83 FR 10624 - Revenue Deficiency
POSTAL SERVICE Federal Register Volume 83, Issue 48 (March 12, 2018)
Federal Register Volume 83, Issue 48 (March 12, 2018)
| Page Range | 10624-10625 | |
| FR Document | 2018-04890 |
[Federal Register Volume 83, Number 48 (Monday, March 12, 2018)] [Rules and Regulations] [Pages 10624-10625] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-04890] ======================================================================= ----------------------------------------------------------------------- POSTAL SERVICE 39 CFR Part 111 Revenue Deficiency AGENCY: Postal ServiceTM. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Postal Service is amending the Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM[supreg]) to clarify the Postal Service revenue deficiency policy. DATES: Effective: May 7, 2018. FOR FURTHER INFORMATION CONTACT: Janet Meddick at (202) 268-2652 or Pierre DeFelice at (724) 993-3596 or Garry Rodriguez at (202) 268-7281. SUPPLEMENTARY INFORMATION: The Postal Service published a notice of proposed rulemaking on December 13, 2017, (82 FR 58580-58582) to amend DMM section 604.10.0, Revenue Deficiency, to update the definition of a revenue deficiency; designate Postal Service contacts for submitting appeals; and add sections to provide the definition of a mailer, description of assessments and mailers responsibilities, and policy on assessed revenue deficiencies. The Postal Service received 3 formal responses on the proposed rule, all of which included multiple comments. Comments from the first responder are as follows: Mailer Comment Clarification needed on deducting deficiencies directly from a trust account. USPS Response Action by the Postal Service to deduct funds from a mailer's trust account or any other funds in USPS possession would be a last resort effort to collect revenue due after the appeal process has been exhausted and the mailer has not made an appropriate payment arrangement. Mailer Comment Clarification needed on the timing and handling of due process notification on appeals. USPS Response The 30 day time frame listed in 3.2.1 is the time for a mailer to respond to the notification of a revenue deficiency assessment. Reasonable extensions for appeal will continue to be entertained for mailers that request such time to review documentation and data to formulate their response. Comments from the second responder are as follows: Mailer Comment Clarification needed on the expansion of liability, written notification, and due process. USPS Response The clarification of ``mailer'' contained in new section 3.1.1 is intended to ensure that the identification and responsibility of any error in preparation is assessed to the appropriate party(ies), mail owner, mail preparer, and/or list provider. It is not intended as an effort to collect more than what is owed. The definition of ``Revenue Deficiency'' in new 3.1.1(a) specifically states that a written notification to the mailer citing the amount of the deficiency and the circumstances is required. Accordingly, a policy requiring written notification of the deficiency to the assessed mailer is still in existence. Mailer Comment Clarification needed on the interest charge. USPS Response The 6% interest charge is per annum after a final agency decision is rendered by the Pricing and Classification Service Center (PCSC) when the mailer is in default. Mailer Comment Clarification needed on the collection process. USPS Response The possible actions that the USPS may choose to enforce would only be applied if an assessed mailer, after a final agency decision has been rendered, fails to make payment, enter into a payment agreement, or otherwise fails to negotiate a settlement of the debt. Comments from the third responder are as follows: The third responder had numerous comments that were determined to be beyond the scope of this final rule. The Postal Service will review and address these comments in a separate forum with the responder. These revisions will ensure the proper payment of postage while providing a superb customer experience from sender to receiver. List of Subjects in 39 CFR Part 111 Administrative practice and procedure, Postal Service. The Postal Service adopts the following changes to the 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 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 following sections of 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 [Delete 10.0, Revenue Deficiency, in its entirety and renumber 11.0 and 12.0 as 10.0 and 11.0.] * * * * * [[Page 10625]] 607 Mailer Compliance and Appeals of Classification Decisions * * * * * [add new 3.0 to read as follows:] 3.0 Revenue Deficiency 3.1 General The revenue deficiency process outlined in 3.0 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. 3.1.1 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. 3.1.2 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. 3.1.3 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 collected as allowed by law or regulation. * * * * * 3.2 Appeal of Ruling 3.2.1 General Decision Except as provided in 604.4.4.4 through 604.4.4.5, 3.2.2, and 703.1.0, a mailer may appeal a revenue deficiency assessment by sending a written appeal to the postmaster or manager in 3.2.1a through 3.2.1c 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: a. To the district manager, Finance, for revenue deficiencies for fees. The district manager, Finance, issues the final USPS decision. 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. c. To the manager, Product Classification (see 608.8.0 for address), if the PCSC manager first assessed the deficiency. The manager, Product Classification issues the final agency decision. 3.2.2 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 address) Postal official. ------------------------------------------------------------------------ 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. Ruth B. Stevenson, Attorney, Federal Compliance. [FR Doc. 2018-04890 Filed 3-9-18; 8:45 am] BILLING CODE 7710-12-P
![10624 Federal Register / Vol. 83, No. 48 / Monday, March 12, 2018 / Rules and Regulations
(i) Decline Servicemembers’ Group The Postal Service received 3 formal by the Pricing and Classification Service
Life Insurance for the member or Family responses on the proposed rule, all of Center (PCSC) when the mailer is in
Servicemembers’ Group Life Insurance which included multiple comments. default.
for the member’s insurable spouse (38 Comments from the first responder
Mailer Comment
U.S.C. 1967(a)(2)(A) or (B)); are as follows:
(ii) Insure the member under Clarification needed on the collection
Servicemembers’ Group Life Insurance Mailer Comment process.
or the member’s spouse under Family Clarification needed on deducting USPS Response
Servicemembers’ Group Life Insurance deficiencies directly from a trust
in an amount less than the maximum account. The possible actions that the USPS
amount of such insurance (38 U.S.C. may choose to enforce would only be
USPS Response applied if an assessed mailer, after a
1967(a)(3)(B));
(iii) Restore or increase coverage Action by the Postal Service to deduct final agency decision has been rendered,
under Servicemembers’ Group Life funds from a mailer’s trust account or fails to make payment, enter into a
Insurance for the member or under any other funds in USPS possession payment agreement, or otherwise fails to
Family Servicemembers’ Group Life would be a last resort effort to collect negotiate a settlement of the debt.
Insurance for the member’s insurable revenue due after the appeal process has Comments from the third responder
spouse (38 U.S.C. 1967(c)); been exhausted and the mailer has not are as follows:
(iv) Designate one or more The third responder had numerous
made an appropriate payment
beneficiaries for the member’s comments that were determined to be
arrangement.
Servicemembers’ Group Life Insurance beyond the scope of this final rule. The
Mailer Comment Postal Service will review and address
or former member’s Veterans’ Group
Clarification needed on the timing these comments in a separate forum
Life Insurance (38 U.S.C. 1970(a)); and
(v) Increase the amount of coverage and handling of due process notification with the responder.
These revisions will ensure the proper
under Veterans’ Group Life Insurance on appeals.
payment of postage while providing a
(38 U.S.C. 1977(a)(3)).
(b) Applications or forms that satisfy USPS Response superb customer experience from sender
the definition in paragraph (a)(1) of this The 30 day time frame listed in 3.2.1 to receiver.
section may be utilized to— is the time for a mailer to respond to the List of Subjects in 39 CFR Part 111
(1) Apply for Veterans’ Group Life notification of a revenue deficiency Administrative practice and
Insurance; and assessment. Reasonable extensions for procedure, Postal Service.
(2) Reinstate Veterans’ Group Life appeal will continue to be entertained
Insurance. The Postal Service adopts the
for mailers that request such time to
following changes to the Mailing
[FR Doc. 2018–04877 Filed 3–9–18; 8:45 am] review documentation and data to
Standards of the United States Postal
BILLING CODE 8320–01–P formulate their response.
Service, Domestic Mail Manual (DMM),
Comments from the second responder incorporated by reference in the Code of
are as follows: Federal Regulations. See 39 CFR 111.1.
POSTAL SERVICE Mailer Comment Accordingly, 39 CFR part 111 is
amended as follows:
39 CFR Part 111 Clarification needed on the expansion
of liability, written notification, and due PART 111—[AMENDED]
Revenue Deficiency process.
AGENCY: Postal ServiceTM. ■ 1. The authority citation for 39 CFR
USPS Response part 111 continues to read as follows:
ACTION: Final rule.
The clarification of ‘‘mailer’’ Authority: 5 U.S.C. 552(a); 13 U.S.C. 301–
SUMMARY: The Postal Service is contained in new section 3.1.1 is 307; 18 U.S.C. 1692–1737; 39 U.S.C. 101,
amending the Mailing Standards of the intended to ensure that the 401, 403, 404, 414, 416, 3001–3011, 3201–
United States Postal Service, Domestic identification and responsibility of any 3219, 3403–3406, 3621, 3622, 3626, 3632,
Mail Manual (DMM®) to clarify the error in preparation is assessed to the 3633, and 5001.
Postal Service revenue deficiency appropriate party(ies), mail owner, mail ■ 2. Revise the following sections of the
policy. preparer, and/or list provider. It is not Mailing Standards of the United States
intended as an effort to collect more Postal Service, Domestic Mail Manual
DATES: Effective: May 7, 2018.
than what is owed. The definition of (DMM) as follows:
FOR FURTHER INFORMATION CONTACT: ‘‘Revenue Deficiency’’ in new 3.1.1(a)
Janet Meddick at (202) 268–2652 or specifically states that a written Mailing Standards of the United States
Pierre DeFelice at (724) 993–3596 or notification to the mailer citing the Postal Service, Domestic Mail Manual
Garry Rodriguez at (202) 268–7281. amount of the deficiency and the (DMM)
SUPPLEMENTARY INFORMATION: The Postal circumstances is required. Accordingly, * * * * *
Service published a notice of proposed a policy requiring written notification of
rulemaking on December 13, 2017, (82 600 Basic Standards for All Mailing
the deficiency to the assessed mailer is Services
FR 58580–58582) to amend DMM still in existence.
section 604.10.0, Revenue Deficiency, to * * * * *
update the definition of a revenue Mailer Comment
daltland on DSKBBV9HB2PROD with RULES
604 Postage Payment Methods and
deficiency; designate Postal Service Clarification needed on the interest Refunds
contacts for submitting appeals; and add charge.
sections to provide the definition of a [Delete 10.0, Revenue Deficiency, in
mailer, description of assessments and USPS Response its entirety and renumber 11.0 and 12.0
mailers responsibilities, and policy on The 6% interest charge is per annum as 10.0 and 11.0.]
assessed revenue deficiencies. after a final agency decision is rendered * * * * *
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![Federal Register / Vol. 83, No. 48 / Monday, March 12, 2018 / Rules and Regulations 10625
607 Mailer Compliance and Appeals documentation in assessing a revenue receipt of the final agency decision and
of Classification Decisions deficiency. Mailers are required to will continue until the debt is paid.
* * * * * cooperate and provide any d. Other fees and costs related to an
documentation or information requested assessed revenue deficiency may be
[add new 3.0 to read as follows:]
by postal officials during the review and collected as allowed by law or
3.0 Revenue Deficiency assessment process. A mailer’s failure to regulation.
3.1 General provide requested documentation or * * * * *
information during a review may result
The revenue deficiency process in a negative inference concerning the 3.2 Appeal of Ruling
outlined in 3.0 is an administrative documentation or information 3.2.1 General Decision
process that supplements and does not requested.
diminish any rights the Postal Service Except as provided in 604.4.4.4
has to recover revenue deficiencies 3.1.3 Assessed Revenue Deficiencies through 604.4.4.5, 3.2.2, and 703.1.0, a
through other legally available methods, Assessed revenue deficiencies may be mailer may appeal a revenue deficiency
such as when the deficiency arises as a subject to the following: assessment by sending a written appeal
result of fraud, misrepresentation, or the to the postmaster or manager in 3.2.1a
a. If a mailer fails to tender payment
misuse of PC Postage products or other through 3.2.1c within 30 days of receipt
to the Postal Service within 30 days of
Postage Evidencing Systems. of the notification. In all cases, the
receipt of a final agency decision, or
mailer may be asked to provide more
3.1.1 Definitions fails to comply with the terms or
information or documentation to
conditions of a payment plan agreed to
Revenue deficiency definitions are as support the appeal. Failure to do so
by the Postal Service concerning the
follows: within 30 days of the request is grounds
final agency decision, or is suspected by
a. Revenue deficiency: Means a for denying an appeal. Any decision
the Postal Service of continuing to
shortage or underpayment of postage or that is not appealed as prescribed
repeatedly short pay postage, the Postal
fees that has been calculated and becomes the final agency decision.
Service may:
assessed to a mailer. Unless assessed Mailers may send appeals as follows:
1. Deduct from the mailer’s trust a. To the district manager, Finance,
under other applicable postal
account or any other funds in USPS for revenue deficiencies for fees. The
regulations, revenue deficiencies are
possession any deficiencies incurred district manager, Finance, issues the
generally assessed as provided herein by
within 12 months of the date of the final final USPS decision.
the Postmaster; manager, Business Mail
mailing on which the deficiency was
Entry; the program manager, Revenue b. To the Postmaster, manager,
assessed.
and Compliance, or other postal official, Business Mail Entry, program manager,
who issues a written notification to the 2. Initiate debt collection procedures. Revenue and Compliance, or other
mailer citing the amount of the 3. Restrict or suspend discounted postal official, for revenue deficiencies
deficiency and the circumstances. mailing privileges with the concurrence for postage. The appeal is then
b. Mailer: A mailer is defined as the of the manager, Revenue Assurance and forwarded to the manager, PCSC, who
mail owner or an individual or entity Vice President Controller, or as issues the final agency decision.
that prepares or presents a mailing to otherwise allowed by regulation, or in c. To the manager, Product
the Postal Service and includes those accordance with any agreement with the Classification (see 608.8.0 for address),
who allow others to use a postage meter mailer. if the PCSC manager first assessed the
or PC postage product (collectively b. Discounted mailing privileges may deficiency. The manager, Product
‘‘postage evidence system’’—see be suspended or restricted regardless of Classification issues the final agency
604.4.1.1 and 604.4.1.2) that has been payment status of an assessed revenue decision.
authorized for use by the individual or deficiency if underpayment of postage
occurs again after a mailer has been 3.2.2 Nonprofit USPS Marketing Mail
entity.
assessed a revenue deficiency. Decision
3.1.2 Assessments c. Interest on assessed revenue Nonprofit mailers have two levels of
Postal officials review mailings, deficiencies will accrue at a rate of 6% appeal. They may appeal revenue
postage statements, and other relevant per annum beginning 30 days after the 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)
All appeals must be submitted in available within the USPS beyond the We will publish an appropriate
writing within 30 days of the previous second appeal. amendment to 39 CFR part 111 to reflect
USPS decision. Any decision that is not * * * * * these changes.
appealed as prescribed becomes the
Ruth B. Stevenson,
daltland on DSKBBV9HB2PROD with RULES
final agency decision; no appeals are
Attorney, Federal Compliance.
[FR Doc. 2018–04890 Filed 3–9–18; 8:45 am]
BILLING CODE 7710–12–P
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Document Created: 2018-11-01 08:50:55
Document Modified: 2018-11-01 08:50:55
| 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 | Rules and Regulations | |
| Action | Final rule. | |
| Dates | Effective: May 7, 2018. | |
| Contact | Janet Meddick at (202) 268-2652 or Pierre DeFelice at (724) 993-3596 or Garry Rodriguez at (202) 268-7281. | |
| FR Citation | 83 FR 10624 | |
| CFR Associated | Administrative Practice and Procedure and Postal Service |
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