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for payment of postal insurance. If not received, the mailing postmaster will be requested to ascertain what disposition will be made of the package.

(g) Spoiled contents. When the contents of a package are spoiled, the postal employee will write on the receipt form the date and hour the package was received, the date and hour it was delivered to the addressee, whether the package was endorsed "Perishable," and any known cause of delay or improper handling.

(h) Examination of mail. The addressee or his representative may read and copy the name and address of the mailer from insured mail while it is in the possesion of the postal employee. Examination of the contents may be made only after delivery has been made.

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(a) Unnumbered packages. Unnumbered packages will be delivered as ordinary mail.

(b) Numbered packages. Postal employees will take signed receipts for the delivery 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, Form 3849, for window deliveries made at third- and fourthclass 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.

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lect-on-delivery or 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.

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

(2) Amount collected from the addressee will not exceed $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 postage unless otherwise specified on the mail.

(5) The goods shipped must have been ordered by the addressee.

(d) Prohibitions. COD service cannot be used for:

(1) Collection agency purposes.

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

(3) Sending only bills or statements of indebtedness, even though the sender may establish that the addressee has agreed to 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.

(4) Parcels containing moving-picture films mailed by exhibitors to movingpicture 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, including, 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, or Canton Island. There is COD service to and from Majura, Marshall Islands; Saipan, Mariana Islands; and Ponape, Truk, Koror, and Yap, Caroline Islands. COD articles may

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(a) 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.

(b) Individual receipts for mailing. A receipt is issued for each COD parcel mailed on one of the following forms:

(1) Sender's receipt part of COD tag Form 3816 or specially printed COD tag. (2) Form 3877-A or specially printed firm bills.

(3) Recapitulation sheets or receipt portions of multiple forms specially printed by the mailers.

(c) Temporary receipts. The postmaster will issue a temporary receipt when the number of articles presented for COD at one time warrants it. The permanent receipt will be issued as soon as possible.

(d) Firm mailing books, COD tags, and address labels. Firm mailing books, Form 3877-A, are furnished without charge to customers 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 using Form 3857, Assignment of Number Blocks for Registered, Insured, Certified, and COD Mail. He will keep the use of prefixes to a minimum. Use of suffixes will not be permitted. 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 affixed 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 customers 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 the 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 COD endorsement showing the amount due the sender and the money order fee necessary to make the remittance must be noted on the package.

(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.

(e) Nursery stock shipments. Firms 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 undeliverable parcel disposed of to the highest bidder, the sender's instructions on the back of the deliveryoffice portion of the COD tag (1), and on the sender's coupon (2), should read:

(1) 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 undeliverable parcel 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 collecting charges.

Destroyed after 30 days.

Sold for $. Remittance, less commission, herewith.

(f) Multiple mailing forms. Many mailers consider specially designed and privately printed multiple mailing forms advantageous. They provide in one operation, 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

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(a) Restricted delivery service. Customers 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 COD charges or designation of new addressee. The sender of a COD package may alter the COD 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 COD Article. The postmaster 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, Notice to Sender of Undelivered COD Mail, 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." The notice will be sent as follows:

(1) If the delivering employee's notation indicates the addressee declined acceptance, Form 3849-D will be sent immediately.

(2) If the addressee was not at home when the carrier called, or if carrier service is not involved, Form 3849-D will be sent to the sender 5 days after the first notice of arrival, Form 3860, was issued to the addressee.

(d) 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 $30, 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.

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§ 164.1

How to request payment.

(a) Forms. Use Form 565, Application for Indemnity for Registered Mail, to request payment for registered mail losses, and Form 3812, Request for Payment of Domestic Postal Insurance, to request payment for insured and COD mail losses. Obtain these forms from your local postmaster.

(b) Where to file. File requests at any post office, branch, or station. Claims do not have to be filed at the office of mailing or at the office of address.

(c) Who may file. The mailer or the addressee may file claims.

(d) Waiting period before filing claims. File claims after a reasonable time has been allowed for the addressee to have received the article, taking into account that, if the mail could not be delivered immediately on arrival, it may have been held at the post office of ad

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(e) Information required with claim— (1) Evidence of insurance. Submit evidence that the mail was registered, insured, or sent COD with Form 3812 or Form 565. This evidence consists of either:

(i) The receipt issued at the time of mailing; an exact copy made by any of the various photographic processes; or a notorized copy of the original; or

(ii) The wrapper or envelope of the article bearing names and addresses of sender and addressee and the endorsement that the mail was sent registered, insured, or COD.

(2) Statement of value. The claimant must make a definite statement on Form 3812 showing the actual value of lost or irreparably damaged articles or the cost of repairing partially damaged articles, Allowance must be made for any depreciation due to age or wear or for repairs needed at time of shipment. Statements of the value of lost or completely damaged articles should be supported by receipted bills or invoices if practicable. If not available, submit a written statement on the back of Form 3825, Request For Information-Postal Claim. In the case of articles which can be repaired, a receipted bill for repairs already made, or an estimate of the cost of repairs obtained from a reliable repairman, must accompany the claim.

(3) Substantiating amount claimed. The postal service will not undertake to obtain estimates of the value of items for which claim is made, estimates of repair costs, or direct that repairs be made. It is the responsibility of the claimant to substantiate the amount claimed.

§ 164.2 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.

Postal Insurance or Actual Value (whichever is less)

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

Actual Value or

=

Postal

Postal Insurance or Actual Total Private XCost of Repairs Liability Value (whichever is less) +

Insurance

(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.

(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 e made to such relative or representative of the sender as may be entitled to receive the amount due, in accordance with applicable State laws.

§ 164.3

Payable and nonpayable claims.

(a) Payable. Postal insurance within the amount covered by the fee paid is payable for:

(1) Actual value of lost articles.

(2) Cost of repairing a damaged article or replacing a totally damaged article, not exceeding actual value of the article. When unusual conditions 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 U.S. property and must be surrendered to the postmaster.

(3) Amount collected for a COD article that is not received by the sender.

(4) 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 within 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.

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

(6) 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.

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

(8) Cost of outer container if specially designed and constructed for goods sent as insured mail. This provision does not cover usual shipping containers.

(9) Established market value of numismatic coin, or stamps having philatelic value.

(10) 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.

(11) 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.

(b) Nonpayable. Payment will not be made in excess of the actual value of the article or in excess of the maximum covered by the fee paid. Payment will not be made when:

(1) The article was not rightfully in the mail. This includes COD and insured articles sent to addressee 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.

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