[Federal Register Volume 68, Number 209 (Wednesday, October 29, 2003)]
[Proposed Rules]
[Pages 61647-61650]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-27186]


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POSTAL SERVICE

39 CFR Part 111


Refund Procedures for Metered Postage

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: The Postal Service proposes to revise the Domestic Mail Manual 
(DMM) to allow refunds for unused, undated metered postage. The 
proposed mailing standard would benefit any mailer who generates 
significant quantities of unused, undated metered postage and is able 
to meet the refund criteria. The Postal Service also proposes minor 
clarifications to the procedures for requesting refunds for unused, 
dated metered postage.

DATES: Submit comments on or before November 28, 2003.

ADDRESSES: Mail or deliver written comments to Charles Tricamo, New

[[Page 61648]]

York Rates and Classification Service Center, Postal Service, 1250 
Broadway FL 14, New York, NY, 10095-9599. 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: Charles Tricamo, New York Rates and 
Classification Service Center, at 212-613-8676.

SUPPLEMENTARY INFORMATION: Inclusion of a date in meter indicia is 
optional for Standard Mail and Package Services items. Many mailers 
choose to omit the date to increase their production flexibility and 
allow them to deposit the mailing at any time, even though Postal 
Service mailing standards do not allow refunds for unused meter indicia 
lacking a date. The Postal Service grants refunds only for unused, 
dated meter indicia if requested within 60 days of printing the 
indicia. The Postal Service proposes that if the mailer can provide 
sufficient documentation with the refund request to support and 
validate the proper amount of the refund, the date the mailing was 
prepared, and the validity of the indicia on the mailpieces, then it 
could grant refunds for undated metered mail. The Postal Service 
proposes to apply the existing time frame restrictions for dated 
metered mail to undated metered mail. Additionally, the Postal Service 
proposes that refunds for unused, undated metered postage will only be 
considered when the customer submits at least 500 mailpieces from a 
single mailing, or, as an alternative, indicia worth at least $500 from 
a single mailing, along with the required supporting documentation. 
When more than one meter was used to prepare the mailing, a separate PS 
Form 3533, Application and Voucher for Refund of Postage, Fees, and 
Services, must be submitted for each meter used to print the unused 
indicia submitted for refund. Mailers concerned about their inability 
to obtain a refund for unused, undated metered postage because they 
have less than the required mail volume or cannot provide the required 
documentation should use dated meter indicia or permit imprint for 
their Standard Mail and Package Services mailpieces, as permitted, in 
lieu of undated meter indicia.
    As part of this proposed rule, the Postal Service also proposes to 
revise DMM P014, Refunds and Exchanges, to clarify the mailing 
standards for refunds of unused, dated meter indicia. Portions of P014 
are reorganized to consolidate all of the information related to 
submitting a refund request for unused meter indicia. Also included is 
a proposed clarification to specify that a contract postal unit (CPU) 
will handle refunds for unused meter indicia in accordance with the 
contract each CPU has executed with the Postal Service for the sale of 
metered postage.
    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 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, 414, 
416, 3001, 3011, 3201, 3219, 3403'3406, 3621, 3626, 5001.

    2. Revise 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

2.1 Refund Standards

    A refund for postage and fees may be made:
* * * * *
    [Add new item e to read as follows:]
    e. Under the terms of a contract between the contract postal unit 
(CPU) and the USPS [reg] for unused postage printed by the 
CPU.
* * * * *
    [Delete 2.5 and 2.6. Renumber current 2.7 through 2.12 as new 2.5 
through 2.10, respectively.]
* * * * *

2.7 Applying for Refund

    [Revise text of renumbered 2.7 to read as follows:]
    For refunds under 2.0, the customer must apply for a refund on PS 
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. Refunds for metered postage are submitted 
under 3.0.

2.8 Ruling on Refund Request

    [Revise text of renumbered 2.8 to read as follows:]
    Refund requests are decided based on the specific type of postage 
or mailing:
    a. Refunds under 2.0. The local postmaster grants or denies refunds 
under 2.0. The customer may appeal an adverse ruling through the 
postmaster to the rates and classification service center (RCSC) 
manager who issues the final agency decision.
    b. Dated metered postage, except for PC Postage [reg] 
systems, under 3.0. The postmaster at the licensing Post Office\TM\ 
grants or denies requests for refunds for dated metered postage under 
3.0. The licensee may appeal an adverse ruling within 30 days through 
the manager of Postage Technology Management, USPS Headquarters (see 
G043 for address), who issues the final agency decision. The original 
meter indicia must be submitted with the appeal.
    c. Undated metered postage under 3.0. The manager, business mail 
entry (MBME) at the district Post Office overseeing the mailer's 
licensing Post Office, or designee, grants or denies requests for 
refunds for undated metered postage under 3.0. The customer may appeal 
a decision on undated metered postage within 30 days through the MBME, 
or designee, to the RCSC manager who issues the final agency decision. 
The original meter indicia must be submitted with the appeal.
    d. PC Postage systems under 3.0. The system provider grants or 
denies a request for a refund for dated indicia printed by PC Postage 
systems under 3.0 using established USPS criteria. For dated PC Postage 
indicia only, the licensee may appeal an adverse ruling within 30 days 
through the manager of Postage Technology Management, USPS 
Headquarters, who issues the final agency decision. The original 
indicia must be submitted with the appeal.
    e. Optional procedure (OP) mailings. Mailer's request for a refund 
must be submitted to the manager of Business Mailers Support (BMS), 
USPS Headquarters (see G043 for address).
* * * * *

[[Page 61649]]

3.0 Refund Request for Postage Evidencing Systems and Metered Postage

* * * * *
    [Revise title and text of 3.2 to read as follows:]

3.2 Unused, Dated Postage Evidencing System Indicia, Except for PC 
Postage Indicia

    Unused, dated postage meter indicia are considered for refund only 
if complete, legible, and valid. PC Postage indicia refunds are 
processed under 3.3. All other metered postage refund requests must be 
submitted as follows:
    a. The licensee must submit the request. The refund request must 
include proof that the person or entity requesting the refund is the 
licensee for the postage meter that printed the indicia. Acceptable 
proof includes a copy of the lease, rental agreement, or contract.
    b. The licensee must submit the request, along with the items 
bearing the unused postage, to the licensing Post Office. The items 
must be sorted by meter used and then by postage value shown in the 
indicia, and must be properly faced and packaged in groups of 100 
identical items when quantities allow. The request is processed by the 
USPS. The postmaster approves or denies the refund request.
    c. The licensee must submit the refund request within 60 days of 
the date(s) shown in the indicia.
    d. When the unused metered postage is affixed to a mailpiece, the 
refund request must be submitted with the entire envelope or wrapper. 
The unused metered postage must not be removed from the mailpiece once 
applied.
    e. Indicia printed on labels or tapes not stuck to wrappers or 
envelopes must be submitted loose and must not be stapled together or 
attached to any paper or other medium. However, self-adhesive labels 
printed without a backing may be submitted on a plain sheet of paper.
    f. If a part of one indicium is printed on one envelope or card and 
the remaining part on one or more others, they must be fastened 
together to show that they represent one indicium.
    g. Refunds are allowable for indicia on metered reply envelopes 
only when it is obvious that an incorrect amount of postage was printed 
on them.
    h. The refund request must be submitted with a properly completed 
PS Form 3533 (see I021). A separate PS Form 3533 must be completed for 
each meter for which a refund is requested. All identifying information 
and all sections related to the refund requested must be completed. 
Charges for processing a refund request for unused, dated meter indicia 
are as follows:
    (1) If the total face value of the indicia is $350 or less, the 
amount refunded is 90% of the face value. USPS may process the refund 
payment locally via a no-fee postal money order.
    (2) If the total face value is more than $350, the amount refunded 
is reduced by a figure representing $35 per hour, or fraction thereof, 
for the actual hours to process the refund, with a minimum charge of 
$35. The postmaster will submit the approved PS Form 3533 to the USPS 
Imaging and Scanning Center for payment processing through the 
Accounting Service Center.
    [Renumber current 3.3 and 3.4 as new 3.5 and 3.6, respectively. Add 
new 3.3 and 3.4 to read as follows:]

3.3 Unused, Dated PC Postage Indicia

    Unused, dated PC Postage indicia are considered for refund only if 
complete, legible, and valid. The refund request must be submitted as 
follows:
    a. Only the PC Postage licensee may request the refund. 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 USPS.
    b. The licensee must submit the refund request within 30 days of 
the date(s) shown in the indicia.
    c. The refund request must be submitted as required by 3.2.d 
through 3.2.g.
    d. The provider may, at its discretion, charge for processing a 
refund request.

3.4 Undated Metered Postage

    Unused, undated postage evidencing system indicia are considered 
for refund only if complete, legible, and valid. The refund request 
must be submitted as follows:
    a. Only the meter licensee or the commercial entity that prepared 
the mailing for the licensee using the licensee's meter may request the 
refund. The request must include a letter signed by the meter licensee 
or the commercial entity that prepared the mailing for the licensee 
explaining why the mailpieces were not mailed.
    b. The minimum quantity of unused, undated metered postage that may 
be submitted for refund is 500 pieces from a single mailing or, as an 
alternative, indicia with a total postage value of at least $500 from a 
single mailing.
    c. The meter licensee, or the commercial entity that prepared the 
mailing for the licensee using the licensee's meter, must submit the 
request, along with the items bearing the unused postage and the 
required documentation, to the manager of business mail entry at the 
district Post Office overseeing the mailer's licensing Post Office, or 
to a designee. The manager or designee approves or denies the refund 
request.
    d. The request must include the items bearing the unused postage, 
sorted by meter used and then by postage value shown in the indicia. 
The items must be properly faced and packaged in groups of 100 
identical items, when quantities allow, and must meet the requirements 
of 3.2.d through 3.2.g.
    e. The request must be submitted within 60 days of the date the 
mail was metered. Supporting documentation must be submitted to 
validate the date. Examples of supporting documentation include the job 
order from the customer, production records, the USPS qualification 
report, spoilage report, and reorders created report, as well as 
customer billing records, postage statements, and a sample mailpiece.
    f. The refund request must be submitted with a properly completed 
PS Form 3533 (see I021). All identifying information and all sections 
related to the refund requested must be completed. When more than one 
meter was used to prepare the mailing, a separate PS Form 3533 must be 
completed for each.
    (1) If the total face value of the indicia for a single mailing 
submitted for refund is $350 or less, the amount refunded is 90% of the 
face value. USPS may process the refund payment locally via a no-fee 
postal money order.
    (2) If the total face value of the indicia for a single mailing 
submitted for refund is more than $350, the amount refunded is reduced 
by a figure representing $35 per hour, or fraction thereof, for the 
actual hours to process the refund, with a minimum charge of $35. The 
MBME will submit the approved PS Form 3533 to the USPS Imaging and 
Scanning Center for payment processing through the Accounting Service 
Center.

3.5 Ineligible Metered Postage Items

    The following metered postage items are ineligible for refunds:
* * * * *
    [Revise text of renumbered 3.5.d to read as follows:]
    d. Indicia lacking identification of the licensing Post Office, or 
other required information.
* * * * *

[[Page 61650]]

    We will publish an appropriate amendment to 39 CFR 111 to reflect 
these changes if the proposal is adopted.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 03-27186 Filed 10-28-03; 8:45 am]
BILLING CODE 7710-12-P