National Etailing and Mailing Organization of America
NEMOA | News Detail
PRC Rules on CPI-Capped Postal Rate Hike (No Ruling on Exigent Increase Yet)
Today, the Postal Regulatory Commission determined that the rates proposed by the USPS (averaging 1.6%) are consistent with the law, provided that the Postal Service does not implement Full Service IMb requirements concurrently with the proposed increased rates. (Note: The USPS proposed its 4.3% exigent postage increase in a separate filing. A decision on exigency will be rendered by the PRC soon.)


Today, the Postal Regulatory Commission determined that the rates proposed by the USPS (averaging 1.6%) are consistent with the law, provided that the Postal Service does not implement Full Service IMb requirements concurrently with the proposed increased rates. (Note: The USPS proposed its 4.3% exigent postage increase in a separate filing. A decision on exigency will be rendered by the PRC soon.)

Full Service IMb requires each piece of mail, each bundle, and each pallet to have a unique identity barcode. The PRC determined that Full Service IMb mail prep requirements are a classification change and that its effects must be included in its calculation of the percentage change in rates.

Concurrent implementation of the proposed rate adjustments and the Full Service IMb requirements would result in increases in First-Class Mail, Standard Mail, and Periodicals that exceed the statutory Consumer Price Index price cap, currently at 1.696%.
“While we encourage the Postal Service to expand its capacity to track and measure the performance of mail services, this cannot be accomplished in a manner that effectively raises rates by 4.1% and 4.9% for First Class and Standard Mail," said Chairman Ruth Goldway in a statement.

USPS Must Resolve SM 5-Digit Discounts
Additionally, the PRC found that the Postal Service must resolve unequal commercial and nonprofit discounts for Standard Mail 5-digit automation flats. The proposed rates violate the requirement that disparities between commercial and nonprofit discounts must be justified by a statutory exception.

The Postal Service may implement the proposed rate adjustments, minus the Full Service IMb requirements, effective January 26, 2014. Alternatively, the Postal Service may adjust its proposed rates for First-Class Mail, Standard Mail, and Periodicals rates in a manner comparable to the implementation of Full Service IMb requirements in Package Services and file amended rates. The USPS must notify the PRC of its intentions and provide necessary supporting documents by November 27th.




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About ACMA
ACMA is a Washington-based not-for-profit organization specifically created to advocate for the unique collective interests of catalog mailers in regulatory, public and administrative matters where the shared impact transcends individual company interests. The only catalog owned and controlled trade group focused solely on the business interests of catalogers and their supply chain, ACMA participates in rulemaking and other proceedings of significance where a single collective voice increases influence and effectiveness. Membership is open to any party with direct interests in the catalog industry. More information can be found at www.catalogmailers.org.http://www.catalogmailers.org


Published: 11/21/13