[Federal Register Volume 63, Number 64 (Friday, April 3, 1998)]
[Proposed Rules]
[Pages 16464-16465]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8457]
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POSTAL SERVICE
39 CFR Part 501
Requirements for Manufacturer, Demonstration and Loaner Postage
Meters
AGENCY: Postal Service.
ACTION: Proposed rule.
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SUMMARY: This proposal would clarify and strengthen requirements for
manufacturers of postage meters to control meters that they use for
demonstration and loaner purposes. The intended effect of this proposal
is to reduce the potential for misuse and fraud.
DATES: Comments must be received on or before May 4, 1998.
ADDRESSES: Written comments should be mailed or delivered to the
Manager, Metering Technology Management, Room 8430, 475 L'Enfant Plaza
SW, Washington, DC 20260-2444. Copies of all written comments will be
available at the above address for inspection and photocopying between
9 a.m. and 4 p.m. Monday through Friday.
FOR FURTHER INFORMATION CONTACT: Nicholas S. Stankosky, (202) 268-5311.
SUPPLEMENTARY INFORMATION: Serious postal revenue protection problems
result from inconsistent practices and procedures followed by meter
manufacturers in controlling demonstration meters and those that are
lent to their customers. The manufacturers' employees, dealers, and
agents are often held accountable for the movement, tracking, and use
of these meters in a manner consistent with policies and procedures
that have been established and implemented for all other meters in
order to protect postal revenue. The following procedures are proposed
in order to reduce the potential for misuse and fraud.
List of Subjects in 39 CFR Part 501
Administrative practice and procedure, Postal Service.
Although exempt from the notice and comment requirements of the
Administrative Procedure Act (5 U.S.C. 553 ((b) and (c)), regarding
proposed rulemaking by 39 U.S.C. 410(a), the Postal Service invites
public comments on the following proposed amendments to Part 501 of
Title 39 of the Code of Federal Regulations.
PART 501--AUTHORIZATION TO MANUFACTURE AND DISTRIBUTE POSTAGE
METERS
1. The authority citation for Part 501 continues to read as
follows:
Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 410, 2610,
2605; Inspector General Act of 1978, as amended (Pub. L. 95-452, as
amended), 5 U.S.C. App 3.
2. Section 501.22 is amended by adding paragraph (s) to read as
follows:
Sec. 501.22 [Amended]
* * * * *
(s) Implement controls over demonstration and lent meters as
follows:
(1) There are two conditions under which postage meters may be
placed with a customer on a temporary basis. One involves a ``demo''
meter and the other is a ``loaner meter.'' For purposes of definition,
a ``demo'' meter contains a specimen indicia and cannot be used to
meter live mail. A ``loaner'' meter has a ``live'' indicia and may be
used to apply postage to a mailpiece. Both are typically used in
marketing efforts to acquaint a potential user with the features of a
meter.
(2) A ``demo'' meter must be recorded on internal manufacturer
inventory records and must be tracked by model
[[Page 16465]]
number, serial number, and physical location.
(3) ``Demo'' meters may be used only for demonstrations by the
manufacturer's dealer/branch representative and must remain in their
control. These meters may not be left in the possession of the
potential customer under any circumstance.
(4) Because ``loaner'' meters can print live postage, they must be
licensed to the manufacturer's dealer/branch under the Postal Service
Centralized Meter Licensing System (CMLS). Because each dealer/branch
office may service a multitude of customers located in many different
post office service areas, a single license issued from the appropriate
postal district office city will cover all post offices located in that
district. A Form 3601-C, Postage Meter Activity Report, must be
initiated to activate a loaner meter under a dealer/branch CMLS
license.
(5) Loaner meters can be placed only with customers who have been
issued a CMLS meter license.
(6) Only electronic, remote set meters may be used as ``loaner''
meters. Representatives must record ascending and descending register
readings at the time a meter is lent and when it is returned. All
discrepancies must be reported immediately to the respective meter
manufacturer, who will then notify Metering Technology Management. The
meter must be inspected when returned from the customer. Any indication
of tampering or fraudulent use also must be reported to Metering
Technology Management. Use of the meter must immediately cease and must
be returned to the manufacturer's QAR department via Registered mail.
(7) As both a manufacturer's representative and a meter licensee,
the representative is subject to the provisions of the Domestic Mail
Manual (DMM), Part P030 and 39 CFR part 501.
(8) The manufacturer's representative assumes all responsibilities
under USPS meter regulations applicable to meter licensees, including
having the meter set and examined. All losses incurred by the Postal
Service as a result of fraudulent use of the meter by the customer are
the responsibility of that customer, the meter licensee, and the
manufacturer.
(9) Loaner meters must be included in the CMLS meter tracking
system. A Form 3601-C must be prepared by the representative for each
``loaner'' meter installed or withdrawn. The licensee and meter
location information must show the name of the dealer/branch and not
the temporary user.
(10) The city/state designation in the ``loaner'' indicia must show
the location where the user's mail will be deposited.
(11) The representative must ensure that ``loaner'' meters are
available for examination by the Postal Service on demand, and are
examined under postal policy.
(12) A customer may have possession of a ``loaner'' meter for a
maximum of 5 continuous business days. In order for the customer to
possess the meter for a longer period, it must be installed
permanently. When customer chooses to continue the use of a postage
meter, the ``loaner'' meter must be retrieved and a new meter installed
under the customer's license.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 98-8457 Filed 4-2-98; 8:45 am]
BILLING CODE 7710-12-P
