94-5428. Amendment of International Mail Manual Subchapter 790  

  • [Federal Register Volume 59, Number 47 (Thursday, March 10, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-5428]
    
    
    [[Page Unknown]]
    
    [Federal Register: March 10, 1994]
    
    
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    POSTAL SERVICE
    
    39 CFR Part 20
    
     
    
    Amendment of International Mail Manual Subchapter 790
    
    AGENCY: Postal Service.
    
    ACTION: Final rule.
    
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    SUMMARY: The Postal Service is adopting amendments of International 
    Mail Manual Subchapter 790 to clarify when a mailing in a foreign 
    country is by or on behalf of a United States resident for purposes of 
    collecting United States domestic postage and to authorize the 
    collection of United States domestic postage on certain mail posted in 
    a foreign country by or on behalf of persons who do not reside in that 
    country.
    
    EFFECTIVE DATE: 12:01 a.m., March 10, 1994.
    
    FOR FURTHER INFORMATION CONTACT:
    Walter J. Grandjean, (202) 268-5180.
    
    SUPPLEMENTARY INFORMATION: On April 28, 1993, the Postal Service 
    published in the Federal Register (58 FR 25959) a proposed rule that 
    would amend Subchapter 790 of the International Mail Manual to clarify 
    when mail is posted in a foreign country is by or on behalf of a United 
    States resident (ABA remail) for purposes of collecting United States 
    domestic postage. The proposed rule would also authorize the Postal 
    Service to collect United States domestic postage on certain mailings 
    posted in countries with which the Postal Service has not negotiated 
    cost-based terminal dues arrangements by or on behalf of persons who 
    reside in countries with which the Postal Service has negotiated cost-
    based terminal dues arrangements (ABC remail). The Post Service 
    proposed a broad definition of United States resident that would allow 
    it to collect United States domestic postage on mailings posted in 
    another country not only by firms or entities organized in the United 
    States, but also by firms or entities organized under the laws of other 
    countries when there was a substantial connection between such firms or 
    entities and individuals or firms in the United States. The Postal 
    Service also proposed to define when a mailing was by or on behalf of a 
    United States resident as those mailings in which a United States 
    resident seeks or expects to receive an economic advantage. The Postal 
    Service also proposed a definition of resident of a country with which 
    the Postal Service has cost-based terminal dues arrangements and a 
    definition of when a mailing was by or on behalf of such a resident. 
    Comments were due on or before June 1, 1993, and ten comments were 
    received by that date. Of those comments, six opposed and four 
    supported the proposed rule. In view of the comments, the Postal 
    Service has decided to adopt the proposed rule with amendments to take 
    into account some of the criticisms of the proposal.
    
    Legal Authority
    
        One commenter, an association of companies that compete with the 
    Postal Service, asserts that this rulemaking violates the separation of 
    powers and due process principles of the Constitution because the rule 
    would regulate companies that compete with the Postal Service. The 
    Postal Service disagrees. The commenter cited no cases or other 
    authority to support its assertion, and the Postal Service is not aware 
    of any authority which would support such an assertion. Moreover, the 
    rule does not regulate competitors of the Postal Service who do not use 
    the Postal Service's services, but only specifies when mailers must pay 
    U.S. domestic postage to secure delivery of their mail. Mailers can 
    continue to use remailers and can deposit their mail in any country 
    they choose. They will be required, however, to pay the full cost of 
    the services they obtain from the Postal Service.
        Two commenters, a competitor of the Postal Service and the 
    association of competitors, assert that the proposed rule violates the 
    Postal Reorganization Act because it would extend the application of 
    the Private Express Statutes beyond the United States and to mailable 
    matter other than letters. These commenters also assert that the 
    proposed rule would either impose the Postal Service's bilateral cost-
    based terminal dues arrangements on third countries or boycott mail 
    from non-cost-based terminal dues countries unless the mailer agreed to 
    pay United States domestic postage. They further assert that the Postal 
    Service is not authorized to adopt an interpretation of the Universal 
    Postal Convention without the approval of the President. The Postal 
    Service disagrees.
        The proposed rule would not extend the territorial reach of the 
    Private Express Statutes. The Private Express Statutes, 18 U.S.C. 1694-
    99, 39 U.S.C. 601-06, generally prohibit the private carriage of 
    letters on post routes without paying postage. There are exceptions to 
    this prohibition, and the Postal Service has suspended the prohibition 
    in some cases, e.g., for extremely urgent letters and for outbound 
    international remail. 39 CFR 320.6, 320.8.
        The proposed rule would not require that anything be sent by mail, 
    or that United States postage be paid on non-letter mail sent by a 
    private carrier. It simply prescribes when United States postage must 
    be paid to the Postal Service when the mailer chooses to use the Postal 
    Service to deliver items in the United States. Mailers are free, 
    subject to the internal legislation of the countries where they are, to 
    use any carrier they want for both letter and non-letter mailable 
    matter. The Private Express Statutes would come into play only when a 
    mailer chooses to send letters to the United States via a private 
    carrier. When those letters arrive in the United States, unless they 
    come within an exception or suspension of the Statutes, they must be 
    entered into the mails or have United States postage affixed. That is 
    entirely different from the requirement in this rule that U.S. domestic 
    postage be paid on matter entering the United States through the 
    international mail system and which is tendered to the Postal Service 
    for delivery by choice.
        The proposed rule would not impose bilateral terminal dues 
    arrangements on third countries nor would it constitute a boycott of 
    mail from countries with which the Postal Service does not have cost-
    based terminal dues arrangements. The rule does not alter the terms 
    under which the Postal Service exchanges mail with any other country. 
    Countries that are part of the UPU terminal dues system will continue 
    to pay UPU terminal dues. Mail from those countries will continue to be 
    accepted and processed, except for mail posted by or on behalf of 
    mailers who reside in the United States or one of the countries with 
    which the Postal Service has cost-based terminal dues arrangements. 
    That mail will be held for postage or returned as authorized by Article 
    25 of the Universal Postal Convention (Washington 1989).
        The Postal Service is not required to obtain the approval of the 
    President to adopt this rule. Section 407 of title 39, United States 
    Code, provides in pertinent part, ``The decisions of the Postal Service 
    construing or interpreting the provisions of any treaty or convention 
    which has been or may be negotiated and concluded shall, if approved by 
    the President, be conclusive on all officers of the Government of the 
    United States.'' This provision does not limit the authority to adopt 
    regulations, 39 U.S.C. 401(2), but establishes the conditions under 
    which any interpretation of a postal convention will be binding on all 
    officers of the Government. Indeed, the absence of Presidential 
    approval does not make the Postal Service's interpretation invalid, it 
    merely leaves open the possibility that there might be a disagreement 
    with some other interested agency. Presidential approval simply 
    provides a mechanism for resolving disagreements in favor of the Postal 
    Service.
        One commenter asserted that the proposed rule would impermissibly 
    extend the territorial jurisdiction of the Postal Service and could 
    cause conflicts between it and the internal legislation of other 
    countries in which mailers are present. The Postal Service disagrees. 
    The basis of the proposed rule is Article 25 of the Universal Postal 
    Convention. That article authorizes postal administrations to collect 
    domestic postage on certain international mail and the decline to 
    deliver certain international mail. Thus, the proposed rule is not 
    based on domestic law alone, but is based on an international agreement 
    to which virtually all countries adhere. That is far different from the 
    case of purporting to apply domestic legislation to conduct outside the 
    United States. That the Postal Service has decided to apply Article 25 
    selectively to avoid interference with mailers' decisions which do not 
    adversely affect it does not change the application of Article 25 into 
    an extraterritorial extension of United States jurisdiction.
        One commenter asserts that the proposed rule exceeds the authority 
    given by Article 25 because the proposed rule would allow the Postal 
    Service to collect domestic postage on remail posted in a country other 
    than the country where the mailer resides, and Article 25 provides only 
    that postal administrations ``shall not be bound to accept, forward, or 
    deliver'' such mail and ``may send back such items to origin or return 
    them to the senders without repaying the prepaid charge.'' This comment 
    is accurate insofar as there is no express authorization to collect 
    domestic postage on ABC remail as there is for ABA remail. However, the 
    Postal Service does not believe that the absence of an express 
    authorization precludes it from providing mailers an alternative that 
    can be much less onerous than returning the mail to origin. The purpose 
    of Article 25 and IMM 790 is not to punish remail per se, or for that 
    matter, disrupt commercial activities via the mails. As viewed by the 
    Postal Service, Article 25 is intended to ensure that postal 
    administrations receive appropriate compensation for the services they 
    render. Returning mail to origin can take time, and the mail being 
    returned may be time sensitive. The mailer may also have invested more 
    in a mailing than the postage that has been or will have to be paid. In 
    these cases, the option of securing delivery by paying United States 
    domestic postage can be much more desirable than incurring the expense 
    of waiting for the mail to come back, preparing the mail for posting in 
    a third country, and paying new postage to a third postal 
    administration. Moreover, since United States domestic postage rates 
    are among the lowest in the world, there is some likelihood that the 
    mail would simply come back to the United States prepared as United 
    States mail. This being the case, there appears to be no good reason to 
    require mailers to incur the additional expense of re-preparing the 
    mail, shipping it to the United States or some other country, and then 
    paying new postage.
        One commenter asserts that the proposed rule would be a repudiation 
    of the Universal Postal Convention's basic terminal dues arrangements. 
    The Postal Service disagrees. The Convention contains both terminal 
    dues provisions and Article 25 which authorizes administrations not to 
    accept or deliver ABA or ABC remail. As both those provisions are in 
    the Convention, they must be understood as being consistent with one 
    another. In this respect, the existence of Article 25 is a recognition 
    that terminal dues arrangements that are appropriate, and even 
    essential, for the efficient exchange of mails between many countries 
    can be unfairly exploited for individual gain. Enforcement of Article 
    25 is not a repudiation of the terminal dues system, it is a 
    recognition of a vulnerability that permits administrations to protect 
    themselves and their customers from unfair exploitation.
        One commenter asserts that the Postal Service is not exempt from 
    the Administrative Procedures Act (APA) and that the Supreme Court has 
    rejected the Postal Service's claim to be exempt from the APA. The 
    Postal Service disagrees. Section 410 of title 39, United States Code, 
    provides expressly that ``Except as provided by subsection (b) of this 
    section, and except as otherwise provided in this title * * * no 
    Federal law dealing with public or Federal contracts, property, works, 
    officers, employees, budgets, or funds, including the provisions of 
    chapters 5 and 7 of title 5, shall apply to the exercise of the powers 
    of the Postal Service.'' 39 U.S.C. 410(a). This language plainly 
    exempts the Postal Service from the APA, which is in chapters 5 and 7 
    of title 5. In subsection (b) of section 410, only sections 552 (public 
    information), 552a (records about individuals), 552b (open meetings) of 
    title 5 are made applicable. Elsewhere in title 39, only section 3001 
    makes the APA applicable to the Postal Service and then only for 
    mailability proceedings. Thus, nothing in the statute makes the APA 
    applicable to this rulemaking. As for the Supreme Court, in the case 
    mentioned by the commenter, Air Courier Conference of America v. 
    American Postal Workers Union, the Court did not rule on the merits of 
    whether the Postal Service was subject to the APA, but refused to 
    consider an argument based on exemption from the APA because that 
    argument had not been presented to the court below. Not considering an 
    argument is far different from considering an argument and rejecting 
    it.
    
    Definition of United States Resident and of Other Country Resident
    
        Several commenters assert that the proposed rule, insofar as it 
    attempts to elaborate criteria for determining whether a firm or 
    business is resident in the United States in terms of the percentage of 
    ownership of that firm or business by persons who reside in the United 
    States or by other firms or organizations incorporated or organized in 
    the United States, is unreasonable and that it is too broad and could 
    result in legitimate international mailings having to pay twice or 
    having to pay a different compensation rate than the one they are 
    entitled to under the Universal Postal (UPU) Convention. They further 
    assert that it is ambiguous, that it would require a knowledge of 
    corporate information which would be too burdensome for a foreign 
    private carrier or postal administration to ascertain, that it would 
    have adverse consequences operationally and for customers, that efforts 
    to apply the rule will lead to arbitrary actions and disputes, and that 
    it would erect a trade barrier. Similar objections are raised regarding 
    the application of such percentage of ownership criteria to determine 
    the resident status of a sender in another country. In response to 
    these views, the Postal Service is eliminating the percentage of 
    ownership criteria from its proposed rulemaking.
    
    Trade Policy
    
        Two commenters have asserted that the proposed rule is contrary to 
    U.S. trade interests and anti-competitive and that the European 
    Commission has recently started proceedings against enforcement of 
    Article 25. One of the commenters has asserted that Article 25 itself 
    is an anti-competitive, market-allocation scheme. The Postal Service 
    does not agree with these assertions. These commenters have also 
    asserted that President Reagan had instructed the Postal Service not to 
    apply UPU Convention Article 25(4) in an anti-competitive manner. The 
    Postal Service does not consider the proposed rule to be inconsistent 
    with the position President Reagan communicated to the Postal Service 
    or to be anti-competitive. First, the Postal Service sees no 
    inconsistency between U.S. trade interests and its own efforts to 
    assure that it is fairly and adequately compensated for the costs of 
    handling mail from other countries. It would not agree with the 
    implication that remail companies, which target a specific, high-
    density type of mailing for their services, are entitled to subsidized, 
    below-cost delivery of their mailings by postal administrations or that 
    efforts to assure adequate compensation for the cost of delivery of 
    such mailings are anti-competitive. To the extent that remail companies 
    depend upon such below-cost delivery for the services they offer, they 
    are engaged in an abuse of the international mail system and of U.S. 
    mailers whose payments in effect subsidize such services. Article 25 
    permits postal administrations to take action which, rather than being 
    anti-competitive, serves to protect themselves against such abuse. To 
    the extent that private carriers provide end-to-end delivery services, 
    Article 25 simply does not apply to their activities. Furthermore, the 
    contention that the European Commission is proceeding against 
    enforcement of Article 25 is ambiguous. The manner in which actions 
    were taken by some European administrations in the past has been 
    challenged by the European Commission. However, there are postal 
    administrations in Europe, such as the German postal administration, 
    which are now aggressively applying Article 25 and these actions are 
    not being challenged by the European Commission.
    
    Improvements in the Terminal Dues System
    
        Three commenters assert that the Postal Service should deal with 
    the problem of uneconomic remail by correcting the flaws of the UPU 
    terminal dues system instead of taking administrative action. The 
    Postal Service agrees that the best way of dealing with uneconomic 
    remail would be to correct the flaws of the terminal dues system, but 
    it has concerns about whether the 186 member countries of the Universal 
    Postal Union, many of which have a vested interest in the current 
    structure, can agree on a system that will adequately solve the 
    problem.
        The Postal Service is, nevertheless, working to establish a fully 
    cost-based terminal dues system, that is, a system to cover the 
    specific costs of each delivering postal administration which agrees to 
    participate in the new system, thus providing fair and equal 
    reimbursement for delivery services regardless of where mail is entered 
    in the new system by participating administrations. Fewer than thirty 
    industrialized countries, however, have an interest in developing such 
    a system. Although these countries have made progress in achieving 
    consensus on the requirements for and operation of such a system, the 
    problem of ``unequal access'' is likely to be exacerbated. The majority 
    of countries which will continue to apply a simplified, lower-rate UPU 
    system in all their mail exchanges will have more favorable access to 
    the industrialized countries participating in the cost-based system 
    than the industrialized countries will have with each other.
        To permit a new country-specific cost-based system to operate 
    equitably and without the unfair arbitrage experienced between the 
    current cost-related system and the UPU terminal dues system would 
    require a majority of the member countries of the Universal Postal 
    Union to agree either to a global country-specific cost-based terminal 
    dues system or to an interface or ``bridge'' arrangement between the 
    simpler UPU terminal dues system and the country-specific cost-based 
    system. In considering the difficulties of persuading the UPU of the 
    market-influenced reasons for cost-based terminal dues, it should be 
    noted that a majority of UPU member countries, many of which are 
    developing countries, would lose significant terminal dues revenues 
    under a country-specific cost-based system which would require payment 
    of higher prices for delivery services to the industrialized countries 
    and lower prices for the same services to approximately 160 other 
    countries.
        Despite the obstacles, the Postal Service is working toward the 
    adoption at UPU Congress of proposals which, if approved, will 
    significantly reduce the flaws in the current terminal dues system. 
    Although the Postal Service is optimistic about the adoption of some of 
    these proposals, it has only one of approximately 186 votes at UPU 
    Congress and cannot guarantee the outcome.
        Furthermore, the Postal Service is obligated to comply with the 
    terms of the Acts of the Universal Postal Union currently in effect. 
    Outside of the framework of these Acts, the Postal Service can 
    negotiate other terminal dues arrangements only with the agreement of 
    another country or group of countries; it cannot impose a particular 
    cost-based terminal dues arrangement on other countries nor can it 
    unilaterally impose a particular level of terminal dues on inbound 
    international mail.
        The UPU meets in Congress every five years, and the next 
    opportunity to achieve the agreement necessary to implement an 
    equitable and fully cost-based terminal dues system among the 
    industrialized countries will arise at the Seoul Congress in late 1994. 
    The Acts of the Universal Postal Union adopted at that Congress will 
    take effect in 1996.
        In the meantime, therefore, the application of the proposed rule is 
    the only means of providing protection against the abuse of the current 
    terminal dues system.
    
    Administration of Proposed Rule
    
        One commenter asserted that enforcement of the rule is bound to be 
    arbitrary and capricious, that it cannot be strictly enforced without 
    incurring excessive costs, and that, if selectively enforced, it would 
    be enforced only against competitors of the Postal Service. The Postal 
    Service disagrees with this assertion. The elimination of the criteria 
    for determining resident status which relates to percentage of 
    ownership will simplify enforcement activity. Although excessive costs 
    might be incurred if one-hundred percent effectiveness were required, 
    enforcement can still be undertaken in a sufficiently vigorous and 
    cost-effective manner to maintain a credible deterrent to abuse of the 
    system. Furthermore, the effort to distinguish so-called competitors 
    from non-competitors engaged in efforts to evade fair payment of 
    delivery costs would, even if it were possible, certainly lead to 
    excessive administrative costs and be self-defeating. As the purpose of 
    the rule is solely to assure fair and adequate reimbursement of 
    delivery costs, there is no incentive to make such an effort.
        One commenter asserts that there has been no independent 
    verification that UPU terminal dues do not adequately compensate the 
    Postal Service for its expense in delivering foreign-origin mail and 
    that participation in a study of international costs and revenues by 
    the Postal Rate Commission should be a prerequisite to implementing the 
    proposed rule. The Postal Service disagrees. The Postal Service alone 
    is responsible international mail services, and there is no legal 
    requirement that its determinations be subject to verification by any 
    other agency. The Postal Rate Commission, in particular, has no 
    jurisdiction over international rates or services, so any study 
    conducted by the Commission would have no legal significance. The 
    Postal Service has concluded that the proposed rule, as amended, would 
    benefit users of United States mail. No persuasive reason has been put 
    forward why implementation of that rule should be deferred while an 
    agency with no responsibility for international services conducts a 
    cost study that would have no legal significance. Accordingly, the 
    Postal Service will not defer implementation of the proposed rule.
        One commenter asserts that the Postal Service has offered no data 
    on the losses against which the proposed rule would provide protection 
    and no support of the need for such a rulemaking. The assertion that 
    the Postal Service has not attempted to precisely quantify all losses 
    is correct as far as it goes. However, based upon mailings already 
    found to be in violation of Subchapter 790 and upon the continuing 
    nature of these activities, the Postal Service considers that it has an 
    adequate basis for its estimate that it has already suffered 
    significant losses and for its judgment that it will continue to incur 
    such losses unless more effective remedial action is taken. Therefore, 
    by giving the sender the option of either paying domestic postage to 
    secure delivery or accepting their return to origin, such losses can be 
    avoided or significantly reduced.
        One commenter asserted that, under the proposed rule, the Postal 
    Service could decide at its own discretion whether mail was of 
    legitimate international origin or whether it should have been entered 
    as domestic mail and that it could make such decisions without prior 
    consultation with regulators, other postal administrations, or other 
    administrative bodies. The Postal Service agrees that it will exercise 
    its own discretion in implementing the proposed rule, but disagrees 
    with any implication that this will be done in an arbitrary manner and 
    without opportunity for consultation. The Postal Service considers the 
    exercise of this responsibility to be fully consistent with its 
    statutory authority and responsibility to assure that it is 
    appropriately and adequately compensated for the costs of the services 
    it provides. The purpose of the proposed rule is to provide senders and 
    foreign postal administrations with information about Postal Service 
    enforcement activities which will help assure that mailings comply with 
    Postal Service regulations and are not subject to such decisions. It is 
    the responsibility of the sender to be informed about these regulations 
    and to comply with them. The elimination of the percentage of ownership 
    criteria should simplify compliance with these Postal Service 
    regulations. If the sender or a foreign postal administration remains 
    uncertain about whether a mailing complies with Postal Service 
    regulations, then it is the responsibility of the sender or the foreign 
    postal administration to consult with the Postal Service in advance of 
    the mailing. In any event, when the Postal Service determines that it 
    is appropriate to apply the proposed rule, it will attempt to consult 
    with the sender and to give the sender an opportunity to pay the 
    required domestic postage or to explain why the mailing should be 
    delivered without such payment. The sending administration will then 
    also have an opportunity to comment on the enforcement of the rule by 
    the Postal Service.
        One commenter asserts that the proposed rule is inconsistent with 
    the policy of allowing outbound remail from the United States, that it 
    would deny to foreign firms the opportunities for remail to the United 
    States that the Postal Service allows to firms in the United States, 
    that it does not take into account remailing opportunities to the 
    United States ``between countries not listed in Exhibit 792.1,'' that, 
    if adopted by other countries, the rule would eliminate the possibility 
    of sending ``prepaid mailshots'' from the country of choice of the 
    sender, and that the proposed ruling would disturb the climate for 
    establishing cost-based terminal dues. The Postal Service disagrees 
    with these assertions, at least to the extent that they refer to 
    mailings for which the country of destination will be adequately 
    compensated for its delivery costs. It is true that the suspension of 
    the Private Express Statutes for outbound international mail will 
    permit private delivery services, including remail companies, to carry 
    mail to other countries without Postal Service constraint. In such 
    circumstances, however, the Postal Service itself incurs no costs and 
    suffers no cost disadvantage. The purpose of the proposed rule is to 
    provide protection only in those circumstances where the Postal Service 
    does incur costs and would suffer a cost disadvantage. Furthermore, the 
    fact that Postal Service has suspended its own Private Express Statutes 
    with respect to outbound international mail does not mean that private 
    delivery services or remail companies are not subject to the 
    corresponding statutes of other countries or to the actions which other 
    postal administrations may take to enforce Article 25 or to assure 
    adequate compensation for the delivery of mail from senders in the 
    United States sent indirectly by way of third countries providing 
    access to the international mail system at below-cost postage rates. 
    With respect to remail opportunities to the United States ``between 
    countries not listed in Exhibit 792.1,'' as long as the sender is a 
    resident of such a country, the Postal Service suffers no cost 
    disadvantage for such mailings. With respect to the threat to ``prepaid 
    mailshots'' from the country of choice of the sender, there is no 
    threat to ``prepaid mailshots'' as long as there has been no evasion of 
    the payment to the delivering country of appropriate postage rates or 
    terminal dues. With respect to the assertion that the proposed rule 
    would disturb the climate for establishing cost-based terminal dues, 
    the Postal Service is of the view that such a rule vigorously enforced 
    will strengthen the incentive to adopt a cost-based terminal dues 
    system in order to reduce the need for such enforcement activity.
        One commenter suggested what he considered to be clarifying changes 
    to sections 792.31 and 792.32 of the proposed rule, which explain that 
    a mailing is ``by or on behalf of a person or firm who resides in the 
    United States'' or ``by or on behalf of a person or firm who resides in 
    a country listed in Exhibit 792.1'' where ``such a person or firm seeks 
    or expects to derive economic benefit or advantage from that mailing'' 
    in relation to activities or to ``operations physically conducted'' in 
    the United States or in one of the countries listed in Exhibit 792.1. 
    The commenter suggested the addition of ``with respect to the cost of 
    postage'' after ``if such a person seeks or expects to derive economic 
    benefit or advantage from that mailing'' to clarify that the economic 
    benefit is with respect to the cost of the postage for the mailing and 
    not because of the content of the mailing. The Postal Service has not 
    adopted this suggestion because the ``economic benefit or advantage'' 
    noted in Sec. 792.31 and 792.32 refers to the gains which are the 
    result of the addressees response to the mailings expected by the 
    person or firm engaged in the mailing and not gain which result from 
    avoiding the cost of postage.
        The Postal Service adopts the following amendments to the 
    International Mail Manual, which is incorporated by reference in the 
    Code of Federal Regulations. See 39 CFR 20.1.
    
    List of Subjects in 39 CFR Part 20
    
        Foreign relations, international postal services.
    
    PART 20--[AMENDED]
    
        1. The authority citation for 39 CFR part 20 continues to read as 
    follows:
    
        Authority: 5 U.S.C. 552(a); 39 U.S.C. 401, 404, 407, 408.
    
        2. Chapter 7 of the International Mail Manual is amended by 
    revising section 790 to read as follows:
    
    CHAPTER 7--TREATMENT OF INBOUND MAIL
    
    * * * * *
    
    
    790    Items Mailed Abroad by or on Behalf of Senders in the U.S. and 
    Certain Other Countries.
    
    
    791  Postage Payment Required.
    
        Payment of United States postage is required to secure delivery of 
    mail described in 792 under the following circumstances:
        a. The mailing is by or on behalf of a person or firm that resides 
    in the United States and the foreign rate of postage applied to such 
    items is lower than the comparable United States domestic rate of 
    postage, or 1000 or more such items are mailed in a 30 day period 
    regardless of whether the foreign postage is lower than the comparable 
    United States postage; or
        b. The mailing is by or on behalf of a person or firm that resides 
    in a country listed in Exhibit 792.1, is posted in a country not listed 
    in Exhibit 792.1, and 1000 or more items are mailed in a 30 day period.
    
    
    792  Mailings Affected.
    
        792.1  Special Conditions. The special conditions apply to items of 
    mail which are posted in foreign countries:
        a. By or on behalf of persons or firms who reside in the United 
    States; or
        b. By or on behalf of persons or firms who reside in one of the 
    countries listed in Exhibit 792.1.
    
    792.2  Residency
    
        792.21  Criteria for U.S. Residency. A firm is a resident of the 
    United States if it meets the following criteria:
        a. It has a place of business in the United States; or
        b. It is incorporated or otherwise in the United States, its 
    territories, or possessions.
        792.22  Criteria for Countries Listed in Exhibit 792.1 A firm is a 
    resident of a country listed in Exhibit 792.1 if it meets the following 
    criteria:
        a. It has its principal place of business in that country; or
        b. It is incorporated or otherwise in that country, its territories 
    or possessions.
    
    792.3  By or on Behalf
    
        792.31  United States Resident. A mailing is by or on behalf of a 
    person or firm who resides in the United States if such a person or 
    firm seeks or expects to derive economic benefit or advantage from that 
    mailing.
        792.32  Resident of a County Listed in Exhibit 972.1. A mailing is 
    by or on behalf of a person or firm who resides in a country listed in 
    Exhibit 792.1 if such a person or firm seeks or expects to derive 
    economic benefit or advantage from that mailing related to operations 
    physically conducted in any of those countries. These operations 
    include, but are not limited to, selling goods manufactured in those 
    countries and selling services provided in those countries.
        792.4  Place of Business. A place of business in the United States 
    is any location in the United States, its territories, or possessions 
    where a firm's employees or agents regulatory have personal contact 
    with other individuals for the purpose of conducting the firm's 
    business. For the purposes of this section, a firm whose employees or 
    agents have personal contact with others for the purpose of conducting 
    the firm's business in different places in the United States for short 
    periods of time, e.g., at hotels in different cities for one or two 
    days at a time, has a place of business in the United States if the 
    aggregate amount of time spent in the United States is 180 days or more 
    during a one year period.
        792.5  Agents. The use of a non-exclusive agent in the United 
    States for the sole purposes of accepting orders and remissions for 
    transmission to a firm in another country or of distributing 
    merchandise manufactured in another country and shipped to the United 
    States in bulk does not by itself constitute establishment of a place 
    in the United States.
    
    
    793  Advance Payment Required.
    
        793.1  Sample of Envelope. Senders affected by 791 must submit a 
    sample of the proposed mailing (envelope and contents) with (1) a 
    statement as to the number of items to be mailed, (2) when and where 
    the mailing will take place, and (3) a check, made payable to the U.S. 
    Postal Service, to cover the amount of the applicable U.S. postage, to 
    the:
    
    Manager, Business Mail Acceptance, Customer Service and Sales, U.S. 
    Postal Service, 475 L'Enfant Plaza SW., Washington, DC 20260-6808.
    
        793.2  Headquarters Notification. Notification of postage 
    acceptance and approval of the mailing will be given by Headquarters to 
    the sender and to the appropriate U.S. receiving exchange office. This 
    will permit the items in the mailing to go forward to the addresses 
    without delay when the items reach the United States.
    
    
    794  Treatment if Advance Payment Not Made.
    
        794.1  Return or Disposal of Items. Items may be returned to origin 
    or disposed of in accordance with postal regulations if U.S. postage is 
    not paid.
        794.2  Mailings Received Without Advance Payment. A mailing subject 
    to 791 received without advance payment of U.S. domestic postage will 
    be held at the receiving exchange office. The exchange office will 
    report all such mailings to the:
    
    Manager, Business Mail Acceptance, Customer Service and Sales, U.S. 
    Postal Service, 475 L'Enfant Plaza SW., Washington, DC 20260-6808.
    
        Reports must contain (1) title and/or nature of the items, (2) 
    identity of sender, (3) number of items detained, (4) weight of a 
    single item, (5) foreign postage paid per item, and (6) office of 
    mailing. The exchange office will be advised to release the mail when 
    the applicable postage has been paid.
    
    
    795  Report of Mailings.
    
        Any mail appearing to be subject to the conditions of this 
    subchapter must be reported to Business Mail Acceptance, at USPS 
    Headquarters, by the U.S. receiving exchange office.
    
    Exhibit 792.1
    
    Canada
    Denmark
    Finland
    France
    Germany
    Great Britain and Northern Ireland
    Iceland
    Ireland
    Italy
    Luxembourg
    Netherlands
    Norway
    Spain
    Sweden
    Stanley F. Mires,
    Chief Counsel, Legislative.
    [FR Doc. 94-5428 Filed 3-9-94; 8:45 am]
    BILLING CODE 7710-12-M
    
    
    

Document Information

Published:
03/10/1994
Department:
Postal Service
Entry Type:
Uncategorized Document
Action:
Final rule.
Document Number:
94-5428
Dates:
12:01 a.m., March 10, 1994.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: March 10, 1994
CFR: (1)
39 CFR 20