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Permit.

(a) Application. A permit to use permit imprints and pay postage in cash at the time of mailing may be obtained by submitting Form 3601, Application to Mail Without Affixing Postage Stamps, with a fee of $15, to the post office where mailings will be made. The postmaster will give the applicant a receipt for the fee on Form 3544. No other fee for use of permit imprints has to be paid so long as the permit is active. However, the applicant must also pay an annual bulk mailing fee if he mails third-class matter at bulk rates. See § 134.4(b) (1).

§ 145.2 Preparation of permit imprints.

Permit imprints may be made by printing press, handstamp, lithography, mimeograph, multigraph, addressograph, or similar device. They may not be typewritten or hand drawn. The imprint must be prepared both as to style and content in one of the forms shown in § 145.4. No other forms of imprints may be used. The imprint must be legible and must be of a color that contrasts sufficiently with

the paper to make the imprint readable. The entire imprint must be placed in the upper right corner of the address side of each piece, parallel with the length of the piece.

§ 145.3 Content of permit imprints.

(a) First-class mail. Permit imprints must show city and State; date (may be omitted); "First-Class Mail; U.S. Postage Paid;" followed by either the amount of postage paid or the number of ounces for which postage is paid; and permit number. The ZIP Code of the permit holder may be shown immediately following the name of the State or in a separate inscription reading ZIP Code 00000 when it is possible to include the ZIP Code without creating uncertainty as to permit holder's correct address or permit number.

(b) Second-, third-, and fourth-class mail. Permit imprints must show same information as first-class, except the date and the words "First-Class Mail" must be omitted. The amount of postage may be omitted on matter mailed at bulk third-class pound rates, but should be included when it is known per-piece rates will apply.

(c) Company permit imprints for any class of mail. The city, State, and permit number may be omitted if the permit holder has permits at two or more póst offices, provided the exact name of the company or individual holding the permits is shown in the permit imprint. When this style of company permit imprint is used, the mailing piece must bear a complete return address. The permit holder must maintain for a 3-year period and make available for inspection and audit upon request of post office officials, records showing the post office at which any particular mailing was made, date of mailing, total weight of the mailing, weight of a single piece, and the amount of postage paid. A sample piece from the mailing must also be available.

§ 145.5 Mailings with permit imprints.

(a) Minimum quantities. Except as stated in § 145.5 (b), minimum quantities required to be mailed at one time are as follows:

(1) First-class mail. 300 pieces of identical weight.

(2) Second- and third-class mail. 300 pieces of identical matter, except 50 pounds or 200 pieces of identical thirdclass bulk mail.

(3) Fourth-class mail. 250 pieces of identical matter.

(4) International mail. See Publication 42, "International Mail". 300 pieces of identical matter.

(b) Exceptions to minimum quantities. When any mailing consists of less than the required minimum, enter an explanation on the "Mailing Statement, Form 3602". Exceptions may be made for the following reasons only:

(1) First-class mail. Occasional exception for a mailer whose total daily mailings are not much more than 300 but who, to cooperate with the post office, present a portion of his mailings early in the day.

(2) All classes of mail. When a large mailing extends over two or more consecutive days and the last deposit, made

Nonprofit Org. U.S. POSTAGE

1.6C PAID Permit No. 1

Mengrefit Organization

U.S. POSTAGE

1.6C PAID New York, N.Y Permit No. 1

(c) Preparation for mailing. The mailer must arrange all pieces with the address side facing the same way. It is recommended that the mailer separate the pieces to the finest extent possible in the manner prescribed by §§ 125.3(b) and 134.4(c). Each class of mail must be separately presented with a separate "Mailing Statement, Form 3602". Fourth-class mailings on which postage is paid at different zone rates must be separated according to the postage paid on each piece.

(d) Place of mailing. Deposit mail at the post office that issued the permit or at a station or branch designated by the postmaster. Permit imprint mail shall be accepted at the main post office or at classified stations and branches where there is a separation of financial and mail-handling activities.

(e) Mailing statement. Prepare and sign a "Mailing Statement, Form 3602," for each mailing. The statement must be prepared by typewriter, ink, or indelible pencil to show the mailer's address, permit number, class of mail, number of pieces in the mailing, and weight of single piece. For third-class bulk mailings,

additional information required by the "Mailing Statement" must be shown. If a receipt is desired, present a duplicate copy of Form 3602, which will be initialed by the accepting employee after verification and returned to the mailer.

(f) Payment of postage-(1) Prepayment in full required. The mailer must pay for each mailing when it is presented at the post office, or make an advance deposit of enough to cover more than one mailing. Payments for postage or deposits must be made at points designated by the postmaster. These payments will not be accepted by employees handling the mail. Advance deposits may be made by mail. When the deposit becomes less than enough to pay for an entire mailing, an additional amount must be deposited before any mailings are made. Credit for postage is not allowed. Postage may not be paid partly in money and partly by postage stamps, except as provided in § 145.5(f) (3). Whenever the computation of postage results in a fraction of a cent in the total, the next higher even cent must be paid.

(2) Fractional postage on meter mailings. The mailer must pay fractional postage in cash as provided in § 145.5 (f) (1) when the meter stamps do not fully pay the minimum per piece charge on bulk third-class mailings. The postmaster will issue a permit under which such payments shall be recorded separately from payments made for regular permit imprint mailings. A separate application fee (see § 145.1(a) of this chapter) must be paid for the permit to pay fractional postage payments in cash. A statement on Form 3602 for the cash portion (see § 144.5(e) of this chapter) and a statement on Form 3602-PC for the meter payment portion (see § 134.4 (b) (4) (ii)) shall be filed by the mailer.

(g) Post Office computation of post· age—(1) Random samples. Enough pieces will be selected at random from the entire lot to determine whether the whole mailing consists of identical pieces.

(2) Weight of single piece. Determine the exact weight of a single piece and the amount of postage required. When scales do not show exact weight of a single piece, weigh enough pieces to balance beam and divide total weight by number weighed.

(3) Total number of pieces. Ascertain the total number of pieces by one of the following methods:

(i) Find the total weight in pounds, exclusive of tare. (For definition of tare, see § 145.5(g) (5).) Reduce the pounds to ounces and divide the total number of ounces by the weight of a single piece. Example:

Mailer's statement shows 1,240 pieces in

mailing which weigh 13 pounds, 9 ounces. A single piece weighs 0.175 ounce. Convert weight to ounces: 13 × 16+9=217 ounces.

217 0.175=1,240 pieces.

(ii) Find the total weight, exclusive of tare, and the total weight exactly of 100 pieces in ounces and fractions of an ounce. Divide the total weight by the weight of 100 pieces. This will give the total number of hundreds and fractions of a hundred in the entire lot. Example:

Mailer's statement shows 124,400 pieces in mailing which weigh 1,360 pounds, 10 ounces. A single piece weighs 0.175 ounce. Convert weight to ounces: 1,360 × 16+10= 21,770.

Weight of 100 pieces: 0.175 × 100=17.5. 21,770÷17.5=1,244.

1,244 X 100=124,400 pieces.

(4) Agreement with mailing statement. The result of either of these methods of computation should agree with the number of pieces shown on the statement of mailing. If they do not agree the matter will be taken up with the mailer and, if necessary, further examination and verification will be made.

(5) Tare. Tare includes sacks, cartons, or other containers, hand trucks, skids, or similar pieces of equipment upon which the mail may be placed during the weighing operation. The standard weights for new sacks are 3 pounds, 7 ounces for a No. 1 size; 2 pounds, 8 ounces for a No. 2 size; and 1 pound, 12 ounces for a No. 3 size.

§ 145.6 Additional services.

Postage may be paid by means of permit imprints on matter which is entitled to be registered, or sent as certified, insured, or COD mail.

§ 145.7 Improper use of permit imprints.

(a) Distributed outside the mail and as enclosures. Since permit imprints indicate that the matter on which they appear has had postage paid thereon under the permit imprint system, they must not

ordinarily appear on matter which has not had postage so paid thereon, as, for example, matter which is circulated by means other than mail or which is circulated as an enclosure with other matter either by mail or by means other than mail. Permit imprints may appear on address labels, wrappers, envelopes, and other containers, and on complete mailing pieces, which have not had postage paid thereon under the permit imprint system, provided it would be impracticable to omit the permit imprint, as, for example, when envelopes are shipped from a printer to a permit imprint permit holder.

(b) Place of acceptance. Permit imprint matter will be accepted for mailing only at the post office shown in the permit imprint except when company permit imprints are used as provided for by § 145.3 (c) or when arrangements for acceptance at other post offices are made under the provisions of § 145.8.

(c) Nonpermit mailings. Permit imprints must be obliterated from matter which is mailed as nonpermit imprint matter prepaid with postage by means of stamps or meter stamps.

§ 145.8 Optional procedure for accepting permit imprint mail.

(a) Objective. The purpose of this optional procedure is to provide for the acceptance of permit imprint mail using the minimum amount of space, time, and manpower, and utilizing the latest developments in mechanization, facilities, and transportation while maintaining adequate control of the collection of correct postage charges.

(b) Procedure. Weighing of the entire mailing on scales is not required. Postage is computed from the mailers' Mailing Statement, Form 3602 or Mailing Statement 4th Class Bulk Rates, Form 3605, which must always show the total number of pieces. The total computed weight must also be shown when it is known that the minimum per piece postage charge will not apply.

(c) Verification. Sample pieces from each mailing shall be weighed by a post office employee, either at the mailers' plant or at the post office, to determine whether the pound or the minimum per piece postage charges apply. Post office employees may be sent on rotating assignments to the mailers' plants to weigh sample pieces and observe preparation of mail by mailers only when the mail is not to be delivered to the post

office for dispatch or when considered necessary and authorized in writing by Regional Directors. Mailers must maintain for a 3-year period, and make available for inspection and audit upon request of post office officials, all production and billing records relating to any particular mailing. A sample piece from the mailing must also be available.

(d) Limited use of optional procedure. The optional procedure musts be approved by the Regional Director in each case. It will be approved only when the mailers can make one or more of the following arrangements which are mutually beneficial to the mailers and the Postal Service:

(1) Loading at the mailers' plant the major portion of the mailings into single or combination destination trailers with any remaining portion transported at the mailers' expense and risk from the plant to an acceptance place such as a special acceptance facility or sectional center facility designated by the Regional Director.

(2) Transportation of the entire mailing at the mailer's expense and risk from the plant to the acceptance place designated by the Regional Director.

(3) Merger by mailers of different varieties and classes of mailing pieces into direct sacks which could not be prepared if the pieces were mailed separately.

(4) Unusual arrangements for which the Regional Director has obtained approval from the Office of Mail Classification, Finance and Administration Department.

› (1) Business reply mail, see § 131.2(c). (2) Federal Government and free mail, see Part 137.

(3) Certain mail for the blind, see Part 138.

(4) Mail sent by members of the Armed Forces, see § 131.5.

(5) Letters and printed matter carried or delivered by vessels not regularly employed in carrying mail, see § 131.6.

(6) Keys and identification devices returned to owners, see § 134.1(c). * (b) Insufficient prepayment. (1) Mail of any class, including that for which special services is indicated (except registered mail-see § 161.3(a)), received at either the office of mailing or office of address without any postage or without sufficient postage will be:

(i) Marked to show the total deficiency of postage and fees.

(ii) Dispatched promptly to the addressee by means of the regular or special service indicated.

(iii) Delivered to addressee on payment of the charges marked on the mail. As an exception, when quantity mailings of 10 or more pieces are received at the office of mailing without any postage or without sufficient postage, the mailer will be notified, without charge, preferably by telephone, in order that the postage charges may be adjusted before the mail is dispatched.

(2) When the addressee refuses to pay the deficient postage, and when the mail is undeliverable for any other reason, it will be handled as follows:

(i) First-class mail, including airmail, bearing a return address will be returned to the sender and delivered on payment by him of the deficient postage.

(ii) Mail other than first-class bearing a return address will be returned to the sender and delivered on payment by him of the total of the deficient postage, "the forwarding postage, if any, and the return postage.

(iii) All mail that does not bear a return address will be disposed of in accordance with § 159.4.

(c) Postage on mail insufficiently prepaid. Postage stamps stuck 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 will, when it is again presented for mailing, be accepted in payment of postage to the amount of their face value.

(a) 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.

(b) Collection of postage. Matter found in private mail boxes provided for the receipt of mail matter shall be treated as subject to postage. If the person or firm responsible for improperly depositing matter in mail receptacles, is known and is within the delivery area of the post office, the local postmaster shall make demand for the total postage chargeable on all pieces. The postmaster shall also inform the person or firm that the practice is a violation of the law. An equivalent amount of postage due stamps affixed to a sheet of paper and properly canceled as a receipt for money collected shall be given the person or firm. If payment is in form of uncanceled stamps or meter, stamps, they will be affixed to a sheet, canceled and returned as a receipt for payment. No other receipt will be issued.

(c) Report to other office. If the person or firm using private mail boxes improperly is located at another post office, send a sample piece with a report of the facts to the postmaster at that location with request that he take the action in § 146.2(b).

$146.3 Collection of postage due.

(a) Upon delivery. Postage due mail is collected in cash only, prior to delivery to addressee. Exception: Postage on quantity mailings found in private mail boxes is collected as required in § 146.2(b).

(b) By advance deposit. If postagedue collections amount to approximately $10 or more every 60 days, payment may be made by advance deposits of money, § 146.4 When not to collect.

(a), Stamps lost off mail. When it is apparent from the impression of a canceling stamp that a postage stamp has been wholly or partially lost, handle the piece as prepaid one full rate only.