2222.2 REV-2

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CHAPTER 8. PRINTER/MAILER CONTRACTOR REQUIREMENTS

8-1. Mailings Entering Into the U.S. Postal Service Mailstream. All

Headquarters and Field organizations which engage contractors to

perform either directly or through mailing services which enter

into the U.S. Postal Service mailstream must license each

contractor before they can enter these mailings.

8-2. Basic Requirements.

a\. A separate Application to Mail Without Affixing Postage Stamps,

PS Form-3601, must be submitted for each contractor. (See

Appendix 11.)

b\. The method of mailing must be:

\(1\) Permit Imprint

\(2\) Third-Class Bulk Rate Permit

\(3\) The Postage Meter

c\. Mailing contractors and the points of entry through which they

will mail must be fully identified on PS Form-3601. Mail not

properly prepared by the contractor may be refused by the

receiving Post Office. Also, contractors not properly

identified to the USPS through proper application shall not

be able to enter material into the USPS mailstream.

8-3. Permits, Fees, and Documentation.

a\. Permit Imprint. The Department must pay an annual fee of \$50

once each fiscal year for each Post Office where mail is entered

under permit imprint procedures by contractor(s) performing

mailing services for HUD. An application PS Form-3601 is

required to identify each mail drop point. (See paragraph 8-6

for authorized permits.) No other fee for use of permit imprint

has to be paid as long as the permit is active.

b\. A PS Form-3602, Statement of Mailing with Permit Imprints, must

be completely filled out and prepared in triplicate by the

contractor for each mailing and presented to the USPS along

with the mailing. The USPS accepting employee, after

verification, will sign the PS Form-3602 and return copies

to the contractor. (See Appendix 12.)

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8-1 7/86

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2222.2 REV-2

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8-4. Application for Permits.

a\. Applications for permits to authorize contractors to use HUD

official permit imprint(s) will be executed in conformance

with Appendix 11. When the PS Form-3601, Application to Mail

Without Affixing Postage Stamps, is being prepared and the

entry post office is not known in time for an advance

submission, Headquarters and Field Office mail coordinators

are responsible for providing two copies of the completed

forms to the contractor for submission at the time of mailing.

b\. Fees for contractor permits shall be included as part of the

formal year-end postal accountability documentation by the

Mail Management Officer, ASB. (Note: When an application is

submitted by a Headquarters or Field Office and it is approved

for a certain class of mail and the organization did not use it,

the Mail Management Officer, ASB, must be notified in order to

avoid an overpayment to the USPS.)

8-5. Preparation of Permit Imprints. The Departmental permit imprints

have been designed and approved by the U.S. Postal Service. No

other forms of imprints may be used in lieu of the imprints as

exhibited in paragraph 8-6. The entire imprint must be legible

and printed in the upper right corner of the address side and

parallel with the length of the mailing piece.

8-6. Contents of Permit Imprints. The Department\'s permit imprints

must show class of mail being utilized, postage and fees paid,

Departmental abbreviation and the authorized permit number, as

follows:

First-Class Mail Presorted

Postage & Fees Paid First-Class Mail

HUD Postage & Fees Paid

Permit No. G-51 HUD

Permit No. G-51

Third-Class Mail Bulk Rate

Postage & Fees Paid Postage & Fees Paid

HUD HUD

Permit No. G-51 Permit No. G-51

Fourth-Class Mail

Postage & Fees Paid

HUD

Permit No. G-51

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7/86 8-2

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2222.2 REV-2

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8-7. Mailing with Permit Imprints.

a\. Minimum Quantities. Except as stated in paragraph 8-7b below

minimum quantities required to be mailed at one time are as

follows:

\(1\) First-Class Mail - 200 pieces or 50 pounds.

\(2\) First-Class Presort Rate - 500 pieces identical in size

and weight.

\(3\) Third-Class Bulk Mail - 200 pieces or 50 pounds of mail

presorted to 5-digit destinations.

\(4\) Fourth-Class Mail - Bulk fourth-class zone rates are

applied to mailings of at least 300 pieces or 2,000 pounds

of fourth class mail identical in weight.

\(5\) Special Fourth-Class Presort Rate - 500 or more pieces

presented in full sacks destined for 5-digit Zip Code

locations for the Level A rate. For the Level B rate

a mailing must consist of a minimum of 500 sackable

pieces presorted to bulk mail centers.

\(6\) International Mail - 200 pieces of identical matter.

b\. Exceptions to Minimum Quantities. When mailing consist of less

than the required minimum, enter an explanation on the Statement

of Mailing with Permit Imprints, Form PS-3602. Exceptions may be

made for the following only:

\(1\) First-Class Mail - Occasional exception for a contractor

whose total daily mailings are not much more than 200 but

who, to cooperate with the Post Office, presents a portion

of his/her mailings early in the day.

\(2\) All Classes of Mail - When a large mailing extends over

two or more consecutive days and the last deposit made to

complete the mailing is less than the minimum.

c\. Preparation for Mailings. The Contractor(s) must arrange all

pieces with the address side facing the same way. It is

recommended that the mailer separate the pieces to the finest

extent possible. Each class of mail must be separately

presented with a separate Form PS-3602, Mailing Statement or

Form PS-3605, Statement of Mailing - Bulk Zone Rates.

d\. Place of Mailing. Deposit mail at the Post Office designated

on the PS Form 3601 or at a station or branch of that Post

Office designated by the Postmaster.

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8-3 7/86

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2222.2 REV-2

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e\. Mailing Statement. Contractors who perform mailing services for

HUD must prepare and sign a Form PS-3602 for each mailing. The

form must be prepared by typewriter, ink or indelible pencil to

show the mailer\'s address, HUD permit imprint number, class of

mail, number of pieces in the mailing and weight of a single

piece. The Contractor shall present Form PS-3602 in triplicate

which will be initialed by the accepting USPS employee, after

verification, and returned to the mailer. The contractor shall

keep one copy and forward a copy to the responsible HUD program

office.

8-8. Presorted Mail

a\. First-Class. Two presort rates are available for First-Class

mail. Mailings made at presort discount rates must be paid only

by postage meter stamps or HUD\'s permit imprint. A Form PS-3602

must be submitted with each mailing. No other form is

acceptable. The two discount rates are as follows (See

Appendix 12):

\(1\) Presort First-Class - The Presort First-Class rate is the

full First-Class rate less four cents for each letter and

two cents for each card that is part of any group of 10 or

more pieces sorted to the same 5-digit ZIP Code or 50 or

more pieces sorted to the same 3-digit ZIP Code prefix

when they are part of a single mailing of not less than

500 pieces. Full First-Class postage must be paid on the

residue not sorted to 5 or 3 digit groups. Identifying

words \"Presorted First-Class\" must be printed or stamped

by the mailer on each piece above the address and

immediately below or to the left of the permit imprint or

meter stamp.

\(2\) Carrier Route First-Class - The Carrier Route First-Class

rate is the full First-Class rate less five cents for each

letter and three cents for each card that is part of a

mailing of 500 or more pieces presorted to carrier route.

The appropriate Presort rate or full First-Class postage

must be paid on pieces not sorted in groups of 10 or more

to carrier routes, rural routes, highway contract routes,

box sections or general delivery units. Instructions on

proper preparation may be received from a Postal Service

Customer Service Representative. Identifying words

\"First-Class Carrier Route Presort\" must be printed or

stamped by the mailer on each piece above the address and

immediately below or to the left of the permit imprint or

meter stamp.

b\. Third-Class Mail. Consists of mailable matter which is not

mailed or required to be mailed as First-Class mail, not entered

as Second-Class mail and weighs less than 16 ounces. Two

Third-Class rates are available.

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7/86 8-4

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2222.2 REV-2

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\(1\) Single Rate - The single piece rate is applied to each

piece according to its weight. No presort or special

preparation is required. Pieces should be endorsed

\"Third-Class.\" (See Appendix 15.)

\(2\) Regular Bulk Rate - The Regular Bulk Third-Class rates may

be applied to mailings of qualifying pieces separately

addressed to different addresses in quantities of not

less than 200 pieces or 50 pounds. For the Basic Rate,

postage is computed at 38 cents per pound on the entire

bulk mailed at one time but in no case shall less than

12.5 cents minimum charge per piece be paid. All pieces

in a bulk mailing must qualify for the same rate, i.e.,

either the pound rate or the minimum per piece rate.

In addition to the Basic Rate, two discount rates are

available for eligible mailings:

\(a\) Five-Digit Presort - Each mailing must consist of at

least 200 pieces or 50 pounds presorted to 5-digit

destinations and each piece must be part of a group

of 10 or more pieces sorted and sacked to the same

5-digit Zip Code.

\(b\) Carrier Route Presort - Each mailing must consist of

at least 200 pieces or 50 pounds presorted to carrier

routes and must be part of a group of 10 or more pieces

sorted to the same carrier route.

\(c\) Official mail sent out under Third-Class rates must

be presorted and meet preparation requirements of the

U.S. Postal Service. The address side of each piece,

or its envelope or wrapper must be plainly marked

THIRD-CLASS BULK RATE or CARRIER ROUTE PRESORT

preferably in a position beneath the Postage and Fees

indicia and above the address. Instructions on proper

preparation may be received from the local U.S. Postal

Service Customer Service Representative. (See

Appendix 16.)

\(d\) If Third-Class Bulk mail is not properly prepared, the

mailing will not be accepted for processing.

Contractors mailing under permit imprint format must

meet all requirements for that method including minimum

volume (generally 200 pieces or 50 pounds), identical

pieces and proper class endorsement. When these

requirements cannot be met, contractors must use

penalty mail meters or stamps or must prepay using

standard prepayment mailing procedures.

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8-5 7/86

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2222.2 REV-2

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\(e\) Third-Class Bulk Rate mail must be presented for

mailing at a designated post office. It may not

be deposited in a street letter box. A Form PS-3602

must be completed by HUD or contractor and presented

to the post office at the time of mailing. No other

form is acceptable in lieu of a Form PS-3602. For

5-Digit Presort or Carrier Route Presort mailings,

the Form PS-3602 must be accompanied by a listing

that will reflect the number of qualifying and

residual pieces mailed to each 5-digit ZIP Code area

and the mailings must be physically separated when

presented for mailing.

\(f\) The following items must be completed on the Form

PS-3602 (See Appendix 14):

1 Permit Number - Agency assigned \"G\" number

2 Post Office of Mailing and Date mailed

3 Designation of rate subclass, i.e., carrier route,

5-digit presort or regular bulk-rate

4 The weight of a single piece indicated in ounces

and carried five places to the right of the

decimal point. Examples:

1 Oz. to be written as 1.00000

2/3 Oz. \" \" \" \" .66667

5 Total number of pieces and weight in mailing

6 Name, address and telephone number of permit

holder - (HUD\'s contractor)

7 Name and address of individual or organization for

which mailing is prepared - (HUD Program Office)

8 Postage Computation

9 Total Postage

10 Signature and telephone number of permit holder

(HUD\'s contractor)

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7/86 8-6