of numbered packages on the following forms:

(1) Form 3849, when delivery is made by carrier, and window delivery at firstand second-class offices.

(2) Form 3850, for window deliveries made at third- and fourth-class offices. (3) Form 3883, when addressees regularly receive an average of three or more packages at one time.

(4) Also, Form 3811, "Return Receipt", when this service is requested by the sender.

[31 F.R. 11147, Aug. 23, 1966. Redesignated on 31 F.R. 15350, Dec. 8, 1966]

(a) Purpose. Patrons may mail an article for which they have not been paid and have the price and the cost of the postage collected from the addressee when the article is delivered. This is collect-on-delivery service, which is usually called COD service. The amount collected is returned to the mailer by a postal money order. The fees for COD service include insurance against loss, rifling, or damage to the article and failure to receive the amount collected from the addressee.

(b) Mail which may be sent COD. First-, third-, and fourth-class matter may be sent as COD mail. See § 161.4 of this chapter for registered COD fees.

(c) Conditions. (1) The mail must bear the complete names and addresses of sender and addressee.

(2) The largest amount that will be collected from the addressee is $200.

(3) The amount to be collected or the amount of insurance coverage desired, whichever is higher, determines the COD fee.

(4) The sender guarantees to pay any return and forwarding postage unless otherwise specified on the mail.

(5) The goods shipped must have been ordered. The COD service

(d) Prohibitions. cannot be used for:

(1) Sending articles to addressees who have not ordered them or agreed to accept them.

(2) Collection agency purposes.

(3) Return of merchandise about which some dissatisfaction has arisen, unless the new addressee has consented in advance to such return.

(4) Sending only bills or statements of indebtedness even though the sender may establish that the addressee has agreed to the collection in this manner. However, when a legitimate COD shipment consisting of merchandise, bill of lading, etc., is being mailed, the balance due on a past or anticipated transaction may be included in the charges on a COD article, provided the addressee has consented in advance to such action.

(5) Parcels containing moving-picture films mailed by exhibitors to moving picture manufacturers, distributors, or exchanges. Such parcels may be sent as insured mail, or, if sealed, by first-class registered mail.

(e) Restrictions on COD service to military installations. COD service is not available for articles having an APO or FPO designation as part of the address. This restriction applies also to official shipments and shipments to Armed Forces agencies.

(f) Service with U.S. Possessions and Territories. There is no COD service with the Canal Zone, Canton Island, Caroline Islands, Mariana Islands, or Marshall Islands or to Samoa. However, COD articles may be mailed from Pago Pago, Samoa.

[26 F.R. 11591, Dec. 6, 1961, as amended at 27 F.R. 6979, July 24, 1962. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

the mailer includes in the charges to be remitted the postage and fee prepaid, the COD fee will be based on the total COD charges, which include the postage and fee.

(b) Where to mail. COD parcels must be mailed at a post office, branch, or station through a rural carrier or at a personnel or nonpersonnel rural station or branch. They may not be placed in mail drops at post offices, nor in or on street mail boxes. They may not be left on, but may be placed in, rural mail boxes.

(c) Individual receipts for mailing. A receipt is issued for each COD parcel mailed.

(d) Firm mailing books, COD tags, and address labels. Firm mailing books, Form 3877-A, are furnished without charge to patrons who mail an average of three or more parcels at one time. Spaces are provided for entering the description of parcels to be sent COD. The sheets of these books become the senders' receipts and the post office records. The books must be presented with the parcels to be mailed. Following

are instructions for their use:

(1) The postmaster will assign a series of numbers. The mailer must number the articles and the items to correspond. Entries must be made in duplicate with carbon paper.

(2) A COD tag must be securely fixed by the sender to each COD article, showing article number, names and addresses of sender and addressee, amount due sender, and amount of money order fee necessary to make remittance. The necessary particulars must be filled in by sender. Stock tags are furnished by the post office without charge. There are three types of tags eyeletted for tying to parcels, and one uneyeletted type for attaching by gummed tape. Specially printed COD tags approved by the Postal Service are also used. The eyeletted tag, form 3816, composed of delivery office portion, delivering employee's coupon, mailing office record and the sender's receipt, is intended for use by patrons mailing less than three articles at one time.

(3) The particulars required on the tag must be filled in by the sender with ink, indelible pencil (not ordinary lead pencil), or typewriter. The Postal Service is not responsible for errors by senders in stating charges to be collected.

(4) When COD remittance is to be sent to someone other than the actual mailer, the name and address of the

person to whom the money is to be sent must appear in the proper spaces on the address side of the COD tag. The name and address of the actual mailer must be placed on the back of the delivery office portion of the tag. The name and address of the person to whom the money is to be paid must be shown as sender on the COD parcel itself, together with directions as to return, if undeliverable.

(5) The package must bear the complete names and addresses of the sender and addressee, and the COD endorsement showing the amount due the sender and the money order fee necessary to make the remittance.

(6) When COD parcels are addressed to distant points or to overseas domestic destinations, the mailer may, if he desires to expedite remittance, attach an addressed, prepaid airmail reply envelope to the back of the COD tag at time of mailing.

Firms

(e) Nursery stock shipments. mailing nursery stock may print special COD tags bearing instructions as to disposition of shipments that are not immediately delivered. These tags must contain a coupon that will be returned with the money order. The following rules apply:

(1) If the sender does not desire to have the parcel, if undeliverable, disposed of to the highest bidder, the sender's instructions on the back of the delivery-office portion of the COD tag (1), and the sender's coupon (2), should read:

(i) If addressee refuses to pay charges for any reason, deliver at once without collecting the charges. Notify sender at once if parcel is not delivered, and if no reply is received in 30 days, destroy parcel. See sender's coupon for further instructions.

(ii) Return this coupon with money order. If parcel is delivered without collection of charges, or is destroyed after 30 days, check disposition and send coupon to sender in penalty envelope.

Delivered to addressee without collecting charges.

Destroyed after 30 days.

(2) If sender desires to have the parcel, if undeliverable, disposed of to the highest bidder, the sender's instructions on the back of the delivery office portion of the COD tag (1), and on the sender's coupon (2), should read:

(i) If addressee refuses to pay charges for any reason, deliver at once without

collecting the charges. Notify sender at once if parcel is not delivered, and if no reply is received in 30 days, sell to highest bidder and remit proceeds less commission. If sale cannot be made destroy parcel. See sender's coupon for further instructions.

(ii) Return this coupon with money order. If parcel is delivered without collection of charges, is destroyed after 30 days, or is sold, check disposition and send coupon to sender in penalty envelope.

Delivered to addressee without collect

ing charges.

Destroyed after 30 days.

Sold for $------. Remittance, less commission, herewith.

(f) Multiple mailing forms. Specially designed and privately printed multiple mailing forms are found by many mailers to be advantageous. They provide in one operation, by carbon or spot carbon process, address labels, firm mailing and post office records, and COD tags or labels to be stuck on stock COD tags. Specially designed recapitulation sheets are used for receipting purposes. Mailers desiring to use multiple forms should consult printers specializing in business forms, and submit specimen proofs to their local postmasters before printing.

(g) Temporary receipts. When, at the discretion of the postmaster, the number of articles presented for COD at one time warrants, a temporary receipt showing only the total number of parcels accepted may be issued. The permanent receipt will be issued as soon as possible.

[26 F.R. 11591, Dec. 6, 1961, as amended at 31 F.R. 8236, June 11, 1966. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

(a) Restricted delivery service. Patrons may, at the time of mailing, direct that a COD parcel be delivered only to the addressee or to someone named by him in writing. The mail will be endorsed "Deliver to Addressee Only or Deliver to Addressee or Order."

(b) Alteration of C.O.D. charges, or designation of new addressee. The sender of a C.O.D. package may alter the C.O.D. charges or direct delivery to a new addressee by filing a request with the postmaster at the office of mailing on Form 3818, "Authorization to Cancel or Change Charges on a C.O.D. Article." The post

master will send the directions to the office of delivery by telegram if the sender pays the costs.

(c) Notice to sender. Senders desiring a notice of undelivered COD mail must request Form 3849-D by endorsement on the address label. This request must appear conspicuously, directly under the return name and address of the sender, and separate from any other instructions, as follows:

FORM 3849-D REQUESTED

A mailer's request may include directions to send the notice to the mailer or to his representative. When the mailer's representative is designated, the representative's name and local or nearby address must be shown in a bordered space with instructions, reading: Do not deliver to mailer's designated representative without collecting COD charges, or Deliver without collecting COD charges to mailer's designated representative.

[26 F.R. 11592, Dec. 6, 1961, as amended at 30 F.R. 11719, Sept. 14, 1965; 33 F.R. 9258, June 22, 1968. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

§ 163.5 Delivery.

(a) At letter carrier offices. (1) A COD parcel will be tendered to the addressee at his home, or if he receives his mail in a post office box or through general delivery, he will be furnished a notice of the arrival of the parcel. If the parcel is undelivered after 5 days, a second notice will be sent to him. If the addressee does not accept the parcel when it is tendered, it will be returned to the post office and held for the length of time directed by the sender, but never more than 30 days. The addressee may go to the post office and obtain the parcel or he may request that it be delivered to his home. The mailer may also request that it be delivered again.

(2) When the addressee requests delivery of a COD parcel that was refused when it was first offered for delivery by carrier, the local rate of postage must be collected as postage due if delivery is made. A COD parcel that was not refused when first offered by a carrier for delivery will again be taken out at the addressee's request and no extra postage will be charged. When the sender, on Form 3818, requests another carrier delivery attempt, no additional postage is to be charged.

(3) When delivery of a COD parcel has been attempted twice by carrier,

postage at the local rate must be paid for each additional attempt.

(4) No local rate of postage is charged for renewed attempts to deliver COD mail prepaid at the letter rate of postage.

(5) The addressee must have the amount of the COD charges, as the carrier is not furnished change.

(b) At offices not having carrier delivery service. The addressee will be notified when a COD parcel is on hand for delivery. The notice is placed in the general delivery or in a post office box. A second notice is issued if the article is undelivered after 5 days.

(c) On star routes affording delivery service. Star route carriers will deliver COD mail if required by the contract. Patron should present the exact amount of money needed to pay the COD charges and the money order fee.

(d) Rural delivery. For delivery by rural carriers or at personnel and nonpersonnel rural stations and branches, see Part 156 of this chapter.

(e) Type of delivery service. COD parcels are delivered in accordance with the regulations for delivery of registered mail (see Part 161 of this chapter), except that when delivery has not been restricted, mail addressed to a person at a hotel, apartment house, or the like, may be delivered to any person in a supervisory or clerical capacity to whom the mail is customarily delivered. Signed delivery receipts are obtained by the delivering carrier.

(f) Examination of mail. The addressee or his representative may read and copy the name and address of the mailer from COD mail while it is in the possession of the postal employee. Examination of the contents may be made only after the COD charges have been paid and delivery has been made.

[26 F.R. 11592, Dec. 6, 1961, as amended at 29 F.R. 11454. Aug. 8, 1964; 31 F.R. 8236, June 11, 1966; 31 F.R. 11103, Aug. 20, 1966; 33 F.R. 11453, Aug. 13, 1968. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

§ 163.6 Registered COD mail.

Sealed domestic mail of any class bearing postage at the first-class rate may be sent as registered COD mail. Such mail is handled the same as other registered mail. The maximum amount of charges collectible on a parcel is $200, but additional indemnity may be obtained over $200 up to the regular registry limit of $10,000 by payment of a higher fee. Registered COD mail is subject to a handling charge applicable to other registered mail, except that the basis of the handling charge is the amount by which the declared actual value of the article exceeds the limit of liability covered by the fee paid. Envelopes used as covers must not be smaller than 4 x 734 inches. [29 F.R. 11454, Aug. 8, 1964. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

PART 164-PAYMENT FOR LOSSES

Sec.

164.1

164.2

164.3

164.4

164.5 164.6

Payment conditions.
Payable claims.

Nonpayable claims.

How to request payment.

Articles recovered after payment.
Official mailings.

AUTHORITY: The provisions of this Part 164 issued under R.S. 161, as amended; 5 U.S.C. 301, 39 U.S.C. 501, 507, 2409, 5001, 5005-5007, unless as otherwise noted.

§ 164.1 Payment conditions.

(a) If, through established error by the Postal Service, a fee less than that required to cover the amount of insurance coverage requested at the time of mailing was charged, the sender may be permitted to pay the deficiency in fee and postal insurance may be paid within the limit fixed for the higher fee.

(b) If commercial insurance is carried on a registered, insured, or COD article, the total amount of insurance to be received will be prorated between the Postal Service and the insurance company using the following formula:

(c) If the insured or COD article was lost or the entire contents totally damaged, the payment check will include an additional amount for postage (not fee) paid by the sender.

X Actual value or cost of repairs Postal liability

(d) If both sender and addressee claim insurance, they should decide between themselves who should receive payment. If no agreement is reached, payment may be made to the sender, the

person with whom the Government's contract of insurance was made.

(e) If the sender is incompetent or deceased, payment will ordinarily be made to the legal representative. If there is no legal representative, payment may be made to such relative or representative of the sender as may be entitled to receive the amount due, in accordance with applicable State laws.

[29 F.R. 11454, Aug. 8, 1964. Redesignated at 31 F.R. 15350, Dec. 8, 1966] § 164.2 Payable claims.

Postal insurance within the amount covered by the fee paid is payable for: (a) The actual value of lost articles. (b) The cost of repairing a damaged article or the cost of replacing a totally damaged article, not exceeding the actual value of the article. When unusual con

ditions exist, payment may be made, at the discretion of the Postal Service, for the full value of a partially damaged article. The article then becomes United States property and must be surrendered to the postmaster.

(c) The amount collected for a COD article that is not received by the sender.

(d) Death of baby poultry due to physical damage to the package or delay for which the Postal Service is responsible. In the absence of definite evidence showing responsibility for death of baby poultry, the Postal Service will be presumed to be at fault if 10 percent or more of the chicks are dead on delivery, if delivered with the 60-hour limit, and insurance will be paid for all dead chicks; otherwise the Postal Service will not be presumed to be at fault.

(e) Perishable matter properly prepared for mailing which, due to fault of the Postal Service, is delivered in spoiled or deteriorated condition.

(f) The cost of duplicating valuable papers, or their original cost if they cannot be duplicated. The fee paid to an attorney to obtain duplication of valuable papers and other actual, direct, and necessary expenses may be included

(g) The extra cost of gift wrapping if the gift wrapped article was enclosed in another container for handling in the insured mail.

(h) The cost of an outer container if specifically designed and constructed for the goods sent as insured mail. This provision does not cover usual shipping containers.

(i) The established market value of numismatic coin, or stamps having philatelic value.

(j) In all claims involving registered and insured mail, and COD mail delivered to the addressee, any Federal, State, or city sales tax paid on articles which were lost or irreparably damaged.

(k) Postage (not fee) paid for transportation of replacement articles or for sending damaged articles for repair. If the Postal Service cannot be used for this purpose, other reasonable transportation charges may be included.

[26 F.R. 11592, Dec. 6, 1961, as amended at 27 F.R. 6979, July 24, 1962; 29 F.R. 11454, Aug. 8, 1964. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

(a) Payment will not be made in excess of the actual value of the article or in excess of the maximum amount covered by the fee paid.

(b) Payment will not be made when: (1) The article was not rightfully in the mail. This includes COD and insured articles sent to addressees without their consent, for purposes of sale.

(2) Requests are filed more than 1 year from the date the article was mailed, unless established that the delay was not the fault of the claimant.

(3) Evidence of insurance coverage has not been presented.

(4) The sender failed to state at the time of mailing the full value of a registered article for the purpose of depriving the Postal Service of revenue.

(5) The loss, rifling, or damage occurred after proper delivery by the Postal Service, unless the article was reinsured.

(6) There is only a sentimental value. (7) The loss resulted from delay in delivery of a registered article.

(8) The claim is for some consequential loss rather than for the article itself. (9) The matter froze, melted, spoiled, or deteriorated due to atmospheric temperature.

have

(10) The parcel could not reached the addressee in good condition in the ordinary course of the mail.

(11) The damage consists of abrasion, scarring, or scraping of suitcases, handbags, and similar containers which were not packed for protection.

(12) Death of baby poultry was due to shipment to points where delivery could not be made within 60 hours from the time of hatch, or to extremes of