[Code of Federal Regulations]
[Title 39, Volume 1]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 39CFR501.12]

[Page 178-179]
 
                        TITLE 39--POSTAL SERVICE
 
                 CHAPTER I--UNITED STATES POSTAL SERVICE
 
PART 501--AUTHORIZATION TO MANUFACTURE AND DISTRIBUTE POSTAGE METERS--Table 
of Contents
 
Sec. 501.12  Suspension and revocation of approval.

    (a) The Postal Service may suspend meter approval under Sec. 501.10 
if the Postal Service has probable cause to believe that a 
manufacturer's meter or class of meters poses an unreasonable risk to 
postal revenue. Suspension of approval to manufacture or distribute a 
meter or class of meters in whole or in part shall be based on the 
potential risk to postal revenue. Before determining whether approval of 
a meter or class of meters should be revoked, the procedures in 
paragraph (b) of this section shall be followed.
    (b) Suspension in all cases shall be as follows:
    (1) Upon determination by the Postal Service that a meter poses an 
unreasonable risk to postal revenue, the Postal Service shall issue a 
written notice of proposed suspension citing deficiencies for which 
suspension may be imposed under paragraph (b)(2) of this section. The 
manufacturer shall be given an opportunity to correct deficiencies and 
achieve compliance with all requirements within a time limit 
corresponding to the potential risk to postal revenue.
    (2) If the Postal Service determines that the manufacturer has 
failed to correct cited deficiencies within the specified time limit, 
the Postal Service shall issue a written notice setting forth the facts 
and reasons for the decision to suspend and the effective date if a 
written defense is not presented as provided in paragraph (c) of this 
section.

[[Page 179]]

    (3) If, upon consideration of the defense as provided in paragraph 
(d) of this section, the Postal Service deems that the suspension is 
warranted, the suspension shall remain in effect for up to 90 days 
unless withdrawn by the Postal Service, as provided in paragraph 
(b)(4)(iii) of this section.
    (4) At the end of the 90-day suspension, the Postal Service may:
    (i) Extend the suspension in order to allow more time for 
investigation or to allow the manufacturer to correct the problem;
    (ii) Make a determination to revoke the approval of the 
manufacturer's meter or class of meters; or
    (iii) Withdraw the suspension based on identification and 
implementation of a satisfactory solution to the problem. Manufacturer 
suspensions may be withdrawn before the end of the 90-day period if the 
Postal Service determines that the manufacturer's solution and 
implementation are satisfactory.
    (c) The manufacturer may present the Postal Service with a written 
defense to any suspension or revocation determination within 30 calendar 
days of receiving the written notice (unless a shorter period is deemed 
necessary). The defense must include all supporting evidence and state 
with specificity the reasons for which the order should not be imposed.
    (d) After receipt and consideration of the written defense, the 
Postal Service shall advise the manufacturer of the decision and the 
facts and reasons for it. The decision shall be effective on receipt 
unless it provides otherwise. The decision shall also advise the 
manufacturer that it may appeal that determination within 30 calendar 
days of receiving written notice (unless a shorter period is deemed 
necessary), as specified therein. The appeal must include all supporting 
evidence and state with specificity the reasons that the manufacturer 
believes that the decision is erroneous.
    (e) An order or final decision under this section does not preclude 
any other criminal or civil statutory, common law, or administrative 
remedy that is available by law to the Postal Service, the United 
States, or any other person or concern.