80 FR 22661 - Revisions to the Requirements for Authority To Manufacture and Distribute Postage Evidencing Systems

POSTAL SERVICE

Federal Register Volume 80, Issue 78 (April 23, 2015)

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

[Federal Register Volume 80, Number 78 (Thursday, April 23, 2015)]
[Proposed Rules]
[Pages 22661-22662]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-09424]


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POSTAL SERVICE

39 CFR Part 501


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

AGENCY: Postal Service.TM

ACTION: Proposed rule.

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SUMMARY: The Postal Service is proposing to revise the rules concerning

[[Page 22662]]

authorization to manufacture and distribute postage evidencing systems 
to reflect new revenue assurance practices.

DATES: Submit comments on or before May 26, 2015.

ADDRESSES: Mail or deliver written comments to the Manager, Payment 
Technology, U.S. Postal Service[supreg], 475 L'Enfant Plaza SW., Room 
3500, Washington, DC 20260. You may inspect and photocopy all written 
comments at the Payment Technology office by appointment only between 
the hours of 9 a.m. and 4 p.m., Monday through Friday by calling 1-202-
268-7613 in advance. Email and faxed comments are not accepted.

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

SUPPLEMENTARY INFORMATION: These proposed changes to the CFR support 
the ongoing effort of the Postal Service (USPS) to collect the 
appropriate revenue on mail pieces in a more automated fashion. 
Presently the system relies on a manual process to weigh and rate 
pieces and collect at the point of induction or at the point of 
delivery. The USPS is upgrading mail processing equipment to validate 
postage paid on individual pieces and working with the PC Postage 
Providers to make corrections to the postage paid collecting additional 
revenue when appropriate with an electronic process. The PC Postage 
Providers will have piece level information and interface with the 
customers to make the needed postage corrections. Customers will have 
the opportunity to appeal the process in an electronic format. The USPS 
will be the final decision maker in all disputes.

List of Subjects in 39 CFR Part 501

    Administrative practice and procedure.

    Accordingly, for the reasons stated, 39 CFR part 501 is proposed to 
be amended as follows:

PART 501--AUTHORIZATION TO MANUFACTURE AND DISTRIBUTE POSTAGE 
EVIDENCING SYSTEMS

0
1. The authority citation for 39 CFR part 501 continues to read as 
follows:

    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.

0
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[supreg]) 604 Postage Payment Methods and Refunds, 
including 604.4.0 Postage Meters and PC Postage Products (Postage 
Evidencing Systems).
0
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.
* * * * *
0
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 shut 
down the customer's ability to print PC Postage as described in the 
Domestic Mail Manual section 604.4.
0
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.

* * * * *
    (b)
* * * * *
    (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 
authorization.
* * * * *
    (c)
* * * * *
    (6) The customer has any unresolved postage discrepancies.
* * * * *

Stanley F. Mires,
Attorney, Federal Requirements.
[FR Doc. 2015-09424 Filed 4-22-15; 8:45 am]
 BILLING CODE P