[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: 39CFR501.24]

[Page 187-188]
 
                        TITLE 39--POSTAL SERVICE
 
                 CHAPTER I--UNITED STATES POSTAL SERVICE
 
PART 501--AUTHORIZATION TO MANUFACTURE AND DISTRIBUTE POSTAGE METERS--Table 
of Contents
 
Sec. 501.24  Administrative sanction.

    (a) Meter for purposes of this section means any postage meter 
manufactured by an authorized postage meter manufacturer under 
Sec. 501.1 that is not owned or leased by the Postal Service.
    (b) An authorized manufacturer that, without just cause, fails to 
conduct or perform adequately any of the controls in Sec. 501.22, to 
follow standardized lost and stolen meter incident reporting in 
Sec. 501.26, or to conduct any of the inspections required by 
Sec. 501.25 in a timely fashion is subject to an administrative sanction 
based on the investigative and administrative costs and documented 
revenue losses (net of any amount collected by the Postal Service from 
the licensee or meter user) with interest per occurrence measured from 
the date on which the cost and/or loss occurred, as determined by the 
Postal Service. Sanctions shall be based on the costs and revenue losses 
that result from the manufacturer's failure to comply with these 
requirements.
    (c) The Postal Service may impose an administrative sanction under 
this section by issuing a written notice to the manufacturer setting 
forth the facts and reasons on which the determination to impose the 
sanction is based. The Postal Service shall determine all costs and 
losses. The notice shall advise the manufacturer of the date that the 
action shall take effect if a written defense is not presented within 30 
calendar days of receipt of the notice.
    (d) The manufacturer may present to the Postal Service a written 
defense to the proposed action within 30 calendar days of receipt of the 
notice. The defense must include all supporting evidence and state with 
specificity the reasons for which the sanction should not be imposed.
    (e) 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.
    (f) The manufacturer may submit a written appeal of the decision 
within 30 calendar days of receiving the decision, addressed to the 
manager of Retail and Customer Service, Postal Service Headquarters. The 
appeal must include all supporting evidence and state with specificity 
the reasons that the manufacturer believes that the administrative 
sanction was erroneously imposed. The submission of an appeal stays the 
effectiveness of the sanction.
    (g) The imposition of an administrative sanction under this section 
does not preclude any other criminal or civil statutory, common law, or 
administrative remedy that is available by

[[Page 188]]

law to the Postal Service, the United States, or any other person or 
concern.

[60 FR 30726, June 9, 1995. Redesignated at 66 FR 55097, Nov. 1, 2001]