Effective September 6, 2011, the Postal Service™ will revise Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM®) 604.4, 604.8, and 604.10, to implement revenue protection procedures for mailpieces entered with shortpaid and unpaid Information-Based Indicia (IBI) postage payment generated by Click-N-Ship® service, IBI postage meters, and PC Postage® products, and also to implement revenue protection procedures for shortpaid Express Mail® postage.
USPS® has implemented a new web-based resolution process for mailers who wish to dispute or appeal shortpaid and unpaid IBI postage deficiency assessments. This new process will provide customers with an electronic notification of the postage deficiency and a link to a USPS web-based customer payment portal to resolve the postage deficiency. In addition to this new process, the Postal Service will continue to use the existing process for shortpaid and unpaid postage generated by Click-N-Ship service.
When Express Mail is 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, or if the Express Mail item with insufficient postage is identified during processing operations or at the destination Post Office, the Express Mail item is endorsed “Postage Due”, marked to show the total deficiency of postage and fees, and then delivered to the addressee upon payment of the deficiency.
If the addressee refuses to pay the postage due, the Express Mail item is endorsed “Return to Sender — Refused.” The postage deficiency is then collected when the Express Mail item is returned to the sender. If the original sender chooses to remail the item, a new Express Mail label and new postage and fees must be affixed.
This revision is based on the Federal Register final rule, Shortpaid and Unpaid Information-Based Indicia (IBI) Postage and Shortpaid Express Mail Postage (76 FR 39299–39303), which was published July 6, 2011, on Postal Explorer® at http://pe.usps.com.
Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM)
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600 Basic Standards for All Mailing Services
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604 Postage Payment Methods
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4.0 Postage Meters and PC Postage Products (“Postage Evidencing Systems”)
4.1 Basic Information
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4.1.2 Product Categories
***The primary characteristics of postage meters and PC Postage products are described below.
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[Revise items 4.1.2b and c 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. Click-N-Ship and USPS-approved commercial providers offer PC Postage products for mailers through subscription service agreements.
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4.2 Authorization to Use Postage Evidencing Systems
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4.2.4 Denial of Use
[Revise 4.2.4 as follows:]
The mailer authorized to use a postage evidencing system may be denied use when the mailer:
a. Fails to comply with mailing standards.
b. Submits false or incomplete information.
c. Enters shortpaid or unpaid mailpieces into the mailstream.
[Renumber current item 4.2.5 as new 4.2.6 and add new item 4.2.5 as follows:]
4.2.5 Surrender of Postage Evidencing System
If authorization to use a Postage Evidencing System is denied, the mailer must surrender the systems, upon request, to the service provider, USPS, or USPS authorized agent.
4.2.6 Appeal Process
[Revise text of renumbered 4.2.6 as follows:]
Appeals regarding standards in this section or on the basis of noncompliance may be filed as follows:
a. 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 any extra service fees, or another amount permitted by mailing standards.***
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[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 (IBI)
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 any extra services fees. Mailpieces bearing unpaid IBI are those for which the mailer has not paid the postage or additional fees due to the lack of affixed postage; the use of counterfeited, replicated, duplicated, falsified, otherwise modified IBI; or IBI with zero value.
4.4.2 Detection Process for Revenue Deficiency
For mailpieces with shortpaid or unpaid postage found in the mailstream, manual and automated processes are used to detect and verify the revenue deficiencies.
4.4.3 Handling of Mailpieces With IBI Postage Revenue Deficiencies
For confirmed shortpaid or unpaid IBI postage, corrective measures may include:
a. Delivering the mailpiece to the addressee and collecting the revenue deficiency 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
Upon confirmation of a revenue deficiency with IBI postage, the Postal Service electronically notifies both the mailer and the postage evidencing system service provider of the revenue deficiency and delivers the mailpiece to the addressee. The notification provides a link to the web-based customer payment portal that permits the mailer to pay or dispute the revenue deficiency.
4.4.5 Resolution Process
A resolution process is provided through the web-based customer payment portal.
4.4.6 Payment Process
The mailer must make payment within 14 days from the date the Postal Service sends the electronic notification by accessing the web-based customer payment portal or by choosing another method identified in the notification. Any mailer disputes regarding the revenue deficiency must be made during this 14-day period. The postage evidencing system service provider may be notified 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
Mailers wishing to dispute the deficiency payment must do so within 14 days by accessing the web-based customer payment portal or other method identified in the electronic notification and substantiate that the postage affixed was valid and sufficient for the postage and applicable fees. An electronic notification is sent to the mailer of the 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
If a dispute of a revenue deficiency is denied, the mailer has 7 days from the date of the electronic notification to file an appeal, by accessing the web-based customer payment portal or choosing another method identified in the notification. The mailer must provide additional evidence to substantiate that the postage affixed was valid and sufficient for the postage and fees. If the appeal decision is upheld, the mailer takes no 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 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.
4.4.9 Denied Appeals
If the appeal is denied, the mailer must pay the revenue deficiency within 7 days from the date of the electronic notification by accessing the web-based customer payment portal or choosing another USPS-authorized method identified in the notification. The postage evidencing system service provider may be notified to 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.
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8.0 Insufficient or Omitted Postage
8.1 Insufficient Postage
8.1.1 Definition
[Revise the second and third sentences of 8.1.1, and add a new fourth sentence 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.
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[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 Express Mail items are 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 deficiency is handled under 8.1.9.
[Add new items 8.1.9 through 8.1.11 as follows:]
8.1.9 Express Mail With Insufficient Postage — Processing Operations
For Express Mail items with insufficient postage that are identified during 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 Express Mail items 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
Express Mail items with insufficient postage are returned to the sender after collecting the postage deficiency when an effort to contact the sender before dispatch fails and when the addressee refuses to pay the postage due. If the item is remailed as Express Mail, the sender must affix a new Express Mail label with new postage and any applicable fees.
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10.0 Revenue Deficiency
10.1 General
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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.***
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We will include these revisions in the next monthly update of the online DMM available on Postal Explorer® at http://pe.usps.com.
— Product Classification,
Pricing, 8-11-11
