[Code of Federal Regulations]
[Title 39, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 39CFR501.2]

[Page 160-161]
 
                        TITLE 39--POSTAL SERVICE
 
                 CHAPTER I--UNITED STATES POSTAL SERVICE
 
PART 501_AUTHORIZATION TO MANUFACTURE AND DISTRIBUTE POSTAGE
 
Sec.  501.2  Postage Evidencing System provider authorization.

    (a) The Postal Service considers Postage Evidencing Systems and 
their respective infrastructure to be essential to the exercise of its 
specific powers to prescribe postage and provide evidence of payment of 
postage under 39 U.S.C. 404(a)(2) and (4).
    (b) Due to the potential for adverse impact upon Postal Service 
revenue, the following activities may not be engaged in by any person or 
entity without prior, written approval of the Postal Service:

[[Page 161]]

    (1) Producing or distributing any Postage Evidencing System that 
generates U.S. postage.
    (2) Repairing, distributing, refurbishing, remanufacturing, 
modifying, or destroying any component of a Postage Evidencing System 
that accounts for or authorizes the printing of U.S. postage.
    (3) Owning or operating an infrastructure that maintains operating 
data for the production of U.S. postage, or accounts for U.S. postage 
purchased for distribution through a Postage Evidencing System.
    (4) Owning or operating an infrastructure that maintains operating 
data that is used to facilitate registration with the Postal Service of 
customers of a Postage Evidencing System.
    (c) Any person or entity seeking authorization to perform any 
activity described in paragraph (b) of this section, or to materially 
modify any activity previously approved by the Postal Service, must 
submit a request to the Postal Service in person or in writing. 
Decisions of the Postal Service upon such requests are effective only if 
in writing (including electronic mail).
    (d) Approval shall be based upon satisfactory evidence of the 
applicant's integrity and financial responsibility, commitment to the 
security of the Postage Evidencing System, and a determination that 
disclosure to the applicant of Postal Service customer, financial, or 
other data of a commercial nature necessary to perform the function for 
which approval is sought would be appropriate and consistent with good 
business practices within the meaning of 39 U.S.C. 410(c)(2). The Postal 
Service may condition its approval upon the applicant's agreement to 
undertakings that would give the Postal Service appropriate assurance of 
the applicant's ability to meet its obligations under this section, 
including but not limited to the method and manner of performing certain 
financial, security, and servicing functions and the need to maintain 
sufficient financial reserves to guarantee uninterrupted performance of 
not less than 3 months of operation.
    (e) Qualification and approval may be based upon additional 
conditions agreed to by the Postal Service and the applicant. The 
applicant is approved in writing to engage in the function(s) for which 
authorization was sought and approved.
    (f) To the extent that any provider manufactures and/or distributes 
any PC Postage product through any authorized Postage Evidencing System, 
such provider must adhere to the requirements of these regulations.
    (g) The Postal Service office responsible for administration of this 
Part 501 is the office of Postage Technology Management (PTM) or 
successor organization. All submissions to the Postal Service required 
or invited by this Part 501 are to be made to this office in person or 
via mail to 475 L'Enfant Plaza SW, North Building Suite 4200, 
Washington, DC 20260-4200. Information updates may be found on the 
Postal Service Web site at http://www.usps.com/postagesolutions/
flash.htm.