[Federal Register Volume 76, Number 129 (Wednesday, July 6, 2011)]
[Rules and Regulations]
[Pages 39299-39303]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-16802]
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POSTAL SERVICE
39 CFR Part 111
Shortpaid and Unpaid Information-Based Indicia (IBI) Postage and
Shortpaid Express Mail Postage
AGENCY: Postal ServiceTM.
ACTION: Final rule.
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SUMMARY: The Postal Service will revise Mailing Standards of the United
States Postal Service, Domestic Mail Manual (DMM[supreg]) 604.4, 604.8,
and 604.10, to implement revenue protection procedures for mailpieces
entered with shortpaid and unpaid Information Based Indicia (IBI)
postage payment and to implement revenue protection procedures for
shortpaid Express Mail[supreg] postage.
DATES: Effective September 6, 2011.
FOR FURTHER INFORMATION CONTACT: Carla Sherry at 703-280-7068, or Carol
A. Lunkins at 202-268-7262.
SUPPLEMENTARY INFORMATION: On February 22, 2011, the Postal Service
published the Federal Register proposed rule, Shortpaid and Unpaid
Information-Based Indicia (IBI) Postage and Shortpaid Express Mail
Postage, Revised Proposal (76 FR 9702-9705). The Postal Service
received four comments and gave them each consideration and will adopt
the proposed rule with minor revisions.
Comments
One commenter raised concerns about the ability of customers who
pay postage with IBI postage meters to use an existing account and/or
payment method in lieu of a credit card to pay revenue deficiencies. At
the present time, the Postal Service will not permit customers to use
existing accounts and/or payment methods in lieu of credit cards to pay
revenue deficiencies, but this may be a future consideration.
One commenter expressed concern regarding the Postal Service's
proposal to use an electronic notification process to recover revenue
deficiencies from customers using IBI postage meters. Only customers
who pay postage with postage evidencing systems with e-mail addresses
either on file with the Postal Service or with whom the Postal Service
has an agreement and a process in place to obtain e-mail addresses will
receive an electronic notification. If a customer's e-mail address is
not available, the Postal Service will use other existing processes to
recover revenue deficiencies.
One commenter asked for clarification of ``other non-electronic
processes'' that will be used to identify shortpaid and unpaid postage.
In the event that the new electronic processes are unavailable, the
Postal Service will use existing methods to collect unpaid and
shortpaid IBI postage. The Postal Service is making a minor change in
the language to state, ``In the event that electronic processes are
unavailable, other existing processes may be used to recover revenue
deficiency as required.''
One commenter asked for clarification regarding the procedures for
remedying postage deficiencies generated from Click-N-Ship. The Postal
Service is making a minor change to further clarify that the new
automated procedures for detecting and recovering postage deficiencies
apply to shortpaid and unpaid postage generated from Click-N-Ship.
However, this does not preclude the use of existing processes to
identify or recover postage deficiencies. For items with shortpaid IBI
postage that is generated from Click-N-Ship, the Postal Service will
continue to allow mailers to remit payments for such postage
deficiencies via Click-N-Ship and follow the existing postage
deficiency process.
With this final rule, the Postal Service implements new procedures
to manage shortpaid Express Mail postage and a new process to detect
mailpieces with shortpaid and unpaid IBI postage generated from the
following postage evidencing systems: Click-N-Ship[supreg], IBI postage
meters, and PC Postage[supreg] products.
The Postal Service also implements a new USPS Web-based resolution
process to remedy shortpaid and unpaid IBI postage payment
deficiencies; a process to dispute shortpaid and unpaid IBI postage
deficiency assessments; and a process to appeal USPS decisions relative
to shortpaid and unpaid IBI postage. During this process, customers
will be notified electronically of the postage deficiency and be
provided a link to a specific USPS Web-based customer payment portal to
resolve the shortage. In addition to this new process, the Postal
Service will continue to use the existing postage deficiency payment
process for shortpaid and
[[Page 39300]]
unpaid postage generated by Click-N-Ship.
Express Mail Shortpaid Procedure
For an Express Mail Next Day, Second Day, Military, or Custom
Designed Service item received at the origin office of mailing with
insufficient postage, the mailer is contacted to correct the postage
deficiency prior to dispatch of the Express Mail item. If the mailer
cannot be contacted before dispatch from the origin office, or if the
Express Mail item with insufficient postage is identified during
processing operations or at the destination Post Office, the Express
Mail item is endorsed ``Postage Due'', marked to show the total
deficiency of postage and fees, and then dispatched to the destination
Post Office for delivery to the addressee upon payment of the
deficiency.
If the addressee refuses to pay the postage due amount, the Express
Mail item is endorsed ``Return to Sender--Refused.'' The postage
deficiency is then collected when the Express Mail item is returned to
the original sender. If the original sender chooses to remail the item,
a new Express Mail label and new postage and fees must be affixed.
Postage Evidencing Systems
Postage meters, PC Postage products, and Click-N-Ship 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 mailing has been paid.
Information-Based Indicia
Information-Based Indicia (IBI) are digitally generated indicia
that include a two-dimensional barcode.
Revenue Deficiency
Revenue deficiency includes both shortpaid and unpaid postage which
occurs when any mailpiece has less postage than required for the
applicable price category and associated class, weight, shape, zone,
and extra services.
Shortpaid postage is revenue deficiency for which the valid postage
on a mailpiece is less than the amount due.
Unpaid postage is a revenue deficiency for which postage is
deficient due to the lack of affixed postage or the use of
counterfeited, replicated, duplicated, falsified, or otherwise modified
postage.
Detection Process for Revenue Deficiency
When potential shortpaid or unpaid IBI postage is detected on a
mailpiece, the Postal Service will subsequently verify the postage to
ensure its validity and determine whether the amount is sufficient.
When the IBI postage on a mailpiece is confirmed to be shortpaid or
unpaid, the corrective measures outlined below will be taken to recover
the applicable revenue deficiency.
Electronic Notification of Revenue Deficiencies
In most cases, the Postal Service will electronically notify both
the mailer and the postage evidencing system service provider of the
revenue deficiency and deliver the mailpiece to the addressee. The
electronic notification provides a link to the USPS[reg] Web-based
customer payment portal that will enable the mailer to pay or dispute
the revenue deficiency. In the event that electronic means are
unavailable, other existing processes may be used to recover revenue
deficiencies as required.
Resolution Process
Where applicable, the Postal Service will provide a resolution
process that will be accessible through the USPS Web-based customer
payment portal to enable mailers to pay, dispute or appeal revenue
deficiencies for IBI postage generated from postage evidencing systems.
These processes are outlined below.
Payment Process
The mailer has 14 days from the date that the Postal Service sends
the revenue deficiency electronic notification to pay the deficiency.
The payment process is as follows:
During the 14-day resolution period, the mailer must remit
the payment for the revenue deficiency by accessing the USPS Web-based
customer payment portal or through an otherwise authorized Postal
Service payment method as indicated in the electronic notification.
After 14 days, if a mailer has not paid or taken action to
dispute a revenue deficiency, the Postal Service may notify the
mailer's postage evidencing system service provider to temporarily
suspend the mailer's account.
When an electronic notification sent to a mailer is
undeliverable, the Postal Service may notify the mailer's postage
evidencing system service provider to temporarily suspend the mailer's
account prior to the end of the 14-day period.
When a mailer's cumulative revenue deficiency continues to
increase during the 14-day period, the Postal Service may notify the
mailer's postage evidencing system service provider to temporarily
suspend the mailer's account prior to the end of the 14-day period.
If the mailer feels the revenue deficiency is in error,
the mailer may dispute the revenue deficiency during this 14-day
period.
Dispute Process
The mailer has 14 days from the date the Postal Service sends the
revenue deficiency electronic notification to dispute the deficiency.
The Postal Service will also send an electronic notification of the
approved (upheld) or denied dispute to the mailer. If the Postal
Service upholds the mailer's dispute, then the mailer is required to
take no further action. The dispute process is as follows:
During this 14-day period, the mailer must take action to
dispute the revenue deficiency by accessing the USPS Web-based customer
payment portal or through an otherwise authorized Postal Service
dispute method as indicated in the electronic notification.
The mailer must provide information to substantiate that
the postage affixed was valid and sufficient for the postage and
service fees associated with the mailpiece.
After 14 days, if a mailer has not taken action to pay or
dispute a revenue deficiency, the Postal Service will notify the
mailer's postage evidencing system service provider to temporarily
suspend the mailer's account.
When an electronic notification that is sent to a mailer
is undeliverable, the Postal Service may notify the mailer's postage
evidencing system service provider to temporarily suspend the mailer's
account prior to the end of the 14-day period.
When a mailer's cumulative revenue deficiency continues to
increase during this 14-day period, the Postal Service may notify the
mailer's postage evidencing system service provider to temporarily
suspend the mailer's account prior to the end of the 14-day period.
Denied Disputes and the Appeal Process
When a dispute is denied, the mailer has 7 days from the date that
the Postal Service sends the electronic notification of the denial to
pay the revenue deficiency or to file an appeal. The mailer may pay the
deficiency or appeal the decision by accessing the USPS Web-based
customer payment portal or through an otherwise authorized Postal
Service payment or appeal method as indicated in the electronic
notification. The Postal Service will make a final
[[Page 39301]]
decision regarding the appeal request. If the Postal Service upholds
the mailer's appeal, the Postal Service will notify the mailer of the
decision, and the mailer is required to take no further action. The
appeal process is as follows:
The appeal process requires that the mailer provide
additional evidence to substantiate that the postage affixed was valid
and sufficient for the postage and service fees associated with the
mailpiece.
After 7 days, if a mailer has not taken action to pay or
appeal the revenue deficiency denied in the dispute request, the Postal
Service may notify the mailer's postage evidencing system service
provider to temporarily suspend the mailer's account.
When an electronic notification that is sent to a mailer
is undeliverable, the Postal Service may notify the mailer's postage
evidencing system service provider to temporarily suspend the mailer's
account prior to the end of the 7-day period.
When a mailer's cumulative revenue deficiency continues to
increase during this 7-day period, the Postal Service may notify the
mailer's postage evidencing system service provider to temporarily
suspend the mailer's account prior to the end of the 7-day period.
Denied Appeals
When the Postal Service denies the appeal request, the mailer will
be notified of the decision. The mailer must then pay the revenue
deficiency, within 7 days from the date that of the electronic
notification of appeal denial, by accessing the USPS Web-based customer
payment portal or through an otherwise authorized Postal Service
payment method as indicated in the electronic notification. The process
for denied appeals is as follows:
If a mailer has not taken action to pay the revenue
deficiency within 7 days, the Postal Service notifies the mailer's
postage evidencing system service provider to suspend the mailer's
account.
If the electronic notification to a mailer is
undeliverable, the Postal Service may notify the mailer's postage
evidencing system service provider to suspend the mailer's account
prior to the end of the 7-day period.
If a mailer's cumulative revenue deficiency continues to
increase during this 7-day period, the Postal Service may notify the
mailer's postage evidencing system service provider to suspend the
mailer's account prior to the end of the 7-day period.
Denial of Use of Postage Evidencing Systems
When a mailer fails to meet the standards, submits false or
incomplete information, or deposits shortpaid and unpaid mailpieces in
the mailstream, the Postal Service may deny a mailer use of a postage
evidencing system.
Any mailer who deposits mailpieces with shortpaid or unpaid IBI
postage or fees may be subject to some or all of the following proposed
actions:
Collection of the shortpaid or unpaid postage.
Revocation of the mailer's account privileges.
Civil and criminal fines and penalties pursuant to
existing Federal law.
The Postal Service adopts the following changes to Mailing
Standards of the United States Postal Service, Domestic Mail Manual
(DMM), which is 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 amended as follows:
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); 13 U.S.C. 301-307; 18 U.S.C. 1692-
1737; 39 U.S.C. 101, 401, 403, 404, 414, 416, 3001-3011, 3201-3219,
3403-3406, 3621, 3622, 3626, 3632, 3633, and 5001.
0
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 items 4.1.2b and c as follows:]
b. PC Postage products allow mailers to purchase and print postage
with Information-Based Indicia (IBI) directly onto mailpieces, shipping
labels, and USPS-approved customized labels.
c. Click-N-Ship and USPS-approved commercial providers offer PC
Postage products for mailers through subscription service agreements.
* * * * *
4.2 Authorization To Use Postage Evidencing Systems
* * * * *
4.2.4 Denial of Use
[Revise 4.2.4 as follows:]
The mailer authorized to use a postage evidencing system may be
denied use when the mailer:
a. Fails to comply with mailing standards.
b. Submits false or incomplete information.
c. Enters shortpaid or unpaid mailpieces into the mailstream.
[Renumber current item 4.2.5 as new 4.2.6 and add new item 4.2.5 as
follows:]
4.2.5 Surrender of Postage Evidencing System
If authorization to use a Postage Evidencing System is denied, the
mailer must surrender the systems, upon request, to the service
provider, USPS, or USPS authorized agent.
4.2.6 Appeal Process
[Revise text of renumbered 4.2.6 as follows:]
Appeals regarding standards in this section or on the basis of
noncompliance may be filed as follows:
a. IBI postage mailers must appeal under 4.4.8.
b. All other appeals must be in writing to the manager, Postage
Technology Management (see 608.8.1 for address).
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 on each mailpiece must be equal to or
greater than the amount due for the applicable price and any extra
service fees, or another amount permitted by mailing standards. * * *
* * * * *
[Renumber current items 4.4 through 4.6 as new 4.5 through 4.7, and
add new item 4.4 as follows:]
4.4 Shortpaid and Unpaid Information-Based Indicia (IBI)
4.4.1 Definitions
Mailpieces bearing shortpaid postage are those for which the total
postage and
[[Page 39302]]
fees affixed are less than the postage required for the applicable
price and any extra services fees. Mailpieces bearing unpaid IBI are
those for which the mailer has not paid the postage or additional fees
due to the lack of affixed postage, the use of counterfeited,
replicated, duplicated, falsified, otherwise modified IBI, or IBI with
zero value.
4.4.2 Detection Process for Revenue Deficiency
For mailpieces with shortpaid or unpaid postage found in the
mailstream, manual and automated processes are used to detect and
verify the revenue deficiencies.
4.4.3 Handling of Mailpieces With IBI Postage Revenue Deficiencies
For confirmed shortpaid or unpaid IBI postage, corrective measures
may include:
a. Delivering the mailpiece to the addressee and collecting the
revenue deficiency as postage due.
b. Collecting the revenue deficiency from the sender as described
in 4.4.4 through 4.4.9.
c. Returning the mailpiece to the sender.
4.4.4 Electronic Notification of Revenue Deficiencies
Upon confirmation of a revenue deficiency with IBI postage, the
Postal Service electronically notifies both the mailer and the postage
evidencing system service provider of the revenue deficiency and
delivers the mailpiece to the addressee. The notification provides a
link to the Web-based customer payment portal that permits the mailer
to pay or dispute the revenue deficiency.
4.4.5 Resolution Process
A resolution process is provided through the Web-based customer
payment portal.
4.4.6 Payment Process
The mailer must make payment within 14 days from the date the
Postal Service sends the electronic notification by accessing the Web-
based customer payment portal or choose another method identified in
the notification. Any mailer disputes regarding the revenue deficiency
must be made during this 14-day period. The postage evidencing system
service provider may be notified to temporarily suspend the mailer's
account under the following conditions:
a. After 14 days, if a mailer has not paid or disputed a revenue
deficiency.
b. When an electronic notification to a mailer is undeliverable.
c. When a mailer's cumulative revenue deficiency increases during
the 14-day period due to additional mailpieces being identified as
shortpaid or unpaid.
4.4.7 Dispute Process
Mailers wishing to dispute the deficiency payment must do so within
14 days by accessing the Web-based customer payment portal or other
method identified in the electronic notification and substantiate that
the postage affixed was valid and sufficient for the postage and
applicable fees. An electronic notification is sent to the mailer of
the decision to uphold or deny the dispute. If the Postal Service
upholds the dispute, the mailer is not required to take further action.
4.4.8 Denied Disputes and the Appeal Process
If a dispute of a revenue deficiency is denied, the mailer has 7
days from the date of the electronic notification to file an appeal, by
accessing the Web-based customer payment portal or choosing another
method identified in the notification. The mailer must provide
additional evidence to substantiate that the postage affixed was valid
and sufficient for the postage and fees. If the appeal decision is
upheld, the mailer takes no further action. The Postal Service may
notify the postage evidencing system service provider to temporarily
suspend the mailer's account under the following conditions:
a. After 7 days, if a mailer has not paid or appealed the revenue
deficiency.
b. When an electronic notification to a mailer is undeliverable.
c. When a mailer's cumulative revenue deficiency increases during
the 7-day period due to additional mailpieces being identified as
shortpaid or unpaid.
4.4.9 Denied Appeals
If the appeal is denied, the mailer must pay the revenue deficiency
within 7 days from the date of the electronic notification by accessing
the Web-based customer payment portal or choosing another USPS-
authorized method identified in the notification. The postage
evidencing system service provider may be notified to suspend the
mailer's account under the following conditions:
a. After 7 days, if a mailer has not paid the revenue deficiency.
b. When an electronic notification to a mailer is undeliverable.
c. When a mailer's cumulative revenue deficiency increases during
the 7-day period due to additional mailpieces being identified as
shortpaid or unpaid.
* * * * *
8.0 Insufficient or Omitted Postage
8.1 Insufficient Postage
8.1.1 Definition
[Revise the second and third sentences of 8.1.1, and add a new
fourth sentence as follows:]
* * * Such individual pieces (or quantities fewer than 10) are
delivered to the addressee on payment of the charges marked on the
mail. For mailings of 10 or more pieces, the mailer is notified so that
the postage charges may be paid before dispatch. For any mailpiece with
insufficient postage generated by postage evidencing systems, the USPS
may follow the process in 4.4.4 through 4.4.9.
* * * * *
[Renumber current item 8.1.7 as 8.1.8 and add new 8.1.7 as
follows:]
8.1.7 Express Mail Corporate Accounts and Federal Agency Accounts
Express Mail Corporate accounts and Federal government accounts
that use a ``Postage and Fees Paid'' indicia are debited for the
correct amount of postage and fees at the time of mailing.
[Revise the heading and text of renumbered 8.1.8 as follows:]
8.1.8 Express Mail With Insufficient Postage--Acceptance
When Express Mail items are received at the office of mailing with
insufficient postage, the Postal Service will contact the mailer to
correct the postage deficiency prior to dispatch of the item. If the
mailer cannot be contacted prior to dispatch, the deficiency is handled
under 8.1.9.
[Add new items 8.1.9 through 8.1.11 as follows:]
8.1.9 Express Mail With Insufficient Postage--Processing Operations
For Express Mail items with insufficient postage that are
identified during processing operations or at the destination Post
Office, the Postal Service will:
a. Endorse the item ``Postage Due.''
b. Mark the item to show the total deficiency of postage and fees.
c. Deliver the item to the addressee upon payment of the postage
due.
d. If payment is refused by addressee, endorse the item ``Return to
Sender--Refused'' and return the item to the sender, upon collection of
the postage deficiency.
[[Page 39303]]
8.1.10 Express Mail With Insufficient IBI Postage--Postage Evidencing
Systems
For Express Mail items with insufficient IBI postage generated by
postage evidencing systems, USPS may follow the process in 4.4.4
through 4.4.9.
8.1.11 Remailing Express Mail With Insufficient Postage
Express Mail items with insufficient postage are returned to the
sender after collecting the postage deficiency when an effort to
contact the sender before dispatch fails and when the addressee refuses
to pay the postage due. If the item is remailed as Express Mail, the
sender must affix a new Express Mail label with new postage and any
applicable fees.
* * * * *
10.0 Revenue Deficiency
10.1 General
* * * * *
10.1.2 Appeal of Ruling
[Revise the first sentence of 10.1.2 as follows:]
Except as provided in 4.4.4 through 4.4.9, 10.2, and 703.1.0, a
mailer may appeal a revenue deficiency assessment by sending a written
appeal to the postmaster or manager in 10.1.2a through 10.1.2c within
30 days of receipt of the notification. * * *
* * * * *
We will publish an appropriate amendment to 39 CFR Part 111 to
reflect these changes.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 2011-16802 Filed 7-5-11; 8:45 am]
BILLING CODE 7710-12-P