Contents Index

 

G990 Experimental Classifications and Rates

G992 Outside-County Periodicals Copalletization Drop-Ship Discounts (II)

High-Editorial, Heavy-Weight, Small-Circulation Publications

[10-3-04]

Summary

G992 contains rate and classification information for the 2-year experiment, Outside-County Copalletization Drop-Ship Discounts for High-Editorial, Heavy-Weight, Small-Circulation Publications. This copalletization experiment provides additional per-piece incentives when mailers go through the extra step of combining their mailings to build pallets and drop-ship them to destination ADCs and SCFs.

1.0 ELIGIBILITY

1.1Description

The standards in G992 apply to mailings produced by mailers and consolidators who are approved to use the outside-county Periodicals copalletization drop-ship discounts for high-editorial, heavy-weight, small-circulation publications.

1.2Rate Application

The outside-county copalletization drop-ship per-pound discounts apply to pieces meeting the standards in G992.

1.3Basic Standards

The basic standards for eligibility under G992 are as follows:

a. The advertising content of the publication must be 15 percent or less.

b. The weight per copy must be 9 ounces or more.

c. The total mailed circulation must be 75,000 addressed pieces or less (including all editions, issues, and supplemental mailings).

d. Each mailing must consist of at least two different Periodicals publications or two different editions, segments, or versions of a Periodicals publication. Each mailing must be presented with the correct postage statement(s) and register of mailing. Mailings consisting of different Periodicals publications must be accompanied by separate postage statements for each publication. Mailings consisting of different editions or versions of the same Periodicals publication must be accompanied by one consolidated postage statement and a register of mailings.

e. Each mailing must meet the documentation and postage payment standards outlined in 2.0 and P200.

f. Each mailing must be entered, and postage must be paid, at the post office where consolidation takes place, except that postage for publications authorized under the Centralized Postage Payment (CPP) system may be paid to the Pricing and Classification Service Center (PCSC). Each publication included in a mailing under these standards must be authorized for original entry or additional entry at the post office where the copalletized mailing is entered.

1.4Discount Eligibility

To be eligible for the discounts, mailpieces must be:

a. Part of a Periodicals mailing meeting the standards in M200, M820, or M900.

b. Part of a mailing segment with less than 250 pounds per title or version per ADC destination, if independently presorted. This includes mail for an ADC service area that remains after finer levels of pallets are prepared.

c. Prepared as packages on pallets under M041 and M045, or under M900.

d. Prepared on either an ADC or SCF pallet of copalletized pieces. Mailers may build on ADC or SCF pallets of 250 or more pounds prepared as part of the original presort. However, the pieces originally on these pallets (250 or more pounds per title or edition) do not qualify for the copalletization discounts.

2.0 DOCUMENTATION

Each mailing must be accompanied by documentation meeting the standards in P012, as well as any other mailing information requested by the USPS to support the postage claimed (e.g., advertising percentage and weight per copy). Documentation must be presented by title and version, segment, or edition; or by codes representing each title and version, segment, or edition included in the copalletized mailing. In addition, documentation for the copalletized mailing must:

a. Include a detailed listing documenting the distribution of total advertising and editorial pounds to each zone “before” copalletization, based on origin entry of the mail (i.e., entry at the plant or the local post office for the plant, where it is printed and presorted into bundles ready for copalletization and mailing).

b. Upon request, include presort reports showing how the pieces would have been prepared prior to copalletization.

c. Include presort and pallet reports showing how the copalletized pieces are prepared and where they will be entered (DADC or DSCF).

d. Distinguish publications or segments that do not qualify for the copalletization discounts (e.g., because there are 250 or more pounds to an ADC destination) from those that do qualify for the discounts (e.g., existing per piece copalletization discounts and new per-pound discount).

e. Allow easy reconciliation with reports prepared to reflect how mail would have been prepared prior to copalletization if requested to verify compliance with standards for discount eligibility.

3.0 DATA REPORTING

Each month, the mailer or consolidator must provide the following data via e-mail to copal@usps.gov in spreadsheet format using the model spreadsheet and time lines provided by the USPS:

a. Number of titles receiving the new copalletization discounts for high editorial publications.

b. Number of sacks that would have been prepared without copalletization, as well as the total weight, the editorial weight, and the number of addressed pieces that would have been in these sacks, by destination ADC and destination SCF.

c. Number of sacks prepared after copalletization, as well as the weight and the number of addressed pieces in these sacks.

d. Number of pallets containing mail qualifying for the ADC copalletization discounts, as well as the weight and the number of addressed pieces receiving the ADC discount on these pallets. Pallets containing some bundles that use the per-piece discounts and some bundles that use the per-pound discount must be counted separately.

e. Number of pallets containing mail qualifying for the SCF copalletization discounts, as well as the weight and the number of addressed pieces receiving the SCF discount on these pallets. Pallets containing some bundles that use the per-piece discounts and some bundles that use the per-pound discount must be counted separately.

4.0 DISCOUNTS

4.1Basic Standards

Pieces must be prepared on one of the following:

a. An SCF or ADC pallet of 250 or more pounds drop shipped to the appropriate DADC.

b. An SCF pallet of 250 or more pounds drop shipped to the appropriate DSCF.

c. An overflow DSCF or DADC pallet drop shipped to the appropriate DSCF or DADC.

d. An ADC pallet weighing between 100 and 250 pounds and drop shipped to the appropriate DADC.

4.2Discounts and Description

The discounts in Exhibit 4.2 are applicable to editorial pounds of the copalletized pieces prepared on an ADC or SCF pallet and entered at the destination ADC and SCF. The discounts are dependent on the applicable zones that would have resulted from origin entry of the publications without copalletization.

Exhibit 4.2Discounts for Co-
Palletized Pieces Prepared on an ADC or SCF Pallet

Zone Discount
DADC DSCF
1 & 2 $0.008 $0.014
3 0.013 0.019
4 0.028 0.034
5 0.050 0.056
6 0.073 0.079
7 0.101 0.107
8 0.125 0.131

5.0 REQUEST TO PARTICIPATE

A mailer or consolidator may request approval to use the outside-county Periodicals copalletization drop-ship per-pound discounts by submitting a written request to the Manager, Mailing Standards (see G043 for address). The request must be accompanied by the following:

a. A completed application form (available from the Manager, Mailing Standards).

b. A process map and narrative demonstrating how and where presort and copalletization reports (including “before” and “after” data) are created as they relate to mail movement and consolidation of packages to be copalletized. The map and narrative must also describe mail movement from production through the copalletization process including dispatch to destination entry Postal Service facilities.

c. Samples of all required documentation that will be used to substantiate eligibility for the discounts, and of the documentation that must be provided at the time of mailing, including “before” and “after” reports and postage statements. The sample reports must demonstrate:

(1) How the copalletized portion of the mailing is segregated from other mailing segments on the “before” reports.

(2) How mailing jobs, mailing segments, and containers will be identified in both “before” and “after” reports to allow reconciliation of the reports.

(3) How pieces appearing on the “after” reports that qualify for the copalletization discounts (mailing segments with less than 250 pounds to an ADC) are differentiated from those that do not (mailing segments with 250 or more pounds to an ADC). How pieces receiving the per-pound discounts are differentiated from those receiving the per-piece discounts.

d. A detailed listing documenting the distribution of total advertising and editorial pounds to each zone “before” copalletization, based on origin entry of the mail (i.e., entry at the plant or the local post office for the plant, where it is printed and presorted into bundles ready for copalletization and mailing).

e. An explanation of how data for mailings included under the copalletization experiment will be collected and reported to the USPS, including whether the model spreadsheet provided by the USPS can be used.

f. A list of the publications to be included initially in the test and evidence that each publication has obtained the appropriate additional entry authorization at the office where mailings will be verified and postage paid. The list must indicate if the publications are authorized under the Centralized Postage Payment (CPP) system. If the applicant is not a printer and/or is consolidating publications for other printers, a list of those printers must be included with the application.

6.0 DECISION ON REQUEST

The manager, Mailing Standards approves or denies a written request to use the experimental outside-county Periodicals copalletization per-pound discounts. If the application is approved, the mailer or consolidator will be notified in writing by the manager, Mailing Standards. Initial approval is for a conditional 90-day period. When the mailer or consolidator has demonstrated the ability to prepare and enter mailings under the standards in G992, final authorization will be granted. If the application is denied, the mailer or consolidator may file at a later date or submit additional information needed to support the request.

7.0 USPS SUSPENSION

The manager, Mailing Standards may suspend at any time an approval to use the per-pound discounts when there is an indication that Postal Service revenue is not fully protected. The manager will notify the participant in writing of the decision. The suspension becomes effective upon the mailer’s receipt of the notification.

DMM Issue 58 Updated 12-9-04