[Federal Register Volume 88, Number 32 (Thursday, February 16, 2023)]
[Proposed Rules]
[Pages 10068-10069]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-03195]


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POSTAL SERVICE

39 CFR Part 111


Counterfeit Postage

AGENCY: Postal ServiceTM.

ACTION: Proposed rule.

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SUMMARY: The Postal Service is proposing to amend Mailing Standards of 
the United States Postal Service, Domestic Mail Manual (DMM[supreg]) in 
various sections to clarify the handling of items found in the mail 
bearing counterfeit postage.

DATES: Submit comments on or before March 20, 2023.

ADDRESSES: Mail or deliver written comments to the manager, Product 
Classification, U.S. Postal Service, 475 L'Enfant Plaza SW, Room 4446, 
Washington, DC 20260-5015. If sending comments by email, include the 
name and address of the commenter and send to 
[email protected], with a subject line of ``Counterfeit 
Postage''. Faxed comments are not accepted.

Confidentiality

    All submitted comments and attachments are part of the public 
record and subject to disclosure. Do not enclose any material in your 
comments that you consider to be confidential or inappropriate for 
public disclosure.
    You may inspect and photocopy all written comments, by appointment 
only, at USPS[supreg] Headquarters Library, 475 L'Enfant Plaza SW, 11th 
Floor North, Washington, DC 20260. These records are available for 
review on Monday through Friday, 9 a.m.-4 p.m., by calling 202-268-
2906.

FOR FURTHER INFORMATION CONTACT: Jane Quenk at (202) 268-7098 or Garry 
Rodriguez at (202) 268-7281.

SUPPLEMENTARY INFORMATION: 

[[Page 10069]]

Background

    In recent years, the use of counterfeit postage has increased 
substantially, especially on packages. Use of counterfeit postage is a 
crime; it reflects an intentional effort to defraud the Postal Service; 
and it has resulted in a significant loss of revenue to the Postal 
Service. Typically, such mail does not have an accurate return address. 
The Postal Service proposes to amend current regulations to distinguish 
counterfeit postage from mail without any postage affixed and to 
address the use of counterfeit postage more effectively.
    Mail deposited without any postage affixed is endorsed ``Returned 
for Postage'' and is returned to the sender without any attempt at 
delivery (DMM 604.8.2.1). Counterfeit postage differs from the absence 
of any postage, however, as the former is a criminal attempt to defraud 
the Postal Service, while the absence of any postage may reflect an 
inadvertent failure to affix postage. Also, mail with counterfeit 
postage often does not have an accurate return address, or it has a 
return address not related to the mailer. To address the problems posed 
by counterfeit mailings, the Postal Service is amending its regulations 
to provide public notice that mailings with counterfeit postage will be 
treated as abandoned; consequently, such mail may be opened and 
disposed of at the Postal Service's discretion.

Proposal

    The Postal Service seeks to distinguish the handling of articles 
entered without postage under subsection 604.8.2 from those that 
contain counterfeit postage.
    Therefore, the Postal Service is proposing to revise subsection 
604.8.4 to provide that when all articles with counterfeit postage are 
found they will be considered abandoned and disposed of at the 
discretion of the Postal Service, rather than be returned to the sender 
as the affixing of counterfeit postage reflects a refusal to pay 
postage or an intentional effort to avoid paying postage.
    The Postal Service is proposing to implement this change effective 
April 1, 2023.
    We believe this proposed revision will provide customers with 
clarity on the handling of items bearing counterfeit postage.
    Although 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), the Postal Service invites public 
comment 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.
    We will publish an appropriate amendment to 39 CFR part 111 to 
reflect these changes.

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]

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, 401-404, 414, 416, 3001-3018, 3201-3220, 3401-
3406, 3621, 3622, 3626, 3629, 3631-3633, 3641, 3681-3685, and 5001.


0
2. Revise the 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)

* * * * *

500 Additional Mailing Services

* * * * *

507 Mailer Services

1.0 Treatment of Mail

1.1 Nondelivery of Mail

    Mail can be undeliverable for these reasons:
* * * * *
    [Renumber items b through g as c through h and add new item b to 
read as follows:]
    b. Counterfeit Postage (see 604.8.4).
* * * * *

604 Postage Payment Methods and Refunds

1.0 Stamps

* * * * *

1.4 Imitations of Stamps

    [Revise the text of 1.4 to read as follows:]
    Matter bearing imitations of postage stamps, in adhesive or printed 
form, or private seals or stickers resembling a postage stamp in form 
and design, is not acceptable for mailing (See 8.4.2 for handling items 
with counterfeit postage.).
* * * * *

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

* * * * *

4.4 Postage Discrepancies

4.4.1 Definitions

    [Revise the text of 4.4.1 by deleting the last sentence.]
* * * * *

8.0 Insufficient or Omitted Postage

* * * * *

8.2 Omitted Postage

8.2.1 Handling Mail With Omitted Postage

    [Revise the first sentence of 8.2.1 to read as follows:]
    Except under 8.4 matter of any class, including that for which 
extra services are indicated, 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. 
* * *
* * * * *
    [Revise the heading and text of 8.4 to read as follows:]

8.4 Counterfeit Postage

8.4.1 Definition

    Counterfeit postage is any marking or indicia that has been made, 
printed, or otherwise created without authorization from the Postal 
Service that is printed or applied, or otherwise affixed, on an article 
placed in the mails that indicates or represents that valid postage has 
been paid to mail the article.

8.4.2 Handling Items With Counterfeit Postage

    Items found in the mail bearing counterfeit postage will be 
considered abandoned and disposed of at the discretion of the Postal 
Service.
* * * * *

Tram T. Pham,
Attorney, Ethics and Legal Compliance.
[FR Doc. 2023-03195 Filed 2-15-23; 8:45 am]
BILLING CODE P