[Federal Register Volume 81, Number 172 (Tuesday, September 6, 2016)]
[Proposed Rules]
[Pages 61159-61160]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-21258]


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POSTAL SERVICE

39 CFR Part 501


Revisions to the Requirements for Authority To Manufacture and 
Distribute Postage Evidencing Systems

AGENCY: Postal ServiceTM.

ACTION: Proposed rule.

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SUMMARY: The Postal Service proposes a further revision to the rules 
concerning PC postage payment methodology. This change would add 
supplementary information to clarify the revenue assurance guidelines.

DATES: Submit comments on or before October 6, 2016.

ADDRESSES: Mail or deliver written comments to the Manager, Payment 
Technology, U.S. Postal Service[supreg], 475 L'Enfant Plaza SW., Room 
3500, Washington DC 20260. You may inspect and photocopy all written 
comments at the Payment Technology office by appointment only between 
the hours of 9 a.m. and 4 p.m., Monday through Friday by calling 1-202-
268-7613 in advance. Email and faxed comments are not accepted.

FOR FURTHER INFORMATION CONTACT: Marlo Kay Ivey, Business Systems 
Analyst, Payment Technology, U.S. Postal Service, (202) 268-7613.

SUPPLEMENTARY INFORMATION: On July 17, 2015, the United States Postal 
Service published a final rule to revise the rules concerning 
authorization to manufacture and distribute postage evidencing systems 
and to reflect new revenue assurance practices (80 FR 42392). Postage 
collection under the new rules will start on March 20, 2017. This 
document proposes additional changes with regard to revenue assurance 
which would support our efforts to collect the appropriate revenue on 
mail pieces in a more automated fashion. If adopted, the proposed 
clarifying changes would also be implemented on March 20, 2017. The 
revenue assurance guidelines can be found in 39 CFR 501.16, and on 
https://ribbs.usps.gov in the site index of Automated Package 
Verification (APV) documents, named APV Standard Operating Procedure 
(SOP).

List of Subjects in 39 CFR Part 501

    Administrative practice and procedure.

    Accordingly, for the reasons stated, the Postal Service proposes to 
amend 39 CFR part 501 as follows:

PART 501--AUTHORIZATION TO MANUFACTURE AND DISTRIBUTE POSTAGE 
EVIDENCING SYSTEMS

0
1. The authority citation for 39 CFR part 501 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.

0
2. In Sec.  501.16, revise paragraph (i) to read as follows:


Sec.  501.16  PC postage payment methodology.

* * * * *
    (i) Revenue assurance. (1) The PC Postage provider must support 
business practices to assure Postal Service revenue and accurate 
payment from customers. For purposes of this paragraph and the 
Automated Package Verification (APV) Standard Operating Procedure (SOP) 
document available at https://ribbs.usps.gov/index.cfm?page=apvs, PC 
Postage provider and PC Postage vendor shall mean providers who offer 
PC Postage products (as such terms are defined in Sec.  501.1) and 
shall also include Click-N-Ship and postage resellers when such 
resellers transmit postage revenue to the Postal Service in any manner 
other than through a PC Postage provider. With respect to such 
transactions, the resellers, and not the PC Postage providers who 
provide the labels, are responsible for complying with this paragraph. 
For the purpose of this paragraph, a reseller is an entity that obtains 
postage through a PC Postage provider and is authorized to resell such 
postage to its customers pursuant to an agreement with the Postal 
Service. For example, an entity that sells postage to its customers, 
but uses a PC Postage provider to enable its customers to print postage 
labels, is a ``reseller'' hereunder. If that entity collects postage 
revenue from its customers and transmits it to the Postal Service 
directly (instead of through the PC Postage provider) that entity shall 
be deemed a ``PC Postage provider'' hereunder.
    (2)(i) For the purposes of this paragraph, a postage adjustment is 
defined as the difference between the postage or fee paid for a service 
offered by the Postal Service and the published or negotiated rate for 
that service indicating the postage due to the Postal

[[Page 61160]]

Service, at the time the mail piece is entered into the mailstream.
    (ii) When the collection of a postage adjustment or the provision 
of a refund is appropriate because a customer has underpaid or overpaid 
the amount of postage that should have been paid, and such postage 
adjustment exceeds a threshold amount to be set by the Postal Service 
from time to time in its sole discretion, the PC Postage provider 
shall, upon the Postal Service's request, take steps to pay, collect, 
or refund, as applicable, the postage adjustment. The Postal Service 
will supply the PC Postage provider with the details necessary to 
explain the correction and the amount of the postage adjustment to be 
used in the adjustment process. As part of this process, the PC Postage 
provider shall enable customers to submit electronic disputes of 
postage collections to the Postal Service.
    (iii)(A) In the case of an underpayment that exceeds the threshold 
amount, the PC Postage provider is required to pay the postage 
adjustment directly to the Postal Service; notify the customer and take 
steps to collect the postage adjustment, including but not limited to 
adjusting the funds available to the customer in the Postage Evidencing 
System; or (if directed by the Postal Service) facilitate customer 
payment by invoicing the customer or using other methods available to 
access funds of the customer.
    (B) In the case of an overpayment that exceeds the threshold 
amount, the PC Postage provider is required to notify the customer and 
take steps to refund the postage adjustment or provide a credit to the 
customer.
    (C) In either case, the PC Postage provider is required to address 
any postage discrepancies within a time period to be set by the Postal 
Service not to exceed 60 calendar days after initial notification by 
the Postal Service, subject to any applicable notification periods and 
dispute mechanisms that may be available to customers for these 
corrections.
    (iv)(A) When an underpayment has occurred, the PC Postage provider 
shall prohibit the customer from printing additional postage labels 
until the postage adjustment is satisfied. The Postal Service may, in 
its sole discretion, waive or delay this prohibition in specific 
instances.
    (B) Separately, in certain cases, such as where a customer is 
suspected of having intentionally or repeatedly underpaid postage, the 
Postal Service may, in its sole discretion, instruct the PC Postage 
provider to temporarily suspend or permanently shut down a customer's 
ability to print PC Postage, and the PC Postage provider shall promptly 
comply with such instruction.
    (v) The Postal Service, in its sole discretion, may adopt and 
modify from time to time, and the PC Postage providers shall comply 
with, business rules, developed in conjunction with the PC Postage 
providers setting forth processes (including time constraints) for 
payments, refunds, collections, notifications, dispute resolutions and 
other activities to be performed hereunder.
    (3)(i) Without regard to any threshold, if the PC Postage provider 
incorrectly programmed postage rates, delayed programming postage rate 
changes, or otherwise provided systems or software which caused 
customers to pay incorrect postage amounts, then within two calendar 
weeks of the PC Postage provider being made aware of such error, the PC 
Postage provider shall:
    (A) Correct the programming error; and
    (B) Provide the Postal Service with a detailed breakdown of how the 
error affected the PC Postage provider's collection of revenue.
    (ii) Without regard to any threshold, in the event of an 
underpayment, the PC Postage provider shall pay the Postal Service for 
the postage deficiency, except in instances where the error was caused 
by the Postal Service.
    (4) The PC Postage provider is responsible for ensuring that:
    (i) All customers pay (and the Postal Service receives) the current 
published prices or their negotiated contracted prices that are 
available to mailers who purchase postage through an approved PC 
Postage provider, in accordance with this paragraph; and
    (ii) All payments to the Postal Service (or the log files necessary 
for the Postal Service to collect payments directly from customers) are 
complete and accurate and are initiated or transmitted, as applicable, 
to the Postal Service each day.
    (5) Each PC Postage provider:
    (i) Is responsible for informing customers and obtaining electronic 
acceptance from customers to ensure that customers are informed, 
understand and agree to these payment terms, including that customers 
may be charged for deficient payments before their initial software 
installation is completed;
    (ii) Shall comply with applicable laws, rules and regulations and 
ensure that its Postage Evidencing System, software, interfaces, 
communications and other properties that are used to sell or market 
postal products accurately describe such products;
    (iii) Shall cover any costs that the Postal Service may incur as a 
result of such PC Postage provider or its employees, contractors, or 
representatives failing to comply with the terms of this section; or 
any applicable law, regulation, rule, or government policy; and
    (iv) In performing its obligations hereunder, shall comply with the 
APV SOP and all agreed-to interface documentation (as updated from time 
to time).

Stanley F. Mires,
Attorney, Federal Compliance.
[FR Doc. 2016-21258 Filed 9-2-16; 8:45 am]
 BILLING CODE 7710-12-P