Order Code RS22611
February 23, 2007
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 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 USPS.
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.
1 According to a spokesperson at USPS, the only instance when a letter may be mailed without
an indicia is when the letter is sent by a member of the U.S. armed services deployed overseas.
He or she may write in the upper right corner of an envelope, “free mail.” The Department of
Defense reimburses USPS for the expense of delivering this mail.
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 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.”

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Definitive Stamps. Definitive stamps are issued by 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, $3.85, $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,
Chippendale chair).4
Commemorative Stamps. Each year, USPS issues stamps to commemorate or
celebrate persons, anniversaries, and things.5 In 2007, for example, USPS will release
stamps featuring images of the poet Henry Wadsworth Longfellow, the 100th anniversary
of Oklahoma’s statehood, and the Hershey Kiss candy.6 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 through other means (e.g., online).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 So, for
example, a first-class definitive stamp may be purchased for 39 cents, whereas a first-class
semipostal costs 45 cents. USPS has the authority to decide what causes to support
through the sales of semipostal stamps.9 Nevertheless, all semipostal stamps issued thus
far by USPS have appeared as a consequence of a statute. Congress has required USPS
to issue semipostal stamps to raise funds for breast cancer research (P.L. 105-41; 39
U.S.C. 404), 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).
Other than Stamps, What Kinds of Postage Indicia Exist?
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.
4 Examples of common postage stamps may be found on the website of the U.S. Postal Service
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,” Oct. 25, 2006, 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)).
10 See USPS website at [http://www.usps.com/postagesolutions/].

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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 are
to be affixed to mailpieces.11 USPS does not produce postage meters; rather, private firms
manufacture meters to meet standards set in regulations issued by the Postal Service.12
To use a postage meter, a mailer must fill out an application with 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 for delivery by USPS. Indicia made
by postage meters may be customized to include advertisements or messages. A customer
may do this by designing and purchasing an ad 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 printing
press, handstamp, lithography, mimeograph, address plate, or similar device.”14
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 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 then stuff these envelopes with letters and
deliver them to the post office from which it received its mailing permit. USPS would
receive the mail, and the firm would pay for the postage required on the spot.15 According
to USPS, mailing permit imprints may not be customized to include advertisements or
messages.
Customized Postage Indicia. Customized postage indicia were authorized 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. This change in law enabled USPS to
enter agreements with a number of private firms, such as Stamps.com, and Zazzle.com,
to license them to create stamp-like indicia that carry advertisements and images chosen
by the purchaser (e.g., a photographic image of one’s pet cat).16 USPS requires firms that
11 Examples of meter indicia may be found on the USPS website at [http://pe.usps.com/text/
qsg300/images/graphics/Q024a.jpg].
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 website at
[http://pe.usps.com/text/qsg300/images/graphics/Q025b.jpg].
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 USPS also allows for prepayment of mailing permit imprint mail.
16 For examples of customized postage indicia, see the website of Zazzle.com at

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produce customized postage indicia to limit the messages and images that may be placed
on them. To cite just two restrictions: customized postage indicia may not carry partisan
or political content 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. A sheet of 20 39-cent customized postage indicia may cost $17.99
or more, whereas a sheet of 20 39-cent USPS definitive stamps costs $7.80. The extra
cost of customized postage goes to the licensees (e.g., Stamps.com), though, in some
instances, 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 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
How Does One Request That the Postal Service Issue
a Stamp in Honor of a Person, Place, or Event?
To aid 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 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 St., Suite 5013, Arlington, VA 22209-6432.
16 (...continued)
[http://www.zazzle.com/pd/find/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/].
19 For an enumeration of these criteria and other information on commemorative stamps, see CRS
Report RS20221, Commemorative Postage Stamps: History, Selection Criteria, and Revenue
Potential, by Kevin R. Kosar.

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How Are Postage Rates Set?
Currently, postage rates are set by the Postal Rate Commission with the agreement
of the Postal Service. USPS initiates a rate case by submitting a request to the
commission to raise postage prices that details the proposed increases and the
justifications for them. Any interested party, including a citizen or a business firm, may
submit testimony to the commission to support or criticize USPS’s proposal. The
commission then issues a recommended decision. USPS’s Board of Governors may
accept the commission’s decision or reject it.20
The recently enacted Postal Accountability and Enhancement Act (P.L. 109-435; 120
Stat. 3198) will change the process for setting postage rates by June 2008.21 The law
divides USPS products into two categories, market-dominant products22 and competitive
products.23 The postage rates for market-dominant products, such as first-class mail, will
be set by USPS in accordance with the requirements of the new regulatory system. The
new Postal Regulatory Commission will design this system,24 and the major feature of the
system for market-dominant products will be a price cap (P.L. 109-435, Section 201).
Each year, USPS will not be able to raise the price of postage more than the increase in
the Consumer Price Index for All Urban Consumers. The postage rates for competitive
products, such as overnight package delivery, will be set by USPS’s Board of Governors
in accordance with regulations promulgated by the Postal Regulatory Commission, which
will require prices to reflect “the direct and indirect postal costs attributable” to the
production and provision of these products (P.L. 109-435, Section 202).
Are Revenues from the Sales of Stamps Used to Support
the “War on Terror” or Other Government Operations?
No. An Online Journal article circulating on the Internet entitled “George W. Bush’s
War Stamp Tax,” by Wayne Madsen, asserts that the Bush Administration “has imposed
a stealth war tax on the American people,” citing the postage rate increase that went into
effect on January 8, 2006, and another rate increase requested by the Postal Service and
now being considered by the Postal Rate Commission for implementation in 2007.
The reason for the Bush stamp tax is that when the Bush Administration took power
in 2001, the Postal Service Fund, a special account established within the Treasury
Department, had a substantial surplus. However, in order to pay for its Iraq war
20 For further details on the current rate-setting process, see 39 U.S.C. 36.
21 P.L. 109-435, Sec. 201 requires that this new system must be in place within 18 months after
enactment of the law, which was signed on December 20, 2006.
22 P.L. 109-435, Sec. 203 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. The
competitive category of products shall consist of all other products.”
23 Competitive products are those products and services that do not meet the definition of a
market-dominant product (P.L. 109-435, Sec. 203).
24 News on the development of the new regulatory system may be found at [http://www.prc.gov].

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adventure, the Bush Administration raided the Postal Service Fund and created a
deficit. The two successive rate increases have been necessary in order to replenish
the fund, according to Postal Service sources.25
This is not an accurate description of the way the Postal Service is funded or the reasons
for the increases in postage costs. Postal Service funds have not been diverted to the war
on terrorism. By law, the Postal Service is a self-funding enterprise that operates
independently from the executive branch of which it is a part. It pays for its operations
by charging the public for the cost of its services, and in the long run it is expected to
break even. The Postal Service Fund, in the Treasury Department, is essentially the
USPS’s checking account. Postal revenues go into the fund and are withdrawn to pay for
postal expenses, such as compensation and benefits, transportation and services,
depreciation, and retirement obligations.
May the Families of Members of the
Armed Services Send Mail to Them for Free?
No. During the 109th Congress, two bills (H.R. 923 and H.R. 2874) were introduced
that would have allowed family members and, in the case of H.R. 2874, certain charities
to send letters and packages free of postage to servicemen and women in combat zones.
Neither of these bills was enacted into law.26
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).27 The Department of
Defense (DOD) reimburses USPS for a portion of the delivery costs.
25 See [http://onlinejournal.com/artman/publish/article_779.shtml].
26 For further details on these proposals, see CRS Report RS22203, Free Mail for Troops
Overseas, by Kevin R. Kosar.
27 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/].

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