[Federal Register Volume 67, Number 199 (Tuesday, October 15, 2002)]
[Proposed Rules]
[Pages 63582-63583]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-26161]


=======================================================================
-----------------------------------------------------------------------

POSTAL SERVICE

39 CFR Part 111


Change in Administrative Charges for Refunds of Unused Meter 
Stamps and Returned Business Reply Mail Mailpieces With Postage Affixed

AGENCY: Postal Service.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Postal Service proposes to revise the Domestic Mail Manual 
(DMM) to increase the administrative charges for processing refunds for 
unused meter stamps and business reply mail (BRM) pieces returned with

[[Page 63583]]

postage affixed. These charges have not been increased for the past 20 
years, and are updated to reflect the current hourly cost for 
processing the refunds. This proposed rule also splits the discussion 
of refunds for unused metered postage and refunds for PC Postage 
indicia into separate sections.

DATES: Comments must be received on or before November 14, 2002.

ADDRESSES: Written comments should be mailed or delivered to Manager, 
Mail Preparation and Standards, Postal Service, 1735 N. Lynn St., 
Arlington, VA 22209-6038. Copies of all written comments will be 
available for inspection and photocopying between 9 a.m. and 4 p.m., 
Monday through Friday, in the Library, Postal Service Headquarters, 475 
L'Enfant Plaza, SW., Washington, DC 20260-1540.

FOR FURTHER INFORMATION CONTACT: Patricia Bennett (703) 292-3639 or Sam 
Koroma (703) 292-3990.

SUPPLEMENTARY INFORMATION:

Background

    The Postal Service has provisions in place to process refunds for 
unused metered postage, as well as for postage affixed to returned 
business reply mail (BRM) pieces. To cover the costs of the Postal 
Service labor used to process such requests for refunds, the Postal 
Service reduces the amount of the refund by an administrative charge. 
The current charges reflect old labor costs, which have not been 
updated for more than 20 years. The proposed amendments would update 
the charges to better reflect current hourly labor costs (including 
benefits).
    For metered postage refunds, the current charge is calculated as 10 
percent of the face value of the indicia, if that value is $250 or 
less. If the face value of the indicia is more than $250, the current 
charge is $10 per hour, with a minimum charge of $25. The proposed 
amendment would charge 10 percent for values up to $350. For values 
above $350, the charge is $35 per hour, with a minimum of $35. Thus, 
there would be no change in the charge for indicia values up to $250, 
an increase from $25 to 10 percent of the face value for values between 
$250 and $350, and an increase in the minimum charge from $25 to $35 
for greater indicia values. When more than one hour of processing time 
is needed, the increase will vary depending on the time required.
    For BRM pieces with affixed postage, the current administrative 
charge is $15 per hour. The proposed amendment would increase that 
charge to $35 per hour, reflecting current labor costs for processing 
the refund request.
    While the amended charges would increase customer costs for 
obtaining a refund, the increases are needed so that the Postal Service 
can cover the costs of providing the refund.
    The separate treatment of unused metered indicia printed by PC 
Postage products reflects the different refund procedures for this type 
of postage.
    Although exempt from the notice and comment requirements of the 
Administrative Procedure Act (5 U.S.C. of 533 (b), (c) regarding 
proposed rulemaking by 39 U.S.C. 410(a)), the Postal Service invites 
public comment of the following proposed revisions to the Domestic Mail 
Manual, incorporated by reference in the Code of Federal Regulations. 
See 39 CR 111.1.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, 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, 414, 
416, 3001-3011, 3201 3219, 3403-3406, 3621, 3626, 5001.

    2. Amend the Domestic Mail Manual (DMM) as set forth below:

Domestic Mail Manual (DMM)
* * * * *
P Postage and Payment Methods
* * * * *
P000 Basic Information
P010 General Standards
* * * * *
P014 Refunds and Exchanges
* * * * *
2.0 POSTAGE AND FEES REFUNDS
* * * * *
[Revise title and text to read as follows:]

2.5 Refunds for Metered Postage, Except for PC Postage Indicia
    A refund for complete, legible, and valid unused indicia printed on 
unmailed envelopes, wrappers, or labels is made under 3.2. The request 
is submitted as follows:
    a. Only the meter licensee may request the refund.
    b. The licensee must submit the refund request within 60 days from 
the dates shown in the indicia.
    c. The licensee must submit the request, along with the items 
bearing the unused postage, to the licensing post office. The request 
is processed by the Postal Service.
    d. Charges for processing a refund request are as follows:
    (1) If the total face value of the indicia is $350 or less, the 
Postal Service charges 10% of the face value.
    (2) If the total face value is more than $350, the Postal Service 
charges $35 per hour, or fraction thereof, for the actual hours to 
process the refund, with a minimum charge of $35.

[Renumber current 2.6 through 2.11 as new 2.7 through 2.12, 
respectively.]

[Add new 2.6 to read as follows:]

2.6 Refunds for PC Postage
    A refund for complete, legible, and valid unused PC Postage indicia 
printed on unmailed envelopes, wrappers, or labels is made under 3.2. 
The request is submitted as follows:
    a. Only the PC Postage licensee may request the refund.
    b. The licensee must submit the refund request within 30 days from 
the dates shown in the indicia.
    c. The licensee must submit the request, along with the items 
bearing the unused postage, to the system provider. The request is 
processed by the provider, not the Postal Service. The provider may 
charge for processing refund requests.
    d. The provider may charge for processing refund requests.
* * * * *
2.12 Business Reply Mail
[Revise new 2.12 by replacing ``$15'' with ``$35'' to read as follows:]
    * * * A charge of $35 per hour, or fraction thereof, is assessed 
for the workhours used to process the refund.* * *
* * * * *
    We will publish an appropriate amendment to 39 CFR 111.3 to reflect 
these changes if the proposal is adopted.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 02-26161 Filed 10-11-02; 8:45 am]
BILLING CODE 7710-12-P