[Federal Register Volume 76, Number 35 (Tuesday, February 22, 2011)]
[Proposed Rules]
[Pages 9702-9705]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-3798]
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POSTAL SERVICE
39 CFR Part 111
Shortpaid and Unpaid Information-Based Indicia (IBI) Postage and
Shortpaid Express Mail Postage, Revised Proposal
AGENCY: Postal Service\TM\.
ACTION: Proposed rule, revised.
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SUMMARY: On November 19, 2009, the Postal Service published a proposed
rule to revise Mailing Standards of the United States Postal Service,
Domestic Mail Manual to implement revenue protection procedures for
shortpaid and unpaid Information Based Indicia (IBI) postage. Comments
on that proposed rule requested more detailed information on the
automated procedures the Postal Service will use to identify and verify
shortpaid and unpaid IBI postage payment and the resolution process
that will be used to remedy deficiencies. This revised proposal
provides the more detailed information to DMM sections 604.4, 604.8,
and 604.10. In addition, this revised proposal includes proposed
mailing standards to implement revenue protection procedures for
shortpaid Express Mail[reg] postage.
DATES: We must receive your comments on or before March 24, 2011.
ADDRESSES: Mail or deliver written comments to the Manager, Mailing
Standards, U.S. Postal Service, 475 L'Enfant Plaza SW., Room 4446,
Washington DC 20260-5015. You may inspect and photocopy all written
comments at USPS[reg] Headquarters Library, 475 L'Enfant Plaza SW.,
11th Floor N, Washington DC, between 9 a.m. and 4 p.m., Monday through
Friday. E-mail comments concerning the proposed rule, containing the
name and address of the commenter, may be sent to:
MailingStandards@usps.gov, with a subject line of ``Shortpaid and
Unpaid Information-Based Indicia Postage and Shortpaid Express
Mail[reg] Postage.'' Faxed comments are not accepted.
FOR FURTHER INFORMATION CONTACT: Carla Sherry 703-280-7068 or Carol A.
Lunkins 202-268-7262.
SUPPLEMENTARY INFORMATION: In this revised proposed rule, the Postal
Service is proposing new procedures to manage shortpaid Express Mail
postage and a new process to detect mailpieces with shortpaid and
unpaid IBI postage generated from the following postage evidencing
systems: Click-N-Ship[reg], IBI postage meters, and PC Postage[reg]
products.
In addition, the Postal Service is proposing to implement a new
Web-based resolution process to remedy shortpaid and unpaid IBI postage
payment deficiencies, to dispute shortpaid and unpaid IBI postage
deficiency assessments, and to appeal USPS decisions relative to
shortpaid and unpaid IBI postage.
The Postal Service published a proposed rule in the Federal
Register on November 18, 2009 (74 FR 59494-59496), inviting comments on
the implementation of revenue protection procedures for IBI postage
generated by postage evidencing systems.
Comments were received from the mailing industry requesting more
detailed information on the automated procedures that the Postal
Service will implement to identify and verify shortpaid and unpaid IBI
postage and the resolution process to remedy deficiencies.
In response to those comments, this revised proposed rule provides
detailed information on the revenue protection process for shortpaid
and unpaid IBI postage generated from postage evidencing systems, the
process to identify and verify shortpaid and unpaid IBI postage, and
the resolution process to remedy, dispute, or appeal matters relative
to shortpaid and unpaid IBI postage.
Express Mail Shortpaid Procedure
To ensure revenue protection for Express Mail paid by any
authorized postage payment method, the Postal Service is proposing to
implement new shortpaid Express Mail postage procedures.
For an Express Mail Next Day, Second Day, Military, or Custom
Designed Service item received at the origin office of mailing with
insufficient postage, the mailer is contacted to correct the postage
deficiency prior to dispatch of the Express Mail item. If the mailer
cannot be contacted before dispatch from the origin office, the Express
Mail item is endorsed `Postage Due', marked to show the total
deficiency of postage and fees, and then dispatched to the destination
Post Office for delivery to the addressee upon payment of the postage
due.
For an Express Mail item with insufficient postage that is
identified in processing operations or at the destination Post Office,
the Express Mail item will be endorsed `Postage Due', marked to show
the total deficiency of postage and fees, and then delivered to the
addressee upon payment of the postage due. If the payment of postage
due is refused by the addressee, the Express Mail item is endorsed
``Return to Sender--Refused.'' The postage deficiency is collected when
the Express Mail item is returned to the original sender. If the
original sender chooses to remail the item, a new Express Mail label
and new postage and fees must be affixed.
For an Express Mail item with insufficient IBI postage that is
generated from postage evidencing systems, USPS may follow the process
identified in DMM 604.4.4.4 through 604.4.4.9 to resolve such revenue
deficiencies.
Postage Evidencing Systems
Postage meters, PC Postage products, and Click-N-Ship 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 mailing has been paid.
The Postal Service implemented postage evidencing systems to meet
the needs of the mailing industry by providing convenient, user-
friendly methods for mailers to print and pay postage. To protect the
viability of postage evidencing systems, the Postal Service continually
implements measures to ensure revenue protection.
Postage
Postage refers to postage and fees due for the applicable price
category and associated criteria such as class, weight, shape, zone,
and extra services.
Information-Based Indicia
Information-Based Indicia (IBI) are digitally generated indicia
that include a two-dimensional barcode.
Revenue Deficiency
In this proposed rule, a revenue deficiency includes both shortpaid
and unpaid postage and occurs when any mailpiece has less postage than
required for the applicable price category and associated criteria such
as class, weight, shape, zone, and extra services.
Shortpaid Postage
Shortpaid postage is a revenue deficiency for which the valid
postage on a mailpiece is less than the amount due.
Unpaid Postage
Unpaid postage is a revenue deficiency for which postage is
deficient due to the use of counterfeited,
[[Page 9703]]
replicated, duplicated, falsified, or otherwise modified postage.
Detection Process for Revenue Deficiency
As part of the Postal Service's ongoing efforts to increase
effectiveness, enhance financial controls, and reduce costs, the Postal
Service is proposing to add a new process using mail processing
equipment and ancillary information systems to detect and capture
shortpaid and unpaid IBI postage on mailpieces.
When the Postal Service detects potential shortpaid or unpaid IBI
postage on a mailpiece, the Postal Service will subsequently verify the
postage on the mailpiece to ensure its validity and confirm the amount
is sufficient. When the Postal Service confirms that the IBI postage on
a mailpiece is shortpaid or unpaid, corrective measures will be taken
to recover the applicable revenue deficiency.
Electronic Notification of Revenue Deficiencies
When the Postal Service identifies shortpaid or unpaid IBI postage
generated from postage evidencing systems on mailpieces, in most cases,
the Postal Service will use an electronic process to recover the
revenue deficiency.
In such cases, the Postal Service will electronically notify both
the mailer and the postage evidencing system service provider of the
revenue deficiency and deliver the mailpiece to the addressee.
The electronic notification will provide a link to a USPS Web-based
customer payment portal that will enable the mailer to pay or dispute
the revenue deficiency.
Additionally, other non-electronic processes may be used to recover
a revenue deficiency as required.
Resolution Process
Where applicable, the Postal Service will provide a resolution
process that will be accessible through a USPS Web-based customer
payment portal to enable mailers to pay, dispute or appeal revenue
deficiencies for IBI postage generated from postage evidencing systems.
Payment Process
The mailer will have 14 days from the date that the Postal Service
sends the revenue deficiency electronic notification to pay the
deficiency. The payment process is as follows:
During the 14-day resolution period, the mailer must remit
the payment for the revenue deficiency by accessing a USPS Web-based
customer payment portal or through an otherwise authorized Postal
Service payment method as indicated in the electronic notification.
After 14 days, if a mailer has not paid or taken action to
dispute a revenue deficiency, the Postal Service may notify the
mailer's postage evidencing system service provider to temporarily
suspend the mailer's account.
When an electronic notification sent to a mailer is
undeliverable, the Postal Service may notify the mailer's postage
evidencing system service provider to temporarily suspend the mailer's
account prior to the end of the 14-day period.
When a mailer's cumulative revenue deficiency continues to
increase during the 14-day period, the Postal Service may notify the
mailer's postage evidencing system service provider to temporarily
suspend the mailer's account prior to the end of the 14-day period.
If the mailer feels the revenue deficiency is in error,
the mailer may dispute the revenue deficiency during this 14-day
period.
Dispute Process
The mailer will have 14 days from the date that the Postal Service
sends the revenue deficiency electronic notification to dispute the
deficiency. The dispute process is as follows:
During this 14-day period, the mailer must take action to
dispute the revenue deficiency by accessing a USPS Web-based customer
payment portal or through an otherwise authorized Postal Service
dispute method as indicated in the electronic notification.
The mailer must provide information to substantiate that
the postage affixed was valid and sufficient for the postage and
service fees associated with the mailpiece.
After 14 days, if a mailer has not taken action to pay or
dispute a revenue deficiency, the Postal Service will notify the
mailer's postage evidencing system service provider to temporarily
suspend the mailer's account.
When an electronic notification that is sent to a mailer
is undeliverable, the Postal Service may notify the mailer's postage
evidencing system service provider to temporarily suspend the mailer's
account prior to the end of the 14-day period.
When a mailer's cumulative revenue deficiency continues to
increase during this 14-day period, the Postal Service may notify the
mailer's postage evidencing system service provider to temporarily
suspend the mailer's account prior to the end of the 14-day period.
The Postal Service will send electronic notification of the
approved (upheld) or denied dispute to the mailer. If the Postal
Service upholds the mailer's dispute, then the mailer is required to
take no further action.
Denied Disputes and the Appeal Process
When the Postal Service denies a dispute, the mailer will have 7
days from the date that the Postal Service sends the electronic
notification of the denied dispute to pay the revenue deficiency or
file an appeal. The mailer may pay the deficiency or appeal the
decision by accessing a USPS Web-based customer payment portal or
through an otherwise authorized Postal Service payment or appeal method
as indicated in the electronic notification. The appeal process is as
follows:
The appeal process requires that the mailer provide
additional information to substantiate that the postage affixed was
valid and sufficient for the postage and service fees associated with
the mailpiece.
After 7 days, if a mailer has not taken action to pay or
appeal the revenue deficiency denied in the dispute request, the Postal
Service may notify the mailer's postage evidencing system service
provider to temporarily suspend the mailer's account.
When an electronic notification that is sent to a mailer
is undeliverable, the Postal Service may notify the mailer's postage
evidencing system service provider to temporarily suspend the mailer's
account prior to the end of the 7-day period.
When a mailer's cumulative revenue deficiency continues to
increase during this 7-day period, the Postal Service may notify the
mailer's postage evidencing system service provider to temporarily
suspend the mailer's account prior to the end of the 7-day period.
The Postal Service will make a final decision regarding the appeal
request. If the Postal Service upholds the mailer's appeal, the Postal
Service will notify the mailer of the decision, and the mailer is
required to take no further action.
Denied Appeals
When the Postal Service denies the appeal request, the Postal
Service will notify the mailer of the denial decision. The mailer must
pay the revenue deficiency, within 7 days from the date that the Postal
Service sends the electronic notification of appeal denial, by
accessing a USPS Web-based customer payment portal or through an
[[Page 9704]]
otherwise authorized Postal Service payment method as indicated in the
electronic notification. The process for denied appeals is as follows:
After 7 days of the denied appeal electronic notification,
if a mailer has not taken action to pay the revenue deficiency, the
Postal Service will notify the mailer's postage evidencing system
service provider to temporarily suspend the mailer's account.
When an electronic notification to a mailer is
undeliverable, the Postal Service may notify the mailer's postage
evidencing system service provider to temporarily suspend the mailer's
account prior to the end of the 7-day period.
When a mailer's cumulative revenue deficiency continues to
increase during this 7-day period, the Postal Service may notify the
mailer's postage evidencing system service provider to temporarily
suspend the mailer's account prior to the end of the 7-day period.
Denial of Use of Postage Evidencing Systems
When a mailer fails to meet the standards in the DMM, submits false
or incomplete information, or deposits shortpaid and unpaid mailpieces
in the mailstream, the Postal Service may deny a mailer use of a
postage evidencing system.
Any mailer who deposits mailpieces with shortpaid or unpaid IBI
postage or fees may be subject to some or all of the following proposed
actions:
Collection of the shortpaid or unpaid postage.
Revocation of the mailer's account privileges.
Civil and criminal fines and penalties pursuant to
existing Federal law.
Although the USPS is 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 part 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:
PART 111--[AMENDED]
1. The authority citation for 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, 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 items b and c of 4.1.2 as follows:]
b. PC Postage products allow mailers to purchase and print
postage with Information-Based Indicia (IBI) directly onto
mailpieces, shipping labels, and USPS-approved customized labels.
c. USPS (Click-N-Ship) and USPS-approved commercial providers
offer PC Postage products for mailers through subscription service
agreements.
* * * * *
4.2 Authorization To Use Postage Evidencing Systems
* * * * *
4.2.4 Denial of Use
[Revise paragraph of 4.2.4 as follows:]
The Postal Service may deny a mailer authorization to use a
postage evidencing system when a mailer:
a. Fails to comply with mailing standards.
b. Submits false or incomplete information.
c. Enters shortpaid or unpaid mailpieces in the mailstream.
[Renumber current item 4.2.5 as 4.2.6 and add new item 4.2.5 as
follows:]
4.2.5 Surrender of Postage Evidence System
If authorization to use a Postage Evidencing System is denied,
the mailer must surrender the systems, upon request, to the postage
evidencing system service provider, USPS, or USPS agent.
4.2.6 Appeal Process
[Revise text of renumbered 4.2.6 as follows:]
Appeals regarding standards in 4.0 or on the basis of
noncompliance may be filed as follows:
a. For appeals regarding IBI postage, mailers must appeal under
4.4.8.
b. All other appeals must be in writing to the manager, Postage
Technology Management (see 608.8.1 for address).
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 on each mailpiece must be equal to or
greater than the amount due for the applicable price and extra
service fees, or another amount permitted by mailing standards. * *
*
* * * * *
[Renumber current items 4.4 through 4.6 as new 4.5 through 4.7, and
add new item 4.4 as follows:]
4.4 Shortpaid and Unpaid Information-Based Indicia
4.4.1 Definitions
Mailpieces bearing shortpaid postage are those for which the
total postage and fees affixed are less than the postage required
for the applicable price and extra services fees. Mailpieces bearing
unpaid Information-Based Indicia (IBI) are those for which the
mailer has not paid the postage or service fees due to the use of
counterfeited, replicated, duplicated, falsified, otherwise modified
IBI, or IBI with zero value.
4.4.2 Detection Process for Revenue Deficiency
When mailpieces with shortpaid or unpaid postage are found in
the mailstream, USPS will use manual and automated processes to
detect and verify the revenue deficiencies.
4.4.3 Handling of Mailpieces With IBI Postage Revenue Deficiencies
When the Postal Service confirms shortpaid or unpaid IBI
postage, the Postal Service will take corrective measures that may
include:
a. Delivering the mailpiece to the addressee and collecting the
revenue deficiency from the addressee as postage due.
b. Collecting the revenue deficiency from the sender as
described in 4.4.4 through 4.4.9.
c. Returning the mailpiece to the sender.
4.4.4 Electronic Notification of Revenue Deficiencies
When the Postal Service confirms a revenue deficiency for a
mailpiece with IBI postage, the Postal Service may use an electronic
process to recover the deficiency from the mailer. In these cases,
the Postal Service will electronically notify both the mailer and
the postage evidencing system service provider of the revenue
deficiency and will deliver the mailpiece to the addressee. The
notification will provide a link to a USPS Web-based customer
payment portal that will enable the mailer to pay or dispute the
revenue deficiency.
4.4.5 Resolution Process
The Postal Service will provide a resolution process through a
USPS Web-based customer payment portal.
4.4.6 Payment Process
The mailer will have 14 days from the date that the Postal
Service sends the electronic notification to pay the revenue
deficiency. The mailer must submit payment for the revenue
deficiency during this 14-day period by accessing a Postal Service
Web-based
[[Page 9705]]
customer payment portal or choose another method identified in the
notification. The mailer may choose to dispute (see 4.4.7) the
revenue deficiency during this 14-day period. The Postal Service may
notify the postage evidencing system service provider to temporarily
suspend the mailer's account under the following conditions:
a. After 14 days, if a mailer has not paid or disputed a revenue
deficiency.
b. When an electronic notification to a mailer is undeliverable.
c. When a mailer's cumulative revenue deficiency increases
during the 14-day period due to additional mailpieces being
identified as shortpaid or unpaid.
4.4.7 Dispute Process
To begin the dispute process, the mailer must access a Postal
Service Web-based customer payment portal or choose another method
identified in the electronic notification to substantiate that the
postage affixed was valid and sufficient for the postage and fees.
The process is as follows:
a. The mailer will have 14 days from the date that the Postal
Service sends the notification to dispute the revenue deficiency.
b. The Postal Service will send electronic notification to the
mailer of its decision to uphold or deny the dispute. If the Postal
Service upholds the dispute, the mailer is not required to take
further action.
4.4.8 Denied Disputes and the Appeal Process
When the Postal Service denies a mailer's dispute of a revenue
deficiency, the mailer will have 7 days from the date the Postal
Service sends the notification of the denial to pay the revenue
deficiency or file an appeal. To pay the dispute or file an appeal,
the mailer must access a Postal Service Web-based customer payment
portal or choose another method identified in the notification. To
appeal, the mailer must provide additional information to
substantiate that the postage affixed was valid and sufficient for
the postage and fees. The Postal Service will send electronic
notification to the mailer of its decision to uphold or deny the
appeal. If the Postal Service upholds the appeal, the mailer is not
required to take further action. The Postal Service may notify the
postage evidencing system service provider to temporarily suspend
the mailer's account under the following conditions:
a. After 7 days, if a mailer has not paid or appealed a revenue
deficiency.
b. When an electronic notification to a mailer is undeliverable.
c. When a mailer's cumulative revenue deficiency increases
during the 7-day period due to additional mailpieces being
identified as shortpaid or unpaid.
4.4.9 Denied Appeals
When the Postal Service denies the appeal, the mailer must pay
the revenue deficiency within 7 days from the date that the Postal
Service sends the electronic notification of denial by accessing a
Postal Service Web-based customer payment portal or choosing another
USPS-authorized method identified in the notification. The Postal
Service may notify the postage evidencing system service provider to
temporarily suspend the mailer's account under the following
conditions:
a. After 7 days, if a mailer has not paid the revenue
deficiency.
b. When an electronic notification to a mailer is undeliverable.
c. When a mailer's cumulative revenue deficiency increases
during the 7-day period due to additional mailpieces being
identified as shortpaid or unpaid.
* * * * *
8.1 Insufficient Postage
8.1.1 Definition
[Revise the second and third sentences of 8.1.1 as follows:]
* * * Such individual pieces (or quantities fewer than 10) are
delivered to the addressee on payment of the charges marked on the
mail. For mailings of 10 or more pieces, the mailer is notified so
that the postage charges may be paid before dispatch. For any
mailpiece with insufficient postage generated by postage evidencing
systems, the USPS may follow the process in 4.4.4 through 4.4.9.
* * * * *
[Renumber current item 8.1.7 as 8.1.8 and add new 8.1.7 as follows:]
8.1.7 Express Mail Corporate Accounts and Federal Agency Accounts
Express Mail Corporate accounts and Federal government accounts
that use a ``Postage and Fees Paid'' indicia are debited for the
correct amount of postage and fees at the time of mailing.
[Revise the heading and text of renumbered 8.1.8 as follows:]
8.1.8 Express Mail With Insufficient Postage--Acceptance
When any Express Mail item is received at the office of mailing
with insufficient postage, the Postal Service will contact the
mailer to correct the postage deficiency prior to dispatch of the
item. If the mailer cannot be contacted prior to dispatch, the
Postal Service will:
a. Endorse the item ``Postage Due.''
b. Mark the item to show the total deficiency of postage and
fees.
c. Dispatch the item to the destination Post Office for delivery
to the addressee upon payment of the postage due.
d. If payment is refused by addressee, endorse the item ``Return
to Sender--Refused'' and return the item to the sender upon
collection of the postage deficiency.
[Add new items 8.1.9 through 8.1.11 as follows:]
8.1.9 Express Mail With Insufficient Postage--Processing Operations
For an Express Mail item with insufficient postage identified in
processing operations or at the destination Post Office, the Postal
Service will:
a. Endorse the item ``Postage Due.''
b. Mark the item to show the total deficiency of postage and
fees.
c. Deliver the item to the addressee upon payment of the postage
due.
d. If payment is refused by addressee, endorse the item ``Return
to Sender--Refused'' and return the item to the sender, upon
collection of the postage deficiency.
8.1.10 Express Mail With Insufficient IBI Postage--Postage Evidencing
Systems
For an Express Mail item with insufficient IBI postage generated
by postage evidencing systems, USPS may follow the process in 4.4.4
through 4.4.9.
8.1.11 Remailing Express Mail With Insufficient Postage
The Postal Service returns an Express Mail item with
insufficient postage to the sender upon collection of the postage
deficiency when an effort to contact the sender before dispatch
fails and when the addressee refuses to pay the postage due. Under
these circumstances, if the sender remails the item, the sender must
affix a new Express Mail label with new postage and fees to the
item.
* * * * *
10.0 Revenue Deficiency
10.1 General
* * * * *
10.1.2 Appeal of Ruling
[Revise the first sentence of 10.1.2 as follows:]
Except as provided in 4.4.4 through 4.4.9, 10.2, and 703.1.0, a
mailer may appeal a revenue deficiency assessment by sending a
written appeal to the postmaster or manager in 10.1.2a through
10.1.2c within 30 days of receipt of the notification. * * *
* * * * *
We will publish an appropriate amendment to 39 CFR 111 to reflect
these changes if our proposal is adopted.
Neva R. Watson,
General Counsel, Legislative.
[FR Doc. 2011-3798 Filed 2-18-11; 8:45 am]
BILLING CODE 7710-12-P