Guide to the Centralized Postage Payment (CPP) System

for Periodicals Mail

Publication 406 October 2001

Transmittal Letter

A. Explanation. This publication provides publishers with detailed information on how to

apply for and mail under the centralized postage payment (CPP) system for Periodicals

mail.

B. Availability. This publication is available only in an electronic format as follows:

1. For Postal Service customers, it is accessible on the Internet at

http://www.usps.com (click on “Info,” then “Postal Periodicals and Publications,”

then “Publications,” and then scroll down to Publication 406).

2. For Postal Service personnel, it is accessible on the corporate intranet at

http://blue.usps.gov (click on “Information,” then “Policies and Procedures,” then

“Publications,” then either “By Document ID Number” or “By Title,” and then scroll

down to Publication 406).

C. Comments. Send comments and suggestions about the content of this handbook to the

following address:

MANAGER

BUSINESS MAIL ACCEPTANCE

US POSTAL SERVICE

1735 N LYNN ST RM 3012

ARLINGTON VA 22209-6030

D. Effective Date. This handbook is effective October 2001.

Michele Denny

Manager

Marketing Technology and Channel Management
Contents

October 2001 iii

Contents

1 Starting With the Basics 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1-1 Understanding the Centralized Postage Payment (CPP) System 1 . . . . . . . . . . . . . . . . . . . . . 

1-2 System Description and Parties Involved 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1-2.1 New York Rates and Classification Service Center (NYRCSC) 2 . . . . . . . . . . . . . . . . . . 

1-2.2 Detached Mail Unit (DMU) Serving Mailer’s Plant 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1-2.3 Destination Entry Post Office 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1-2.4 Additional Entry Post Office 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1-2.5 Original Entry Post Office 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1-3 Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1-3.1 Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1-3.2 Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1-3.3 Location of Mailer’s Plant 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1-3.4 Mailing Under the CPP System 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1-3.5 Advance Deposit Account 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1-3.6 Compliance With Applicable Requirements for Periodicals Mail 3 . . . . . . . . . . . . . . . . . . 

1-3.7 Filing PS Form 3510 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1-3.8 Edition Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1-3.9 Placement of Edition Codes 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1-3.10 Computerized Postage Statements 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

2 Application 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

2-1 Submission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2-2 Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2-3 Notification of Approval to Publisher 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

2-4 Notification of Approval to Affected Post Offices 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

2-5 Denial of Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

3 Operating Under the CPP System 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-1 Postage Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3-1.1 Postage Account Maintenance at the NYRCSC 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-1.2 Centralized Account Processing System (CAPS) 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-1.3 Single-Payment-Per-Issue Option 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-1.4 Multiple-Payments-Per-Issue Option 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-1.5 Additional Charges 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-2 Computation of Postage 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-2.1 Weights Per Copy 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-2.2 Advertising Percentage 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-2.3 Computation Standards 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Guide to the CPP System for Periodicals Mail

iv Publication 406

3-3 Documentation Required by Publisher 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-3.1 Production Documentation Requirements 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-3.2 Final Production Plan 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-3.3 Presort Documentation Requirements 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-3.4 Documentation Requirements for Automation Rate Mailings 11 . . . . . . . . . . . . . . . . . . . . 

3-4 Submitting Postage Statements 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-4.1 Postage Statements 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-4.2 Individual Postage Statements 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-4.3 Summary of Postage Statements 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-4.4 Register of Postage Statements 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-4.5 Supplemental Mailings Presented for Mailing Between Main File Mailings 14 . . . . . . . . 

3-4.6 Off-Line Mailings Presented to a Post Office 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-4.7 Submitting Postage Statements 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-4.8 When Postage Rates Change During the Mailing of an Issue 15 . . . . . . . . . . . . . . . . . . . 

3-4.9 Data Retention and Retrieval 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-4.10 Clearance Documents 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-5 Enclosures Mailed With CPP Periodicals Publications 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-5.1 Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

3-5.2 Postage Statements 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-5.3 Documentation 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-6 Reporting Requirements 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-6.1 Statement of Ownership 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-6.2 Marked-for-Advertising Copies 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-6.3 Changes in Additional Entry or Reentry 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-6.4 Changes in Mailing Locations 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-6.5 Changes to Distribution Plan 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-7 Postage Payment Reviews 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-8 Discrepancies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

3-8.1 Nonrevenue Discrepancies 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-8.2 Production Schedule Discrepancies 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-8.3 Revenue Deficiencies Discovered During Annual Postage Payment Review 19 . . . . . . 

3-8.4 General Revenue Deficiencies 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-8.5 Notification Procedures 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-9 Notification of Authorizations 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-10 Revocation Procedures 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

4 Special Programs 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

4-1 Publisher Generation of Weights (PGW) Program 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

4-1.1 General Information 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

4-1.1.1 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

4-1.1.2 Quality Control 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Contents

October 2001 v

4-1.1.3 Documentation 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

4-1.2 Application Process 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

4-1.2.1 Application 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

4-1.2.2 Parallel Run 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

4-1.3 Authorization Process 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

4-1.3.1 Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

4-1.3.2 PGW Program Agreement 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

4-1.3.3 Notification 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

4-1.3.4 Denial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

4-1.4 Verification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

4-1.5 Revocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

4-2 Additional Programs 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

4-2.1 Daily Publications Program 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

4-2.2 Supplemental Advertising Report in Lieu of Marked Copy 24 . . . . . . . . . . . . . . . . . . . . . . . 

Appendix A — PS Form 3542, Application to Mail Under the Periodicals

Centralized Postage Payment (CPP) System 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Appendix B — PS Form 406, Centralized Postage Payment (CPP) System 

Multiple Payment Schedule Worksheet 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Guide to the CPP System for Periodicals Mail

vi Publication 406

Exhibits

Exhibit 3-4.1

Cover Statement for Postage Statements 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Exhibit 3-4.7

Submitting Postage Statements 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Starting With the Basics 1-1

October 2001 1

1 Starting With the Basics

1-1 Understanding the Centralized Postage Payment

(CPP) System

This guide provides publishers1 with detailed information on how to apply for

and mail under the Centralized Postage Payment (CPP) system for

Periodicals mail. Although many of the system functions are performed

independently by the mailer, fulfillment house, or publisher, overall

responsibility for coordinating the mailings of a Periodicals publication under

the CPP system rests with the publisher.

The publisher is responsible for ensuring that mailings are prepared

according to the mail preparation and presort mailing standards for

Periodicals as outlined in the Domestic Mail Manual (DMM). A CPP System

Service Agreement between the publisher and the Postal Service defines the

responsibilities of both parties. The requirements of the DMM, the

Agreement, and this publication are the controlling documents for the

program.

The CPP system allows the publisher of an authorized Periodicals publication

that meets the following requirements to pay postage at a single location —

the New York Rates and Classification Service Center (NYRCSC), located in

New York, NY. The publisher must:

a. Have a USPS detached mail unit (DMU) located at each mailer plant

site.

b. Have multiple plant sites or multiple Periodicals publications at multiple

plant sites.

c. Average a minimum of 5 postage statements per issue.

Note: Publishers who do not meet the above criteria can request

consideration from the NYRCSC.

1 In this document, the term “publisher” also refers to a publisher’s agent, if applicable.
1-2 Guide to the CPP System for Periodicals Mail

2 Publication 406

1-2 System Description and Parties Involved

1-2.1 New York Rates and Classification Service Center

(NYRCSC)

The manager of the NYRCSC authorizes publishers of Periodicals

publications to pay postage and submit postage statements under the CPP

system and ensures that all CPP system requirements are met.

The NYRCSC has primary responsibility to administer the CPP system and

collect postage for all additional and/or destination entry Post Offices.

Publishers must pay postage on all Periodicals publications authorized to

mail under the CPP system to the NYRCSC via the Centralized Account

Processing System (CAPS).

1-2.2 Detached Mail Unit (DMU) Serving Mailer’s Plant

The postmaster of the Post Office serving the mailer’s plant2 is responsible

for establishing and staffing a detached mail unit (DMU) with trained, qualified

employees to verify mail under the CPP system. This Post Office must be an

authorized additional entry Post Office.

1-2.3 Destination Entry Post Office

A destination entry Post Office is a Post Office where copies of a Periodicals

publication that are prepared as part of a plant-verified drop shipment (PVDS)

mailing are deposited into the mailstream. The Postal Service does not

collect postage at destination entry Post Offices for PVDS mailings of

Periodicals publications.

1-2.4 Additional Entry Post Office

An additional entry Post Office is an office where a publisher is authorized by

the Postal Service to present copies for Postal verification, mail deposit, and

postage payment. The Postal Service does not collect postage at additional

entry Post Offices for mailings of Periodicals publications authorized under

the CPP System.

1-2.5 Original Entry Post Office

The original entry Post Office is the Post Office serving the known office of

publication. The circulation records of a Periodicals publication must be

maintained or be made available for examination at the known office of

publication. This Post Office may also be a destination entry Post Office.

2 The mailer’s plant might be located at the printer’s plant.
Starting With the Basics 1-3.6

October 2001 3

1-3 Requirements

1-3.1 Application

The publisher must submit a completed PS Form 3542, Application to Mail

Under the Periodicals Centralized Postage Payment (CPP) System, to the

NYRCSC for determination. See Chapter 2 for a discussion of the application

process and Appendix A for a copy of PS Form 3542.

1-3.2 Authorization

To be considered for authorization to be mailed using the CPP system, the

publication must be authorized additional entry at all Post Offices serving the

mailer site(s) and must meet the following specifications:

a. Have a USPS detached mail unit (DMU) at each mailer plant site.

b. Have multiple plant sites or multiple Periodicals publications at multiple

plant sites.

c. Average a minimum of 5 postage statements per issue.

1-3.3 Location of Mailer’s Plant

The mailer’s plant where the publication is prepared for mailing must be

located within the United States.

1-3.4 Mailing Under the CPP System

For publications authorized to be entered under the CPP system, the

publisher must report all copies on the appropriate Periodicals postage

statement (i.e., one of the forms in the PS Form 3541 series, such as PS

Form 3541-N, PS Form 3541-R, etc.) and make postage payment to the

NYRCSC. See 3-5 for information about enclosures mailed with CPP

Periodicals publications.

1-3.5 Advance Deposit Account

The publisher must deposit funds into the appropriate advance deposit

account at the NYRCSC using CAPS at least 1 business day prior to mailing.

The NYRCSC is responsible for billing all postage statements for CPP

mailings to the appropriate advance deposit account in CAPS.

1-3.6 Compliance With Applicable Requirements for

Periodicals Mail

The publisher must continue to meet all eligibility, preparation, and reporting

requirements to qualify to mail publications at Periodicals rates under the

CPP system.
1-3.7 Guide to the CPP System for Periodicals Mail

4 Publication 406

1-3.7 Filing PS Form 3510

To make changes in the conditions of an additional entry or to request a

reentry, the publisher must file PS Form 3510, Application for Additional

Entry, Reentry, or Special Rate Request for Periodicals Publication, at the

original entry Post Office (for application processing) and concurrently furnish

a copy to the NYRCSC as notification of the proposed change. See 3-6.3 for

more information.

1-3.8 Edition Codes

Edition codes are assigned by the publisher to identify separate editions of

the same issue (e.g., demographic, geographic, morning, evening). The

edition codes may be alphabetical, numerical, or a combination of both.

1-3.9 Placement of Edition Codes

The edition code must be placed in one of the following locations on each

addressed copy of each mailed edition:

a. If the address is printed directly on the publication or wrapper, the

edition code must be placed in the address block.

b. If the address is affixed to the publication or wrapper by the use of

paper labels, the edition code must be placed on the address label.

c. For perfect bound publications, the edition code may be placed on the

spine.

1-3.10 Computerized Postage Statements

The publisher must be able to produce correctly calculated computergenerated postage statements and other required documents that meet

Postal Service standards for content, format, and accuracy. The format and

content of the computer-generated postage statements are subject to

approval by the NYRCSC. See 3-4 for more information.

A publisher may submit postage statements using an approved electronic

format, including Electronic Data Interchange (EDI).
Application 2-1

October 2001 5

2 Application

2-1 Submission

The publisher must submit a completed PS Form 3542, Application to Mail

Under the Periodicals Centralized Postage Payment (CPP) System, to the

manager of the NYRCSC for authorization to participate in the CPP system.

See Appendix A for a copy of PS Form 3542. The application asks the

publisher to provide the following information:

a. The types of editions that will be produced (demographic, geographic,

morning, evening, etc.) and how editions are assigned codes. Include

samples of edition codes placed on the mailpiece and sack/pallet labels

showing the edition codes.

b. How the advertising percentages for each edition are computed.

Describe the method used to measure the advertising percentages

(square inches or column inches), and explain by whom, where, and

when (at what point during the production) the advertising percentages

are computed. Also provide an accurate marked copy or an unmarked

copy of the publication accompanied by supporting documentation of

the program that was used to calculate the advertising percentage for

the issue.

c. How the data for postage statement generation is entered into the

computer. Describe the step-by-step production process, including who

maintains the address files, when the main file is closed, and how the

file is maintained. Also include a production plan (creating the printing

and mailing schedules, running the presort program, printing an issue,

assigning entries, making container files, presorting the issue, and

dispatching the mail). Also, for each supplemental (non-main file) copy,

describe in the same manner how the data for postage statement

generation is entered into the computer. Include the location where

postage statements and copies of all editions are maintained for Postal

Service review.

d. The postage payment schedule to be used. Indicate whether the

single-payment-per-issue option or the multiple-payments-per-issue

option will be used. See 3-1.3 and 3-1.4 for more information.

e. A distribution plan for each plant, including the names and ZIP Codes

of the additional entry and destination entry Post Offices.
2-2 Guide to the CPP System for Periodicals Mail

6 Publication 406

f. Samples of computerized postage statements from a previous issue of

the publication. Produce and submit the required computer-generated

individual postage statements, Summary of Postage Statements, and

Register of Postage Statements. See 3-1, 3-4.3, and 3-4.4 for more

information.

g. Presort and automation documentation that supports the rates claimed

and that corresponds with the postage statements being submitted.

This documentation must confirm the number of pieces mailed at each

presort and automation level rate as required by the DMM. Include a

zone analysis breakdown by postage statement. If the publication has

automation rate mail, submit all supporting automation documentation

as required by the DMM.

h. Sack/pallet reports for the corresponding mailing.

2-2 Approval

Publications will be authorized for mailing under the CPP System if they meet

the following requirements:

a. A review has demonstrated the publisher’s ability to submit accurate

computerized individual postage statements, Summary of Postage

Statements, and Register of Postage Statements within the applicable

time frame specified in 3-4.7.

b. The publisher is able to submit all required supporting automation and

presort documentation on request.

c. The publisher can show that it maintains a complete audit trail and can

produce accurate information within the required time frames.

d. The publisher has submitted an accurate marked copy or an unmarked

copy of the publication accompanied by supporting documentation of

the program that was used to calculate the advertising percentage for

the issue.

e. The publisher has demonstrated the ability to transfer funds to the

NYRCSC via CAPS.

f. The Postal Service has established a DMU at all mailer plant locations

and each DMU has been staffed (within the publication’s printing hours)

with qualified employees trained in the CPP system procedures and, if

applicable, the PVDS program.

g. The publisher can demonstrate the ability to include all mailings

(supplemental and main file) in one Summary of Postage Statements.

See 3-4.6 for off-line mailings.

h. The publisher can use the appropriate postage statement to accurately

and quickly include the weight of the copies submitted by the DMU.

i. The publisher meets all other CPP requirements.
Application 2-5

October 2001 7

2-3 Notification of Approval to Publisher

When the application is approved, the manager of the NYRCSC provides the

publisher with a letter of authorization and a CPP System Service

Agreement, which the publisher must sign prior to implementation. The

authorization specifies the mailing date of the first issue that will be mailed

under the CPP system. Upon receiving authorization, the publisher is

responsible for notifying all the mailing locations and list or data processors

that will be involved in the program on the effective date of the authorization.

The publisher must advise these agents of their responsibilities for

participation in the CPP program.

2-4 Notification of Approval to Affected Post Offices

When the application is approved, the NYRCSC notifies all affected Post

Offices of the date of the last issue of the publication to be posted to the

publisher’s advance deposit account at the Post Office(s) serving the mailer’s

plant(s). After the postage statements for that issue have been posted to the

publisher’s advance deposit account, those Post Offices prepare and mail the

publisher a refund of any balance remaining in the advance deposit account

for the publication. Postal Service officials must document and submit to the

NYRCSC for postage collection any revenue deficiencies found to be owed to

the Postal Service for mailings of CPP publications

2-5 Denial of Application

If the application is denied, the manager of the NYRCSC notifies the

publisher in writing. The publisher may appeal the denial decision in writing

within 15 days from the date of receipt of the denial notice. The publisher

must file the appeal with the manager of the NYRCSC and should include

evidence showing why the CPP system application should be approved. The

manager of the NYRCSC considers the content of the publisher’s appeal,

and if sufficient reason is demonstrated, the manager of the NYRCSC may

reverse the previous denial decision and approve the application.

If the publisher’s appeal does not provide sufficient reason for approval, the

manager of the NYRCSC forwards the appeal for a final agency decision to

the manager of Mail Preparation and Standards at USPS Headquarters.
Operating Under the CPP System 3-1.3

October 2001 9

3 Operating Under the CPP System

3-1 Postage Payment

3-1.1 Postage Account Maintenance at the NYRCSC

The publisher must ensure that sufficient funds are on account for the

publication at least 1 business day prior to the presentation of the first mailing

of an issue. The minimum required balance is determined from postage of

previous issues. Payments must be made according to the single-paymentper-issue option or the multiple-payment-per-issue option, as approved by

the NYRCSC and set forth in the CPP System Service Agreement. All

payments must be made to the NYRCSC electronically via CAPS.

3-1.2 Centralized Account Processing System (CAPS)

The Centralized Account Processing System (CAPS) allows a publisher to

establish a separate account for each publication’s postage for Periodicals

mailings and Standard Mail enclosures, or to have one account serving all of

the publisher’s CPP publications. The deposit for this account must be

transmitted via the standard automated clearing house (ACH) banking

mechanisms to the bank servicing CAPS accounts. The publisher has easy

access to view and print all transactions for each CAPS account. CPP

publishers must contact the NYRCSC to request authorization to use CAPS.

3-1.3 Single-Payment-Per-Issue Option

Before each issue or supplemental mailing is mailed under the CPP system,

the publication’s account at the NYRCSC must contain sufficient funds to pay

the postage for the complete issue and any supplemental mailings. The

amount of postage required for each complete issue must be equivalent to

the highest postage charge for a complete issue (including supplemental

mailings) mailed during the previous 12 months. This does not include

special issues.
3-1.4 Guide to the CPP System for Periodicals Mail

10 Publication 406

3-1.4 Multiple-Payments-Per-Issue Option

This multiple-payments-per-issue option is available to mailers whose

mailings of an issue are made over an extended period (e.g., several weeks).

If the publisher selects this option for a complete issue, the publisher must

submit a deposit schedule to the NYRCSC with the application for approval.

The publisher determines the deposit schedule by completing PS Form 406,

Centralized Postage Payment (CPP) System Multiple Payment Schedule

Worksheet, which must show the number of payments per issue and when

those payments will be made. See Appendix B for a copy of PS Form 406.

The publisher determines the amount of each deposit to be made by dividing

the number of deposits by the highest postage charge for an issue during the

previous year. The deposits must be made at least 1 business day prior to

the agreed-upon payment dates. If the publisher knows the total postage

charges for an issue before the required date of the last deposit, the last

deposit should be computed so that, when it is added to previous deposits,

the sum equals the total postage charges for that issue.

3-1.5 Additional Charges

If the postage charges for the mailing of a regular issue exceed the amount of

the initial deposit, the publisher is required to furnish the amount outstanding

at the time the publisher is aware of this new amount. This new higher total

postage charge becomes the minimum amount that must be placed in the

advance deposit account at the NYRCSC before the next issue is mailed.

3-2 Computation of Postage

3-2.1 Weights Per Copy

Using PS Form 3629, Centralized Postage Payment System – Running

Summary, the Postal Service provides the publisher with the weight per copy

for each edition from the DMU(s) servicing the publication’s mailer location(s).

The publisher must calculate the postage for the edition of each issue by

using the per-copy weight(s) provided by the Postal Service. For

supplemental or previous issues, the publisher must follow the standards

described in the DMM. For submission of the publisher’s own generated

weights, see the Publishers Generated Weights (PGW) program in 4-1.

3-2.2 Advertising Percentage

The publisher must document the advertising percentage on the postage

statements as described in the DMM.
Operating Under the CPP System 3-3.4

October 2001 11

3-2.3 Computation Standards

The publisher must use the computation standards on the postage

statements as described in the DMM.

3-3 Documentation Required by Publisher

3-3.1 Production Documentation Requirements

The publisher must provide the DMU with a tentative production schedule for

each issue of the publication at least 48 hours prior to the start-up of the

production of mailed copies. The Post Office serving the mailer’s plant uses

this schedule to ensure that the DMU employees are scheduled to perform

presort verifications, plant-verified drop shipment (PVDS) functions, and other

CPP system functions. The schedule must include the following:

a. A list of all editions and their corresponding edition codes.

b. A scheduled production/printing date and time for each edition.

c. Scheduled dispatch dates and times to each destination entry Post

Office.

d. A proposed distribution plan and container file.

3-3.2 Final Production Plan

The publisher must provide the DMU with a final production plan prior to

preparing the job or mailing. This plan must include the items listed in 3-3.1.

The publisher must notify the DMU (prior to the dispatch) and the NYRCSC

(prior to submitting postage statements) of changes to the distribution plan or

container file. All distribution changes must be reflected on the corresponding

postage statements. The production schedule must be easy to compare with

the actual mail being produced.

3-3.3 Presort Documentation Requirements

The publisher must submit to the DMU presort documentation that confirms

the number of pieces mailed at each presort level rate as required by

DMM P012 with the first mailing made under the CPP system, and on

request thereafter. (Included in each CPP System Service Agreement is the

amount of lead time needed by the publisher to produce specific

documentation requested by the Postal Service.) The documentation must be

in a Postal Service-approved standardized format or must be generated

using Presort Accuracy Verification and Evaluation (PAVE)-certified presort

software.

3-3.4 Documentation Requirements for Automation Rate

Mailings

The publisher must submit documentation confirming the number of pieces

claimed at the automation rates. If a mailing originates from a single mailer

site, the publisher must submit to the DMU PS Form 3553, Coding Accuracy
3-4 Guide to the CPP System for Periodicals Mail

12 Publication 406

Support System (CASS) Summary Report, and the summary page of the

presort report (the total number of pieces at each rate category). The

publisher must also submit a copy of the summary page to the NYRCSC.

For mailings with multiple mailer sites, the publisher must submit to the

NYRCSC PS Form 3553 along with the postage statements. Publishers may

submit documentation on electronic media as referenced in DMM P012. A

publisher must notify the NYRCSC and the DMU(s) involved when initially

claiming automation rates. A publisher must be authorized to mail automation

rates for a single publication at multiple mailer sites by the NYRCSC. If

supplemental mailings are kept on a separate file from the main file, the

publisher must submit separate documentation.

3-4 Submitting Postage Statements

3-4.1 Postage Statements

For each Periodicals publication, the publisher must produce the required

computer-generated postage statements (see 3-4.2, 3-4.3, and 3-4.4) on the

basis of the per-copy weights provided by the DMU and the advertising

percentages that the publisher has computed. Instead of signing each

postage statement, the publisher can submit a signed cover statement along

with the individual postage statements, the Summary of Postage Statements,

and the Register of Postage Statements for each issue. The cover statement

should read substantially as shown in Exhibit 3-4.1.

Note: If supplemental mailings are submitted within a separate group of

postage statements, the publisher must submit a separate cover sheet

statement for them.

3-4.2 Individual Postage Statements

In lieu of the appropriate PS Form 3541 issued by the Postal Service, the

publisher must use computer-generated individual postage statements

containing all of the required elements from the appropriate PS Form 3541.

All postage statements must include the finance number “35-5826” and a

uniquely assigned serial number. The serial numbers must be sequential and

the serial numbers assigned to an issue must be unique to that issue.
Operating Under the CPP System 3-4.3

October 2001 13

Exhibit 3-4.1

Cover Statement for Postage Statements

I hereby certify that all of the information furnished on the attached forms is

accurate and truthful, that the items do not contain any dangerous articles

prohibited by Postal regulations, that the mailing(s) meet all applicable

CASS/MASS standards for address and barcode accuracy, and that the

material presented qualifies for the rates of postage claimed. The attached

postage statements, numbered [number] through [number], include all

copies of the [name of issue] issue of [Title of Publication], which were

submitted to the entry Post Offices under the CPP system from

[MM/DD/YYYY] through [MM/DD/YYYY]. Submitting a false, fictitious, or

fraudulent statement may result in imprisonment of up to 5 years and a fine

of up to $10,000 (18 U.S.C. 1001). In addition, a civil penalty of up to $5,000

and an additional assessment of twice the amount falsely claimed may be

imposed (31 U.S.C. 3802).

For Nonautomation Rate Regular Periodicals Only: I certify that the ZIP

Codes appearing on pieces in the mailings described in these postage

statements have been verified and corrected where necessary within

12 months of the date of these mailings, using a USPS-approved method.

For Automation Rate Regular Periodicals Only: I certify that all Business

Reply, Courtesy Reply, or Metered Reply letter-sized cards or envelopes

enclosed in the pieces described in these postage statements bear the

correct facing identification marking (FIM) and barcode per DMM C810.

________________________________

[Signature and Title]

3-4.3 Summary of Postage Statements

The publisher must use a computer program that can accurately accumulate

all data elements from all of the individual postage statements into one

Summary of Postage Statements for each issue. The publisher must submit

the Summary of Postage Statements to the NYRCSC along with the

individual postage statements for each issue. The format and data elements

of the Summary of Postage Statements are essentially the same as the

individual postage statements, with the following exceptions:

a. The words “Summary of Postage Statements” must appear in the

heading.

b. The inclusive serial numbers for the individual postage statements on

which the summary statement is based must be shown in the heading.

This should be a range of numbers. The mailing date(s) may also be a

range if the publication is to be mailed over multiple days.

c. The number of copies, pieces, and pounds reported on the summary

statement must be the exact sums of those items from the individual

postage statements.
3-4.4 Guide to the CPP System for Periodicals Mail

14 Publication 406

3-4.4 Register of Postage Statements

The publisher must prepare a Register of Postage Statements that lists each

individual postage statement for the issue in numerical order by its unique

serial number. Each line on the register must include the following:

a. Unique postage statement serial number.

b. Entry Post Office.

c. Edition code.

d. Average weight per copy.

e. Advertising percentage.

f. Number of pieces.

g. Number of copies.

h. Total pounds.

i. Postage statement total postage.

The publisher must subtotal the volume and dollars for each destination entry

Post Office and must total them for the entire mailing.

3-4.5 Supplemental Mailings Presented for Mailing

Between Main File Mailings

When the publisher creates supplemental postage statements for copies

prepared from a non-main file, the publisher must incorporate those

supplemental postage statements when submitting the Summary of Postage

Statements for the next main file issue.

For publications whose frequency is monthly or less, publishers whose

supplemental files are maintained by someone other than the person who

maintains the main file may submit one separate set of individual postage

statements, Summary of Postage Statements, and Register of Postage

Statements. In all other circumstances, publishers must submit only one set

of postage statements per issue.

3-4.6 Off-Line Mailings Presented to a Post Office

Off-line mailings are supplemental mailings that are not mailed from a mailer

site. The publisher must submit the appropriate PS Form 3541 with the mail

to the Post Office where the mailing is being presented for Postal verification.

This Post Office must be authorized for additional entry. The publisher must

write the following note on the postage statement: “CPP Mailing, Do Not

Compute, Send This Form to NYRCSC.” Postage for all CPP mailings is paid

at the NYRCSC. The publisher must include this off-line mailing in the

Summary of Postage Statements presented to the NYRCSC with the next

issue, unless stipulated in the CPP System Service Agreement. The

publisher must notify the NYRCSC and entry Post Office in writing prior to the

initial mailing.
Operating Under the CPP System 3-4.10

October 2001 15

3-4.7 Submitting Postage Statements

The publisher must ensure that the NYRCSC receives the following items

after the last dispatch of the last regular mailing of an issue from the mailer’s

plant, in the applicable time frame noted in Exhibit 3-4.7:

a. The Summary of Postage Statements.

b. The Register of Postage Statements for all mailings of the issue of the

publication.

c. A copy of each of the individual postage statements, including postage

statements for previous issues mailed after the period covered by the

last Summary of Postage Statements.

d. A signed cover sheet attesting to the accuracy of the postage

statements.

Exhibit 3-4.7

Submitting Postage Statements

Frequency of Periodical Time Frame

More frequently than weekly 7 days

Weekly or less frequently 14 days

Note: For the purposes of CPP, a week is considered to begin on

Monday and end on Sunday. The actual time frame for filing postage

statements within the applicable 7-day or 14-day requirement, and as

agreed to by the publisher and the Postal Service, is stated in the CPP

System Service Agreement for each publication.

3-4.8 When Postage Rates Change During the Mailing of

an Issue

The publisher must submit separate Summary of Postage Statements when

postage rates change during the mailing of an issue of a publication — one

summary for all copies mailed at the old rates, and a separate summary for

all copies mailed at the new rates.

3-4.9 Data Retention and Retrieval

The publisher must retain the documentation supporting the submitted

postage statements (the appropriate PS Forms 3541) for 120 days in a

format that will facilitate the rerunning of the individual postage statements,

the Summary of Postage Statements, and the Register of Postage

Statements, if corrections are required.

3-4.10 Clearance Documents

The publisher must submit an appropriate PVDS clearance document (i.e.,

one of the forms in the PS Form 8125 series, such as PS Form 8125, PS

Form 8125-C, etc.) with all mail to be entered at a destination entry Post

Office. The publisher must submit the appropriate PS Form 8125 to the DMU

for signature. For each CPP publication that will use an appropriate facsimile

PS Form 8125, the publisher must submit to the NYRCSC a letter and a copy
3-5 Guide to the CPP System for Periodicals Mail

16 Publication 406

of the form for authorization. Upon approval of the form, the NYRCSC

provides a copy to the DMU(s). The publisher must supply any missing

clearance documents (i.e., the appropriate PS Forms 8125) to the affected

destination entry Post Office(s) on request.

3-5 Enclosures Mailed With CPP Periodicals

Publications

3-5.1 Procedures

For CPP publications that contain Standard Mail enclosures, publishers must

pay the additional postage due at the NYRCSC prior to the first mailing. At

least 1 business day prior to mailing, the publisher must notify the NYRCSC

in writing (and provide a copy to each DMU involved) identifying the

publication and the issue or edition(s) in which the enclosure will be

contained. To pay postage at the Standard Mail presorted rates, the publisher

must have an active permit imprint account (under the publisher’s or

publication’s name) and must have paid a Standard Mail annual bulk mailing

fee at the Post Office serving the DMU at the mailer’s plant from which the

enclosure is being mailed. If the NYRCSC has no record documenting

payment of the annual bulk mailing fee to the Post Office serving the plant,

the NYRCSC will request that the publisher send to the NYRCSC a copy of

the PS Form 3544, Post Office Receipt for Money, it received for that

payment. For First-Class Mail enclosures, contact the NYRCSC.

3-5.2 Postage Statements

The publisher must submit the applicable postage statements for the

enclosures (depending on class and type) to the NYRCSC with the

Periodicals postage statements. A publisher who claims discounted entry

rates must submit individual postage statements for each entry. The publisher

must also submit a Consolidated Postage Statement that encompasses all

the individual postage statements. If the publisher does not claim discounted

entry rates, then the publisher may submit one single postage statement (if

applicable for all rates in the mailing) to cover all the enclosed pieces.

3-5.3 Documentation

When presenting the mailing production schedule to the DMU, the publisher

must include the edition codes of the issue that will contain the enclosure.

The DMU and the NYRCSC must receive the actual enclosure for weight

verification purposes prior to mailing. CPP publications may use a special

CPP endorsement such as “Standard Mail Enclosed, Postage Paid Under the

CPP System at the NYRCSC.” The publisher must follow all endorsement

placement options as per DMM P070.2.
Operating Under the CPP System 3-6.4

October 2001 17

3-6 Reporting Requirements

3-6.1 Statement of Ownership

The publisher must annually file an original PS Form 3526, Statement of

Ownership, Management and Circulation, for each publication at the

publication’s original entry Post Office. Concurrently, the publisher must send

a copy to the NYRCSC.

3-6.2 Marked-for-Advertising Copies

The publisher must submit a marked copy of the basic edition, along with a

listing of every edition mailed, to the original entry Post Office. This listing (in

hard copy or electronic media format) must show each edition by code and

the corresponding advertising and nonadvertising percentages. On request,

the publisher must be able to submit a marked copy of any or all editions of

any issue within 6 months of the current issue. Every marked copy that is

submitted must be clearly identified with the same edition code used on the

production schedule and the corresponding postage statement. If a Post

Office other than the original entry office receives the marked-for-advertising

copies, the publisher must still submit to the original entry office one copy (not

marked for advertising) of every edition of each issue.

3-6.3 Changes in Additional Entry or Reentry

The publisher must file a PS Form 3510, Application for Additional Entry,

Reentry, or Special Rate Request for Periodicals Publication, to add or

change an additional entry (i.e., a Post Office serving the mailer’s plant), to

request reentry (changes to title, frequency, etc.), or to request the special

rates. The publisher must file the PS Form 3510 at the original entry Post

Office, unless the request is to change the original entry Post Office, in which

case the publisher must file the PS Form 3510 at the new original entry Post

Office. For requests to add or change an additional entry office, the publisher

must file PS Form 3510 at least 30 days prior to the requested effective date

of the change, as required in DMM D230. Requests for reentry or the special

rates must be filed as required in DMM E214 or E270, as applicable. The

publisher must file a copy of each PS Form 3510 with the NYRCSC.

Note: If a publication’s frequency does not change but the date of

publication changes from year to year (such as religious holidays or

opening/closing dates for school terms), the publisher only needs to

present a letter stating the new publishing dates to the NYRCSC and the

original entry Post Office at the beginning of each calendar year.

3-6.4 Changes in Mailing Locations

Prior to implementing any changes in mailing locations, the publisher must

notify the NYRCSC and the Post Office serving the mailer’s plant, in writing,

as soon as possible, but at least 45 days prior to the change. The publisher
3-6.5 Guide to the CPP System for Periodicals Mail

18 Publication 406

should provide this notification even prior to submitting the PS Form 3510, as

described in 3-6.3.

The publisher’s letter to the NYRCSC and DMU Post Offices must include the

following:

a. The location of the current mailer’s facility and the location of the new

facility, showing the complete mailing address for each.

b. The effective date of the proposed change in location.

c. A description of any change the move will create to the following:

(1) The method used to assign edition codes.

(2) The documentation methods that support generation of postage

statements.

(3) The flow of information necessary to complete postage

statements.

(4) Where, when, and how advertising and nonadvertising content

and percentages for marked copies are developed.

d. A copy of the PS Form 3510 requesting the change in additional entry

office.

Before a publication can be approved for mailing under the CPP system at a

new mailing location, the NYRCSC must ensure the following:

a. That the Post Office selected to serve the new mailer’s plant will be

able to staff a DMU with trained, qualified employees to verify mailings

entered under the CPP system, including verifying the average

per-copy weights.

b. That the publisher will continue to meet all CPP system requirements at

the new facility.

The NYRCSC may delay implementing the CPP system at the new mailing

location until these requirements are met.

3-6.5 Changes to Distribution Plan

To modify the distribution plan, the publisher must file PS Form 3510 and

notify the NYRCSC in writing prior to submitting postage statements. The

publisher must also change the appropriate PS Forms 8125 to reflect

changes in the distribution plan, and must have the DMU authorize the

clearance documents with a signature and date.

3-7 Postage Payment Reviews

The Postal Service will perform an annual postage payment review for each

CPP publication. Publishers with multiple publications mailing from the same

plant and using the same vendors may have only one of those publications

reviewed. The NYRCSC will initiate the review. For every mailing, the

publisher must present to the DMU involved all authorized documentation
Operating Under the CPP System 3-8.5

October 2001 19

that supports every rate claimed on the postage statements. This

documentation must include the following:

a. A marked copy of an edition of the issue.

b. A standardized documentation/qualification report.

c. A sack/pallet report or container file.

3-8 Discrepancies

3-8.1 Nonrevenue Discrepancies

For an exception for all nonrevenue-related discrepancies, the publisher must

receive authorization from the RCSC that serves the Post Office where the

mailer’s plant is located. (An example of such a discrepancy would be an

incorrect identification statement.)

3-8.2 Production Schedule Discrepancies

For production schedule discrepancies (e.g., book makeup different from

print order, the number of copies printed for an edition exceeding the number

stated on the production schedule, etc.), the DMU uses the highest weight or

highest postage charge when exact counts or sizes cannot be determined. It

is the responsibility of the publisher to submit accurate information to the

DMU for easy verification.

3-8.3 Revenue Deficiencies Discovered During Annual

Postage Payment Review

If an annual postage payment review reveals errors exceeding 1 percent,

then the Postal Service considers the publisher to have a revenue deficiency,

and the Postal Service will review the next possible issue. The Postal Service

will notify the publisher in writing of all findings resulting from an annual

postage payment review.

3-8.4 General Revenue Deficiencies

The Postal Service will notify the publisher of all errors and/or revenue

deficiencies immediately by telephone or in writing through PS Form 3749,

Irregularities in the Preparation of Mail Matter.

3-8.5 Notification Procedures

The NYRCSC will notify the publisher, in writing, of the revenue deficiency.

The publisher will have 15 days from the date of the letter assessing the

deficiency to appeal the decision. After the fifteenth day (or when a final

agency decision is made), the publisher must submit funds to the NYRCSC

to cover the deficiency. The NYRCSC will withdraw the deficiency amount on

that date. Failure to comply may be grounds for the Postal Service to revoke

the publisher’s CPP agreement.
3-9 Guide to the CPP System for Periodicals Mail

20 Publication 406

3-9 Notification of Authorizations

The publisher must receive authorization to use the following programs, and

must provide a copy of the authorization to the NYRCSC (if the NYRCSC is

not the authorizing office) and to the DMU Post Office serving the mailer’s

plant:

a. Co-palletization of either rates and/or publications.

b. Co-mailing (two or more publications in one addressed and sealed mail

piece) or combined mailing (two or more publications in one package).

Note: Periodicals publications authorized to be mailed under the

CPP system may be part of a co-mailing or combined mailing only

when all of the publications in the co-mailing or combined mailing

have been authorized to be mailed under the CPP system.

c. Advertising percentage program in lieu of submitting marked copy.

d. Printer site and mailer site in two different locations for same mailings.

e. All exceptions in palletization, sacking, or traying.

f. All exceptions that vary from the standards set forth in the DMM.

3-10 Revocation Procedures

If a publisher fails to meet CPP system requirements, the manager of the

NYRCSC will notify the publisher and provide a reasonable time frame for the

publisher to correct the discrepancies. If the publisher is unable to correct the

discrepancies within the time allowed, the manager of the NYRCSC may

revoke the publisher’s authorization to mail under the CPP system.

A publisher wishing to appeal a revocation decision must submit the appeal

in writing to the manager of the NYRCSC within 15 days from the date of

receiving the revocation notice. The publisher’s appeal should contain

evidence showing why the CPP system authorization should not be revoked.

If the evidence provided by the publisher indicates that the authorization

should be continued, the manager of the NYRCSC may reverse the

revocation decision.

If the manager of the NYRCSC does not find evidence sufficient to reverse

the revocation decision, the manager forwards the appeal to the manager,

Mail Preparation and Standards, USPS Headquarters, who will issue the final

agency decision.

The publisher may continue to mail under the CPP system while an appeal is

pending.
Special Programs 4-1.1.3

October 2001 21

4 Special Programs

4-1 Publisher Generation of Weights (PGW) Program

4-1.1 General Information

4-1.1.1 Purpose

The Postal Service may authorize publishers to submit their own per-copy

weights to be used on the postage statements.

Any publisher who is authorized to mail through the CPP system may apply

to participate in the Publisher Generation of Weights (PGW) program. This

program allows the publisher to use per-copy weights that are internally

generated by the publisher’s system.

4-1.1.2 Quality Control

The publisher must have quality control methods in place to qualify for the

PGW program. These methods must ensure the integrity of the process, the

accuracy of the documentation, and the consistency of the calculation

method. The publisher must demonstrate the ability to quickly troubleshoot

any discrepancy through internal quality control procedures, detect at what

stage of the process a problem is occurring, and promptly correct the

problem.

4-1.1.3 Documentation

The publisher must have a system that properly documents the components

contained in each edition of an issue of a publication, including the following:

a. Paper stock.

b. Paper weight.

c. Trim size.

d. Number of pages.

e. Cover stock.

f. Inserts.

g. Enclosures.

h. Weight of wrappers (polywrap, Kraft wrap, etc.).
4-1.2 Guide to the CPP System for Periodicals Mail

22 Publication 406

The publisher must submit documentation at the same time as the mailing

production schedule — i.e., 48 hours in advance of start of mailing — to both

the DMU and the NYRCSC.

Note: The Postal Service has published specifications for calculating

per-copy weights for Periodicals in DMM P013.

4-1.2 Application Process

4-1.2.1 Application

The publisher must submit a letter to the manager of the NYRCSC to apply

for participation in the PGW program. The letter must explain how the

publisher’s calculation process works and must include a flowchart and all

quality control procedures that will be used in the system.

4-1.2.2 Parallel Run

The NYRCSC will oversee a parallel run to determine the accuracy of the

publisher’s system for generating per-copy weights. For each mailing made

during the parallel run, the publisher must submit to the NYRCSC the

individual postage statements, a Consolidated Postage Statement, and the

Register of Postage Statements that have been computed using the

publisher’s weights. This will be done parallel with the current procedures in

3-2 for obtaining Post Office–provided per-copy weights.

4-1.3 Authorization Process

4-1.3.1 Approval

The manager of the NYRCSC will approve applications when the parallel

runs for three consecutive issues have demonstrated that the publisher’s

system generates an accurate weight per-copy.

4-1.3.2 PGW Program Agreement

When the application is approved, the manager of the NYRCSC provides the

publisher with a letter of authorization and a PGW Program Agreement,

which the publisher must sign prior to implementation.

At any time, the manager of the NYRCSC may modify the PGW Program

Agreement. If the program consistently fails to show accuracy in the

predetermined weights, the NYRCSC will review the system to determine

continuance of the program.

4-1.3.3 Notification

Upon receiving authorization and signing the PGW Program Agreement, the

publisher is responsible for notifying all affected mailers and data or list

processors of the effective date of the authorization and to advise them of

their responsibilities for participation in the PGW program.
Special Programs 4-1.5

October 2001 23

4-1.3.4 Denial

When an application is denied, the manager of the NYRCSC will notify the

publisher in writing and will explain the reasons for the denial. At any time,

the publisher may resubmit an application if the reasons for denial have been

corrected.

A publisher wishing to appeal a denial decision must submit the appeal in

writing to the manager of the NYRCSC within 15 days from the date of

receiving the denial notice. The publisher’s appeal should contain evidence

showing why participation in the PGW program should be authorized. If the

evidence provided by the publisher indicates the system may be approved,

the manager of the NYRCSC may reverse the denial decision.

If the manager of the NYRCSC does not find evidence sufficient to reverse

the denial decision, the manager of the NYRCSC forwards the appeal to the

manager, Mail Preparation and Standards, USPS Headquarters, who will

issue the final agency decision.

4-1.4 Verification

The Postal Service verifies the accuracy of the PGW by comparing postal

weights for random editions with the per-copy weights provided by the

publisher. If the total cumulative weight of the verified editions is heavier than

the PGW by 1.5 percent or more, the Postal Service will adjust the total

postage of the mailing by the percentage of difference that was found. If the

difference is heavier than the PGW by less than 1.5 percent, or if it is lighter

than the PGW, the Postal Service makes no adjustment and accepts the

PGW.

4-1.5 Revocation

If a publisher fails to meet PGW program requirements, the manager of the

NYRCSC will notify the publisher and provide a reasonable time frame for the

publisher to correct the discrepancies. If the publisher is unable to correct the

discrepancies within the time allowed, the manager of the NYRCSC may

revoke the authorization to mail under the PGW program.

A publisher wishing to appeal a revocation decision must submit the appeal

in writing to the manager of the NYRCSC within 15 days from the date of

receiving the revocation notice. The publisher’s appeal should contain

evidence showing why the CPP system authorization should not be revoked.

If the evidence provided by the publisher indicates that the authorization

should be continued, the manager of the NYRCSC may reverse the

revocation decision.

If the manager of the NYRCSC does not find evidence sufficient to reverse

the revocation decision, the manager of the NYRCSC forwards the appeal to

the manager, Mail Preparation and Standards, USPS Headquarters, who will

issue the final agency decision.

The publisher may continue to mail using the PGW program while an appeal

is pending.
4-2 Guide to the CPP System for Periodicals Mail

24 Publication 406

4-2 Additional Programs

4-2.1 Daily Publications Program

The daily publications program allows publishers of daily newspapers to

apply for the CPP system without having DMU employees staffed at their

mailer locations. Publishers of daily newspapers must perform additional

internal procedures to be authorized for this program. Contact the NYRCSC

for more information.

4-2.2 Supplemental Advertising Report in Lieu of Marked

Copy

A publisher may request authorization to submit documentation in lieu of

presenting a marked copy to the original entry office. The NYRCSC

authorizes CPP publications. Contact the NYRCSC for more information.
PS Form 3542 Appendix A

October 2001 25

Appendix A

PS Form 3542, Application to Mail Under

the Periodicals Centralized Postage

Payment (CPP) System

This appendix contains a copy of PS Form 3542, Application to Mail Under

the Periodicals Centralized Postage Payment (CPP) System.

This form is also accessible in an electronic format:

For Postal Service customers, it is accessible on the Internet at

http://www.usps.com (click on “Forms,” then “Periodicals,” and then

scroll down to PS Form 3542).

For Postal Service personnel, it is accessible on the corporate intranet

at http://blue.usps.gov (click on “Information,” then “Policies and

Procedures,” then “Forms,” then either “Alphabetical List by Title” or

“Numerical List,” and then scroll down to the appropriate form).
PS Form 3542

October 2001 27
Guide to the CPP System for Periodicals Mail

28 Publication 406
PS Form 406 Appendix B

October 2001 29

Appendix B

PS Form 406, Centralized Postage Payment

(CPP) System Multiple Payment Schedule

Worksheet

This appendix contains a copy of PS Form 406, Centralized Postage

Payment (CPP) System Multiple Payment Schedule Worksheet.

This form is also accessible in an electronic format:

For Postal Service customers, it is accessible on the Internet at

http://www.usps.com (click on “Forms,” then “Periodicals,” and then

scroll down to PS Form 406).

For Postal Service personnel, it is accessible on the corporate intranet

at http://blue.usps.gov (click on “Information,” then “Policies and

Procedures,” then “Forms,” then either “Alphabetical List by Title” or

“Numerical List,” and then scroll down to the appropriate form).
Appendix B Guide to the CPP System for Periodicals Mail

30 Publication 406