MPA Statement on USPS Exigent Rate Surcharge Rollback
April 11, 2016
The long-awaited and much-anticipated postal exigency surcharge rollback is here! At 12:01 AM Sunday, the Postal Service removed the 4.3 percent exigent rate surcharge implemented in January 2014 for market dominant mail classes, including Periodicals. This rollback will save publishers more than $60 million over the next year in Periodicals postage. First-Class mail and standard mail rates will also be reduced, generating additional savings.
This historic reduction in postage rates is the first since 1919 and is the result of the Postal Regulatory Commission's and U.S. Court of Appeals' agreement with MPA's position that an "exigency" increase cannot be permanent.
As we've mentioned before, we are not completely out of the woods. The Postal Service's appeal of the Commission's most recent decision is still pending in the U.S. Court of Appeals, and USPS is also working on Capitol Hill to try and reinstate the exigent surcharge. And of course, the statutory ten year review of the CPI price cap looms, and on Friday the Postal Service petitioned the Commission to begin the review early.
Vigorously fighting for affordable postage rates remains a major long-term priority for MPA. We are happy that all of our collective efforts on the exigency front ensured the exigency rollback made it into the "win" column.