[Federal Register Volume 66, Number 158 (Wednesday, August 15, 2001)]
[Proposed Rules]
[Pages 42817-42820]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-20559]


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POSTAL SERVICE

39 CFR Part 111


Refunds and Exchanges for Metered Postage

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: The Postal Service is proposing to amend Domestic Mail Manual 
(DMM) P014, Refunds and Exchanges, to clarify the refund policy for 
metered postage. These changes are being made in conjunction with the 
proposed changes to P030 (Postage Meters and Meter Stamps).

DATES: The Postal Service must receive your comments on or before 
September 14, 2001. No extensions on the comment period will be 
granted.

ADDRESSES: Mail or deliver written comments to the Manager, Postage 
Technology Management, 1735 N Lynn

[[Page 42818]]

Street, Room 5011, Arlington, VA 22209-6050. You can view and copy all 
written comments at the same address between 9 a.m. and 4 p.m., Monday 
through Friday.

FOR FURTHER INFORMATION CONTACT: James Luff, 703-292-3693.

SUPPLEMENTARY INFORMATION: Changes to the regulations for refunds and 
exchanges are needed to make the terminology consistent with the 
terminology used in proposed DMM P030, and to clarify and incorporate 
changes in the refund policy for metered postage and for the postage 
value remaining in a postage evidencing system. The proposal also 
incorporates and revises, as appropriate, the proposed rule published 
in the Federal Register (65 FR 58499) on September 29, 2000 regarding 
the policies for refunds and exchanges for mail bearing information-
based indicia. The proposed changes to DMM P014 include the following:
    1. The term ``postage evidencing system'' is the collective term 
used in policies that affect postage meters and other postage metering 
systems such as those that use a Postal Security Device (PSD), those 
that generate information-based indicia (IBI), and PC Postage (TM). 
``Meter stamps'' and ``meter impressions'' are now called ``indicia 
printed by a postage evidencing system'' (``indicia'') and ``meter 
units'' are now called ``postage value in a postage evidencing 
system.'' For consistency, the process used to apply postage with any 
postage evidencing system will still be called ``metering''; such mail 
will still be called ``metered mail.''
    2. Customers will no longer be able to convert unused postage 
stamps into meter settings. The option to convert unused postage stamps 
to permit imprint advance deposit accounts has not changed.
    3. Refunds of unused indicia printed by a postage evidencing system 
on unmailed envelopes will be made for the full value of the indicia, 
however a fee may be charged for processing.
    4. We clarified the refund process for each type of postage 
evidencing system. The Postal Service handles refunds for all postage 
evidencing systems except for PC Postage (TM) systems. Refunds for PC 
Postage are processed through the system provider.
    5. The time limit for obtaining a refund for unused postage 
evidencing system indicia is 30 days for all postage evidencing 
systems. Current P014 allows up to 1 year for refunds of unused postage 
meter indicia. The proposed revision of P014 for Information-Based 
Indicia (IBI) published in the Federal Register on September 29, 2000 
(65 FR 58499) allowed 10 days for IBI.

Notice and Comment

    Although exempt from the notice and comment requirements of the 
Administrative Procedure Act (5 U.S.C. 553(b), (c)) regarding proposed 
rulemaking by 39 U.S.C. 410(a), the Postal Service invites public 
comments on the following proposed amendments to the Domestic Mail 
Manual, incorporated by reference in the Code of Federal Regulations. 
See 39 CFR part 111.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

    For reasons stated in the preamble, the Postal Service proposes to 
amend 39 CFR part 111 as follows:

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 Domestic Mail Manual (DMM) as follows:

P  Postage and Payment Methods

P000  Basic Information

P010  General Standards

* * * * *
    [Revise section P014 as follows:]

P014  Refunds and Exchanges

* * * * *
1.0  STAMP EXCHANGES
* * * * *

1.7  Stamps Converted to Other Postage Forms

    A customer may submit postage stamps for conversion to an advance 
deposit for permit imprint mailings, subject to these conditions:
    a. Only full panes of postage stamps (or coils of stamps in the 
original sealed wrappers) are accepted for conversion. Accepted stamps 
include commemorative stamps issued no more than 1 year before the 
requested conversion date or regular stamp issues not officially 
withdrawn from sale.
    b. A request for stamp conversions must be made in writing to the 
district manager of Customer Service and Sales in the district where 
the customer's post office is located. The customer's request must 
include:
    (1) Name, denomination, quantity, and value of stamps for which 
conversion is requested.
    (2) Name of the post office where the stamps were bought.
    (3) Evidence of purchase of the stamps.
    c. The amount of postage applied to a permit imprint advance 
deposit account through conversion is the full face value of the 
stamps.
    d. The district manager may ask the customer to submit additional 
records to support the information in the request. After reviewing the 
documentation, the district manager approves or denies the request. The 
customer is notified when the conversion is approved. The postmaster is 
advised of the procedures for accepting the stamps and making the 
required accounting entries.
    e. No part of any amount applied to a permit imprint advance 
deposit account from the conversion of postage stamps is later 
refundable in cash or by any other means.
* * * * *
2.0  POSTAGE AND FEES REFUNDS

2.1  Refund Standards

    A refund for postage and fees may be made under:
    a. The standards below if postage and special or retail service 
fees are paid and no service is rendered, or if the amount collected 
was more than the lawful rate.
    b. 3.0 for refund requests for metered postage. Metered postage is 
printed by a postage evidencing system (P030). Refunds may be requested 
for unused indicia, unused postage value remaining in a postage 
evidencing system, and the unused balance in a postage payment account.
    c. 4.0 for refund requests for postage made at the time of mailing.
    d. P021 for rejected personalized envelopes.
* * * * *

2.5  Refunds for Metered Postage

    A refund for complete and legible valid, unused indicia printed on 
unmailed envelopes, wrappers, or labels is made under 3.2 when they are 
submitted by the licensee within 30 days from the dates shown on the 
indicia. For all indicia, except those produced by a PC Postage (TM) 
system, the licensee submits the indicia to the licensing post office 
and the USPS processes the refund. USPS charges a fee of 10% if the 
face value of the indicia is $250 or less. If the face value is more 
than $250, the service fee is $10 per hour for the actual hours to 
process the refund; the minimum charge is $25. The licensee submits 
indicia produced by a PC Postage system to the system provider for 
refund processing. The

[[Page 42819]]

provider may charge a fee for processing refund requests.
* * * * *

2.8  Applying for Refund

    Except for refunds for metered postage under 2.5, the customer must 
apply for a refund on Form 3533; submit it to the postmaster; and 
provide the envelope, wrapper, or a part of it showing the names and 
addresses of the sender and addressee, canceled postage and postal 
markings, or other evidence of postage and fees paid for which the 
refund is requested.

2.9  Ruling on Refund Request

    Refunds are decided as follows:
    a. Metered postage, except for PC Postage systems. The postmaster 
at the licensing post office grants or denies requests for refunds for 
metered postage under 3.2.a. The licensee may appeal adverse decisions 
through the manager of Postage Technology Management, USPS Headquarters 
(G043).
    b. PC Postage systems. The system provider grants or denies 
requests for refunds for indicia printed by PC Postage systems under 
3.2.b, using established USPS criteria. The licensee may appeal adverse 
decisions through the manager of Postage Technology Management, USPS 
Headquarters.
    c. Optional Procedure (OP) mailing. A mailer's request for a refund 
for an Optional Procedure (OP) mailing must be submitted to the RCSC 
manager.
    d. All other postage. The local postmaster grants or denies all 
other requests for refunds under 2.0. The customer may appeal adverse 
decisions through the postmaster to the RCSC.
* * * * *
3.0  REFUND REQUEST FOR METERED POSTAGE

3.1  Unused Postage Value in Postage Evidencing Systems

    The unused postage value remaining in a postage evidencing system 
withdrawn from service may be refunded. If the postage evidencing 
system is withdrawn for faulty or misregistering operation, a final 
postage adjustment or refund may be withheld pending the system 
provider's report of the cause. If the postage evidencing system is 
damaged by fire, postage is refunded or transferred only if the 
registers are legible or the register values can be reconstructed by 
the system provider based on adequate supporting documentation. Refunds 
for specific postage evidencing systems are handled as follows:
    a. For a manually reset meter being checked out of service, unused 
postage value may be transferred to another of the licensee's meters 
licensed at the same post office, or the licensee may request a refund. 
The USPS must examine a manually reset meter and verify the amount 
before any remaining funds are cleared from the meter and a refund or 
credit is initiated for unused postage value, or additional money is 
collected to pay for postage value used, based on what is found. 
Licensees may also submit their own transaction records, if any, or a 
system-generated register as supporting documentation.
    b. For a remotely reset Generation 1 postage evidencing system 
being checked out of service, the postage value remaining on the system 
may be transferred by the USPS to another of the licensee's postage 
evidencing systems licensed at the same post office, or the licensee 
may request a refund. Refunds may be issued for unused postage in the 
meter. The USPS must examine the meter and verify the amount before a 
refund or credit is initiated for unused postage or additional postage 
is collected, based on what is found, unless the provider has a USPS-
approved system for automated transfer of funds from one meter to 
another. In this instance, the provider must examine the meter before a 
refund can be issued for the remaining postage balance. The licensee 
may also submit transaction records or a system-generated register as 
supporting documentation.
    c. For a PSD Meter or IBI Meter being checked out of service, an 
amount equivalent to the postage value remaining on the system will be 
refunded to the licensed user along with any unused balance in the 
licensee's postage payment account. The provider must examine a PSD 
Meter or IBI Meter and verify the amount before a refund or credit is 
initiated for unused postage or additional postage is collected, based 
on what is found. The licensee may also submit transaction records, if 
any, or a system-generated register as supporting documentation.
    d. For a PC Postage system that is withdrawn from service, the USPS 
refunds the entire postage value remaining on the postal security 
device (PSD) for the user's system. The refund is issued through the 
licensee's provider. The licensee must notify the provider of the 
intent to withdraw the system. To determine the remaining postage value 
on the PC Postage system, the licensee has the PC Postage system 
generate a refund request indicium for transmittal to the provider for 
verification. A refund can be issued only when the system PSD is in the 
provider's possession.

3.2  Unused Postage Evidencing System Indicia on Mailpieces or 
Labels

    All refund requests for unused postage evidencing system indicia 
must include proof that the person or entity requesting the refund is 
the licensee for the postage evidencing system that printed the 
indicia. Refunds are considered as follows:
    a. Unused postage evidencing system indicia, except for those 
printed by a PC Postage system, are considered for refund only if 
complete and legible. They must be submitted by the licensed user to 
the postmaster at the licensing post office with Form 3533 within 30 
days of the date in the indicia. The refund request must be submitted 
with the part of the envelope or wrapper showing the addressee's name 
and address (including the window on a window envelope). Indicia 
printed on labels or tapes not stuck to wrappers or envelopes must be 
submitted loose. If a part of the indicia is printed on one envelope or 
card and the remaining part on another, the two must be fastened 
together to show that they represent one indicium. Refunds are 
allowable for indicia on metered reply envelopes only when it is 
obvious that an incorrect amount of postage was printed on them. 
Envelopes or address parts of wrappers on mail returned to sender from 
the mailing office, marked to show no effort was made to deliver (e.g., 
``received without contents''), must be submitted separately with an 
explanation.
    b. Unused indicia printed by a PC Postage system are considered for 
refund only if they are complete, legible, and valid and are submitted 
to the authorized provider for verification within 30 days of the date 
of mailing shown in the indicia, with the required documentation. In 
support of the refund request, indicia printed on an envelope or 
wrapper are submitted with the part of the envelope or wrapper showing 
the addressee's name and address (including the window in a window 
envelope). For indicia printed on a label that is not affixed to an 
envelope or wrapper, the complete label is submitted loose.

3.3  Ineligible Metered Postage Items

    The following metered postage items are ineligible for refunds:
    a. Reply envelopes or cards paid at the proper postage rate.
    b. Indicia printed on labels or tape removed from wrappers or 
envelopes.
    c. Indicia lacking a date or identification of the licensing post 
office.
    d. Indicia printed on mail dispatched and returned to sender as 
undeliverable

[[Page 42820]]

as addressed, including mail marked ``no such post office'' and mail 
addressed for local delivery and returned after directory service was 
given or delivery was attempted.

3.4  Rounding

    Any fraction of a cent in the total to be refunded is rounded down 
to the whole cent (e.g., $4.187 is rounded to $4.18).
4.0  REFUND REQUEST FOR EXCESS POSTAGE (VALUE ADDED REFUND)--AT TIME OF 
MAILING
* * * * *

4.10  Form 8096 Required

    The presenter must provide the USPS with an original Form 8096 
completed and signed by each of the presenter's customers who meter any 
pieces in the mailing for which a VAR is requested, and a list of those 
customers. If postage is affixed to the pieces using a postage 
evidencing system by an intermediate agent (not the presenter of the 
mailing) for the owner of the pieces, a signed Form 8096 must be on 
file from the agent whose postage evidencing systems were used to affix 
the postage. Refund requests are denied if all required Forms 8096 are 
not provided.

4.11  Form 8096 Not Required

    Form 8096 is not required for a customer whose mail is metered by 
the presenter with the presenter's own postage evidencing system. In 
such cases, the presenter must provide the post office where it submits 
refund requests with a list, in ascending numeric order, of its own 
postage evidencing system serial numbers and those of any intermediate 
agent used for affixing postage to the pieces included in the mailing.
* * * * *
    An appropriate amendment to 30 CFR part 111 to reflect these 
changes will be published if the proposal is adopted.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 01-20559 Filed 8-14-01; 8:45 am]
BILLING CODE 7710-12-P