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22 April 2010 PB and comments on recent label changes

This issue of the PB doesn’t appear to have anything that will affect Presort. The only DMM revision is about scheduled pickup on demand, which will be interesting if that’s something that affects you but it’s not going to affect how Presort operates.

Now regarding the labeling list changes from the last issue – there were changes to L009, in particular, that seem like they could negatively affect a large number of mailers. You are likely to see an impact if you claim some types of destination entry, for example for standard mail auto flats, at affected facilities. Here’s what happened and how it may affect some mailing discounts.

The changes for L009 (Mixed ADCs) deleted a number of facilities from its list, essentially collapsing them into more central facilities. The most dramatic example is for Denver, where the ZIPs for the ASFs around Denver were all put into the Denver facility range. How does this affect drop ship discounts? Good question!

As one example, imagine that you are drop shipping STD (auto) flats to ASF Salt Lake City, UT. In the description of preparation for ASF pallets of bundles, sacks or trays in 705.8.10.3(f) it says you may place mixed ADC bundles and sacks of flats on this ASF pallet , BUT all the pieces in the bundle or sack must be destined for inside the facility AND the label-to ZIP must be within the facility. Wanting to get DNDC price on the pieces going here, you prepare mail for this entry point using the eligibility exhibit 3.1 in DMM 346, which lists ZIP ranges for Salt Lake City (which may or may not match what FAST thinks should go there, but that’s a different topic!).

So suppose you end up with a mixed ADC bundle for Salt Lake City, let’s say the pieces are in ZIPs 832-834 just to be concrete. According to the language in 705, you label this based on L010. But the text on the L010 table says for STD auto flats you should use – did you see this coming? – L009! Where are those ZIPs in L009? They’re now labeled to Denver, after the recent label list changes. So where does this mixed ADC package belong? And where is it going to get DNDC price??

Well, all the pieces are destined for the Salt Lake City area as defined by the eligibility table, so it appears that’s the only possible place to get DNDC, but now the bundle is going to be labeled with L009 as going to Denver 840. Since that ZIP is outside the Salt Lake City area, it appears it’s not eligible there. So what about putting it on a Denver NDC pallet, since that’s where it’s labeled? Well, no, that doesn’t seem to work, either, since the pieces in the bundle are not destined for the Denver area as defined in the exhibit AND this bundle would get labeled using L004 to Boise, ID, according to 705.8.10.3(g). So it appears this bundle just can’t get DNDC price anymore, no matter where you take it, so why wouldn’t you just enter it locally?

We have raised this issue with the USPS, and they have acknowledged this “will take some disentangling.” But no word yet when that will occur. Meanwhile, there’s that date of June 17 coming when mailings will need to be using those changes. Could be interesting!

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