[Federal Register Volume 72, Number 176 (Wednesday, September 12, 2007)]
[Proposed Rules]
[Pages 52025-52027]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-18035]


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POSTAL SERVICE

39 CFR Part 111


Revisions to DMM 604.9.2 Postage and Fee Refunds

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would revise the Mailing Standards of the 
United States Postal Service, Domestic Mail Manual (DMM[supreg]) Sec.  
604.9.2 through 604.9.3.6. The proposed revision would establish a 
minimum for refund of unused postage value in postage meters and PC 
Postage[supreg] accounts; provide a consistent time frame for 
submission of physical refunds for both PC Postage and postage meter 
indicia to 60 days; would specify procedures and a time frame for 
refund of items bearing a Product Identification Code (PIC) produced by 
a PC Postage system that must be processed electronically; and would 
establish refund procedures for undated PC Postage indicia.

DATES: Submit comments on or before October 12, 2007.

ADDRESSES: Mail or deliver written comments to the Manager, Postage 
Technology Management, Postal Service, 475 L'Enfant Plaza SW., NB Suite 
4200, Washington, DC 20260-4200. Written comments may also be submitted 
via fax to 202-268-4225. Copies of all written comments will be 
available for inspection and photocopying between 9 a.m. and 4 p.m., 
Monday through Friday, at the Postage Technology Management office.

FOR FURTHER INFORMATION CONTACT: Daniel J. Lord, Manager, Postage 
Technology Management, Postal ServiceTM, at 202-268-4281.

SUPPLEMENTARY INFORMATION: The proposed revision would establish a $5 
minimum for refund of unused postage value in postage meters and PC 
postage accounts; would provide 60 days as a consistent time frame for 
submission of physical refunds for both PC Postage and postage meter 
indicia; would specify procedures and a 10-day time frame for refund of 
items bearing a Product Identification Code (PIC) produced by a PC 
Postage system that must be processed electronically; and would 
establish refund procedures for unused, undated PC Postage indicia.
    Although we are 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), we invite public comments on 
the following proposed revisions to Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM[supreg]), incorporated 
by reference in the Code of Federal Regulations. See 39 CFR 111.1.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.
    For the reasons set out in this document, the Postal Service 
proposes to amend 39 CFR part 111 as set forth below:

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, 410, 
2601, 2605, Inspector General Act of 1978, as amended (Pub. L. 95-
452, as amended); 5 U.S.C. App. 3.

    2. Revise the following sections of Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM), as follows:
Mailing Standards of the United States Postal Service, Domestic Mail 
Manual (DMM)
* * * * *

600 Basic Standards for All Mailing Services

* * * * *

604 Postage Payment Methods

* * * * *

9.0 Refunds and Exchanges

* * * * *

9.2 Postage and Fee Refunds

* * * * *

 9.2.8 Ruling on Refund Request

    Refund requests are decided based on the specific type of postage 
or mailing:
* * * * *
    [Revise items b and c by changing ``licensing post office'' to 
``Local Post Office'' and changing ``licensee'' to ``authorized user'' 
as follows:]
    b. Dated metered postage, except for PC Postage systems, under 9.3. 
The postmaster at the local Post Office grants or denies requests for 
refunds for dated metered postage under 9.3. The authorized user may 
appeal an adverse ruling within 30 days through the manager, Postage 
Technology Management, USPS Headquarters (see 608.8.0 for address), who 
issues the final agency decision. The original meter indicia must be 
submitted with the appeal.
    c. Undated metered postage under 9.3. The manager, business mail 
entry at the district Post Office overseeing the mailer's local Post 
Office, or designee authorized in writing, grants or denies requests 
for refunds for undated metered postage under 9.3. The customer may 
appeal a decision on undated metered postage within 30 days through the 
manager, business mail entry, or designee, to the PCSC manager who 
issues the final agency decision. The original meter indicia must be 
submitted with the appeal.
    [Revise item d as follows:]
    d. PC Postage systems under 9.3. The system provider grants or 
denies a request for a refund for indicia printed by PC Postage systems 
under 9.3 using established USPS criteria. The customer 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.
* * * * *

[[Page 52026]]

9.3 Refund Request for Postage Evidencing Systems and Metered Postage

9.3.1 Unused Postage Value in Postage Evidencing Systems

    [Revise 9.3.1 to restrict refunds to amounts of $5 or more as 
follows:]
    The unused postage value remaining in a postage evidencing system 
when withdrawn from service may be refunded, depending upon the 
circumstance and the ability of the USPS to make a responsible 
determination of the actual or approximate amount of the unused postage 
value. If the postage evidencing system is withdrawn because of faulty 
operation, a final postage adjustment or refund will be withheld 
pending the system provider's report of the cause to the USPS and the 
USPS determination of whether or not a refund is appropriate and, if 
so, the amount of the refund. No refund is given for faulty operation 
caused by the authorized user. When a postage evidencing system that is 
damaged by fire, flood, or similar disaster is returned to the 
provider, postage may be refunded or transferred when the registers are 
legible and accurate, or the register values can be reconstructed by 
the provider based on adequate supporting documentation. When the 
damaged system is not available for return, postage may be refunded or 
transferred only if the provider can accurately determine the remaining 
postage value based on adequate supporting documentation. The 
authorized user may be required to provide a statement on the cause of 
the damage and to attest that there has not been reimbursement by 
insurance, or otherwise, and that the authorized user will not seek 
such reimbursement. Refunds for unused postage value are granted for 
postage evidencing systems specified in 4.0 in accordance with the 
following procedures:
    a. All postage evidencing systems except for PC Postage systems. 
Authorized users must notify their provider to withdraw the system and 
to refund any unused postage value remaining on their system or 
account. The postage evidencing system must be examined to verify the 
amount before any funds are cleared from the meter. Based on what is 
found, a refund or credit is initiated for unused postage value, or 
additional money is collected to pay for postage value used. The 
provider forwards the refund request to the USPS for payment or may 
credit the amount to the authorized users account. Refunds of unused 
postage value remaining in a postage evidencing system less than $5 
will not be paid by the USPS.
    b. PC Postage systems. Authorized users must notify their provider 
to withdraw the system and to refund any unused postage value remaining 
in their account. The provider refunds the unused postage value 
remaining on the user's system on behalf of the USPS. Refunds of unused 
postage value remaining in a postage evidencing system less than $5 
will not be paid by the USPS.

9.3.2 Unused, Dated Postage Evidencing System Indicia, Except PC 
Postage Indicia

[Revise 9.3.2 as follows:]

    Unused, dated postage meter indicia are considered for refund only 
if complete, legible, and valid. PC Postage indicia refunds are 
processed under 9.3.3. All other metered postage refund requests must 
be submitted as follows:
    a. Authorized users must submit the request to their local Post 
Office. The refund request must include proof that the person or entity 
requesting the refund is the authorized user of the postage meter that 
printed the indicia. Acceptable proof includes a copy of the lease, 
rental agreement, or contract.
    b. Authorized users must include the items bearing the unused 
postage with their request to their local 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 bundled 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. Authorized users must submit the refund request within 60 days 
of the date(s) shown in the indicia.
    d. When unused metered postage is affixed to a mailpiece, the 
refund request must be submitted with the entire envelope or wrapper. 
For those items where the postage is affixed to a large container (i.e. 
cardboard box), a sufficient portion of the container with the postage 
affixed must be included to validate that the item was never deposited 
with the USPS. The unused metered postage must not be removed from the 
mailpiece once applied.
    e. Indicia printed on labels or tapes not adhered 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, 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 on PS Form 3533. 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 request 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.

9.3.3 Unused, Dated PC Postage Indicia

    [Revise 9.3.3 as follows:]
    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 authorized PC Postage users may request the refund. Users 
must submit the request to their system provider. The request is 
processed by the provider, not the USPS.
    b. Requests for refund of PC Postage indicia that contain a valid 
Postal Identification Code (PIC) must be submitted by authorized users 
to their provider electronically in accordance with procedures 
available from their provider. Valid PICs include any form of Delivery 
Confirmation or Signature Confirmation service, Express Mail service or 
Confirm[supreg] Code. Authorized users must initiate requests for 
electronic refunds within ten (10) days of printing the indicia. 
Refunds for postage associated with a PIC may only be submitted 
electronically. Physical submissions are not permitted.
    c. Requests for refund of PC Postage indicia which do not have an 
associated PIC must be physically submitted by authorized users to 
their provider, along with the items bearing the unused postage, in 
accordance with procedures available from their provider. Authorized 
users must submit the refund request within sixty 60 days of

[[Page 52027]]

the date(s) shown in the indicia. The refund request must be submitted 
as required in 9.3.2d. through 9.3.2g.
    d. The provider may, at its discretion, charge for processing a 
refund request.
    [Revise title, introductory text, and items a and c of 9.3.4 as 
follows:]

9.3.4 Unused, 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 authorized user or the commercial entity that prepared 
the mailing for the authorized user may request the refund. The request 
must include a letter signed by the authorized user or the commercial 
entity that prepared the mailing explaining why the mailpieces were not 
mailed.
* * * * *
    c. The authorized user, or the commercial entity that prepared the 
mailing for the authorized user, 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 local Post Office, or to a designee authorized in writing. 
The manager or designee approves or denies the refund request.
* * * * *
    [Renumber 9.3.5 as new 9.3.6. Add new 9.3.5 to read as follows:]

9.3.5 Unused, Undated PC Postage Indicia

    Refunds will not normally be provided for valid, undated, 
serialized PC Postage indicia containing commonly used postage values. 
If the authorized user believes there are extraordinary circumstances, 
requests for such refunds must be made by the authorized user in 
accordance with the procedures outlined in 9.3.3.c along with a 
detailed description of the extraordinary circumstances. Requests will 
be considered by the provider on a case by case basis.

9.3.6 Ineligible Metered Postage Items

    The following metered postage items are ineligible for refunds:
* * * * *
    [Revise item d of renumbered 9.3.6 to change ``licensing post 
office'' to ``Local Post Office'' as follows:]
    d. Indicia lacking identification of the local Post Office or other 
required information.
* * * * *

Neva R. Watson,
Attorney, Legislative.
 [FR Doc. E7-18035 Filed 9-11-07; 8:45 am]
BILLING CODE 7710-12-P