[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]
=======================================================================
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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