[Federal Register Volume 75, Number 67 (Thursday, April 8, 2010)]
[Rules and Regulations]
[Pages 17861-17863]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-7896]
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POSTAL SERVICE
39 CFR Part 111
2010 Standard Mail Incentive Program
AGENCY: Postal ServiceTM.
ACTION: Final rule.
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SUMMARY: The Postal Service is revising Mailing Standards of the United
States Postal Service, Domestic Mail Manual (DMM[supreg]), to replace
existing section 709.2 with new standards for a volume incentive
program for mailers of Standard Mail[supreg] letters and flats with
mail volume exceeding their individual USPS[supreg]--determined
threshold levels. The program period will be from July 1, 2010 through
September 30, 2010.
DATES: Effective Date: July 1, 2010.
FOR FURTHER INFORMATION CONTACT: Krista Becker at 202-268-7345 or Kevin
Gunther at 202-268-7208.
SUPPLEMENTARY INFORMATION: The Postal Service is replacing the
standards applicable to the Standard Mail Incentive Program that ended
on September 30, 2009 with new standards describing the 2010 Standard
Mail Incentive Program. The 2010 Standard Mail Incentive Program
implements a volume incentive program for qualified high-volume mailers
of Standard Mail, or Nonprofit Standard Mail, letters and flats, with
volume mailed between July 1, 2010 and September 30, 2010, above their
individual threshold level. The threshold level for this program will
be set at five percent (5%) above the volume demonstrated by the
participant mailer during the same period in 2009. This program
encourages mailers to generate new volume and demonstrates the
commitment of the Postal Service to the future health of the mailing
industry.
To participate, mailers must be the permit holder (i.e. owner) of a
permit imprint advance deposit account(s) or the owner of qualifying
mail volume entered through the permit imprint advance deposit account
of a mail service provider. Qualifying mailers must be able to
demonstrate volume of at least three-hundred and fifty thousand
(350,000) Standard Mail letters and/or flats, within the program
qualification period of July 1, 2009 to September 30, 2009, mailed
through a permit imprint advance deposit account, precanceled stamp
permit, postage meter permit, or by a combination of these methods.
Applicants may also qualify for the program with volume mailed through
an account(s) owned by a mail service provider, when adequate
documentation is provided that specifies the applicant is the owner of
the mail.
The 2010 Standard Mail Incentive Program encourages mailers to
generate new mail volume. As a deterrent to mailers shifting previously
planned volume into the program to obtain incentive credits, the
mailing activity of participating mail owners will be monitored in the
calendar months prior to and following the end of the program as
follows:
For the 2010 Standard Mail Incentive Program, each
participant's June 2010 and October 2010 expected volume will be
defined as five percent (5%) over the total volume of Standard Mail
letters and/or flats recorded for the participant in June 2009 and
October 2009 respectively.
Each participant's actual June 2010 and October 2010
volumes will be compared to their respective June 2010 and October 2010
expected volumes.
Participants demonstrating a shortfall with volume to either their
June 2010 or October 2010 expected volumes will have that shortfall
deducted from the number of mailpieces eligible for an incentive credit
within the program regardless of any surplus demonstrated in the
expected volume threshold of the other month.
Those mailers identified by the Postal Service as being eligible to
participate in the program will be sent an invitation letter on or
before May 1, 2010. This invitation letter will direct interested
mailers to apply for the program online at http://www.usps.com/summersale. Mailers wishing to participate in the program, who believe
they meet the eligibility standards under DMM 709.2.2 (of this final
rule) and were not notified by letter, may request a review of their
eligibility by contacting the USPS at [email protected] no later than
May 15, 2010. Any mailer wishing to participate in the program must
initially apply at http://www.usps.com/summersale no later than May 28,
2010.
Mailers completing the online application process will receive an
electronic response from the USPS that includes:
An individual volume threshold report.
A certification letter.
A threshold inquiry form.
The individual threshold report displays the applicant's July 1,
2009 to September 30, 2009 Standard Mail letters and flats volume
mailing history, by permit number, and the applicant's USPS-calculated
threshold. The report also includes the applicant's June 2009 and
October 2009 mailing histories and the USPS-calculated expected June
2010 and October 2010 volumes. Applicants agreeing with the volume
histories and USPS calculations can sign the provided certification
letter and return a copy via e-mail to [email protected], or mail
hardcopy to Summer Sale Program Office, 475 L'Enfant Plaza, SW., RM
5410, Washington, DC 20260-5410, to be fully registered for the
program. To simplify the review process, by identifying potential
permit issues prior to scheduling contact with a USPS representative,
applicants not agreeing with any portion of their volume histories must
complete the threshold inquiry form and return it, via e-mail to
[email protected], or mail hardcopy to Summer Sale Program Office,
475 L'Enfant Plaza, SW., RM 5410, Washington, DC 20260-5410, no later
than June 30, 2010. Applicants
[[Page 17862]]
disputing USPS volume histories or calculations will be required to
provide supporting evidence as appropriate.
In addition to Standard Mail volume prepared and entered directly
by the mailer (applicant), applicants are also eligible to participate
in the program with qualifying volume prepared by a mail service
provider when entered through a permit owned by the applicant. Mail
volume through a mail service provider's permit may also qualify for
the program if adequate documentation, such as PS Form 3602, Postage
Statement--Standard Mail, identifies the mail as being prepared on
behalf of the applicant and demonstrates the applicant's prior mailing
activity. Mail service providers are not eligible for the 2010 Standard
Mail Incentive Program.
Approved program participants, demonstrating an increase in their
total Standard Mail letters and flats volume above their threshold
level, will qualify for a credit to a single designated permit imprint
advance deposit account or Centralized Account Payment System (CAPS)
account, following the close of the October 2010 mailing activity
review period. The total postage attributable to Standard Mail letters
and flats within the program period will be identified for each
participant and divided by the total number of recorded pieces, to
generate the average price per piece. Participants receive a credit in
the amount of thirty percent (30%) of the average price per piece for
the total number of mailpieces of the incremental volume, above their
threshold level, recorded during the program period.
Additionally, as part of the program administration, the Postal
Service will require each program participant to certify the data used
to calculate their program threshold level and their June 2010 and
October 2010 expected volumes. This certification requirement will be
similar to what is currently used on a PS Form 3602, Postage
Statement--Standard Mail. The certification requirement for this
initiative is designed to ensure that the data used by the Postal
Service to calculate the threshold level and applicable June 2010 and
October 2010 expected volumes for each qualifying mailer is accurate.
In accordance with the Postal Accountability and Enhancement Act,
on February 26, 2010, the Postal Service filed a Notice with the Postal
Regulatory Commission (PRC) regarding the 2010 Standard Mail Incentive
Program. Regulatory review may take up to 45 days from that date.
The Postal Service adopts the following changes to Mailing
Standards of the United States Postal Service, Domestic Mail Manual
(DMM), incorporated by reference in the Code of Federal Regulations.
See 39 CFR 111.1.
List of Subjects in 39 CFR Part 111
Administrative practice and procedure, Postal Service.
0
Accordingly, 39 CFR part 111 is amended as follows:
PART 111--[AMENDED]
0
1. The authority citation for 39 CFR part 111 continues to read as
follows:
Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 414.
416, 3001-3011, 3201-3219, 3403-3406, 3621, 3622, 3626, 3632, 3633
and 5001.
0
2. Revise the following sections of Mailing Standards of the United
States Postal Service, Domestic Mail Manual (DMM) as follows:
Mailing Standards of the United States Postal Service, Domestic Mail
Manual (DMM)
* * * * *
700 Special Standards
* * * * *
709 Experimental and Temporary Classifications
* * * * *
[Delete current section 709.2.0 in its entirety and replace with
new section 709.2.0 to introduce new standards for the 2010 Standard
Mail Incentive Program as follows:]
2.0 2010 Standard Mail Incentive Program
2.1 Program Description
The 2010 Standard Mail Incentive Program provides volume pricing
for qualified mail owners of Standard Mail, or Nonprofit Standard Mail,
letters and/or flats that are able to document mail volume exceeding
their individual USPS-determined threshold level, during the July 1,
2010 through September 30, 2010 program period. Participating mail
owners documenting volumes above their established threshold level will
receive a thirty percent (30%) credit, for each piece exceeding their
individual USPS-determined threshold level, to a single designated
permit imprint advance deposit account or Centralized Account Payment
System (CAPS) account at the conclusion of the program period. To
participate in the program, applicants must review and certify the
accuracy of the data used by the USPS to calculate their threshold
level and their June 2010 and October 2010 expected volumes.
2.2 Eligibility Standards
Mail owners are considered eligible for the program as follows:
a. Applicants must be able to document, in aggregate, volume of at
least three-hundred and fifty thousand (350,000) pieces of Standard
Mail, or Nonprofit Standard Mail, letters and/or flats in the July 1,
2009 to September 30, 2009 time period as follows:
1. Volume through one or more permit imprint advance deposit
accounts, precanceled stamp permits, or postage meter permits owned by
the applicant, or
2. Volume prepared by a mail service provider when entered through
a permit owned by the applicant, or
3. Volume within a mail service provider's permit, which can be
identified as being prepared on behalf of the applicant.
b. Mail service providers are not eligible to participate in this
program.
2.3 Program Threshold Level
Threshold level figures will be calculated independently for each
applicant as follows:
a. Thresholds will be calculated independently for each applicant,
based on the consolidated volume of Standard Mail letters and/or flats
mailed within the period from July 1, 2009 to September 30, 2009.
b. Five percent (5%) above (or 105% of) the total consolidated
volume mailed during this period defines the USPS-determined threshold
level for an individual applicant.
2.4 Application
Mail owners identified by the Postal Service as being eligible to
participate in the program will be sent an invitation letter on or
before May 1, 2010. Mail owners may apply for the program as follows:
a. The invitation letter will direct interested mail owners to
apply for the program online at www.usps.com/summersale.
b. Mail owners wishing to participate in the program must initially
apply online, or contact the USPS, at [email protected] no later than
May 28, 2010.
c. Mail owners completing the online application process will
receive an electronic response from the USPS that includes:
1 An individual volume threshold report displaying the applicant's
July 1, 2009 to September 30, 2009 Standard Mail letters and flats
volume mailing history (by permit number), the applicant's USPS-
calculated threshold, the applicant's June 2009 and October
[[Page 17863]]
2009 mailing histories and the USPS-calculated expected June 2010 and
October 2010 volumes.
2 A certification letter.
3 A threshold inquiry form.
d. Applicants agreeing with the volume histories and USPS
calculations can sign the provided certification letter and return a
copy via e-mail to [email protected], or mail hardcopy to Summer Sale
Program Office, 475 L'Enfant Plaza, SW., RM 5410, Washington, DC 20260-
5410, no later than June 30, 2010, to be fully registered for the
program.
e. Applicants not in agreement with any portion of their volume
histories must complete threshold inquiry form and return it, via e-
mail to [email protected], or mail hardcopy to Summer Sale Program
Office, 475 L'Enfant Plaza, SW., RM 5410, Washington, DC 20260-5410, no
later than June 30, 2010.
f. Applicants disputing USPS volume histories or calculations will
be required to provide supporting evidence as appropriate.
g. Upon resolution of threshold and expected volume figures,
applicants must provide a copy of the certification letter as described
in d.
h. Mail owners wishing to participate in the program, who believe
they meet the eligibility standards under 2.2 and were not notified by
letter, may request a review of their eligibility by contacting the
USPS at [email protected] no later than May 15, 2010.
2.5 Program Participation
Mail owners may participate in the program with qualifying volume
as follows:
a. Standard Mail, or Nonprofit Standard Mail, letters and/or flats
volume mailed by the participant through the participant's own permit
imprint advance account, precanceled stamp permit(s), or postage meter
permit(s);
b. Standard Mail, or Nonprofit Standard Mail, letters and/or flats
volume prepared by a mail service provider, when entered through a
permit owned by the participant;
c. Standard Mail, or Nonprofit Standard Mail, letters and/or flats
pieces mailed through a mail service provider's permit, only when the
pieces can be identified as being prepared for the participant and when
the applicant's prior mailing activity through the mail service
provider's permit can be validated.
2.6 Incentive Program Credits
Approved participants demonstrating an increase in Standard Mail,
or Nonprofit Standard Mail, letters and flats volume above their
threshold level qualify for a credit to a single designated permit
imprint advance deposit account or Centralized Account Payment System
(CAPS) account as follows:
a. The total postage paid for Standard Mail, or Nonprofit Standard
Mail, letters and flats recorded during the program will be identified
for each participant.
b. The total postage paid during the program period will be divided
by the total number of recorded pieces to generate the average price
per piece for the program period.
c. Participants will receive a credit in the amount of thirty
percent (30%) of the average price per piece applied to the total
number of mailpieces (less any adjustments resulting from the mailing
activity review under 2.7), for the incremental volume above their
threshold level, recorded during the program period.
2.7 Mailing Activity Review
Mailing activity by participants will be reviewed in the calendar
months preceding and following the end of the program. The qualifying
volume recorded for participants may be adjusted in accordance with the
following:
a. For the 2010 Standard Mail Incentive Program, each participant's
June 2010 and October 2010 expected volume will be defined as five
percent (5%) above (or 105% of) the total consolidated volume of
Standard Mail letters and/or flats recorded for the participant in June
2009 and October 2009 respectively.
b. Each participant's actual June 2010 and October 2010 volume will
be compared to their respective June 2010 and October 2010 expected
volume.
c. Participants demonstrating a shortfall in volume to either their
June 2010 or October 2010 expected volumes will have that shortfall
deducted from the number of mailpieces eligible for an incentive credit
within the program regardless of any surplus demonstrated in the
expected volume threshold of the other month.
* * * * *
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 2010-7896 Filed 4-7-10; 8:45 am]
BILLING CODE 7710-12-P