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Special canceling machine die hubs may be authorized for use in place of the regular die hubs at designated post offices. When authorized, the special die hubs are placed on canceling machines through which a large volume of letter mail is canceled.

[26 F.R. 11569, Dec. 6, 1961, as amended at 30 F.R. 6436, May 8, 1965. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

§ 146.2 How sponsors obtain special cancellations.

(a) Requirements for use—(1) When. (i) Permission for use of special cancellations is granted for advertising purposes in the following cases only:

(a) Where the event to be advertised is for some national purpose for which Congress has made an appropriation; or (b) Where the event to be advertised is of general public interest and importance, to endure for a definite period of time, and is not to be conducted for private gain or profit.

(ii) Special cancellations are not authorized for:

(4) Cost. The sponsor must pay the cost of manufacturing the special cancellation die hub and any costs incurred in adapting canceling machines: for its use or for installing the hub. The cost of a die hub is usually $55 to $65. The organization or persons assuming the cost of manufacturing the die hub are billed by the manufacturer.

(a) Events of interest primarily to a particular local group.

(b) Fraternal, political, religious, commercial, or trade organizations.

(c) Campaigns or events promoting the sale or use of private products or services.

(d) Idea or slogan promotion not directly connected with an event of general public interest and importance.

(b) Wording. The space available for the wording is shown in the illustration below. The wording must be limited to 3 lines of not more than 20 letters, numbers, or spaces each, so that the wording may be in type large enough to be legible. The wording must relate direct to the event. Illustrations or designs should

(e) Events which occur during a period when all canceling machines in the post office have already been scheduled for the use of other special cancellation die hubs.

(2) Where. The cancellation may be used only in a first- or second-class post office.

(3) Period of time. The special cancellation may not be used longer than 6 months, plus the duration of the event.

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not be used because of the limited space available on the die hub.

(c) Application—(1) Where to apply. If the event to be advertised meets the conditions in paragraph (a)(1) of this section, submit the application in writing to the postmaster at the post office where the cancellation die hub is to be used, so that the postmaster can furnish the Department certain necessary information.

(2) When to apply. The application should be submitted to the postmaster at least 3 months before the date the cancellation die hub is to be placed in operation.

(3) Information needed. The application must provide the following information:

(1) Complete description and schedule of the event to be advertised, including evidence that it is not being conducted for private profit.

(ii) Wording of the proposed cancellation. (iii) Name of the post office where the cancellation is to be used.

(iv) Period of use desired.

(v) Number of die hubs desired. (vi) Name and address of the sponsor who will be billed for the cost.

(d) Referral by postmaster. The postmaster will forward the application to the Classification and Special Services Division, Bureau of Operations, Post Office Department, Washington, D.C. 20260. The postmaster must furnish with the application the name of the manufacturer and model of the canceling ma

chine on which the special die hub will be used, and must specify whether the machine is new or old (square- or roundtype ring die). If the canceling machine is a Model Flier, M or G, the postmaster must state the correct die hub part number from the Operating Instruction Book (1207 or 1207-G for Flier and M Machines, and 218 or 218-E for G Machines). The base of the ring die on parts 218 and 1207 is round. The base of the ring die on part 218-E and 1207-G is square. No die hub part number is required for Models D, K, H.D.2, and Mark II. The postmaster must also state the effect the approval would have on the use of special cancellations already approved for his office.

(e) Authorization. The sponsor will be informed through the postmaster of the approval or denial of the application. If the application is approved, the Department will arrange for the manufacture of the die hub, and instruct the postmaster as to its use.

(39 U.S.C. 4025) [26 F.R. 11569, Dec. 6, 1961, as amended at 30 F.R. 6436, May 8, 1965; 31 F.R. 11102, Aug. 20, 1966; 34 F.R. 9752, June 24, 1969. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

§ 146.3 Disposition.

(a) After use. Sponsors may not obtain from postmasters die hubs that have been used. A die hub may not be transferred to another post office. Hubs not retained by the postmaster for future use shall be sent by him to the Procurement Parts Unit, Mail Equipment Shops, 2135 Fifth Street NE., Washington, D.C. 20260 as soon as the period of use is completed.

(b) Urserviceable die hubs. (1) Replacement parts for a die hub retained for use during an event which recurs each year may be requisitioned from the Procurement Parts Unit, Mail Equipment Shops, if the die hub can be repaired by the postmaster. Die hubs that cannot be repaired by the postmaster should be sent to the Procurement Parts Unit, Mail Equipment Shops, 2135 Fifth Street NE., Washington, D.C., 20260, together with a memorandum requesting their disposal. No facilities are available at the Shops for the repair of these die hubs.

(2) When the special cancellation die hub must be replaced, the postmaster will immediately notify the local sponsor so that the sponsor may, if he desires,

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§ 146.5

Mail submitted for special cancellations.

(a) Postage. Mailers requesting that their mail be canceled with a special cancellation must affix first-class postage to the mail. The mail must bear a complete address. Stamps issued by foreign countries must not be placed on the mail.

(b) Holding the mail. Postmasters will not hold mail to comply with requests of patrons that the mail be postmarked with the special cancellation on a particular date.

[26 F.R. 11570, Dec. 6, 1961, as amended at 27 F.R. 2687, Mar. 22, 1962. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

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(a) Prepayment required. Postage on all mail must be fully prepaid at the time of mailing, with the following exceptions:

(1) Business reply mail, see § 131.2(c) of this chapter.

(2) Federal Government and free mail, see Part 137 of this chapter.

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

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

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

(6) Keys and identification devices returned to owners, see § 134.1 of this chapter.

(b) Insufficient prepayment. (1) Mail of any class, including that for which special services is indicated (except registered mail-see § 161.3(a) of this chapter) received at either the office of mailing or the office of address without any postage or without sufficient postage will be:

(1) 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 shall be handled as follows:

(1) First-class mail, including airmail, bearing a return address shall 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 § 158.5 of this chapter.

(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.

[26 F.R. 11570, Dec. 6, 1961, as amended at 27 F.R. 2687, Mar. 22, 1962; 30 F.R. 6436, May 8, 1965; 31 F.R. 11102, Aug. 20, 1966. Redesignated at 31 F.R. 15350, Dec. 8, 1966] § 147.2

Refunds.

(a) Conditions that justify refund. (1) When postage or special service fees have been paid on mail for which no

service is rendered, or collected in excess of the lawful rate, a refund may be made.

(2) The Postal Service is considered to be at fault and "no service is rendered" in cases involving returned articles improperly accepted in both domestic and international services because of excess size or weight.

(3) Mailers who customarily weigh and rate their mail are expected to be familiar with basic requirements and the Postal Service is not considered to be at fault when these mailers are required to withdraw articles from the mail prior to dispatch.

(4) See paragraphs (c) (2) and (f) of this section for special provisions for refunding the postage value of unused meter stamps.

(b) Application. Submit an application on Form 3533 (Application and Voucher for Refund of Postage and Fees), in duplicate, to the postmaster together with the envelope or wrapper, or the portion thereof having names and addresses of sender and addressee, canceled postage and postal markings, or other evidence of payment of the amount of postage and fees for which refund is desired.

(c) Amount of refund allowable. (1) Refund of 100 percent will be made:

(1) When the Postal Service is at fault.

(ii) For the excess when postage or fees have been overpaid the lawful rate. (iii) When service to the country of destination has been suspended.

(iv) When postage is fire-scarred while in the custody of the Postal Service, including fire in letter box, and the mail is returned to sender without service.

(v) When special-delivery stamps are erroneously used in payment of postage, and the mail is returned to the sender without service.

(vi) When fees are paid for special delivery, special handling and certified mail, and the article fails to receive the special service for which the fee has been paid.

(vii) When surcharges are erroneously collected on domestic registered mail or collected in excess of the proper amount, or represented by stamps affixed to matter not actually accepted for registration.

(viii) For fees paid for return receipts or for restricted delivery when the failure to furnish return receipt or its equivalent, or erroneous delivery, or nondelivery, is due to fault or negligence of Postal Service.

(ix) For annual bulk mailing fee when no bulk mailings of third-class matter are made during the year for which the annual fee has been paid.

(x) When customs clearance and delivery fees are erroneously collected.

(xi) When fees are paid for registry or insurance service on mail addressed to a country to which such services are not available, unless claim for indemnity is made.

(2) Refund of 90 percent shall be made when complete and legible unused meter stamps are submitted within 1 year from the dates appearing in the stamps. (See § 147.2(f) of this chapter.)

(3) When mail is returned at the request of the sender or for a reason not the fault of the Postal Service, any difference between the amount paid and the appropriate domestic air or surface rate chargeable from mailing office to interception point and return will be refunded.

(4) On articles prepaid at airmail rates but actually transported by surface means, the difference between the postage computed at the airmail and surface rates is refundable. The fact that surface transportation was used must be confirmed.

(d) Unallowable refunds. No refund will be made:

(1) For an application fee to use permit imprints.

(2) For registered, insured, and COD fees after the mail has been accepted by the post office even though it is later withdrawn from the mailing post office.

(e) Meters. The postage value of unused units set in a meter surrendered to the post office to be checked out of service may be refunded or, if desired, an equivalent amount will be transferred to another meter used by the same license holder. If the meter is withdrawn from service because of faulty mechanical operation, a final postage adjustment or refund may be withheld pending report of the meter manufacturer of the cause of faulty operation.

If the meter is damaged by fire, a refund or transfer of postage will be made only if the registers are legible, or can be reconstructed by the meter manufacturer.

(f) Meter stamps-(1) What to submit. (i) Unused meter stamps that are complete and legible accompanied by an application, in duplicate, on Form 3533 within 1 year from dates appearing in the stamps, will be considered for refund. Arrange the stamps so that all of one denomination are together.

(ii) If portion of stamp is printed on one envelope or card and remaining portion on another, fasten the two together to show that the two portions represent one stamp.

(iii) Meter stamps printed on labels or tapes which have not been stuck to wrappers or envelopes must be submitted loose.

(iv) Refunds are allowable for stamps on metered reply envelopes only when it is obvious that an incorrect amount of postage was printed thereon.

(v) Submit separately with statement of facts, envelopes or address portions of wrappers on mail returned to sender from the mailing office marked "No such post office in State named," "Returned for better address," or "Received without contents," indicating no effort to deliver was made.

(2) What not to submit. Do not submit:

(i) Meter reply envelopes or cards paid at the proper rate of postage.

(ii) Meter stamps printed on labels or tape which have been removed from wrappers or envelopes.

(iii) Meter stamps without the name of the post office and State.

(iv) Meter stamps without the date printed on tape. (See § 143.4(f) of this chapter.)

(v) Meter stamps printed on mail which was dispatched from the mailing post office in regular course and returned to sender as undeliverable, including nixies marked "No such post office in State named."

(vi) Meter stamps on mail addressed for local delivery and returned to sender after directory service was given or effort was made to deliver.

[26 F.R. 11570, Dec. 6, 1961, as amended at 28 FR. 4754, May 16, 1963. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

PART 148-REVENUE DEFICIENCIES § 148.1

Deficiencies developed by audit. (a) Developed by Postal Inspector audit (1) Amounts of $100 or less. The postmaster must, upon the request of the inspector, increase the proper revenue account by the amount of the deficiency. If the amount due is not collected at the time of the inspector's request, the postmaster must enter the item in A/C 11919, suspense, and liquidate the item within 30 days by collection from the debtor or with personal funds.

(2) Amounts over $100. The report of the deficiency will first be reviewed by the Classification and Special Services Division. By report on Form 3581, Notice of Revenue Deficiency, the Classification and Special Services Division will notify the proper postal data center of the amount of the revenue deficiency. A Form 813, Statement of Differences, will be issued by the postal data center to the postmaster, accompanied with a copy of Form 3581. When Form 813 is received from the postal data center the postmaster must immediately enter the deficiency in A/C 11935, Audit Difference Due United States, carry the item in A/C 11919, suspense, and take immediate action to collect the amount due from the debtor. If collection is not made within 30 days, the matter must be reported to the regional controller.

(b) Developed by local financial examination or audit. Whenever a revenue deficiency is developed as result of an examination or audit performed in accordance with § 126.6 (f) of this chapter, the postmaster must increase the proper revenue account by the amount of the deficiency. If the amount is $100 or less, and not immediately collected, the postmaster must enter the item in A/C 11919, suspense, and liquidate the item within 30 days by collection from the debtor or with personal funds. If the amount is over $100 and collection is not made within 15 days, the matter must be reported to the local inspector in charge. After attention by the inspector, the report of the deficiency will be reviewed by Classification and Special Services Division and handled as provided in paragraph (a) (2) of this section.

(5 U.S.C. 301, 39 U.S.C. 501) [33 F.R. 15866, Oct. 26, 1968]

PART 149-MATTER DEPOSITED IN MAIL BOXES WITHOUT PREPAYMENT

§ 149.1

Mailable matter found in private mail boxes without prepayment of postage.

(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. (18 U.S.C. 1725.)

(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. See paragraph (a) of this section. 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 making improper use of private mail boxes 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 paragraph (b) of this section.

(d) Repeated violations. If a person or firm continues the improper practice after proper warning, the postmaster shall submit a sample piece and a report of the facts to the postal inspector in charge.

(5 U.S.C. 301, 39 U.S.C. 501) [32 F.R. 5686, Apr. 7, 1967]

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