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

 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 America Is Growing & On the Move

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

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

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?

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?

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?

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

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)

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

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)

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.

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

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.

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)

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

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)

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

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)

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

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

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

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.

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.

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.

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 LACS Link®, Address Element Correction (AEC), AEC II ®, and the Electronic Unresolved Address Reporting System (eUARS).

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.

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.

Nondelivery Codes Attempted—Not KnownDelivery attempted, addressee not known at place of address. IllegibleAddress not readable. In Disput returned to sender by order of chief field counsel because of dispute about right to delivery of mail and cannot be determined which disputing party has better right to mail. Insufficient AddressMail without number, street, box number, route number, or geographical section of city or city and state omitted and correct address not known. No Mail ReceptacleAddressee failed to provide a receptacle for receipt of mail. No Such NumberAddressed to nonexistent number and correct number not known. No Such Office in StateAddressed to nonexistent Post Office™ (X) No Such StreetAddressed to nonexistent street and correct street not known. Not Deliverable as Addressed—Unable to Forward Mail undeliverable at address given; no change-of-address order on file; forwarding order expired. (Q) Outside Delivery LimitsAddressed to location outside delivery limits of Post Office of address. Hold mail for out-of-bounds customers in general delivery for specified period unless addressee filed order. RefusedAddressee refused to accept mail or pay postage charges on it Returned for Better Address Mail of local origin incompletely addressed for distribution or delivery. Temporarily AwayAddressee temporarily away and period for holding mail expired (W) UnclaimedAddressee abandoned or failed to call for mail. VacantHouse, apartment, office, or building not occupied. (Use only if mail addressed "Occupant.")

Undeliverable, but not a nixie ACS™ record

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

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

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.

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.

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.

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.

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

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