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agents may be able to prepare the statements required.

CODIFICATION: In § 16.5, paragraph (a) was revised, former paragraphs (e) and (f) were redesignated (f) and (g), respectively, and a new paragraph (e) was added, 29 F.R. 561, Jan. 23, 1964.

§ 16.6 Weighing and collection of postage.

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(e) Verification by postmasters of weights and number of copies. The average weight per copy obtained by the publisher in the manner prescribed by paragraph (b) of this section for use either in computing postage on the bulk weight of a single issue, or in determining the weight of one sheet as provided for by paragraph (d) of this section must be verified by the postmaster by weighing, or by supervising the weighing of, a representative number of copies of the

issue.

If the average weight per copy is used for determining the weight of one sheet, the postmaster must also verify the computation by which the publisher determines the weight of one sheet. At the end of each calendar month, when postage is computed on the total bulk weight of all issues mailed during the month, the postmaster must verify the combined weight of one copy from each issued by counting the sheets in the copies filed under the provision of § 16.5(a) and multiplying the total by the previously verified weight of one sheet furnished by the publisher on Form 3542. If there is reason at any time to doubt the accuracy of the information reported on Form 3542, sufficient weighings must be made to resolve the doubt. The postmaster shall keep a record of the verification, preferably on the back of applicable Form 3542.

(f) Annual verification. (1) Verification of the data furnished on Form 3542 shall be made annually at offices where there are no more than 100 publications entered as second class. At other offices

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subscribers'

(i) Copies reported as copies, which must not include complimentary or other nonsubscribers' copies, are in substantial agreement with the publisher's mail circulation records.

(ii) Nonsubscribers' copies, other than those mailed at the transient secondclass rate, are declared as samples but do not exceed the amount allowable. See § 22.4(f) (1) (ii) of this chapter.

(iii) Nonsubscribers' copies which exceed the amount allowable as samples are mailed at the transient second-class rate.

(iv) During the previous 12-month period the total copies paid subscribers and the purchasers of single copies constitute at least 65 percent of the total circulated. See § 22.2(b) (7) of this chapter.

(3) Where the verification discloses discrepancies which in the opinion of the postmaster are substantial and which cannot be resolved, the postmaster shall submit a memorandum of the facts with a complete report on the reverse side of Form 3501 to the Classification and Special Services Division, Bureau of Operations, for advice and instructions before taking further action.

(g) Payment of postage at time of mailing or by advance deposits. Publishers must pay in money before the mailings are dispatched all postage charged at the second-class rates shown

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in § 22.1 of this chapter. Exception:
The transient rate (§ 22.1(c) of this
chapter) must be paid by adhesive or
meter stamps or by permit imprints.
(See §§ 34.3(b) and 34.5(a)(2) of this
chapter.) Postmasters will accept de-
posits of money to pay for as many mail-
ings as desired and will give the pub-
lishers receipts on Form 3544 for the
deposits.

(h) Record of mailings. Postage on
the bulk mailings will be computed on
Form 3541 from the weights obtained on
Form 3542. The publisher will be fur-
nished a duplicate of Form 3541 if he re-
quests one. When postage is computed
on the bulk weight of one issue, the
mailings and postage will be recorded in
Form 3543 (special), Record of Second-
Class Postage. When postage is com-
puted at the end of each calendar month
on the total weight of all issues mailed
during the month, the total mailings and
postage for the month will be computed
on one Form 3541, and only the totals
will be recorded in Form 3543.

(i) How to show dates of issue and mailing. When a number of consecutive issues are covered by one Form 3541 or Form 3542, or by one entry in Form 3543, the dates of issue and the dates of mailing must be indicated by entering the first and last dates in the appropriate spaces and columns.

CODIFICATION: In § 16.6, paragraph (e) was revised, paragraphs (f) through (h) were redesignated (g) through (i), respectively, and a new paragraph (f) was added, 29 F.R. 561, Jan. 23, 1964.

Prior Amendments

1962: 27 F.R. 9057, Sept. 12.

§ 16.7 Key rate.

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(b) Statement showing mailings to each zone. The publisher must submit once each calendar year, at 12-month intervals, a statement on Form 3542 showing the number of subscribers copies of an issue mailed to each zone. During these 12-month intervals, the publisher

does not need to complete the lines for zones 1 to 8 on Form 3542. He enters only total zone mailing on Total to all zones lines.

[Paragraph (b) revised, 29 F.R. 562, Jan. 23, 1964]

(d) Computation. (1) Compute the key-rate on Form 3541 once each calendar year at 12-month intervals, using the subscribers copies shown by zones Form 3542 furnished in acordance with paragraph (b) of this section. If a new report on Form 3542 is filed at any time during the 12-month intervals showing mailing to each zone, a new key rate must be computed and used.

(2) Enter on the corresponding lines in column B of Form 3541 the number of copies for each zone shown on Form 3542. Apply the applicable pound rates shown in column F to the number of copies for each zone and enter the postage for each zone in column C of Form 3541. Divide the total postage in item 2, column C, by the total number of copies in item 2, column B, to obtain the key-rate, which should be carried to six decimal places. Apply the key-rate only to the total weight of the advertising portion. Apply the regular reading portion rate to the total weight of the reading portion. Computation of the key-rate must be verified by an employee or supervisor other than the person who originally computed it. See exhibit A. (3) Prepare Form 3541 for subsequent mailings as shown on Exhibits A and B until a new report on Form 3542 showing mailings to each zone is filed under paragraphs (b) and (c) of this section. Where a key rate has been developed and is being used to compute postage for subscribers copies, postage on sample copies shall be determined by using the same key rate unless the transient rate is chargeable (See §§ 22.1(c) and 22.4(f) (1) of this chapter.)

[Paragraph (d) revised, 29 F.R. 562, Jan. 23, 1964]

POST OFFICE DEPARTMENT

STATEMENT SHOWING NUMBER OF COPIES OF SECOND-CLASS OR CONTROLLED CIRCULATION PUBLICATION MAILED

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When postage is computed at the key rate, the lines for Zones 1 to 8 need not be completed except for one issue each calendar year at The total zone mailings must be entered on the "Total to All Zones" line during the twelve-month intervals.

12-month intervals.

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POST OFFICE DEPARTMENT

STATEMENT SHOWING NUMBER OF COPIES OF SECOND-CLASS OR CONTROLLED CIRCULATION PUBLICATION MAILED

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When postage is computed at the key rate, the lines for Zones 1 to 8 need not be completed except for one issue cach calendar year at 12-month intervals. The total zone mailings must be entered on the "Total to All Zones" line during the twelve-month intervals.

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