which meets the specifications in paragraph (b) of this section may be submitted for tentative approval. No meters of any model may be distributed or used for payment of postage until a complete unit made to production drawings and specifications has been submitted, tested, and approved, except as may be specifically authorized for preliminary field testing.

(2) Security examination. Each model meter proposed for manufacture will be examined to see that it incorporates all the mechanical features and safeguards required by paragraph (b) of this section and that it amply protects the Post Office Department against loss of revenue.

(3) Endurance test. Each model of meter proposed for manufacture must pass without error or breakdown the following-described printing cycle endurance test which includes operation of the printing mechanism with proper registration of the selected postage value in both the ascending and descending registers:

(i) (a) For meters that operate to 100 or more printing cycles per minute-4 million cycles.

(b) For meters that operate at less than 100 printing cycles per minute (and cannot be used interchangeably on power base machines that operate at 100 or more printing cycles per minute)-2 million cycles.

(ii) For multi- and omni-denomination meters, postage value selection elements shall be tested for one-half million operations. A complete operation includes selection of a value and return to zero.

(iii) Balance register lockout operation shall be performed at the start of, at intervals during, and at the end of the printing cycle test.

(4) Approval. The Department reserves the right before approval to require additional examination and testing as necessary to resolve any areas of doubt regarding the security or endurance characteristics of any meter which is proposed for manufacture.

(5) Deposit of specimen meter. One production model of each meter approved must be deposited with the Bureau of Operations, Post Office Department, and no changes affecting the basic features or safeguards may be made thereafter without departmental approval.

(6) Tests after approval. Additional meters from current manufacture must be submitted to the National Bureau of Standards, or the Post Office Department Laboratory, for test, at the expense of the manufacturer, as may be requested by the Bureau of Operations, Post Office Department.

(d) Safeguards-(1) Materials and workmanship. All meters must closely adhere to the quality in materials and workmanship of the approved production model and must be manufactured with suitable jigs, dies, tools, etc., to assure proper maintenance and interchangeability of parts.

(2) Breakdown tests. At reasonably frequent intervals the manufacturer must take meters at random from production and subject them to breakdown tests to make certain that quality and performance standards are maintained.

(3) Protection of printing dies and keys. During the process of fabricating parts and assembling postage meters, the manufacturer must exercise due care to prevent loss or theft of keys or of serially numbered postage printing dies or component parts, such as denomination printing dies, which might be used in some manner to defraud the Government of postal revenues. All serially numbered printing dies produced should be accounted for by assembly into meters or by evidence of mutilation or destruction. Postage printing dies removed from meters and not suitable for reassembly must also be mutilated beyond the possibility of use, or be completely destroyed.

(4) Destruction of meter stamps. All meter stamps printed in the process of testing dies or meters must be collected and destroyed daily.

(5) Inspection of new and rebuilt meters. All new and rebuilt meters must be carefully inspected before leaving the manufacturer's meter service station.

(6) Keys and setting equipment. The meter manufacturer must furnish keys and other essential equipment for setting his meters to all post offices under whose jurisdiction his meters are licensed for use. These items must be protected and shall not be furnished to persons not authorized by the Post Office Department to have them.

(e) Distribution-(1) Facilities. Authorized manufacturers must maintain adequate facilities for the distribution, control and maintenance of postage

meters. All such facilities are subject to inspection by representatives of the Bureau of Operations, Post Office Department.

(2) Controls. Each authorized manufacturer is required to:

(i) Retain title permanently to all meters of his manufacture except such as may be purchased by the Post Office Department for use in post offices.

(ii) Lease his meters only to mailers to whom meter licenses have been issued by the post office.

(iii) Supply only those meter slogan or ad plates that meet the requirements of the Department for suitable quality and content.

(iv) Deliver meters to post offices or postal stations only-never to mailers until set and sealed at a post office.

(v) Take reasonable precautions in the transportation and storage of his meters to prevent their reaching the hands of unauthorized individuals.

(vi) Report the loss or theft of any of his meters, or the recovery of any lost or stolen meters, immediately to the local postmaster, the local police, and the Regional Director for the region in which the meter is licensed for use.

(vii) Report to the appropriate Postal Data Center of the Post Office Department each time a meter is presented at a post office for initial setting or to be checked out of service-the report to include the name and address of the mailer, the post office or postal station through which it was handled, and the readings of both registers at the time the meter left or was returned to the manufacturer's possession.

(viii) Maintain at his headquarters a complete record by serial number of all meters manufactured, showing all movements of each from the time it is produced until it is scrapped, and the reading of the ascending register each time it is checked into or out of service through a post office. These records must be subject to inspection at any time during business hours by officials of the Post Office Department. These records may be destroyed three years after the meter is scrapped.

(ix) Cancel his lease agreement with any mailer whose meter license is canceled by the Department and remove his meter promptly.

(x) Maintain a permanent record by serial number of all meter keys issued to postmasters as well as those sections

of the manufacturer's establishment in which their use is essential, preferably in the form of signed receipt cards. Report the loss or theft of any of his meter setting keys, or the recovery of lost or stolen keys, to the Regional Director.

(xi) Examine each meter withdrawn from service for failure to record its operations correctly and accurately, and report to the Post Office Department the mechanical condition or fault which caused the failure.

(xii) Submit such other reports to the Post Office Department as may be required from time to time.

(f) Maintenance—(1) Replacement. The manufacturer must maintain his meters in proper operating condition for mailers by replacing them when necessary or desirable to forestall mechanical breakdown.

(2) Inspection of meters in use. (i) The manufacturer must have all of his meters in service with mailers inspected at least twice annually at approximate 6-month intervals. Inspection must be sufficiently thorough to determine that each meter is clean, in proper operating condition, is recording its operations correctly and accurately, that neither the post office seal nor any seal placed by the manufacturer to prevent access to the mechanism has been removed or tampered with, and that there are no other indications of tampering. The meter register readings must be compared with the control figure last recorded by the postal setting employee in the meter user's Form 3602-A, Daily Record of Meter Register Readings, to confirm the accuracy of the registers. If the post office control figure has not been recorded, obtain such figure immediately from post office to confirm accuracy of registers.

(ii) Any irregularities found in the operation of a meter at any time or any improper usage of a meter must be reported immediately to the mailer's postmaster, and appropriate steps must be taken to have the meter discontinued.

(3) Repair of internal mechanism. Repair or reconditioning of meters involving access to internal mechanisms must be performed only within a factory or suitable meter repair department under the direct control and supervision of the manufacturer. Meters must be checked out of service through the post office or setting before they are opened or any internal repairs undertaken.

(g) Notice of proposed changes in regulations. So far as may be consistent with the public interest, before any changes are made in the regulations of this part, the Post Office Department will give notice of any proposed changes sufficiently far in advance of the proposed effective date to enable persons who manufacture, or who may be interested in manufacturing, postage meters, a reasonable opportunity to be heard and to adjust their operations to accord with the proposed changes if they are adopted.

[26 F.R. 11564, Dec. 6, 1961, as amended at 28 F.R. 10489, Sept. 28, 1963; 29 F.R. 564, Jan. 23, 1964; 31 F.R. 4207, Mar. 10, 1966; 32 F.R. 7772, May 27, 1967, 32 F.R. 13455, Sept. 26, 1967. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

(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 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) of this chapter.

(b) Revocation. The permit may be revoked if used in operating any unlawful scheme or enterprise, for nonuse during any consecutive 12 months, or for any noncompliance with the regulations governing the use of permit imprints. The method of revoking permit is described in § 143.2 (b) of this chapter. [32 F.R. 2704, Feb. 9, 1967]

§ 144.2 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 § 144.4. 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. [32 F.R. 2704, Feb. 9, 1967]

§ 144.3 Content of permit imprints.

(a) First-class mail. Permit imprints must show City and State; date (may be omitted); the words "First-class mail" and "U.S. Postage paid" with the amount of postage; and permit number. The ZIP Code of the permitholder 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 permitholder'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 the 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 permitholder has permits at two or more post 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 permitholder 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. Permit imprint permits for the acceptance of company permit imprint mail at a

but who, to cooperate with the post office, presents 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 to complete the mailing, is less than the minimum.

The

(c) Preparation for mailing. 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 §§ 126.3(b) and 134.4(c) of this chapter. 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.

(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 sender'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 turned to the mailer.

re

(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. The postmaster will furnish a receipt for each payment on Form 3544. Credit for postage is not allowed. Postage on a mailing must be paid by only one method; that is, postage may not be paid partly in money and partly by postage stamps, except as provided in subparagraph (2) of this para

graph. 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 subparagraph (1) of this paragraph when the meter stamps do not fully pay the minimum per piece charge on bulk thirdclass 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 § 144.1 (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 paragraph (e) of this section) and a statement on Form 3602-PC for the meter payment portion (see § 134.4(b) (4) (ii) of this chapter) shall be filed by the mailer.

(g) Post office computation of postage-(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 When amount of postage required.

scales do not show exact weight of a single piece, weigh enough pieces to balance beam and divide total weight by number weighed.

Example:

20 pieces weigh exactly 31⁄2 ounces. 3.520 0.175 ounce.

(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 subparagraph (5) of this paragraph.) 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 X 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.