SECTION 12. MONITORING OF

DESIGNATED DELIVERY SERVICES AND REVOCATION PROCEDURES

.01 The Service may monitor designated PDSs to ensure compliance with the requirements of this revenue procedure. If the Service finds that a designated PDS failed to comply with the requirements of this revenue procedure, the Service will issue a warning letter that describes specific corrective action that must be taken in order to retain designation.

.02 If the designated PDS fails to take the appropriate corrective action within the time specified in the warning letter, a proposed revocation letter will be issued. If a designated PDS receives a proposed revocation letter, the designated PDS is entitled to an appeal, in writing, to the National Director of Appeals.

.03 The appeal must be mailed or delivered to the Service at one of the application addresses listed in section 6 of this revenue procedure within 30 calendar days of the date of the proposed revocation letter. A designated PDS’s written appeal must contain a detailed explanation, with supporting documentation, of why the revocation should not be made. In addition, the designated PDS must include a copy of the warning letter and a copy of the proposed revocation letter. Failure to appeal within the 30-day period irrevocably terminates a designated PDS’s right to an appeal.

.04 If a designated PDS fails to file a timely appeal or if an appeal is denied, the Service will revoke the designation. The revocation may be either with respect to a single type of delivery service offered by the designated PDS or with respect to all types of delivery services offered, depending on the nature of the violation. The revocation will be effective after issuance of a notice that provides a revised list of the designated PDSs.

.05 A PDS is not permitted to reapply for designation under the provisions of this revenue procedure if, after consideration of an appeal if timely requested, there has been a complete or partial revocation of its status as a designated PDS. The permanent guidance may also preclude such a PDS from reapplying for an additional specified period of time.

.06 In exceptional circumstances, the Service may revoke the status of a designated PDS before the appeals process is completed. Such revocation will be effective after issuance of a notice that provides a revised list of the designated PDSs. If, after consideration of an appeal, it is determined that a PDS is qualified for designation, the PDS will be redesignated. Such redesignation will be effective after issuance of a notice that provides a revised list of the designated PDSs.