BOOKLETS New Requirements for Automation & Machinable Letter Prices

1. BOOKLETSNew Requirements for Automation & Machinable Letter Prices

2. Overview – what led us here? • R2006 price increase for flat-size catalogs prompted shift to letter-size catalogs (e.g. “slim jims”) • Letters process on automation equipment at the rate of 10 pieces per second • Booklets (“slim jim” letter and digest-size) do not behave like enveloped pieces: • Tend to jam equipment • Can become significantly damaged • Tabbing methods often insufficient • Pieces frequently moved to flat-sorters and manual operations: • Reduce jam and damage rates • Greater processing and delivery costs

3. Overview – how did we react? • Extensive testing to determine which characteristics and combinations enable processing on the DBCSs (primary letter sorting machines): • Phase 1 – controlled test in fall 2007 • Mailer-supplied pieces – collaborated with industry in summer/fall 2008 • Phase 2 – controlled test through fall 2008 • Seven Characteristics Binding Cover Stock Size Tab locale, style, strength Thickness

4. Test Results, Mailer-Supplied Pieces Mailpiece Damage – Tab Tear

5. Test Results, Phase 2 Mailpiece Damage – Tab and Cover Tear

6. Test Results TABS • Three tabs performed better than two tabs on all styles • Large tabs (at least 1.5 inches) performed better than small tabs • Nonperforated tabs sealed better than perforated tabs, which tended to burst PAPER • 50-pound paper covers processed acceptably on some smaller and lighter pieces; at least 60-pound paper needed on most pieces SIZE • Pieces were problematic over 10.5 inches long or when weighing at or near 3 ounces

7. Booklets Mailpiece Design • New standards for letter-sized booklets FederalRegister published on April 15, 2009 • General overview: • Definestandards for design, preparation, and sealing of machinable and automation letter-size booklets • Describe minimum requirements and provide recommendations based on wide variety of test observations and several years of analysis • Provide illustrations of new requirements • Minimize mailpiece damage and maximize efficient processing • Effective September 8, 2009

8. Booklets Mailpiece Design • Booklets definition and illustrations: • Multiple sheets of paper bound together on one edge to form a spine; may be perfect-bound or permanently fastened with staples or another method that creates a uniformly thick mailpiece. • Larger booklets may be folded to letter-size so long as final mailpiece remains uniformly thick. • Spiral bindings are not machinable and do not qualify for automation prices.

9. Booklets Mailpiece Design – Physical Standards Dimensions and weight requirements for automation and machinable letter prices • Booklets: • Height – 3.5 inches to 6 inches • Length – 5 inches to 10.5 inches* • Thickness – 0.009 inch to 0.25 inches • Aspect ratio – within 1.3 to 2.5 • Maximum weight – 3 ounces • *Note: some booklet designs have shorter maximum lengths

10. Booklets Mailpiece Design –Paper Requirements Paper: • Generally booklet covers must be made with a minimum paper basis weight of 60-pounds book-grade or equivalent. • Minimum basis weights are higher for some designs • DMM 201 Exhibit 3.15.4 lists minimum paper weights by design • DMM minimum paper basis weights are based on book-grade

11. Booklets Mailpiece Design –Paper Requirements • Paper Conversion Example: • Mailing Standard: Minimum Paper Weight is 60 lbs • If the mailpiece cover is 55 lb newsprint that equals the minimum paper weight of 60 lbs book-grade. • If the mailpiece cover is 50 lb newsprint that does not equal the minimum paper weight of 60 lbs book-grade.

12. ← Spine ↑ Spine Booklets Mailpiece Design –Design and Sealing • Booklets may be designed with the spine or final fold at the bottom or on the leading edge.

13. 1.5” - 2” width Booklets Mailpiece Design – Closure Method • Tabs: • Three 1.5-inch tabs required on all booklets • Non-perforated tabs required on all pieces • Recommend white paper tabs • Recommend 2-inch tabs on booklets over 2.5 ounces

14. Booklets Mailpiece Design – Closure Method • Glue Spot: • May be used in lieu of tabs • Must be placed within ¾” of the open edges

15. Booklets Mailpiece Design – Closure Method • Glue Line: • May be used as cover-to-cover seals • Must be placed along the entire edge and no more than ¾” from the open ends

16. Booklets Mailpiece Design Simple-Spine Booklet: • Spine on bottom (longer) edge • Place two tabs on leading edge and one on trailing edge: • Position lower leading tab 0.5 inch from bottom edge • Position upper tabs 1 inch from top edge • May use 50-pound – 5” to 9”; 60-pound paper recommended • Must use 60-pound on pieces over 9 inches long

17. Booklets Mailpiece Design Folded Booklet (“Quarter-Fold”): • Final fold on bottom (longer) edge; spine folded on leading edge • Place two tabs on leading edge and one on trailing edge: • Position lower leading tab 0.5 inch from bottom edge • Position upper tabs 1 inch from top edge • May use 40-pound; 50-pound paper recommended

18. Booklets Mailpiece Design Spine-Right Booklet (Oblong): • Spine on leading (shorter) edge • Place two tabs on top edge and one on trailing edge: • Position top tabs no more than 1 inch from left and right edge • Position trailing tab no lower than the middle • May use 60-pound; 70-pound paper recommended • Must use 70-pound on pieces over 9 inches long

19. Booklets Mailpiece Design Perfect Bound • Spine on bottom (longer) edge; non-perforated inner flap on top (upper edge) • Perfect bound or saddle stitched with a continuous glue line along flap preferred, minimum 1” glue spots acceptable if placed within ¾” of right and left edges: • Must use 80-pound paper

20. Reminder! Booklets Mailpiece Design New Standards for Booklet Automation and Machinable Letter Prices Federal Register – final rule Vol. 74, No. 71 / Wednesday, April 15, 2009 / Rules and Regulations http://pe.usps.com/FRN/Booklets.pdf EFFECTIVE DATE: September 8, 2009

21. What about Folded Self-Mailers? • Postponed proposed Folded Self-Mailer rule • Established advisory team through MTAC leadership for further collaboration on mailpiece evaluation and testing • Utilize mailer-supplied test material, in addition to USPS controlled test designs • Target test completion by August 2009 • Proposed rule in Fall 2009

22. Questions