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Incentive Lettermail™ – Customer Guide

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Last updated: 2012-01-16

Important Updates

Any description of change is provided for reference and convenience purposes only. The description of change does not form part of the Agreement between the Customer and Canada Post.

Customers should ensure they are using the most current version of the Customer Guide, including all amendments and other applicable documents, which are posted on the Canada Post website. See in particular, canadapost.ca/postalservices for key support documents.

Important Updates Effective January 16, 2012:

Description of Change
Location
Added new section “Incentive Lettermail Qualifying Criteria” which provides information on the qualifying requirements.
Referenced the “Addressing Guidelines” and the “Machineable Postal Standards” as a source for addressing information.
Added the Smart Data™ Cleaner service description and link.
NOTE:
This amendment updates the January 17, 2011 version 1.0 guide.

Please note that when there is an amendment or a revision to the document, the version number will be modified as follows:

  • an amendment increases the first digit in the version (e.g., version 2.0, 3.0).
  • a revision increases the second digit in the version (e.g., version 1.1, 1.2).
  • the version number restarts at 1.0 every January of a given year.

1

Service Overview

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1.1

The Purpose of this Incentive Lettermail Customer Guide

This Customer Guide has been designed to give Customers detailed information needed to get the most from Canada Post’s Incentive Lettermail service.

This Customer Guide forms part of the Agreement between the Customer and Canada Post. It explains the qualifications and other Terms and Conditions under which this service is provided.

Customers should ensure they are using the most current version of the Customer Guide, including all amendments and other applicable documents, which are posted on the Canada Post website. See in particular, canadapost.ca/ilmsupportdocuments for key support documents.

It is the Customer’s obligation to meet all the requirements outlined in the Incentive Lettermail Agreement.

NOTE:
Some words and expressions used in this document have a specific meaning. See section 1 “Definitions” in the General Terms and Conditions for the definition of specific terms referenced throughout this document and this Agreement.

1.2

What is Incentive Lettermail?

Incentive Lettermail is a category of Lettermail that consists of identical items of Standard [formerly known as Short and Long (S/L)] and Oversize (O/S) mail as defined by Canada Post that must be deposited in Canada for delivery in Canada. These can include letters, cards (including postcards) or similar communications, receipts, invoices or other articles of a financial nature, or any other mail the Customer chooses to send at the applicable Incentive Lettermail price and which meets the applicable qualifications.

1.2.1

Incentive Lettermail Qualifying Criteria

To qualify for the Incentive Lettermail service, mailings must:

  • be deposited and paid for in Canada for delivery in Canada
  • meet the Incentive Lettermail definition
  • consist of a minimum of 5,000 machineable items and 500 presort items
  • consist of mail items that meet the requirements outlined in the applicable Postal Standards Guide
  • be properly prepared and presorted (if required) in accordance with the applicable Mail Preparation and Presortation Guide.

1.2.2

Incentive Lettermail Category

Two (2) mail preparation options are available with the Incentive Lettermail category:

  • Machineable Mail (MM) - available for Standard (S/L) and Oversize (O/S) Lettermail items
  • Presort - available for Standard (S/L) and Oversize (O/S) Lettermail items.
NOTE:
See section 2.3 “Physical Characteristics” for Standard (S/L) and Oversize mail item specifications.

Visit canadapost.ca/ilmsupportdocuments for a list of support documents detailing Incentive Lettermail requirements.

1.2.2.1
Machineable Standard and Oversize (O/S) Overview

Machineable Mail is mail that is prepared in such a way that it can be efficiently processed through Canada Post’s automated mail processing equipment. Process efficiency includes but is not limited to:

  • the speed at which items are processed through the automated mail processing equipment
  • the frequency of processing interruptions resulting from mail items characteristics not meeting product specifications
  • ensuring that there is no requirement for special machine set-up to process the mailing.

Canada Post reserves the right to decline customer requests for Machineable prices if a mailing cannot be efficiently processed through Canada Post’s automated equipment.

Mail must achieve a minimum machine readability target of 80% for Standard and 70% for Oversize (O/S) in order to qualify for the Machineable price. A readability target of 95% for Standard and 85% for Oversize (O/S) is required in order to avoid a price adjustment or surcharge. Machineable Mail may only be deposited at approved mechanized sites. A minimum of 5,000 identical items per deposit is required.

1.2.2.2
Presort Standard and Oversize (O/S) Overview

Lettermail Presort refers to mail that is sequenced, grouped and containerized to enable Canada Post to bypass various processing steps and facilities within its mail distribution network. A minimum of 500 identical items per deposit is required.

1.2.3

What is Acceptable as Incentive Lettermail?

Incentive Lettermail can include the following:

  • a letter
  • a card
  • a postcard
  • a self-mailer
  • an annual, semi-annual or quarterly report
  • a proxy
  • a survey
  • a notice of voting for federal, provincial or municipal events
  • a receipt or invoice (or similar document containing financial information)
  • a CD or DVD (must be submitted to Canada Post for testing and approval)
  • a flexible magnet
  • product/service information.

1.2.4

What is Unacceptable as Incentive Lettermail?

To be eligible as Incentive Lettermail, the items mailed must meet the criteria specified for Incentive Lettermail and must be prepared for mailing in such a manner as to prevent loss or damage to any item and permit easy examination of each item.

Commingling of Incentive Lettermail items is not permitted. Commingling occurs when a number of separate and notably different mailings are combined to achieve the minimum deposit requirement or sufficient densities to achieve discount prices. See “Ownership of Mail” in General Terms and Conditions.

1.3

Delivery Standards

Delivery standards are estimates of how long it will take for the mail to be delivered from the point of deposit to the destination points. These delivery standards are not guaranteed.

A general overview of the Incentive Lettermail delivery standards is as follows:

LOCAL
 
2 business days
WITHIN A PROVINCE
 
3 business days
NATIONAL
 
4 business days
NOTE 1:
Delivery standards are calculated from the day of deposit (day 0) plus the number of business days required for delivery. The number of days excludes the day of mailing, weekends and statutory holidays. Weekend and statutory holiday deposits are considered deposited on the following business day.
2:
Delivery standards for items deposited at Canada Post Receipt Verification Unit (RVU) sites are subject to cut-off times. Mail deposited after the cut-off time is considered as being deposited on the next business day. Visit canadapost.ca/ilmsupportdocuments for current cut-off information for each RVU site.
3:
These delivery standards do not apply to Northern Regions and to Remote Centres as defined by Canada Post. Also, these delivery standards do not apply to redirected or returned items.
4:
Delivery standards are subject to change without notice.

For more information, visit Delivery Standards in section 2.5 “Incentive Lettermail™” of the Canada Postal Guide.

1.4

Service Features and Options

1.4.1

Features

A feature is provided as part of the basic service.

1.4.1.1
Redirection

Incentive Lettermail items that cannot be delivered as originally addressed because the addressee has moved will be redirected to the addressee at no extra charge while there is a Change of Address Notification (COAN) in effect.

Mail bearing the name of the addressee followed by the words “OR OCCUPANT” or similar wording, or mail bearing a non-personalized descriptor, including “OCCUPANT”, will not be redirected. In such cases, the item will be delivered to the original destination address.

1.4.1.2
Return to Sender

Incentive Lettermail items that are undeliverable, or if no Change of Address Notification (COAN) is in effect, will be returned to the sender at no extra charge if a Canadian return address appears on the outside of the item. When the return address is on the inside of the item, it will be returned to the Customer for a fee.

1.4.2

Options

An option is a service enhancement that is not provided automatically as part of the basic service.

1.4.2.1
Do Not Forward

Do Not Forward is an option whereby an Incentive Lettermail item, which cannot be delivered as addressed because the addressee has filed a Change of Address Notification (COAN) with Canada Post, shall be returned to the sender and not forwarded to the addressee.

Do Not Forward is:

  • subject to the Do Not Forward fee as specified in the Lettermail Price Sheet posted at canadapost.ca/prices. This fee will be applied to every item in the mailing that is endorsed with the Do Not Forward option regardless of the number of actual returned items.
  • available for Incentive Lettermail Customers using Electronic Shipping Tools 2.0 or the Online version of EST to create an electronic Order (Statement of Mailing). Incentive Lettermail Customers can pay for the Do Not Forward option by postage meter, account or credit card
  • subject to the Terms and Conditions for Incentive Lettermail.

Incentive Lettermail Customers wishing to use the Do Not Forward option must:

  1. Use Electronic Shipping Tools 2.0 or the Online version of EST to add the Do Not Forward option to an Order (Statement of Mailing), and
  2. Apply the Do Not Forward endorsement (see Figure 1) to the front of each mail item (placed to the left and above the destination address, or in the upper left-hand corner below the return address). The Do Not Forward endorsement can be downloaded from canadapost.ca/indicia
Figure 1:

If paying by postage meter, the Do Not Forward endorsement may be printed as part of the slogan or the advertisement to the left of the meter impression (see example in Figure 2).

Figure 2:
NOTE:
Do Not Forward mailings may be combined on the same Order (Statement of Mailing) as other mailings; however, Do Not Forward items must be placed in separate containers from other mailings on the Order.

1.4.3

Undeliverable Incentive Lettermail Items

Incentive Lettermail items are treated as undeliverable if:

  • the item does not bear a complete and valid address
  • the item is addressed to a non-existent address
  • the item is refused by the addressee
  • delivery is prohibited by law
  • the item cannot otherwise be delivered to the address.

Undeliverable Incentive Lettermail items that cannot be redirected will be returned to the sender at no extra charge if a Canadian return address appears on the outside of the item. When the return address is on the inside of the item, it will be returned to the Customer for a fee.

For more information, consult the Undeliverable Mail section of the Canada Postal Guide.

2

Content, Format and Physical Characteristics

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To be eligible to use the Incentive Lettermail service, the items mailed must meet the criteria specified for the Incentive Lettermail service and must be prepared for mailing in such a manner as to prevent loss or damage to any item and permit easy verification of each item. See section 5 “Criteria for Qualification” in the General Terms and Conditions.

Items submitted as Incentive Lettermail that do not meet the content, format and physical characteristics specified for Incentive Lettermail service and the various mail preparation and other requirements outlined in this Agreement, may be subject to price adjustments and/or surcharges or may not qualify for Incentive Lettermail services and prices. See section 6 “Surcharges” in the General Terms and Conditions.

Visit canadapost.ca/surcharges for additional information on surcharges.

2.1

Content

Canada Post reserves the right to request samples of the items covered by the Agreement for the purposes of testing, (i.e. to determine their acceptability for processing and transmission by post and that they otherwise meet the applicable requirements).

2.1.1

Enclosures

Incentive Lettermail can include enclosures, as long as they do not impede with mechanized processing. Non-paper enclosures must be pre-approved, with the exception of plastic cards that meet the flexibility and firmness requirements outlined in the Canada Post Postal Standards. Adhesive repositionable notes can be adhered to an Incentive Lettermail item. Visit canadapost.ca/tools/pg/standards/PSMach-e.pdf for more information.

2.1.2

Non-Mailable Matter

Generally, non-mailable matter means any items that:

  • is prohibited by law (e.g., illegal, obscene, fraudulent)
  • is non-mailable due to the fact that it fails to meet certain physical characteristics (see section 2.3) or marking requirements (see section 2.2.2)
  • contains products or substances that could:
  • cause injury to those handling the mail
  • cause damage to postal equipment or other items
  • cause entrapment of other items.

Any item bearing a modified postage stamp in contravention of section 52, or bearing a word or mark in contravention of section 58, of the Canada Post Corporation Act and Regulations is also non-mailable matter. Dangerous substances or articles prohibited by law are not acceptable as Incentive Lettermail.

It is the Customer’s obligation to ensure an item does not constitute non-mailable matter and is otherwise acceptable for mailing. For information on how non-compliant items will be handled, refer to the Incentive Lettermail Terms and Conditions.

Visit “Non-mailable Matter” in the Canada Postal Guide for more information.

2.1.2.1
Solicitations by Mail

Solicitations (offers) having the general appearance of a bill, invoice, or statement of account where there is no obligation to make a payment in relation to the offer unless accepted, must adhere to the regulatory obligations detailing wording and format requirements. For the official requirements of the Solicitations by Mail Regulations made under the Canada Post Corporation Act, go to http://laws.justice.gc.ca/en/showtdm/cr/C.R.C.-c.1295.

2.2

Format

Each item in an Incentive Lettermail mailing must be identical in design and physical characteristics. However:

  • the weight, thickness and the colour of the exterior covers may vary; however, colours such as dark blue, red, black, dark green and dark brown should be avoided
  • Standard items cannot be mailed in transparent wrapping
  • Standard items must be rectangular with a maximum length to height ratio of 2.6:1 and a minimum of 1.3:1
  • Standard and Oversize (O/S) items must be sealed on all sides
  • Oversize (O/S) Machineable and Presort Lettermail must be rectangular
  • the aspect ratio does not apply to Oversize (O/S) Machineable and Oversize (O/S) Presort Lettermail
  • Oversize (O/S) items can be mailed in closed transparent wrapping as long as the address label is under or affixed to the plastic film. If the plastic is such that it cannot be written upon, the plastic film should have a 20 mm-wide white opaque band. The address label should be large enough to accommodate postal endorsements. If the closed transparent material can be written upon, a sample of the envelope must be submitted to Canada Post for testing and approval.

2.2.1

Addressing

Each Incentive Lettermail item should be addressed to a specific individual or a company. The item can also be addressed to “OCCUPANT”, “BOX HOLDER”, “RESIDENT” or any other similar descriptor. Each item must include the complete mailing address, including the valid Postal CodeOM for that address.The address location and window location must be the same on all items.

The destination address format and location must be in accordance with the Addressing Guidelines of the Canada Postal Guide and the specifications set out in the Machineable Postal Standards.

2.2.1.1
Return Address

The return address can vary, provided that either the address or the name or logo of the company to which items are to be returned remains constant. If a mailing consists of items from various applications from the same parent company [i.e. ABC Corporation (parent company) for ABC Telephone, ABC Audio] the return addresses and the logos may be different provided that the mailings can be linked to the parent company.

Only Canadian return addresses are acceptable and only one (1) return address is permitted. The return address format and location must be in accordance with Addressing Guidelines of the Canada Postal Guide and the specifications set out in the Machineable Postal Standards.

Return address must be located either:

  • on the same side of the item as the delivery address, in the upper left-hand corner (preferred location); or
  • on the back of the item, near the top edge and centred between the left and right edges.
Figure 3: Example of return addresses

Address windows on Incentive Lettermail must be located and covered in a manner that meets the applicable requirements as established in the Machineable Postal Standards.

For more information on addressing, visit Addressing Guidelines of the Canada Postal Guide.

2.2.2

Markings

Customers may use the “Delivered by” logo on items delivered by Canada Post with the prior written consent of the Director, Marketing and Brand, or her/his designate. They can be contacted at info.brand@canadapost.ca. Visit canadapost.ca/logo for available artwork.

Customers with a Standing Offer Agreement may use Canada Post postal indicia on items delivered by Canada Post without prior authorization. Visit canadapost.ca/indicia for the requirements, artwork and the specifications.

Any use by the Customer must then be only in strict accordance with the consent granted. Any unauthorized use is an offence under the Canada Post Corporation Act and Regulations as well as an infringement of Canada Post's trade-marks and official marks.

Note that an item will be considered non-mailable matter if, on the outside, it is marked or labelled with any of the following that were not provided or authorized by Canada Post:

  • any design likely to be mistaken for a postage stamp, meter impression, service label or any other mark suggesting that postage has been paid
  • any label or endorsement implying that it will be given special handling, delivered faster or be provided with any service that has not been purchased by the Customer. (However, Customers may include labels on items that are directed to the addressee as an instruction that is clearly related only to the enclosure and would not otherwise result in the item being non-mailable matter. Examples of acceptable wording include “URGENT”, “RUSH” and “IMPORTANT COMMUNICATIONS ENCLOSED”), and
  • any facsimile of any label, endorsement or marking used by Canada Post that might cause confusion so as to affect its handling, e.g., confusion as to the service the Customer has paid for.

It is the Customer’s obligation to obtain approval for any proposed endorsement or other markings from Canada Post prior to printing.

NOTE:
In no event may third parties use or replicate the tagline “From anywhere… to anyone™”. This tagline is Canada Post’s corporate tagline and is reserved for the exclusive use of Canada Post. No third parties will be granted permission to use or replicate this tagline or permitted to create a “spin-off” of this tagline.

2.3

Physical Characteristics

Each item of an Incentive Lettermail mailing must be completely sealed, rectangular in shape, and meet the following size and weight specifications. The longest dimension is the “length”, the shortest is the “width”.

Table 1: Size and Weight – Incentive Lettermail
Category
Length
Width
Thickness
Aspect Ratio*
Weight
Machineable
Presort
Standard Machineable / Presort
Envelope/Self-mailer**
min.
140 mm
(5.5 in)
90 mm
(3.5 in)
0.18 mm
(0.007 in)
1.3 :1
3 g
(0.1 oz)
3 g
(0.1 oz)
max.
245 mm
(9.6 in)
156 mm
(6.1 in)
5 mm
(0.2 in)
2.6 :1
50 g
(1.8 oz)
50 g
(1.8 oz)
Card
min.
140 mm
(5.5 in)
90 mm
(3.5 in)
0.18 mm
(0.007 in)
1.3 :1
Can vary, according to grammage of paper used and size of card. Visit canadapost.ca/postalstandards for more information.
max.
235 mm
(9.2 in)
120 mm
(4.7 in)
5 mm
(0.2 in)
2.6 :1
Oversize (O/S) Machineable
Envelope/Self-mailer/Card
min.
140 mm
(5.5 in)
90 mm
(3.5 in)
0.5 mm
(0.02 in)
-
10 g
(0.36 oz)
5 g
(0.18 oz)
max.
380 mm
(15.0 in)
270 mm
(10.6 in)
20 mm
(0.8 in)
-
500 g
(18 oz)
500 g
(18 oz)
Oversize (O/S) Presort
Envelope/Self-mailer
min.
140 mm
(5.5 in)
90 mm
(3.5 in)
0.18 mm
(0.007 in)
-
10 g
(0.36 oz)
5 g
(0.18 oz)
max.
380 mm
(15.0 in)
270 mm
(10.6 in)
20 mm
(0.8 in)
-
500 g
(18 oz)
500 g
(18 oz)
*
Aspect ratio is the ration of length to width.
**
A self-mailer is any item that does not have an outer cover, wrapping or envelope in addition to the paper or material on which the communication is placed.

3

Preparing the Mailing

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Proper mail preparation is important to ensure that Incentive Lettermail items are processed and delivered efficiently. Adjustments and/or surcharges may be applied to improperly prepared mailings.

3.1

Mail Preparation and Presortation

Mail preparation is the process of facing and containerizing the items and labelling the containers. It helps ensure machineability of mail (where applicable), protection of mail, identification of the type of mail and ease of handling.

Mail presortation is the process of sequencing, grouping and containerizing the items and labelling the containers to allow Canada Post to bypass various processing steps and facilities within its mail distribution network.

Visit canadapost.ca/mailpreparation for more information on mail preparation and presortation.

3.2

Summary of Options and Key Requirements

3.2.1

Machineable Mail

3.2.1.1
Machine Readability Requirements and Evaluation of Samples

Items prepared and submitted as Machineable Incentive Lettermail must meet certain requirements, including machineability and readability of items.

Our Machineable Postal Standards include both machineability and readability requirements.

A readability target of 95% for Standard and 85% for Oversize (O/S) is required in order to avoid a price adjustment or surcharge.

For read rates between 80% and 95% for Standard and 70% and 85% for Oversize (O/S), full price will be applied to the portion of mail between the Customer’s read rate and the target read rate.

For read rates that are less than 80% for Standard and 70% for Oversize (O/S), full price will be applied to the entire mailing. Visit canadapost.ca/surcharges for information on surcharges.

To reduce the risk of price adjustments and/or surcharges and permit efficient mail processing through Canada Post’s automated processing equipment, it is recommended that Customers use Canada Post’s free evaluation service to test the machineability/readability of their items. The Customer remains responsible to meet all applicable requirements.

Customers wishing to have their items assessed for machineability and readability should contact a Commercial Service Network (CSN) representative at 1.866.757.5480. Once the Customer has contacted the CSN, they may have their mail assessed by:

  • submitting an electronic version of their mail item for a visual assessment of the mail item’s elements
  • submitting 200 samples of the final version for testing on machineability and obtaining read rates.

Visit canadapost.ca/postalstandards for more information.

3.2.1.2
Machineable Mail (MM) Mail Preparation Option

Machineable Mail (MM) is mail that is prepared in such a way that it can be processed through Canada Post’s automated mail processing equipment.

Table 2: Machineable Mail (MM) - Standard
Key Requirements
  • To access Incentive Lettermail prices, Customers must submit an Order (Statement of Mailing) electronically using the Canada Post EST
  • A minimum of 5,000 identical items per deposit (phantom pricing is available at the Machineable Standard base price)
  • Must achieve a minimum readability target of 80% on the Multi-Line Optical Character Reader (MLOCR) to access the Machineable price
  • Must achieve a readability target of 95% on the Multi-Line Optical Character Reader (MLOCR) in order to avoid a price adjustment or surcharge
  • It is recommended that Customers use Canada Post’s evaluation service for mail samples to test the machineability/readability of their items
  • A Statement of Accuracy (SOA) is required
  • Must meet the postal standards as set out in the Postal Standards – Lettermail and Incentive Lettermail
    Visit canadapost.ca/postalstandards for more details
  • Must be deposited at approved Canada Post sites for Machineable Mail
  • Must meet the mail preparation requirements as set out in the Mail Preparation and Presortation Guide.
    Visit canadapost.ca/mailpreparation for more details*
*
If a full monotainer/pallet of Machineable Mail is deposited at the destination plant that will be processing the mail, there is no need to label each container. Canada Post only requires the monotainer/pallet to be identified as “STANDARD LETTERMAIL MACHINEABLE” and “OVERSIZE LETTERMAIL MACHINEABLE”. This does not apply to monotainers with mixed Lettermail services.
Table 3: Machineable Mail (MM) - Oversize (O/S)
Key Requirements
  • To access Incentive Lettermail prices, Customers must submit an Order (Statement of Mailing) electronically using the Canada Post EST
  • A minimum of 5,000 identical items per deposit (phantom pricing is available at Machineable Oversize (O/S) base price)
  • Must achieve a minimum readability target of 70% on the Flat Sortation Machine (FSM) in order to access the Machineable price
  • Must achieve a readability target of 85% on the Flat Sortation Machine (FSM) in order to avoid a price adjustment or surcharge
  • It is recommended that Customers use Canada Post’s evaluation service for mail samples to test the machineability/readability of their items
  • A Statement of Accuracy (SOA) is required
  • Must meet the postal standards as set out in the Postal Standards – Lettermail and Incentive Lettermail
    Visit canadapost.ca/postalstandards for more details
  • Must be deposited at approved Canada Post sites for Machineable Mail
  • Must meet the mail preparation requirements as set out in the Mail Preparation and Presortation Guide.
    Visit canadapost.ca/mailpreparation for more details*
*
If a full monotainer/pallet of Machineable Mail is deposited at the destination plant that will be processing the mail, there is no need to label each container. Canada Post only requires the monotainer/pallet to be identified as “STANDARD LETTERMAIL MACHINEABLE” and “OVERSIZE LETTERMAIL MACHINEABLE”. This does not apply to monotainers with mixed Lettermail services.

3.2.2

Presort Mail

Table 4: Presort Mail – Standard
Key Requirements
  • To access Incentive Lettermail prices, Customers must submit an Order (Statement of Mailing) electronically using the Canada Post EST
  • A minimum of 500 identical items per deposit
  • A Statement of Accuracy (SOA) is required*
  • Delivery Mode Code (DMC) on each item*
  • Mailing must be prepared using current version of Canada Post-recognized presortation software
  • Meets the postal standards as set out in the Postal Standards – Lettermail and Incentive Lettermail.
    Visit canadapost.ca/postalstandards for more details
  • Meets Standard Presort requirements
  • Mailing Summary must be provided
  • Mailing Details is required upon request by Canada Post. The Mailing Summary and Mailing Details may be provided electronically through the EST.
  • Must meet the mail preparation requirements as set out in the Mail Preparation and Presortation Guide.
    Visit canadapost.ca/mailpreparation for more details
*
Customers who deposit Standard Presort mail in Non-Letter Carrier offices (not serviced by Letter Carriers) for delivery within that same office, are exempt from Address Accuracy and Delivery Mode Code (DMC) requirements. All other requirements to access the Presort service option must be met.
Table 5: Presort Mail - Oversize (O/S)
Key Requirements
  • To access Incentive Lettermail prices, Customers must submit an Order (Statement of Mailing) electronically using the Canada Post EST
  • A minimum of 500 identical items per deposit
  • A Statement of Accuracy (SOA) is required
  • Delivery Mode Code (DMC) on each item
  • Mailing must be prepared using current version of Canada Post-recognized presortation software
  • Meets the postal standards as set out in the Postal Standards – Lettermail and Incentive Lettermail.
    Visit canadapost.ca/postalstandards for more details
  • Meets Oversize (O/S) Presort requirements
  • Mailing Summary must be provided
  • Mailing Details is required upon request by Canada Post. The Mailing Summary and Mailing Details may be provided electronically through the EST.
  • Must meet the mail preparation requirements as set out in the Mail Preparation and Presortation Guide.
    Visit canadapost.ca/mailpreparation for more details

3.3

Address Accuracy

Address Accuracy is a program designed to improve delivery by encouraging Customers to accurately address mail. Every item must be addressed to a specific individual or a company. Each item must have a complete mailing address, including any required suite or unit information as well as the valid Postal CodeOM for that address. If the mailing address is not complete, the mail may be delayed or returned.

Consistent and accurate addressing eliminates the need for extra handling and/or redelivery. For Customers, this translates into a more efficient service and lower costs. Accurate addressing helps ensure the mail is delivered on time, every time.

For Incentive Lettermail, participation in the Address Accuracy Program is mandatory. The minimum volume threshold for Address Accuracy is 5,000 items for Machineable and 500 items for Presort.

The standard for Address Accuracy is 95%. This means that 95% of the addresses on the Customer’s database are determined to be valid when compared to the Canada Post database. This is done by using Canada Post-recognized software that performs address validation and/or address validation and correction or by using a mail service provider who offers this service. If the percentage on the Statement of Accuracy (SOA) produced by the software is less than 95%, an adjustment will be applied to the mailing.

Adjustments are calculated as follows:

 
Volume of Mail x (95% minus Customer’s Actual Address Accuracy %) x Maximum* $0.05 = Total Adjustment

For example, on a mailing of 15,000 items of Machineable Lettermail (30 g) at a price of $0.50 per item (full Lettermail price is $0.52) with an Address Accuracy rate of 91% the adjustment would be:

 
15,000 x (95%-91%) x $0.02 = $12.00 adjustment added to the cost of the mailing
*
Adjustment rate, when added to the incentive price, cannot exceed current Lettermail full price.
NOTE:
The above calculation is for illustration purposes only and does not represent actual Incentive Lettermail prices.

Canada Post encourages Customers to use services such as the Smart Data™ Cleaner online tool to clean and standardize their address lists while removing addresses that are undeliverable, duplicated, or incorrect. For more information and to get a free diagnostic, visit canadapost.ca/smartdatacleaner.

A Statement of Accuracy (SOA) is used to report the percentage of accurate addresses on a mailing list. The SOA must be generated a minimum of once a year but is encouraged more frequently to help reduce the number of undeliverable mail items. A Statement of Accuracy (SOA) includes the following information:

Statement of Accuracy (SOA)
  1. Customer Name and Address
  • The Customer’s company name and mailing address.
  1. Canada Post Customer Number
  • The Customer’s seven-digit number found on their Canada Post contract.
  1. Total Number of Records Processed
  • The total number of records (or addresses) included in the evaluation, which must be equal to or greater than the number of items being deposited.
  1. Address Accuracy Level
  • The Address Accuracy level indicates the percentage of accurate urban and rural addresses. This percentage is always calculated to one decimal place.
4.1 Questionable Apartment Addresses
  • If a mailing address does not have a unit number and there are no unit numbers available in the Canada Post database, the address is recognized as Valid but reported as Questionable.
4.2 Questionable Rural Addresses
  • If the mailing address is recognized as Valid based solely on the Postal Code, the address is reported as Questionable. In order to be complete, rural addresses must include delivery mode (e.g. RR), civic/street range or PO Box.
  1. Address Accuracy Expiry Date:
    yyyy/mm/dd
  • The expiry date of the Address Accuracy percentage is always one year from the date the SOA was produced.
  1. Software Company Name and Software Version
  • The name of the software company used to evaluate the database, as well as the software version, are required. Only current versions produced by recognized software vendors are accepted.
  1. Canada Post Address Data Used yyyy/mm/dd
  • The effective date of the Address Data used (current version required).

Customers must record their Address Accuracy percentage and expiry date obtained from their Statement of Accuracy (SOA) on their Order (Statement of Mailing). Failure to record the Address Accuracy percentage and expiry date on the Order (Statement of Mailing) will result in the application of an adjustment to the cost of the mailing using 56% as the Customer’s Address Accuracy percentage.

Customers are requested to keep a valid copy of the Statement of Accuracy (SOA) on file in the event that Canada Post requests a copy.

More information on the Address Accuracy Program can be found at canadapost.ca/am or from a Canada Post Representative.

4

Depositing the Mailing

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4.1

Prior to Depositing

4.1.1

Scheduling

Deposits to Canada Post’s processing plants are governed by pre-arranged local requirements. These requirements include, but are not limited to, advance notification, scheduling and work content.

Customers may be requested to provide a mailing plan and/or deposit schedule that includes details of the mailing (such as volume, time, day of deposit, etc.). This information will help efficient deposit and processing of Customers’ mailings.

4.1.2

Creating an Order (Statement of Mailing)

An Order (Statement of Mailing) must be properly completed and submitted using the EST online or the Electronic Shipping Tools 2.0. Use of the EST to prepare and submit an Order (Statement of Mailing) is mandatory to access Incentive Lettermail Contract prices.

Two (2) printed copies of the Order (Statement of Mailing) prepared electronically must be provided to an authorized Canada Post Representative at a postal facility approved by Canada Post at the time of mailing.

4.1.2.1
Electronic Order (Statement of Mailing) - Electronic Shipping Tools (EST)

The EST software is free of charge and can be accessed through the Business segment of the Canada Post website at canadapost.ca/newuser. Customers must register once in the Business segment of the website to access the EST. For technical enquiries, Customers can call the Technical Help Line at 1.800.277.4799.

An Order (Statement of Mailing) must be prepared and submitted using the EST online, or the Electronic Shipping Tools 2.0 version, which can be downloaded to prepare Orders (Statements of Mailing) offline and submitted later. This method reduces paperwork and opportunities for error, while providing added Customer convenience.

To further assist, an optional import file functionality is now available for Machineable and Presort Lettermail. Once the file is imported using the Desktop version of the EST, EST will assist in consolidating line items by weight category and product article on the Order (Statement of Mailing). The import of these files is available using the Desktop version of the EST.

4.1.3

Mailing Summary and Mailing Details

These documents are required for Presort mail only.

The Mailing Summary includes general information regarding the Customer and the presortation software used for the mailing. The Mailing Summary is automatically generated by the presortation software and must be submitted with each deposit. A Mailing Summary and Mailing Details may be provided electronically through the EST or the Electronic Shipping Tools 2.0 when using the optional Presort Import functionality.

The Mailing Details document includes a detailed breakdown of the mail preparation and presortation information and is only required upon request by Canada Post.

Canada Post and the SERP (Software Evaluation Recognition Program) vendors have developed a file import functionality, the Presort Mailing Plan Import Program, which reduces the amount of data that a Customer needs to enter when completing Orders (Statements of Mailing). This file will help Customers consolidate their line items, by weight category and product article into the Electronic Shipping Tools (EST). The functionality allows Customers to import their Mailing Plans directly into the EST, using both the Electronic Shipping Tools 2.0 and the Online versions. The SERP software will continue to generate the hard copy Mailing Summary and Mailing Details reports which will only be required upon request by Canada Post.

Visit canadapost.ca/presortationsoftware for a list of recognized presortation software vendors.

4.1.4

Partial Mailings

If an Incentive Lettermail mailing is inducted in more than one (1) deposit:

  • the total mailing cost must be reflected in the first Order (Statement of Mailing) accompanying the first partial deposit of the mailing. The Customer will be invoiced for the total mailing as declared on the first Order (Statement of Mailing)
  • the first Order (Statement of Mailing) must be deposited with the first partial mailing. A copy of this Order (Statement of Mailing) must accompany each subsequent individual partial mailing
  • each applicable copy of the Order (Statement of Mailing) must state “PARTIAL MAILING”. The Customer must select the “Partial Mailing” option if using EST
  • each individual partial shipment deposit, with the exception of the last one, must meet the minimum deposit requirement for the product (5,000 items for Machineable and 500 items for Presort)
  • all partial mailings within an Order (Statement of Mailing) must be deposited within seven (7) calendar days. Any partial deposit that does not meet the 7-day window will require a new Order (Statement of Mailing)
  • all deposits of the Partial shipment Order (Statement of Mailing) must be made at the same deposit location.

4.1.5

Weight Identification

A mailing may be comprised of items of varying weights (including items above and below the base weights). In such cases, the Customer must identify the number of items within each weight category.

Customers who use the Presort Import option to upload the Mailing Summary and Mailing Details in EST must specify if their mailing is in one (1) or multiple weight categories. For mailings with multiple weight categories, it is recommended that the Presort Import option not be used.

4.1.5.1
Weighted Average Weight

The Customer may choose to enter information on the Order (Statement of Mailing) using the weighted average weight per item. If weighted averages are used, separate average weights must be calculated and entered on the Order (Statement of Mailing) for each of the following weight categories:

 
Weight Categories
Standard
up to 30 g
over 30 g up to 50 g
Oversize (O/S)
up to 100 g
over 100 g up to 500 g

Example: 5,000 items of Standard Presort; 2,500 items weigh 30 g and 2,500 items weigh 20 g. Therefore, the weighted average would be 5,000 at 25 g.

Weighted average weight = Total weight of all items divided by total number of items.

Table 6: Weighted Average Weight Calculation
Presort
A
B
C
D
Number of Items
Weight per Item
Total Weight
Total (C) Divided by Total (A)
= Weighted Average Weight
 
2,500
30 g
75,000 g
 
 
2,500
20 g
50,000 g
 
Total
5,000
 
125,000 g
25 g

4.2

At the Time of Deposit

4.2.1

Where to Deposit

All Incentive Lettermail items must be deposited with an authorized Representative at a postal facility approved by Canada Post.

Items deposited after the Canada Post-approved postal facility cut-off times are considered as being deposited on the next business day. Visit canadapost.ca/cutofftimes for the list of facility cut-off times.

Machineable Incentive Lettermail must be deposited at an approved Canada Post machineable induction location. Visit canadapost.ca/mailpreparation under “Induction Locations and Cut-off Times” for the list of approved sites.

Incentive Lettermail items cannot be deposited in street letter boxes or other mail receptacles. Each deposit must be accompanied by an Order (Statement of Mailing).

5

Pricing

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5.1

Incentive Lettermail Pricing

In order to access Incentive Lettermail prices, the Customer must meet all applicable requirements, including specifications, Address Accuracy, and mail preparation and presortation requirements for Incentive Lettermail, as outlined in this Agreement.

Refer to the Lettermail Price Sheet at canadapost.ca/ilmsupportdocuments for the applicable published prices.

5.1.1

Minimum Volume and Phantom Pricing

Customers may deposit less than the minimum volume requirement provided that the difference between the actual volume and the minimum volume is entered and paid for at the phantom price.

NOTE:
The phantom price is only available for single deposits (not available on partial mailings).

5.1.2

Progressive Pricing

This rating process means that the price will be calculated according to the exact weight of the item instead of by weight level. It applies to Incentive Lettermail Standard items over 50 g up to 100 g (Presort only) and for Oversize (O/S) Machineable and Presort over 100 g up to 500 g.

6

Incentive Lettermail Specific Terms and Conditions

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6.1

Payment Terms

For general payment terms, see Paying For Your Mailing.

6.2

General Terms and Conditions

See General Terms and Conditions, which are modified as follows:

Add:

25 Ownership of Mail

The Customer agrees that Items mailed under this Agreement will be mailed only on the Customer's or its Authorized User's behalf, and that Items will not include commingled mail, being consolidated mail of a type or from sources other than those approved by Canada Post.




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