POSTAL SERVICE

**International Commercial Pricing Incentives**

**AGENCY:** Postal Service™.

**ACTION:** Final rule.

**SUMMARY:** The Postal Service is revising Mailing Standards of the
United States Postal Service, International Mail Manual (IMM) to
reflect the addition of commercial base pricing and commercial volume
pricing incentives for Express Mail International^®^ and Priority Mail
International^®^.

**EFFECTIVE DATE:** May 12, 2008.

**FOR FURTHER INFORMATION CONTACT:** Obataiye Akinwole at 703-292-5260
or Christy Bonning at 202-268-2108.

**SUPPLEMENTARY INFORMATION:** The Postal Accountability and Enhancement
Act (Postal Act of 2006) gives the Postal Service increased flexibility
in pricing, product enhancements, and product introductions. Described
here are the price incentives and changes in international mailing
standards.

-   Express Mail International

Commercial base postage prices will be 8 percent below retail prices for
customers using USPS--provided Global Shipping Software (GSS) with a
manifested permit imprint mailing paid through an advance deposit
account or Express Mail Corporate Account (EMCA).

Those who qualify for the commercial base prices by paying for postage
through their EMCA, and whose Express Mail International volume or
postage exceeds minimum thresholds, will be eligible for commercial
volume price incentives.

Also, customers who mail more than 5,000 Express Mail International
pieces a year may be eligible for customized agreements for commercial
volume price incentives.

The current price incentives for payment of postage online for Express
Mail International will not change.

-   Priority Mail International

Commercial base postage prices will be 5 percent below retail prices for
customers using a permit imprint and USPS--provided Global Shipping
Software (GSS).

Customers who mail more than 5,000 Priority Mail International pieces a
year may be eligible for customized agreements for commercial volume
price incentives.

The current price incentives for payment of postage online for Priority
Mail International will not change.

The Postal Service adopts the following changes to *Mailing Standards of
the United States Postal Service*, International Mail Manual (IMM),
incorporated by reference in the *Code of Federal Regulations*. See 39
CFR 20.

**List of Subjects in 39 CFR Part 20**

Foreign relations, International postal services.

Accordingly, 39 CFR Part 20 is amended as follows:

**PART 20 -- \[AMENDED\]**

1\. The authority citation for 39 CFR Part 20 continues to read as
follows:

Authority:  5 U.S.C. 552(a); 39 U.S.C. 401, 404, 407, 408, 3622, 3632,
and 3633.

2\. Revise the following sections of *Mailing Standards of the United
States Postal Service*, International Mail Manual (IMM) as follows:

**\* \* \* \* \***

**2 Conditions for Mailing**

**\* \* \* \* \***

*\[Revise 220 by changing the word "rate(s)" to "price(s). Exception: Do
not change flat-rate box(es) or flat-rate envelope(s). Also change the
word "discount(s)" to "incentive(s)".\]*

**220 Express Mail International**

**\* \* \* \* \***

**222 Postage**

**\* \* \* \* \***

*\[Renumber current 222.12 and 222.13 as 222.13 and 222.14. Add new
222.12 and 222.121 as follows:\]*

**222.12 Permit Imprint**

Payment for Express Mail International by permit imprint through an
advance deposit account is allowed only when guidelines for commercial
base price incentives (see 222.121) are followed.

**222.121 Permit Imprint - Commercial Base Prices**

Express Mail International commercial base postage prices will be 8
percent

below retail prices for all postage paid with permit imprint. The
commercial base price incentive applies only to the postage portion of
Express Mail International prices. It does not apply to any other
charges or fees, such as Pickup on Demand service, additional
merchandise insurance coverage, or shipments made under a customized
agreement.

To receive this commercial base price incentive, customers must:

a.  Use USPS--provided Global Shipping Software (GSS), and

b.  Pay for postage with a permit imprint through an advance deposit
    account or an Express Mail Corporate Account (see 222.13), and

c.  Meet manifesting and permit imprint requirements.

d.  

Postage paid with permit imprint is subject to the general conditions in
IMM 152.3 and DMM 124, 604, and 705. Express Mail International using a
permit imprint does not qualify for existing service and postage
guarantees. Customers who mail more than 5,000 Express Mail
International pieces a year should contact the Postal Service to discuss
customized agreements for commercial volume price incentives (see 297).

*\[Revise heading and text of renumbered 222.13 as follows:\]*

**222.13 Express Mail Corporate Account**

A written application is required prior to mailing with an Express Mail
corporate account (see DMM 114).

**222.131 Express Mail Corporate Account - Commercial Prices**

Express Mail International commercial prices will be 8 percent, 10
percent, or 12 percent below retail prices for postage paid directly
through an Express Mail corporate account (EMCA) as shown in Exhibit
222.131. There is no minimum volume requirement to receive the 8 percent
incentive. The commercial base price incentive and the commercial volume
price incentives apply only to the postage portion of Express Mail
International prices. They do not apply to any other charges or fees,
such as Pickup on Demand service, additional merchandise insurance
coverage, or shipments made under a customized agreement. To receive
commercial price incentives on postage, customers must use
USPS--provided Global Shipping Software (GSS). Incentives will be
applied to each mailing. See 222.132.

*\[Add new Exhibit 222.131 as follows:\]*

**Exhibit 222.131**

Express Mail Corporate Account Volume/Revenue Requirements

+----------------------+------------------+-------------+-------------+
| Annual Volume or     |                  | Commercial  | Commercial  |
|                      |                  | Base Price  | Volume      |
| Annual Postage       |                  | Incentive   | Price       |
|                      |                  |             | Incentive   |
+----------------------+------------------+-------------+-------------+
| No minimum           | No minimum       | 8%          |             |
+----------------------+------------------+-------------+-------------+
| 1,000--2,999 pieces  | \$               |             | 10%         |
|                      | 20,000--\$59,999 |             |             |
+----------------------+------------------+-------------+-------------+
| 3,000 pieces and     | \$60,000 and     |             | 12%         |
| above                | above            |             |             |
+----------------------+------------------+-------------+-------------+

*\[Add new 222.132 as follows:\]*

**222.132** **Application of Commercial Volume Price Incentive**

A customer will receive an incentive of 8 percent during the first
postal quarter of the initial mailing and through the subsequent full
postal quarter. Thereafter, the incentive for each postal quarter will
be determined by the actual annualized volume of Express Mail
International mailed in the previous full postal quarter or the actual
annualized amount of postage paid for Express Mail International in the
previous full postal quarter, whichever is higher.

**222.14 Online Prices -- General**

\* \* \* \* \*

*\[Revise header of 222.141 as follows:\]*

**222.141 Eligibility for Online Prices**

**\* \* \* \* \***

*\[Revise header of 222.142 as follows:\]*

**222.142 Online Prices**

*\[Delete the last sentence in the paragraph and replace as follows:\]*

\*\*\* It does not apply to any other charges or fees, such as Pickup on
Demand service, additional merchandise insurance coverage, or shipments
made under a customized agreement.

**222.2 Payment of Postage**

**222.21 Methods of Payment**

*\[Revise the text in 222.21 as follows:\]*

Express Mail International may be paid by postage stamps, postage
validation imprinter (PVI) labels, postage meter stamps,
information-based indicia (IBI), PC Postage, through the use of an
Express Mail corporate account, or with permit imprint under 222.12.

*\[Delete 222.22 in its entirety.\]*

**\* \* \* \* \***

**230 Priority Mail International**

**\* \* \* \* \***

*\[Revise 234 by changing the word "rate(s)" to "price(s). Exception: Do
not change flat-rate box(es) or flat-rate envelope(s). Also change the
word "discount(s)" to "incentive(s)".\]*

**234 Priority Mail International Parcels**

**\* \* \* \* \***

*\[Delete 234.7.\]*

*\[Renumber current sections 235 and 236 as 236 and 237 respectively.
Add new section 235 as follows:\]*

**235 Postage**

**235.1 Payment of Postage**

**235.11 Methods of Payment**

Priority Mail International may be paid by postage stamps, postage
validation imprinter (PVI) labels, postage meter stamps,
information-based indicia (IBI), PC Postage, or permit imprint.

**235.2 Prices**

**235.21 Permit Imprint - Commercial Base Prices**

Priority Mail International commercial base prices for postage paid with
permit imprint will be 5 percent below retail prices. The commercial
base price incentive applies only to the postage portion of Priority
Mail International prices. It does not apply to any other charges or
fees, such as Pickup on Demand service, insured fees, or shipments made
under a customized agreement. To receive the commercial base price
incentive on postage, customers must use USPS--provided Global Shipping
Software (GSS). Postage paid with permit imprint is subject to the
general conditions in IMM 152.3 and DMM 124, 604, and 705. Customers who
mail more than 5,000 Priority Mail International pieces a year should
contact the Postal Service to discuss customized agreements for
commercial volume price incentives (see 297).

**235.22 Online Prices**

Transactions for Priority Mail International conducted on Click-N-Ship
or through

an authorized PC Postage vendor will be 5 percent below retail prices.
The incentive applies only to the postage portion of Priority Mail
International prices. It does not apply to any other charges or fees,
such as Pickup on Demand service, insured fees, or shipments made under
a customized agreement.

**\* \* \* \* \***

**290 Commercial Services**

**\* \* \* \* \***

*\[Revise 293 by changing the word "rate(s)" to "price(s). Exception: Do
not change flat-rate box(es) or flat-rate envelope(s). Also change the
word "discount(s)" to "incentive(s)".\]*

**293 International Surface Air Lift (ISAL) Service**

**\* \* \* \* \***

**293.2 Qualifying Mail and Minimum Quantity Requirements**

*\[Revise the second sentence of 293.2 as follows:\]*

\*\*\*There is a minimum volume requirement of 50 pounds per
mailing.\*\*\*

*\[Revise the last sentence in 293.2 by removing the words "Direct
Shipment"\]*

**\* \* \* \* \***

**293.7 Postage**

**293.71 Prices**

*\[Revise tables in 293.71 as follows:\]*

Exhibit 293.71a **International Surface Airlift (ISAL)**

*\[Insert new price table.\]*

Exhibit 293.71b **International Surface Air Lift M-Bag -- Full Service**

*\[Insert new price table.\]*

Exhibit 293.71c **International Surface Air Lift M- Bag -- ISC Drop
Shipment**

*\[Insert new price table.\]*

*\[Rename and renumber current Exhibit 293.71 as follows:\]*

Exhibit 293.71d (Sheet 1 of 3) **International Surface Air Lift Service
Network Countries and Prices**

**\* \* \* \* \***

*\[Rename "Rate Group" column as "Price Group".\]*

**\* \* \* \* \***

*\[Revise the text of 293.73 as follows:\]*

**293.73 Direct Shipment Prices**

Direct shipment prices are available only through a customized agreement
(see 297).

**\* \* \* \* \***

*\[Revise section 297 as follows:\]*

**297 Customized Agreements**

**297.1 Description**

The Postal Service provides customized service for international
mailings only for customers pursuant to the terms and conditions
stipulated in a customized agreement between the Postal Service and a
particular customer.

2.  **Qualifying Mailers**

To qualify for customized service, a mailer must be capable, on an
annualized basis, of either tendering at least 5,000 pieces of
international mail to the Postal Service or paying at least \$100,000 in
international postage to the Postal Service.

**297.3 Criteria**

Each customized agreement for international mailings must set forth the
following:

a\. The type of mail to be tendered by the mailer.

> b\. The term of the agreement.

c\. Weight and size limits.

d\. Preparation requirements.

e\. Makeup requirements.

> f\. The services to be provided by the Postal Service.
>
> g\. Minimum volume or postage commitment on the part of the mailer.

h\. Postage and method of payment.

> i\. The location at which the mailer is required to tender its items
> to the Postal Service.
>
> j\. Any other obligations of either party.

*\[Delete 297.4\]*

**\*** \* \* \* \*

Neva R. Watson,

*Attorney, Legislative.*

\[END DOCUMENT\]