
145.83 Applications.
A Form 3626 must be submitted to the post office serving the mailer's
plant.  Applications may be obtained from the field division manager, mailing
requirements, serving the mailer's plant.

145.84 Supporting Documentation.
As part of the completed application, the mailer must submit the following:

(a)
Complete sample job, with all records to be part of the audit trail
identified and labeled.

(b)
Detailed explanation of how each of the supplied records is to support the
number of pieces and presort level rate of postage claimed on the mailing
statements.

(c)
Detailed description of current internal quality control procedures as they
relate to production and presentation of mailing, as required in Publication
407.

145.85 Approving or Denying Applications

145.851 Responsibility.
The general manager, rates and classification center (RCC), serving the
post office where the mailer's application was submitted, approves or denies
applications for optional procedure.

145.852 Approval.
If a decision is made to approve the application, the general manager, RCC,
must prepare a written agreement between the Postal Service and the mailer.
The agreement specifies the types of mailings that may be mailed under the OP
Mailing System, including information such as the classes of mail, processing
categories, permit numbers to be used on mailpieces, and whether the mailer is
authorized to mail identical and/or nonidentical weight mailpieces.  The RCC
forwards the agreement to the field division general manager/postmaster who
obtains the signatures of the mailer and the participating post offices, with
instructions for administering the agreement.  After the agreement is signed
by the mailer and the participating post offices, it is returned to the
general manager, RCC, for signature.  A copy of the signed agreement must be
provided to all participants.

145.853 Denial.
If a decision is made to deny an application, the general manager, RCC,
must notify the mailer, in writing, of the decision.  The denial becomes
effective 15 days from the mailer's receipt of the notice, unless a written
appeal is filed within that time with the general manager, RCC, in accordance
with 145.86.

145.854 Appeal.
A mailer may appeal the decision of the general manager, RCC, to deny an
application for an OP Mailing System.  The appeal must be filed within 15 days
of the mailer's receipt of the notice of denial and must contain additional
information as to why the OP application should be approved.  The general
manager reviews the additional information to determine whether the
application should be approved.  If a decision is made to approve the
application, the general manager must follow the procedures in
145.852.  If the general manager still finds that the application
should be denied, the file is forwarded to the Director, Office of
Classification and Rates Administration, who issues a final written decision
to the mailer.


145.86 Concurrent Authorization at Stage I of the System Certification
Program

145.861 General.
Stage I of System Certification is a comprehensive program for documenting
mailer ability to conform to the OP requirements.

145.862 Authorization.
Any mailer approved after October 1, 1990, to mail under an OP is
automatically certified at Stage I of the System Certification Program.
Mailers who mail under an OP approved before October 1, 1990, are certified
only if a determination is made that they would qualify if they reapplied
under the current regulations.

145.863 List of Stage I Certified Mailers.
The Postal Service periodically publishes a list of the names of mailers
certified under 145.8 at Stage I of the System Certification Program.
 Mailers who prefer not to have their company names included on the list must
notify the Postal Service at the time of certification.

145.87 Suspension or Cancellation of OP Mailing System and Agreement

145.871 Reasons for Cancellation.
OP Mailing System authorization may be canceled under any of the following
conditions:

a.
The mailer may cancel the OP agreement with the Postal Service at any time
by notifying the administering post office in writing.

b.
The general manager, RCC, may cancel the OP agreement under any of the
following conditions:

(1)
At any time it is established that the mailer has intentionally provided
misleading or incorrect data to avoid payment of postage;

(2)
When no mailings have been made under the OP agreement during any
consecutive 12-month period;

(3)
When the mailer continually fails to comply with the requirements of the
DMM, Publication 407, or the OP agreement; or

(4)
When it is determined from the 2-year renewal audit that the OP agreement
is no longer justified or the mailer is not complying with the provisions of
the agreement.

145.872 Cancellation Procedure.
If a decision is made to cancel an OP agreement, the general manager, RCC,
must notify the mailer, in writing, of the decision.  The cancellation becomes
effective 15 days from the mailer's receipt of the notice unless the mailer
files a written appeal within that time with the general manager, RCC.  The
appeal must contain additional information as to why the optional procedure
should not be canceled.  The general manager reviews the additional
information to determine whether the OP agreement should be continued.  If a
decision is made to continue the OP agreement, the general manager notifies
the mailer, in writing, of the decision.  If a decision is made by the general
manager to deny the appeal, the appeal and the additional information
furnished by the mailer is forwarded to the Director, Office of Classification
and Rates Administration, who issues to the mailer the final written decision.

145.873 Suspension.
An OP Mailing System may be suspended by the general manager, RCC, at any
time, pending investigation, when there is an indication that postage is not
being fully paid.

145.88 Mailing Records

145.881 Mailer's Responsibility.
Mailers are responsible for the submission of accurate statements of
mailing and the maintenance of accurate records.  The Postal Service audit is
directed only at detecting underpayment.  The burden rests with the mailer to
prove any overpayment of postage.

145.882 General Requirement.
Verification of postage is normally done through a Postal Service audit of
records maintained by the mailer as a normal requirement of business.

a.
Records used for verification of optional procedure mailings must be
records which are, as a matter of routine, also maintained for production of
other than optional procedure mailings.

b.
All records must be labeled, as they are created, as to the mailing (and/or
order) to which they relate.

145.883 Record Retention.
The mailer must prepare a mailing record for each mailing and maintain it
at a central location for 1 year.  This requirement enables the Postal Service
to audit the accuracy of the computations for individual mailings as well as
for the aggregate of all mailings.  Each mailing record must contain

a.
sample of the mailpiece,

b.
mailing statement, and

c.
sufficient source documents to permit reconciliation with the mailing
statement.

145.884 Additional Records.
Sufficient additional records must be retained by the mailer to provide at
least two methods of verifying the mailings which are acceptable to the
region.  The following are records which may be appropriate to meet this
verification requirement:

a.
Purchase order from mailer's client.

b.
Production order on quantity.

c.
Job order on quantity.

d.
Machine production records (register readings).

(1)
Assemblers.

(2)
Stuffing machines.

(3)
Collators.

(4)
Printers.

(5)
Wrapping and bundling machines.

(6)
Stitching machines.

e.
Weigh tickets.

(1)
Pallets.

(2)
Consolidated weights.

f.
Billing to customer.

g.
Computer list of addresses.

h.
Inventory records.

145.885 Running Summaries.
The mailer must maintain running summaries of mailings made in which the
day of mailing, quantity, individual weight, total weight, and total postage
of each mailing are recorded.

145.9 Alternate Mailing Systems (AMS)

145.91 Purpose.
The purpose of this section is to provide for situations where other
systems for the acceptance of permit imprint mail, not specifically outlined
in 145.7 or 145.8, satisfactorily provide for proper
postage payment and mail preparation without verification by weight.

145.92 General Qualification Requirements and Request Procedures

145.921 AMS Request.
Mailers may request authorization to pay postage by an alternate method by
submitting a written request to the postmaster at the office of mailing.  The
request must include (a) a complete description of the types of matter to be
mailed; (b) the proposed method of paying postage; (c) the proposed method to
determine correct mail makeup; and (d) a statement of the mailer's reasons for
requesting the alternate system.

145.922 Postage Payment.
All postage must be paid in accordance with 145.11, unless an
alternate system is approved in writing by the general manager, rates and
classification center (RCC).

145.923 Cost/Benefit.
There must be no additional cost to the Postal Service to administer the
AMS agreement in excess of the costs of current mail acceptance procedures for
the mail in question.  The applicable field division performs a detailed
cost/benefit analysis that must be included in the supporting documentation
provided to the general manager, RCC.

145.924 Mailer Quality Control.
The mailer must implement a quality control program acceptable to the
Postal Service.  The program must demonstrate that accurate documentation is
provided and that mail is properly prepared.  The supporting documentation
must include a detailed description of the proposed quality control
procedures.  Each mailing under an AMS agreement must be accompanied by a
statement by the mailer certifying that a quality control verification has
been performed.

145.925 Application Procedures.
The following procedures apply to the submission of an application for an
AMS authorization:

a.
The mailer must submit to each entry post office a written request and
supporting documentation that includes all the information outlined in
145.921.

b.
The entry office postmaster reviews and evaluates the AMS request,
supporting documentation and system description, provides a letter of
recommendation to approve or disapprove the AMS (the letter must include a
statement specifying the reasons for the decision), and forwards the entire
package to the field division general manager/postmaster.

c.
The field division general manager/postmaster reviews the AMS request,
supporting documentation and system description, conducts a detailed
cost/benefit analysis, provides a letter of recommendation to approve or
disapprove the AMS (the letter must include a statement specifying the reasons
for the decision), and forwards the entire package to the appropriate general
manager, RCC, who makes the final decision.

d.
The general manager, RCC, makes the initial decision to grant or deny an
AMS authorization, pursuant to 145.926 and 145.927.  An
alternate mailing system is not valid and may not be implemented before an AMS
agreement is prepared and signed by the general manager, RCC.  Representatives
from the division and/or RCC may visit the mailer's plant to review the
proposed operation as part of this review procedure.

145.926 Conditions of Authorization.
The conditions of authorization are as follows:

a.
Authorization to use AMS may be granted only when its adoption is in the
best interests of the Postal Service.

b.
Overpayments or underpayments identified during postal verification require
a postage adjustment.  Verification samples are deemed to be representative of
the entire mailing and postage adjustment calculations are based on the total
mailing.

c.
The mailer must pay a penalty whenever the sampling verification determines
that the postage error exceeds 1.5% of the corrected postage.  The total
corrected postage for the entire mailing and a penalty equal to 10% of the
postage error calculation are deducted from the permit imprint advance deposit
account.

d.
An alternate mailing system is not valid and may not be implemented without
a signed AMS agreement.

e.
The agreement must specify the terms and conditions for use of AMS,
including a time limit not to exceed 2 years.

f. Concurrent authorization at Stage I of the System Certification Program

(1) General.
Stage I of System Certification is a comprehensive program for documenting
mailer ability to conform to the requirements of an AMS.

(2) Authorization.
Any mailer approved after October 1, 1990, to mail under an AMS is
automatically certified at Stage I of the System Certification Program.
Mailers who mail under an AMS approved before October 1, 1990, are certified
only if a determination is made that they would qualify if they reapplied
under current regulations.

(3) List of Stage I Certified Mailers.
The Postal Service periodically publishes a list of the names of mailers
certified under 145.9 at Stage I of the System Certification Program.
 Mailers who prefer not to have their company names included on the list must
notify the Postal Service at the time of certification.

145.927 Approving or Denying Authorizations.
The procedures for approving or denying authorizations are as follows:

a. Responsibility.
The general manager, rates and classification center (RCC), serving the
post office where the mailer's request was submitted, approves or denies a
written request for AMS.

b. Approval.
If a decision is made to grant an AMS authorization, the general manager,
RCC, prepares, signs, and forwards the agreement containing instructions for
its administration, to the field division general manager/postmaster, who
ensures that (1) the agreement is signed by the mailer and the administering
postmaster, and (2) all affected parties receive a copy of the signed
agreement.  The division returns the original signed agreement to the RCC
serving the administering post office.

c. Denial.
If a decision is made to deny an authorization, the general manager, RCC,
must notify the mailer, the administering post office, and the field division,
in writing, stating the reason for denial.  The mailer may appeal a denial
within 15 days from the receipt of the notice by the mailer, by filing a
written appeal (containing additional evidence as to why the AMS request
should be approved), with the Director, Office of Classification and Rates
Administration of the Postal Service.  The Director reviews the appeal and
issues the final agency decision.  The Director notifies the mailer, the
administering post office, the field division, and the RCC of the decision.

145.928 Revocation.
The general manager, RCC, may revoke an AMS authorization for any of the
following reasons:

a.
If the mailer has provided incorrect data for mailings and appears unable
or unwilling to correct all problems;

b.
If it is discovered that the mailer is not properly conducting the required
quality control verification procedures;

c.
If the AMS no longer meets the criteria established by this regulation and
those outlined in the agreement;

d.
If there have been no mailings presented under AMS for more than 6 months
(except as provided in the service agreement); or

e.
If the mailer continues to present mailings that are improperly prepared
and/or proper postage is not paid.

145.929 Revocation Procedures.
The following procedures apply to revocation:

a. Notification.
Whenever grounds for revocation set forth in 145.928 exist, the
field division general manager/postmaster must notify the mailer, in writing,
of the nature of the discrepancy and the need for corrective action prior to
any revocation action.  The mailer and the division manager agree on the
actions to be taken and set up an implementation schedule.  The general
manager, RCC, prescribes the time period for corrective action.  When the
mailer completes the necessary corrective measures to bring the system into
compliance, the division manager must be notified and a follow-up review
conducted.  Failure to correct identified problems is sufficient grounds to
revoke a mailer's AMS authorization.

b. Recommendation.
If, after notification, the mailer is unable or unwilling to correct the
discrepancies cited by the division manager within the allotted timeframe, the
division manager must advise the mailer in writing that a recommendation to
revoke the authorization to mail under AMS was forwarded to the general
manager, RCC.

c. Recommendation Review.
The general manager, RCC, reviews the recommendation and supporting
documentation to determine whether revocation is appropriate.  The general
manager makes the initial decision to revoke an AMS authorization.  If the
general manager decides to revoke the AMS authorization, the mailer must be
notified in writing of the reason for the decision, with a copy to the
postmaster and field division.

d. Appeal Rights.
The mailer may appeal this decision in writing within 15 days from the date
of receipt of the notice.  The mailer's appeal should contain evidence
explaining why the AMS authorization should not be revoked.  The appeal must
be filed with the general manager, RCC.  The mailer may continue to present
mail under the AMS pending a decision on appeal.

e.
If evidence provided by the mailer indicates that the authorization should
be continued, the general manager may reverse the decision.

f.
If the general manager does not find sufficient evidence exists to reverse
the revocation, the appeal is forwarded to the Director, Office of
Classification and Rates Administration.  The Director issues the final agency
decision and notifies the mailer, postmaster, the field division, and the RCC.
 The revocation decision is effective 15 days after receipt by the mailer.

145.93 Mailgram Messages

145.931 Contractual Agreement.
By contractual agreement between the United States Postal Service and
Western Union, Mailgram messages are electronically transmitted by Western
Union to a post office post office for processing and delivery to the
addressee.

145.932 Description.
Western Union Mailgram messages are enclosed in window envelopes that bear
in the upper right corner of the address side the Mailgram message imprint
illustrated in 145.42a.  The envelopes also bear on a blue
background the registered trademark "Western Union Mailgram," with the Postal
Service emblem located immediately to the right.

145.933 Payment of Postal Charges.
Postal charges for Western Union Mailgram messages are paid centrally at
USPS Headquarters by Western Union.  Local post offices are not to collect
postage on matter received for delivery in Western Union Mailgram message
envelopes.

146 Prepayment and Postage Due

146.1 Postage Payment

146.11 Prepayment Required.
Postage on all mail must be fully prepaid at the time of mailing, with the
following exceptions:

a.
Business reply mail, or metered reply mail handled as business reply mail
(see 917).

b.
Federal Government and free mail (see 137).

c.
Certain mail for the blind (see 135).

d.
Mail sent by members of the Armed Forces (see 134).

e.
Keys and identification devices returned to owners (see 611.13).

146.12 Mailable Matter Without Postage Found in the Mail

146.121 General.
Matter of any class, including that for which special services are
indicated (see 911.26 for registered mail), received at either the
office of mailing or office of address without postage (see 146.4)
is endorsed "Returned for Postage" and returned to the sender without an
attempt at delivery.  If a recipient of mail attempts to return or forward the
mail without payment of additional postage when required, the mail is endorsed
"Returned for Postage" and returned to the recipient.  If no return address is
shown, or the delivery and return addresses are identical, or the delivery and
return addresses are different but actually for the same person or
organization, the piece is disposed of under 159.4.  For forwarding
and returning mail that does not need additional postage, see the chapters
covering each class of mail and Exhibit 159.151a through
159.151f.

146.122 Metered Reply Mail.
Metered reply mail, which is prepared in accordance with 144.112,
for the mailer's inadvertent failure to imprint a meter stamp on the envelope,
is treated as business reply mail (see 917), and is delivered upon
payment of postage and business reply fee of $0.40 per piece.

146.123 Matter Intended for Nonpostal Delivery.
Mailable matter not bearing postage intended for delivery by a private
delivery company but found in USPS collection boxes or other receptacles
designated for the deposit of mail, USPS facilities, or USPS mail processing
operations, must be handled as follows:

a.
Promptly notify the private delivery company to pick up the matter by the
close of the next workday.

b.
If the company fails to pick up the matter, return it to the sender,
postage-due.  Compute the postage-due amount (see 146.222c) from the
point at which the unpaid matter entered the mailstream to the sender's
location.  If the entry point is unknown, compute the postage due from where
the matter was first found in the mailstream to the sender's location.

c.
If the sender cannot be identified or refuses the matter, follow the
procedures in 159.5.  Do not deliver such matter to the addressee,
or provide address-correction or forwarding service.

146.13 Insufficient Prepayment

146.131 Treatment at Post Office.
Mail of any class, including that for which special services are indicated,
except Express Mail (see 286), registered mail (see
911.26), nonstandard First-Class Mail (see 353.4), and
nonstandard single-piece third-class mail (see 629.234), received at
either the office of mailing or office of address without sufficient postage is

a.
marked to show the total deficiency of postage and fees,

b.
dispatched promptly to the addressee by means of the regular or special
service indicated,

c.
delivered to addressee on payment of the charges marked on the mail.

Note: When quantity mailings of 10 or more pieces are received at the
office of mailing without sufficient postage, the mailer is notified, without
charge, preferably by telephone, in order that the postage charges may be
adjusted before the mail is dispatched.

146.132 Undeliverable and Refused Pieces.
When the addressee refuses to pay the deficient postage, or when the mail
is undeliverable for any other reason, it is handled as follows:

a.
First-Class Mail bearing a return address is returned to the sender with
the reason for nondelivery, "Returned for Additional Postage." The sender may
affix the additional postage due, line through the reason for nondelivery, and
remail the piece.

b.
Mail other than First-Class bearing a return address is returned to the
sender and delivered on payment by the sender of the total of the deficient
postage, the forwarding postage, if any, and the return postage.

c.
All mail which does not bear a return address is disposed of in accordance
with 159.

146.133 Shortpaid Express Mail.
The methods for handling insufficiently prepaid and/or undeliverable
Express Mail shipments are covered in 273.42.  Express Mail
shipments are never endorsed "Postage Due" and collection of deficient postage
is never attempted from the addressee.

146.14 Postage on Mail Insufficiently Prepaid.
Postage stamps affixed to mail are canceled when the mail is first received
in the post office.  Postage stamps or meter stamps originally affixed to
insufficiently prepaid mail are, when the mail is again presented for mailing,
accepted in payment of postage to the amount of their face value.

146.15 Parcels Containing Written Matter.
At the office of address, parcels subject to postage due are handled as
follows:

a.
Postage due at the First-Class rate is charged on parcels consisting mainly
of First-Class matter.

b.
Postage due is charged at the following rates for parcels in which a minor
portion of the contents is nonpermissible written matter:




Difference Between
First-Class Rate and Rate PaidPostage-Due Charge


$0.01-$0.25Full amount
0.26-1.00$0.25
1.01 or more1.00



146.2 Mailable Matter Not Bearing Postage Found in or on Private Mail
Receptacles

146.21 Penalty.
Whoever knowingly and willfully deposits any mailable matter such as
statements of account, circulars, sale bills, or other like matter, on which
no postage has been paid, in any letterbox established, approved, or accepted
by the Postmaster General for the receipt or delivery of mail matter on any
route with intent to avoid payment of lawful postage thereon, shall for each
such offense be fined not more than $300.

146.22 Collection of Postage

146.221 General.
Except as permitted in 156.58, any mailable matter not bearing
postage found in, upon, attached to, supported by, or hung from the private
mail receptacles described in 151.1, is subject to the payment of
the same postage as would be paid if carried by mail.  For mailable matter not
bearing postage found in the mail, see 146.12.

146.222 Distribution to Less Than Complete Route.
When there is a distribution of pieces to some, but not all, addresses on a
route, they are handled as follows:

a.
Each piece is taken to the delivery unit.

b.
The date and approximate time of finding are recorded on the piece.  If the
address where the piece is found is different from the address, if any, on the
label, the address where found is recorded, as well as the approximate time
and date.

c.
Postage on each piece found is computed as follows:

(1) First-Class Matter.
First-Class rates are applied to matter which would require First-Class
postage if mailed.

(2) Second-Class Publications, Books, Records, Circulars, Catalogs, and
Merchandise.
If the piece weighs less than 16 ounces, either the single-piece
third-class rate or the applicable fourth-class rate, whichever is lower, is
applied (see 611.12).  If the piece weighs 16 ounces or more, the
applicable fourth-class rate is applied.

146.223 Distribution to All or Substantially All Addresses on a Route.
If there is a distribution of identical pieces to all or substantially all
addresses on a route, only two copies, each dated, initialed, and marked with
the address where found, are taken to the office, along with a written
notation of the total number of identical pieces observed on the route.  The
postmaster must prepare a memorandum showing the details to support the claim
of postage, computed in accordance with 146.222c.

146.224 Request for Payment

a.
If there is reason to believe that a private delivery firm or an individual
within the delivery area of the post office is responsible for the delivery,
the local postmaster must notify the firm or individual as promptly as
possible concerning the number of pieces and the amount of postage due.  The
applicable provisions of this manual are explained. If the firm or individual
receiving a request for postage objects that these regulations have not been
applied properly in the particular case, the facts are investigated before any
action is taken.  If, within 5 days after receiving a request for the postage,
or within 5 days after receiving a renewed request following investigation of
an objection, the firm or individual agrees to pay the postage due, payment is
accepted and the articles are delivered to the addressees.  The firm or
individual paying the postage may choose to redeliver the pieces rather than
have the Postal Service deliver them.  Receipt for payment is handled in
accordance with 146.224c.  If the pieces are found to have been
removed improperly, they are delivered without postage charge.

b.
If the firm or individual responsible for delivery is not known or if the
firm presented with a request fails to pay the postage, the pieces are
returned as promptly as possible to the publisher or manufacturer,
postage-due, with each piece endorsed to show that the articles were found in
or on the addressee's mailbox without postage.  If a publisher or manufacturer
provides the name and telephone number of a person to contact about pieces
found in mailboxes and orally or in writing guarantees payment of postage, the
pieces are not returned but are redelivered promptly to the addressees.  If
the pieces are refused by the publisher or manufacturer or if the publisher or
manufacturer is unknown, the procedures in 159.5 must be followed.

c.
If the firm or individual pays the postage with cash, check, or money
order, a postage-due meter strip for the amount collected is affixed to a
sheet of paper as a receipt.  If payment is by uncanceled stamps or postage
meter strips, the stamps or meter strips are affixed to a sheet, canceled, and
returned as a receipt.  No other receipt is issued.

146.23 Report to Another Office.
If the person or firm or distributor responsible for the impermissible use
of the private mail receptacles is located within an area served by another
post office, a sample piece is sent with a report of the facts to the
postmaster at that location with a request for action under 146.22.

146.24 Repeated Violations.
If the person or firm or distributor responsible for the impermissible use
of the private mail receptacles continues the impermissible use after having
been notified that the use is impermissible, the postmaster submits a sample
piece and a report of the facts (see 146.22) to the postal
inspector-in-charge.

146.3 Collection of Postage Due

146.31 Collected on Delivery.
Customers must pay for postage-due mail, in cash only, prior to delivery to
them.  However, postage on quantity mailings found in private mailboxes is
collected as provided in 146.22.

146.32 Use of Postage Stamps, Permit Imprints, or Customer Meter Strips.
Postage stamps, permit imprints, and customer meter strips may not be used
for payment of postage due, except by Government agencies as provided in
137.265b.

146.33 Advance Deposit.
If postage-due collections amount to approximately $10 or more every 60
days, payment may be made by advance deposits of money.

146.4 When Not Collected.
When it is apparent from the impression of a cancellation that a postage
stamp or stamps have been wholly or partially lost, the piece must be handled,
in the absence of contrary evidence, as if correct postage had been paid for
the class and weight of the piece.  Handle registered mail requiring
additional postage in accordance with 911.26.

147 Exchanges and Refunds

147.1 Exchanges of Stamps

147.11 Unserviceable Stamps

147.111 Post Office Mistake.
Mistakes in selling damaged, defective, or otherwise unserviceable stamps
may be corrected by the post office by exchanging stamps at full value.

147.112 Damaged in Customer's Possession.
Stamps which are damaged or otherwise become unusable for postage because
of humidity, moisture, or other causes while in a customer's possession may be
exchanged at full value only for an equal number of stamps of the same
denomination.  Unserviceable stamps accepted from customers under these
conditions must be those which have been on sale at post offices within 12
months preceding the transaction.  Quantities of the same denomination in
excess of $10 must be returned in the same configuration as when purchased;
i.e., sheets, coils, booklets.  Each such transaction is further limited to
stamps with a total value of $100 or less from each customer.

147.113 Determining Quantities.
The stamps presented for exchange must be in substantially whole condition,
with the denomination evident.  If customers return partially stuck-together
coils of stamps and the stamps cannot be counted, postmasters may accept the
customer's estimate of the number of stamps remaining in the coil and give
equal quantities in exchange.

147.114 Appeal.
Customers denied an exchange for damaged stamps may appeal the postmaster's
decision to the Consumer Advocate, U.S. Postal Service (for address, see
Address List in Appendices).

147.12 Purchaser's Mistake.
Mistakes made by purchaser in buying adhesive stamps of the wrong
denomination or stamped envelopes or postal cards of the wrong kind, size, or
denomination may be corrected by exchanging stamps at full value.  Only full
panes of stamps, coils of stamps in the original sealed wrappers, full boxes
of stamped envelopes, or original sealed packs of postal cards may be
exchanged.  Any customer exchanging $250 or more of such stock must furnish
proof of identity (driver's license, military I.D., or other valid
identification) and must present the stock for exchange to the postal unit at
which his or her mail is delivered.  This procedure allows the clerk
exchanging the stock to validate the customer's address.  A record of each
transaction of $250 or more must be made, showing name of customer, type of
I.D., business firm, address, amount, and denominations exchanged.  Any
suspicious circumstances should be reported immediately to the local postal
inspector or inspector-in-charge.

147.13 Unserviceable Postal Stationery and Unused Precanceled Stamps.
Unserviceable and spoiled stamped envelopes or postal cards, if uncanceled,
and unused precanceled stamps and postal cards, are exchanged for other
postage-stamped paper as follows:

a.
Stamped envelopes (mutilated no more than is necessary to remove contents),
for postage value plus value of postage added as a result of rate increase or
for additional service.

b.
Unmutilated aerogrammes (air-letter sheets), for postage value, less $0.01
for each aerogramme redeemed.

c.
Unmutilated single and double postal cards, for 85% of postage value, plus
full value of postage added as a result of rate increase or for additional
service.

(1)
Either half of a double postal card may be redeemed, if the double card has
been printed and cut for use as single cards.

(2)
Unused double postal cards printed for reply purposes should not be
separated; however, if they have been separated in error and the purchaser
presents both halves, the cards may be redeemed.

(3)
Reply halves of double postal cards which have been returned to sender
outside of the mail are not redeemable by the original purchaser, even though
the reply half received no postal service.

d.
Sheet postal cards spoiled in the process of cutting to size, for 85% of
postage value plus full value of postage added as a result of rate increase or
for additional service, if all cut sections are submitted.

e.
Stamps affixed to commercial envelopes and postcards, for 90% of postage
value.  Envelopes and postcards must be in a substantially whole condition and
in lots of at least 50 of the same denomination and value.

f.
Unused precanceled stamps in full coils and in full sheets redeemed from
precanceled permit holders, for 90% of postage value.

Note: Stamped envelopes or aerogrammes (air-letter sheets) with a
printed return address and postal cards with any printed matter of the
purchaser, may be exchanged only by the purchaser.  If there is no purchaser's
printing, they may be exchanged by any responsible person.  When redemption
cannot be made at time of presentation, the postmaster must furnish a receipt
on Form 3210 for uncanceled, unserviceable, or spoiled envelopes or postal
cards or for unused precanceled stamps left in his or her custody.

147.14 Conversion of Postage Stamps to Other Forms of Postage

147.141 General.
Mailers may submit postage stamps for conversion to a meter-setting or
advance deposit for permit imprint mailings under the conditions in
147.142 through 147.146.  A conversion charge of 10% of the
face value of the stamps or $250, whichever is greater, is deducted when the
stamps are converted.  No part of any amount applied to a meter-setting or
trust account from the conversion of postage stamps is later refundable in
cash or by any other means.

147.142 Where to Apply.
All requests to convert postage stamps to meter or permit imprint postage
must be sent to the general manager, Stamp Manufacturing Division, USPS
Headquarters.  The general manager forwards a copy of the request to the
postal inspector-in-charge of the division where the requestor's post office
is located.

147.143 What May Be Converted.
Only full panes of stamps, or coils of stamps in the original sealed
wrappers, are accepted for conversion.  Commemorative stamps issued no earlier
than 1 year prior to the date of the request for conversion or issues of
regular stamps which have not been officially withdrawn from sale at the
Philatelic Sales Division are accepted under these conditions.

147.144 Conversion Rate.
The amount of postage applied to a meter-setting or permit imprint trust
account through conversion is the lesser of the full face value of the stamps
submitted, minus 10%, or full face value minus $250.

147.145 Submittal of Request.
The customer must submit a letter to the General Manager, Stamp
Manufacturing Division, requesting conversion of the stamps to meter or permit
imprint postage.  The letter must include the name, denomination, quantity,
and value of postage stamps for which conversion is requested, and name of
post office where the stamps were purchased.  Evidence of purchase for the
stamps must also be included with the request.

147.146 Approval.
The general manager, Stamp Manufacturing Division, reviews the request and
may ask the mailer to submit additional records to support the information in
the request.  The general manager approves or denies the request.  If the
conversion is authorized, the postmaster is advised of the proper procedures
for accepting the postage stamps and making the required accounting entries.
The general manager determines the post office which has the capabilities to
destroy the postage stamps.  The credit is applied to the post office where
the mailer has his or her meter set or deposits permit imprint mail.

147.15 Nonexchangeable.
The following are nonexchangeable:

a.
Adhesive stamps, unless mistakes were made in purchasing, stamps were
defective, stamps were affixed to commercial envelopes and postcards, or as
provided in 147.14.

b.
Stamps cut from postal cards, stamped envelopes, or aerogrammes (air-letter
sheets).

c.
Parts and pieces of postal cards.

d.
Postal cards, stamped envelopes, and aerogrammes received for reply
purposes.

e.
Mutilated and defaced stamps.

147.2 Refunds of Postage and Fees

147.21 General

147.211
When postage and special or retail service fees have been paid and no
service has been rendered, or when the amount collected was in excess of the
lawful rate, a refund may be made under the conditions set forth in this
section and under the following procedures:

a.
Requests for refunds submitted at a time other than the time of mailing
(including requests for refunds for postage and fees paid by stamps, permit
imprints, or meter impressions, requests for refunds of unused meter
impressions and unused units set in meters, and requests for refunds for
retail services and fees not paid by means of stamps, permit imprints, or
meter impressions) are handled in accordance with 147.3.

b.
Requests for refunds of postage made at the time of mailing are handled in
accordance with 147.4.

147.212
The Postal Service is assumed to be at fault and no service is rendered in
cases involving returned articles improperly accepted in both domestic and
international services because of excess size or weight.

147.213
Mailers who customarily weigh and rate their mail are expected to be
familiar with basic requirements, and the Postal Service is not considered to
be at fault when these mailers are required to withdraw articles from the mail
prior to dispatch.

147.214
See 147.222 and 147.31 for special provisions for
refunding the postage value of unused meter stamps.

147.215
A postage refund may be provided the sender for First-Class, third-class
single-piece, and fourth-class mail torn or defaced during processing by the
Postal Service to such extent that identification of addressee or intended
delivery point cannot be made.  This applies only when the failure to process
and/or deliver is the fault of the Postal Service.  Where possible, the
damaged item is returned with the postage refund.

147.216
Postmasters grant or deny requests for refunds in accordance with
147.2.  Guidance is available from the RCC in difficult cases.

147.22 Amount Allowable

147.221
A full refund (i.e., 100%) is made under the following conditions:

a.
When the Postal Service is at fault.

b.
For the excess when postage or fees have been paid in excess of the lawful
rate.

c.
When service to the country of destination has been suspended.

d.
When postage is fire-scarred while in the custody of the Postal Service,
including fire in a letterbox, and the mail is returned to sender without
service.

e.
When special delivery stamps are erroneously used in payment of postage,
and the mail is returned to the sender without service.

f.
When fees are paid for special delivery, special handling, and certified
mail and the article fails to receive the special service for which the fee
has been paid.

g.
When surcharges are erroneously collected on domestic registered mail or
collected in excess of the proper amount, or represented by stamps affixed to
matter not actually accepted for registration.

h.
For fees paid for return receipts or for restricted delivery when the
failure to furnish the return receipt or its equivalent, or erroneous
delivery, or nondelivery is due to the fault or negligence of the Postal
Service.

i.
For annual bulk mailing fee when no bulk mailings of third-class matter are
made during the year for which the annual fee has been paid.

j.
When Customs clearance and delivery fees are erroneously collected.

k.
When fees are paid for registry or insurance service on mail addressed to a
country to which such services are not available, unless claim for indemnity
is made.

l.
When Express Mail is not delivered according to the terms of the service
standard in 222.2, 223.3, 224.4, and
230.

147.222
A partial refund is made under the following conditions:

a.
When complete and legible unused meter stamps are submitted within 1 year
from the dates appearing in the stamps (see 147.31).

b.
When the face value of the stamps does not exceed $250, refunds of 90% are
made.

c.
When the face value of the stamps exceeds $250, refunds are made for the
face value of the stamps, less $10 per hour for the actual hours required to
process the refund, with a minimum charge of $25 deducted from the amount of
the refund.

d.
The employee processing the refund must enter the following endorsement on
the reverse of Form 3533:  "I certify that (number) hours were required to
process this refund."  The certifying employee and a witnessing employee must
both sign this certification.

147.223
When mail is returned at the request of the sender or for a reason not the
fault of the Postal Service, any difference between the amount paid and the
appropriate surface rate chargeable from mailing office to interception point
and return is refunded.

147.23 Unallowable Refunds.
No refund is made in the following instances:

a.
For an application fee to use permit imprints,

b.
For registered, insured, and COD fees after the mail has been accepted by
the post office, even though it is later withdrawn from the mailing post
office,

c.
For unused adhesive stamps, see 147.11 and 147.12, or

d.
For adhesive stamps affixed to unmailed matter.

147.24 Application for Postage Refund

147.241
Customers who wish to request a refund must submit an application on Form
3533 to the postmaster, together with the envelope or wrapper or the portion
thereof having names and addresses of sender and addressee, canceled postage
and postal markings, or other evidence of payment of the amount of postage and
fees for which a refund is desired.  An adverse decision by the postmaster may
be appealed through the postmaster to the appropriate general manager, rates
and classification center (RCC).

147.242
Requests for refunds for optional-procedure mailings must be submitted to
the general manager, RCC.

147.3  Requests for Refunds for Payment of Excess Postage Not Submitted at
the Time of Mailing

147.31 Meters and Meter Stamps

147.311 Postage Adjustments.
The postage value of unused units set in a meter surrendered to the post
office to be checked out of service may be refunded or, if desired, an
equivalent amount is transferred to another meter used by the same license
holder.  If the meter is withdrawn from service because of faulty mechanical
operation, a final postage adjustment or refund may be withheld pending report
of the meter manufacturer of the cause of faulty operation. If the meter is
damaged by fire, a refund or transfer of postage is made only if the registers
are legible, or can be reconstructed by the meter manufacturer.

147.312 What to Submit

a.
Unused meter stamps are considered for refund, only if

(1)
the meter stamps are complete and legible;

(2)
they are on the portion of the envelope or wrapper bearing the name and
address of the addressee, including the window on a window envelope;

(3)
they are accompanied by an application on Form 3533; and

(4)
they are submitted for refund within 1 year of the dates appearing in the
stamps.

b.
If a portion of the stamp is printed on one envelope or card and the
remaining portion on another, the two must be fastened together to show that
the two portions represent one stamp.

c.
Meter stamps printed on labels or tapes which have not been stuck to
wrappers or envelopes must be submitted loose.

d.
Refunds are allowable for stamps on metered reply envelopes only when it is
obvious that an incorrect amount of postage was printed thereon.

e.
Submit separately, with statement of facts, envelopes or address portions
of wrappers on mail returned to sender from the mailing office, marked "No
such post office in state named, returned for better address" or "Received
without contents," indicating no effort was made to deliver.

147.313 What Not to Submit

a.
Meter reply envelopes or cards paid at the proper rate of postage.

b.
Meter stamps printed on labels or tape which have been removed from
wrappers or envelopes.

c.
Meter stamps without the name of the post office and state.

d.
Meter stamps without the date printed on tape (see 144.47).

e.
Meter stamps printed on mail which was dispatched from the mailing post
office in regular course and returned to sender as undeliverable, including
mail marked "No such post office in state named."

f.
Meter stamps on mail addressed for local delivery and returned to sender
after directory service was given or effort was made to deliver.

147.32 Processing Refund Applications for Postage and Fees Paid by Postage
Stamps, Meter Impressions, Permit Imprints, or Rejected Personalized Envelopes

147.321
At offices with 950 or more revenue units, the accepting employee does the
following:

a.
Reviews the application and supporting papers.

b.
If a refund is due, completes the "Verification of Refund" on Form 3533.

c.
Pays the applicant in cash, except for meter stamps, from official funds on
hand, if practicable to do so and if the refund is made in person.  For all
refunds for meter stamps greater than $10, use a no-fee money order or a
Treasury check payable to the registered license holder of the meter serial
number from which postage is being refunded.  Refunds for meter stamps for $10
or less may be made in cash.

d.
Has the payee sign the receipt on Form 3533.

e.
If requested, or if refund is to be mailed, by a Treasury check, or, if
less than $700, by no-fee money order in accordance with Handbook F-1, 720,
records the check or money order number on the receipt portion of Form 3533
instead of obtaining the payee's signature.  When the amount of the refund is
less than $2, a check or money order is not issued unless the payee or his or
her representative is physically unable to come to the post office.

f.
Retains the receipted copy of Form 3533 in the files to support the office
copy of the statement of account.

g.
Destroys envelopes, wrappers, or other evidence submitted with the
application, as provided in 147.332a(4).

h.
If the application is not approved, returns it to the applicant with the
supporting papers and a written explanation.

i.
Enters the amount refunded in AIC 536(D), Postage and Fees Refund,
as specified in Handbook F-1.

147.322
At other offices, the accepting employee does following:

a.
Handles the application in accordance with 147.321.

b.
If no witness is available for signature in Part II, "Verification of
Refund," Form 3533, has the payee sign in the appropriate space.

c.
Records the refund as a write-in entry on a blank line in the disbursements
section of the cashbook, and show AIC 536(d), Postage and Fees Refund,
for the number and title of the account, as specified in Handbook F-1.

d.
If the amount to be paid is greater than the $700 limit for money orders,
and the processing post office does not issue Treasury checks, sends Form 3533
with all supporting papers and a statement certifying the claim to the
management sectional center (MSC).

e.
Ensures that the MSC processes the application as specified in
147.321 and issues the Treasury check.  If the application is
disapproved, returns the complete file to the postmaster at the office of
application with a written explanation. The application office forwards the
explanation to the applicant.

147.33 Processing Refund Applications for Metered Postage

147.331 For Meters Checked Out of Service

a. Verification at All Offices.
The accepting employee does the following:

(1)
Verifies the amount by examining meter registers.

(2)
Fills out Part V, Form 3533, if a refund is due.

(3)
If the manufacturer's meter checkout form has all the required
documentation, uses it instead of Form 3533.

(4)
Refunds the full value of the unused postage in accordance with
147.331b(1) or 147.331b(2).

b. Refund

(1)
At offices with 950 or more revenue units, the employee handles the refund
of metered postage in accordance with 147.321.

(2)
At other offices, the employee handles a refund of metered postage in the
manner prescribed in 147.322.

147.332 For Unused Meter Stamps

a.
At offices with 950 or more revenue units, the employee does the following:

(1)
Reviews the application and examines the meter stamps submitted.

(2)
Handles the refund as outlined in 147.321.  Provides a partial
refund as specified in 147.222.

(3)
When the customer requests a receipt and verification cannot be made at the
time of presentation, furnishes a receipt on Form 3210 appropriately amended.

(4)
The postmaster must designate an employee, other than the certifying and
witnessing employees completing Part II of Form 3533, to destroy the stamps
for which refund has been approved.  After destruction, the employee must
certify Part VI of Form 3533.  The certifying and witnessing employee must
observe the actual destruction of the meter stamps.

b. At other offices, the employee does the following:

(1)
Verifies the amount claimed.

(2)
If the refund is due, certifies the correctness of the amount on Part II,
Form 3533, or on a separate attached sheet.

(3)
Handles a refund for unused meter stamps in accordance with
147.322. Provides a partial refund as specified in 147.222.

(4)
Sends unused meter stamps with Form 3533 when the application for refund is
sent to the MSC for payment.

(5)
For refunds paid at the employee's office, sends the redeemed stamps to the
MSC for destruction on the schedule established by the MSC manager.  Prepares
meter stamps for shipment in the same manner as other nonsalable stamp stock,
but marks the envelopes "Metered Postage" instead of "Nonsalable Stock."

(6)
Does not prepare a destruction certificate for meter stamps sent to the MSC
for meter stamp refunds paid at your office.  Sends the receipted Form 3533
and a transmittal memorandum along with the meter stamps.  Keeps a copy of the
transmittal memorandum in your files.

(7)
The MSC destroys the meter stamps and certify the destruction on Form 3533
in the manner prescribed in 147.332a(4), except that it does not
make or account for any refund.  After the destruction has been certified, the
completed Form 3533 is returned to the originating postmaster, who keeps it
with other supporting documents.

147.333 Evidence of Unused Meter Stamps at Office of Meter Setting.
Instead of submitting bulky evidence of unused meter stamps, postmasters at
the office of meter setting may certify the amount and destruction of these
stamps in Part IV of Form 3533 and forward the application to the post office
where the meter is licensed.

147.334 Computing Fraction of a Cent.
In computing the amount to be refunded for unused meter stamps, resolve a
fraction of a cent in favor of the Postal Service.  For example, if 90% of the
postage value of impression is $4.187, the amount refunded is $4.18.

147.34 Refund Application for Retail Services.
Application for refund of fees collected for retail services must be
initiated by the customer on Form 3533.  Applications are processed as follows:

a.
The application and any supporting papers are reviewed by an authorized
postal employee.  If a refund is due, the postal employee completes and
witnesses the approval portion of Form 3533.  Form 3533 is returned to the
customer for submission to the window services section for payment.

b.
The refund is issued as follows:

(1)
The window services employee pays the applicant in cash from official funds
on hand, if practicable and the refund is made in person.  The payee must sign
the receipt portion of Form 3533 for a cash refund.

(2)
If requested, or if the refund is to be mailed, payment is made by Treasury
check; or, if $700 or less, by a no-fee money order.  The check or money order
number is recorded on the receipt portion of Form 3533 instead of obtaining
the payee's signature.  When the amount is less than $5, the refund is made by
cash payment in accordance with 147.34b(1) unless the payee or his or
her representative is physically unable to come to the post office, in which
case a no-fee money order may be issued.

c.
If the application is not approved, it is returned to the applicant with
the supporting papers and an explanatory statement.

d.
When the amount due the Postal Service because of faulty postage meter
mechanical operation is less than $1, it is not collected.  When the amount
due the customer is less than $1, it is refunded only on request.

147.35 Rejected Personalized Envelopes

147.351 Refunds.
Conditions for refunds for rejected personalized envelopes are in
141.29.  Refunds for postage value only may be made at post offices.
 Those refunds are processed in accordance with 147.24 and
147.31.

147.352 Disposition of Redeemed Personalized Envelopes.
Envelopes for which a refund has been made must be destroyed in the same
manner as unused meter stamps under 147.332a(4).

147.4  Requests for Refunds for Payment of Excess Postage Submitted at the
Time of Mailing

147.41  General.
A mailer who has applied postage in excess of the lawful rate of postage
applicable to the mail at the time it is deposited with the Postal Service may
apply for a refund of the excess postage at the time that the mail is
presented to the Postal Service for acceptance.  An application for a refund
on Form 3533 and all supporting evidence necessary to show that the postage
applied to the mailing is in excess of the lawful rate applicable to the mail,
must be submitted with the mailing at the time the mailing is deposited.
Postal Service acceptance personnel must review the application and the
mailing to determine if sufficient evidence has been submitted to support the
refund request.  Specific procedures governing the submission of certain
refund requests by persons other than the mailer who applied the postage to
the mail are set forth in 147.42 and 147.43.

147.42  Requests for Value Added Refunds

147.421  General.
This section sets forth the procedures applicable to the submission of
certain requests for refunds by a business entity, such as a presort service
bureau, which prepares mail for a number of customers and presents the mail to
the Postal Service in their behalf.  For purposes of this section, this
business entity is identified as the "presenter" of the mail.  This section
applies to refund requests submitted to the Postal Service by the presenter at
the time of entry of mail which

a.
is First-Class letter-size mail,

b.
weighs up to and including 3 ounces,

c.
has been metered or precancel-stamped by the customer at the Presorted
First-Class, ZIP+4 Presort First-Class, or 3-digit ZIP+4 Barcoded rate, and

d.
has had "value added" by being ZIP+4 barcoded by the presenter.

Any refund is issued to the presenter, not to the owner of the mail who
applied the postage.  The disposition of any such refund is a matter of
private contractual agreement between the customer and the presenter.  In
order to request a refund under this procedure, the presenter must be
authorized by the Postal Service.

147.422  Authorization to Submit Requests

a.  Application
A presenter must apply in writing to the general manager, rates and
classification center (RCC), serving the presenter's production facility for
an authorization to submit value added refund requests.  The application must
describe the presenter's mail preparation system and the documentation it can
produce.  A copy of the letter must be sent to the field division general
manager/postmaster of each post office where mailings are to be deposited.
The postmaster reviews the letter and then makes a recommendation to the
general manager, RCC.  The procedures in this section may not be used or
implemented before the general manager, RCC, has approved the application.

b.  Conditions of Participation

(1)  Automation.
The presenter must process and document mail through a fully automated mail
sorting system, which includes the following equipment:

(a)
An optical character reader (OCR) that reads the numeric ZIP+4 code printed
on the address line of the envelope or, with a multiline OCR, reads the
address and checks it against the National Directory File in order to make a
conversion to ZIP+4 barcodes.

(b)
An ink jet or laser printer that applies the 9-digit POSTNET barcode in the
required location.

(c)
A barcode reader (BCR), which reads the POSTNET barcode, verifies it for
accuracy, and sends the mailpiece to an assigned bin location for presort
purposes.

(2)  Presenter Requirements.
The presenter must demonstrate the ability to produce the mailing
statements and refund documentation required by 147.426 and
147.427.

(3)  Refund Adjustments.
The presenter agrees that verification samples taken by the Postal Service
are deemed to be representative of the entire mailing and are to be used to
adjust the total refund amount requested.

(4)  System Modification.
The presenter agrees to provide advance written notice to the Postal
Service of any plans to modify or adjust its system that affect the
calculation of postage, amount of refund, generation of required
documentation, or mail presorting prior to the preparing and presenting of the
mail for acceptance.

(5)  Mailer Cooperation.
The presenter agrees to cooperate with the Postal Service when mailings are
being verified or audits are being performed.  This includes the processing of
sampled mail through barcode readers when requested to do so.

c.  Granting or Denying an Authorization.

(1)
The general manager, RCC, reviews the postmaster's letter and any
supporting materials and determine if the presenter meets the above conditions
to participate.

(2)
If the application is denied, the general manager, RCC, must notify the
presenter of this decision in writing, giving the reasons for the denial.  A
denial may be appealed within 15 days in writing to the general manager, RCC.
The appeal must contain specific information explaining why the presenter
believes it should be authorized to submit value added refund requests.  If
the general manager does not find that the presenter is qualified, the appeal
is forwarded to the Director, Office of Classification and Rates
Administration, USPS Headquarters, for review.  The Director issues the final
agency decision and notifies the presenter, the field division, and the RCC of
the decision.

(3)
If the general manager, RCC, finds that the presenter is qualified, the
presenter must be notified in writing of the decision.

d.  Renewal of Authorization.
Authorizations to submit refund requests under 147.42 are granted
for a period not to exceed 1 year.  Authorizations may be extended following a
review conducted prior to the expiration date by the general manager, RCC, or
designee, if it is determined that the presenter continues to meet the
applicable requirements.

e.  Suspension of Authorization.
An authorization may be suspended by the general manager, RCC, if it is
determined that the mailer is not preparing mail in a manner consistent with
the requirements of this section.

f.  Cancellation of Authorization.
An authorization may be canceled by the general manager, RCC, under any of
the following conditions:

(1)
If the presenter has consistently provided incorrect information and is
unwilling or unable to correct the problem;

(2)
If the presenter continually fails to meet the requirements of this
section; or

(3)
When no mailings have been made under these procedures during any 6
consecutive months.

g.  Cancellation and Suspension Procedures.
If a decision is made to cancel or suspend an authorization, the general
manager, RCC, must notify the presenter in writing of the decision.  The
action becomes effective 15 days from receipt of the notification, unless the
presenter files a written appeal with the general manager, RCC.  The appeal
must contain additional information as to why the authorization should not be
canceled or suspended.  If a decision is made to continue the authorization,
the general manager, RCC, must notify the mailer in writing of the decision.
If the general manager finds that there is insufficient evidence to support
the appeal and a decision is made to deny the appeal, the appeal is forwarded
to the Director, Office of Classification and Rates Administration, USPS
Headquarters.  The Director issues the final agency decision and notifies the
presenter, the administering post offices, the field division, and the RCC of
the decision.  A cancellation decision is effective 15 days after receipt by
the mailer.

147.423  Customer Agreement.
The presenter must submit to the Postal Service an original Form 8096
completed and signed by each of its customers whose mail is included in a
mailing for which a value added refund is requested.  This form constitutes a
written request to the Postal Service to accept value added refund requests
submitted in behalf of the customer by the presenter.  The presenter must
provide the entry post office with an original of each completed Form 8096 for
each customer, along with an accurate list of these customers.  Refund
requests are denied if all the required Forms 8096 have not been provided.

147.424  Application for Refunds.
Requests for value added refunds are processed upon submission of a Form
3533.  A Form 3533, together with the supporting documentation required by
147.427, must be submitted with each mailing at the time of mailing.
 Refund applications submitted after the time of mailing are not considered.
Although eligibility for a refund is determined and verified for each mailing,
checks or money orders used to pay refunds are issued by the entry point
postmaster on a weekly basis or on another schedule mutually agreed to by the
postmaster and the mailer.

147.425  Preparation of the Mailing

a.
The presenter is required to maintain the mail of each customer in such a
manner that the characteristics of the mailing may be documented during the
presenter's primary processing operation.  The presenter must separate its
customer's mail by postage payment method (metered or precancel stamped), by
weight increment (1, 2, and 3 ounces), and by rate category (Presorted
First-Class, ZIP+4 Presort, or 3-digit ZIP+4 Barcoded rate).  Refund requests
for mailings that are not prepared in this manner are not to be approved.

b.
Metered mail must be deposited at the licensing post office unless
otherwise authorized under 144.8.

c.
Mailers must sleeve, band, and air contract transportation (ACT) tag all
trays, as applicable.

d.
Mail must be prepared according to the provisions of 325,
364, and 366.

147.426  Mailing Statements.
The presenter must provide complete and accurate mailing statements at the
time of mailing, one for the portion of the mailing paid by meter stamps, and
a separate one for the portion paid by precanceled stamps.  Each mailing
statement must show the total weight of the pieces for the method of payment,
the number of qualifying pieces and computed postage at each presort level
(after the mailing has been ZIP+4 barcoded), and the total postage.  All
postage figures shown on mailing statements must be computed based on the rate
category for which each piece qualifies when presented to the Postal Service.
Separate mailing statements must be prepared for mail entered under the
provisions of 366.

147.427  Mailer Documentation.
The presenter must provide sufficient documentation to the Postal Service
to support the value added refund request and to enable the Postal Service to
verify the refund request in an efficient and cost-effective manner.  The
following reports must be submitted at the time of mailing with each Form 3533.

a.
Customer Mail Report documents all customer mail received by the presenter.
 At the top of the report, show this administrative information: name of
presenter, date of report, and entry post office.  Then, list by individual
customer the following:

(1)
Name of customer.

(2)
Mailer job number, if applicable.

(3)
For metered postage:

(a)
Number of 1-ounce pieces at Presorted First-Class rate.

(b)
Number of 2-ounce pieces at Presorted First-Class rate.

(c)
Number of 1-ounce pieces at ZIP+4 Presort rate.

(d)
Number of 2-ounce pieces at ZIP+4 Presort rate.

(e)
Total metered pieces.

(f)
Total metered postage.

(4)
For precancel stamped postage:

(a)
Number of 1-ounce pieces at Presorted First-Class rate.

(b)
Number of 2-ounce pieces at Presorted First-Class rate.

(c)
Number of 1-ounce pieces at ZIP+4 Presort rate.

(d)
Number of 2-ounce pieces at ZIP+4 Presort rate.

(e)
Total precancel stamped pieces.

(f)
Total precancel stamped postage.

(g)
Total pieces.

(h)
Total postage.

(i)
Cumulative postage (running total for all mailers).

(5)
Grand totals for all customers, items (3) and (4), above.

b.
Sortation/Qualification Report identifies the number of pieces qualifying
for each rate by presort level by ZIP Code.  Separate reports must be prepared
for mail entered under the provisions of 366.

(1)  First-Class ZIP + 4 Barcoded Rate Mailing.
At the top of the report, show this administrative information: name of
presenter, date of report, and entry post office.

(2)  Five-Digit Portion.
List by 5-digit ZIP Code the following:

(a)
ZIP+4 barcoded rate pieces (ZIP+4 Barcoded).

(b)
ZIP+4 Presort rate pieces (nonbarcoded or 5-digit barcoded).

(c)
Presorted First-Class rate pieces (nonbarcoded or 5-digit barcoded).

(d)
Cumulative total for each ZIP Code.

(e)
Total each column.

(3)  Three-Digit Portion.
List by 3-digit ZIP Code the following:

(a)
ZIP+4 Presort rate pieces (ZIP+4 barcoded).

(b)
ZIP+4 Presort rate pieces (nonbarcoded or 5-digit barcoded).

(c)
Presorted First-Class rate pieces (nonbarcoded or 5-digit barcoded).

(d)
Cumulative total for each ZIP Code.

(e)
Total each column.

(4)  Residual Portion.
List by 3-digit ZIP Code the following:

(a)
Nonpresorted ZIP+4 rate pieces (ZIP+4 barcoded).

(b)
Nonpresorted ZIP+4 rate pieces (nonbarcoded or 5-digit barcoded).

(c)
Single-piece rate pieces (nonbarcoded or 5-digit barcoded).

(d)
Cumulative total for each ZIP Code.

(e)
Total each column.

(5)  Summary.
Give totals for the following:

(a)
ZIP+4 Barcoded rate pieces.

(b)
ZIP+4 Presort rate pieces.

(c)
Presorted First-Class rate pieces.

(d)
Nonpresorted ZIP+4 rate pieces.

(e)
Single-piece rate pieces.

(f)
Pieces with a ZIP+4 barcode.

(g)
Pieces in the mailing.

(h)
Percentage of barcoded pieces.

c.
Sortation/Qualification Report - Optional Combined ZIP+4 Presort and
Presorted First-Class Mailing (Destinating at Automated Sites).  At the top of
the report, show this administrative information: name of presenter, date of
report, and entry post office.

(1)  Three-Digit Portion.
List by 3-digit ZIP Code the following:

(a)
ZIP+4 Presort rate pieces.

(b)
Presorted First-Class rate pieces.

(c)
Cumulative total for each ZIP Code.

(d)
Total each column.

(2)  Residual Portion.
List by 3-digit ZIP Code the following:

(a)
Nonpresorted ZIP+4 rate pieces.

(b)
Single-piece rate pieces.

(c)
Cumulative total for each ZIP Code.

(d)
Total each column.

(3)  Summary.
Give totals for the following:

(a)
ZIP+4 Presort rate pieces.

(b)
Presorted First-Class rate pieces.

(c)
Nonpresorted ZIP+4 rate pieces.

(d)
Single-piece rate pieces.

(e)
Pieces with a ZIP+4 code.

(f)
Pieces in the mailing.

(g)
Percentage of ZIP+4 coded pieces.

d.
Refund Calculation Report is used to calculate the amount of the refund
being requested, by comparing the amount of potential excess postage paid, as
reflected on the customer mail report, with the qualifying rate levels on the
sortation/qualification reports.  The net result is the refund requested for
the mailing.  Required information is as follows:

(1)
At the top of the report, show the following administrative information:
name of presenter, date of report, and entry post office.

(2)  Refund Calculation

(a)
Pieces paid (from customer mail report)





1. ZIP+4 Presort                   (pcs) x (rate) = $x.xx
2. Presorted First-Class           (pcs) x (rate) =
$xx.x
3. Total potential excess postage paid               $xx.x



(b)
Pieces qualified (from sortation/qualification report)




1. ZIP+4 Barcoded                       (pcs) x (rate) = $00.0
2. ZIP+4 Presort                        (pcs) x (rate) = $xx.x
3. Presorted First-Class                (pcs) x (rate) = $xx.x
4. Nonpresorted ZIP+4                   (pcs) x (rate) = $xx.x

5. Single-piece                         (pcs) x (rate) =
$xx.x
6. Total                                              $xx.x



(c)
Refund requested must equal




Line (a)3. less line (b)6.                = $xx.x



147.43  Requests for Refunds for ZIP+4 Barcoded Rate Combined Mailings

147.431  General.
This section sets forth the procedures applicable to the submission of
requests for refunds by a business entity, such as a presort service bureau,
which prepares ZIP+4 Barcoded rate combined mailings under 382.6 or
661.4.  Any refund is issued to the mailer, not to the owner of the
mail who applied the postage (if different from the mailer).  The disposition
of any such refund is a matter of private contractual agreement between the
owner and the mailer.  To request a refund under this procedure, the mailer
must be authorized by the Postal Service.

147.432  Requests for Refunds.
Requests for refunds of overpayments of postage for the metered portion of
ZIP+4 Barcoded rate combined mailings resulting from the application of
barcodes are processed upon submission of a Form 3533.  A Form 3533, together
with the supporting documentation required by 382.7, must be
submitted with each mailing at the time of mailing.  Although eligibility for
a refund is determined and verified for each mailing, checks or money orders
used to pay refunds for the metered portion of combined mailings are issued by
the entry point postmaster on a weekly basis or on another schedule mutually
agreed to by the postmaster and the mailer.  Postage is refunded to the
mailer, not to the owner of the mail who applied the postage (if different
from the mailer).

147.433  Client Agreement for Metered Pieces.
The mailer must submit to the Postal Service an original Form 8096
completed and signed by each of its clients submitting metered pieces to be
included in combined mailings.  This form is required because the mailer
receives a refund for the value added to the metered pieces (see
382.61b).  If a client has completed a Form 8096 under
147.423 for value added refunds, no additional form is required for
combined mailings.  The mailer must provide the post office responsible for
verifying combined mailings with an original Form 8096 for each client, along
with an accurate list of these clients.
