Pub 350, Penalty Mail Stamp System
December 2001

Contents

Transmittal Letter

Summary of Changes

Penalty Mail Stamp System

Policy

Accountability

Definitions

Stamp Distribution Offices

Agency Mail Manager

Mailing Requirements

Postal Regulations

Shortpaid Mail

Unpaid Mail

Agency Ordering Procedures

Minimum Orders

Where to Order

When to Order

Ordering Penalty Mail Stamps, Stamped Cards, and Stamped Envelopes

Ordering Printed Stamped Envelopes

Receipt of PMS Postage

Exchange of Unusable PMS Postage

Use of PMS Postage

Regulations on PMS Use

Determining Postage

Shortpaid and Unpaid Mail

Appendix: Designated Penalty Mail SDOs

Transmittal Letter 3

A. Explanation. This publication provides procedures for U.S. Government agencies to requisition and use penalty mail postage stamps, stamped cards, and stamped embossed envelopes as part of the penalty mail stamp (PMS) system.

B. Distribution

1. Initial. This document is distributed directly to all government agencies authorized by the Postal Service manager of Post Office Accounting, Finance, to use penalty mail postage stamps; to the Postal Service stamp distribution offices designated to supply these stamps; and to Stamp Fulfillment Services in Kansas City, MO.

2. Online Availability. This publication is available on the Postal Service Internet at http://www.usps.com and the Postal Service Intranet at http://blue.usps.gov.

C. Additional Copies, Questions, or Comments

1. Other Government Agencies. Direct your requests for additional copies, questions, or comments regarding this program or the content of this publication to the individual agency headquarters mail manager responsible for coordinating your PMS program. Individual mail managers may request additional copies from the address below.

2. Postal Service. Direct your requests for additional copies, questions, or comments to:

MANAGER REVENUE AND FIELD ACCOUNTING
FINANCE
US POSTAL SERVICE
475 L'ENFANT PLZ SW RM 8831
WASHINGTON DC 20260-5242

D. Rescission. This document supersedes Publication 350, How to Order and Use Penalty Mail Stamps and Stationery, dated August 1996. Discard all copies of the superseded document and replace with this publication.

E. Effective Date. This publication is effective upon receipt.

Richard J. Strasser, Jr.
Chief Financial Officer, Executive Vice President,Finance

Donna M. Peak
Vice President, Controller, Finance

Overall Revisions

• Some chapter and section titles are changed.

• All references to postal cards are changed to stamped cards.

• Rates are changed to reflect current Postal Service rates.

• Certain envelopes no longer available are deleted from both text and exhibits.

• Mailing addresses are updated.

• Exhibits are changed to delete obsolete PS Forms 17-G and 17-J and insert current PS Forms 17-G and 17-J.

Specific Revisions

Chapter 1 Penalty Mail Stamp System

• Chapter title is changed from Introduction to Penalty Mail Stamp System.

• Title of first section is changed from USPS Policy to Policy, and first sentence is revised. Registered mark is added to Express Mail because it is a registered trademark for the Postal Service.

• Exhibit 1 is revised to show the 34-cent PMS stamp design.

• In PMS Stamps, denominations are revised to reflect current rates.

• In PMS Coils, denominations are revised to reflect current rates.

• In PMS Stamped Card, postal card is changed to stamped card throughout.

• Exhibit 2 is changed from postal card to stamped card.

• In PMS Plain Stamped Envelope, last sentence is deleted because window version is no longer available.

• Exhibit 3 is revised to reflect current rate for PMS plain stamped envelope.

• Exhibit 4 is deleted because PMS plain stamped envelope - window version is no longer available.

• Exhibit 5 is renumbered as Exhibit 4 and is revised to reflect current rate for PMS printed stamped envelope.

• Exhibit 6 is deleted because PMS printed stamped envelope - window version is no longer available.

• In Mailing Requirements, Postal Regulations, mailing address is updated for SUPERINTENDENT OF DOCUMENTS.

• In Shortpaid Mail, second sentence is revised to reflect current policy, and third sentence is revised to delete "without charge."

• In Unpaid Mail, sentence is revised from "an attempt at" to "attempting."

Chapter 2 Agency Ordering Procedures

• In Minimum Orders, postal cards are changed to stamped cards throughout, and stamp denomination reference is revised to reflect current rate.

• In Denomination table, denominations are revised to reflect current rates; postal cards are changed to stamped cards; window version is deleted from stamped envelopes because it is no longer available.

• In When to Order, postal cards are changed to stamped cards.

• In Ordering Penalty Mail Stamps, Stamped Cards, and Stamped Envelopes, stamp denominations are revised to reflect current rates, and item numbers are added. Introductory text paragraph is also edited to clarify instructions for ordering agencies. Note is revised to add that 21-cent stamped cards will not be printed and that 20-cent stamped cards may be ordered but that a 1-cent postage stamp must be added to each card.

• Exhibit 7 is renumbered as Exhibit 5, and current PS Form 17-G is shown.

• In Ordering Printed Stamped Envelopes, the mailing address for the PHILATELIC FULFILLMENT SERVICE CENTER is updated. Note is revised to add current pricing information for item #218200 on PS Form 17-J.

• Exhibit 8 is renumbered as Exhibit 6, and current PS Form 17-J is shown.

• In Exchange of Unusable PMS Postage, "unusable PMS" is revised to "unusable PMS items"; the limit for the total value of an exchange is changed from $100 to $500.

Chapter 3 Use of PMS Postage

• In Regulations on PMS Use, postal card is changed to stamped card.

• In Determining Postage, last sentence, "service used" is revised to "service(s) used."

• In Shortpaid and Unpaid Mail, third sentence is deleted, "The postage due may be paid with PMS postage, penalty mail meter strips, or cash in the exact amount due." Two sentences are added to replace deleted sentence, "Postage due charges are assessed by the delivering post office. At the close of each postal accounting period, a report of the total charges assessed are forwarded to that office's district Finance office for entry into the PMS system."

Appendix: Designated Penalty Mail SDOs

• Mailing addresses are updated.

Penalty Mail Stamp System

This publication provides procedures for U.S. government agencies to requisition and use penalty mail postage stamps, stamped cards, and stamped embossed envelopes that are offered to the agencies as part of the penalty mail stamp (PMS) system.

Policy

Official mail is authorized by federal law to be transmitted by government officials to the Postal Service without prepayment of postage. Penalty mail is the type of official mail authorized for use by the executive and judicial branches of the federal government. The PMS system - used with penalty meter indicia, penalty permit imprint indicia, penalty business reply indicia, and Express Mail® - enables participating agencies to achieve total actual official mail accountability. PMS stamp stock, stamped cards, and stamped envelopes are available for official use only by authorized government agencies.

The penalty for private use is $300.

Accountability

When combined with other penalty mail indicia, PMS indicia allow government agencies to achieve total direct accountability of their postage costs. With the PMS system, government agencies are able to affix the postage required and are billed for the exact amount of postage ordered.

Definitions

The following definitions apply to the PMS system:

a. Indicia - imprinted designations used on all mail to denote payment of postage.

b. PMS indicia -PMS stamp design, as shown, is essentially the same for stamps and postal stationery, except for denomination (see Exhibit 1).

Exhibit 1

PMS Stamps

c. PMS stamps - PMS stamps are currently available in these denominations:

1, 4, 10, 13, 14, 17, 19, 20, 23, 33, and 34 cents, $1, and $5.

d. PMS coils -roll of 100 stamps; PMS coils are currently available in 20-, 33-, and 34-cent denominations. All other PMS stamps are available in sheets only.

e. Postage item number -unique six-digit number to identify type of postage ordered.

f. PMS stamped card -PMS stamped card supplied by the Postal Service with a postage stamp printed and impressed in the upper-right corner on the address side and the words "Official Business, Penalty For Private Use $300" printed on the left (see Exhibit 2).

Exhibit 2

PMS Stamped Card

g. PMS plain stamped envelope -envelope with stamp printed and embossed on the upper-right corner and the words "Official Business, Penalty For Private Use $300" printed on the left side of the envelope (see Exhibit 3).

Exhibit 3

PMS Plain Stamped Envelope

h. PMS printed stamped envelope -PMS printed stamped embossed envelope available with specific return address printed on the upper-left corner (see Exhibit 4).

Exhibit 4

PMS Printed Stamped Envelope

Stamp Distribution Offices

Stamp distribution offices (SDOs) are post offices that distribute postage stock to other ordering post offices. Designated SDOs distribute PMS postage to ordering government agencies (see the appendix for a list of the designated SDOs). Post offices other than those listed in the appendix do not distribute PMS stock.

Agency Mail Manager

The agency mail manager is the Headquarters individual designated as the point of contact with the Postal Service for official mail matters.

Mailing Requirements

Postal Regulations

Postal Service regulations governing the use of domestic and international mail services are contained in the Domestic Mail Manual (DMM) and International Mail Manual (IMM). Agencies may order copies of the DMM and IMM from:

SUPERINTENDENT OF DOCUMENTS
US GOVERNMENT PRINTING OFFICE
PO BOX 371954
PITTSBURGH PA 15250-7954

Government agencies authorized to use the PMS system must comply with all applicable restrictions, requirements for wrapping and mailing, and general provisions concerning the use of all mail services. The correct amount of postage for the service used must be affixed to official mail covers when PMS stock is used.

Shortpaid Mail

Shortpaid mail is mail with insufficient postage. The shortage must be assessed upon delivery to the addressee. When quantity mailings of 10 or more pieces are received at the office of mailing without sufficient postage, the mailer is notified so that the postage charges may be adjusted before the mail is dispatched.

Unpaid Mail

Mail without postage attached is returned to the sender without attempting delivery.

Agency Ordering Procedures

Minimum Orders

Agencies may order postage stamps, stamped cards, and stamped envelopes to meet their official mailing needs. However, each order must be for a minimum of $50. The SDO increases orders for less than $50 to meet (or exceed) this minimum by adding coils of 100 34-cent stamps. Stamps, stamped cards, and stamped envelopes must be ordered in the minimum units as follows:

Orders received by an SDO for other than complete ordering units for the above items are increased to the next higher unit. Examples: an order for 174 23-cent stamps is increased to 200 23-cent stamps; an order for one and one-half packs of stamped cards (375) is increased to two packs (500); one-half box of stamped envelopes is increased to one box (500).

Where to Order

Send orders directly to the SDO designated to fill requisitions for the ZIP Code® area to which the order is to be shipped. A list of the SDOs with their ZIP Code service areas is provided in the appendix.

When to Order

PMS stock, stamped cards, and stamped envelopes should be ordered no more than once each quarter. Printed stamped envelopes may be ordered as often as necessary.

Ordering Penalty Mail Stamps, Stamped Cards, and Stamped Envelopes

Use PS Form 17-G, Penalty Mail Stamp Requisition, to order PMS postage (see Exhibit 5). Start-up PS Forms 17-G must be obtained from the agency mail manager. A blank three-part form set is included with each shipment: the ordering copy (page 1), shipping copy (page 2), and customer copy (page 3). The ordering agency retains page 3. Send copies 1 and 2 to the appropriate SDO. If you do not submit both copies, if you submit the forms to the wrong SDO, or if you submit illegible forms, your order will not be filled but returned for correction and resubmission. When completing PS Form 17-G, type or print clearly so that all information is legible on all three copies.

1. Complete the Ordered By Section.

In the Ordered By section of PS Form 17-G, enter the following information:

• Name and title. Your full name and position.

• Street address and city, state, ZIP+4. Your mailing address includes your ZIP+4®.

• Telephone number. Includes your area code.

• Signature.

• Department/agency. The organization you represent that is to be billed for the postage ordered.

• Date of order. Includes the month (Mo), day (Day), and year (Yr) you send the order to the designated SDO. Enter numerics only.

• Agency code. Obtain these Postal Service three-digit codes from your agency mail manager. These codes must be used. Without this information, the SDO cannot fill your order.

• Agency cost code. Obtain these codes from your agency mail manager; however, their use is optional.

2. Complete the Order Blank.

Order PMS postage by entering the desired number of 1-, 10-, 20-, 23-cent, $1, and $5 stamps; number of 33- and 34-cent stamp coils; packs of 20-cent stamped cards; and boxes of 34-cent stamped envelopes (regular only).

To do this:

• Enter the number of stamps, coils, packs, or boxes desired in the column provided next to the Item No.

• Multiply the number of items ordered by the denomination or price given, and enter the result (product) in the column headed Dollars and Cents.

• Total the amounts entered in the Dollars and Cents column, and enter the total in the space provided for Requisition Total.

• Verify your calculations. Make sure that entries are legible on all three copies of the form.

Note: Sheets of 4- (item number 556100), 13- (item number 555300), 14- (item number 555200), 17- (item number 555700) and 19-cent (item number 555900) stamps and coils of 20-cent (item number 771200) stamps are also available as write-in items on the appropriate section of the form.

3. Complete the Shipping Label.

Complete the shipping label by entering:

• The name and title of the person to receive the shipment even if the same as in the Ordered By section.

• The name and room number of the office or unit.

• The complete mailing address including street address or P.O. box, city, state, and ZIP+4 code of the government agency location receiving the shipment.

4. Mail PS Form 17-G.

Verify that all information on PS Form 17-G is correct, and send the form to the SDO servicing the Ship-to-ZIP Code (appendix), as follows:

• Remove the pink Customer Copy (page 3) for your records.

• Address the envelope containing the forms to the SDO designated to serve the Ship-to-ZIP Code on the requisition.

• Apply the proper amount of postage to cover the cost of mailing.

Note: Allow up to 2 weeks for delivery. Also, with the July 1, 2001 rate change, 21-cent stamped cards will not be printed. However, you may continue to order the 20-cent stamped cards and add a 1-cent postage stamp to each.

Exhibit 5

PS Form 17-G

Ordering Printed Stamped Envelopes

Stamped envelopes may be ordered with a return address preprinted on the envelope. To order these envelopes, complete PS Form 17-J, Penalty Mail Printed Stamped Envelope Order (see Exhibit 6). PS Form 17-J can be obtained from your agency mail manager. Follow the instructions on PS Form 17-J, and send the completed order to:

STAMP FULFILLMENT SERVICES
UNITED STATES POSTAL SERVICE
PO BOX 219178
KANSAS CITY MO 64121-9178

Complete PS Form 17-J.

In the spaces provided enter:

1. Agency code. Obtain these Postal Service three-digit codes from your agency mail manager. These codes must be used. Without this information, your order cannot be filled.

2. Agency cost code. Obtain these codes from your agency mail manager; however, their use is optional.

3. Date of order. Includes the month (Mo), day (Day), and year (Yr) you send the order to the Stamped Envelope Unit. Enter numerics only.

4. Return ZIP+4 code. Must be identical to the return address.

5. Ordering information:

• Name, title, and signature. Your full name and position.

• Agency/department name. The organization you represent that is to be billed for the postage ordered.

• Street address and city, state, ZIP+4. Your mailing address includes your ZIP+4.

• Telephone number. Includes your area code.

6. Order:

• Enter the number of boxes desired in column e.

• Multiply the number of boxes ordered in column e by the price per box in column f.

• Enter the result in column g (cost).

• Enter the appropriate shipping and handling cost.

• Add the amounts entered in column g (cost), and enter the sum in the space provided for Total.

7. Printing information. Type or print the return address exactly as you want it to appear on the envelope. Include the ZIP+4 code. This address must not exceed seven lines; each line may not exceed 47 characters in length (including spaces). You may attach a sample or facsimile address.

Exhibit 6

PS Form 17-J

8. Shipping address. Complete this section only if the envelopes are to be shipped to an address other than that entered in Printing Information.

Note: Allow up to one month for delivery. Address and rate information on current form is incorrect. Both will be revised on next printing. The rate for a box of 500 34-cent regular size 10 preprinted embossed penalty mail envelopes, item #218200, is $190.00.

Receipt of PMS Postage

PMS postage is shipped by registered mail, or other accountable mail service, to the individual or location on the shipping label. The signature of this individual (or a designee) is required for delivery. Once the recipient signs for the shipment, it may not be returned to the SDO for credit.

Exchange of Unusable PMS Postage

Damaged, defective, or unusable PMS items are replaced by the issuing SDO. Stamps that become damaged or unusable because of humidity, moisture, or other causes while in custody of government agencies are exchanged at full value only for an equal number of stamps of the same denominations. Unusable stamps accepted under these conditions must have been available from the SDOs within the 12 months before the transaction. Quantities of the same denomination over $10 must be returned in the same configurations as when obtained, that is, in sheets or coils. Each transaction is limited to stamps with a total value of $500 or less from each ordering unit.

Use of PMS Postage

Regulations on PMS Use

PMS postage allows government mailers to continue using the full range of services offered by the Postal Service. PMS postage may be used only for official business. Mailers must comply with all mailing regulations now in effect for official mail. Details of these regulations are contained in DMM E060. Official mail with the penalty mail stamp must contain a government return address printed, typewritten, or hand stamped on the envelope, label, or stamped card to be delivered. Use of a nongovernment return address can result in the return of the mailpiece to the sender.

Determining Postage

As with ordinary mail, you must determine the amount of PMS postage to be paid on a piece of official government mail by the class of mail service used, weight of the item, and, if appropriate, the distance to the destination. Obtain current postal rates and service charts at your local post office. Affix sufficient PMS postage to pay for the service(s) used.

Shortpaid and Unpaid Mail

Shortpaid and unpaid official mail is handled in the same manner as ordinary mail that is shortpaid or unpaid. This means that shortpaid official mail is not delivered unless the proper amount of postage due is assessed at the time of delivery. Postage due charges are assessed by the delivering post office. At the close of each postal accounting period, a report of the total charges assessed are forwarded to that office's district Finance office for entry into the PMS system. Unpaid official mail (official mail without any postal indicia) is returned to the sender without attempting delivery.

Appendix: Designated Penalty Mail SDOs