[Federal Register Volume 80, Number 137 (Friday, July 17, 2015)]
[Rules and Regulations]
[Pages 42392-42393]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-17533]



39 CFR Part 501

Revisions to the Requirements for Authority To Manufacture and 
Distribute Postage Evidencing Systems

AGENCY: Postal ServiceTM.

ACTION: Final rule.


SUMMARY: The Postal Service is revising the rules concerning 
authorization to manufacture and distribute postage evidencing systems 
to reflect new revenue assurance practices.

DATES: Effective: July 17, 2015.

FOR FURTHER INFORMATION CONTACT: Marlo Kay Ivey, Business Systems 
Analyst, Payment Technology, U.S. Postal Service, (202) 268-7613

SUPPLEMENTARY INFORMATION: On April 23, 2015, the United States Postal 
Service published a proposed rule to amend 39 CFR part 501 to support 
the automated revenue assurance program currently in development. (See, 
80 FR 22661). Comments were received from two industry stakeholders. 
The first comment generally supported the proposed rule as written. The 
second comment suggested that the proposed rule should be clarified to 
apply only to PC Postage systems, and not postage meters. Further, it 
suggested that the proposal inadequately addressed the cost burden that 
would be imposed on PC Postage providers, and should provide additional 
detail regarding account suspension processes, adjustments for 
overpayment of postage, and the role of the PC Postage provider in the 
dispute resolution process.
    The Postal Service believes that the rule as proposed is 
appropriately written to encompass all postage evidencing systems. 
While initial automated collection efforts will be facilitated by PC 
Postage vendors, all customers should pay postage accurately, 
regardless of the postage technology they elect to use. As automated 
solutions become available for the various postage evidencing systems 
USPS will coordinate implementation plans with the parties concerned. 
Current manual efforts employed by the Postal Service to collect proper 
postage are costly and inefficient. An automated approach will reduce 
costs and improve overall recovery efforts. The costs of program 
administration will be acknowledged and considered as the USPS 
establishes operative recovery thresholds and certain other program 
related business rules. Account suspension, however, is already 
specifically addressed in postal regulations not modified by this 
proposal (see, 39 CFR 501.6), and we see no current need for further 
clarifications in these regulations. We further believe that the 
proposed rule as written (in conjunction with current 39 CFR 501.11 and 
501.12) appropriately discusses PC Postage provider participation in 
the dispute process. The Postal Service is working diligently to ensure 
the quality and accuracy of postage evidencing data using automated 
process controls, and may elect to make such adjustments to our rules 
in the future as are required to achieve that end. At this time, 
however, we believe it is appropriate to publish this final rule.

List of Subjects in 39 CFR Part 501

    Administrative practice and procedure.
    Accordingly, for the reasons stated, 39 CFR part 501 is amended as 


1. The authority citation for 39 CFR part 501 continues to read as 

    Authority:  5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 410, 
2601, 2605, Inspector General Act of 1978, as amended (Pub. L. 95-
452, as amended); 5 U.S.C. App. 3.

2. In Sec.  501.1, revise paragraph (g) to read as follows:

Sec.  501.1  Definitions.

* * * * *
    (g) A customer is a person or entity authorized by the Postal 
Service to use a Postage Evidencing System as an end user in accordance 
with Mailing Standards of the United States Postal Service, Domestic 
Mail Manual (DMM), including 604 Postage Payment Methods and Refunds, 
4.0 Postage Meters and PC Postage Products (Postage Evidencing 

3. In Sec.  501.2, revise paragraph (d) to read as follows:

Sec.  501.2  Postage Evidencing System Provider authorization.

* * * * *
    (d) Approval shall be based upon satisfactory evidence of the 
applicant's integrity and financial responsibility, commitment to 
comply with the Postal Service's revenue assurance practices as 
outlined in section 501.16, 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.
* * * * *

4. In Sec.  501.16 add paragraph (i) to read as follows:

Sec.  501.16  PC postage payment methodology.

* * * * *
    (i) Revenue Assurance. To operate PC Postage systems, the provider 
must support business practices to assure Postal Service revenue and 
accurate payment from customers. Specifically, the provider is required 
to notify the customer and adjust the balance in the postage evidencing 
system or otherwise facilitate postage corrections to address any 
postage discrepancies as directed by the Postal Service, subject to the 
applicable notification periods and dispute mechanisms available to 
customers for these corrections. The Postal Service will supply the 
provider with the necessary detail to justify the correction and amount 
of the postage correction to be used in the adjustment process. The 
provider must supply customers with visibility into the identified 
postage correction, facilitate a payment adjustment from the customer 
in the amount equivalent to the identified postage discrepancies to the 
extent possible, and enable customers to submit electronic disputes of 
such postage discrepancies to the Postal Service. Further if the 
Customer does not have funds sufficient to cover the amount of the 
discrepancies or the postage discrepancies have not been resolved, the 
provider may be required to temporarily suspend or permanently

[[Page 42393]]

shut down the customer's ability to print PC Postage as described in 
the Domestic Mail Manual section 604.4.

5. In Sec.  501.18, revise paragraph (b)(2) and add paragraph (c)(6) to 
read as follows:

Sec.  501.18  Customer information and authorization.

* * * * *
* * * * *
    (2) Within five years preceding submission of the information, the 
customer violated any standard for the care or use of the Postage 
Evidencing System, including any unresolved identified postage 
discrepancies that resulted in revocation of that customer's 
* * * * *
* * * * *
    (6) The customer has any unresolved postage discrepancies.
* * * * *

Stanley F. Mires,
Attorney, Federal Compliance.
[FR Doc. 2015-17533 Filed 7-16-15; 8:45 am]