[Federal Register Volume 73, Number 91 (Friday, May 9, 2008)]
[Proposed Rules]
[Pages 26353-26355]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-10358]


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POSTAL SERVICE

39 CFR Part 111


Revised Standards for Postage and Fee Refunds

AGENCY: Postal ServiceTM.

ACTION: Proposed rule.

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SUMMARY: This revised proposed rule will modify the Mailing Standards 
of the United States Postal Service, Domestic Mail Manual (DMM[reg]) 
604.9.0 to establish a minimum dollar amount for the issuance of checks 
by the USPS[reg] for the refund of unused postage value in postage 
meters and PC Postage[reg] accounts. In addition, we provide specific 
time frames and procedures for refunds of different types of postage 
produced by PC Postage and postage meter systems.

DATES: Submit comments on or before June 9, 2008.

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. 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, U.S. Postal Service, at 202-268-4281.

SUPPLEMENTARY INFORMATION: The revised proposed rule establishes a 
$25.00 minimum for USPS issuance of individual customer refund checks 
for unused postage value in postage meters and PC Postage accounts. In 
addition, the revisions in the proposed rule provide a 60-day limit for 
submission of physical refunds for both PC Postage and postage meter 
indicia; specify a 10-day limit and procedures for requesting refunds 
processed electronically for items bearing a Product Identification 
Code (PIC) produced by a PC Postage system; and establish refund 
procedures for unused, undated PC Postage indicia.
    The proposed revision of DMM 604.9.0 was published for comment in 
the Federal Register, September 12, 2007 (Vol. 72, No. 176, pages 
52025-52027). In that publication the minimum for USPS issuance of 
individual refund checks was $5.00. The Postal Service received two 
written comments from postage providers after the closing date of 
October 12, 2007; and both were considered in our response.
    The Postal Service gave thorough consideration to the comments it 
received and modified the proposed rule as appropriate.

Discussion of Comments

    Both commenters supported the proposed rule, except for provisions 
in DMM 604.9.3.1a and 604.9.3.1b concerning the $5.00 minimum for 
refund of unused postage.
    The intent of DMM 604.9.3.1a and 604.9.3.1b is to reduce the costly 
process of issuing checks by the USPS. In this context, the USPS 
defines ``refund'' as the check that is issued to customers when the 
account with their current provider is closed and the USPS must 
``refund'' the amount left in their device.
    In the PC Postage model, providers refund unused money to their 
customers when an account is closed. They provide the USPS with 
documentation on refunds made to customers and request reimbursement 
from the USPS for the refunded postage. Following this model, customers 
are not refused any monies left unused in an account they no longer 
wish to have.
    One commenter recommended rephrasing the provision to make it clear 
this does not prohibit the provider from crediting a customer's account 
or transferring the customer's funds to another device. The Postal 
Service reviewed the suggestion and amended the wording of the 
provision to clarify this matter.
    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[reg]), 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.

    Accordingly, 39 CFR Part 111 is proposed to be amended as follows:

PART 111--[AMENDED]

    1. The authority citation for 39 CFR Part 111 continues to read as 
follows:


[[Page 26354]]


    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 410, 
414, 416, 3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.

    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 authorized user 
may appeal an adverse ruling within 30 days through the manager, 
business mail entry, or designee, to the Pricing and Classification 
Service Center (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 authorized user 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.
* * * * *

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 $25.00 or more and 
to change ``licensee'' to ``authorized user'' 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 user's account. The USPS will not 
issue individual customer refund checks for unused postage value less 
than $25.00 remaining in a postage evidencing system.
    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. The USPS will not 
issue individual customer refund checks for unused postage value less 
than $25.00 remaining in a postage evidencing system.

9.3.2 Unused, Dated Postage Evidencing System Indicia, Except 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 9.3.3. All other metered postage refund requests must 
be submitted as follows:
    [Revise items a through e only 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 with postage 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

[[Page 26355]]

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.
* * * * *

9.3.3 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:
    [Revise 9.3.3 a, b, and c only 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, Signature Confirmation, Express Mail, or Confirm Code 
service. 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 the 
date(s) shown in the indicia. The refund request must be submitted as 
required in 9.3.2d. through 9.3.2g.
* * * * *
    [Revise title and items a and c only 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 current 9.3.5 through 9.3.7 as new 9.3.6 through 9.3.8 
and add new 9.3.5 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. E8-10358 Filed 5-8-08; 8:45 am]
BILLING CODE 7710-12-P