[Federal Register Volume 69, Number 48 (Thursday, March 11, 2004)]
[Rules and Regulations]
[Pages 11532-11534]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-5567]


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POSTAL SERVICE

39 CFR Part 111


Refund Procedures for Metered Postage

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This final rule revises the Domestic Mail Manual 
(DMMTM ) to allow refunds for unused, undated metered 
postage. This mailing standard will benefit any mailer who generates 
significant quantities of unused, undated metered postage and is able 
to meet the refund criteria. This final rule also implements minor 
clarifications to the procedures for requesting refunds for unused, 
dated metered postage. The final rule also includes the terms under 
which a contract postal unit (CPU) will be eligible for refunds for its 
unused printed postage.

DATES: This revision is effective March 4, 2004.

FOR FURTHER INFORMATION CONTACT: Chuck Tricamo at (212) 613-8754, New 
York Rates and Classification Service Center, United States Postal 
Service[reg].

SUPPLEMENTARY INFORMATION: The proposed rule was published in the 
Federal Register on October 29, 2003 (68 FR 61647-61650). 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 invited 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. 
Comments were due by November 28, 2003.

Discussion of Comments

    The Postal Service received six comments in reference to this 
proposed DMM revision. Three of the commenters were mailing houses, two 
were commercial mail customers, and one was from a retail mail 
customer.
    One commercial mail customer and one mailing house concurred with 
the proposed revision since it reduced their risk of losing the amount 
paid for undated metered postage while enhancing their flexibility in 
choosing when the mail is deposited.
    Two mailing houses and one commercial mail customer commented on 
the effort required to segregate mailpieces in a refund request by 
meter license numbers and to submit a separate PS Form 3533, 
Application and Voucher for Refund of Postage, Fees, and Services, for 
each meter. The commercial customer also asked why this was a new 
regulation for refunds for unused, dated metered postage refunds.
    The Postal Service understands the mailers' concerns; however, 
segregating the unused, metered mail by meter, with a separate PS Form 
3533 for each meter for which a refund is requested, is not a new 
requirement. No change to the proposed rule was made as a result of 
this comment.
    One commercial customer questioned whether the minimum piece/
postage minimum requirement for refunds for undated metered mail 
applies to dated meter postage refunds. The proposed rule included no 
change to the current mailing standards for refunds for dated metered 
mail. There is no minimum requirement for dated meter postage refunds. 
No change to the proposed rule was made as a result of this comment.
    One retail mail customer referred to mistakes made when applying 
dates on metered postage. The proposed rule made no changes to the 
procedures for handling refunds for dated metered postage.

0
For the reasons stated in the preamble, the Domestic Mail Manual is 
revised as follows. The changes are 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.

PART 111--[AMENDED]

0
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.


0
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 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 OfficeTM 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, 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 authorized in writing, 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

[[Page 11533]]

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, 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, Business Mailers Support (BMS), USPS 
Headquarters (see G043 for address).
* * * * *
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, the envelopes or cards 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 
Form 3533 (see I021). A separate 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 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, business mail entry, at the 
district Post Office overseeing the mailer's licensing Post Office, or 
to a designee authorized in writing. 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 
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 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

[[Page 11534]]

a minimum charge of $35. The MBME will submit the approved 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 item d to read as follows:]
    d. Indicia lacking identification of the licensing Post Office, or 
other required information.
* * * * *
    We will publish an appropriate amendment to 39 CFR 111 to reflect 
these changes.

Neva Watson,
Attorney, Legislative.
[FR Doc. 04-5567 Filed 3-10-04; 8:45 am]
BILLING CODE 7710-12-P