[Federal Register Volume 61, Number 67 (Friday, April 5, 1996)]
[Proposed Rules]
[Pages 15205-15206]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-8383]



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POSTAL SERVICE

39 CFR Part 111


Deposit of Mail With Insufficient Postage

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would revise the Domestic Mail Manual (DMM) 
regarding the treatment of mail with insufficient postage that is 
deposited for delivery. Currently, mail deposited with no postage is 
returned to the sender without an attempt at delivery, whereas mail 
deposited with insufficient postage is marked ``POSTAGE DUE'' and 
delivered to the addressee upon payment of the charges marked on the 
mail. If a sender deposits 10 or more pieces of shortpaid mail, the 
accepting post office may contact the sender to obtain payment of the 
additional postage prior to dispatch.
    The proposed rule would treat mail with no postage and insufficient 
postage alike: such mail generally would be returned to the sender 
without an attempt at delivery. As is currently the case with mail 
bearing no postage, mail displaying no return address or a return 
address that is actually the address of the intended recipient would be 
sent to a Postal Service mail recovery center.

DATES: Comments must be received on or before May 20, 1996.

ADDRESSES: Written comments should be mailed or delivered to Manager, 
Revenue Assurance, USPS Headquarters, 475 L'Enfant Plaza SW., 
Washington, DC 20260-5237. Copies of all written comments will be 
available for inspection and photocopying between 9 a.m. and 4 p.m., 
Monday through Friday, in Room 8831 at the above address.

FOR FURTHER INFORMATION CONTACT: Rita W. Crawford, (202) 268-2831.

SUPPLEMENTARY INFORMATION: Current regulations allow the Postal Service 
to mark shortpaid mail ``POSTAGE DUE'' and collect the amount due from 
the addressee or return the mail to the sender for additional postage 
after delivery is attempted. Societal changes have rendered this 
procedure impractical. Letter carriers are often unable to find an 
individual who can

[[Page 15206]]
pay for postage due at home during normal business hours. Furthermore, 
a steadily increasing percentage of mail is delivered to receptacles 
that are not immediately adjacent to a dwelling, such as grouped 
receptacles in the lobby of an apartment building. Often postage is not 
collected and the mail must be returned to the sender, causing that 
mail to be delayed in reaching the intended recipient. To improve 
customer service and avoid such delays, this proposed rule would allow 
the Postal Service to immediately return shortpaid mail for additional 
postage so that it can be resent and reach the addressee more 
expeditiously than under the current procedures.
    Additionally, the Postal Service has been victimized by numerous 
schemes to mail letters with insufficient postage. Much of this loss 
comes from the deposit of letters for delivery as regular First-Class 
Mail with only 6 cents or less in postage affixed. The Postal Service 
must recoup lost postage from mailings by customers who pay the proper 
rate of postage. In such situations, it can be extremely difficult and 
time-consuming for a letter carrier to attempt to collect postage due. 
As a result, postage due on shortpaid mail frequently is not collected, 
despite the effort and expense incurred to attempt delivery to the 
addressee.
    The proposed rule would treat shortpaid mail in the same manner as 
mail without any postage. Both forms of mail generally would be 
returned to the sender without any attempt at delivery. Thus, schemes 
to mail letters with insufficient postage would no longer be effective. 
As is currently the case with mail bearing no postage, mail displaying 
no return address, or a return address that is, in fact, the address of 
the intended recipient, would be sent to a Postal Service mail recovery 
center.
    In some recent incidents, postal employees have mistakenly treated 
mail bearing proper postage at a discounted rate as shortpaid mail. An 
aggressive campaign is under way to ensure that all employees who 
handle mail can distinguish between discounted rate mail and shortpaid 
mail. The proposed rule is meant to apply only to mail that is 
genuinely shortpaid, and the Postal Service will take all steps 
necessary to see that the rule is implemented accordingly.
    Existing DMM sections P011.1.3, 1.4, and 1.7 (renumbered as 1.5) 
are retained as exceptions to the general rule described above. 
Proposed new section 1.6 is added to reflect current policy and states 
clearly that additional postage for disqualified bulk or presort rate 
mailings is collected from the mailer prior to dispatch. Proposed new 
section 1.7 is added as a final exception, and provides that shortpaid 
mail may be delivered to addressees who have made arrangements with 
their postmasters to pay the postage due.
    In consideration of the foregoing, the Postal Service proposes to 
amend DMM P011 as set forth below.
    Although exempt from the notice and comment requirements of the 
Administrative Procedures Act (5 U.S.C. 553(b), (c)) regarding proposed 
rulemaking by 39 U.S.C. 410(a), the Postal Service invites comments on 
the following proposed revisions of the DMM, incorporated by reference 
in the Code of Federal Regulations. See 39 CFR part 111.

List of Subjects in 39 CFR Part 111

    Postal Service.

PART 111--[AMENDED]

    1. The authority citation for 39 CFR part 111 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 3001-
3011, 3201-3219, 3403-3406, 3621, 3626, 5001.

    2. Revise the following units of the Domestic Mail Manual as noted 
below:

P011  Payment

1.0  PREPAYMENT AND POSTAGE DUE
* * * * *

1.2  Unpaid and Shortpaid Mail

    Except as provided by 1.3 through 1.7, matter of any class, either 
with no postage or with insufficient postage, is endorsed ``RETURNED 
FOR POSTAGE'' and returned to the sender without an attempt at 
delivery. Matter bearing no postage or insufficient postage is treated 
as dead mail and sent to a Postal Service mail recovery center if:
    a. No return address is shown;
    b. The delivery and return addresses are identical;
    c. The delivery and return addresses are different but are actually 
the same person or organization; or
    d. The mail is refused by the sender when returned for collection 
of postage due.
* * * * *
[Delete existing 1.5, 1.6, and 1.9; renumber existing 1.7 as 1.5; add 
new 1.6 and 1.7 as follows:]

1.6  Bulk and Presort

    Additional postage due must be paid prior to dispatch for a bulk or 
presort rate mailing that is found to have insufficient postage when 
presented to the USPS for acceptance.

1.7  Special Payment Arrangements

    Shortpaid mail may be delivered if the addressee makes arrangements 
with the delivery post office for the payment of additional postage.
* * * * *
    An appropriate amendment to 39 CFR 111.3 to reflect these changes 
will be published if the proposal is adopted.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 96-8383 Filed 4-4-96; 8:45 am]
BILLING CODE 7710-12-P