59544 Federal Register / Vol. 69, No. 192 / Tuesday, October 5, 2004 / Rules and Regulations 

BILLING CODE 4910–13–C 

(b) Within 50 hours TIS or by the next 

scheduled inspection for each hub assembly, 

whichever occurs first, and thereafter at 

intervals not to exceed 50 hours TIS, 

determine the torque of the four main rotor 

flapping bearing retaining bolts or nuts. 

While holding the bolt head, apply 100 footpounds (135Nm) of torque to the nut in the 

tightening direction. 

(1) If 100 foot-pounds (135Nm) of torque is 

reached without movement of the nut, before 

further flight, torque the nut to 125 footpounds. 

(2) If any nut moves before reaching 100 

foot-pounds (135Nm) of torque, before 

further flight, remove both flapping bearings 

from the hub assembly. Inspect the yoke, the 

bolt and nut, and the trunnion supports with 

a 10X or higher magnifying glass, for a crack, 

fretting, or buffer deterioration. 

(i) If a crack is found on any part, before 

further flight, replace the part with an 

airworthy part. 

(ii) If fretting or buffer deterioration is 

found on any part, before further flight, 

repair any unairworthy part or replace the 

part with an airworthy part. 

(c) To request a different method of 

compliance or a different compliance time 

for this AD, follow the procedures in 14 CFR 

39.19. Contact the Safety Management Group, 

FAA, for information about previously 

approved alternative methods of compliance. 

(d) This amendment becomes effective on 

November 9, 2004.

Note 2: The subject of this AD is addressed 

in Transport Canada (Canada) AD CF–2003–

27, dated November 17, 2003.

Issued in Fort Worth, Texas, on September 

24, 2004. 

Scott A. Horn, 

Acting Manager, Rotorcraft Directorate, 

Aircraft Certification Service.

[FR Doc. 04–22265 Filed 10–4–04; 8:45 am] 

BILLING CODE 4910–13–P

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 1

RIN 3038–AB56

Close Out of Offsetting Positions; 

Correction

AGENCY: Commodity Futures Trading 

Commission.

ACTION: Correcting amendment.

SUMMARY: This document contains a 

correcting amendment to the final rule 

amendments that were published on 

October 23, 2001 (66 FR 53510). Those 

rule amendments related to various 

aspects of the operations of 

intermediaries of commodity interest 

transactions. The particular rule in issue 

concerns the close out of offsetting 

positions. The correcting amendment 

makes clear that an account controller, 

in addition to the customer, may 

instruct a futures commission merchant 

(FCM) to hold open offsetting long and 

short commodity interest positions.

EFFECTIVE DATE: October 5, 2004.

FOR FURTHER INFORMATION CONTACT:

Lawrence B. Patent, Deputy Director, 

Compliance and Registration Section, 

Division of Clearing and Intermediary 

Oversight, Commodity Futures Trading 

Commission, 1155 21st Street NW., 

Washington, DC 20581. Telephone (202) 

418–5439.

SUPPLEMENTARY INFORMATION: On 

October 23, 2001, the Commodity 

Futures Trading Commission 

(Commission) published final 

amendments to Commission Rule 1.46, 

among others. The Commission 

amended Rule 1.46 to permit customers 

or account controllers to instruct FCMs 

(in writing or orally) if they wish to 

deviate from the default rule that 

requires FCMs to close out offsetting 

long and short commodity interest 

positions on a first-in, first-out basis, 

looking across all accounts carried for 

the same customer. 66 FR 53510, 53514, 

53517–18. The Commission stated that, 

‘‘[i]n order to implement this revision of 

Rule 1.46, the Commission is amending 


ER05OC04.007</GPH>
Federal Register / Vol. 69, No. 192 / Tuesday, October 5, 2004 / Rules and Regulations 59545

1 66 FR 45221, 45227, 45230 (August 28, 2001).

2 66 FR 39008, 39017, 39022 (June 22, 2000) 

(proposed rules); 66 FR 77993, 78007, 78013 

(December 13, 2000) (final rules). Due to the 

intervening enactment of revisions to the 

Commodity Exchange Act by the Commodity 

Futures Modernization Act of 2000 (CFMA), the 

Commission withdrew almost all of the final rules 

relating to intermediaries adopted in November 

2000, including the amendments to Rule 1.46. Upon 

further review of the amendments to Rule 1.46 in 

light of the enactment of the CFMA, the 

Commission re-proposed and re-adopted the 

amendments to Rule 1.46 in 2001 without 

substantive change. Although comments were 

received on both proposals to amend Rule 1.46, no 

one pointed out the discrepancy between the 

preamble and the regulatory text cited above.

the rule by inserting, after the words 

‘omnibus accounts’ in paragraph (a), the 

phrase ‘or where the customer or 

account controller has instructed 

otherwise.’ ’’ Id. at 53514 (emphasis 

added). 

Despite this clear statement of the 

Commission’s intent in the preamble of 

the adopting Federal Register release, 

the regulatory text neglected to include 

the words ‘‘or account controller,’’ so 

that it appears that only the customer 

may direct an FCM to deviate from the 

default rule requiring closing out of 

offsetting long and short commodity 

interest positions. Id. at 53517. The 

same discrepancy between the 

Commission’s clear intention as 

expressed in the preamble and the 

regulatory text appears in the proposing 

release, 1 as well as in earlier releases 

proposing and adopting the same rule 

amendment. 2 The Commission’s clear 

intention to permit account controllers 

as well as customers to instruct an FCM 

to hold open an offsetting position is 

bolstered by the fact that, prior to the 

rule amendments, the rule contained 

exceptions that permitted account 

controllers to make such an instruction, 

albeit subject to certain conditions. 

Amendments intended to broaden, 

simplify and streamline the rule would 

not further restrict those persons able to 

take advantage of the ability to deviate 

from the normal procedure.

The Commission, to eliminate the 

inadvertent confusion that it may have 

created in this area, has determined to 

make a technical amendment to the 

introductory text of Rule 1.46(a) so that 

it is clear that an account controller, as 

well as the customer, may instruct an 

FCM to hold open offsetting commodity 

interest positions. Of course, an FCM 

retains the discretion to refuse to honor 

any such instruction from a customer or 

account controller and to apply the 

general rule of closing out offsetting 

long and short commodity interest 

positions on a first-in, first-out basis. 

Need for Correction 

As published, the final rules contain 

regulatory text that may prove to be 

misleading and is in need of 

clarification.

List of Subjects in 17 CFR Part 1

Commodity futures; Reporting and 

recordkeeping requirements.

PART 1—GENERAL REGULATIONS 

UNDER THE COMMODITY EXCHANGE 

ACT

■ Accordingly, 17 CFR Part 1 is corrected 

by making the following technical 

amendments:

■ 1. The authority citation for Part 1 

continues to read as follows:

Authority: 7 U.S.C. 1a, 2, 2a, 4, 4a, 6, 6a, 

6b, 6c, 6d, 6e, 6f, 6g, 6h, 6i, 6j, 6k, 6l, 6m, 

6n, 6o, 6p, 7, 7a, 7b, 8, 9, 12, 12a, 12c, 13a, 

13a–l, 16, 16a, 19, 21, 23 and 24.

■ 2. In § 1.46, paragraph (a) introductory 

text is revised to read as follows:

(a) Application of purchases and sales.

Except with respect to purchases or sales 

which are for omnibus accounts, or 

where the customer or account controller 

has instructed otherwise, any futures 

commission merchant who, on or subject 

to the rules of a designated contract 

market or registered derivatives 

transaction execution facility:

* * * * *

§ 1.46 Application and closing out of off 

setting long and short positions.

Issued in Washington, DC on September 

28, 2004 by the Commission. 

Jean A. Webb, 

Secretary of the Commission.

[FR Doc. 04–22298 Filed 10–4–04; 8:45 am] 

BILLING CODE 6351–01–M

POSTAL SERVICE

39 CFR Parts 20 and 211

International Mail Manual; 

Incorporation by Reference

AGENCY: Postal Service.

ACTION: Final rule.

SUMMARY: The Postal Service announces 

the issuance of Issue 30 of the 

International Mail Manual (IMM), and 

its incorporation by reference in the 

Code of Federal Regulations.

EFFECTIVE DATE: This final rule is 

effective on October 5, 2004. The 

incorporation by reference of Issue 30 of 

the IMM is approved by the Director of 

the Federal Register as of October 5, 

2004.

FOR FURTHER INFORMATION CONTACT:

Obataiye B. Akinwole, (202) 268–7262.

SUPPLEMENTARY INFORMATION: Issue 30 of 

the International Mail Manual was 

issued on August 1, 2004. It replaced 

the previous issue of the IMM, and 

contained all IMM revisions from June 

13, 2003, through July 22, 2004. 

This new Issue of the IMM continues 

to serve the objectives of the Postal 

Service’s Transformation Plan of April 

2000, to enable the Postal Service to 

fulfill its long-standing mission of 

providing affordable, universal mail 

service. The Plan’s key strategies 

include improving operational 

efficiency, supporting growth through 

added value to customers, and 

enhancing the Postal Service’s 

performance-based culture. 

In addition, Issue 30 sets forth 

specific changes affecting international 

postal services, such as the adoption of 

new customs forms for international 

mail and military mail, and the network 

change that removed Washington Dulles 

International Airport as a U.S. 

International Exchange Office. The new 

Issue also corrects various printing and 

format errors and omissions in the 

previous Issue. 

The International Mail Manual is 

available to the public on a subscription 

basis only from: New Orders, 

Superintendent of Documents, P.O. Box 

371954, Pittsburgh, PA 15250–7954. 

The subscription price for one issue is 

currently $36 to addresses in the United 

States, and $50.40 to all foreign 

addresses. The IMM is also published 

and available to all users on the Internet 

at http://pe.usps.gov.

List of Subjects 

39 CFR Part 20

Foreign relations, Incorporation by 

reference. 

39 CFR Part 211

Administrative practice and 

procedure.

■ In view of the considerations 

discussed above, the Postal Service 

hereby amends 39 CFR chapter I as 

follows:

PART 211—APPLICATION OF 

REGULATIONS

■ 1. The authority citation for part 211 

continues to read as follows:

Authority: 39 U.S.C. 201, 202, 401(2), 402, 

403, 404, 410, 1001, 1005, 1209; Pub. L. 91–

375, Secs. 3–5, 84 Stat. 773–75.

§ 211.2 [Amended]

■ 2. In § 211.2(a)(2), remove the words 

‘‘Publication 42 (International Mail)’’