Customer Support Ruling

Customer Support Ruling
Mail Preparation and Standards
Headquarters, US Postal Service
Arlington, VA 22209-
6038

Proxy Cards or Statements

PS-159 (E070.5, E110.1.4) UPDATED March 2001

This ruling pertains to the mailing of proxy cards or statements and printed materials with annual reports. Each mail piece weighs under 16 ounces.
Domestic Mail Manual (DMM) E110.1.4, provides that matter having the character of actual or personal correspondence may only be mailed as First-Class Mail or Express Mail. Computer printed proxy cards or statements which show only the name, address and account number of the stockholder are acceptable as Standard Mail matter. In addition, if the proxy cards or statements include a key code number or numbers and there is no interpretation of the numbers (such as by printing the word "shares" after the number of shares), they would also be acceptable as Standard Mail matter provided they are not handwritten or typewritten matter. On the other hand, if
numbers shown on the proxy cards or statements are identified as shares, the cards or statements becomes subject to the First-Class Mail rates because the conveyance of a personal message is present (i.e., the specific number of shares an individual owns).
DMM E070.5.0 provides for the mailing of incidental First-Class matter as enclosures or attachments to Standard Mail merchandise (including books) and Packages Services matter without the payment of additional First-Class postage for the enclosures or attachments. The intent of this provision is to accommodate the mailing of items, such as bills and statements of account with Standard Mail merchandise. As information, the mailing of nonincidental First-Class enclosures or attachments with Standard Mail is cited in DMM E610.4.2. Nonincidental First-Class enclosures or attachments
mailed with Standard Mail requires separate First-Class postage for the enclosures or attachments and separate Standard Mail postage for the Standard Mail portion of the mail piece.
An annual report does not qualify as merchandise or as a book for purposes of DMM E070.5.0.
Thus, if proxy cards or statements that are subject to the First-Class rate are attached to or enclosed (in a separate compartment of an envelope) with an annual report, postage for the proxy cards or statements must be computed and charged at the First-
Class rate. The accompanying printed materials and annual reports are subject to the applicable Standard Mail or Package Services rate of postage provided they meet the content requirements of DMM E610 or E710.

Sherry Suggs
Manager