Postal News — Update and Outlook
R2006-1 Rate Case
The Board of Governors (BOG) has ruled that the R2006-1 Rate Case will be implemented in two phases:
- Phase 1 — May 14, 2007
- On May 14, 2007, the new rates and regulations will go into effect for all mail classes except Periodicals.
- New International rates and service changes will also go into effect on May 14, 2007.
- Phase 2 — July 15, 2007
- Periodical rates and preparation rules will remain unchanged until July 15, 2007. Periodical mailers will no longer be able to mail foreign mail under International Publishers Periodicals service which is being eliminated. Instead, they must mail using First-Class™ International, ISAL or IPA services and complete Form 3700.
- On July 15, 2007 new Periodical rates will go into effect along with dozens of new surcharges for bundles, trays, sacks and pallets.
New MailStream Plus® Release
A new release of Group 1 Software's presort program, MailStream Plus® version 7.8.0, will be shipped on or around April 4, 2007 to support the May 14, 2007 changes. Mailers will need to download and install a patch on or around April 30, 2007 to ensure this release is compliant with PAVE™ and MAC™.
On June 18, 2007, MailStream Plus® version 7.8.1 will be shipped to support the Periodical changes that go into effect on July 15, 2007.
First-Class Mailers Beware
The new regulations require that letters between 3.5–4.0 ounces be processed and paid for as flats. This will likely force many mailers to alter their mailing processes. Today, these pieces are non-automation letters which can be part of a manifested letter mailing.
Mailers who mail non-identical piece weight First-Class mail, such as telephone or credit card statements, will need to remove these pieces from their manifested letter jobs and either presort and manifest them separately as flats or meter them at the single piece rate for flats.
Mailers who meter mail and provide it to a presort service bureau, will also need to remove these 3.5–4.0 ounce mail pieces from their normal metering process and handle them separately. It is also possible that the presort bureau may no longer be able to handle these pieces because few of these companies process flats.