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New Postal
Regulations |
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| On July 1,
1996, the US Postal Service implemented the largest change in business
mail regulations in the past two decades. The changes effect 89% of
the mail that is delivered by the Post Office. Though the single piece
rate remains at 37 cents, every other aspect of business mail has
changed.
Business mail not conforming to the new standards will be rejected
by the Post Office starting July 1, 1996.
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| New Rules
Overview |
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| Overall,
these new rules under Classification Reform include:
Two new classes of mail: Periodicals replaces
Second-Class and Standard Mail replaces Third- and Fourth-Class.
New postage rates for presorted business mail. Deeper discounts
given for barcoded mail and less discounts for non-barcoded mail.
Completely new procedures for preparing Bulk Mail. New postal forms
to submit with the mailing. First-Class Mail will require Change
of Address updates every 6 months (effective 10/1/96). New 1-foot
trays now can be used along with current 2-foot trays. PAVE certified
software encouraged but NOT required. Standardized documentation
is required. No grace period. The USPS will reject mailings prepared
under the old rules starting July 1, 1996.
For barcoded mail, rule changes include:
The lowest rate for barcoded mail drops from $.166
to $.155 per piece. Mailings must be 100% barcoded (vs. only 85%
barcoded).
New 150 piece minimum requirement for 3-digit & 5-digit trays.
Packaging and rubber-band of mail eliminated for barcoded mailings.
All barcoded mail must be CASS-certified every six months instead
of annually. Barcoded tray labels will be required by January 1,
1997.
For non-barcoded mail, rule changes include:
Lowest rate for non-barcoded mail rises
from $.188 to $.191 per piece. 5 Digit ZIP Codes must be "verified"
once a year.
Packaging and rubber-banding of mail still required.
Notion of "Upgradable Letters" that are automation compatible
which receive the same rates as other non-barcoded mail may be delivered
faster.
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| Why... |
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| The USPS cites
the following reasons for Classification Reform: |
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Reduces length and complexity of regulations.
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Easier training for
USPS employees & mailers. |
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Postage rates are more
in line with processing costs (so they can keep the single pieces
rate at 32 cents longer). |
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Separates less efficient
(non-barcoded) mail from efficient (barcoded) mail |
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Encourages mailers to
create mail which costs less to process (barcoded). Improves overall
address quality. |
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So...the USPS can be more competitive in today's environment. |
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| Benefits |
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Greater postage discounts
given for barcoded mail. |
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Reduce complexity of regulations. |
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Easier mail acceptance
at Post Office. |
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Easier decisions on
what type of Bulk Mail sort to use. |
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Reduced preparation
costs for some mailers. |
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Lower overhead costs
for larger mailers. |
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Less diverse entry
and postage verification requirements. |
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Longer rate stability. |
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Better and faster service. |
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Lower long-term costs
due to better address quality. |
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| Costs |
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Less postage
discounts given for non-barcoded mail. |
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Higher barriers to
entry for barcoded mail. |
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100% barcode requirements
for barcoded rates. |
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CASS certification
required every 6 months. |
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Change of Address updates
every 6 months for First-Class Mail. |
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| ZIP Code
Updating for Non-barcoded Mail |
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| Starting October
1, 1996, you must use a USPS-approved method to verify and correct
all of the five-digit ZIP Codes within the last year of your mailing
for both First-Class and Standard Non-barcoded Bulk Mail. You will
be required to certify that this standard has been met when you drop
off your mailing. Once verified and corrected, an address can be used
for any mailing within a year. At the time of this writing, this policy
was not well defined. Please contact your local Postal Business Center
or contact the USPS at 1-800-THE-USPS for more current details.
You may also want to visit the USPS's amazing web site at www.usps.com
for complete postal rates and much more.
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