145.83 Applications. A Form 3626 must be submitted to the post office serving the mailer's plant. Applications may be obtained from the field division manager, mailing requirements, serving the mailer's plant. 145.84 Supporting Documentation. As part of the completed application, the mailer must submit the following: (a) Complete sample job, with all records to be part of the audit trail identified and labeled. (b) Detailed explanation of how each of the supplied records is to support the number of pieces and presort level rate of postage claimed on the mailing statements. (c) Detailed description of current internal quality control procedures as they relate to production and presentation of mailing, as required in Publication 407. 145.85 Approving or Denying Applications 145.851 Responsibility. The general manager, rates and classification center (RCC), serving the post office where the mailer's application was submitted, approves or denies applications for optional procedure. 145.852 Approval. If a decision is made to approve the application, the general manager, RCC, must prepare a written agreement between the Postal Service and the mailer. The agreement specifies the types of mailings that may be mailed under the OP Mailing System, including information such as the classes of mail, processing categories, permit numbers to be used on mailpieces, and whether the mailer is authorized to mail identical and/or nonidentical weight mailpieces. The RCC forwards the agreement to the field division general manager/postmaster who obtains the signatures of the mailer and the participating post offices, with instructions for administering the agreement. After the agreement is signed by the mailer and the participating post offices, it is returned to the general manager, RCC, for signature. A copy of the signed agreement must be provided to all participants. 145.853 Denial. If a decision is made to deny an application, the general manager, RCC, must notify the mailer, in writing, of the decision. The denial becomes effective 15 days from the mailer's receipt of the notice, unless a written appeal is filed within that time with the general manager, RCC, in accordance with 145.86. 145.854 Appeal. A mailer may appeal the decision of the general manager, RCC, to deny an application for an OP Mailing System. The appeal must be filed within 15 days of the mailer's receipt of the notice of denial and must contain additional information as to why the OP application should be approved. The general manager reviews the additional information to determine whether the application should be approved. If a decision is made to approve the application, the general manager must follow the procedures in 145.852. If the general manager still finds that the application should be denied, the file is forwarded to the Director, Office of Classification and Rates Administration, who issues a final written decision to the mailer. 145.86 Concurrent Authorization at Stage I of the System Certification Program 145.861 General. Stage I of System Certification is a comprehensive program for documenting mailer ability to conform to the OP requirements. 145.862 Authorization. Any mailer approved after October 1, 1990, to mail under an OP is automatically certified at Stage I of the System Certification Program. Mailers who mail under an OP approved before October 1, 1990, are certified only if a determination is made that they would qualify if they reapplied under the current regulations. 145.863 List of Stage I Certified Mailers. The Postal Service periodically publishes a list of the names of mailers certified under 145.8 at Stage I of the System Certification Program. Mailers who prefer not to have their company names included on the list must notify the Postal Service at the time of certification. 145.87 Suspension or Cancellation of OP Mailing System and Agreement 145.871 Reasons for Cancellation. OP Mailing System authorization may be canceled under any of the following conditions: a. The mailer may cancel the OP agreement with the Postal Service at any time by notifying the administering post office in writing. b. The general manager, RCC, may cancel the OP agreement under any of the following conditions: (1) At any time it is established that the mailer has intentionally provided misleading or incorrect data to avoid payment of postage; (2) When no mailings have been made under the OP agreement during any consecutive 12-month period; (3) When the mailer continually fails to comply with the requirements of the DMM, Publication 407, or the OP agreement; or (4) When it is determined from the 2-year renewal audit that the OP agreement is no longer justified or the mailer is not complying with the provisions of the agreement. 145.872 Cancellation Procedure. If a decision is made to cancel an OP agreement, the general manager, RCC, must notify the mailer, in writing, of the decision. The cancellation becomes effective 15 days from the mailer's receipt of the notice unless the mailer files a written appeal within that time with the general manager, RCC. The appeal must contain additional information as to why the optional procedure should not be canceled. The general manager reviews the additional information to determine whether the OP agreement should be continued. If a decision is made to continue the OP agreement, the general manager notifies the mailer, in writing, of the decision. If a decision is made by the general manager to deny the appeal, the appeal and the additional information furnished by the mailer is forwarded to the Director, Office of Classification and Rates Administration, who issues to the mailer the final written decision. 145.873 Suspension. An OP Mailing System may be suspended by the general manager, RCC, at any time, pending investigation, when there is an indication that postage is not being fully paid. 145.88 Mailing Records 145.881 Mailer's Responsibility. Mailers are responsible for the submission of accurate statements of mailing and the maintenance of accurate records. The Postal Service audit is directed only at detecting underpayment. The burden rests with the mailer to prove any overpayment of postage. 145.882 General Requirement. Verification of postage is normally done through a Postal Service audit of records maintained by the mailer as a normal requirement of business. a. Records used for verification of optional procedure mailings must be records which are, as a matter of routine, also maintained for production of other than optional procedure mailings. b. All records must be labeled, as they are created, as to the mailing (and/or order) to which they relate. 145.883 Record Retention. The mailer must prepare a mailing record for each mailing and maintain it at a central location for 1 year. This requirement enables the Postal Service to audit the accuracy of the computations for individual mailings as well as for the aggregate of all mailings. Each mailing record must contain a. sample of the mailpiece, b. mailing statement, and c. sufficient source documents to permit reconciliation with the mailing statement. 145.884 Additional Records. Sufficient additional records must be retained by the mailer to provide at least two methods of verifying the mailings which are acceptable to the region. The following are records which may be appropriate to meet this verification requirement: a. Purchase order from mailer's client. b. Production order on quantity. c. Job order on quantity. d. Machine production records (register readings). (1) Assemblers. (2) Stuffing machines. (3) Collators. (4) Printers. (5) Wrapping and bundling machines. (6) Stitching machines. e. Weigh tickets. (1) Pallets. (2) Consolidated weights. f. Billing to customer. g. Computer list of addresses. h. Inventory records. 145.885 Running Summaries. The mailer must maintain running summaries of mailings made in which the day of mailing, quantity, individual weight, total weight, and total postage of each mailing are recorded. 145.9 Alternate Mailing Systems (AMS) 145.91 Purpose. The purpose of this section is to provide for situations where other systems for the acceptance of permit imprint mail, not specifically outlined in 145.7 or 145.8, satisfactorily provide for proper postage payment and mail preparation without verification by weight. 145.92 General Qualification Requirements and Request Procedures 145.921 AMS Request. Mailers may request authorization to pay postage by an alternate method by submitting a written request to the postmaster at the office of mailing. The request must include (a) a complete description of the types of matter to be mailed; (b) the proposed method of paying postage; (c) the proposed method to determine correct mail makeup; and (d) a statement of the mailer's reasons for requesting the alternate system. 145.922 Postage Payment. All postage must be paid in accordance with 145.11, unless an alternate system is approved in writing by the general manager, rates and classification center (RCC). 145.923 Cost/Benefit. There must be no additional cost to the Postal Service to administer the AMS agreement in excess of the costs of current mail acceptance procedures for the mail in question. The applicable field division performs a detailed cost/benefit analysis that must be included in the supporting documentation provided to the general manager, RCC. 145.924 Mailer Quality Control. The mailer must implement a quality control program acceptable to the Postal Service. The program must demonstrate that accurate documentation is provided and that mail is properly prepared. The supporting documentation must include a detailed description of the proposed quality control procedures. Each mailing under an AMS agreement must be accompanied by a statement by the mailer certifying that a quality control verification has been performed. 145.925 Application Procedures. The following procedures apply to the submission of an application for an AMS authorization: a. The mailer must submit to each entry post office a written request and supporting documentation that includes all the information outlined in 145.921. b. The entry office postmaster reviews and evaluates the AMS request, supporting documentation and system description, provides a letter of recommendation to approve or disapprove the AMS (the letter must include a statement specifying the reasons for the decision), and forwards the entire package to the field division general manager/postmaster. c. The field division general manager/postmaster reviews the AMS request, supporting documentation and system description, conducts a detailed cost/benefit analysis, provides a letter of recommendation to approve or disapprove the AMS (the letter must include a statement specifying the reasons for the decision), and forwards the entire package to the appropriate general manager, RCC, who makes the final decision. d. The general manager, RCC, makes the initial decision to grant or deny an AMS authorization, pursuant to 145.926 and 145.927. An alternate mailing system is not valid and may not be implemented before an AMS agreement is prepared and signed by the general manager, RCC. Representatives from the division and/or RCC may visit the mailer's plant to review the proposed operation as part of this review procedure. 145.926 Conditions of Authorization. The conditions of authorization are as follows: a. Authorization to use AMS may be granted only when its adoption is in the best interests of the Postal Service. b. Overpayments or underpayments identified during postal verification require a postage adjustment. Verification samples are deemed to be representative of the entire mailing and postage adjustment calculations are based on the total mailing. c. The mailer must pay a penalty whenever the sampling verification determines that the postage error exceeds 1.5% of the corrected postage. The total corrected postage for the entire mailing and a penalty equal to 10% of the postage error calculation are deducted from the permit imprint advance deposit account. d. An alternate mailing system is not valid and may not be implemented without a signed AMS agreement. e. The agreement must specify the terms and conditions for use of AMS, including a time limit not to exceed 2 years. f. Concurrent authorization at Stage I of the System Certification Program (1) General. Stage I of System Certification is a comprehensive program for documenting mailer ability to conform to the requirements of an AMS. (2) Authorization. Any mailer approved after October 1, 1990, to mail under an AMS is automatically certified at Stage I of the System Certification Program. Mailers who mail under an AMS approved before October 1, 1990, are certified only if a determination is made that they would qualify if they reapplied under current regulations. (3) List of Stage I Certified Mailers. The Postal Service periodically publishes a list of the names of mailers certified under 145.9 at Stage I of the System Certification Program. Mailers who prefer not to have their company names included on the list must notify the Postal Service at the time of certification. 145.927 Approving or Denying Authorizations. The procedures for approving or denying authorizations are as follows: a. Responsibility. The general manager, rates and classification center (RCC), serving the post office where the mailer's request was submitted, approves or denies a written request for AMS. b. Approval. If a decision is made to grant an AMS authorization, the general manager, RCC, prepares, signs, and forwards the agreement containing instructions for its administration, to the field division general manager/postmaster, who ensures that (1) the agreement is signed by the mailer and the administering postmaster, and (2) all affected parties receive a copy of the signed agreement. The division returns the original signed agreement to the RCC serving the administering post office. c. Denial. If a decision is made to deny an authorization, the general manager, RCC, must notify the mailer, the administering post office, and the field division, in writing, stating the reason for denial. The mailer may appeal a denial within 15 days from the receipt of the notice by the mailer, by filing a written appeal (containing additional evidence as to why the AMS request should be approved), with the Director, Office of Classification and Rates Administration of the Postal Service. The Director reviews the appeal and issues the final agency decision. The Director notifies the mailer, the administering post office, the field division, and the RCC of the decision. 145.928 Revocation. The general manager, RCC, may revoke an AMS authorization for any of the following reasons: a. If the mailer has provided incorrect data for mailings and appears unable or unwilling to correct all problems; b. If it is discovered that the mailer is not properly conducting the required quality control verification procedures; c. If the AMS no longer meets the criteria established by this regulation and those outlined in the agreement; d. If there have been no mailings presented under AMS for more than 6 months (except as provided in the service agreement); or e. If the mailer continues to present mailings that are improperly prepared and/or proper postage is not paid. 145.929 Revocation Procedures. The following procedures apply to revocation: a. Notification. Whenever grounds for revocation set forth in 145.928 exist, the field division general manager/postmaster must notify the mailer, in writing, of the nature of the discrepancy and the need for corrective action prior to any revocation action. The mailer and the division manager agree on the actions to be taken and set up an implementation schedule. The general manager, RCC, prescribes the time period for corrective action. When the mailer completes the necessary corrective measures to bring the system into compliance, the division manager must be notified and a follow-up review conducted. Failure to correct identified problems is sufficient grounds to revoke a mailer's AMS authorization. b. Recommendation. If, after notification, the mailer is unable or unwilling to correct the discrepancies cited by the division manager within the allotted timeframe, the division manager must advise the mailer in writing that a recommendation to revoke the authorization to mail under AMS was forwarded to the general manager, RCC. c. Recommendation Review. The general manager, RCC, reviews the recommendation and supporting documentation to determine whether revocation is appropriate. The general manager makes the initial decision to revoke an AMS authorization. If the general manager decides to revoke the AMS authorization, the mailer must be notified in writing of the reason for the decision, with a copy to the postmaster and field division. d. Appeal Rights. The mailer may appeal this decision in writing within 15 days from the date of receipt of the notice. The mailer's appeal should contain evidence explaining why the AMS authorization should not be revoked. The appeal must be filed with the general manager, RCC. The mailer may continue to present mail under the AMS pending a decision on appeal. e. If evidence provided by the mailer indicates that the authorization should be continued, the general manager may reverse the decision. f. If the general manager does not find sufficient evidence exists to reverse the revocation, the appeal is forwarded to the Director, Office of Classification and Rates Administration. The Director issues the final agency decision and notifies the mailer, postmaster, the field division, and the RCC. The revocation decision is effective 15 days after receipt by the mailer. 145.93 Mailgram Messages 145.931 Contractual Agreement. By contractual agreement between the United States Postal Service and Western Union, Mailgram messages are electronically transmitted by Western Union to a post office post office for processing and delivery to the addressee. 145.932 Description. Western Union Mailgram messages are enclosed in window envelopes that bear in the upper right corner of the address side the Mailgram message imprint illustrated in 145.42a. The envelopes also bear on a blue background the registered trademark "Western Union Mailgram," with the Postal Service emblem located immediately to the right. 145.933 Payment of Postal Charges. Postal charges for Western Union Mailgram messages are paid centrally at USPS Headquarters by Western Union. Local post offices are not to collect postage on matter received for delivery in Western Union Mailgram message envelopes. 146 Prepayment and Postage Due 146.1 Postage Payment 146.11 Prepayment Required. Postage on all mail must be fully prepaid at the time of mailing, with the following exceptions: a. Business reply mail, or metered reply mail handled as business reply mail (see 917). b. Federal Government and free mail (see 137). c. Certain mail for the blind (see 135). d. Mail sent by members of the Armed Forces (see 134). e. Keys and identification devices returned to owners (see 611.13). 146.12 Mailable Matter Without Postage Found in the Mail 146.121 General. Matter of any class, including that for which special services are indicated (see 911.26 for registered mail), received at either the office of mailing or office of address without postage (see 146.4) is endorsed "Returned for Postage" and returned to the sender without an attempt at delivery. If a recipient of mail attempts to return or forward the mail without payment of additional postage when required, the mail is endorsed "Returned for Postage" and returned to the recipient. If no return address is shown, or the delivery and return addresses are identical, or the delivery and return addresses are different but actually for the same person or organization, the piece is disposed of under 159.4. For forwarding and returning mail that does not need additional postage, see the chapters covering each class of mail and Exhibit 159.151a through 159.151f. 146.122 Metered Reply Mail. Metered reply mail, which is prepared in accordance with 144.112, for the mailer's inadvertent failure to imprint a meter stamp on the envelope, is treated as business reply mail (see 917), and is delivered upon payment of postage and business reply fee of $0.40 per piece. 146.123 Matter Intended for Nonpostal Delivery. Mailable matter not bearing postage intended for delivery by a private delivery company but found in USPS collection boxes or other receptacles designated for the deposit of mail, USPS facilities, or USPS mail processing operations, must be handled as follows: a. Promptly notify the private delivery company to pick up the matter by the close of the next workday. b. If the company fails to pick up the matter, return it to the sender, postage-due. Compute the postage-due amount (see 146.222c) from the point at which the unpaid matter entered the mailstream to the sender's location. If the entry point is unknown, compute the postage due from where the matter was first found in the mailstream to the sender's location. c. If the sender cannot be identified or refuses the matter, follow the procedures in 159.5. Do not deliver such matter to the addressee, or provide address-correction or forwarding service. 146.13 Insufficient Prepayment 146.131 Treatment at Post Office. Mail of any class, including that for which special services are indicated, except Express Mail (see 286), registered mail (see 911.26), nonstandard First-Class Mail (see 353.4), and nonstandard single-piece third-class mail (see 629.234), received at either the office of mailing or office of address without sufficient postage is a. marked to show the total deficiency of postage and fees, b. dispatched promptly to the addressee by means of the regular or special service indicated, c. delivered to addressee on payment of the charges marked on the mail. Note: When quantity mailings of 10 or more pieces are received at the office of mailing without sufficient postage, the mailer is notified, without charge, preferably by telephone, in order that the postage charges may be adjusted before the mail is dispatched. 146.132 Undeliverable and Refused Pieces. When the addressee refuses to pay the deficient postage, or when the mail is undeliverable for any other reason, it is handled as follows: a. First-Class Mail bearing a return address is returned to the sender with the reason for nondelivery, "Returned for Additional Postage." The sender may affix the additional postage due, line through the reason for nondelivery, and remail the piece. b. Mail other than First-Class bearing a return address is returned to the sender and delivered on payment by the sender of the total of the deficient postage, the forwarding postage, if any, and the return postage. c. All mail which does not bear a return address is disposed of in accordance with 159. 146.133 Shortpaid Express Mail. The methods for handling insufficiently prepaid and/or undeliverable Express Mail shipments are covered in 273.42. Express Mail shipments are never endorsed "Postage Due" and collection of deficient postage is never attempted from the addressee. 146.14 Postage on Mail Insufficiently Prepaid. Postage stamps affixed 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 are, when the mail is again presented for mailing, accepted in payment of postage to the amount of their face value. 146.15 Parcels Containing Written Matter. At the office of address, parcels subject to postage due are handled as follows: a. Postage due at the First-Class rate is charged on parcels consisting mainly of First-Class matter. b. Postage due is charged at the following rates for parcels in which a minor portion of the contents is nonpermissible written matter: Difference Between First-Class Rate and Rate PaidPostage-Due Charge $0.01-$0.25Full amount 0.26-1.00$0.25 1.01 or more1.00 146.2 Mailable Matter Not Bearing Postage Found in or on Private Mail Receptacles 146.21 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. 146.22 Collection of Postage 146.221 General. Except as permitted in 156.58, any mailable matter not bearing postage found in, upon, attached to, supported by, or hung from the private mail receptacles described in 151.1, is subject to the payment of the same postage as would be paid if carried by mail. For mailable matter not bearing postage found in the mail, see 146.12. 146.222 Distribution to Less Than Complete Route. When there is a distribution of pieces to some, but not all, addresses on a route, they are handled as follows: a. Each piece is taken to the delivery unit. b. The date and approximate time of finding are recorded on the piece. If the address where the piece is found is different from the address, if any, on the label, the address where found is recorded, as well as the approximate time and date. c. Postage on each piece found is computed as follows: (1) First-Class Matter. First-Class rates are applied to matter which would require First-Class postage if mailed. (2) Second-Class Publications, Books, Records, Circulars, Catalogs, and Merchandise. If the piece weighs less than 16 ounces, either the single-piece third-class rate or the applicable fourth-class rate, whichever is lower, is applied (see 611.12). If the piece weighs 16 ounces or more, the applicable fourth-class rate is applied. 146.223 Distribution to All or Substantially All Addresses on a Route. If there is a distribution of identical pieces to all or substantially all addresses on a route, only two copies, each dated, initialed, and marked with the address where found, are taken to the office, along with a written notation of the total number of identical pieces observed on the route. The postmaster must prepare a memorandum showing the details to support the claim of postage, computed in accordance with 146.222c. 146.224 Request for Payment a. If there is reason to believe that a private delivery firm or an individual within the delivery area of the post office is responsible for the delivery, the local postmaster must notify the firm or individual as promptly as possible concerning the number of pieces and the amount of postage due. The applicable provisions of this manual are explained. If the firm or individual receiving a request for postage objects that these regulations have not been applied properly in the particular case, the facts are investigated before any action is taken. If, within 5 days after receiving a request for the postage, or within 5 days after receiving a renewed request following investigation of an objection, the firm or individual agrees to pay the postage due, payment is accepted and the articles are delivered to the addressees. The firm or individual paying the postage may choose to redeliver the pieces rather than have the Postal Service deliver them. Receipt for payment is handled in accordance with 146.224c. If the pieces are found to have been removed improperly, they are delivered without postage charge. b. If the firm or individual responsible for delivery is not known or if the firm presented with a request fails to pay the postage, the pieces are returned as promptly as possible to the publisher or manufacturer, postage-due, with each piece endorsed to show that the articles were found in or on the addressee's mailbox without postage. If a publisher or manufacturer provides the name and telephone number of a person to contact about pieces found in mailboxes and orally or in writing guarantees payment of postage, the pieces are not returned but are redelivered promptly to the addressees. If the pieces are refused by the publisher or manufacturer or if the publisher or manufacturer is unknown, the procedures in 159.5 must be followed. c. If the firm or individual pays the postage with cash, check, or money order, a postage-due meter strip for the amount collected is affixed to a sheet of paper as a receipt. If payment is by uncanceled stamps or postage meter strips, the stamps or meter strips are affixed to a sheet, canceled, and returned as a receipt. No other receipt is issued. 146.23 Report to Another Office. If the person or firm or distributor responsible for the impermissible use of the private mail receptacles is located within an area served by another post office, a sample piece is sent with a report of the facts to the postmaster at that location with a request for action under 146.22. 146.24 Repeated Violations. If the person or firm or distributor responsible for the impermissible use of the private mail receptacles continues the impermissible use after having been notified that the use is impermissible, the postmaster submits a sample piece and a report of the facts (see 146.22) to the postal inspector-in-charge. 146.3 Collection of Postage Due 146.31 Collected on Delivery. Customers must pay for postage-due mail, in cash only, prior to delivery to them. However, postage on quantity mailings found in private mailboxes is collected as provided in 146.22. 146.32 Use of Postage Stamps, Permit Imprints, or Customer Meter Strips. Postage stamps, permit imprints, and customer meter strips may not be used for payment of postage due, except by Government agencies as provided in 137.265b. 146.33 Advance Deposit. If postage-due collections amount to approximately $10 or more every 60 days, payment may be made by advance deposits of money. 146.4 When Not Collected. When it is apparent from the impression of a cancellation that a postage stamp or stamps have been wholly or partially lost, the piece must be handled, in the absence of contrary evidence, as if correct postage had been paid for the class and weight of the piece. Handle registered mail requiring additional postage in accordance with 911.26. 147 Exchanges and Refunds 147.1 Exchanges of Stamps 147.11 Unserviceable Stamps 147.111 Post Office Mistake. Mistakes in selling damaged, defective, or otherwise unserviceable stamps may be corrected by the post office by exchanging stamps at full value. 147.112 Damaged in Customer's Possession. Stamps which are damaged or otherwise become unusable for postage because of humidity, moisture, or other causes while in a customer's possession may be exchanged at full value only for an equal number of stamps of the same denomination. Unserviceable stamps accepted from customers under these conditions must be those which have been on sale at post offices within 12 months preceding the transaction. Quantities of the same denomination in excess of $10 must be returned in the same configuration as when purchased; i.e., sheets, coils, booklets. Each such transaction is further limited to stamps with a total value of $100 or less from each customer. 147.113 Determining Quantities. The stamps presented for exchange must be in substantially whole condition, with the denomination evident. If customers return partially stuck-together coils of stamps and the stamps cannot be counted, postmasters may accept the customer's estimate of the number of stamps remaining in the coil and give equal quantities in exchange. 147.114 Appeal. Customers denied an exchange for damaged stamps may appeal the postmaster's decision to the Consumer Advocate, U.S. Postal Service (for address, see Address List in Appendices). 147.12 Purchaser's Mistake. Mistakes made by purchaser in buying adhesive stamps of the wrong denomination or stamped envelopes or postal cards of the wrong kind, size, or denomination may be corrected by exchanging stamps at full value. Only full panes of stamps, coils of stamps in the original sealed wrappers, full boxes of stamped envelopes, or original sealed packs of postal cards may be exchanged. Any customer exchanging $250 or more of such stock must furnish proof of identity (driver's license, military I.D., or other valid identification) and must present the stock for exchange to the postal unit at which his or her mail is delivered. This procedure allows the clerk exchanging the stock to validate the customer's address. A record of each transaction of $250 or more must be made, showing name of customer, type of I.D., business firm, address, amount, and denominations exchanged. Any suspicious circumstances should be reported immediately to the local postal inspector or inspector-in-charge. 147.13 Unserviceable Postal Stationery and Unused Precanceled Stamps. Unserviceable and spoiled stamped envelopes or postal cards, if uncanceled, and unused precanceled stamps and postal cards, are exchanged for other postage-stamped paper as follows: a. Stamped envelopes (mutilated no more than is necessary to remove contents), for postage value plus value of postage added as a result of rate increase or for additional service. b. Unmutilated aerogrammes (air-letter sheets), for postage value, less $0.01 for each aerogramme redeemed. c. Unmutilated single and double postal cards, for 85% of postage value, plus full value of postage added as a result of rate increase or for additional service. (1) Either half of a double postal card may be redeemed, if the double card has been printed and cut for use as single cards. (2) Unused double postal cards printed for reply purposes should not be separated; however, if they have been separated in error and the purchaser presents both halves, the cards may be redeemed. (3) Reply halves of double postal cards which have been returned to sender outside of the mail are not redeemable by the original purchaser, even though the reply half received no postal service. d. Sheet postal cards spoiled in the process of cutting to size, for 85% of postage value plus full value of postage added as a result of rate increase or for additional service, if all cut sections are submitted. e. Stamps affixed to commercial envelopes and postcards, for 90% of postage value. Envelopes and postcards must be in a substantially whole condition and in lots of at least 50 of the same denomination and value. f. Unused precanceled stamps in full coils and in full sheets redeemed from precanceled permit holders, for 90% of postage value. Note: Stamped envelopes or aerogrammes (air-letter sheets) with a printed return address and postal cards with any printed matter of the purchaser, may be exchanged only by the purchaser. If there is no purchaser's printing, they may be exchanged by any responsible person. When redemption cannot be made at time of presentation, the postmaster must furnish a receipt on Form 3210 for uncanceled, unserviceable, or spoiled envelopes or postal cards or for unused precanceled stamps left in his or her custody. 147.14 Conversion of Postage Stamps to Other Forms of Postage 147.141 General. Mailers may submit postage stamps for conversion to a meter-setting or advance deposit for permit imprint mailings under the conditions in 147.142 through 147.146. A conversion charge of 10% of the face value of the stamps or $250, whichever is greater, is deducted when the stamps are converted. No part of any amount applied to a meter-setting or trust account from the conversion of postage stamps is later refundable in cash or by any other means. 147.142 Where to Apply. All requests to convert postage stamps to meter or permit imprint postage must be sent to the general manager, Stamp Manufacturing Division, USPS Headquarters. The general manager forwards a copy of the request to the postal inspector-in-charge of the division where the requestor's post office is located. 147.143 What May Be Converted. Only full panes of stamps, or coils of stamps in the original sealed wrappers, are accepted for conversion. Commemorative stamps issued no earlier than 1 year prior to the date of the request for conversion or issues of regular stamps which have not been officially withdrawn from sale at the Philatelic Sales Division are accepted under these conditions. 147.144 Conversion Rate. The amount of postage applied to a meter-setting or permit imprint trust account through conversion is the lesser of the full face value of the stamps submitted, minus 10%, or full face value minus $250. 147.145 Submittal of Request. The customer must submit a letter to the General Manager, Stamp Manufacturing Division, requesting conversion of the stamps to meter or permit imprint postage. The letter must include the name, denomination, quantity, and value of postage stamps for which conversion is requested, and name of post office where the stamps were purchased. Evidence of purchase for the stamps must also be included with the request. 147.146 Approval. The general manager, Stamp Manufacturing Division, reviews the request and may ask the mailer to submit additional records to support the information in the request. The general manager approves or denies the request. If the conversion is authorized, the postmaster is advised of the proper procedures for accepting the postage stamps and making the required accounting entries. The general manager determines the post office which has the capabilities to destroy the postage stamps. The credit is applied to the post office where the mailer has his or her meter set or deposits permit imprint mail. 147.15 Nonexchangeable. The following are nonexchangeable: a. Adhesive stamps, unless mistakes were made in purchasing, stamps were defective, stamps were affixed to commercial envelopes and postcards, or as provided in 147.14. b. Stamps cut from postal cards, stamped envelopes, or aerogrammes (air-letter sheets). c. Parts and pieces of postal cards. d. Postal cards, stamped envelopes, and aerogrammes received for reply purposes. e. Mutilated and defaced stamps. 147.2 Refunds of Postage and Fees 147.21 General 147.211 When postage and special or retail service fees have been paid and no service has been rendered, or when the amount collected was in excess of the lawful rate, a refund may be made under the conditions set forth in this section and under the following procedures: a. Requests for refunds submitted at a time other than the time of mailing (including requests for refunds for postage and fees paid by stamps, permit imprints, or meter impressions, requests for refunds of unused meter impressions and unused units set in meters, and requests for refunds for retail services and fees not paid by means of stamps, permit imprints, or meter impressions) are handled in accordance with 147.3. b. Requests for refunds of postage made at the time of mailing are handled in accordance with 147.4. 147.212 The Postal Service is assumed 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. 147.213 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. 147.214 See 147.222 and 147.31 for special provisions for refunding the postage value of unused meter stamps. 147.215 A postage refund may be provided the sender for First-Class, third-class single-piece, and fourth-class mail torn or defaced during processing by the Postal Service to such extent that identification of addressee or intended delivery point cannot be made. This applies only when the failure to process and/or deliver is the fault of the Postal Service. Where possible, the damaged item is returned with the postage refund. 147.216 Postmasters grant or deny requests for refunds in accordance with 147.2. Guidance is available from the RCC in difficult cases. 147.22 Amount Allowable 147.221 A full refund (i.e., 100%) is made under the following conditions: a. When the Postal Service is at fault. b. For the excess when postage or fees have been paid in excess of the lawful rate. c. When service to the country of destination has been suspended. d. When postage is fire-scarred while in the custody of the Postal Service, including fire in a letterbox, and the mail is returned to sender without service. e. When special delivery stamps are erroneously used in payment of postage, and the mail is returned to the sender without service. f. 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. g. 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. h. For fees paid for return receipts or for restricted delivery when the failure to furnish the return receipt or its equivalent, or erroneous delivery, or nondelivery is due to the fault or negligence of the Postal Service. i. 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. j. When Customs clearance and delivery fees are erroneously collected. k. 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. l. When Express Mail is not delivered according to the terms of the service standard in 222.2, 223.3, 224.4, and 230. 147.222 A partial refund is made under the following conditions: a. When complete and legible unused meter stamps are submitted within 1 year from the dates appearing in the stamps (see 147.31). b. When the face value of the stamps does not exceed $250, refunds of 90% are made. c. When the face value of the stamps exceeds $250, refunds are made for the face value of the stamps, less $10 per hour for the actual hours required to process the refund, with a minimum charge of $25 deducted from the amount of the refund. d. The employee processing the refund must enter the following endorsement on the reverse of Form 3533: "I certify that (number) hours were required to process this refund." The certifying employee and a witnessing employee must both sign this certification. 147.223 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 surface rate chargeable from mailing office to interception point and return is refunded. 147.23 Unallowable Refunds. No refund is made in the following instances: a. For an application fee to use permit imprints, b. 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, c. For unused adhesive stamps, see 147.11 and 147.12, or d. For adhesive stamps affixed to unmailed matter. 147.24 Application for Postage Refund 147.241 Customers who wish to request a refund must submit an application on Form 3533 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 a refund is desired. An adverse decision by the postmaster may be appealed through the postmaster to the appropriate general manager, rates and classification center (RCC). 147.242 Requests for refunds for optional-procedure mailings must be submitted to the general manager, RCC. 147.3 Requests for Refunds for Payment of Excess Postage Not Submitted at the Time of Mailing 147.31 Meters and Meter Stamps 147.311 Postage Adjustments. 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 is 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 is made only if the registers are legible, or can be reconstructed by the meter manufacturer. 147.312 What to Submit a. Unused meter stamps are considered for refund, only if (1) the meter stamps are complete and legible; (2) they are on the portion of the envelope or wrapper bearing the name and address of the addressee, including the window on a window envelope; (3) they are accompanied by an application on Form 3533; and (4) they are submitted for refund within 1 year of the dates appearing in the stamps. b. If a portion of the stamp is printed on one envelope or card and the remaining portion on another, the two must be fastened together to show that the two portions represent one stamp. c. Meter stamps printed on labels or tapes which have not been stuck to wrappers or envelopes must be submitted loose. d. Refunds are allowable for stamps on metered reply envelopes only when it is obvious that an incorrect amount of postage was printed thereon. e. 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 was made to deliver. 147.313 What Not to Submit a. Meter reply envelopes or cards paid at the proper rate of postage. b. Meter stamps printed on labels or tape which have been removed from wrappers or envelopes. c. Meter stamps without the name of the post office and state. d. Meter stamps without the date printed on tape (see 144.47). e. Meter stamps printed on mail which was dispatched from the mailing post office in regular course and returned to sender as undeliverable, including mail marked "No such post office in state named." f. Meter stamps on mail addressed for local delivery and returned to sender after directory service was given or effort was made to deliver. 147.32 Processing Refund Applications for Postage and Fees Paid by Postage Stamps, Meter Impressions, Permit Imprints, or Rejected Personalized Envelopes 147.321 At offices with 950 or more revenue units, the accepting employee does the following: a. Reviews the application and supporting papers. b. If a refund is due, completes the "Verification of Refund" on Form 3533. c. Pays the applicant in cash, except for meter stamps, from official funds on hand, if practicable to do so and if the refund is made in person. For all refunds for meter stamps greater than $10, use a no-fee money order or a Treasury check payable to the registered license holder of the meter serial number from which postage is being refunded. Refunds for meter stamps for $10 or less may be made in cash. d. Has the payee sign the receipt on Form 3533. e. If requested, or if refund is to be mailed, by a Treasury check, or, if less than $700, by no-fee money order in accordance with Handbook F-1, 720, records the check or money order number on the receipt portion of Form 3533 instead of obtaining the payee's signature. When the amount of the refund is less than $2, a check or money order is not issued unless the payee or his or her representative is physically unable to come to the post office. f. Retains the receipted copy of Form 3533 in the files to support the office copy of the statement of account. g. Destroys envelopes, wrappers, or other evidence submitted with the application, as provided in 147.332a(4). h. If the application is not approved, returns it to the applicant with the supporting papers and a written explanation. i. Enters the amount refunded in AIC 536(D), Postage and Fees Refund, as specified in Handbook F-1. 147.322 At other offices, the accepting employee does following: a. Handles the application in accordance with 147.321. b. If no witness is available for signature in Part II, "Verification of Refund," Form 3533, has the payee sign in the appropriate space. c. Records the refund as a write-in entry on a blank line in the disbursements section of the cashbook, and show AIC 536(d), Postage and Fees Refund, for the number and title of the account, as specified in Handbook F-1. d. If the amount to be paid is greater than the $700 limit for money orders, and the processing post office does not issue Treasury checks, sends Form 3533 with all supporting papers and a statement certifying the claim to the management sectional center (MSC). e. Ensures that the MSC processes the application as specified in 147.321 and issues the Treasury check. If the application is disapproved, returns the complete file to the postmaster at the office of application with a written explanation. The application office forwards the explanation to the applicant. 147.33 Processing Refund Applications for Metered Postage 147.331 For Meters Checked Out of Service a. Verification at All Offices. The accepting employee does the following: (1) Verifies the amount by examining meter registers. (2) Fills out Part V, Form 3533, if a refund is due. (3) If the manufacturer's meter checkout form has all the required documentation, uses it instead of Form 3533. (4) Refunds the full value of the unused postage in accordance with 147.331b(1) or 147.331b(2). b. Refund (1) At offices with 950 or more revenue units, the employee handles the refund of metered postage in accordance with 147.321. (2) At other offices, the employee handles a refund of metered postage in the manner prescribed in 147.322. 147.332 For Unused Meter Stamps a. At offices with 950 or more revenue units, the employee does the following: (1) Reviews the application and examines the meter stamps submitted. (2) Handles the refund as outlined in 147.321. Provides a partial refund as specified in 147.222. (3) When the customer requests a receipt and verification cannot be made at the time of presentation, furnishes a receipt on Form 3210 appropriately amended. (4) The postmaster must designate an employee, other than the certifying and witnessing employees completing Part II of Form 3533, to destroy the stamps for which refund has been approved. After destruction, the employee must certify Part VI of Form 3533. The certifying and witnessing employee must observe the actual destruction of the meter stamps. b. At other offices, the employee does the following: (1) Verifies the amount claimed. (2) If the refund is due, certifies the correctness of the amount on Part II, Form 3533, or on a separate attached sheet. (3) Handles a refund for unused meter stamps in accordance with 147.322. Provides a partial refund as specified in 147.222. (4) Sends unused meter stamps with Form 3533 when the application for refund is sent to the MSC for payment. (5) For refunds paid at the employee's office, sends the redeemed stamps to the MSC for destruction on the schedule established by the MSC manager. Prepares meter stamps for shipment in the same manner as other nonsalable stamp stock, but marks the envelopes "Metered Postage" instead of "Nonsalable Stock." (6) Does not prepare a destruction certificate for meter stamps sent to the MSC for meter stamp refunds paid at your office. Sends the receipted Form 3533 and a transmittal memorandum along with the meter stamps. Keeps a copy of the transmittal memorandum in your files. (7) The MSC destroys the meter stamps and certify the destruction on Form 3533 in the manner prescribed in 147.332a(4), except that it does not make or account for any refund. After the destruction has been certified, the completed Form 3533 is returned to the originating postmaster, who keeps it with other supporting documents. 147.333 Evidence of Unused Meter Stamps at Office of Meter Setting. Instead of submitting bulky evidence of unused meter stamps, postmasters at the office of meter setting may certify the amount and destruction of these stamps in Part IV of Form 3533 and forward the application to the post office where the meter is licensed. 147.334 Computing Fraction of a Cent. In computing the amount to be refunded for unused meter stamps, resolve a fraction of a cent in favor of the Postal Service. For example, if 90% of the postage value of impression is $4.187, the amount refunded is $4.18. 147.34 Refund Application for Retail Services. Application for refund of fees collected for retail services must be initiated by the customer on Form 3533. Applications are processed as follows: a. The application and any supporting papers are reviewed by an authorized postal employee. If a refund is due, the postal employee completes and witnesses the approval portion of Form 3533. Form 3533 is returned to the customer for submission to the window services section for payment. b. The refund is issued as follows: (1) The window services employee pays the applicant in cash from official funds on hand, if practicable and the refund is made in person. The payee must sign the receipt portion of Form 3533 for a cash refund. (2) If requested, or if the refund is to be mailed, payment is made by Treasury check; or, if $700 or less, by a no-fee money order. The check or money order number is recorded on the receipt portion of Form 3533 instead of obtaining the payee's signature. When the amount is less than $5, the refund is made by cash payment in accordance with 147.34b(1) unless the payee or his or her representative is physically unable to come to the post office, in which case a no-fee money order may be issued. c. If the application is not approved, it is returned to the applicant with the supporting papers and an explanatory statement. d. When the amount due the Postal Service because of faulty postage meter mechanical operation is less than $1, it is not collected. When the amount due the customer is less than $1, it is refunded only on request. 147.35 Rejected Personalized Envelopes 147.351 Refunds. Conditions for refunds for rejected personalized envelopes are in 141.29. Refunds for postage value only may be made at post offices. Those refunds are processed in accordance with 147.24 and 147.31. 147.352 Disposition of Redeemed Personalized Envelopes. Envelopes for which a refund has been made must be destroyed in the same manner as unused meter stamps under 147.332a(4). 147.4 Requests for Refunds for Payment of Excess Postage Submitted at the Time of Mailing 147.41 General. A mailer who has applied postage in excess of the lawful rate of postage applicable to the mail at the time it is deposited with the Postal Service may apply for a refund of the excess postage at the time that the mail is presented to the Postal Service for acceptance. An application for a refund on Form 3533 and all supporting evidence necessary to show that the postage applied to the mailing is in excess of the lawful rate applicable to the mail, must be submitted with the mailing at the time the mailing is deposited. Postal Service acceptance personnel must review the application and the mailing to determine if sufficient evidence has been submitted to support the refund request. Specific procedures governing the submission of certain refund requests by persons other than the mailer who applied the postage to the mail are set forth in 147.42 and 147.43. 147.42 Requests for Value Added Refunds 147.421 General. This section sets forth the procedures applicable to the submission of certain requests for refunds by a business entity, such as a presort service bureau, which prepares mail for a number of customers and presents the mail to the Postal Service in their behalf. For purposes of this section, this business entity is identified as the "presenter" of the mail. This section applies to refund requests submitted to the Postal Service by the presenter at the time of entry of mail which a. is First-Class letter-size mail, b. weighs up to and including 3 ounces, c. has been metered or precancel-stamped by the customer at the Presorted First-Class, ZIP+4 Presort First-Class, or 3-digit ZIP+4 Barcoded rate, and d. has had "value added" by being ZIP+4 barcoded by the presenter. Any refund is issued to the presenter, not to the owner of the mail who applied the postage. The disposition of any such refund is a matter of private contractual agreement between the customer and the presenter. In order to request a refund under this procedure, the presenter must be authorized by the Postal Service. 147.422 Authorization to Submit Requests a. Application A presenter must apply in writing to the general manager, rates and classification center (RCC), serving the presenter's production facility for an authorization to submit value added refund requests. The application must describe the presenter's mail preparation system and the documentation it can produce. A copy of the letter must be sent to the field division general manager/postmaster of each post office where mailings are to be deposited. The postmaster reviews the letter and then makes a recommendation to the general manager, RCC. The procedures in this section may not be used or implemented before the general manager, RCC, has approved the application. b. Conditions of Participation (1) Automation. The presenter must process and document mail through a fully automated mail sorting system, which includes the following equipment: (a) An optical character reader (OCR) that reads the numeric ZIP+4 code printed on the address line of the envelope or, with a multiline OCR, reads the address and checks it against the National Directory File in order to make a conversion to ZIP+4 barcodes. (b) An ink jet or laser printer that applies the 9-digit POSTNET barcode in the required location. (c) A barcode reader (BCR), which reads the POSTNET barcode, verifies it for accuracy, and sends the mailpiece to an assigned bin location for presort purposes. (2) Presenter Requirements. The presenter must demonstrate the ability to produce the mailing statements and refund documentation required by 147.426 and 147.427. (3) Refund Adjustments. The presenter agrees that verification samples taken by the Postal Service are deemed to be representative of the entire mailing and are to be used to adjust the total refund amount requested. (4) System Modification. The presenter agrees to provide advance written notice to the Postal Service of any plans to modify or adjust its system that affect the calculation of postage, amount of refund, generation of required documentation, or mail presorting prior to the preparing and presenting of the mail for acceptance. (5) Mailer Cooperation. The presenter agrees to cooperate with the Postal Service when mailings are being verified or audits are being performed. This includes the processing of sampled mail through barcode readers when requested to do so. c. Granting or Denying an Authorization. (1) The general manager, RCC, reviews the postmaster's letter and any supporting materials and determine if the presenter meets the above conditions to participate. (2) If the application is denied, the general manager, RCC, must notify the presenter of this decision in writing, giving the reasons for the denial. A denial may be appealed within 15 days in writing to the general manager, RCC. The appeal must contain specific information explaining why the presenter believes it should be authorized to submit value added refund requests. If the general manager does not find that the presenter is qualified, the appeal is forwarded to the Director, Office of Classification and Rates Administration, USPS Headquarters, for review. The Director issues the final agency decision and notifies the presenter, the field division, and the RCC of the decision. (3) If the general manager, RCC, finds that the presenter is qualified, the presenter must be notified in writing of the decision. d. Renewal of Authorization. Authorizations to submit refund requests under 147.42 are granted for a period not to exceed 1 year. Authorizations may be extended following a review conducted prior to the expiration date by the general manager, RCC, or designee, if it is determined that the presenter continues to meet the applicable requirements. e. Suspension of Authorization. An authorization may be suspended by the general manager, RCC, if it is determined that the mailer is not preparing mail in a manner consistent with the requirements of this section. f. Cancellation of Authorization. An authorization may be canceled by the general manager, RCC, under any of the following conditions: (1) If the presenter has consistently provided incorrect information and is unwilling or unable to correct the problem; (2) If the presenter continually fails to meet the requirements of this section; or (3) When no mailings have been made under these procedures during any 6 consecutive months. g. Cancellation and Suspension Procedures. If a decision is made to cancel or suspend an authorization, the general manager, RCC, must notify the presenter in writing of the decision. The action becomes effective 15 days from receipt of the notification, unless the presenter files a written appeal with the general manager, RCC. The appeal must contain additional information as to why the authorization should not be canceled or suspended. If a decision is made to continue the authorization, the general manager, RCC, must notify the mailer in writing of the decision. If the general manager finds that there is insufficient evidence to support the appeal and a decision is made to deny the appeal, the appeal is forwarded to the Director, Office of Classification and Rates Administration, USPS Headquarters. The Director issues the final agency decision and notifies the presenter, the administering post offices, the field division, and the RCC of the decision. A cancellation decision is effective 15 days after receipt by the mailer. 147.423 Customer Agreement. The presenter must submit to the Postal Service an original Form 8096 completed and signed by each of its customers whose mail is included in a mailing for which a value added refund is requested. This form constitutes a written request to the Postal Service to accept value added refund requests submitted in behalf of the customer by the presenter. The presenter must provide the entry post office with an original of each completed Form 8096 for each customer, along with an accurate list of these customers. Refund requests are denied if all the required Forms 8096 have not been provided. 147.424 Application for Refunds. Requests for value added refunds are processed upon submission of a Form 3533. A Form 3533, together with the supporting documentation required by 147.427, must be submitted with each mailing at the time of mailing. Refund applications submitted after the time of mailing are not considered. Although eligibility for a refund is determined and verified for each mailing, checks or money orders used to pay refunds are issued by the entry point postmaster on a weekly basis or on another schedule mutually agreed to by the postmaster and the mailer. 147.425 Preparation of the Mailing a. The presenter is required to maintain the mail of each customer in such a manner that the characteristics of the mailing may be documented during the presenter's primary processing operation. The presenter must separate its customer's mail by postage payment method (metered or precancel stamped), by weight increment (1, 2, and 3 ounces), and by rate category (Presorted First-Class, ZIP+4 Presort, or 3-digit ZIP+4 Barcoded rate). Refund requests for mailings that are not prepared in this manner are not to be approved. b. Metered mail must be deposited at the licensing post office unless otherwise authorized under 144.8. c. Mailers must sleeve, band, and air contract transportation (ACT) tag all trays, as applicable. d. Mail must be prepared according to the provisions of 325, 364, and 366. 147.426 Mailing Statements. The presenter must provide complete and accurate mailing statements at the time of mailing, one for the portion of the mailing paid by meter stamps, and a separate one for the portion paid by precanceled stamps. Each mailing statement must show the total weight of the pieces for the method of payment, the number of qualifying pieces and computed postage at each presort level (after the mailing has been ZIP+4 barcoded), and the total postage. All postage figures shown on mailing statements must be computed based on the rate category for which each piece qualifies when presented to the Postal Service. Separate mailing statements must be prepared for mail entered under the provisions of 366. 147.427 Mailer Documentation. The presenter must provide sufficient documentation to the Postal Service to support the value added refund request and to enable the Postal Service to verify the refund request in an efficient and cost-effective manner. The following reports must be submitted at the time of mailing with each Form 3533. a. Customer Mail Report documents all customer mail received by the presenter. At the top of the report, show this administrative information: name of presenter, date of report, and entry post office. Then, list by individual customer the following: (1) Name of customer. (2) Mailer job number, if applicable. (3) For metered postage: (a) Number of 1-ounce pieces at Presorted First-Class rate. (b) Number of 2-ounce pieces at Presorted First-Class rate. (c) Number of 1-ounce pieces at ZIP+4 Presort rate. (d) Number of 2-ounce pieces at ZIP+4 Presort rate. (e) Total metered pieces. (f) Total metered postage. (4) For precancel stamped postage: (a) Number of 1-ounce pieces at Presorted First-Class rate. (b) Number of 2-ounce pieces at Presorted First-Class rate. (c) Number of 1-ounce pieces at ZIP+4 Presort rate. (d) Number of 2-ounce pieces at ZIP+4 Presort rate. (e) Total precancel stamped pieces. (f) Total precancel stamped postage. (g) Total pieces. (h) Total postage. (i) Cumulative postage (running total for all mailers). (5) Grand totals for all customers, items (3) and (4), above. b. Sortation/Qualification Report identifies the number of pieces qualifying for each rate by presort level by ZIP Code. Separate reports must be prepared for mail entered under the provisions of 366. (1) First-Class ZIP + 4 Barcoded Rate Mailing. At the top of the report, show this administrative information: name of presenter, date of report, and entry post office. (2) Five-Digit Portion. List by 5-digit ZIP Code the following: (a) ZIP+4 barcoded rate pieces (ZIP+4 Barcoded). (b) ZIP+4 Presort rate pieces (nonbarcoded or 5-digit barcoded). (c) Presorted First-Class rate pieces (nonbarcoded or 5-digit barcoded). (d) Cumulative total for each ZIP Code. (e) Total each column. (3) Three-Digit Portion. List by 3-digit ZIP Code the following: (a) ZIP+4 Presort rate pieces (ZIP+4 barcoded). (b) ZIP+4 Presort rate pieces (nonbarcoded or 5-digit barcoded). (c) Presorted First-Class rate pieces (nonbarcoded or 5-digit barcoded). (d) Cumulative total for each ZIP Code. (e) Total each column. (4) Residual Portion. List by 3-digit ZIP Code the following: (a) Nonpresorted ZIP+4 rate pieces (ZIP+4 barcoded). (b) Nonpresorted ZIP+4 rate pieces (nonbarcoded or 5-digit barcoded). (c) Single-piece rate pieces (nonbarcoded or 5-digit barcoded). (d) Cumulative total for each ZIP Code. (e) Total each column. (5) Summary. Give totals for the following: (a) ZIP+4 Barcoded rate pieces. (b) ZIP+4 Presort rate pieces. (c) Presorted First-Class rate pieces. (d) Nonpresorted ZIP+4 rate pieces. (e) Single-piece rate pieces. (f) Pieces with a ZIP+4 barcode. (g) Pieces in the mailing. (h) Percentage of barcoded pieces. c. Sortation/Qualification Report - Optional Combined ZIP+4 Presort and Presorted First-Class Mailing (Destinating at Automated Sites). At the top of the report, show this administrative information: name of presenter, date of report, and entry post office. (1) Three-Digit Portion. List by 3-digit ZIP Code the following: (a) ZIP+4 Presort rate pieces. (b) Presorted First-Class rate pieces. (c) Cumulative total for each ZIP Code. (d) Total each column. (2) Residual Portion. List by 3-digit ZIP Code the following: (a) Nonpresorted ZIP+4 rate pieces. (b) Single-piece rate pieces. (c) Cumulative total for each ZIP Code. (d) Total each column. (3) Summary. Give totals for the following: (a) ZIP+4 Presort rate pieces. (b) Presorted First-Class rate pieces. (c) Nonpresorted ZIP+4 rate pieces. (d) Single-piece rate pieces. (e) Pieces with a ZIP+4 code. (f) Pieces in the mailing. (g) Percentage of ZIP+4 coded pieces. d. Refund Calculation Report is used to calculate the amount of the refund being requested, by comparing the amount of potential excess postage paid, as reflected on the customer mail report, with the qualifying rate levels on the sortation/qualification reports. The net result is the refund requested for the mailing. Required information is as follows: (1) At the top of the report, show the following administrative information: name of presenter, date of report, and entry post office. (2) Refund Calculation (a) Pieces paid (from customer mail report) 1. ZIP+4 Presort (pcs) x (rate) = $x.xx 2. Presorted First-Class (pcs) x (rate) = $xx.x 3. Total potential excess postage paid $xx.x (b) Pieces qualified (from sortation/qualification report) 1. ZIP+4 Barcoded (pcs) x (rate) = $00.0 2. ZIP+4 Presort (pcs) x (rate) = $xx.x 3. Presorted First-Class (pcs) x (rate) = $xx.x 4. Nonpresorted ZIP+4 (pcs) x (rate) = $xx.x 5. Single-piece (pcs) x (rate) = $xx.x 6. Total $xx.x (c) Refund requested must equal Line (a)3. less line (b)6. = $xx.x 147.43 Requests for Refunds for ZIP+4 Barcoded Rate Combined Mailings 147.431 General. This section sets forth the procedures applicable to the submission of requests for refunds by a business entity, such as a presort service bureau, which prepares ZIP+4 Barcoded rate combined mailings under 382.6 or 661.4. Any refund is issued to the mailer, not to the owner of the mail who applied the postage (if different from the mailer). The disposition of any such refund is a matter of private contractual agreement between the owner and the mailer. To request a refund under this procedure, the mailer must be authorized by the Postal Service. 147.432 Requests for Refunds. Requests for refunds of overpayments of postage for the metered portion of ZIP+4 Barcoded rate combined mailings resulting from the application of barcodes are processed upon submission of a Form 3533. A Form 3533, together with the supporting documentation required by 382.7, must be submitted with each mailing at the time of mailing. Although eligibility for a refund is determined and verified for each mailing, checks or money orders used to pay refunds for the metered portion of combined mailings are issued by the entry point postmaster on a weekly basis or on another schedule mutually agreed to by the postmaster and the mailer. Postage is refunded to the mailer, not to the owner of the mail who applied the postage (if different from the mailer). 147.433 Client Agreement for Metered Pieces. The mailer must submit to the Postal Service an original Form 8096 completed and signed by each of its clients submitting metered pieces to be included in combined mailings. This form is required because the mailer receives a refund for the value added to the metered pieces (see 382.61b). If a client has completed a Form 8096 under 147.423 for value added refunds, no additional form is required for combined mailings. The mailer must provide the post office responsible for verifying combined mailings with an original Form 8096 for each client, along with an accurate list of these clients.