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Form 3501 to the Classification and Special Services Division, Bureau of Operations, for advice and instructions before taking further action.

(g) Payment of postage at time of mailing or by advance deposits. Publishers must pay in money before the mailings are dispatched all postage charged at the second-class rates shown in § 132.1 of this chapter. Exception:

The transient rate (§ 132.1(c) of this chapter) must be paid by adhesive or meter stamps or by permit imprints. (See §§ 144.3 (b) and 144.5(a)(2) of this chapter.) Postmasters will accept deposits of money to pay for as many mailings as desired and will give the publishers receipts on Form 3544 for the deposits.

(h) Record of mailings. Postage on the bulk mailings will be computed on Form 3541 from the weights obtained on Form 3542. The publisher will be furnished a duplicate of Form 3541 if he requests one. When postage is computed on the bulk weight of one issue, the mailings and postage will be recorded in Form 3543 (special), Record of SecondClass Postage. When postage is computed at the end of each calendar month on the total weight of all issues mailed during the month, the total mailings and postage for the month will be computed on one Form 3541, and only the totals will be recorded in Form 3543.

(i) How to show dates of issue and mailing. When a number of consecutive issues are covered by one Form 3541 or Form 3542, or by one entry in Form 3543, the dates of issue and the dates of mailing must be indicated by entering the first and last dates in the appropriate spaces and columns.

[26 F.R. 11531, Dec. 6, 1961, as amended at 29 F.R. 561, Jan. 28, 1964. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

§ 126.7 Key rate.

(a) Authority to use. Postmasters will use the key rate method of computing pound-rate postage on publications subject to the advertising zone rates when large mailings justify its use.

(b) Statement showing mailings to each zone. The publisher must submit once each calendar year, at 12-month intervals, a statement on Form 3542 show

ing the number of subscribers' copies of an issue mailed to each zone. During these 12-month intervals, the publisher does not need to complete the lines for zones 1 to 8 on Form 3542. He enters only total zone mailings on "Total to all zones" line.

(c) New zone statement. Postmasters will require a new report on Form 3542 showing the mailings to each zone at any time during the 12-month intervals when the volume of mailings to the zones varies or when there is an increase in the total number of copies.

(d) Computation. (1) Compute the key rate on Form 3541 once each calendar year at 12-month intervals, using the subscribers' copies shown by zones on Form 3542 furnished in accordance with paragraph (b) of this section. If a new report on Form 3542 is filed at any time during the 12-month intervals showing mailings to each zone, a new key rate must be computed and used.

(2) Enter on the corresponding lines in column B of Form 3541 the number of copies for each zone shown on Form 3542. Apply the applicable pound rates shown in column F to the number of copies for each zone and enter the postage for each zone in column C of Form 3541. Divide the total postage in item 2, column C, by the total number of copies in item 2, column B, to obtain the key rate, which should be carried to six decimal places. Apply the key rate only to the total weight of the advertising portion. Apply the regular reading portion rate to the total weight of the reading portion. Computation of the key rate must be verified by an employee or supervisor other than the person who originally computed it. See Exhibit A below.

(3) Prepare Form 3541 for subsequent mailings as shown on Exhibits B and C below until a new report on Form 3542 showing mailings to each zone is filed under paragraph (b) or paragraph (c) of this section. Where a key rate has been developed and is being used to compute postage for subscribers' copies, postage on sample copies shall be determined by using the same key rate unless the transient rate is chargeable (see §§ 132.1(c) and 132.4(f) (1) of this chapter).

EXHIBIT A- -COMPUTATION OF NEW KEY RATE

FORM 3542

POST OFFICE DEPARTMENT

STATEMENT SHOWING NUMBER OF COPIES OF SECOND-CLASS OR CONTROLLED CIRCULATION PUBLICATION MAILED

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When postage is computed at the key rate, the lines for Zones 1 to 8 need not be completed except for one issue each calendar year at 12-month intervals. The total zone mailings must be entered on the "Total to All Zones" line during the twelve-month intervals.

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EXHIBIT B-COMPUTATION OF POSTAGE BASED ON MAILINGS OF ONE ISSUE ONLY

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COMPUTATION OF POSTAGE BASED ON MAILINGS OF ONE ISSUE ONLY-Continued

FORM 3541

POST OFFICE AND STATE Mayville, Maryland

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66-086-67-5

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