Parcel Endorsement Options and Shipper Paid Forwarding

1. Parcel Endorsement Options and Shipper Paid Forwarding 8/05/08

2. America Is Growing & On the Move • 13.7% of all Americans move each year • 41.1 million individual / family Change-of-Address (COA) filings • 19.3% of all businesses move each year • 2.3 million business COA filings • 146+ million delivery points in USPS® database • 1.8 million new addresses are added each year

3. Undeliverable Parcels • Forward • Return • Waste • No Address Corrections • Corrections on Changes of Address (COA) only • Corrections on all Undeliverable-as- Addressed (UAA)

4. Address Correction Methods/Content • PS Form 3547 • ACS™ electronic record • Correction affixed to returned piece • New address information • Reason for nondelivery

5. Mailer’s Decisions • The mailer must decide: • If my mail cannot be delivered as addressed, how do I want the mailpiece treated? • If my mailpiece cannot be delivered, do I want the address correction? Do I want the reason for nondelivery? • If I want the new address or nondelivery reason, how do I want to receive it? • How much do I want to pay for undeliverable pieces?

6. Mailpiece Disposition • What do I want done with the mail? • Forward where possible, return the rest? • Dispose of all UAA? • Dispose of all UAA that cannot be forwarded? • Return everything?

7. Address Corrections • Do I want a hardcopy notice? • Do I want electronic notices, but only of forwarding information? • Do I want a hardcopy if electronic cannot be produced?

8. Express Mail® • Forward with separate address correction, return with correction affixed (ASR1) • Return all pieces with correction affixed (RSR) • Forward (no correction) or return with correction affixed (FSR) • All corrections manual only

9. First-Class™/Priority Mail® • Forward with separate address correction, return with correction affixed (ASR1) • Dispose of all pieces, separate correction provided (CSR1) (Priority – perishable only) • Return all pieces with correction affixed (RSR) • Return all pieces with correction affixed, except forward temporary (TRSR) • Forward (no correction) or return with correction affixed (FSR)

10. First-Class™/Priority Mail® • Forward with separate address correction, return with correction affixed, electronic correction in all cases (ASR2) • Dispose of all pieces, separate correction provided (CSR1) (Priority – perishable only) • Forward with separate address correction, dispose all other undeliverables, electronic correction in all cases (CSR2) • Require ACS™ participation

11. Standard Mail® • Forward with separate address correction, return with correction affixed (ASR) • Dispose of all pieces, separate correction provided (CSR) • Return all pieces with correction affixed (RSR) • Forward (no correction) or return with correction affixed (FSR)

12. Standard Forwarding/Return Postage • Forwarding postage is not collected directly • All mail pieces returned because they are undeliverable and bear an ancillary service endorsement requesting forwarding pay the weighted fee on return (2.472 x appropriate First-Class™ or Priority Mail® rate). • Other requested returns charged at appropriate single-piece First-Class or Priority Mail rate or Bulk Parcel Return Service (BPRS) rate if applicable.

13. Standard Mail® BPRS • Requires an annual fee • Requires an Accounting fee • Requires a minimum of 10,000 returned pieces in 12 months • Requires endorsement of Return or Address Service Requested-BPRS • Requires machinable classification • Pays a flat rate for each return

14. Standard Mail® Shipper Paid Forwarding (SPF) • Requires Traditional ACS™ • Requires the use of Address Service Requested or Address Service Requested – BPRS ancillary service endorsement. • Allows mailer to be charged forwarding postage billed via ACS account. Each forwarded piece generates an address correction and a postage charge for the single piece rate. • Returned pieces are charged the single piece rate or BPRS rate as applicable, collected at return office.

15. Package Services Bound Printed Matter • Waste all pieces, no address corrections (Unendorsed) • Forward where possible, return undeliverable with correction affixed (FSR) • Waste all pieces, separate address correction (CSR)

16. Package Services Bound Printed Matter • Return all pieces with address correction affixed (RSR) • Forward all possible, separate address correction, return undeliverables with address correction affixed (ASR) • Shipper Paid Forwarding available

17. Library/Media Mail® • Forward locally free • Forward non-locally postage due • Returns at qualifying rate if marked • Forward where possible, return undeliverable with correction affixed (FSR) • Waste all pieces, separate address correction (CSR)

18. Library/Media Mail® • Return all pieces with address correction affixed (RSR) • Forward all possible, separate address correction, return undeliverables with address correction affixed (ASR) • Shipper Paid Forwarding

19. All other Package Services • Forward locally free • Forward non-locally postage due • Returns at single-piece zone rate • Forward where possible, return undeliverable with correction affixed (FSR) • Waste all pieces, separate address correction (CSR)

20. All other Package Services • Return all pieces with address correction affixed (RSR) • Forward all possible, separate address correction, return undeliverables with address correction affixed (ASR) • Shipper paid forwarding may be available

21. Package Services Forwarding/Return Charges • Forwarded locally no charge • Forwarded non-locally postage due • Returns at single piece zone rate or BPRS rate (if applicable) • Shipper paid forwarding available for qualifying pieces

22. Package Services Shipper Paid Forwarding • Requires Traditional ACS™ • Requires the use of Address Service Requested or Address Service Requested – BPRS ancillary service endorsement. • Allows mailer to be charged forwarding postage billed via ACS account. Each forwarded piece generates an address correction and a postage charge for the single piece rate. • Returned pieces are charged the single piece zone rate or BPRS rate as applicable

23. Traditional ACS™ • The USPS® assigns the mailer a Participant ID (PID) consisting of 7 alpha characters. • The mailer completes a profile, choosing a class and mailpiece treatment option for each Participant ID. • The mailer prints the Participant ID and optional keyline at the top of the address block. • The mailer prints the requested ancillary service endorsement on each piece.

24. Traditional ACS™ • The Computerized Forwarding System (CFS) uses the Participant ID and optional keyline, class and ancillary service endorsement typed into the system by a clerk – along with Change-of-Address records or reasons for nondelivery to determine the disposition of the mailpiece and produce ACS records.

25. ACS™ Record Content • COA record contains the Move Effective Date, move type (Family, Individual, Business), parsed name - from the COA, not the mailpiece, parsed old and new address. • Nixie record contains the Participant ID, the keyline, and the reason for nondelivery code.

26. New Address Quality • Because ACS™ data comes directly from the forwarding database, some percentage of those new addresses will not DPV® confirm. The information provided on the record is the information we use for forwarding. • COA data is corrected where possible through processes like LACSLink®, Address Element Correction (AEC), AEC II®, and the Electronic Unresolved Address Reporting System (eUARS).

27. Nondelivery Codes • USPS® provides a reason for nondelivery if the mail cannot be delivered or forwarded. • ACS™ reasons for nondelivery are a subset of the total. The others cannot be automated and must be provided manually.

28. Source of Nixie data • Mail is determined to be undeliverable only by the clerk, carrier, or postmaster at the address on the mail. • Each piece is marked with the reason for nondelivery and submitted to CFS for processing • Nixie data does not come from a database. It is determined on each individual mailpiece.

29. Nondelivery Codes

30. Undeliverable, but not a nixie ACS™ record

31. Temporarily Away • Legitimate reason for non-delivery • Two ways to receive: • Either the customer has a temporary change of address on file • The customer left mail on hold and did not return on schedule. Carrier/clerk not yet able to submit permanent database entry

32. ACS™ Account Approval (prior to mailing) • ACS mailers must submit samples to the ACS department for approval prior to account activation. • Samples are reviewed for correct use and placement of ancillary service endorsements the Participant ID and the keyline

33. Record Fulfillment • Address corrections are compiled by Participant ID and posted to RIBBS™ or mailed on CD. • Mailer chooses daily, biweekly, weekly, bimonthly, or monthly fulfillments. • Mailer logs into website manually or through a script or other automated process to collect data.

34. Record Delivery on RIBBS™ • Access is provided via a login and password by the customer account number, also known as a MEM number. • MEM number is an “umbrella” account number for billing purposes, under which PIDs can be grouped, by class.

35. Fulfillments and Shipping Notices • Each fulfillment data file is accompanied by a Shipping Notice file. • The file format is available in the ACS™ technical guides. • The Shipping Notice file provides the number and type of ACS records provided in the fulfillment file of the same date.

36. Monthly Billing • Each month, an invoice is sent to the PID/MID holder showing each fulfillment, the types of records fulfilled, and the amount due. • Invoices are payable 30 days net • Statements are also provided.

37. For More Information • Traditional ACS™, please read USPS® Pub 8a • OneCode ACS®, please read USPS Pub 8b • Both are available on RIBBS™ at http://ribbs.usps.gov/files/ACS/ • Check out our website http://ribbs.usps.gov/ • Also be sure to read DMM® 507 for more information on the treatment of UAA mail.

38. Thank you for your time and attention. I hope you found this presentation and discussion helpful.