New Postal Rates and Fees
Effective January 1, 1995

Domestic Rates and Fees
The Governors of the Postal Service have acted on recommendations from the 
Postal Rate Commission to change domestic rates and fees for various classes 
and services. The Board of Governors has directed that these changes be 
implemented at 12:01 a.m. on Sunday, January 1, 1995 This special Postal 
Bulletin contains these new domestic postal rates and fees, along with copies 
of the revised mailing statements. Changes in this Bulletin revising the 
Domestic Mail Manual (DMM) will be incorporated into DMM Issue 48, effective 
January 1, 1995.



Distributions
This Bulletin will receive standard distribution with additional bulk 
shipments to area and district offices for distribution to post offices and 
customers, based on quantities previously requested from Mailing Standards. 
An automatic distribution will be made of the revised mailing statements 
reproduced in this Bulletin (see "Distribution and Requisition" on page 3). A 
future Bulletin will announce when Notice 123, Ratefold (see page 5), will be 
available at the materiel distribution centers (MDCs).

International Rates and Fees
Certain international special services fees and other charges published in 
this Bulletin are being increased at 12:01 a.m. on Sunday, January 1, 1995. 
All other international rates and fees remain unchanged.


General Instructions
1 Domestic Mailing Statements

Affected Forms
The following mailing statements are revised to reflect the new rates and fees:

- Form 3541-N, Statement of Mailing Second-Class Special and Classroom Rates
- Form 3541-R, Statement of Mailing Second-Class Regular and Science-of-
  Agriculture Rates
- Form 3600-PC, Statement of Mailing With Meter or Precanceled Postage 
  Affixed First-Class Mail
- Form 3600-R, Statement of Mailing With Permit Imprints First-Class Mail
- Form 3602-N, Statement of Mailing With Permit Imprints Third-Class Mail 
  (Nonprofit Rates Only)
- Form 3602-PC, Statement of Mailing With Meter or Precanceled Postage Affixed 
  Bulk Third-Class Mail (Regular or Nonprofit Rates)
- Form 3602-PVN, Plant-Verified Drop Shipment (PVDS) Consolidated Mailing 
  Statement Register Third-Class Mail (Special Rates Only: Permit Imprint)
- Form 3602-PVPC, Plant-Verified Drop Shipment (PVDS) Consolidated Mailing 
  Statement Register Third-Class Mail (Meter or Precanceled Postage Affixed 
  Bulk Third-Class Mail: Regular or Special Rates)
- Form 3602-PVR, Plant-Verified Drop Shipment (PVDS) Consolidated Mailing  
  Statement Register Third-Class Mail (Regular Rates Only: Permit Imprint)
- Form 3602-R, Statement of Mailing With Permit Imprints Third-Class Mail 
  (Regular Rates Only)
- Form 3605-PC, Statement of Mailing With Meter Postage Affixed Priority 
  Mail and Zone-Rated Fourth-Class Mail
- Form 3605-R, Statement of Mailing With Permit Imprints Priority Mail and 
  Zone-Rated Fourth-Class Mail
- Form 3608-PC, Statement of Mailing With Meter Postage Affixed Presorted 
  Special Fourth-Class Rate Mail
- Form 3608-R, Statement of Mailing With Permit Imprints Special Fourth-Class 
  and Library Rate Fourth-Class Mail

Format
There are several format changes to the mailing statement forms, including: 
(1) the permit imprint forms (N and R suffix) now include a space for the 
    Centralized Trust Account System (CTAS) identification number, changing 
    the header information on the Forms 3541; 
    
(2) the postage-affixed forms (PC suffix) now require mailers to show correct 
    (full) postage in the entries on the reverse of the form and to enter the 
    actual postage amount applied to pieces and any net due on the front.

Distribution and Requisition
There will be a limited automatic distribution of the mailing statements to 
CAG A through G offices and to the managers of business mail entry. Stocks of 
mailing statements are expected to be available at the MDCs by mid-January. 
While supply channels are being stocked, order only quantities necessary to 
meet post office needs, using Form 7380, MDC Supply Requisition. If the 
automatic distribution does not arrive by the date of rate implementation, 
copy the appropriate mailing statement in this Bulletin. Current versions of 
the mailing statements may be used for 30 days or until new forms are 
available if the current versions are modified to reflect the new rates.

2 Precanceled Stamps and Envelopes for Bulk Mailings
Precanceled stamp permit holders may have on hand precanceled 5-, 10-, and 23-
cent stamps and 11.1- and 19.8-cent precanceled envelopes when the new bulk 
and presort rates are implemented. Accept these stamps and envelopes 
indefinitely, provided that the mailer (1) pays the difference in postage 
between the amount affixed and the new rates before the mailing is accepted 
and (2) uses the stamps and envelopes for the comparable new rate category 
(see DMM P023.1).

3 Mailpieces Bearing Old Rates; Stamp Disposition

Nonprecanceled Envelopes and Cards
Envelopes or postal cards prepaid at the old rates may be revalued by affixing 
enough postage to satisfy the new rates.

Sheet Postal Cards
If a mailer has purchased large quantities of sheet postal cards for printing 
in advance of mailing, the mailer may be authorized to print this endorsement 
on the cards:  "Additional 1-cent postage paid - (City, State, ZIP Code)."  
Cards bearing this endorsement must be presented to the bulk mail acceptance 
unit of the post office of mailing so that they can be weighed to confirm the 
number of cards subject to the additional postage payment of 1 cent per piece. 
All mailings must be accompanied by Form 3600-PC, in duplicate. The weigher 
must write or handstamp "From Trust" on the front of the duplicate Form 
3600-PC in the "Additional Postage Payment" block. The verification procedures 
described in Handbook F-1, Post Office Accounting Procedures, 524, must be 
followed. Use AIC 114 (Postage Due Invoices) to account for the revenue 
collected. This procedure may be used as needed until the correctly rated 
postal cards are available.

Exchange of Stamps and Stamped Paper
Available quantities of new denomination postage stamps and postal cards are 
limited. Therefore, postmasters should urge customers to affix additional 
postage rather than to exchange stamped paper for items at the new 
denominations. Generally, follow the provisions of DMM P014. Stamps may not 
be exchanged for cash. All exchanged stock should be destroyed (see below).

Disposition of Stamps
Postmasters must not destroy postage stamps that exceed needs because of the 
rate increase until so notified in a future Postal Bulletin.

4 Meter Stamps at Old Rates

Acceptance Period
Meter permit holders may have pieces on hand that bear postage at the old 
rates. Accept these pieces for mailing for 30 calendar days following the 
effective date of new rates, provided that the mailer pays the difference 
in postage between the meter stamps affixed and the applicable new rates and 
fees (as described below) before the mailing is entered into the mailstream.

Postage Difference -  Individual Pieces
The difference in postage may be paid on individual pieces (single-piece rate, 
presort rate, or bulk rate) by affixing a meter impression or meter strip in 
the correct amount.

Postage Difference -  Bulk Pieces
The difference in postage for all pieces in a single mailing claimed at a 
presort or bulk rate may be paid by affixing postage stamps or a meter strip 
to the accompanying mailing statement in the amount of the total postage 
difference for all pieces in the mailing, rounded to the full cent. 
Acceptance personnel must verify the computations on the mailing statement to 
ensure that the proper additional postage is affixed. If the mailer uses 
postage stamps on the mailing statement, be sure to cancel the stamps. As an 
alternative to applying postage, the total difference in postage may be paid 
through an advance deposit account and reported on an additional mailing 
statement as described in Handbook F-1, 524, for 30 calendar days following 
the effective date of new rates.

Actions by Postmasters Not at Origin Office
Postmasters at offices other than the office of origin who find metered pieces 
in the mailstream either bearing the old bulk or presort rates or bearing 
precanceled postage are to assume that the difference in postage was paid at 
the time of mailing.

5 Collection of New Rates and Fees

General
The new rates and fees are to be paid when a service is provided or a fee is 
paid on or after the effective date of the new rates and fees. If payment was 
made before the effective date, there is no retroactive adjustment for a post 
office box fee, caller service fee, or any annual bulk or presort mailing fee.

P.O. Box/Caller Service Fees
Notice 32, Box Rent or Caller Service Fee Due, placed in customers' boxes 
before the effective date of the new box fees (see DMM D910.4 and D920.4), 
must be marked to show the rates payable before that date, as well as the new 
rates payable on or after the effective date of the new box fees.

Other Postage and Fees
Postage and fees are to be based on the rates and fees in effect when the 
charges are calculated (i.e., when the pieces are rated at destination) for 
merchandise return service and business reply mail. Acceptance unit employees 
are reminded to check Presorted First-Class and carrier route First-Class 
mailings to determine whether the pieces are of standard size. If the pieces 
are of a nonstandard size, collect the lower surcharge of 5 cents per piece 
before accepting the mailing. Charges for ZIP Coding of mailing lists are to 
be based on the fees in effect when the U.S. Postal Service received the 
materials for processing.

