3The Nuts and Bolts of Periodicals Dennis FarleyESPN&Chuck TricamoUSPS
4Nuts and Bolts of Periodicals Mail Classification Act enacted in 1879 established the classes of mail including Second ClassFour basic elements to qualify:Published in serial formatEstablished minimum frequencyOffice of publication in United StatesFormed up of printed sheetsGenerally, there are 3 reasons the Postal Servcie would perform a review of a publication’s circulation.When a publisher first applies for Periodicals mailing privileges for a publication.Periodic reviews of a publication’s continued eligibilityLastly, to change qualification category, for example from requester to general.
5Nuts and Bolts of Periodicals Application Process Application process and associated feesAuthorization categoriesCirculation and advertising restrictionsContents and characteristicsPAID PUBLICATIONS:More than 50% paid circulation and no more than 75% advertising in half the issues in a 12 month periodREQUESTER:More than 50% either requested or paid and no more than 75% advertising in a single issue
6Nuts and Bolts of Periodicals Application Process Why a review?Original authorization for Periodicals mailing privilegesPeriodic reviews to prove continuing eligibilityChange qualification categoryGenerally, there are 3 reasons the Postal Servcie would perform a review of a publication’s circulation.When a publisher first applies for Periodicals mailing privileges for a publication.Periodic reviews of a publication’s continued eligibilityLastly, to change qualification category, for example from requester to general.
7Nuts and Bolts of Periodicals Applying for Periodicals AuthorizationForm 3500, Application for Periodicals Mailing PrivilegesDM-204, Applying for Periodicals Mailing PrivilegesOnly available via the WEB at pe.usps.comAdditional links: Additional Publications: DM-204
8Nuts and Bolts of Periodicals Alternative to USPS ReviewCertified Audit BureausFor General and Requester PeriodicalsInitial ApplicationsReentry ApplicationsPeriodic ReviewsThis is a change we made somewhat recently,For General and Requester publications only, as an alternative to the USPS performing verifications of a publication’s circulation, we now permit publishers to contract with the independent audit bureaus ABC and BPA to perform any required verification of circulation including those required for initial applications for Periodicals mailing privileges.
9Nuts and Bolts of Periodicals Periodic ReviewsThe USPS reviews Form 3526, Statement of Ownership Management and CirculationExpect a review if paid or requested circulation is less than 60% of total circulationYou should expect the Postal Service to schedule a periodic review when your paid or requested circulation is less than 60% of your total circulation. The Postal Service will review Form 3526, statement of ownership, management, and circulation….. To determine whether a review should be scheduled.It should be pointed out that the Postal Service can schedule a review of a publication’s circulation regardless of what is reported on Form 3526.You must maintain circulation records for three years from its issue date except for records for which postal verification is done by a USPS authorized audit bureau.In that case, the records must be kept as long as required by the audit bureau.
10Nuts and Bolts of Periodicals Two Forms 3526Requester publications – Form 3526-RAll other – Form 3526
11Nuts and Bolts of Periodicals Periodic ReviewsOllie Overton, OwnerSeptember 14, 2005October 126,4305,12814,95415,0831,9631,48216,91716,56557%66%Average vs actual
12Nuts and Bolts of Periodicals General PublicationsSubscriber ListExclude nonqualified recipientsNewsstand copiesOther paid33
13Nuts and Bolts of Periodicals Requester Publications Run Separate Lists For:Hard Copy Requests with Signatures and Dates along with paid subscriptionsTelemarketing or Internet Requests
14Nuts and Bolts of Periodicals Other RecordsPrint order or invoiceOrders for subscriptions and/or requestsRecords for “non-mail” sales (e.g., newsstand)A record of disposition for returnsVending machine records if anyThis is a list of the types of records you may be asked to provide. They include but are not limited to
15Nuts and Bolts of Periodicals Other RecordsRecords of sample copies distributed through the mails or otherwiseNon distributed copiesRecords of spoils, stored copies, copies for office use only, and destroyed or recycled copies912
16Nuts and Bolts of Periodicals Other RecordsCopies of receipts for cash, checks, etc.Records of depositsRecords for credit card paymentsRecords of payments received through a third party44
17Nuts and Bolts of Periodicals Ordered Subscriptions Not Yet Paid Count as paid for up to two or three billing cycles or 90 days after order (Promise to Pays)
18Nuts and Bolts of Periodicals Membership OrganizationsMembership application, dues payment, and membership renewal noticesMake sure they separate the amount paid for a subscription to the publication from other fees55
19Nuts and Bolts of Periodicals Subscription as Part of MembershipBe sure it is clear to the member that a specific amount is for the publicationDues statementAnnual Membership Dues of $100 includes $ for a one year subscription to Airline Pilots International55
20Nuts and Bolts of Periodicals Resolved that a copy of “Carpenters USA” Request as Part of MembershipMembership organizations may adopt a resolution specifying that each member receive a copy of each issueResolved that a copy of “Carpenters USA”shall be sent to each member of the National Carpenters Association of America262
21Nuts and Bolts of Periodicals What if I use Telemarketing/Internet?Three methods:Audit Bureau ReviewForm 3845Publisher Letter262
22Nuts and Bolts of Periodicals How long will I have to wait for results?The goal is to schedule reviews within 30 days of the receipt of an application at the Post OfficeReviews should take around 1-3 daysApplications are sent to the PCSCDecision made within ten days after the eligibility review1013
23Nuts and Bolts of Periodicals What if I fail the review?You may have to re-file with a later issuePending money is not refundedYou have to prepare mail as either First-Class or Standard Mail ORYou may appeal the decision
24Nuts and Bolts of Periodicals How will the appeal work?Appealed to Postal Service Headquarters through the PCSCEvidence to refute the determination may allow the PCSC to reverse its decisionIf not, Postal Service Headquarters may reverse or uphold the decision
25Nuts and Bolts of Periodical AppealYou may file a petition for a hearing with an Administrative Law JudgeMust file within 15 days of receipt of the rulingMust state the reasons why the publisher feels the ruling is incorrect
26Nuts and Bolts of Periodicals Paying Postage While Pending Postage must be paid through an advance deposit account at or before the time of mailing (CAPS not available while Pending)416
27Nuts and Bolts of Periodicals New Launch Publications Apply prior to meeting circulation standardsPublication’s circulation must be declared within 15 monthsMust have a updated business planPay applicable rates while pendingReceive all other benefits of PeriodicalsComplete application on issue you think will qualify
29Nuts and Bolts of Periodicals Question 1True or FalseA circulation review will encompass only the copies of a publication that are distributed by the mail.
30Nuts and Bolts of Periodicals Question 1True or FalseA circulation review will encompass only the copies of a publication that are distributed by the mail.Answer - FALSEGenerally, there are 3 reasons the Postal Service would perform a review of a publication’s circulation.When a publisher first applies for Periodicals mailing privileges for a publication.Periodic reviews of a publication’s continued eligibilityLastly, to change qualification category, for example from requester to general.
31Nuts and Bolts of Periodicals Question 2True or FalseOnce approved, a publisher no longer has to maintain the publication’s circulation records needed to prove eligibility.
32Nuts and Bolts of Periodicals Question 2True or FalseOnce approved, a publisher no longer has to maintain the publication’s circulation records needed to prove eligibility.Answer - FALSE
33Nuts and Bolts of Periodicals Question 3True or FalseA review of circulation is generally performed when the paid or requested circulation is under 60 percent.
34Nuts and Bolts of Periodicals Question 3True or FalseA review of circulation is generally performed when the paid or requested circulation is under 60 percent.Answer - TRUE
35Nuts and Bolts of Periodicals Thank You!Nuts and Bolts of PeriodicalsDennis Farley ESPN&Chuck Tricamo USPS