[Federal Register Volume 74, Number 221 (Wednesday, November 18, 2009)]
[Proposed Rules]
[Pages 59494-59496]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-27628]


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POSTAL SERVICE

39 CFR Part 111


Unpaid and Shortpaid Information-Based Indicia Postage Meters and 
PC Postage Products

AGENCY: Postal Service\TM\.

ACTION: Proposed rule.

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SUMMARY: The Postal Service is revising the Mailing Standards of the 
United States Postal Service, Domestic Mail Manual (DMM[supreg]), to 
implement revenue assurance procedures for information-based indicia 
(IBI) postage generated from postage evidencing systems. An automated 
process will be implemented to detect mailpieces with unpaid or 
shortpaid IBI postage. This automated process will supplement and 
enhance current procedures.

DATES: We must receive your comments on or before December 18, 2009.

ADDRESSES: Mail or deliver written comments to the Manager, Mailing 
Standards, U.S. Postal Service, 475 L'Enfant Plaza SW., Room 3436, 
Washington DC 20260-3436. You may inspect and photocopy all written 
comments at USPS Headquarters Library, 475 L'Enfant Plaza SW., 11th 
Floor N, Washington DC, between 9 a.m. and 4 p.m., Monday through 
Friday.

FOR FURTHER INFORMATION CONTACT: C. Scot Atkins, 703-280-7841 or Carol 
A. Lunkins, 202-268-7262.

SUPPLEMENTARY INFORMATION: This proposed rule includes mailing 
standards for postage printed using IBI postage meters and PC 
Postage[supreg] products including postage generated from Click-N-
Ship[supreg] service. These technologies provide convenience and ease 
of use for printing and payment of postage. However, sufficient revenue 
assurance procedures and practices must be implemented to ensure all 
required postage is paid.
    Postage meters and PC Postage products are collectively identified 
as ``postage evidencing systems.'' A postage evidencing system is a 
device or system of components a customer uses to print evidence that 
postage required for a mailing has been paid. Postage evidencing 
systems print indicia, such as meter imprints or IBI, to indicate 
postage payment. Mailers print indicia directly on a mailpiece or on a 
label that is affixed to a mailpiece.
    Postage meters are devices that allow download, storage, and 
accounting of postage through the device. Meters print indicia that may 
be IBI or non-IBI, to indicate postage payment. IBI are digitally 
generated indicia that include a two-dimensional barcode. PC Postage 
products are software-based and Internet-based solutions for managing 
postage accounts and postage payment. Mailers purchase postage using a 
computer and print indicia using desktop or label printers. PC Postage 
products print IBI indicating postage payment and may print directly 
onto mailpieces, shipping labels, and USPS-approved customized labels. 
PC Postage products are offered by USPS and USPS-approved commercial 
providers.
    IBI postage meters and PC Postage products, available from 
authorized providers, allow customers to set up and manage postage 
accounts via a secure host site, purchase postage via a credit card or 
automated clearing house (ACH) transaction, and print postage on 
envelopes, shipping labels, or customized labels for all mail classes 
except Periodicals and Bound Printed Matter.
    The Postal Service will use mail processing equipment and ancillary 
information systems to detect and capture data for mailpieces with 
unpaid or shortpaid IBI postage from postage evidencing systems. The 
Postal Service will analyze this data to ensure its validity and 
confirm whether sufficient postage was paid. In cases where deficient 
postage is confirmed, the Postal Service will notify the respective PC 
Postage or postage meter provider to take corrective measures to 
recover the appropriate postage.
    IBI printed either on a shipping label or directly on a mailpiece 
are to be used as originally printed and are not to be counterfeited, 
replicated, duplicated, falsified, or otherwise modified. In addition, 
the IBI postage affixed to a mailpiece must be equal to or greater than 
the amount due for the applicable price category and associated 
criteria such as weight, shape, and zone. Counterfeiting, replicating, 
duplicating, falsifying, or otherwise modifying IBI and not affixing 
the applicable amount of postage result in a loss of revenue for the 
Postal Service, because postage is not paid for the pieces mailed. This 
deficiency not only affects the Postal Service but our customers as 
well because rising costs may result in price adjustments.
    USPS[supreg] may deny a customer use of a postage evidencing system 
in the event of failure to comply with rules and regulations contained 
in the DMM, submission of false or fictitious information, and entering 
a series of unpaid or shortpaid mailpieces and/or packages in the 
mailstream.
    As part of the Postal Service's ongoing effort to increase 
effectiveness, enhance financial control, and reduce costs, an 
automated process will be implemented by using mail processing 
equipment and ancillary information systems to detect and capture 
unpaid and shortpaid IBI postage on mailpieces, including pieces with 
postage generated from Click-N-Ship service. This automated process 
will supplement and enhance our current manual process.

Unpaid IBI Postage

    Mailpieces with unpaid IBI postage are those for which postage is 
not paid due to the use of counterfeited, replicated, duplicated, 
falsified, or otherwise modified IBI.

Shortpaid IBI Postage

    Mailpieces with shortpaid postage are those for which the total of 
the postage affixed to a mailpiece is not equal to or greater than the 
amount due for the applicable price category and associated criteria 
such as weight, shape, and zone.
    The Postal Service will analyze captured data to verify its 
validity and use this information to identify cases where unpaid or 
shortpaid IBI postage exist. Any mailpiece identified with an unpaid or 
shortpaid IBI may be subject to the following actions: Collection of 
the unpaid or shortpaid postage, debit from the customer's account, 
revocation of the customer's account privileges, and/or civil and 
criminal fines and penalties pursuant to existing federal law. 
Customers will work with their PC Postage or postage meter providers to 
address shortpaid and unpaid IBI postage disputes and appeals. The PC 
Postage or postage meter provider will work with the Postal Service to 
resolve such appeals.
    Although we are exempt from the notice and comment requirements of 
the Administrative Procedure Act [5 U.S.C of 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), 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:

[[Page 59495]]

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, 3622, 3626, 3632, 3633, 
and 5001.

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

600 Basic Standards for All Mailing Services

* * * * *

604 Postage Payment Methods

* * * * *

4.0 Postage Meters and PC Postage Products (``Postage Evidencing 
Systems'')

4.1 Basic Information

* * * * *

4.1.2 Product Categories

    * * * The primary characteristics of postage meters and PC Postage 
products are described below.
* * * * *
    [Revise item ``b'' of 4.1.2 as follows:]
    b. PC Postage products are software-based and Internet-based 
solutions for managing postage accounts and postage payment. Mailers 
purchase postage using a computer and print indicia using desktop or 
label printers. PC Postage products print information-based indicia 
(IBI) indicating postage payment and may print directly onto 
mailpieces, shipping labels, and USPS-approved customized labels. PC 
Postage products are offered by the USPS and USPS-approved commercial 
providers. PC Postage products are typically offered by providers 
through subscription service agreements. Some components of PC Postage 
systems may be purchased as authorized by the USPS.
    [Delete item ``c'' of 4.1.2 in its entirety.]
* * * * *

4.2 Authorization To Use Postage Evidencing Systems

* * * * *
    [Revise title and text of 4.2.4 as follows:]

4.2.4 Denial of Authorization To Use

    USPS may deny use of a postage evidencing system in the event of 
failure to comply with rules and regulations contained in the DMM, 
submission of false or fictitious information, and for entering a 
series of unpaid or shortpaid mailpieces and/or packages in the 
mailstream. The customer must make the postage evidencing system and 
transaction records available and surrender the system to the provider, 
the USPS, or the USPS agent when notified to do so.
* * * * *

4.3 Postage Payment

4.3.1 Paying for Postage

    [Revise the first sentence of 4.3.1 as follows:]
    The value of the postage indicia on each mailpiece must be equal to 
or greater than the amount due for the applicable price category and 
associated criteria such as weight, shape, and zone or another amount 
permitted by mailing standards to qualify for existing prices. * * *
* * * * *
    [Add new 4.3.6, Shortpaid Information-based Indicia as follows:]

4.3.6 Shortpaid Information-Based Indicia

    Mailpieces bearing shortpaid information-based indicia (IBI) 
postage are those for which the postage indicated in the IBI is not 
equal to or greater than the postage for the applicable price category 
and associated criteria such as weight, shape, and zone. Mailpieces 
bearing shortpaid IBI postage are treated as having insufficient 
postage (see 8.1.8). Customers who repeatedly deposit mail with 
shortpaid postage will be subject to revocation of the privilege to use 
a postage evidencing system.
    [Add new 4.3.7, Unpaid Information-based Indicia as follows:]

4.3.7 Unpaid Information-Based Indicia

    Mailpieces bearing unpaid information-based indicia (IBI) are those 
for which postage is not paid due to the use of counterfeited, 
replicated, duplicated, falsified, or otherwise modified IBI. 
Counterfeited, replicated, duplicated, falsified, or otherwise modified 
IBI are not acceptable as payment of postage and are treated as omitted 
postage (see 8.2.3). Customers who repeatedly deposit mail with forms 
of nonpayment will be subject to revocation of the privilege to use a 
postage evidencing system.
* * * * *

8.0 Insufficient or Omitted Postage

8.1 Insufficient Postage

8.1.1 Definition

    [Revise the first sentence of 8.1.1 by adding a reference to 
information-based indicia as follows:]
    Except Express Mail, Registered Mail, nonmachinable First-Class 
Mail, and mail paid with information-based indicia (IBI), all other 
mail that is received at either the office of mailing or office of 
address without enough postage is marked to show the total (rounded 
off) deficiency of postage and fees due.* * *
* * * * *
    [Add new 8.1.8, Information-based Indicia Mailpieces With 
Insufficient Postage as follows:]

8.1.8 Information-Based Indicia Mailpieces With Insufficient Postage

    The total of the postage affixed to a mailpiece must be equal to or 
greater than the amount due for the applicable price category and 
associated criteria such as weight, shape, and zone. When USPS 
determines during any phase of processing that mailpieces bearing an 
information-based indicia (IBI) are shortpaid mailpieces, the Postal 
Service will notify the respective PC Postage or postage meter provider 
to take necessary actions to recover revenue loss for the total amount 
of postage due from the customer's PC Postage or postage meter account. 
The customer may appeal the decision through the PC Postage or postage 
meter provider. If the customer repeatedly deposits mailings with 
shortpaid postage, the PC Postage or postage meter account privileges 
may be revoked and/or the customer may be subject to the applicable 
civil and criminal fines and penalties pursuant to existing Federal 
law.

8.2 Omitted Postage

8.2.1 Handling Mail With Omitted Postage

    [Revise the first sentence of 8.2.1 by adding a reference to 
information-based indicia as follows:]
    Except mail paid with information-based indicia, mail of any class 
and/or indicating extra services that is received at either the office 
of mailing or office of address without postage is endorsed ``Returned 
for Postage'' and is returned to the sender without an attempt at 
delivery. * * *
* * * * *
    [Add new 8.2.3, Handling Mail With Unpaid Information-based Indicia 
as follows:]

[[Page 59496]]

8.2.3 Handling Mail With Unpaid Information-Based Indicia

    The total of the postage affixed to a mailpiece must be equal to or 
greater than the amount due for the applicable price category and 
associated criteria such as weight, shape, and zone. When the USPS 
determines during any phase of processing that mailpieces bearing an 
information-based indicia (IBI) are unpaid due to the use of 
counterfeited, replicated, duplicated, falsified, or otherwise modified 
IBI, the USPS will notify the PC Postage or postage meter provider to 
take necessary actions to reclaim revenue loss for the total amount of 
omitted postage. The customer may appeal the decision through their PC 
Postage or postage meter provider. The PC Postage or postage meter 
account may be revoked and/or the customer may be subject to applicable 
civil and criminal fines and penalties pursuant to existing Federal 
law.
* * * * *
    We will publish an appropriate amendment to 39 CFR part 111 to 
reflect these changes if our proposal is adopted.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. E9-27628 Filed 11-17-09; 8:45 am]
BILLING CODE 7710-12-P