.00 Priority Mail Electronic/Returns with integrated retail system label 0.00 Retail 0.00 Parcel Select Electronic 0.00 USPS Retail Ground Electronic/Returns with integrated retail system label 0.00 Retail 0.00

Changes to Mail Classification Schedule Page 85 of 115

Special Services Ancillary Services

1505.9 Insurance

* * * * *

1505.9.2 Prices

Merchandise Coverage1, 2, 3

($) ($) ($) 0.01 to 50.00 2.20 50.01 to 100.00 2.80 100.01 to 200.00 3.50 200.01 to 300.00 4.60 300.01 to 400.00 5.80 400.01 to 500.00 6.95 500.01 to 600.00 9.35 600.01 to 5,000.00 9.35 plus 1.35 for each 100.00 or fraction thereof over 600.00 Additional Fee for Optional Feature Insurance Restricted Delivery 5.20

Notes

1. Up to $50.00 of Insurance coverage is included at no additional cost in the price of Priority Mail pieces that bear an Intelligent Mail package barcode or retail tracking barcode. This does not apply to Priority Mail pieces sent using Merchandise Return Service, Priority Mail Open and Distribute, or Premium Forwarding Service.

2. Up to $100.00 of Insurance coverage is included at no additional cost in the price of Priority Mail pieces that bear an Intelligent Mail package barcode and for which the mailer pays Commercial Plus prices. This does not apply to Priority Mail pieces sent using Merchandise Return Service, Priority Mail Open and Distribute, or Premium Forwarding Service.

3. For Priority Mail Express pieces, Insurance coverage for merchandise is included at no additional cost in the price of Priority Mail Express, up to $100.00 per piece.

Changes to Mail Classification Schedule Page 86 of 115

Special Services Ancillary Services

Bulk Insurance

Subtract $0.80 per piece from the applicable price for Merchandise Coverage.

Changes to Mail Classification Schedule Page 87 of 115

Special Services Ancillary Services

1505.10 Merchandise Return Service

1505.10.1 Description

a. Merchandise Return Service enables a permit holder to authorize a mailer to send parcels with the postage and fees paid by the permit holder.

b. Merchandise Return Service is available for First-Class Package Service, Priority Mail, and certain ground return parcels at Parcel Select Ground prices.

1505.10.2 Prices

($) Permit (per year) 0.00 Account maintenance (per year) 0.00 Per piece 0.00

Changes to Mail Classification Schedule Page 88 of 115

Special Services Ancillary Services

1505.11 Parcel Airlift (PAL)

1505.11.1 Description

a. Parcel Airlift service provides for air transportation of Package Services and Parcel Select, on a space available basis to or from military Post Offices outside the contiguous 48 states.

b. The minimum physical limitations for Package Services or Parcel Select mail apply to Parcel Airlift mail. The parcel may not exceed 30 pounds in weight, or 60 inches in length and girth combined.

c. Conditions for forwarding and return are specified in the Domestic Mail Manual.

1505.11.2 Prices

($) For pieces weighing: Not more than 2 pounds 0.80 Over 2 but not more than 3 pounds 1.45 Over 3 but not more than 4 pounds 1.95 Over 4 but not more than 30 pounds 2.60

Changes to Mail Classification Schedule Page 89 of 115

Special Services Ancillary Services

1505.12 Registered Mail

1505.12.1 Description

a. Registered Mail service provides added protection to First-Class Mail, First-Class Package Service, and Priority Mail pieces, and provides indemnity in case of loss, damage, or missing contents. The amount of indemnity depends upon the actual value of the article at the time of mailing, up to a maximum of $50,000.00. Articles with a declared value of more than $50,000.00 can be registered, but compensation for loss, damage, or missing contents is limited to $50,000.00.

* * * * *

1505.12.2 Prices

($) ($) ($) Declared Value: 0.00 12.40 0.01 To 100.00 12.95 100.01 To 500.00 14.95 500.01 To 1,000.00 16.60 1,000.01 To 2,000.00 18.25 2,000.01 To 3,000.00 19.90 3,000.01 To 4,000.00 21.55 4,000.01 To 5,000.00 23.20 5,000.01 To 15,000,000.00 23.20 plus 1.65 for each 1000.00 or fraction thereof over 5,000.00 Greater than 15,000,000.00 24,764.95 plus amount determined by the Postal Service based on weight, space, and value Additional Fees for Optional Features: Registered Mail Restricted Delivery 5.20 Registered COD 5.85

Changes to Mail Classification Schedule Page 90 of 115

Special Services Ancillary Services

1505.13 Return Receipt

* * * * *

1505.13.2 Prices

($) Original signature (hardcopy) 2.80 Copy of signature (electronic) 1.60

Changes to Mail Classification Schedule Page 91 of 115

Special Services Ancillary Services

1505.14 Return Receipt for Merchandise

1505.14.1 Description

a. Return Receipt for Merchandise service provides mailers of Priority Mail, USPS Marketing Mail parcels, USPS Retail Ground, Package Services, Parcel Select, and USPS Retail Ground with a mailing receipt and a return receipt providing evidence that the mail has been received at the delivery address, including the recipient’s signature. If the initial attempt to deliver the item is not successful, a notice of attempted delivery will be provided to the addressee.

b. Return Receipt for Merchandise service also supplies the mailer with the delivery address if it is different from the address used by the sender.

c. If the mailer does not receive a return receipt within a specified period of time from the date of mailing, the mailer may request evidence of delivery from the delivery record, at no additional charge.

d. Return Receipt for Merchandise service must be requested at the time of mailing.

1505.14.2 Prices

($) Per Piece (Requested at time of mailing) 4.30

* * * * *

Changes to Mail Classification Schedule Page 92 of 115

Special Services Ancillary Services

1505.16 Shipper-Paid Forwarding/Return

1505.16.1 Description

a. Shipper-Paid Forwarding/Return service enables mailers to have undeliverable-as-addressed parcels, initially mailed as USPS Marketing Mail (Commercial and Nonprofit) parcels, Package Services, Parcel Select, or USPS Retail Ground, to be forwarded at applicable First-Class Mail Package Service or Priority Mail prices for up to one year from the date that the addressee filed a change-of- address order.

b. If Shipper-Paid Forwarding/Return service is elected for a parcel that is returned, the permit holder will pay the applicable First-Class Mail Package Service or Priority Mail price, or the Bulk Parcel Return Service price, if that service was elected.

c. Shipper-Paid Forwarding/Return service is available only if automated Address Correction Service is used.

d. Mailers must receive authorization from the Postal Service to use Shipper-Paid Forwarding/Return service and, if an advance deposit account is used, pay an advance deposit account maintenance fee.

1505.16.2 Prices

($) Account Maintenance Fee (per year) 710.00

Changes to Mail Classification Schedule Page 93 of 115

Special Services Ancillary Services

1505.17 Signature Confirmation

1505.17.1 Description

a. Signature Confirmation service provides mailers of First-Class Package Service, Package Services, Parcel Select (except Parcel Select Lightweight), USPS Retail Ground, and Priority Mail pieces with a record of delivery, the recipient’s signature, and end-to-end tracking updates as the item travels to its destination. If the initial attempt to deliver the item is not successful, a notice of attempted delivery will be provided to the addressee.

b. If the item is successfully delivered, a delivery record (including the signature of the recipient) is maintained by the Postal Service for one year. If the item is returned to the sender, the Postal Service does not include the sender’s return signature as part of the delivery record. An electronic copy of the delivery record is available upon request.

c. Tracking updates may be obtained over the internet, by telephone, via mobile smartphone application, or by electronic file transfer for mailers who provide an electronic manifest. Tracking updates include the location, date, and time of: delivery or attempted delivery; the item’s arrival and departure from certain postal facilities; and if the item is forwarded or returned to the sender.

d. Signature Confirmation service may only be obtained: online; by taking the item to a Post Office, branch, station, self-service kiosk, or business mail entry unit; or by giving the item to a rural carrier.

e. Signature Confirmation service must be requested at the time of mailing.

f. Signature Confirmation service also provides, as an optional feature at an additional fee:

Restricted Delivery which directs delivery only to the addressee or addressee’s agent. The addressee must be an individual (a natural person) specified by name.

1505.17.2 Prices

($) Electronic 2.60 Retail 3.05 Additional Fee for Optional Feature: Signature Confirmation Restricted Delivery 5.20

Changes to Mail Classification Schedule Page 94 of 115

Special Services Ancillary Services

1505.18 Special Handling

1505.18.1 Description

a. Special Handling service may be requested at the time of mailing, based on the content and class of mail, and provides preferential handling of Priority Mail Express, First-Class Mail, First-Class Package Service, Priority Mail (except Critical Mail), Package Services, USPS Retail Ground, and Parcel Select (except Parcel Select Lightweight) pieces, to the extent practicable during dispatch and transportation.

b. Special Handling service is mandatory for matter that requires special attention in handling, transportation and delivery.

c. If undeliverable-as-addressed, Special Handling mail that is forwarded to the addressee is given special handling without requiring payment of an additional handling fee. However, additional postage at the applicable price is collected from the addressee on delivery.

1505.18.2 Prices

($) Fragile 10.95

Changes to Mail Classification Schedule Page 95 of 115

Special Services Ancillary Services

1505.19 Stamped Envelopes

1505.19.1 Description

Plain Stamped Envelopes and Personalized Stamped Envelopes are envelopes with imprinted or impressed First-Class Mail postage. Personalized Stamped Envelopes, including the premium options, may be obtained by special request.

1505.19.2 Prices

($) Plain stamped envelopes Basic, size 6-3/4, each 0.14 Basic, size 6-3/4, 500 17.95 Basic, over size 6-3/4, each 0.14 Basic, over size 6-3/4, 500 20.45 Personalized stamped envelopes Basic, size 6-3/4, 50 5.90 Basic, size 6-3/4, 500 27.65 Basic, over size 6-3/4, 50 5.90 Basic, over size 6-3/4, 500 31.35 Additional Charges for premium options, per 50

envelopes Pressure-sensitive sealing 5.35 Font size, font style, and/or ink color 1.05 (for one, two, or all three) Window 1.05 Additional Charges for premium options, per 500

envelopes Pressure-sensitive sealing 15.95 Font size, font style, and/or ink color 2.25 (for one, two, or all three) Window 2.25

Changes to Mail Classification Schedule Page 96 of 115

Special Services Ancillary Services

($) Shipping—Boxes of 50 1 box 5.45 2 boxes 6.75 3 boxes 7.95 4 boxes 9.05 5 boxes 11.10 6 boxes 11.95 7 boxes 13.20 8 boxes 14.55 9 or more boxes 16.45

Shipping—Boxes of 500 1 box 9.95 2 or more boxes 16.45

Changes to Mail Classification Schedule Page 97 of 115

Special Services Ancillary Services

1505.20 Stamped Cards

1505.20.1 Description

Stamped Cards are postcards with imprinted or impressed First-Class Mail postage. Double Stamped Cards consist of two attached postcards, one of which may be detached by the receiver and returned by mail as a single Stamped Card. The premium options allow customization of large orders for an additional charge.

1505.20.2 Prices

($) Single card 0.04 Double reply-paid card 0.08 Sheet of 40 cards (uncut) 1.60 Pack of 10 sheets of 4 cards each 1.70 Premium Options (Additional Charge) ($) Per order of 250 cards Printing of return address 20.00 Font size, font style, and/or ink color (for one, two, or all 1.00 three) Monogram 1.00 4-Color logo – first 250 cards 80.00 4-Color logo – additional 250 cards 5.00 Per Order of 1,000 cards Printing of return address 50.00 Font size, font style, and/or ink color (for one, two, or all 2.00 three) Monogram 2.00 4-Color logo – first 1,000 cards 85.00 4-Color logo – additional 1,000 cards 10.00

* * * * *

Changes to Mail Classification Schedule Page 98 of 115

Special Services International Ancillary Services

1510 International Ancillary Services

1510.1 International Certificate of Mailing

1510.1.1 Description

International Certificate of Mailing service furnishes evidence that mail has been presented to the Postal Service for mailing. It is available for unregistered outbound First-Class Mail International items.

1510.1.2 Prices

Individual Piece Prices

($) Original certificate of mailing for listed pieces of ordinary 1.45 Single-Piece First-Class Mail International items Three or more pieces individually listed in a firm mailing book 0.41 or an approved customer provided manifest (per piece) Each additional copy of original certificate of mailing or firm 1.45 mailing bills (each copy)

Multiple Piece Prices

($) Up to 1,000 identical-weight pieces (one certificate for total 8.55 number) Each additional 1,000 identical-weight pieces or fraction 1.07 thereof Duplicate copy 1.45

Changes to Mail Classification Schedule Page 99 of 115

Special Services International Ancillary Services

1510.2 International Registered Mail

* * * * *

1510.2.2 Prices

Outbound International Registered Mail Prices

($) Per Piece 16.00

Inbound International Registered Mail Prices

Payment is made in accordance with Part III of the Universal Postal Convention. This information is available in the Letter Post Manual at www.upu.int.

Changes to Mail Classification Schedule Page 100 of 115

Special Services International Ancillary Services

1510.3 International Return Receipt

1510.3.1 Description

Outbound International Return Receipt

a. Outbound International Return Receipt service provides evidence to the mailer that an article has been received at the delivery address. The return receipt, which is attached to the article mailed, is signed at the point of delivery and is returned to the sender.

b. Outbound International Return Receipt service is available for registered outbound First-Class Mail International items.

c. Outbound International Return Receipt must be purchased at the time of mailing.

Inbound International Return Receipt

a. Inbound International Return Receipt service provides evidence to the mailer that an article has been received at the delivery address. A return receipt is signed for at the point of delivery and is returned to the sender.

b. International Return Receipt service is available for registered letter post items.

1510.3.2 Prices

Outbound International Return Receipt Prices

($) Per Piece 4.10

Inbound International Return Receipt Prices

No additional payment.

Changes to Mail Classification Schedule Page 101 of 115

Special Services International Ancillary Services

1510.4 Customs Clearance and Delivery Fee

1510.4.1 Description

The Postal Service collects a fee on each inbound package on which Customs duty or Internal Revenue tax is collected.

1510.4.2 Prices

($) Per Dutiable Item 6.40

Changes to Mail Classification Schedule Page 102 of 115

Special Services Address Management Services

1515 Address Management Services

* * * * *

1515.2 Prices

($) Address Sequencing Per correction (removal of each undeliverable address, or 0.45 addition of each missing or new address) Insertion of blanks 0.00 AEC II Service 1-100 records resolved, minimum fee 33.00 Additional records resolved, per record 0.330 AIS (Address Information System) Viewer (per year, per site) City State Delivery Type Retrieval 75.00* Annual Subscription County Name Retrieval 75.00* Annual Subscription Delivery Statistic Retrieval 100.00* Annual Subscription ZIP + 4 Retrieval 75.00* Annual Subscription CRIS Route (per year) Per state (annual subscription) 50.00* All States (annual subscription) 975.00* CASS Certification Cycle Testing: (for next cycle) August-January 200.00 Cycle Testing: February, March 500.00 Cycle Testing: April 600.00 Cycle Testing: May 700.00 Cycle Testing: June 800.00 Cycle Testing: July 900.00 Cycle Testing: (for current cycle) After July 31st 1000.00

Changes to Mail Classification Schedule Page 103 of 115

Special Services Address Management Services

($) Change-of-Address Information for Election Boards and

Registration Commissions Per change of address 0.45 Change-of-Address Customer Notification Letter Reprint 50.00 City State (per year) All States (annual subscription) 405.00 CDS (per address, per year) 0.011 Minimum (per year) 55.00 Correction of Address Lists Per submitted address 0.45 Minimum charge per list (30 items) 13.50 Delivery Statistics (per year) All States (annual subscription) 405.00* DMM Labeling Lists 63.00 DPV System (per year)3 11500.00 DSF2 Service (per year)4 114000.00 Each additional location per year 57000.00 Each additional platform per location per year 57000.00 eLOT Service (per year) Per state (annual subscription) 50.00* All States (annual subscription) 975.00*

Changes to Mail Classification Schedule Page 104 of 115

Special Services Address Management Services

($) Five-Digit ZIP (per year) All States (annual subscription) 575.00* LACSLink5 Interface Developer (first year) 1150.006 Interface Developer (each one-year extension) 360.006 Interface Distributor (per year) 1350.007 Data Distributor (per year) 360.00 End User (per year) 360.008 MASS Certification MASS Manufacturers (MLOCR) Cycle Testing: (for next cycle) November – June 500.009 Cycle Testing: July 1000.009 Cycle Testing: (for current cycle) After July 31st 1500.0010 MASS End-Users (MLOCR) Cycle Testing: (for next cycle) March – June 500.009 Cycle Testing: July 1000.009 Cycle Testing: (current cycle) After July 31st 1500.0010 MASS Manufacturers (Encoder) Cycle Testing: (for next cycle) November – June 300.009 Cycle Testing: July 750.009 Cycle Testing: (for current cycle) After July 31st 1000.0010 MASS End-Users (Encoder) Cycle Testing: (for next cycle) March – June 300.009 Cycle Testing: July 750.009 Cycle Testing: After July 31st 1000.0010 MASS IMb Quality Testing 300.00

Changes to Mail Classification Schedule Page 105 of 115

Special Services Address Management Services

($) NCOALink Service11 Initial Interface Developer (first year fee) 6200.00 Interface Developer (per each one year extension) 1225.00 Interface Distributor (per year) 30600.00 Full Service Provider (per year) 211000.00 Full Service Provider Each Additional Site (per year) 104000.00 Limited Service Provider (per year) 18200.00 Limited Service Provider (per each one year extension) One Site only 18200.00 Each additional site 9100.00 ANKLink Service Option (per year) First Site 4250.00 Each Additional Site 1950.00 End User/MPE (first year) 9100.00 End User/MPE (each renewal year) One site (each site for MPE) 9100.00 Each additional site (End User only) 4250.00 ANKLink Service Option (per year) 935.00 NCOALink Test, Audit (each) 1225.00 Official National Zone Charts (per year) Matrix 60.00 RDI Service (per year)1 370.00 Z4 Change (per year) All States 3500.00* ZIP + 4 Service (per year) Per state (annual subscription) 50.00* All States (annual subscription) 975.00

Changes to Mail Classification Schedule Page 106 of 115

Special Services Address Management Services

($) ZIP Code Sortation of Address Lists Per 1,000 addresses, or fraction 145.00 ZIP Move (per year) All States (annual subscription) 115.00* 99 Percent Accurate Method (per 1,000 addresses per year) 1.15 Minimum (per year) 115.00

* * * * *

Changes to Mail Classification Schedule Page 107 of 115

Special Services Caller Service

1520 Caller Service

1520.1 Description

a. Caller Service provides a means for receiving mail, and enables an eligible customer to have properly addressed mail delivered through a call window or loading dock.

b. Caller Service is provided to customers at the discretion of the Postal Service, based on mail volume received and conditions at the location.

c. Caller Service is not available to a customer whose sole purpose for using this service is to obtain free forwarding or transfer of mail by filing change-of-address orders.

1520.2 Prices

($) Groups based on Post Office location (Semi-Annual): Group 1 815.00 Group 2 755.00 Group 3 695.00 Group 4 655.00 Group 5 620.00 Group 6 575.00 Group 7 540.00 Call Number Reservation (Annual1) 54.00

Notes

1. For customers using the Enterprise PO Box Online system, the semi-annual and annual fees may be prorated one time to align payment periods for multiple caller service numbers. The prorated fee for each such caller service number will be based on the number of months between the expiration of the current fee and the month of the payment alignment.

Changes to Mail Classification Schedule Page 108 of 115

Special Services Credit Card Authentication

1525 Credit Card Authentication

1525.1 Description

The Credit Card Authentication fee is charged when customers use a credit card to verify their identity to the Postal Service, and/or authenticate a credit card.

1525.2 Prices

($) Per credit card authentication 1.05

* * * * *

Changes to Mail Classification Schedule Page 109 of 115

Special Services International Business Reply Mail Service

1540 International Business Reply Mail Service

* * * * *

1540.3 Prices

Outbound International Business Reply Mail Service Prices

($) Card 1.45 Envelope 1.95

Inbound International Business Reply Mail Service Prices

Payment is made in accordance with Universal Postal Convention Article 13. This information is available in the Letter Post Manual at www.upu.int.

Changes to Mail Classification Schedule Page 110 of 115

Special Services Money Orders

1545 Money Orders

1545.1 Description

a. Money Order service provides the customer with an instrument for payment of a specified sum of money. The maximum value for which a domestic postal money order may be purchased is $1,000.00. Other restrictions on the number or dollar value of postal money order sales, or both, may be imposed by law or as specified in the Domestic Mail Manual.

b. A receipt for purchase is provided at no additional cost.

c. On the date of original issue, the Postal Service will replace, without charge, money orders that are spoiled or incorrectly prepared. After the date of original issue, the applicable money order fee is charged.

d. Inquiries or claims may be filed by the purchaser, payee, or endorsee.

1545.2 Prices

($) ($) ($) Domestic 0.01 to 500.00 1.25 Domestic 500.01 to 1,000.00 1.70 APO/FPO/DPO 0.01 to 1,000.00 0.45 Inquiry, including a copy of paid money order 6.15

Changes to Mail Classification Schedule Page 111 of 115

Special Services Post Office Box Service

1550 Post Office Box Service

* * * * *

1550.4 Prices

Regular and No Fee

Box Size Semi-annual Fees1 (Groups based on Post Office location) ($) 1 2 3 4 5 6 7 E2 1 57.00 45.00 38.00 32.00 28.00 23.00 20.00 0.00 2 84.00 69.00 56.00 46.00 38.00 32.00 27.00 0.00 3 145.00 117.00 97.00 75.00 60.00 47.00 41.00 0.00 4 265.00 220.00 178.00 137.00 104.00 76.00 60.00 0.00 5 416.00 344.00 281.00 236.00 168.00 133.00 106.00 0.00

Box Size 3-Month Fees (Groups based on Post Office location) ($) 1 2 3 4 5 6 7 1 34.00 27.00 23.00 19.00 16.00 14.00 12.00 2 50.00 41.00 34.00 28.00 23.00 19.00 16.00 3 87.00 70.00 58.00 45.00 36.00 28.00 25.00 4 159.00 132.00 107.00 82.00 62.00 46.00 36.00 5 249.00 205.00 168.00 141.00 100.00 79.00 63.00

Notes

1. For customers using the Enterprise PO Box Online system, the semi- annual fees may be prorated one time to align payment periods for multiple boxes. The prorated fee for each such box will be based on the number of months between the expiration of the current fee and the month of the payment alignment.

2. When the Postal Service determines not to provide carrier delivery to a customer’s physical address or business location that constitutes a potential carrier delivery point, as defined by the Postal Service, that customer becomes eligible for one Post Office Box at the Group E fee.

Changes to Mail Classification Schedule Page 112 of 115

Special Services Post Office Box Service

Postal Facilities Primarily Serving Academic Institutions or Their Students

Period of box use Price (days) 95 or less ½ semiannual price 96 to 140 ¾ semiannual price 141 to 190 Semiannual price 191 to 230 1 ¼ semiannual price 231 to 270 1 ½ semiannual price 271 to full year Two times semiannual price

Ancillary Post Office Box Services

($) Key duplication or replacement 6.00 Lock replacement1 22.00 Key deposit 3.00

Notes

1. The lock replacement fee may also be charged as a late payment fee, regardless of whether the lock is changed.

Changes to Mail Classification Schedule Page 113 of 115

Special Services Customized Postage

1555 Customized Postage

1555.1 Description

a. The Customized Postage program authorizes vendors to provide their customers with Postal Service-authorized postage consisting of customer-selected images aligned with Postal Service-approved indicia of postage payment. As a condition of participation, a vendor must comply with all Postal Service requirements, including the content of submitted images and specifications for postage indicia printing. The vendor must also allow Postal Service inspection to ensure compliance.

b. A vendor’s annual participation fee allows the vendor to print at two facilities. Additional print sites may be added at a reduced fee. The Postal Service does not control the price that the vendor charges its customers, beyond the applicable price for postage. The face amount of the postage is remitted to the Postal Service by the vendor.

1555.2 Prices

($) Annual Participation Fee (up to two printing facilities) 340000.00 Additional Printing Sites (3-50 sites, each site) 57000.00 Over 50 Printing Sites (each site) 5700.00

Changes to Mail Classification Schedule Page 114 of 115

Special Services Stamp Fulfillment Services

1560 Stamp Fulfillment Services

1560.1 Description

Stamp Fulfillment Services provides the fulfillment of stamp orders placed by mail, phone, fax or online to the Stamp Fulfillment Services organization.

1560.2 Prices

Orders mailed to domestic United States destinations ($) Orders up to $50.00 1.301; add 2.252 for

custom orders Orders over $50.00 1.801; add 2.252 for custom orders Orders mailed to destinations outside of domestic United ($) States Orders up to $50.00 6.551; add 2.252 for

custom orders Orders over $50.00 7.051; add 2.252 for custom orders

Notes

1. Fee does not apply if the comparable fee from the Philatelic Sales pricing section is being charged for the shipment of a combined order of stamps and philatelic items. Fee also does not apply for orders consisting solely of stamped cards with a printed return address, or stamps sent as part of a subscription, in which the customer agrees to purchase a series of items of a specified type, and establishes a means of payment in advance. If a customer requests expedited shipping, then the order will be shipped using Priority Mail Express, with actual postage charged instead of the listed fees.

2. A custom order is a stamp order in configurations other than those listed for each item in the USA Philatelic catalog.

Changes to Mail Classification Schedule Page 115 of 115

ATTACHMENT C

PRICE CAP CALCULATION

ATTACHMENT C: PRICE CAP CALCULATION

Calculation of amount of applicable change in CPI-U and Price Cap

12-Month 12-Month Last 12 Months 12-Month Total Divided Moving Average [5] CPI [1] Point-to-Point [2] Total [3] by 12 [4] Jan-16 236.919 1.4% 2847.4 237.285 0.239% Feb-16 237.111 1.0% 2849.8 237.484 0.325% Mar-16 238.132 0.9% 2851.8 237.652 0.402% Apr-16 239.261 1.1% 2854.5 237.873 0.513% May-16 240.229 1.0% 2856.9 238.075 0.601% Jun-16 241.018 1.0% 2859.3 238.274 0.675% Jul-16 240.628 0.8% 2861.3 238.438 0.730% Aug-16 240.849 1.1% 2863.8 238.649 0.803% Sep-16 241.428 1.5% 2867.3 238.940 0.928% Oct-16 241.729 1.6% 2871.2 239.264 1.051% Nov-16 241.353 1.7% 2875.2 239.599 1.150% Dec-16 241.432 2.1% 2880.1 240.007 1.262% Jan-17 242.839 2.5% 2886.0 240.501 1.355% Feb-17 243.603 2.7% 2892.5 241.042 1.498% Mar-17 243.801 2.4% 2898.2 241.514 1.625% Apr-17 244.524 2.2% 2903.4 241.953 1.715% May-17 244.733 1.9% 2907.9 242.328 1.786% Jun-17 244.955 1.6% 2911.9 242.656 1.839% Jul-17 244.786 1.7% 2916.0 243.003 1.914% Aug-17 245.519 1.9% 2920.7 243.392 1.987% Sep-17 246.819 2.2% 2926.1 243.841 2.051% Oct-17 246.663 2.0% 2931.0 244.252 2.085% Nov-17 246.669 2.2% 2936.3 244.695 2.127% Dec-17 246.524 2.1% 2941.4 245.120 2.130% Jan-18 247.867 2.1% 2946.5 245.539 2.095% Feb-18 248.991 2.2% 2951.9 245.988 2.052% Mar-18 249.554 2.4% 2957.6 246.467 2.051% Apr-18 250.546 2.5% 2963.6 246.969 2.073% May-18 251.588 2.8% 2970.5 247.540 2.151% Jun-18 251.989 2.9% 2977.5 248.126 2.254% Jul-18 252.006 2.9% 2984.7 248.728 2.356% Aug-18 252.146 2.7% 2991.4 249.280 [6 ] 2.419%

[1] Consumer Price Index -- All Urban Consumers, U.S. All Items (the "CUUR0000SA0" series) [2] The current month CPI [Column 1] divided by CPI for same month, previous year [3] Sum of the most recent 12 months CPI measurements in Column [1] [4] Column [3] / 12 [5] (The current month value in Column [4] / value from same month, previous year) - 1 [6] Exactly 12 CPI-U months have passed since the previous price adjustment for all Market Dominant mail classes so the price cap is the 12-month moving average (Column 6) or 2.419%.

ATTACHMENT D

2019 PROMOTIONS CALENDAR

2019 Promotions Calendar

Overview:

Building upon the success of the Promotions Calendars over the last few years, the Postal Service has developed a Promotions Calendar for Calendar Year (CY) 2019. The general purpose of the CY 2019 Promotions is to encourage marketers, printers, and mailers to utilize new technology and print techniques that enhance the traditional benefits of a physical mailpiece. This in turn will drive higher response rates and increase the overall return on the mailer’s investment in mail. By encouraging the use of technologies integrated in mail, the Postal Service expects to increase the value of direct mail and retain the volumes of transactional mail, thereby ensuring long-term product growth. The promotion periods will range between 3 to 6 months in duration, starting as early as February 1, 2019. Ultimately, the Postal Service decided to focus the CY 2019 Promotions on the following areas: USPS Informed Delivery, Augmented Reality, Virtual Reality, Near Field Communication and Beacons, Shoppable Video, Video in Print, Programmatic and Retargeting Mail, Mobile and Social Media Shopping, Tactile, Sensory and Interactive Print, and Transpromotional Messaging.

The promotions developed for CY 2019 are:

 Emerging and Advanced Technology Promotion  Mobile Shopping Promotion  Tactile, Sensory and Interactive Mailpiece Engagement Promotion  Informed Delivery Promotion  Personalized Color Transpromo Promotion  Earned Value Reply Mail Promotion

Emerging and Advanced Technology Promotion (includes: Mixed Reality, Addressable TV and Shoppable Video)

As mobile and other print technologies evolve, mail has the potential to offer greater value by engaging customers in new and exciting ways. In order to ensure that direct mail continues to be a relevant part of the marketing mix, the Postal Service is offering another promotion encouraging customers to incorporate technologies such as “Enhanced” Augmented Reality, Virtual Reality and Mixed Reality, Near Field Communication (NFC), Video in Print (ViP) featuring Shoppable Video, Integration with Digital Assistants, and Addressable TV technology application in their direct mail campaigns.

Eligible Mail: First-Class Mail presort and automation letters, cards, and flats, USPS Marketing Mail letters and flats, and Nonprofit USPS Marketing Mail letters and flats Discount: 2 percent off eligible mailpieces Registration Period: January 15, 2019 – August 31, 2019 Promotion Period: March 1, 2019 – August 31, 2019 Mailpiece Requirements: To be eligible for the promotion, the mailpiece must incorporate any of the following elements:

1. Interactive NFC technology (examples include the ability to create calendar events; toggle on and off device features; or trigger messaging services, video, or other device features).

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2. Bluetooth Low Energy (BLE)/Beacon Technology. Bluetooth Low Energy (BLE)/Beacon Technology is the use of low energy Bluetooth devices that broadcast an identifier to nearby mobile and electronic devices. The “transmission” range can be programmed to be as little as a few centimeters to as much as 10 meters between the iBeacon/Beacon and the receiving device. To qualify for the promotion, the BLE/Beacon application must be part of the mailpiece that interacts with a mobile device.

3. Digital to Direct Mail: Digital to Direct Mail encourages mailers to produce mailpieces that create a greater connection and elicit a higher response from consumers by using dynamically printed, personalized messaging that is automatically triggered based on a digital interaction. The Digital to Direct Mail option for the Emerging and Advanced Technology Promotion aims to grow the value of First-Class Mail and USPS Marketing Mail and encourage mailers to invest in digitally reactive and personalized direct mail delivered within two days based on consumers’ online behavior. Unlike other options in this promotion, Digital to Direct Mail starts with digital behavior to dynamically create a customized/targeted mailpiece instead of the physical mailpiece launching a digital experience. Traditional direct mail is based on who you are; these mailpieces are based on what you do.

4. Addressable TV: New to this year’s Emerging and Advanced Technology promotion, mailers will now be able to use Addressable TV (the ability to purchase TV advertising at the household level using specific audience data like household income, age, gender, shopping behavior, and lifestyle interests) in conjunction with direct mail to provide a coordinated omni-channel experience to enhance their marketing campaigns. For example, an advertiser will purchase an Addressable TV commercial unit from a TV operator with set-top box technology that will allow the advertiser to target the appropriate household, and deliver a one-to-one advertising message to that household. The Addressable TV unit message must run in conjunction with a direct mailpiece to the targeted household that includes a message supporting the marketing campaign. In order to qualify for the promotion, the advertiser will need to show proof that the Addressable TV ad schedule was purchased and provide us with a sample of the direct mailpiece that will run in support of the Addressable TV spot(s) prior to the advertisement airing. For auditing purposes, we will also require confirmation that the Addressable TV ad ran as planned via a post-buy report produced by the advertiser, which must show the date, time, and channel on which the spot ran.

5. “Enhanced” Augmented Reality: must include two or more of the following elements:  2D/3D elements or modules;  Animation;  Interplay between the physical mailpiece and the digital world that actively uses the viewer’s perspective.

6. Virtual Reality (VR): the mailpiece must provide a link to immersive VR experiences, and can either provide a low-cost paper/cardboard version of a VR viewing device (such as in recent Wall Street Journal or Sports Illustrated issues), OR may link users to specific VR experiences from the mailpiece, leveraging the recipient’s own viewing device (such as Oculus Rift, Google Cardboard, etc.).

7. Mixed Reality: as we continue to evolve our existing real-and-virtual reality forms such as enhanced augmented reality and virtual reality, we are including mixed reality in this year’s

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Emerging and Advanced Technology promotion. Mixed Reality combines both augmented and virtual experiences through a combined immersive technology that can include sight, sound, and touch. Mixed Reality can include different experiences but some of the most common include blending physical and virtual experiences via a head-set. Mixed Reality is a subset (along with previously mentioned augmented reality and VR) of Extended Reality (XR), which is the broadest level of virtual immersive technology. The headsets that allow for VR or Mixed Reality experiences are all part of the XR devices and should be thought of when using all of these technologies. For purposes of the promotion, the direct mailpiece must have a trigger leading to a Mixed Reality experience, similar to the requirement for augmented reality and VR. To qualify for the promotion, the mailpiece must include:  Directional copy that explain to the recipient the apps that must be downloaded to the mobile device or any experiences that must be uploaded to engage the Mixed Reality experience;  A message in/on it that relates to the Mixed Reality experience;  Headset/viewers or devices that allow the recipient to engage in the Mixed Reality experience (participants may consider incorporating a QR Code or an NFC chip to add ease of use in engaging the Mixed Reality experience through the use of a mobile device and headset).

8. Video in Print (ViP) Technology: ViP is video advertising that integrated into a printed piece that is featured in print catalogs and/or mailpieces. Simply linking to video content (i.e., a YouTube video) is not adequate to meet the criteria for ViP. Likewise, links to video on streaming services like Netflix and Hulu do not qualify for the Live Streaming option of this promotion. ViP can be integrated into a printed piece in several ways including, but not limited to:  Integrated video screen within a printed, mailable piece;  Integrated Video/Picture utilizing translucent paper;  Personalized Interactive Video;  Shoppable Video.

To qualify for the promotion, the mailpiece must:  Leverage QR codes, Augmented Reality, or Near Field Communications as the trigger to link to the interactive video experience or CRM video system.  Must include directional copy alerting the consumer how to interact with/trigger the start of the video.

9. Integration with Digital Assistants: is a grouping of technologies that allows the mailpiece to provide clear and specific instruction that enables the recipient to engage with digital assistants like chatbots or voice assistance (i.e., Siri, Cortana, Alexa, Google Home, etc.). One of the challenges with new digital assistant tools is that the user needs to understand how to activate a command or use specific verbal or written prompts to engage with the capabilities. A physical mailpiece must provide specific directional copy that instructs the recipient on how to interact with the assistant to accomplish specific business tasks that are part of the mailer’s audio branding.

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Enrollment Participants and/or Mail Service Providers (MSPs) should register on the Business Customer Gateway (BCG) via the Incentive Programs (gateway.usps.com). Promotion participants should complete their registration (including agreeing to the promotion terms) at least 2 hours prior to presenting the first qualifying mailing and specify which permits and CRIDs will be participating in the promotion. Mailing Dates Mail must be tendered for acceptance during the promotion period, and Mail March 1 – August 31, 2019. All promotion eligible mailings must be Preparation finalized in PostalOne! no earlier than 12:00:00 AM on March 1, 2019 and no later than 11:59:59 PM on August 31, 2019 (the last day of the promotion).

Plant-Verified Drop Shipment (PVDS) mailings that are verified and paid for during the promotion period and that qualify for the promotion, will be accepted at destination entry postal facilities through September 15, 2019 (at the discounted rate), when presented with appropriate verification and payment documentation (PS Form 8125). Postage Postage must be paid using a Permit Imprint or Precanceled Stamp Payment Permit. Select Meter Permit mailings may qualify. Every Door Direct Mail (EDDM) deposited at a Business Mail Entry Unit may qualify, but EDDM Retail mailings taken to local Post Office retail units are ineligible to participate. eDoc Mailings must be submitted electronically via Mail.dat and Mail.XML or Postal Wizard. Mailings that are prepared and entered by an entity other than the mail owner must indicate the owner’s identity in the electronic documentation ("eDoc"). The eDoc must identify the mail owner and mail preparer in the By/For fields by Customer Registration ID (CRID), Mailer ID (MID) or Permit number. Commingled The promotion discount can be applied to qualifying pieces within a Mail combined or commingled mailing, but the qualifying pieces must be submitted on separate postage statements or by mailpiece version. Pre-Verification Mailers participating with Digital to Direct must submit a sample to the and Mailpiece program office for pre-verification prior to mailing to ensure that program Samples requirements are met. In addition, the mailer must provide a hard copy, unaddressed sample of the mailpiece that demonstrates the advertising content to the acceptance clerk. If a mailing agent submits mailings from multiple mailers, it must present a hard copy sample of each mailer’s mailpiece.

Mobile Shopping Promotion

This promotion is aimed at businesses and mailers offering products for sale, especially during the 2019 holiday shopping season. As mobile technology continues to change the landscape of consumer interaction, mail has the potential to serve as an invaluable conduit between the mobile platform and shopping experience. The CY 2019 Mobile Shopping Promotion encourages mailers to integrate mobile technology with direct mail to create a convenient method for consumers to do their online shopping. Using technology platforms such as Quick Response (QR) Codes, Snap Tags, Watermarks, and other advanced technologies to launch consumers into online shopping experiences is a great combination of the power of print

4 solutions and web-based shopping portals. The CY 2019 Mobile Shopping Promotion will also continue to encourage the implementation of evolving QR code technology, including animated QR codes, Visual QR codes, Dotless QR codes, Voice QR codes, and aspects of the new visual design capabilities and data-based analytics now supporting QR technology. New barcode formats continue to multiply and can provide the basis for linking a physical mailpiece to a digital experience (i.e., Twitter QR codes, Amazon Smile codes, Pinterest pin codes, Messenger codes, LinkedIn QR codes, Instagram nametags, etc.). Mailers are encouraged to contact the Program Office for review and approval if they have a new or additional barcode format they would like to explore. The CY 2019 Mobile Shopping Promotion will continue to allow mailers to qualify via a Social Media purchasing component. Mailers can also qualify with an App-enabled QR code payment. This can be either the mailer’s branded app or payment provided app, as long as the instructions are clear.

Eligible Mail: USPS Marketing Mail letters and flats, and USPS Nonprofit Marketing Mail letters and flats Discount: 2 percent off eligible mailpieces Registration Period: June 15, 2019 – December 31, 2019 Promotion Period: August 1, 2019 – December 31, 2019 Mailpiece Requirements: All qualifying mail must contain a barcode or other technology that allows the user to engage in an electronic shopping experience. Qualifying technologies include, but are not limited to: open-sourced barcodes (such as a QR Code or Datamatrix code); a proprietary barcode or tag (such as SnapTags or MS Tags); an image embedded with a digital watermark; Near Field Communication; and, intelligent print image recognition (including an enhanced augmented reality experience). Qualifying technologies may also include newer barcode features such as animated, visual, dotless, or voice QR codes with analytic features.

In addition, the print/mobile technology must lead to a mobile optimized shopping site or a social media web page (such as Pinterest, Instagram, Facebook, Twitter, YouTube or Tumblr) with a click to shop feature, or an app enabled barcode payment. If led to a shopping website, the recipient must be able to make a purchase from the webpage or website.

Enrollment Participants and/or Mail Service Providers (MSPs) should register on the Business Customer Gateway (BCG) via the Incentive Programs (gateway.usps.com). Promotion participants should complete their registration (including agreeing to the promotion terms) at least 2 hours prior to presenting the first qualifying mailing and specify which permits and CRIDs will be participating in the promotion. Mailing Date and All promotion eligible mailings must be finalized in PostalOne! during Mail Preparation the promotion period, August 1 – December 31, 2019. PVDS mailings that are verified and paid for during the promotion period and that qualify for the promotion, will be accepted at destination entry postal facilities through January 15, 2020 (at the discounted rate), when presented with appropriate verification and payment documentation (PS Form 8125). Postage Payment Postage must be paid using a Permit Imprint or Precanceled Stamp Permit. Select meter permit mailings may qualify. EDDM deposited at a Business Mail Entry Unit may qualify, but EDDM Retail mailings taken to local Post Office retail units are ineligible to participate. eDoc Mailings must be submitted electronically via Postal Wizard, Mail.dat or Mail.XML. The eDoc must identify the mail owner and mail preparer in the By/For fields by CRID.

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Commingled Mail The promotion discount can be applied to qualifying pieces within a combined or commingled mailing, but the qualifying pieces must be submitted on separate postage statements or by mailpiece version. Pre-Verification Mailers participating with the Social Media shopping feature must submit & Mailpiece a sample to the program office for pre-verification prior to mailing to Samples ensure that program requirements are met. In addition, the mailer must provide a hard copy, unaddressed sample of the mailpiece that demonstrates the advertising content to the acceptance clerk. If a mailing agent submits mailings from multiple mailers, it must present a hard copy sample of each mailer’s mailpiece.

Tactile, Sensory and Interactive Mailpiece Engagement Promotion

The print industry continues to develop innovations in papers/stocks, substrates, finishing techniques and inks. New print elements can be incorporated in a mail campaign to engage a multi-sensory experience through special visual effects, sound, scent, texture/tactile treatments, and even taste. In addition, interactive mailpiece features (such as pop-ups, infinite folds, or other dimensional treatments) can help drive customer engagement. Neuroscience and neuromarketing research suggests that marketing materials that engage tactile experiences and/or other senses lead to potentially significant impacts on brand recognition and message recall. By leveraging advances in print and finishing technology, marketers and mailers can enhance the way consumers interact and engage with mail to drive customer engagement and response rates.

Eligible Mail: USPS Marketing Mail letters and flats, and Nonprofit USPS Marketing Mail letters and flats Discount: 2 percent off eligible mailpieces Registration Period: December 15, 2018 – July 31, 2019 Promotion Period: February 1, 2019 – July 31, 2019 Mailpiece Requirements: Mailpieces must be pre-verified by the Program Office in advance of any mailing submissions to qualify for the promotion discount. Mailpieces must contain at least one element from one of the three following categories:

1. Specialty Inks (including but not limited to: Conductive inks, Leuco Dyes/Thermochromic, Photochromics, Optically Variable Ink, Metallic Ink, piezochromatic ink, and hydro chromic ink)

2. Specialty Papers that make use of at least one of the following features (use of these features must be connected to the marketing message of the mailpiece):  Scent: Paper infused with scent, or microencapsulated  Sound: Paper that incorporates sound chip/speakers  Taste: Paper that incorporates edible components  Visual: Paper that incorporates special effects (e.g., filters, holographic effects, lenticular effects)  Textural: Paper that incorporates textural treatments such as sandpaper, soft/velvet touch, and UV finishes (does not include Scratch-off features, borders, reveals, die-cuts and detachables, or zip-strip opening mechanisms for envelopes)

3. Interactive mailpieces that make use of dynamic folds that the user can twist, spin, dial or bend, and other dimensional enhancements (such as 3-dimensional features and pop-ups)

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Enrollment Participants and/or MSPs must register on the BCG via the Incentive Program Service (gateway.usps.com) at least 1 week prior to presenting the first qualifying mailing. Mailing Date and All promotion eligible mailings must be finalized in PostalOne! during the Mail Preparation promotion period, February 1 – July 31, 2019. PVDS mailings that are verified and paid for during the promotion period and that qualify for the promotion will be accepted at destination entry postal facilities through August 15, 2019 (at the discounted rate), when presented with appropriate verification and payment documentation (PS Form 8125). Postage Postage must be paid using a Permit Imprint or Precanceled Stamp Payment Permit. Select meter permit mailings may qualify. Every Door Direct Mail (EDDM) deposited at a Business Mail Entry Unit may qualify, but EDDM Retail mailings taken to local Post Office retail units are ineligible to participate. eDoc Mailings must be submitted electronically via Postal Wizard, Mail.dat or Mail.XML. The eDoc must identify the mail owner and mail preparer in the By/For fields by Customer Registration ID (CRID) Commingled The promotion discount can be applied to qualifying pieces within a Mail combined or commingled mailing, but the qualifying pieces must be submitted on separate postage statements or by mailpiece version. Pre-Verification Mailers must submit a sample to the program office for pre-verification and Mailpiece prior to mailing to ensure that program requirements are met. In Samples addition, the mailer must provide a hard copy, unaddressed sample of the mailpiece that demonstrates the advertising content to the acceptance clerk. If a mailing agent submits mailings from multiple mailers, it must present a hard copy sample of each mailer’s mailpiece.

2019 Personalized Color Transpromo Promotion

This promotion encourages mailers of bills and statements to use color messaging in order to create a greater connection to and response from consumers. The Promotion is intended to increase the value of First-Class Mail, and encourage mailers to invest in color print technology. An upfront postage discount is provided to mailers who use dynamic/variable color print for personalized transpromotional marketing messages on their bills and statements. For companies who have participated in this promotion in prior years, the mailer will be required to incorporate both dynamically printed color and personalized messaging in the mailpieces. For companies/mail owners who have not previously participated, only the dynamic color printing requirement must be satisfied in their first year of participation to help facilitate the process of getting on board with the technology.

. Eligible Mail: First-Class Mail® presort and automation letters (excludes all FCM single- piece-priced mail) . Discount: 2 percent off eligible mailpieces . Registration Period: May 15, 2019 – December 31, 2019 . Promotion Period: July 1, 2019 – December 31, 2019 . Mailpiece Content Restriction: Bills and statements only

Because First-Class Mail is sealed against inspection, mailers must submit samples to the Program Office for pre-approval prior to any mailings.

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Enrollment Participants and/or Mail Service Providers (MSPs) should register on the Business Customer Gateway (BCG) via the Incentive Programs (gateway.usps.com). Promotion participants should complete their registration (including agreeing to the promotion terms) at least 2 hours prior to presenting the first qualifying mailing and specify which permits and CRIDs will be participating in the promotion. Mail Preparation Letters must be prepared according to First-Class Mail standards and be part of a Full-Service IMb mailing. Mailing Date Mail must be accepted during the promotion period, July 1 – December 31, 2019 Postage Payment Permit Imprint, Precanceled Stamp Permit and some Meter Mailings eDoc Mailings must be submitted electronically via Postal Wizard, Mail.dat or Mail.XML. The eDoc must identify the mail owner and mail preparer in the By/For fields by CRID. Commingled Mail The promotion discount can be applied to qualifying pieces within a combined or commingled mailing, but the qualifying mail must be submitted on separate postage statements or by mailpiece version. Verification and The mailer must provide a hard copy, unaddressed full sample of the Mailpiece mailpiece showing the placement of the personalized full color Samples transpromotional message that was dynamically printed to the Business Mail Entry Unit/acceptance clerk. If a mailing agent submits promotional mailings from multiple mailers, a hard copy sample of each mailer's mailpiece must be presented. Addressed samples will not be accepted. If pieces are variably printed, one sample that is comparable to the mailing may be presented.

In limited circumstances mailers using the same messaging with limited variations throughout the promotion period may contact the program office for an alternate process for mailpiece sampling. These mailers must send the Program Office samples of the pre-print/input sheet as well as samples of the dynamic print versions. Samples must be submitted at least three weeks in advance of the initial mailing. In addition, a list of all BMEUs that will be used for mail entry throughout the promotion must be provided to the Program Office.

2019 Informed Delivery Promotion

The Postal Service has created its own omni-channel tool for mail through the development of the Informed Delivery platform. In an effort to increase the adoption rate of Informed Delivery, the Postal Service is offering a 2 percent discount off postage for mailings that incorporate Informed Delivery campaigns as a component of their mailings. Mailers who seek to qualify for this promotion by using Informed Delivery must:  Create an Informed Delivery campaign through the Informed Delivery Portal or through eDoc submission;  Supply the replacement image, ride-a-long image, and url as part of the submission of the Informed Delivery campaign. The ride-a-long image must include a call-to-action;  Ensure the dates of the informed delivery campaign coincide with the physical mailing claiming the promotion (First class mail date within 4 days of ID campaign end date, Marketing mail date within 9 days of ID campaign end date);

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 Ensure the serial number range for that campaign is sufficient to include all the volumes in the mailing (if the serial range provided is insufficient, not all mailpieces may qualify for the promotion discount);  Supply the Program Office with a .pdf sample of the campaign ride-a-long image prior to mailing submission.

Eligible Mail*: First-Class Mail presort and automation letters, cards, and flats, USPS Marketing Mail letters and flats, and Nonprofit USPS Marketing Mail letters and flats Discount: 2 percent off eligible mailpieces Registration Period: July 15, 2019 – November 30, 2019 Promotion Period: September 1, 2019 – November 30, 2019 Mailpiece Requirements: To be eligible for the promotion, the mailpiece must incorporate an Informed Delivery campaign with their mailings.

*As of October 2018, images are only provided for letter-sized mailpieces that are processed on the Postal Service's automated equipment. As the Informed Delivery development timeline supports additional mailpiece shapes and sizes, mailers may be able to participate in the promotion with these mailpiece types as the capabilities are enabled.

Enrollment Participants and/or Mail Service Providers (MSPs) should register on the Business Customer Gateway (BCG) via the Incentive Programs (gateway.usps.com). Promotion participants should complete their registration (including agreeing to the promotion terms) at least 2 hours prior to presenting the first qualifying mailing and specify which permits and CRIDs will be participating in the promotion. Mailing Dates Mail must be tendered for acceptance during the promotion period, and Mail September 1 – November 30, 2019. All promotion eligible mailings must Preparation be finalized in PostalOne! no earlier than 12:00:00AM on September 1, 2019 and no later than 11:59:59 pm on November 30, 2019 (the last day of the promotion).

Plant-Verified Drop Shipment (PVDS) mailings that are verified and paid for during the promotion period and qualify for the promotion will be accepted at destination entry postal facilities through December 15, 2019 (at the discounted rate), when presented with appropriate verification and payment documentation (PS Form 8125). Postage Postage must be paid using a Permit Imprint or Precanceled Stamp Payment permit. Some Meter Permit mailings may qualify. Every Door Direct Mail (EDDM) deposited at a Business Mail Entry Unit may qualify, but EDDM Retail mailings taken to local Post Office retail units are ineligible to participate. eDoc Mailings must be submitted electronically via Mail.dat and Mail.XML or Postal Wizard. Mailings that are prepared and entered by an entity other than the mail owner must indicate the owner’s identity in the electronic documentation ("eDoc"). The eDoc must identify the mail owner and mail preparer in the By/For fields by Customer Registration ID (CRID), Mailer ID (MID) or Permit number. Commingled The promotion discount can be applied to qualifying pieces within a Mail combined or commingled mailing, but the qualifying mail must be submitted on separate postage statements or by mailpiece version.

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Pre-Verification The mailer must provide a hard copy, unaddressed sample of the and Mailpiece mailpiece that demonstrates the advertising content to the acceptance Samples clerk. If a mailing agent submits mailings from multiple mailers, it must present a hard copy sample of each mailer’s mailpiece.

Earned Value Reply Mail Promotion

The 2019 Earned Value Reply Mail Promotion is intended to help slow the decline of First-Class Mail including Business Reply Mail (BRM) and Courtesy Reply Mail (CRM) pieces. As technology continues to disrupt mail volume, the Postal Service would like to encourage mailers to continue distributing BRM, CRM, and Share Mail pieces. Mailers who register their Mailer ID (MID) information and use eligible Intelligent Mail barcodes on their BRM, CRM, and Share Mail pieces may receive a postage credit for each mailpiece that is placed in the mailstream by the recipient and scanned during the promotion period.

The Earned Value Reply Mail Promotion will run for three months in 2019, from April 1, 2019 through June 30, 2019 (for details, see “Credit Amount” below). At the end of the promotion, the BRM, CRM, and Share Mail pieces will be totaled and the earned postage credit applied to the selected permit accounts. The mailer can apply the credit towards future mailings of First-Class Mail presort and automation cards, letters, and flats and USPS Marketing Mail letters and flats. Earned Value credits will expire on December 31, 2019.

Eligible Mail: BRM, CRM, and Share Mail Credit Amount: New Participants: $0.03 credit for each BRM, CRM, and/or Share Mail piece counted CY 2017 Earned Value Participants: if registered for the CY 2017 promotion, in CY 2019 must meet or exceed 95 percent of volume counted for the same MID between April 1, 2018 and June 30, 2018. If 2019 volumes are equal to or exceed the established threshold based on 2018 volumes, mailers will be credited $0.03 per BRM, CRM, and/or Share Mail piece counted during the promotion period. If participant volumes do not at least meet the 95 percent threshold, no credits are earned. Registration Period: February 15 – March 31, 2019 Promotion Period: April 1 – June 30, 2019

Credit Expiration December 31, 2019 Acceptance Period for Credits will be released when the mailer agrees to their volumes, after Credits: the promotion ends. Agreement on volumes must be reached by September 15, 2019; otherwise the credits will be forfeited. Credit At the end of the promotion, the applicable credit amount will be Calculation/Application multiplied by the total BRM, CRM, and Share Mail pieces counted, for each enrolled MID, as long as the total count meets or exceeds the threshold. Once the mailer accepts their credits in the BCG, they will be applied to the Permit accounts. Tracking All mailpiece counts for BRM, CRM, and Share Mail pieces that contain the registered MID(s) and that customers mail will be collected. Enrollment Mailers must register their permits and MIDs and the Permit Imprint account to which future earned credits will be applied on the BCG to participate.

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Mailpiece Requirements BRM, CRM, and Share Mail mailpieces must contain an IMb with the enrolled MID encoded to qualify. Postcard and letter-size BRM must be barcoded with a valid and properly used ZIP+4 code on the mailpiece, and the same ZIP+4 code must be encoded within the IMb. The IMb on all BRM, CRM, and Share Mail pieces must contain the barcode ID, service type ID, and correct ZIP+4 routing code. Permit holders must use the ZIP+4 codes and the IMb assigned by the Postal Service. BRM, CRM, and Share Mail pieces that are placed in the mailstream by the recipient must have a valid IMb with a registered MID.

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