May 14 Rate Case Myths and Facts

Information relating to the presorting process in AccuZIP6, which may include rate change information and news about important updates as well as regulation changes or DMM Rules interpretation.

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May 14 Rate Case Myths and Facts

Post by Eric » Wed May 16, 2007 1:45 pm

When I get a free minute, I'm going to make a post here detailing some postal rules interpretation Myths and Facts. This will go over the last two days of what post offices around America are saying vs. what the new postal rules really are. Some subjects that will be covered will include:

Myth: You can only get a Machinable AADC rate when pieces are in an AADC tray of 150 pieces or more.

Myth: Standard Class letters have a nonmachinable surcharge

Myth: A Standard Class automation flat can't get a 5 digit rate if the piece is going into an AADC tray, even though the piece is in a 5 digit bundle.

Myth: A Standard Class Nonautomation flat cannot get a 3 digit rate if a minimum volume requirement for nonautomation flats isn't filled.

Myth: All First-Class Nonautomation Letters get a 17 cent surcharge

Soon, I'll fill in the facts, with DMM and Quick Service Guide references.
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Post by Eric » Mon May 21, 2007 3:56 pm

Myth: A Standard Class Nonautomation flat cannot get a 3 digit rate if a minimum volume requirement for nonautomation flats isn't filled.

FACT: You CAN bundle automation and nonautomation rate pieces together, and the rate for the nonautomation piece is based on the sack that the piece is going into.

http://pe.usps.gov/text/dmm300/705.htm#wp1180034

DMM 705.11.3.1
Mailers may choose to cobundle (see 345.1.4u.) automation rate and nonautomation rate flat-size pieces as an option to the basic bundling requirements in 345.5.0 and 345.7.0

http://pe.usps.gov/text/dmm300/705.htm#wp1179712

705.9.3
e. The rates for pieces in the automation rate mailing are applied based on the number of pieces in the bundle and the level of bundle to which they are sorted under 343.7.0. The rates for pieces in the Presorted rate mailing are based on the number of pieces in the bundle and the level of sack in which they are placed under 343.3.6 and 343.3.7.

As an example, if you have 9 automation rate pieces going to 93422 and 6 nonautomation pieces going to 93422, that can be a 5 digit bundle. If that bundle is in a 3 digit sack, then the 6 nonautomation pieces get a 3 digit rate. The 9 automation pieces get a 5 digit automation rate. The rate for automation rate pieces is based on the bundle; the rate for nonautomation rate pieces is based on the sack that they're in.
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Post by Eric » Mon May 21, 2007 4:16 pm

Myth: You can only get an AADC rate (or Machinable AADC rate) when pieces are in an AADC tray of 150 pieces or more.

FACT: A 3-Digit Origin tray can also get an AADC or Machinable AADC rate

Standard Mail Machinable Letters
Quick Service Guide 240b: Standard Mail Machinable Letters

3-Digit Origin/Entry
Trays: Optional, trays may be prepared for each origin 3-digit tray; one less-than-full tray permitted.
Labels: For Line 1, use L002, Column A, for destination facility. For Line 2, use "STD LTR 3D MACH."
Rate: Machinable AADC


DMM 243.5.4.1

Instead of preparing overflow trays, mailers may include pieces in the mixed AADC trays. Pieces placed in a mixed AADC tray in lieu of an AADC overflow tray are eligible for the AADC rate.

5.4 Machinable Rate Application
Machinable letters are subject only to AADC and mixed AADC rates.

DMM 243.5.4

5.4.1 AADC Rate
The AADC rate applies to qualifying letter-size machinable pieces (see 201.1.0, Physical Standards for Machinable Letters and Cards) placed in origin/entry 3-digit trays, to quantities of 150 or more pieces prepared in AADC trays for a single AADC, and to pieces placed in mixed AADC trays in lieu of overflow AADC trays.

DMM 243.5.4.1 tells you there are three ways to get the Machinable AADC rates:
1. A 3 digit origin tray
2. A 150-piece AADC tray
3. A MAADC tray in lieu of an Overflow AADC tray.

Standard Mail Automation Letters:

DMM 243.7.3

c. Groups of fewer than 150 pieces in origin/entry 3-digit/scheme trays and groups of 150 or more pieces in AADC trays qualify for the AADC rate. Pieces placed in mixed AADC trays under 245.7.5 in lieu of AADC overflow trays also are eligible for AADC rates (see 245.7.5).

Once again, there are three ways to get the AADC rates:

3 Digit Origin tray with fewer than 150 pieces
AADC tray of 150 or more pieces
Mixed AADC tray in lieu of an AADC overflow tray.

Quick Service Guide 240c: Standard Mail Automation Letters

3-Digit/Scheme
Trays: Required, at least 150 pieces to same 3-digit/scheme destination; only one overflow tray permitted per destination.
Optional: One less-than-full tray may be prepared for any remaining pieces for each 3-digit/scheme of SCF serving post office where mail is verified.Barcoded Labels: For Line 1, use L002, Column B, for destination facility.
Rate: 3-Digit or AADC

AADC rate for any 3-digit/scheme tray for the origin SCF area containing fewer than 150 pieces.

Nonmachinable Standard Class Letters

DMM 243.5.5.3

5.5.3 ADC Rate
The ADC rate applies to letter-size pieces subject to the nonmachinable rates (see 5.5) placed in 3-digit origin/entry trays and to pieces prepared in quantities of 150 or more for an ADC and presented in ADC trays under 245.5.0.

Quick Service Guide 240a: Standard Mail Nonmachinable Letters

Optional: Tray may be prepared for any remaining bundles for each origin 3-digit ZIP Code prefix.
Rate: Nonmachinable 3-Digit or Nonmachinable ADC
Nonmachinable ADC rate for pieces placed in 3-digit origin/entry tray.

First Class Automation Letters

Quick Service Guide 230d: First-Class Mail Automation Letters and Cards

3-Digit/Scheme1
Trays: Required, 150 pieces to same 3-digit/scheme destination; bundling not permitted; only one overflow tray permitted per destination.2
Exception: After all full trays are prepared, one less-than-full tray must be prepared for any remaining pieces for each 3-digit of SCF serving post office where mail is verified.
Rate: 3-Digit or AADC
AADC rate for any 3-digit/scheme tray for the origin SCF area containing fewer than 150 pieces.

DMM 233.5.3

c. Groups of fewer than 150 pieces in origin 3-digit/scheme trays and all pieces in AADC trays qualify for the AADC rate. Pieces placed in mixed AADC trays in lieu of AADC overflow trays under 235.6.6 are eligible for the AADC rates.
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Post by Eric » Wed May 23, 2007 8:33 am

Myth: All First-Class Nonautomation Letters get a 17 cent surcharge

Fact: A First-Class Nonautomation Letter must meet one of the specified nonmachinable characteristics in order to get the 17 cent surcharge


DMM 233

1.4 Nonmachinable Surcharge
Surcharge per Presorted rate piece (see 201.2.1, Criteria for Nonmachinable Letters, and 4.3, Nonmachinable Surcharge for Letter-Size Pieces): $0.17.

4.3 Nonmachinable Surcharge for Letter-Size Pieces
The nonmachinable surcharge in 1.4 applies to letter-rate pieces (except card-rate pieces) that meet one or more of the nonmachinable characteristics in 201.2.1.

2.1 Criteria for Nonmachinable Letters
A letter-size piece is nonmachinable if it has one or more of the following characteristics (see 601.1.4 to determine the length, height, top, and bottom of a mailpiece):

a. Is over 3.3 ounces, unless prepared as an automation-rate letter.

b. Has an aspect ratio (length divided by height) of less than 1.3 or more than 2.5.

c. Is polybagged, polywrapped, or enclosed in any plastic material.

d. Has clasps, strings, buttons, or similar closure devices.

e. Contains items such as pens, pencils, or loose keys or coins that cause the thickness of the mailpiece to be uneven (see 601.11.18, Odd-Shaped Items in Paper Envelopes).

f. Is too rigid (does not bend easily when subjected to a transport belt tension of 40 pounds around an 11-inch diameter turn).

g. For pieces more than 4-1/4 inches high or 6 inches long, the thickness is less than 0.009 inch.

h. Has a delivery address parallel to the shorter dimension of the mailpiece.

i. Self-mailers with a folded edge perpendicular to the address if the piece is not folded and secured according to 3.13.1, Folded Self-Mailer.

j. Booklet-type pieces with the bound edge (spine) along the shorter dimension of the piece or at the top, unless prepared according to 3.13.

NOTE: There is no surcharge for Standard Class Nonautomation Letters
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Post by Eric » Thu May 24, 2007 11:34 am

MYTH: All pieces going into a 3-Digit tray for Standard Auto Letters must get a 3-digit rate.

FACT: Pieces that would normally go into a 5-Digit overflow tray can be placed in a 3-digit tray (provided there's other pieces available for the 3-Digit Tray) and still get the 5-Digit Rate.

DMM 245.7.5

7.5 Tray Preparation
Instead of preparing overflow trays with fewer than 150 pieces, mailers may include these pieces in the next tray level when a tray of 150 or more pieces can be made.

DMM 243.7.4

7.4 Price Application for Automation Letters
a. Groups of 150 or more pieces in 5-digit/scheme trays qualify for the 5-digit price. Preparation to qualify for that price is optional. Pieces placed in full 3-digit/scheme trays under 245.7.5 in lieu of 5-digit/scheme overflow trays are eligible for 5-digit prices (see 245.7.5).
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