may be mailed as samples at the secondclass rates provided by § 132.1 (a) and (b).

(ii) Samples may be mailed at any time during a calendar year to the extent of 10 percent of the total estimated weight of copies to be mailed to subscribers during the calendar year. For publications having additional entries, the postmaster at the original entry office is responsible for determining that sample copies do not exceed the 10 percent limit. At the end of each calendar year the postmaster at the original entry post office must request from each additional entry office the weight of subscriber and sample copies mailed during the year.

(iii) The words "Sample Copy" must be shown on the address side of the envelopes or wrappers or the outside cover of unwrapped copies.

(iv) Samples for delivery in the county of publication are subject to the rates shown in § 132.1(a).

(v) The transient rate provided by § 132.1(c) must be paid on samples mailed in excess of the 10 percent limit.

(vi) Copies mailed for advertising purposes under arrangements with advertisers or others and copies mailed by a publisher acting as an agent for an advertiser may not be mailed as samples.

(vii) Sample copies may be mailed to boxholders with each copy addressed in the simplified manner shown in § 123.4 (a) of this chapter. Copies so addressed and marked "Sample Copy" must be mailed to each boxholder on the rural or star route or to each boxholder at post offices not having city letter-carrier service. Copies may not be mailed only to nonsubscriber boxholders. All copies mailed in this manner are considered as samples even though some boxholders are subscribers. Such copies are individually addressed copies.

(2) Copies paid for by advertisers. Copies paid for by advertisers or others for advertising purposes, may be mailed only at the transient rate provided by § 132.1(c). When copies are being furnished free to the addressees, publishers nay be required to tell the postmaster the purpose for sending the copies, the amount that the publisher received for the copies, and whether the purchaser is an advertiser.

(3) Copies paid for as gifts. A minor portion of the subscription list may consist of persons whose subscriptions were

paid for as gifts. Subscriptions paid for by advertisers or other interested persons to promote their own interests are not gift subscriptions and subscriptions given free by the publishers are not gift subscriptions; postage at the transient rate in § 132.1 (c) must be paid on these copies.

(4) Exchange copies. A minor portion of the subscription list may consist of publishers to whom exchange copies are sent, one copy for another.

(5) Expired subscriptions. Copies will be accepted at the pound rates of postage for a period of 6 months after a subscription has expired, if the publisher attempts during the 6 months to obtain payment or a promise to pay for a renewal. Postage at the transient secondclass rate will be charged on copies sent after 6 months to persons who have not renewed.

(6) Advertisers' proof copies. One complete copy of each issue may be mailed at the pound rates to each advertiser in the issue to prove that the advertisements have been printed or, instead, copies may be mailed to the advertising representatives or agents of the publication. The number of proof copies of each issue sent under this section may not exceed the number of advertisers in the issue.

(7) Mailed by printer. Copies sent by a printer to a publisher are chargeable with postage at the third- or fourth-class rate, whichever is applicable, according to the physical characteristics of the publication and the weight of the package or parcel.

(g) Enclosures, additions, and novelty pages (1) Enclosures. Bills, receipts, and orders for subscriptions may be enclosed either loose or bound in. No other enclosures are permitted. They may be prepared in the following ways:

(i) Printed or written.

(ii) Printed on cards and envelopes, including business replies.

(iii) Arranged to include coin receptacles.

(iv) Arranged as combination forms for two or more second-class publications issued by the same publisher.

(2) Additions. Additions consist of words that may be added to the copies after they are printed or that may be placed on the envelopes or wrappers in which the copies are mailed. Only the following additions may be made:

(i) Name and address of the person to whom copies are sent.

(ii) Index figures of subscription book, either printed or written.

(iii) Printed title of publication and place of its publication.

(iv) Printed or written name and address without addition of advertisement of the publisher or sender, or both.

(v) Written or printed words or figures, or both, indicating the date on which the subscription will end.

(vi) Correction of any typographical

error.

(vii) A mark, except by written or printed words, to designate a word or passage to which it is desired to call attention.

(viii) The words "Sample Copy" when the copies are sent as samples.

(ix) The words "Marked Copy" when the copies contain a marked item or article.

(x) The words "Return Requested" when undeliverable copies are to be returned to the sender. See § 158.2(b) (4) of this chapter.

(xi) The number of copies enclosed may be shown on the wrapper or face of a package.

(3) Novelty pages. Novelty pages are printed sheets that may be used for purposes other than reading, or printed sheets with novel characteristics. Novelty pages must be prepared specifically for and intended as integral pages of newspapers or other periodical publications. Blank sheets may not be carried as pages. Envelopes and all other types of containers do not constitute printed sheets or portions thereof. The total number of novelty pages in the copies may constitute only a minor portion of the total pages. An excessive use of novelty pages may give a publication the characteristics, both as to format and purpose, of books, catalogs, or other third- or fourth-class mail. The following kinds of pages are examples of novelty pages that may be included in second-class publications:

(i) Printed pages bearing words, perforations, or symbols indicating they are for detachment.

(ii) Pages having printed pictures for cutting out.

(iii) Printed pages having blank spaces for writing or marking.

(iv) Pages having printed illustrations permanently pasted to them. Envelopes, wrappers, pockets, all other types of containers, and any contents thereof do not constitute printed illustrations.

(v) Pages with coupons or application of order forms occupying not more than one-half of the page.

(h) Advertisements. All advertisements in periodicals must be permanently attached. Pagination is not required in periodicals, but some or all pages of periodicals may be paginated or allowed for, or both, in any manner which indicates that pages containing advertisements are an integral part of the periodical, or of its separate editions, rather than an independent publication. Independent publications may not be inserted in periodicals as advertisements. The physical makeup of advertisements may include such features as the following:

(1) Different advertisements may occupy the same space in different copies of the same issue.

(2) Pages of advertisements may not be smaller than one-eighth of the size of the regular pages when they include coupons or application or order forms occupying one-half or less of the page as permitted by paragraph (g) (3) (v) of this section.

(3) Advertisements larger than the regular pages may be prepared for folding out horizontally, vertically, or both. (4) Advertisements may be die-cut or deckle-edged.

(5) Multiple page advertisements may be prepared for detachment as permitted by paragraph (g) (3) (i) of this section and may be held together by staples or other means separate from and in addition to the regular binding of the periodical.

(6) Advertisements may be printed upon sheets of paper, cellophane, foil, and other similar material.

(7) Advertisements may include statements that they are printed on the product or by means of the product of the advertiser.

[26 F.R. 11543, Dec. 6, 1961, as amended at 27 F.R. 6976, July 24, 1962, 27 F.R. 9057, Sept. 12, 1962, 28 F.R. 1469, Feb. 15, 1963, 29 F.R. 563, Jan. 23, 1964, 30 F.R. 7391, June 4, 1965, 30 F.R. 8224, June 26, 1965, 30 F.R. 8588, July 7, 1965; 31 F.R. 11101, Aug. 20, 1966. Redesignated at 31 F.R. 15350, Dec. 8, 1966] § 132.5 Second-class mailing privilege for news agents.

(a) Definition. News agents are persons or concerns engaged in selling two or more second-class publications published by more than one publisher.

(b) Information required from news agents. News agents must furnish postmasters evidence that copies of publications offered for mailing are entitled to second-class postage rates, and that they are sent to actual subscribers or to other news agents for the purpose of sale. A second-class imprint in the copies in sufficient evidence that a publication is entitled to be mailed at second-class rates. The addresses on bulk packages must show that the packages are sent to other news agents.

(c) Remailing without payment of postage. A news agent may not remove packages of copies from a post office, write an address on each copy, and return them to the office for dispatch or delivery without paying additional postage.

(d) When subject to transient second class rates. Unsold copies returned to publishers or other news agents, or copies sent to other news agents except for purpose of sale, or to persons not having subscriptions with the news agent, are subject to the transient second-class rate.

(e) Return of portions of unsold publications. The head or small portions of publications returned to publishers to show that copies have not been sold are subject to postage a third- or fourthclass rates according to weight.

[26 F.R. 11545, Dec. 6, 1961, as amended at 28 F.R. 1469, Feb. 15, 1963. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

§ 132.6 Ownership, management and

circulation statement.

(a) Requirements (as contained in 39 U.S. Code 4369). (1) Each owner of a publication having second-class mail privileges under 39 U.S. Code, 4354 (see § 132.2(b)) shall furnish to the Postmaster General at least once a year, and shall publish in such publication once a year, information in such form and detail and at such time as he may require respecting:

(i) The identity of the editor, managing editor, publishers, and owners;

(ii) The identity of the corporation and stockholders thereof, if the publication is owned by a corporation;

(iii) The identity of known bondholders, mortgagees, and other security holders;

(iv) The extent and nature of the circulation of the publication, including, but not limited to, the number of copies distributed, the methods of distribution, and the extent to which such circulation is paid in whole or in part: Provided however, That trade publications serving the performing arts need only to furnish such information to the Postmaster General; and

(v) Such other information as he may deem necessary to determine whether the publication meets the standards for second-class mail privileges.

The Postmaster General shall not require the names of persons owning less than 1 per centum of the total amount of stocks, bonds, mortgages, or other securities.

(2) Each publication having secondclass mail privileges under 39 U.S. Code 4355(b) (See § 132.2 (c)) shall furnish to the Postmaster General information in such form and detail, and at such times, as he requires to determine whether the publication continues to qualify thereunder. In addition, the Postmaster General may require each publication which has second-class mail privileges under 39 U.S. Code 4355(a) or 4356 (see § 132.1(c)) to furnish information, in such form and detail and at such times as he may require, to determine whether the publication continues to qualify thereunder.

(3) The Postmaster General shall make appropriate rules and regulations to carry out the purpose of this section, including provision for suspension or revocation of second-class mail privileges for failure to furnish the required information.

(b) Procedures. (1) All publishers or publications having second-class mailing privileges must file on or before the first day of October a statement on Form 3526, Statement of Ownership, Management and Circulation, in duplicate at the post office where the original secondclass permit is authorized.

(2) Publishers who file a statement under the provisions of paragraph (a) (1) of this section shall publish the complete statement in the second issue thereafter of the publication to which it relates.

EXCEPTION: Publications described in paragraph (a)(1)(iv) of this section are not required to publish circulation data. Publishers who file a statement under the provisions of paragraph (a) (2) of this section are not required to publish the statement.

(3) A publication which fails to comply with the requirements of this section within 10 days after notice by certified mail of the failure may not be mailed at (4) Postmasters shall:

the second-class rates of postage until it has come into compliance.

(i) Furnish publishers copies of Form 3526 at least 10 days prior to October 1.

(ii) Examine each statement filed in duplicate to see that it contains all of the information required by law.

(iii) Return incomplete or incorrect statements to the publishers and obtain

from them complete and correct statements.

(iv) Arrange the original copies alphabetically by titles and forward them to the Bureau of Operations, Classification and Special Services Division, Washington, D.C., 20260. Retain the duplicate copies in the files of the post office.

(v) Obtain a copy of the issue of each publication in which the required statement is published, and verify the correctness of the published statement. File the copy. Do not forward it to the Department. Promptly report to the Bureau of Operations, Classification and Special Services Division, any instance where a publisher fails to file or to publish a statement.

Publisher (Name and address)

Editor (Name and address)

Managing Editor (Name and address)

ments.

office.

POD Form 3526, Aug. 1963

§ 132.7

Marking of paid reading matter.

(a) Editorial or other reading matter contained in publications entered as second-class mail and for the publication of which a valuable consideration is paid, accepted, or promised shall be marked plainly "advertisement" by the publisher. (39 U.S.C. 4367)

(b) Whoever, being an editor or publisher, prints in a publication entered as second-class mail editorial or other reading matter for which he has been paid or promised a valuable consideration, without plainly marking the same advertisement, shall be fined not more than $500. (18 U.S.C. 1734)

[29 F.R. 563, Jan. 23, 1964. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

§ 132.8 Cancellation of second-class privileges.

(a) The Postmaster General may revoke the entry of a publication as second-class mail whenever he finds, after a hearing, that the publication is no longer entitled to be entered as second-class mail. (39 U.S.C. 4352b).

(b) The Director, Classification and Special Services Division, Bureau of

Operations, makes determinations concerning the suspension or revocation of a second-class entry subject to appeal and hearing requested by the publisher. He may call on a publisher from time to time to submit information bearing on the publisher's right to retain a second-class entry for his publication. When the Director determines that a publication is no longer entitled to its second-class entry, he issues a ruling of suspension or revocation to the publisher at the last known address of the office of publication stating the reasons therefor. The ruling becomes effective in 15 days from receipt by the publisher unless the publisher appeals therefrom. See paragraph (c) of this section.

(c) A copy of the procedures governing administrative appeals and hearings relative to the denial, suspension, or annulment of second-class mail privileges may be obtained from the Director, Classification and Special Services Division, Bureau of Operations. (See Part 204 of this chapter for the Rules of Practice in Proceedings Relative to