DOMESTIC LETTERMAIL

DOMESTIC REGISTERED MAIL

ADDRESSED ADMAIL

BUSINESS REPLY MAIL (BRM) and INTERNATIONAL BUSINESS REPLY MAIL (IBRM)

CATALOGUE MAIL

ELECTRONIC SHIPPING TOOL (EST) SOFTWARE

INCENTIVE LETTERMAIL

PUBLICATIONS MAIL

UNADDRESSED ADMAIL

Canada Post is committed to providing customers with a range of services that offer flexibility, convenience, value and choice, in a global marketplace that is highly competitive, and moving in new directions. Investment in technology and innovation are a must if Canada Post is to remain profitable and able to meet its commitments and future obligations to customers.

Annual price increases are consistent with industry practice and are necessary for Canada Post to retain a competitive position in an ever-changing marketplace.

Through a network of 23,000 plus retail points of purchase, including full service postal outlets, dealers and stamp shops, 23 major plants and some 60,000 full and part-time employees, the corporation annually delivers over 11 billion parcels and messages to 32 million Canadians at 14 million addresses. The corporation continues to provide a high level of service, achieving consistently high on-time delivery scores for its services (96% on domestic Lettermail).

The costs associated with conducting our business are market driven and inflationary in nature. Rate increases are necessary in order to keep pace with inflation, direct operating cost increases, and our need to reinvest in our network infrastructure to meet customer demands.

To ensure Canada Post does not generate revenue by simply raising postal rates, the basic letter rate is governed by the price-cap formula that restricts domestic increases to two-thirds of the rate of inflation, as measured by the Consumer Price Index. The increase is automatic once the appropriate inflation threshold is met. If the calculation of the price cap formula results in an increase to the basic letter rate of more than one cent but less than two cents, only the one-cent increase is used while the balance is held in reserve. Any unused pennies from previous increases are banked for future use.

Effective January 15, 2007, there will be price increases to the following services (click on the Price Sheets for details):

• Addressed Admail - 2007 Addressed Admail Price Sheet
• Business Reply Mail - 2007 Business Reply Mail Price Sheet
• Catalogue Mail - 2007 Catalogue Mail Price Sheet
• Incentive Lettermail - 2007 Incentive Lettermail Price Sheet
• International Business Reply Mail - 2007 International Business Reply Mail Price Sheet
• Domestic Lettermail - 2007 Lettermail Price Sheet
• Publications Mail - 2007 Publications Mail Price Sheet
• Unaddressed Admail - 2007 Unaddressed Admail Price Sheet

Addressed Admail

• Reduce container fill requirements
• Machineable mail readability rate and certification changes
• Non-compliance surcharges

Business Reply Mail and International Business Reply Mail

• Mandatory 4-state barcode effective July 1, 2007
• Non-compliance surcharges
• New! Response Envelope

Catalogue Mail

• Permit dual return addresses
• Permit Lettermail enclosures
• Non-compliance surcharges

Incentive Lettermail

• Machineable mail readability rate and certification changes
• Non-compliance surcharges

Publications Mail

• Reduce container fill requirements
• Machineable mail readability rate and certification changes
• Non-compliance surcharges

Unaddressed Admail

• Samples

Customer notification was sent via Xpresspost with signature to Communications Business Agreement owners beginning July 13, 2006, as well as to Authorized Users and Value Added Mailers (Mail Service Providers) beginning July 18, 2006. A reminder will also be sent to customers early in January 2007.

Beginning with the customer notification in July 2006, Canada Post will begin a new practice in providing Price Sheets and Customer Guides.

In mid-July, along with the notification letter, customers were provided with 2007 Price Sheets indicating the new prices to which they are entitled by their Agreement with Canada Post.

In line with providing customers with Agreement-specific collateral, before January 15, 2007, customers will receive only the Customer Guide(s) for which they have an active Agreement.

The changes to the 2007 Customer Guides will include:

• continuation of previous years' efforts for content amalgamation
• any changes required to implement the approved 2007 service changes
• clarifications throughout each Guide to improve understanding
• clarification of various sections of the Guides in particular:
• General Terms and Conditions
• Section 8.5.2 Non-compliance Surcharges
• Section 9.3 Authorized
• Section 21 Termination

Many customers have told us they no longer need printed Customer Guides, so we will now offer customers a choice. A Business Reply "Opt In" card will be sent for customers to return to Canada Post if they are interested in continuing to receive future hard-copy Customer Guides.

A hardcopy version of the 2007 Customer Guide(s) will be sent, along with a reminder letter, to Agreement Owners and their Authorized Users early in January 2007.

Customer Guides and any Amendments can be found on the Canada Post Website at www.canadapost.ca/customer_guides

A change to the surcharges price structure will be introduced to align across all services that is justifiable in the market place, clearly understood and transparent. The new surcharges will apply to Addressed Admail, Catalogue Mail, Business Reply Mail, International Business Reply Mail, Incentive Lettermail and Publications Mail. The current practice and process of adjusting mailings based on weight, volume, and product content will change to include Machineable mail read rate.

SERP presort software is being updated to accommodate changes to container fills. (See question 14 in Addressed Admail and question 55 in Publications Mail.)

Additionally, customers who brick pile must use the SERP presort software brick piling module effective January 15, 2007.

Top

DOMESTIC LETTERMAIL

Yes, see the Domestic Lettermail Price Sheet for new price details effective January 15, 2007.

Top

DOMESTIC REGISTERED MAIL

Effective January 15, 2007, the Domestic Registered Mail fee for Canadian destinations will increase from $6.50 to $6.95.

Top

ADDRESSED ADMAIL

Yes, there will be a price increase for Addressed Admail. See the Addressed Admail Price Sheet for details effective January 15, 2007.

Currently, Addressed Admail customers may follow the Machineable Mail Certification process to test that a mailing will achieve the machine read rate of 90% or greater for Short and Long and 80% or greater for Oversize. Price adjustments are made to the items that fail to meet the desired read rates. The current price adjustment for S/L mail is $0.05 per item that fails to meet the 90% read rate and the O/S price adjustment is $0.10 per item.

Effective January 15, 2007

• If the mailing's read rate is greater than 90% for S/L items or greater than 80% for O/S items, no adjustment will apply.
• If the mailing's read rate is less than 90% for S/L items or less than 80% for O/S items a $0.10 per item surcharge will apply to the difference between the actual read rate and the required read rate (90% for S/L and 80% for O/S)

The Machineable mail will be run on the mechanized equipment and the read rate captured for both S/L and O/S for all machineable products. The read rate is captured and used to determine the adjustment, if applicable, to the customers mailing.

Effective January 15, 2007, the container fill minimum requirement will be reduced to 50% from 70% for level 1 (Delivery Facility) and level 4 (FCP). The SERP Presort software will automatically apply this new minimum.

A change to the surcharges price structure will be introduced to align across all services that is justifiable in the market place, clearly understood and transparent. The new surcharges will apply to Addressed Admail, Catalogue Mail, Business Reply Mail, International Business Reply Mail, Incentive Lettermail and Publications Mail. The current practice and process of adjusting mailings based on weight, volume, and product content will change to include Machineable mail read rate.

SERP presort software is being updated to accommodate changes to container fills. (See question 14 above.)

Additionally, customers who brick pile must use the SERP presort software brick piling module effective January 15, 2007.

Top

BUSINESS REPLY MAIL (BRM) and INTERNATIONAL BUSINESS REPLY MAIL (IBRM)

Yes, see the Business Reply Mail and International Business Reply Mail Price Sheets for new price details effective January 15, 2007.

The 4-state BRM barcode will become mandatory effective July 1, 2007. Any BRM or IBRM items that continue to display the 93-symbology barcode after July 1, 2007 will be considered non-compliant and subject to the surcharges in effect at that time.

The new 4-state barcode has been available to customers since 2004 via the BRM Artwork Online tool, either through self-serve or with the assistance of the regional BRM Coordinators.

A sample of a 4-state barcode:

A sample of the 93 symbology barcode containing the same data:

BRM specifications have been changed to provide more space within the customer control zone on the BRM artwork. This provides customers with more space for their design and creative needs.

See applicable section of the BRM customer Guide for illustrations

NEW! RESPONSE ENVELOPE
Canada Post has introduced specifications for approved BRM plastic commercial envelopes to give Domestic BRM customers and their recipients greater flexibility. These envelopes provide you options for receiving paper contents and other items - such as Ink Jet cartridges or film- as part of your mail response from recipients.

Customers interested in using the BRM plastic commercial envelope can obtain a copy of the Canada Post approved manufacturing specifications by clicking here.

The customer's supplier of choice will then produce the plastic commercial envelopes that meet the Canada Post-approved manufacturing specifications.

To ensure the plastic commercial envelopes as produced and the intended contents qualify for the Domestic BRM service, Customers must submit physical samples to Canada Post's Mail Standards and Testing Group.

Send samples to:
MAIL STANDARDS AND TESTING
CANADA POST
2701 RIVERSIDE DR SUITE N0550
OTTAWA ON K1A 0B1

Send electronic artwork to: mailstandardsandtesting@canadapost.ca

To use Business Reply Mail, Customers must have an active Business Reply Mail Agreement and access to the Business Reply Mail Artwork Online tool located within Canada Post's Online Business Centre.

To register for and use the Business Reply Mail Artwork Online tool, which is available to Customers at no charge, visit www.canadapost.ca/brm or contact a Canada Post Representative.

Access to the BRM Artwork Online tool "DEMO" is available at: www.canadapost.ca/brmsupportdocuments

A change to the surcharges (out of spec) price structure will be introduced to align across all services that is justifiable in the market place, clearly understood and transparent. The new surcharges will apply to Addressed Admail, Catalogue Mail, Business Reply Mail, International Business Reply Mail, Incentive Lettermail and Publications Mail. The current practice and process of adjusting mailings based on weight, volume, and product content will change to include Machineable mail read rate.

In the summer of 2004, a new online tool was introduced, which allows customers to create their own artwork, any time, at their convenience. This self-serve application is easy, fast and reduces the artwork processing time from days to minutes. By using this tool, your artwork is accurate to Canada Post standards and includes the new 4-state barcode.

Customers can access the BRM Artwork Online tool by visiting the Online Business Centre at www.canadapost.ca/obc

Customers who do not already have a user ID and password for the OBC, can obtain a user ID and password for the BRM Artwork Online tool by contacting the OBC Helpdesk at 1-866-511-0546.

Top

CATALOGUE MAIL

Yes, see the Catalogue Mail Price Sheet for new price details effective January 15, 2007.

To increase the flexibility of the Catalogue Mail service, the following have been approved and are reflected in the Customer Guide to permit dual return addresses on Catalogue Mail items and to permit enclosures and attachments on sealed Catalogue Mail items.

Permit Dual Return Addresses (Section 2.2.1.1 of the Catalogue Mail Customer Guide)

If a return address is used, it must be Canadian.

Dual return addresses are acceptable on Catalogue Mail items as long as there is one Canadian return address. However, if the Return to Sender or Address Correction service option is requested, there must be only one return address showing and it must be Canadian.

The return address may vary, provided that either the physical return address or the name of the person or business to which items are returned remains constant on each item.

Enclosures and Inserts (Section 2.1.2 of the Catalogue Mail Customer Guide)

For unsealed Catalogue Mail items, inserts are permitted only if securely bound to the catalogue. Inserts are defined as a paper or card securely bound to the catalogue.

The following may be enclosed with or attached to an item of Catalogue Mail without payment of additional postage, other than for the additional weight of the enclosure (if applicable):

• A Business Reply Mail item (card or envelope) provided the Customer has entered into an appropriate Agreement with Canada Post for Business Reply Mail. The Business Reply Mail item must be folded inside or inserted in the Catalogue Mail item in order to cover the Business Reply Mail design elements, including the indicia, and the specific Business Reply Mail address. This will avoid confusion and ensure efficient induction, processing and delivery of the Catalogue Mail item.

The Business Reply Mail addressing information must be printed on the uncoated (non-glossy, matte) side of the paper stock and must meet all requirements as stated in the Canada Post Agreement for Business Reply Mail:

• a return card, envelope or wrapper, with or without return postage; or
  
  
• a coin enclosed for the purpose of prepaying the return postage for a reply. The RETURN POSTAGE GUARANTEED postal indicia must appear on the cover of the item so that it may be returned if it cannot be delivered or redirected. The customer will be charged the applicable Return to Sender price for each item returned.

Note: It is the customer's responsibility to confirm the eligibility of an enclosure and/or attachment with a Canada Post representative prior to mailing.

Lettermail Enclosed
An item of mail that does not meet the requirements of Catalogue Mail but meets the requirements of Lettermail may be enclosed with, or attached to, an item of Catalogue Mail. In such cases, the applicable postage would be the combined price of Catalogue Mail and Lettermail and would be paid by the application of a Catalogue Mail postal indicia to the outside of each Catalogue Mail item.

Notes:

• When using a Catalogue Mail postal indicia, a separate Order (Statement of Mailing) for the Lettermail portion must accompany the mailing in addition to the Order (Statement of Mailing) for the Catalogue Mail portion.
• Catalogue Mail items with Lettermail enclosures are processed as Catalogue Mail. Catalogue Mail service standards apply and undeliverable items are recycled unless the Return to Sender or Address Correction service option has been requested.

A change to the surcharges price structure will be introduced to align across all services that is justifiable in the market place, clearly understood and transparent. The new surcharges will apply to Addressed Admail, Catalogue Mail, Business Reply Mail, International Business Reply Mail, Incentive Lettermail and Publications Mail. The current practice and process of adjusting mailings based on weight, volume, and product content will change to include Machineable mail read rate.

Top

ELECTRONIC SHIPPING TOOL (EST) SOFTWARE

EST is an internet-based shipping tool that automates the preparation and processing of Statements of Mailing and Manifests for Mailing with Canada Post. For the Customer, it reduces paperwork, saves time and improves billing/transaction accuracy, allows for online payment, provides access to incentive prices and any potential volume discounts.

Commercial Customers depositing both Communication Business products and Supply Chain Product Management (parcels and packages) can use EST. Electronic Shipping Tools software is free for Canada Post commercial Customers.

A Customer should use EST because it is mandatory to access the following price categories:

• Addressed Admail LCP and Machineable prices
• Incentive Lettermail prices
• Publications Mail LCP and Machineable prices
• Unaddressed Admail Contract prices
• Orders placed using a manual Order for rather than using the Electronic Shipping Tools software, are subject to a processing and may not qualify for certain price categories.

Customers can register online by completing the user ID and password Request Form for the Online Business Centre that is available on the Canada Post Website at www.canadapost.ca/obc

In the event that a customer is not able to place an Order due to an On-line Business Centre or Electronic Shipping Tools (EST) system failure that has exceeded 30 minutes, the customer can use a manual Order.

If the customer obtains a case number - The mailing at the applicable Contract price can be accepted using a manual Order (Statement of Mailing) at any approved Canada Post facility providing that:

• The customer obtains a case number from the Canada Post Technical Helpdesk at 1-866-511-0546 (Monday to Friday 8 am to 6 pm Local Time) and provides the case number at the time of mailing and,
• The customer number, Contract number, and applicable Contract price is written on the manual Order and,
• The customer qualifies for credit with Canada Post.

If the customer does not obtain a case number - the mailing and payment, at the applicable service price based on not using EST (see price sheets), can be accepted using a manual Order (Statement of Mailing) at any approved Canada Post facility.

"Fully-featured" refers to the EST prepared Unaddressed Admail Orders (Statements of Mailing) that contain barcodes on labels, tags, forms and packing slips and also provides mailing plans - all of which allow us to capture scanning information via Track a Mailing. Customers (Contract and Non-contract) will receive an additional 2% automation incentive for using the fully featured version of EST.

Top

INCENTIVE LETTERMAIL

Yes, see Incentive Lettermail Price Sheet for details on new prices effective January 15, 2007.

For Incentive Lettermail the required read rate is 95% or greater for S/L items and 85% or greater for O/S items.

In February 2000, the Corporation developed and implemented a process that requires Incentive Lettermail customers to become certified to gain access to machineable discounts for Lettermail. The process established a cure period that is triggered when an Incentive Lettermail customer's read rate falls below the acceptable limit. The customer then has the longer of three days or their next mailing to pass their next machineable mailing at the acceptable read rate. If they pass, the cure period ends and the customer continues to receive access to the machineable rate. However if they fail to address the issue within the process timeframe they lose access to machineable discounts for ALL future mailings until they have retested to re-establish their certification.

If customers wish to determine the machine read rate (or to become certified) they are required to send a representative 200-piece sample of their S/L or O/S mail to Mail Standards and Testing at Head Office.

Effective January 15, 2007

• The cure period will be eliminated;
• Certification is no longer required; however, optional testing of the machine read rates is strongly recommended;
• The target read rate of 95% for S/L items and 85% for O/S items will be maintained;
• A "control limit" of 80% for S/L items and 70% for O/S items will be established;
• If the mailing's read rate is greater than 95% for S/L items and 85% for O/S items, no adjustment applies;
• If the mailing's read rate is less than 80% for S/L items or less than 70% for O/S items the full price at the appropriate weight step will apply to the entire mailing;
• For S/L items - If the mailing's read rate is greater than 80% but less than 95%, the applicable full price at the appropriate weight step to the difference (95% less read rate) will apply;
• For O/S items - If the mailing's read rate is greater than 70% but less than 85%, the applicable full price at the appropriate weight step to the difference (85% less read rate) apply.

The Machineable mail will be run on the mechanized equipment and the read rate captured for both S/L and O/S for all machineable products. The read rate is captured and used to determine the adjustment, if applicable, to the customers mailing.

The Mail Preparation and Customer Guides will be updated to reflect the changes.

A change to the surcharges price structure will be introduced to align across all services that is justifiable in the market place, clearly understood and transparent. The new surcharges will apply to Addressed Admail, Catalogue Mail, Business Reply Mail, International Business Reply Mail, Incentive Lettermail and Publications Mail. The current practice and process of adjusting mailings based on weight, volume, and product content will change to include Machineable mail read rate.

The decision to create two Incentive Lettermail categories "Up to 30 g" and "Over 30 g up to 50 g" was to address the cost pressures associated with transporting and delivering thicker and heavier mail pieces that require more capacity in every aspect of handling, containerizing and carrying, and therefore incur more costs to deliver.

There will be a price increase on the "Over 30 g up to 50 g" weight step but there will not be a price increase on the "Up to 30 g" weight step. Hence, customers mailing up to 30 grams will benefit from rate stability in 2007. The weighted average price increase represents 2.3%, in line with increasing costs and with CPI, while minimizing the impact to most of our customers.

The rate increase on the heavier weight step also reflects the increasing costs to handle this heavier mail, while still providing a significant discount (up to 45%) compared to the full Lettermail rate for this weight category.

Incentive prices still provide customers with a significant saving off the Basic Lettermail price for all weight steps.

Starting on January 15, 2007, you will be required to declare the number of pieces within each weight step, (i.e. the number of pieces within "Up to 30 g" and those within "Over 30 g up to 50 g") on the Order (Statement of Mailing) .

You can do this in three ways, depending on your processes and/or equipment capabilities:

1. indicating the total number of pieces in each weight step (acceptable for 2007 only),
2. indicating the weighted average (acceptable for 2007 and 2008 only), or
3. indicating the exact weight per piece* (acceptable for 2007, 2008 and mandatory for 2009)
   * note currently EST has 13 entry lines on a single Order.

EXAMPLE 1) PIECES IN EACH WEIGHT STEP
Determine by service category the total number of pieces that weigh between 0 g and 30 grams, and the total number of pieces that weight between 30 g and 50 g to declare on the Order.

When creating an Order in EST for each service, Machineable and Presort, if you have mail in both weight steps ("Up to 30 g" and "Over 30 g up to 50 g") select the service category and enter the number of pieces and the weight. This process will have to be repeated for the same service description by declaring the new weight in the next weight step.

For example, select machineable S/L and enter the number of pieces and weight. This will have to be repeated for the next weight step.

Machineable     S/L     30 g      1000 pcs
Machineable     S/L     50 g      1000 pcs

If you wish to declare the exact weights, note that there are only 13 lines in EST to do so. Therefore weighted average may be your best alternative until EST is enhanced in 2008.

EXAMPLE 2) WEIGHTED AVERAGE
To calculate the average weight within each weight step use the actual weight of all pieces within that weight step divided by the total number of pieces within that weight step, as follows:

EXAMPLE 3) EXACT WEIGHT
Indicate the exact total number of pieces AND their weight on the Order.

Note - If the weight declared on the Order within the weight step does not match the weight within the weight step of the piece verified then an adjustment to the entire Order may occur.

There is no requirement for the Mailing Summary generated by the presortation software to detail piece counts by weight step. Your software may have the capability, therefore, you may wish to discuss options with your software provider.

When containerizing the mail, you do not have to physically separate the mail pieces into the different weight steps ("Up to 30 g" and "Over 30 g up to 50 g"). All Standard (Short & Long) Incentive Lettermail for one mailing that will appear on one Order may be containerized in the same containers and monotainers, even if there are mail pieces in both weight steps.

Note: As per current specifications, you may not mix Standard mail with Oversize mail in the same trays.

If you feel you do not have enough time to implement this change, please contact your Sales Representative. Canada Post is committed to working with you, our customer, to ensure you have a positive experience when dealing with us.

Customers were notified of the single Presortation change to Incentive Lettermail in writing the week of August 21, 2006.

As of January 15, 2007, the new options for Incentive Lettermail Presort will be:

• Presort for Standard items (Short and Long);
• Presort for Oversize items, and
• Presort Local for Standard items.

The minimum number of items per deposit for all of the above options will be aligned at 500 items. All other specifications (e.g. minimum bundle size of 5 items, container fill requirements, sequencing rules, etc.) will remain as they related previously to Low Density Presort; the exception is the application of the Local rules (e.g. removal of the Address Accuracy requirement) as it existed previously for High Density Presort.

Technical specifications for the presort specification change to Incentive Lettermail were issued to software developers on July 19, 2006. If you are an in-house developer and did not receive the updated technical specifications, please contact your Sales or Service Representative.

There are two major changes coming with the new software.

First: The labels will read "Lettermail Presort" as opposed to "Low [or High] Density Presort". If you begin using the new software before January 15, 2007, you must induct the presorted mail using the new labels.

Second: If you begin using the new software before January 15, 2007, you must continue to meet the existing requires for High (volume threshold at 500; 80% of the mailing at 50 pieces or more per bundle; minimum bundle size of 5 pieces) or Low (volume threshold at 5,000; minimum bundle size of 5 pieces) Density Presort until the Janaury 15, 2007 effective date of the change to that requirement. The new label design is also available online at www.canadapost.ca/personal/tools/pg/labels/default-e.asp

Yes, you may continue to use the current presortation software without any impact until April 15, 2007.

As the specification change takes the lowest common spec from the current High and Low Density products (volume threshold at 500, minimum bundle size at 5), all mailings currently qualifying as High or Low Density will continue to qualify for the new Presort specification.

The main difference is that the container and mono labels will read "High [or Low] Density Presort" rather than "Lettermail Presort" or "Oversize Lettermail Presort", and that the new rural bundling requirements will not be implemented. After April 15, 2007, mailings with incorrect labels or incorrect rural bundles will be surcharged as per the surcharge structure at www.canadapost.ca/customer_guides.

When identified read rates are not met on Machineable Mail, the mail cannot be processed in a fully automated way. By increasing the requirement for human intervention, we incur more processing costs. The cure period effectively created a situation wherein we were never recouping the additional costs to process.

Rest assured that Canada Post processes pertaining to equipment maintenance and testing are critical. In addition to regular maintenance of mechanized equipment, test decks for calibration are regularly run as per schedule to ensure that the equipment is running at top performance.

Top

PUBLICATIONS MAIL

Yes, see the Publications Mail Price Sheet for new price details effective January 15, 2007.

Currently, customers may follow the Machineable Mail Certification process to test that a mailing will achieve the machine read rate of 90% or greater for Short and Long and 80% or greater for Oversize items. Price adjustments are made to the items that fail to meet the desired read rates. The current price adjustment for S/L Publications Mail is $0.05 per item that fails to meet the minimum 90% read rate and $0.10 per item that fails to meet the minimum 80% read rate for O/S.

Effective January 15, 2007

• Testing (formerly referred to as Certification) of the machineable read rates will be optional;
• The target read rate of 90% for S/L items and 80% for O/S items will be maintained;
• If the mailing's read rate is greater than 90% for S/L items and 80% for O/S items, no adjustment will apply;
• If the mailing's read rate is less than 90% for S/L items or less than 80% for O/S items, a $0.10 per item surcharge will apply to the items that fall between the actual read rate and the target read rate.

The Machineable mail will be run on the mechanized equipment and the read rate captured for both S/L and O/S for all machineable products. The read rate is captured and used to determine the adjustment, if applicable, to the customers mailing.

The Mail Preparation and Customer Guides will be updated to reflect the change.

Effective January 15, 2007, the container fill minimum requirement will be reduced to 50% from 70% for level 1 (Delivery Facility) and level 4 (FCP). The SERP Presort software will automatically apply this new minimum.

A change to the surcharges price structure will be introduced to align across all services that is justifiable in the market place, clearly understood and transparent. The new surcharges will apply to Addressed Admail, Catalogue Mail, Business Reply Mail, International Business Reply Mail, Incentive Lettermail and Publications Mail. The current practice and process of adjusting mailings based on weight, volume, and product content will change to include Machineable mail read rate.

SERP presort software is being updated to accommodate changes to container fills. (See question 53 above.)

Additionally, customers who brick pile must use the SERP presort software brick piling module effective January 15, 2007.

Top

UNADDRESSED ADMAIL

Yes, see the Unaddressed Admail Price Sheet for new price details effective January 15, 2007.

There will be a change to the pricing structure for "Samples" included within Unaddressed Admail. The change is applicable to both EST and manual Orders.

Customers will no longer be charged for including samples and will be able to mail one or more samples in the envelope, paying the applicable price based on their annual volume commitment level and the weight of the overall piece.

Customers will continue to be able to mail samples included within Unaddressed Admail (as stand alone or as inserts in an envelope), as long as the overall piece meets the overall size and weight specifications for Unaddressed Admail.

There will be no change to existing Unaddressed Admail size and weight specifications.

Top