[Federal Register Volume 65, Number 84 (Monday, May 1, 2000)]
[Notices]
[Pages 25399-25400]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-10812]


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POSTAL SERVICE


Retirement Plan for Manually Set Postage Meters

AGENCY: Postal Service.

ACTION: Notice of proposed plan with request for comments.

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SUMMARY: The Postal Service recently completed the first phase of a 
plan to remove insecure postage meters from the marketplace with the 
decertification of mechanical postage meters. A plan is herewith 
proposed for the second phase, which is the retirement of manually 
reset electronic meters. Upon completion of this phase all meters in 
service will offer enhanced levels of security, thereby greatly 
reducing the Postal Service's exposure to meter fraud, misuse, and loss 
of revenue.

DATES: Comments must be received on or before June 15, 2000.

ADDRESSES: Written comments should be mailed or delivered to the 
Manager, Postage Technology Management, U.S. Postal Service, Room 8430, 
475 L'Enfant Plaza SW, Washington DC 20260-2444. Copies of all written 
comments will be available at the above address for inspection and 
photocopying between 9 a.m. and 4 p.m. Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Nicholas S. Stankosky, (202) 268-5311.

SUPPLEMENTARY INFORMATION: In 1996 the Postal Service, in cooperation 
with all authorized postage meter manufacturers, began a phase-out, or 
decertification, of all mechanical postage meters because of identified 
cases of indiscernible tampering and misuse. Postal revenues were 
proven to be at serious risk. With the recent completion of this 
initial effort, 776,000 mechanical meters have been withdrawn from 
service. Recent advances in postage meter technology offer high levels 
of security, operational reliability, and flexibility for meter users. 
As a result, the Postal Service is addressing the next category of 
meter insecurity, namely electronic meters that are manually set by 
postal employees. Of the current total installed population of 
1,587,000 meters, over 92 percent are remotely set through telephone 
access to a manufacturer's setting center. Customers have recognized 
the advantages of remote setting, and as a result the marketplace has 
moved in a positive direction. The remaining 145,000 manually set 
electronic meters are to be retired and no longer authorized for use as 
postage evidencing devices. It is the Postal Service's intent to make 
this an orderly process minimizing impacts on meter users. A schedule 
has been devised that gives meter users ample time to make timely and 
intelligent decisions on replacement meters. The Postal Service 
proposed plan is as follows:
    1. Effective February 1, 2000, new placements of manually reset 
electronic postage meters ceased. The edict applies to new customers as 
well as existing meter users. All meter manufacturers were notified of 
this policy and are complying.
    2. Meters must be withdrawn at the expiration of a user's lease, 
with one exception. The Postal Service will allow a lease extension up 
to December 31, 2001, for any lease which expires during calendar year 
2000. No other lease extensions are permitted by the Postal Service. 
Manufacturers or users cannot avoid meter retirement by the 
manipulation of leases.
    3. Some users currently have multiple-year leases which expire 
after June 30, 2001. Any meter covered under such a lease may be used 
until the lease expires.
    4. All retired meters must be withdrawn from active service records 
immediately upon lease expiration. Manufacturers must process PS Form 
3601-C, Postage Meter Activity Report, to withdraw the meter effective 
the lease expiration date.
    5. Retired meters must be physically returned to the manufacturer 
within 30 business days after lease expiration. The use of a retired 
meter in the time period between the expiration date and when the meter 
is returned to the manufacturer may result in the cancellation of the 
user's meter license.
    6. Official notification to users explaining this action will be 
sent directly by the Manager, Postage Technology Management, Postal 
Service Headquarters. No other correspondence will be considered to be 
official.
    7. Any manufacturer correspondence to these meter users must be 
provided to and reviewed by the Manager, Postage Technology Management 
prior to distribution.
    8. Manufacturers will provide the Postal Service with a complete 
listing of lease expiration dates including those extended under item 2 
above.
    9. The meters affected by this rule are:

Ascom Hasler

1441
1446
SM1441
SM1446
16410
16410TMS
16413
16463
SM16410
SM16413
SM16463
17563
SM17563
741
SM741
7410
7413
SM7410
SM7413
7560
7563
SM7560
SM7563

Neopost

9212
9212G
9248
9248G
9252
9252G
9257
9257G
9258
9258G
9252U
9257U
9258U
9258UG
9267
9268
9268G

Francotyp-Postalia

7000
7100
7200

Pitney Bowes

6501
6502
6513
B901

[[Page 25400]]

E101
E102

    A final plan will be published after all comments have been 
received from interested parties and reviewed by the Postal Service.

Stanley F. Mires,
 Chief Counsel, Legislative.
[FR Doc. 00-10812 Filed 4-28-00; 8:45 am]
BILLING CODE 7710-12-P