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

(c) Sale limited. Precanceled stamps will be sold only to precancel permitholders 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.

If

(e) Overprinting. 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 example, A. B. Co. Precanceled stamps overprinted in this way are acceptable on mail during the month shown, and through the 10th of the following month.

cancellation lines to fully deface the stamp. There is illustrated below the authorized design of a mailer's precancel postmark.

(f) Philatelic sales.-(1) Nonpermit holders. Not more than 10 stamps of each of the precanceled denominations which are available at a post office may be purchased in person or by mail by nonpermit holders for collection purposes. Each mail order must be accompanied with a stamped, self-addressed envelope for use in returning the stamps to the purchaser. Precanceled stamps are available only at post offices which prepare or obtain them for sale to permit holders.

(2) Permit holders. Precancel permit holders may buy the quantity of precanceled stamps for philatelic purposes provided for by subparagraph (i) of this paragraph. 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.

§ 142.4 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 cancellation to be used.

Mailers may use a precancel postmark on stamped envelopes mailed at the firstclass rate of postage. The precanceling imprint must include the name of the post office and State, the permit number preceded by the words "Mailer's Postmark," the date of mailing, and sufficient

(b) Issuance of permit. 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, 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 cancellation. 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, Classification and Special Services Division, Bureau of Operations, who will determine whether the

Meter stamps.

Metered reply postage. Mailings.

Meter Record Book.

143.8 Manufacture and distribution of postage meters.

AUTHORITY: The provisions of this Part 143 issued under R.S. 161, as amended; 5 U.S.C. 301, 39 U.S.C. 501, 4051-4053.

§ 143.1 Postage meters.

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

(b) Benefits. Postage meters facilitate the purchase, control, and affixing of postage. Metered mail does not require facing, canceling, and postmarking in the post office, and can therefore be dispatched more quickly.

(c) 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 the meter may be taken to the post office to have the counter set for such additional postage as may be desired to have added to the balance of postage remaining. Payment must be made for each additional setting.

(d) Meter manufacturers. Postage meters may be leased from authorized

manufacturers who are held responsible by the Post Office Department 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:

(1) Commercial Controls Corp., Friden, Inc., Division of The Singer Co., 1 Leighton Avenue, Rochester, N.Y. 14607.

(2) Friden, Inc., Division of The Singer Co., 2350 Washington Avenue, San Leandro, Calif. 94577.

(3) International Postal Supply Co., Friden, Inc., Division of The Singer Co., Lewistown, Pa. 17044.

(4) National Cash Register Co., Dayton, Ohio 45409.

(5) Pitney-Bowes, Inc., Pacific and Walnut Streets, Stamford, Conn. 06904. (6) Postalia Corp. 32-31 57th Street, Woodside, Flushing, N.Y. 11377.

(e) Control. After a meter has been delivered to a licensee, he must keep it in his custody until turned over to the authorized manufacturer or to the post office. Tampering with or misuse of a meter is punishable by law.

[26 F.R. 11563, Dec. 6, 1961, as amended at 33 F.R. 17243, Nov. 21, 1968. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

(1)

(b) Responsibilities of licensee. After a meter has been delivered to a licensee, he must keep it in his custody until turned over to the authorized manufacturer or to the post office. Tampering with or misuse of a meter is punishable by law.

(2) The meters in the custody of the licensee and his records relating to meter transactions must be available for examination and audit by authorized audit and inspection personnel of the Post Office Department.

(c) Revocation. (1) The license may be revoked if used in operating any scheme or enterprise of an unlawful character, for nonuse during any con

secutive 12 months, or for any failure to comply with the regulations governing the use of postage meters.

(2) The meter license holder will be notified by the postmaster that the license is to be canceled, and the reasons for cancellation. If no written statement of objections is filed by the license holder within 10 days, the postmaster will cancel the license. If a written statement is filed, the Bureau of Operations, Classification and Special Services Division, will decide whether or not the license shall be continued in effect and will notify the license holder through the postmaster.

[26 F.R. 11563, Dec. 6, 1961, as amended at 27 F.R. 11767, Nov. 29, 1962; 32 F.R. 2895, Feb. 15, 1967. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

(b) Setting meter. A meter licensee must bring the meter and Meter Record Book to the post office or station or branch where it was first set, for resettings and payments of postage. Postage must be paid at time of setting. Advance deposits for meter settings may not be accepted. The postmaster will issue a Meter Setting Receipt, Form 3603, for the amount of postage paid. If a meter is not reset within a 6-month period, it must be presented with Meter Record Book, showing daily register readings, at the post office, station, or branch where last set, for examination.

(c) Setting meter for use at another post office. The postmaster who serves the place where a mailer is located may, when it will be a convenience to the mailer, set a meter under the following conditions for use in paying postage on mail to be presented at another post office:

(1) The postmaster must obtain through his Regional Director, from the Regional Director in whose Region the post office of mailing is located, a written

statement showing that the post office of mailing has adequate facilities for accepting the mail and that it is served by transportation facilities which will enable the mailings to be effectively and economically handled in the postal transportation patterns.

(2) A meter license must be obtained from the post office where the mailing is to be presented. (See § 143.2(a).) When the license is received, it must be presented to the local post office with the meter for setting. The license will be returned to the licensee.

(3) A separate meter must be used for each post office. The postmark die must show the name of the post office of mailing.

(4) Payment for each meter setting must be made by certified or bank cashier's check payable to the postmaster at the post office where mailings will be made. The check must be presented to the local post office when the meter is set.

(5) The postmaster setting the postage meter will complete Form 3618 in duplicate. The original of this form with the check and a stamped, selfaddressed envelope furnished by the mailer for return of Form 3603 will be sent in a post office penalty envelope to the postmaster where mailings are to be made. A record of each setting shall be entered on Form 3610 at the office where the mailings are made.

(6) Mail may not be consigned to the post office in bulk by freight, express, or other carrier. It must be presented at a designated receiving point in the post office by the mailer's representative. The postmaster may not act as the mailer's representative and the Department has no responsibility for the articles until they are actually accepted in the mail. See Part 152 of this chapter concerning carriage of letters outside the mail.

(7) Matter sent to other post offices for mailing must be shipped in private containers. The total weight of pieces placed in containers such as cartons, crates, etc., which are to be handled by postal employees must not exceed 80 pounds. Post offices will not furnish mail sacks for this purpose.

(8) When the use of a meter is discontinued, it must be presented to the post office where it was set, for checking

out of service. Any postage adjustment will be made by the postmaster where the mailings have been made.

(d) Faulty mechanism. If the printing and recording mechanism is faulty in any way, do not use the meter but take it promptly to the post office, branch, or station where it is regularly set, for checking out of service.

(e) Discontinuance. When a licensee discontinues the use of a postage meter, it must be taken with the Meter Record Book to the post office. If the licensee has not notified the manufacturer of his intention to check out the meter, the postmaster must promptly request the manufacturer to call for the meter. The postmaster should also furnish the meter readings at time of check out to the manufacturer's representative to complete his record, since the descending register will have been cleared to zero or the lowest possible setting at that time. Unused postage in the meter may be transferred to another meter used by the licensee and registered at the same post office, or the postmaster may refund

the amount in accordance with provisions on the license form. The Meter Record Book is returned to the licensee and should be kept on file for at least 1 year from date of final entry. Application for refund should be made on Form 3533, Application and Voucher for Refund of Postage and Fees, or on a special form furnished by the meter manufacturer.

(f) Refunds for unused meter stamps. When complete and legible meter stamps cannot be used because of misprints, spoiled envelopes or cards, and the like the licensee may apply to the postmaster for refund of postage up to 90 percent of postage value. (See § 147.2 of this chapter.)

[32 F.R. 5687, Apr. 7, 1967]

§ 143.4 Meter stamps.

(a) Designs. The types, sizes, and styles of meter stamps are fixed when meters are approved by the Post Office Department for manufacture. Only approved designs may be used. Some approved designs are illustrated below.

(b) Legibility. Meter stamps must be legible and not overlap. Illegible or overlapping meter stamps will not be counted in determining postage paid.

(c) Meter stamps on tape. When meter stamps are printed on tape, only tape approved by the Post Office Department may be used.

(d) Position. Meter stamps must be printed or stuck in the upper right corner of the envelope, address label, or tag.

(e) Content. Meter stamps must show city, State, meter number, and amount of postage for all classes of mail. When it is necessary to print multidenomination meter stamps on more than one tape, the circle showing the post office must appear on each tape.

(f) Date of mailing. Meter stamps must show the date of mailing (month, day, and year) on all first-class mail, special delivery, special handling, or airmail; on all mail sent registered, certified, insured, or COD; and when printed on separate tapes used on first-class mail. The month and year must be shown on tapes on second-, third-, and fourth-class mail, but the day may be omitted. When tapes are not used, no date may be shown in meter stamps on second-, third-, or fourth-class mail.

(g) Hour of mailing. The hour of mailing may be shown only on firstclass, air, or special delivery mail, and then only when it is mailed in time to be dispatched at the hour shown.

(h) Meter slogan and ad plates. Licensees may print restricted advertising matter simultaneously with meter stamps within space limitations. Licen

sees must obtain the plates for advertising from authorized manufacturers of meters to assure suitable quality and content in accordance with the requirements of the Department. The plates should not be used to print postal endorsements on mail. Slogans must not be objectionable or misleading.

[26 F.R. 11563, Dec. 6, 1961, as amended at 27 F.R. 11767, Nov. 29, 1962; 28 F.R. 4754, May 11, 1963; 32 F.R. 7955, June 2, 1967. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

§ 143.5 Meter reply postage.

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

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

(b) 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: