DMM S922 Business Reply Mail (BRM)

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SS922.7.0Business Reply Mail (BRM)7.0 ADDITIONAL STANDARDS FOR QUALIFIED BUSINESS REPLY MAIL(QBRM)Description7.1Eligibility7.2Authorization7.3Postage7.4Per Piece Fees7.5Annual AccountingFee and AdvanceDeposit Account7.6Quarterly Fee forHigh-Volume QBRM7.7Payment Period forQuarterly Fee7.8[7-10-03] Qualified business reply mail (QBRM) is a subset of business reply mail.Permit holders distribute automation-compatible letter-size pieces that qualify forautomation postage rates and reduced per piece fees. QBRM postage and perpiece fees must be deducted from a BRM advance deposit account.To qualify for QBRM, pieces must meet the eligibility requirements in E150.BRM permit holders must apply for authorization to participate in QBRM underE150.Each piece of returned QBRM is charged the automation postage rate for QBRMpieces in R100.3.0. Pieces that do not meet the format requirements for QBRMcannot qualify for automation postage rates and are charged First-Class Mailpostage according to 3.1.[7-10-03] Per piece fees listed in R900.4.3 are charged for each piece of returnedQBRM (in addition to postage in 7.4). Pieces that do not meet the formatrequirements for QBRM cannot qualify for QBRM per piece fees and are chargedthe high-volume BRM per piece fees in R900.4.2.[7-10-03] Permit holders are required to pay QBRM postage and per piece feesthrough a BRM advance deposit account, which requires payment of an annualaccounting fee (see 3.3).[7-10-03] Mailers may choose to pay a quarterly fee in addition to the annualaccounting fee. Payment of the quarterly fee entitles mailers to a lower per piecefee (the high-volume QBRM per piece fee listed in R900.4.4). The quarterly feeand annual accounting fee must be paid at each post office where mail is returnedand for each separate billing desired. Mailers are eligible for the high-volumeQBRM rates and per piece fees only for the time they pay the quarterly fee (i.e.,mailers can opt out of the quarterly fee and related high-volume QBRM per piecefees simply by not paying the fee for the next quarter). The quarterly fee cannot bepaid or renewed retroactively to receive a lower per piece fee on pieces alreadypaid for and delivered. The quarterly fee can be paid for any three consecutivecalendar months.[7-10-03] The quarterly fee must be paid in advance for at least one but no morethan four quarterly periods. A quarterly period begins on either the first day of themonth (if a mailer pays on or before the 15th of the month) or the first day of thefollowing month (if a mailer pays after the 15th of the month) and continues forthree consecutive calendar months. A mailer who pays the quarterly fee is entitledto the high-volume QBRM per piece fee from the date of payment through the endof the quarterly period. The fee paid is that which is in effect on the date ofpayment.8.0 BRM DISTRIBUTED AND RECEIVED BY AGENTS OF A PERMIT HOLDERDescription8.1[7-10-03] Permit holders may give permission to subsidiary offices, agents, orauthorized representatives to distribute and receive BRM using a single(corporate) permit number. BRM pieces are distributed by and returned to agents,S-64 DMM Issue 58 (8-10-03)1004
Business Reply Mail (BRM)S922.9.1Swho pay postage and per piece fees on those returned pieces. Agents may useany type of BRM service.Permit8.2Annual Permit Fee8.3Postage, Per PieceFees, and AnnualAccounting Fees8.4Payment Guarantee8.5Format8.6The main permit holder or “corporate” office applies for the permit number andpays the permit fee. The agent must present a letter of authorization from thepermit holder showing the name, address, and telephone number of the localagent authorized to receive the BRM to the post office where the BRM is to bereturned. Any time there is a change to the original permit application or theauthorization letter, each agent must provide an amended letter of authorization totheir local post office.The annual permit fee must be paid by the permit holder (2.3). Agents do not pay aseparate annual permit fee but must submit evidence (usually a copy of Form3544) to the local office once each 12-month period to show that the annual permitfee has been paid. This evidence is not required if the permit holder has acentralized account processing system (CAPS) account through which the localpost office can determine that the permit fee has been paid.[7-10-03] Agents receiving BRM or QBRM pay the postage, per piece fees, andannual accounting fees listed in R900.4.0 for the type of service received. Theagent may choose to pay an annual accounting fee and establish a BRM advancedeposit account. The agent receiving BRM is responsible for paying all postageand per piece fees.[7-10-03] The permit holder is ultimately responsible for postage and per piecefees for all pieces returned under that permit number. If a local agent refuses orneglects to pay postage or per piece fees on returned pieces, then those piecesare forwarded to the post office that issued the original permit for collection ofpostage and per piece fees from the permit holder. Once forwarded to the permitholder, these pieces cannot qualify for QBRM postage and per piece fees. Thepermit holder’s refusal to accept and pay the required postage and per piece feesfor BRM offered for delivery is grounds for immediate revocation of the BRM permit(2.6).BRM distributed by agents must meet all required format standards in 4.0 and 5.0.Authorized representatives distributing BRM on behalf of a permit holder musthave the permit holder’s name and permit number printed on the BRM and theirown names and addresses printed below the permit holder’s name, except:a. When the agent is a branch of an authorized business.b. The permit holder notifies a post office that authorized representatives mayuse the permit holder’s permit number without printing the permit holder’sname.9.0 BULK WEIGHT AVERAGED NONLETTER-SIZE BRMDescription9.1Bulk weight averaging is a method of counting, rating, and billing incomingnonletter-size BRM based on principles of mathematical statistics. Probabilitysampling techniques are used to measure the characteristics of the total BRMvolume by examining a fraction of the volume. Statistically valid samples that aredrawn from the incoming BRM volume each postal accounting period are used bypost offices to compute average postage due per pound and average piece countper pound factors. The net bulk weight of mail received is multiplied by theseconversion factors to get the estimated volume received and postage and feeamounts.922DMM Issue 58 (8-10-03) S-651005
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