82 FR 58580 - Revenue Deficiency

POSTAL SERVICE

Federal Register Volume 82, Issue 238 (December 13, 2017)

Page Range		58580-58582
FR Document		2017-26740
The Postal Service is proposing to amend Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM[supreg]) to clarify the Postal Service revenue deficiency policy.
Federal Register, Volume 82 Issue 238 (Wednesday, December 13, 2017)
[Federal Register Volume 82, Number 238 (Wednesday, December 13, 2017)]
[Proposed Rules]
[Pages 58580-58582]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-26740]


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POSTAL SERVICE

39 CFR Part 111


Revenue Deficiency

AGENCY: Postal Service^TM.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Postal Service is proposing to amend Mailing Standards of 
the United States Postal Service, Domestic Mail Manual (DMM[supreg]) to 
clarify the Postal Service revenue deficiency policy.

DATES: Submit comments on or before January 12, 2018.

ADDRESSES: Mail or deliver written comments to the manager, Product 
Classification, U.S. Postal Service, 475 L'Enfant Plaza SW, Room 4446, 
Washington, DC 20260-5015. If sending comments by email, include the 
name and address of the commenter and send to 
[email protected], with a subject line of ``Verification 
Standards''. Faxed comments are not accepted.
    You may inspect and photocopy all written comments, by appointment 
only, at USPS[supreg] Headquarters Library, 475 L'Enfant Plaza SW, 11th 
Floor North, Washington, DC, 20260. These records are available for 
review on Monday through Friday, 9 a.m.-4 p.m., by calling 202-268-
2906.

[[Page 58581]]


FOR FURTHER INFORMATION CONTACT: Janet Meddick at (202) 268-2652, 
Pierre DeFelice at 724-993-3596, or Garry Rodriguez at (202) 268-7281.

SUPPLEMENTARY INFORMATION: The Postal Service is proposing to amend DMM 
section 604.10.0, Revenue Deficiency, to update the definition of a 
revenue deficiency, as well as the designation of Postal Service 
contacts for submitting appeals. The Postal Service also proposes to 
add sections to provide the definition of a mailer, the description of 
assessments and mailer's responsibilities, and the policy on assessed 
revenue deficiencies. We believe that these revisions will ensure the 
proper payment of postage while providing a superb customer experience 
from sender to receiver.
    Additionally, the Postal Service will revise subsection 607.2.1 to 
include the relocation of subsection 604.10.2, Nonprofit USPS Marketing 
Mail, as new 607.2.1.2, Nonprofit USPS Marketing Mail Decision.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

    Although exempt from the notice and comment requirements of the 
Administrative Procedure Act (5 U.S.C. 553(b), (c)) regarding proposed 
rulemaking by 39 U.S.C. 410(a), the Postal Service invites 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 111.1.
    Accordingly, 39 CFR part 111 is proposed to be amended as follows:

PART 111--[AMENDED]

0
1. The authority citation for 39 CFR 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.

0
2. Revise the Mailing Standards of the United States Postal Service 
Domestic Mail Manual (DMM) as follows:

Mailing Standards of the United States Postal Service, Domestic Mail 
Manual (DMM)

* * * * *

600 Basic Standards for All Mailing Services

* * * * *

604 Postage Payment Methods and Refunds

* * * * *

10.0 Revenue Deficiency

10.1 General

    [Revise 10.1 by adding text to read as follows:]
    The revenue deficiency process is an administrative process that 
supplements and does not diminish any rights the Postal Service has to 
recover revenue deficiencies through other legally available methods, 
such as when the deficiency arises as a result of fraud, 
misrepresentation, or the misuse of PC Postage products or other 
Postage Evidencing Systems.
    [Revise the heading and text of 10.1.1 to read as follows:]

10.1.1 Definitions

    Revenue deficiency definitions are as follows:
    a. Revenue deficiency: means a shortage or underpayment of postage 
or fees that has been calculated and assessed to a mailer. Unless 
assessed under other applicable postal regulations, revenue 
deficiencies are generally assessed as provided herein by the 
Postmaster; manager, Business Mail Entry; the program manager, Revenue 
and Compliance, or other postal official, who issues a written 
notification to the mailer citing the amount of the deficiency and the 
circumstances.
    b. Mailer: A mailer is defined as the mail owner or an individual 
or entity that prepares or presents a mailing to the Postal Service and 
includes those who allow others to use a postage meter or PC postage 
product (collectively ``postage evidence system''--see 604.4.1.1 and 
604.4.1.2) that has been authorized for use by the individual or 
entity.
    [Renumber 10.1.2, Appeal of Ruling, as 10.1.3 and add new 10.1.2 to 
read as follows:]

10.1.2 Assessments

    Postal officials review mailings, postage statements, and other 
relevant documentation in assessing a revenue deficiency. Mailers are 
required to cooperate and provide any documentation or information 
requested by postal officials during the review and assessment process. 
A mailer's failure to provide requested documentation or information 
during a review may result in a negative inference concerning the 
documentation or information requested.

10.1.3 Appeal of Ruling

    [Revise the introductory text of 10.1.3 to read as follows:]
    Except as provided in 4.4.4 through 4.4.5, and 703.1.0, a mailer 
may appeal a revenue deficiency assessment by sending a written appeal 
to the postmaster or manager in 10.1.3a through 10.1.3c within 30 days 
of receipt of the notification. In all cases, the mailer may be asked 
to provide more information or documentation to support the appeal. 
Failure to do so within 30 days of the request is grounds for denying 
an appeal. Any decision that is not appealed as prescribed becomes the 
final agency decision. Mailers may send appeals as follows:
* * * * *
    [Revise the text of item b to read as follows:]
    b. To the Postmaster; manager, Business Mail Entry; program 
manager, Revenue and Compliance; or other postal official for revenue 
deficiencies for postage. The appeal is then forwarded to the manager, 
PCSC, who issues the final agency decision.
* * * * *
    [Add new 10.1.4 to read as follows:]

10.1.4 Assessed Revenue Deficiencies

    Assessed revenue deficiencies may be subject to the following:
    a. If a mailer fails to tender payment to the Postal Service within 
30 days of receipt of a final agency decision, or fails to comply with 
the terms or conditions of a payment plan agreed to by the Postal 
Service concerning the final agency decision, or is suspected by the 
Postal Service of continuing to repeatedly short pay postage, the 
Postal Service may:
    1. Deduct from the mailer's trust account or any other funds in 
USPS possession any deficiencies incurred within 12 months of the date 
of the final mailing on which the deficiency was assessed.
    2. Initiate debt collection procedures.
    3. Restrict or suspend discounted mailing privileges with the 
concurrence of the manager, Revenue Assurance and Vice President 
Controller, or as otherwise allowed by regulation, or in accordance 
with any agreement with the mailer.
    b. Discounted mailing privileges may be suspended or restricted 
regardless of payment status of an assessed revenue deficiency if 
underpayment of postage occurs again after a mailer has been assessed a 
revenue deficiency.
    c. Interest on assessed revenue deficiencies will accrue at a rate 
of 6% per annum beginning 30 days after the receipt of the final agency 
decision and will continue until the debt is paid.
    d. Other fees and costs related to an assessed revenue deficiency 
may be

[[Page 58582]]

collected as allowed by law or regulation.
    [Delete 10.2 in its entirety.]
* * * * *

607 Mailer Compliance and Appeals of Classification Decisions

* * * * *

2.0 Rulings on Mailing Standards

    [Revise the heading of 2.1 to read as follows:]

2.1 Decisions

    [Move text of 2.1 under new heading 2.1.1, Local Decision to read 
as follows:]

2.1.1 Local Decision

    A mailer who disagrees with a classification decision by a local 
Post Office, whether on a pending or a proposed mailing, may send a 
written appeal to the postmaster within 30 days. The appeal is 
forwarded to the manager, Pricing and Classification Service Center 
(PCSC). The manager, PCSC issues the final agency decision. Only the 
manager, PCSC may rule on an appeal or initial request for a ruling on 
an exception to a USPS standard in the DMM.
    [Add new 2.1.2, Nonprofit USPS Marketing Mail Decision, to read as 
follows:]

2.1.2 Nonprofit USPS Marketing Mail Decision

    Nonprofit mailers have two levels of appeal. They may appeal 
revenue deficiency assessments as follows:

------------------------------------------------------------------------
    If the initial revenue                          Second-level appeal
deficiency assessment was made     First-level         and final USPS
              by:                     appeal              decision
------------------------------------------------------------------------
Postmaster; manager, Business   manager, PCSC      manager, Product
 Mail Entry; manager, Revenue    (see 608.8.0 for   Classification (see
 and Compliance; or other        address).          608.8.0 for
 Postal official.                                   address).
manager, PCSC.................  manager, Product   vice president,
                                 Classification.    Marketing (see
                                                    608.8.0 for
                                                    address).
------------------------------------------------------------------------

    All appeals must be submitted in writing within 30 days of the 
previous USPS decision. Any decision that is not appealed as prescribed 
becomes the final agency decision; no appeals are available within the 
USPS beyond the second appeal.
* * * * *
    We will publish an appropriate amendment to 39 CFR part 111 to 
reflect these changes if this proposal is adopted.

Stanley F. Mires,
Attorney, Federal Compliance.
[FR Doc. 2017-26740 Filed 12-12-17; 8:45 am]
 BILLING CODE 7710-12-P
Federal Register / Vol. 82, No. 238 / Wednesday, December 13, 2017 / Proposed Rules 58581

FOR FURTHER INFORMATION CONTACT: 604 Postage Payment Methods and Except as provided in 4.4.4 through
Janet Meddick at (202) 268–2652, Pierre Refunds 4.4.5, and 703.1.0, a mailer may appeal
DeFelice at 724–993–3596, or Garry * * * * * a revenue deficiency assessment by
Rodriguez at (202) 268–7281. sending a written appeal to the
10.0 Revenue Deficiency postmaster or manager in 10.1.3a
SUPPLEMENTARY INFORMATION: The Postal
10.1 General through 10.1.3c within 30 days of
Service is proposing to amend DMM
receipt of the notification. In all cases,
section 604.10.0, Revenue Deficiency, to [Revise 10.1 by adding text to read as the mailer may be asked to provide
update the definition of a revenue follows:]
more information or documentation to
deficiency, as well as the designation of The revenue deficiency process is an
support the appeal. Failure to do so
Postal Service contacts for submitting administrative process that supplements
and does not diminish any rights the within 30 days of the request is grounds
appeals. The Postal Service also
Postal Service has to recover revenue for denying an appeal. Any decision
proposes to add sections to provide the
deficiencies through other legally that is not appealed as prescribed
definition of a mailer, the description of
available methods, such as when the becomes the final agency decision.
assessments and mailer’s
deficiency arises as a result of fraud, Mailers may send appeals as follows:
responsibilities, and the policy on
assessed revenue deficiencies. We misrepresentation, or the misuse of PC * * * * *
believe that these revisions will ensure Postage products or other Postage [Revise the text of item b to read as
the proper payment of postage while Evidencing Systems. follows:]
providing a superb customer experience [Revise the heading and text of 10.1.1 b. To the Postmaster; manager,
from sender to receiver. to read as follows:] Business Mail Entry; program manager,
Revenue and Compliance; or other
Additionally, the Postal Service will 10.1.1 Definitions postal official for revenue deficiencies
revise subsection 607.2.1 to include the Revenue deficiency definitions are as for postage. The appeal is then
relocation of subsection 604.10.2, follows: forwarded to the manager, PCSC, who
Nonprofit USPS Marketing Mail, as new a. Revenue deficiency: means a issues the final agency decision.
607.2.1.2, Nonprofit USPS Marketing shortage or underpayment of postage or * * * * *
Mail Decision. fees that has been calculated and [Add new 10.1.4 to read as follows:]
List of Subjects in 39 CFR Part 111 assessed to a mailer. Unless assessed
under other applicable postal 10.1.4 Assessed Revenue Deficiencies
Administrative practice and regulations, revenue deficiencies are Assessed revenue deficiencies may be
procedure, Postal Service. generally assessed as provided herein by subject to the following:
the Postmaster; manager, Business Mail a. If a mailer fails to tender payment
Although exempt from the notice and Entry; the program manager, Revenue
comment requirements of the to the Postal Service within 30 days of
and Compliance, or other postal official, receipt of a final agency decision, or
Administrative Procedure Act (5 U.S.C. who issues a written notification to the
553(b), (c)) regarding proposed fails to comply with the terms or
mailer citing the amount of the conditions of a payment plan agreed to
rulemaking by 39 U.S.C. 410(a), the deficiency and the circumstances.
Postal Service invites public comments by the Postal Service concerning the
b. Mailer: A mailer is defined as the
on the following proposed revisions to final agency decision, or is suspected by
mail owner or an individual or entity
Mailing Standards of the United States the Postal Service of continuing to
that prepares or presents a mailing to
Postal Service, Domestic Mail Manual repeatedly short pay postage, the Postal
the Postal Service and includes those
(DMM), incorporated by reference in the Service may:
who allow others to use a postage meter
Code of Federal Regulations. See 39 CFR 1. Deduct from the mailer’s trust
or PC postage product (collectively
111.1. account or any other funds in USPS
‘‘postage evidence system’’—see
possession any deficiencies incurred
Accordingly, 39 CFR part 111 is 604.4.1.1 and 604.4.1.2) that has been
within 12 months of the date of the final
proposed to be amended as follows: authorized for use by the individual or
mailing on which the deficiency was
entity.
PART 111—[AMENDED] [Renumber 10.1.2, Appeal of Ruling, assessed.
as 10.1.3 and add new 10.1.2 to read as 2. Initiate debt collection procedures.
follows:] 3. Restrict or suspend discounted
■ 1. The authority citation for 39 CFR mailing privileges with the concurrence
part 111 continues to read as follows: 10.1.2 Assessments of the manager, Revenue Assurance and
Authority: 5 U.S.C. 552(a); 13 U.S.C. 301– Postal officials review mailings, Vice President Controller, or as
307; 18 U.S.C. 1692–1737; 39 U.S.C. 101, otherwise allowed by regulation, or in
postage statements, and other relevant
401, 403, 404, 414, 416, 3001–3011, 3201– accordance with any agreement with the
3219, 3403–3406, 3621, 3622, 3626, 3632, documentation in assessing a revenue
deficiency. Mailers are required to mailer.
3633, and 5001.
cooperate and provide any b. Discounted mailing privileges may
■2. Revise the Mailing Standards of the documentation or information requested be suspended or restricted regardless of
United States Postal Service Domestic by postal officials during the review and payment status of an assessed revenue
Mail Manual (DMM) as follows: assessment process. A mailer’s failure to deficiency if underpayment of postage
occurs again after a mailer has been
sradovich on DSK3GMQ082PROD with PROPOSALS

provide requested documentation or
Mailing Standards of the United States assessed a revenue deficiency.
information during a review may result
Postal Service, Domestic Mail Manual c. Interest on assessed revenue
in a negative inference concerning the
(DMM) deficiencies will accrue at a rate of 6%
documentation or information
* * * * * requested. per annum beginning 30 days after the
receipt of the final agency decision and
600 Basic Standards for All Mailing 10.1.3 Appeal of Ruling will continue until the debt is paid.
Services [Revise the introductory text of 10.1.3 d. Other fees and costs related to an
* * * * * to read as follows:] assessed revenue deficiency may be

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58582 Federal Register / Vol. 82, No. 238 / Wednesday, December 13, 2017 / Proposed Rules

collected as allowed by law or 2.1 Decisions issues the final agency decision. Only
regulation. the manager, PCSC may rule on an
[Move text of 2.1 under new heading appeal or initial request for a ruling on
[Delete 10.2 in its entirety.] 2.1.1, Local Decision to read as follows:] an exception to a USPS standard in the
* * * * * DMM.
2.1.1 Local Decision
607 Mailer Compliance and Appeals [Add new 2.1.2, Nonprofit USPS
of Classification Decisions A mailer who disagrees with a Marketing Mail Decision, to read as
classification decision by a local Post follows:]
* * * * * Office, whether on a pending or a
proposed mailing, may send a written 2.1.2 Nonprofit USPS Marketing Mail
2.0 Rulings on Mailing Standards Decision
appeal to the postmaster within 30 days.
[Revise the heading of 2.1 to read as The appeal is forwarded to the manager, Nonprofit mailers have two levels of
follows:] Pricing and Classification Service appeal. They may appeal revenue
Center (PCSC). The manager, PCSC deficiency assessments as follows:

If the initial revenue deficiency assessment was made First–level appeal Second–level appeal and final USPS decision
by:

Postmaster; manager, Business Mail Entry; manager, manager, PCSC (see manager, Product Classification (see 608.8.0 for ad-
Revenue and Compliance; or other Postal official. 608.8.0 for address). dress).
manager, PCSC ................................................................ manager, Product Classi- vice president, Marketing (see 608.8.0 for address).
fication.

All appeals must be submitted in Transportation has reviewed the final probability of accidents involving trains
writing within 30 days of the previous updated Regulatory Impact Analysis transporting large quantities of
USPS decision. Any decision that is not (RIA) and determined that the HM–251 flammable liquids. See 80 FR 26643.1
appealed as prescribed becomes the Final Rule’s electronically controlled The Final Rule defined certain trains
final agency decision; no appeals are pneumatic (ECP) brake requirements are transporting large volumes of flammable
available within the USPS beyond the not economically justified. As the liquids as high-hazard flammable trains
second appeal. expected benefits do not exceed the (HHFT) 2 and others as high-hazard
* * * * * expected costs, PHMSA and the Federal flammable unit trains (HHFUT).3 The
We will publish an appropriate Railroad Administration (FRA) will Final Rule required HHFUTs
amendment to 39 CFR part 111 to reflect initiate a rulemaking to rescind the transporting at least one flammable
these changes if this proposal is necessary regulatory provisions. liquid classified as a packing group I
adopted. DATES: December 13, 2017. material be operated with an ECP
braking system by January 1, 2021, and
Stanley F. Mires, ADDRESSES: All documents and
all other HHFUTs be operated with an
Attorney, Federal Compliance. comments related to this matter,
ECP braking system by May 1, 2023. See
including the final updated RIA, are still
[FR Doc. 2017–26740 Filed 12–12–17; 8:45 am] 49 CFR 174.310(a)(3).
available for review at http://
BILLING CODE 7710–12–P
www.regulations.gov in Docket Number Fixing America’s Surface
PHMSA–2017–0102. Transportation (FAST) Act
FOR FURTHER INFORMATION CONTACT: For In December 2015, Congress passed
DEPARTMENT OF TRANSPORTATION
public affairs related questions, please the FAST Act.4 Public Law 114–94, 129
Pipeline and Hazardous Materials contact Patricia Klinger, Deputy Director Stat. 1686 (Dec. 4, 2015). Section 7311
Safety Administration within PHMSA’s Office of of the FAST Act (Section 7311)
Governmental, International, and Public established a process, including
49 CFR Part 174 Affairs, by email at independent study and testing, for DOT
phmsa.publicaffairs@dot.gov, or by to use in developing an updated RIA
[Docket No. PHMSA–2017–0102; Notice No. telephone at 202–366–4831. For related to the Final Rule’s ECP brake
2017–12] economic (RIA) related questions, provision. The Secretary was also
please contact Mark Johnson, Senior required to solicit public comment on
Hazardous Materials: Announcement Economist, PHMSA, by telephone at the updated RIA, and issue a final
of the Department of Transportation’s 202–366–4495 or by email at updated RIA, responding to comments
Decision on Electronically Controlled mark.johnson@dot.gov. For rulemaking and incorporating any useful
Pneumatic Braking related questions, please contact information provided. Finally, Section
AGENCY: Pipeline and Hazardous Matthew Nickels, Senior Regulations
Materials Safety Administration Officer, PHMSA, by telephone at 202– 1 https://www.gpo.gov/fdsys/pkg/FR-2015-05-08/

(PHMSA), DOT. 366–8553 or by email at pdf/2015-10670.pdf
matthew.nickels@dot.gov. 2 The Final Rule defined an HHFT as ‘‘a single
sradovich on DSK3GMQ082PROD with PROPOSALS

ACTION: Announcement of Department train transporting 20 or more loaded tank cars of a
determination. SUPPLEMENTARY INFORMATION: Class 3 flammable liquid in a continuous block or
a single train carrying 35 or more loaded tank cars
SUMMARY: In this document, the HM–251 Final Rule of a Class 3 flammable liquid throughout the train
Department of Transportation is On May 8, 2015, PHMSA, in consist.’’ See 49 CFR 171.8.
3 The Final Rule defined an HHFUT as ‘‘a single
announcing that after careful review, coordination with FRA, published a
train transporting 70 or more loaded tank cars
and as mandated by Section 7311 of the Final Rule adopting requirements containing Class 3 flammable liquid.’’
Fixing America’s Surface Transportation intended to reduce the consequences 4 https://www.gpo.gov/fdsys/pkg/PLAW-

(FAST) Act, the Department of and, in some instances, reduce the 114publ94/html/PLAW-114publ94.htm.

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Document Created: 2017-12-13 01:23:38
Document Modified: 2017-12-13 01:23:38
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Proposed rule.
Dates		Submit comments on or before January 12, 2018.
Contact		Janet Meddick at (202) 268-2652, Pierre DeFelice at 724-993-3596, or Garry Rodriguez at (202) 268-7281.
FR Citation		82 FR 58580
CFR Associated		Administrative Practice and Procedure and Postal Service