Common Questions About Postage and Stamps

Common Questions About
Postage and Stamps
Kevin R. Kosar
Analyst in American National Government
Government and Finance Division
Summary
Constituents and interest groups often approach congressional offices with
questions about postage and stamps. This report provides brief answers to commonly
asked questions and provides sources where congressional staff may learn more about
these topics.
What Is the Difference Between Postage and Stamps?
Postage is the price a customer pays to have the U.S. Postal Service (USPS) deliver
a letter or package. In order to show that the postage has been prepaid on a letter or
package to be delivered, various postage indicia have been created.¹ Stamps are one type
of postage indicia.² Stamps may be issued by the USPS alone.³ Some of the other forms
of postage that look like stamps, such as “customized postage,” may be produced by
private firms with the approval of the USPS.

¹ According to a USPS spokesperson, there are two instances in which letters may be mailed
without indicia. If a letter is sent by a member of the U.S. armed services deployed overseas, he
or she may write “free mail” in the upper right corner of an envelope. The Department of
Defense reimburses the USPS for the expense of delivering this mail. Also, certain types of
mailings may be sent without postage to persons who are visually impaired. Congress provides
an annual appropriation to reimburse the USPS for this service. See USPS, Mailing Free Matter
for Blind and Visually Handicapped Persons: Questions and Answers, Publication 347
(Washington: USPS, May 2005), at [http://www.usps.com/cpim/ftp/pubs/pub347.pdf].
² The exceptions are the Federal Migratory Bird Hunting and Conservation Stamps, also known
as “duck stamps.” They are not valid for postage. Duck stamps were created in 1934 and serve
as a federal license for hunting migratory birds (16 U.S.C. 718-719). Duck stamps also raise
revenues for the conservation of wetlands. For further details, see the website of the Federal
Duck Stamp Program at [http://www.fws.gov/duckstamps/].
³ 39 U.S.C. 404(a)(4) empowers the USPS “to provide and sell postage stamps [...] and to provide
such other evidences of payment of postage and fees as may be necessary or desirable.”

What Kinds of Stamps Exist?
Various types of stamps exist, including definitive stamps, commemorative stamps,
and semipostal stamps. Each of these types of stamps is described below.
Definitive Stamps. Definitive stamps are issued by the USPS for regular
customer use. Unlike a commemorative stamp, a definitive stamp (e.g., U.S. flag stamp)
is issued year after year, and the quantity produced is not capped. These stamps come in
a wide range of denominations (e.g., 2 cents, 29 cents, $5.00) and carry a substantial range
of images, including animals (e.g., birds); famous persons (e.g., Presidents George
Washington and Andrew Jackson); and esteemed household items (e.g., Tiffany lamp).⁴
Commemorative Stamps. Each year, the USPS issues stamps to commemorate⁵
or celebrate persons, anniversaries, and things. In 2007, for example, the USPS released
stamps featuring images of the poet Henry Wadsworth Longfellow, the 100^th anniversary⁶
of Oklahoma’s statehood, and the Hershey Kiss candy. Typically, each commemorative
stamp has a limited production run and is sold for only one year. Though usable as
postage, commemorative stamps often are held by collectors and sold privately at auctions
and on the World Wide Web.⁷
Semipostal Stamps. By law, semipostal stamps are “issued and sold by the
Postal Service, at a premium, in order to help provide funding for a cause.”⁸ Thus, a first-
class definitive stamp may be purchased for 42 cents, but a first-class semipostal costs 55
cents. The USPS has the authority to decide what causes to support through the sales of⁹
semipostal stamps. Nevertheless, all semipostal stamps issued thus far by the USPS have
been compelled by statute. Congress has required the USPS to issue semipostal stamps
to raise funds for breast cancer research (P.L. 105-41; 11 Stat. 1121; 39 U.S.C. 414),
domestic violence prevention programs (P.L. 107-67, Title VI, Section 653; 115 Stat.
558), and assistance to the families of rescue workers killed or disabled in the terrorist
attacks of September 11, 2001 (P.L. 107-67, Title VI, Section 652; 115 Stat. 557).
Forever Stamps. The USPS introduced Forever stamps in 2007. A Forever
stamp costs the same as a standard first-class definitive stamp; however, it may be used
forever as first-class postage on standard envelopes weighing one ounce or less. Thus,
if a customer buys a Forever stamp for 42 cents, and two years later the price of first-class

⁴ Examples of common postage stamps may be found on the USPS’s website at
[http://shop.usps.com/].
⁵ CRS Report RS20221, Commemorative Postage Stamps: History, Selection Criteria, and
Revenue Potential, by Kevin R. Kosar.
⁶ USPS, “The 2007 Commemorative Stamp Program,” Web page at [http://www.usps.com/
communications/newsroom/2007stamps/].
⁷ The online auction site, eBay, for example, features thousands of stamps for sale at
[http://buy.ebay.com/ stamps].
⁸ 39 U.S.C. 416(a)(1).
⁹ USPS may “issue and sell semipostals ... in order to advance such causes as the Postal Service
considers to be in the national public interest and appropriate” (39 U.S.C. 416(b)).

stamps rises to 44 cents, the Forever stamp could still be used to mail a letter. The
customer would not need to purchase an additional 2 cents in postage.
Other than Stamps, What Kinds of Postage Indicia Exist?
The USPS permits the use of several postage indicia.¹⁰ These include meter indicia,
mailing permit imprints, and customized postage. Each of these forms of postage is
described below.
Postage Meter Indicia. A postage meter or mailing machine is a device that is
used to print postage indicia directly onto mailpieces or pieces of adhesive tape that are¹¹
to be affixed to mailpieces. The USPS does not produce postage meters; rather, private
firms manufacture meters to meet standards set in regulations issued by the Postal¹²
Service. To use a postage meter, a mailer must fill out an application with the USPS and
enter into a rental agreement with a postage meter manufacturer. The mailer then prepays
for postage, and this prepayment is registered in his postage meter. When he wishes to
mail an item, the mailer places it in the meter, which weighs it and prints the required
postage. The customer may then drop the item into any mailbox within the 5-digit ZIP
code in which the meter is registered for delivery by the USPS. Indicia made by postage
meters may be customized to include advertisements or messages. A customer may do
this by designing and purchasing an advertising plate from the firm that provided his
postage meter.
Mailing Permit Imprints. Mailing imprints are rectangular indicia printed at the
top right of envelopes.¹³ Mailing permit imprints may be made on envelopes “by printing¹⁴
press, handstamp, lithography, mimeograph, address plate, or similar device.”
Typically, mailing permit imprints are used by firms to send mass mailings of identical
mailpieces. Thus, for example, if a not-for-profit firm wanted to send letters to its 5,000
donors, it first would fill out an application with the USPS to receive a mailing permit and
imprint. The firm then would hire another firm to print 5,000 envelopes with the imprint
on them. The not-for-profit company would stuff these envelopes with letters and deliver
them to the post office from which it received its mailing permit. The USPS would
receive the mail, and the firm would pay for the postage required on the spot.¹⁵ According
to the USPS, mailing permit imprints may not be customized to include advertisements
or messages.

¹⁰ See USPS website at [http://www.usps.com/postagesolutions/].
¹¹ Examples of meter indicia may be found on the USPS’s website at [http://pe.usps.com/text/
qsg300/images/graphics/Q024a.j pg].
¹² U.S. Postal Service, Quick Service Guide 604c, Basic Standards for All Mailing Services:
Postage Meters and PC Postage Systems (Washington: USPS, 2006), at [http://pe.usps.gov/text/
qsg300/Q604c.htm] .
¹³ Examples of mailing permit imprints may be found on the USPS’s website at
[http://pe.usps.com/text/qsg300/images/graphics/Q025b.j pg].
¹⁴ U.S. Postal Service, Quick Service Guide 604d, Basic Standards for All Mailing Services:
Permit Imprints (Washington: USPS, Jan. 2006), at [http://pe.usps.com/text/qsg300/Q604d.htm].
¹⁵ The USPS also allows for prepayment of mailing permit imprint mail.

Customized Postage Indicia. The USPS began its first test of customized
postage indicia in August 2004. The USPS’s authorization to experiment with
customized postage indicia was expanded by Section 1192 of the Violence Against
Women and Department of Justice Reauthorization Act of 2005 (P.L. 109-162; 119 Stat.
2960). The act amended 18 U.S.C. 475 to except indicia of “postage payment” from a
more than century old law, which prohibited the counterfeiting of government obligations
or securities and the placement of advertisements on said obligations or securities. The
USPS has entered into agreements with a number of private firms, such as Stamps.com
and Zazzle.com, that permit these firms to create stamp-like indicia that carry
advertisements and images chosen by the purchaser (e.g., a photographic image of one’s¹⁶
pet cat) along with indicia of postage paid. The USPS requires firms that produce
customized postage indicia to limit the messages and images that may be placed on them.
To cite just two of the restrictions: customized postage indicia may not carry partisan or
political contents or messages; and they may not depict profanity, nudity, or sexually
explicit functions. Despite their appearance, customized postage indicia are not stamps.
Rather, they are adhesive stickers that indicate postage paid. Customized postage indicia
are sold at a premium by authorized private companies. A sheet of 20 42-cent customized
postage indicia may cost $14.95 or more; a sheet of 20 42-cent USPS definitive stamps
costs $8.40. The extra cost of customized postage goes to the licensees, though, in some
instances, a portion of the extra cost may be used to support a particular charity or cause.
(See below.)
Which Forms of Postage May Be Used
to Raise Revenues for Worthy Causes?
Semipostal stamps (see above) may be used to raise funds for causes. Customized
postage also has been used for this purpose. For example, the Humane Society of the
United States (HSUS) produced customized postage indicia through Zazzle.com that
generated proceeds for its animal protection programs.¹⁷
May Citizens, Groups, or Businesses Put Images,
Messages, or Advertisements on Stamps?
No. Stamps are produced by the USPS alone and may not carry images, messages,
or advertisements promoting political causes, private businesses, etc. However, persons,
groups, and businesses may put images, messages, and advertisements on certain forms
of postage, such as customized postage and postage meter indicia.¹⁸

¹⁶ For examples of customized postage indicia, see the website of Zazzle.com at
[ h t t p : / / www.za zzl e.com/ pd/ f i nd/ pt -172?sz=1] .
¹⁷ For details, see the website of Zazzle.com at [http://www.zazzle.com/hsus].
¹⁸ For example, Stamps.com permits companies to create postage that advertises their brands,
products, etc. For details, see [http://photo.stamps.com/Store/business/].

How Does One Request That the Postal Service Issue
a Stamp in Honor of a Person, Place, or Event?
To aid the USPS in the development of new commemorative stamps, the Postmaster
General established the Citizens’ Stamp Advisory Committee (CSAC) in 1957. CSAC
operates under 39 U.S.C. 404(a) (4-5), which empowers the USPS to provide stamps and
philatelic services. CSAC assesses proposals for new commemorative stamps against 12
criteria and advises the Postmaster General, who has final authority to determine both
subject matter and design, on appropriate and desirable proposals.¹⁹ Anyone may propose
a new commemorative stamp. Proposals for new commemorative stamps should be sent
to the Citizens’ Stamp Advisory Committee, c/o Stamp Development, U.S. Postal
Service, 1735 North Lynn Street, Suite 5013, Arlington, VA 22209-6432.
How Much Do Stamps and Postage Cost?
The easiest way to determine current postage rates is to visit the USPS’s “Prices”
Web page at [http://www.usps.com/rates/prices.htm]. Consumers also may call the USPS
at 1-800-275-8777.
How Are Postage Rates Set?
The Postal Accountability and Enhancement Act (PAEA; P.L. 109-435; 120 Stat.

3198), which was enacted on December 20, 2006, changed the postage rate-setting²⁰

process. Under the former rate-setting system, the USPS would submit a request to the
Postal Rate Commission to raise postage prices that detailed the proposed increases and
the justifications for them. This began a quasi-judicial process in which all interested
parties, including citizens and business firms, would submit testimony to the commission
concerning USPS’s proposed postage rates. The Postal Rate Commission would hold
hearings, take testimony from witnesses, and issue a recommended decision, which the
USPS’s Board of Governors could accept or reject. Frequently, the entire process took
more than six months, and the results were difficult to predict.
The PAEA replaced this process with a less adversarial and more expeditious
process that takes less than two months (120 Stat. 3201-3203). The PAEA replaced the
Postal Rate Commission with the Postal Regulatory Commission (PRC). Now, when the
USPS wants to raise postage rates, it files a notice with the PRC, which takes public
comments and verifies the proposed rates’ compliance with the law.
The PAEA separates the USPS’s products into two types — market-dominant
products and competitive products — and gives the USPS different pricing authority for
each type.

¹⁹ For an enumeration of these criteria, see CRS Report RS20221, Commemorative Postage
Stamps: History, Selection Criteria, and Revenue Potential, by Kevin R. Kosar.
²⁰ 120 Stat. 3201 required the PRC to put the new rate-setting system in place within 18 months
after enactment of the law. The PRC completed this task early, and the new system took effect
on November 9, 2007 (72 F.R. 63662-63704).

Market-dominant products are those that the USPS need not compete with the
private sector to provide.²¹ Market-dominant products include (1) first-class mail letters
and sealed parcels, (2) first-class mail cards, (3) periodicals, (4) standard mail, (5)
single-piece parcel post, (6) media mail, (7) bound printed matter, (8) library mail, (9)
special services, and (10) single-piece international mail. Each year, the USPS may raise
the postage rates for market-dominant products at a rate that is no higher than the previous
year’s increase in the Consumer Price Index for All Urban Consumers.²²
Competitive products are those for which a competitive market exists.²³ They
include (1) priority mail, (2) expedited mail, (3) bulk parcel post, (4) bulk international
mail, and (5) mailgrams. The USPS may set the postage rates for competitive products
in accordance with regulations promulgated by the PRC. The PAEA prohibits the USPS
from pricing competitive products below the costs to produce these products (120 Stat.

3205). Otherwise, the USPS may price these products at the level it deems appropriate,

relative to competitors’ prices.
May the Families of Members of the
Armed Services Send Mail to Them for Free?
No. During the 109^th and 110^th Congresses, bills have been introduced to permit
certain persons to send letters and packages free of postage to servicemen and women in²⁴
combat zones. None of these bills has become law.
May Any Active Duty Members of the
Armed Services Send Mail for Free?
Yes, a member of the armed services may do so, provided that he or she is on duty
in a designated combat area, the mail is personal correspondence, and the mail is
addressed to someone in the United States (39 U.S.C. 3401).²⁵ The Department of
Defense reimburses USPS for a portion of the delivery costs.

²¹ 120 Stat. 3209 defines a “market-dominant” product as a product “in the sale of which the
Postal Service exercises sufficient market power that it can effectively set the price of such
product substantially above costs, raise prices significantly, decrease quality, or decrease output,
without risk of losing a significant level of business to other firms offering similar products.”
²² 120 Stat. 3203-3204 does permit two exceptions to this limitation.
²³ 120 Stat. 3209 defines “competitive products” as those products and services that do not meet
the definition of a market-dominant product.
²⁴ For further details on these proposals, see CRS Report RS22203, Free Mail for Troops
Overseas, by Kevin R. Kosar.
²⁵ For further details on members of the armed services and postal services, see the website of the
Military Postal Service Agency at [http://hqdainet.army.mil/mpsa/].