April 27, 2006

Rule Change Notification
The U.S. Postal Service begins assessing additional postage for bundles of presorted Periodicals, Standard Mail and Package Services intended for processing on APPS equipment April 30 that do not meet new bundle address visibility requirements. Under the visibility requirements published by the USPS in October, address and presort information on the tops of these bundles must be located so that it remains visible and readable to the naked eye during processing. The agency hasn't specified how that must be accomplished, but notes that placing the address in one of four quadrants formed by cross strapping bundles would do the trick. The requirements took effect in October, but the USPS gave mailers a grace period through April 30 before assessing extra postage for noncompliance. Also effective April 30, mailers must use two bands to secure all bundles of Periodicals, Standard Mail and Package Services intended for the APPS equipment. The rule requires mailers to use at least two bands, one around the length and one around the width, when only banding is used to secure bundles. This eliminates the option to place only one band around bundles 1-inch thick or less. Bundle verification will include evaluation by USPS acceptance personnel about bundle integrity and the visibility of address information. If errors are found for more than 20 percent of the bundles, the mailing will be subject to additional postage. The mailer always has the option to rework the mailing, as with acceptance today.

—DM News

Mailers expecting the next postal rate case to be filed this week shouldn't hold their breath. Though Postmaster General John E. Potter has said that the U.S. Postal Service plans to file the case with the Postal Rate Commission as soon as this month, a source inside the USPS said it will not be filed until May or later.

The USPS Board of Governors is expected to discuss the filing of the rate case at its May 2-3 meeting in Washington, DC. Many think the filing will be authorized at the meeting, but some say authorization could come afterward. Why the USPS apparently changed its plan is unknown. But one mailer said that "the people who are putting together the rate case simply said they need more time to prepare the case. This is going to be a complicated rate case, with not just rate increases but a number of rule changes." Regardless of when the case is filed, many mailers anticipate a big rate increase. For one, the agency said it cannot continue to absorb the high fuel and healthcare costs. Also, it might be the last increase before Congress imposes a rate cap as part of a postal reform bill awaiting action in conference committee.

—DM News