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Federal Register / Vol. 86, No. 235 / Friday, December 10, 2021 / Rules and Regulations Comment: One commenter opposed the proposal, characterizing it as a price increase unsupported by data, analysis, or fiscal studies that would assess its effects.
USPS Response: The Postal Service believes this comment misunderstands the proposal. The Postal Service was not proposing a price increase, which in any event would have to be brought as a price case before the Postal Regulatory Commission, not a change to the Domestic Mail Manual. Rather, the Postal Service proposed an alternative method of assigning non-Periodicals prices to mailings while a mailers application for Periodicals mailing privileges is pending.
Mailers seeking Periodicals mailing privileges must submit an application for approval, together with appropriate fees and supporting information to demonstrate eligibility DMM 207.4.1
207.4.2; 207.4.13; 207.5.1.1207.5.1.10;
207.10.7.1207.10.7.3. While this application is pending, a mailer may prepare its mailing as Periodicals and make use of all available dropshipping and pre-sorting options available for Periodicals, but the mailing is not eligible for Periodicals prices.
As such, the mailer must provide two postage statements with each mailing, a Periodicals postage statement and a postage statement for the nonPeriodicals price most closely applicable to the mailing DMM
207.17.2.5. The process is automated, however, and a mailer that has an account with the Postal Service need
only enter a Periodicals postage statement into the Postal Service computer systems, which then automatically generate the nonPeriodicals postage statement and calculate the closest applicable nonPeriodicals prices. It is the methodology its computer systems use to assign nonPeriodicals prices that the Postal Service proposed to revise because the current methodology is unwieldy and limited.
On the one hand, maintaining the underlying mapping between Periodicals and non-Periodicals prices is labor intensive. There are hundreds of possible rate cells to map between Periodicals prices and possible nonPeriodicals prices. The price for out-ofcounty Periodicals, for example, includes a per-pound price for the percentage of advertising space; a perpound price for the percentage of nonadvertising space; a per-piece price that varies by shape i.e., letters, flats, or parcels, sorting level e.g., CR, 5-Digit, 3-Digit, ADC, etc., and machinability;
and a per-bundle or per container price, the latter of which varies by dropship level Notice 123, August 29, 2021.
On the other hand, and more importantly, the current methodology does not provide exact pricing. In some cases, for example, a mailing might receive a non-Periodical rate that most closely matches by size, weight, and shape but for which the mailing nevertheless does not qualify because it does not meet volume requirements.
The minimum volume requirement for a
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mailing pre-sorted to ADC, 3-Digit, or 5Digit, for example, is 6 pieces for Periodicals and 10 pieces for Marketing Mail, the most closely analogous price.
Pending Periodicals mailings between 6
and 9 pieces receive the Marketing Mail price even though those mailings do not qualify for that price.
In other cases, an equivalent appropriate rate simply may not exist.
For example, an out-of-county Periodical mailing will pay one price, an identical in-county Periodical mailing will pay a different and lower price, id., but no other mail product makes an equivalent in-county/outsidecounty pricing distinction. Thus, the most closely applicable price to charge pending in-county Periodicals as opposed to pending outside-county Periodicals is unclear.
Accordingly, in the September 30
NPRM, the Postal Service proposed a simplified way to charge current nonPeriodical rates for Periodicals mailings while a mailers application for Periodicals privileges is pending.
Mailers pay non-Periodical rates based upon commonalities of size, shape, and weight between the Periodicals mailed and other products. Table 1, an expanded version of DMM Exhibit 5.2.3, sets out possible Periodical types, corresponding non-Periodicals products, the reason for the association, the relevant average per-piece prices, and the non-Periodicals price to be paid, expressed as a percentage to be added to the Periodicals prices.

TABLE 1PENDING PERIODICALS AND ASSOCIATED RATES
Average periodicals price 1

%
Difference
Associated class/subclass
Reason for associated class/subclass
Periodicals Flats

Marketing Mail Flats 2

Meets Flat Dimension Requirement up to 15.99 ozs.
Meets Letter Dimension Requirement up to 15.99 ozs.
Eligible for both Periodicals Nonprofit & Marketing Nonprofit & Meets Flat Dimension Requirement up to 15.99 ozs.
Eligible for both Periodicals Nonprofit & Marketing Nonprofit & Meets Letter Dimension Requirement up to 15.99 ozs.
Minimum of 200 pcs or 50 lbs. Parcels under 1 pound.
Bound Publication with weight 1 lb & over 34
inch thick.
Bound Publication with weight 1 lb & Meets Flat Dimension Requirement.
Mailing less than 200 pieces Meets Letter Dimension Requirement.
Mailing less than 200 pieces & Meets Flat Dimension Requirement.
Mailing less than 200 pieces & Meets Flat Dimension Requirement.
Unbound Publication and exceeds 34 thick or weighs over 15.99 ozs.
Commercial Parcels weighs under 1 pound

$0.542

$0.333

63

0.258

0.295

0

0.328

0.234

40

0.131

0.292

0

1.724

0.730

136

1.190

1.210

0

0.820

0.333

146

0.575

0.295

95

1.754

0.333

427

4.970

1.210

311

8.290

1.210

585

7.810

1.210

545

Commercial Parcels weighs over 1 pound but under 2 pounds.

8.580

1.210

609

Letters 2

Periodicals Letters

Marketing Mail
Periodicals NP Flats

Marketing Mail NP Flats 2

Periodicals NP Letters

Marketing Mail NP Letters 2

Periodicals NP Parcels

Marketing Mail NP Parcels 2

Periodicals Parcels

Bound Printed Matter Parcels 3

Periodicals Flats

Bound Printed Matter Flats 3

Periodicals Letters

Periodicals Parcels

First Class LettersSingle Piece 4.
First Class FlatsSingle Piece 4.
First Class ParcelsRetail 4

Periodicals Parcels

Parcel Select 5

Periodicals Parcels

Priority Mail Commercial Parcels 6.
Priority Mail Commercial Parcels 6.

Periodicals Flats
jspears on DSK121TN23PROD with RULES1

Average price for associated class/subclass
Periodical
Periodicals Parcels

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