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(e) Postage due, special delivery, special handling, and certified mail stamps.

(f) United Nations stamps, except on mail deposited at United Nations, N.Y. (g) Stamps of other countries.

§ 142.8 Unlawful transactions.

(a) Unlawful transactions include use of stamps by postal employees entrusted with the sale or custody of postage stamps in payment of debts or purchase of salable articles and sale of stamps except for cash or for more or less than face value.

(b) Counterfeit stamps are confiscated and sent to the postal inspector in charge of the division in which the post office is located. A receipt identifying the stamps will be given to persons from whom counterfeits are confiscated.

(c) Postmasters shall not give opinions to the public concerning the reproduction of foreign or domestic post

age stamps. Persons who request information concerning this matter shall be directed to address their inquiries to the Officer of the Director, U.S. Secret Service, Treasury Department, Washington, DC 20220.

§ 142.9 Adhesive attachments and printed markings.

(a) Imitations of postage stamps. Matter bearing imitations of postage stamps, in adhesive or printed form, or private seals or stickers which are like a postage stamp in form and design, shall not be accepted for mailing.

(b) Imitations of official markings and designs. Matter bearing decorative markings and designs, in adhesive or printed form, which imitate the markings and designs used to identify official postal services shall not be accepted for mailing. The following illustrations are examples of prohibited imitations:

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(c) Permissible. Seals or stickers that do not imitate postage stamps by having such characteristics as words, numerals, or other markings which indicate a value may be attached to other than the address side of mail.

PART 143-PRECANCELED STAMPS Sec. 143.1

Purpose of precanceling.

143.2 Sale and use of precanceled stamps.
143.3 Mailers precancel postmark.
143.4 Precancel permits.

AUTHORITY: The provisions of this Part 143 issued under 39 U.S.C. 401.

SOURCE: The provisions of this Part 143 appear at 35 F.R. 19449, Dec. 23, 1970, unless otherwise noted.

§ 143.1 Purpose of precanceling.

(a) Definition. Precanceling means the cancellation of postage stamps, stamped envelopes, or postal cards in advance of mailing. Adhesive postage stamps may be precanceled only by the post office.

(b) Benefits. The use of precanceled postage reduces the time and costs of mail handling. Precanceled mail, sorted and tied in packages by the mailer, requires less processing time in the post office, and is therefore dispatched more quickly.

§ 143.2 Sale and use of precanceled

stamps.

Precanceled

(a) Classes of mail. stamps may be used to pay postage on: (1) Post cards, but on no other firstclass mail, unless specifically authorized by the postmaster on Form 3620.

(2) Second-, third-, and fourth-class mail.

(3) Any number of pieces mailed at one time, regardless of whether they are identical except third-class bulk mailings.

(b) Place of mailing. Matter bearing precanceled stamps may be mailed only at the post office that sold the stamps.

(c) Sale limited. Precanceled stamps will be sold only to precancel permit holders except as provided in paragraph (f) of this section.

(d) Prohibited. Precanceled postage stamps may not be used on matter mailed in boxes, cases, bags, or other containers designed to be reused for mailing purposes.

envelope for use in returning the stamps to the purchaser.

(e) Overprinting. If precanceled postage on a single piece is over 16 cents, the precanceled stamps must be overprinted or handstamped in black ink with the mailer's initials and the numerical abbreviations of the month and year for use; for examples, A.B. Co. 4-62. Precanceled stamps overprinted in this way are acceptable on mail during the month shown, and through the 10th of the following month.

(2) Permit holders. Precancel permit holders may buy any quantity of precanceled stamps for philatelic purposes. Other precanceled stamps may be purchased only for the purpose of paying postage. Unused precanceled stamps may not be sold for philatelic purposes by permit holders.

(g) Precanceling for collectors. Postmasters will comply with requests for imprints of a precanceling device on their own stamp stock but not for imprints on blank sheets of paper or on stamps submitted by a collector or other individual. [35 FR 19449, Dec. 23, 1970, as amended at 38 FR 20076, July 27, 1973]

(f) Philatelic sales-(1) Nonpermit holders. (i) A maximum of one sheet of stamps of each of the precanceled denominations in sheet form which are available at a post office may be purchased in person or by mail by nonpermit holders for collection purposes only. Complete rolls of precanceled coil stamps may not be broken for philatelic sales. Instructions for selling plate blocks are as provided for in §257.1 (c) (1) of this chapter.

(ii) Precanceled stamps are available at post offices which have them on hand or have a hand stamp for precanceling purposes. It is not necessary to be providing stamps for a permit holder before honoring a philatelic request involving the use of a hand stamp. Hand stamps, once acquired, should be retained by post offices to fill requests from philatelists.

(iii) Each mail order must be accompanied with a stamped, self-addressed

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§ 143.4 Precancel permits.

(a) Application for permit. Applications for permits to use precanceled stamps, precanceled stamped envelopes, and mailer's precancel postmarks must be filed on Form 3620 at the post office where mailings will be made. Copies of this application form may be obtained from local postmasters. Applications to use the mailer's precancel postmarks must be accompanied with an imprint of the cancelation to be used.

(b) Issuance of permit—(1) Approval. The postmaster will approve or disapprove the application. If it is approved, he will issue a Precancel Permit on Form 3620 to the applicant. If the permit covers the use of a mailer's precancel postmark,

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the permit will include a statement to that effect.

(c) Revocation. (1) Permits may be revoked if used in operating any schemes or enterprise of an unlawful character, or for the purpose of purchasing or acquiring stamps for other than mailing purposes, or for any noncompliance with the instructions on the "Permit," Form 3620.

(2) The permit holder will be notified by letter by the postmaster at the post office that issued the permit that it is to be canceled, with the reasons for cancelation. The permit holder will be allowed 10 days within which to file a written statement showing why the permit should not be revoked. When no answer is filed, the postmaster will cancel the permit. If an answer is filed it should be forwarded with a statement of the facts to the Director, Office of Rates and Classification, Finance Department, who will determine whether the permit shall be continued in effect. Notice of decision will be given the permit holder through the postmaster.

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(a) Use of meter stamps. (1) Postage may be paid by printing meter stamps with a postage meter on any class of mail. Metered mail is entitled to all privileges and subject to all conditions applying to the various classes of mail.

(2) Meter stamps may be used to prepay reply postage on letters and postcards under the following conditions:

(i) Meter stamps must be printed directly on the envelope or card that bears the return address of the meter license holder in an amount sufficient to prepay in full the first-class or airmail rate.

(ii) Any photographic, mechanical, or electronic process, or any combination of such processes, other than handwriting, typewriting, or handstamping, may be used to prepare the address side of reply mail prepaid by meter stamps. The address side must be prepared both as to style and content in the following form without the addition of any matter other than a return address:

NO POSTAGE STAMP NECESSARY
POSTAGE HAS BEEN PREPAID BY

John Doe Company

123 Tremont Street,
New York, N.Y. 10010

(Meter stamp to be placed here)

(iii) Reply mail prepaid by meter stamps will be delivered only to the address of the meter license holder. If the address is altered, the mail will be held for postage.

(3) Postage meter stamps for zero postage shall not be affixed to items delivered by other carriers since this would give the impression of Postal Service delivery.

(b) Description of meters. Postage meters are made to print single, several, or all denominations of postage. They contain in one sealed unit the printing die or dies and two recording counters. One adds and keeps a total of all postage printed by the meter. The other subtracts and shows the balance of postage remaining in the meter, after the use of which it will lock. From time to time,

mailers take the meter to the post office to have this counter set for additional postage, which is added to the balance remaining. Payment must be made for each additional setting.

(c) Meter manufacturers. (i) Postage meters may be leased from authorized manufacturers who are held responsible by the Postal Service for the control, operation, maintenance, and replacement, when necessary, of meters manufactured by them. The following manufacturers are presently authorized to lease meters to mailers:

(i) ADS-Anker Data Systems Midwest, Inc., Postalia Division, 2021 Swift Drive, Oak Brook, IL 60421.

(ii) National Cash Register Co., Dayton, OH 45409.

(iii) Pitney-Bowes, Inc., Pacific and Walnut Sts., Stamford, CT 06904.

(iv) The Singer Co., Business Machine Div., 2350 Washington Ave., San Leandro, CA 94577.

§ 144.2 Meter license.

(a) Application. A customer may obtain a license to use a postage meter by submitting Application for a Postage Meter License, Form 3601-A (or a form supplied by the manufacturer), to the post office where his metered mail will be deposited. No fee is charged. On approval, the postmaster will issue a license.

(b) Responsibilities of licensee. (1) After a meter has been delivered to a licensee, he must keep it in his custody until returned to the authorized manufacturer or to the post office. A customer may not have a meter in his possession unless it has been set, sealed, and checked into service by the Postal Service. Avoiding the payment of postage through tampering with or misusing a meter is punishable by law.

(2) The licensee must enter in the Daily Record of Meter Register Readings, Form 3602-A, the figures appearing in the ascending and descending registers each day the meter is operated. Failure to make such entries will be considered grounds for revocation of a meter license. If at any time the sum of the two figures does not equal the total entered in the Form 3602-A at the last setting, the meter should be taken immediately to the post office, station, or branch where it was set for examination. The post office will provide Form 3602-A

when the meter is initially set. Additional copies will be provided as the forms are filed.

(3) The meters in the custody of the licensee and his records relating to meter transactions must be immediately available for examination and audit by the Postal Service upon request.

(4) If a meter is not reset within a 6month period, it must be presented together with related Forms 3602-A for examination at the post office, station, or branch where it is regularly set.

(5) If the meter's printing or recording mechanism is in any way faulty, it shall be immediately taken to the post office, station, or branch where it is regularly set to be checked out of service. Under no circumstances, shall the faulty meter be used.

(c) Revocation. (1) A license may be revoked if a meter is used in operating any scheme or enterprise of an unlawful character, for nonuse during any consecutive 12 months, or for any failure of the licensee to comply with the regulations governing the use of postage meters.

(2) The meter license holder will be notified by the postmaster if the license is to be canceled and the reasons for cancellation. Form 3604, Nonuse of Mailing Permit or Meter License, may be used if cancellation for nonuse is being considered. If no written statement of objection is filed by the license holder within ten days, the postmaster will cancel the license. If a written statement is filed, the appeal shall be referred by the postmaster to the Finance Department, Mail Classification Division, for resolution. The Mail Classification Division will notify the license holder of the decision through the postmaster. If a meter license is revoked, the postmaster will note the date and reason for cancellation on Form 3601-A (see paragraph (a) of this section).

§ 144.3 Setting meters.

(a) Requirement. A customer may not have any postage meter in his possession until it has been set, sealed, and checked into service by the Postal Service. The manufacturer will bring the meter to the post office where it is to be regularly set for setting and sealing prior to delivery to the customer.

(b) Place. Meter settings, including checking meters in and out of service, will be done only by designated em

ployees at the post office, station, or branch where the metered mail will be deposited, except as provided for in paragraph (d) (5) of this section. Postal employees will not be sent out of the post office to set meters except under programs authorized by the regional mail classification branch. Contract stations and branches are not authorized to set meters.

(c) Payment. (1) Payment must be made for postage at the time the meter is set. Payment may be made by cash, check, money order, or by a withdrawal from a trust fund previously established with the post office for that purpose. See section 142, Fiscal Handbook F-1, regarding the acceptance of checks. Trust accounts may be established when the monthly mailing of a licensee is $500 or more. No activity in the account over a 60-day period shall be grounds for closing of the account by the post office and returning the trust funds to the mailer.

(2) Receipts for payment to a trust account shall be made on Form 3544, Post Office Receipt for Money. The original will be given to the customer, the duplicate sent to the office maintaining the cash book, and the triplicate retained by the employee setting the meter. Trust account transactions shall be recorded on Form 25, Trust Fund Account, kept on the individual account by the employee setting the meter. Daily totals of the money received for such trust funds shall be listed on the Daily Cash Report, Form 1412.

(3) Receipts for individual meter settings shall be made on Form 3603, Receipt for Postage Meter Settings, in accordance with paragraph (d)(2) of this section.

(d) Examination and Setting.-(1) Examination. (i) When meters are brought in for reset or examination in accordance with paragraph (b)(2) of this section, they shall be examined to determine if they operate properly or have been tampered with.

(ii) Meters not reset within a 6-month period shall be examined, if practicable, by an employee not assigned to setting postage meters.

(iii) Meters shall be examined to determine whether the seal, register windows, break-off screws, top cover, lock cover, or other visible parts, have been

broken or tampered with, and whether the die hub or meter drum is locked in home position. If evidence of tampering or breakage is found, retain the meter and promptly notify the postal inspector in charge.

(iv) Serial numbers shall be checked to see that they agree with those listed on Form 3610, Record of Postage Meter Settings, and that the total of the two registers equals the last entry in column 8 of Form 3610. If the meter is not registering properly, it shall be checked out of service in accordance with paragraph (e) of this section.

(v) Instances where daily entries are obviously not being made should be brought to the attention of the supervisor for consideration of license revocation. An entry shall be made on Form 3610 when an examination (but no reset) has been made.

(2) Setting. (i) Prior to setting, meters shall be examined in accordance with subparagraph (1) of this paragraph.

(ii) Record descending and ascending register readings before reset and their sum on Form 3603, prepared in triplicate. Verify that the sum agrees with the last entry in column 8 of Form 3610 and column C of Form 3602-A.

(iii) Set the meter in accordance with the manufacturer's instructions.

(iv) Seal the meter using official USPS sealing pliers furnished by the manufacturer. Assure that the seal is properly affixed and thoroughly compressed. After sealing, the lead seal shall be checked to make sure it cannot move on the wire.

(v) Record readings of descending and ascending registers' readings (after setting) on Form 3603 and complete the form.

(vi) If payment is to be made by withdrawal from a trust account, record the transaction on Form 25 maintained for that account by the employee setting the meter.

(vii) Post information from Form 3603 to Form 3610 and complete the Form 3610 entry.

(viii) The original copy of Form 3603 shall be given to the customer with the meter and Form 3602-A. Copy 2 of Form 3603 shall be sent to the holder of the cash book, and copy 3 shall be kept in the receipt book by the meter setter.

(ix) When a meter manufacturer's representative brings in a meter for

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