[Federal Register Volume 60, Number 243 (Tuesday, December 19, 1995)]
[Rules and Regulations]
[Pages 65238-65240]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30668]



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POSTAL SERVICE

39 CFR Part 20


Interim Rule Amending International Mail Manual Subchapter 790, 
Items Mailed Abroad by or on Behalf of Senders in the U.S. and Certain 
Other Countries

AGENCY: Postal Service.

ACTION: Interim rule.

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SUMMARY: On March 10, 1994, the Postal Service published in the Federal 
Register (59 FR 11188-11193) amendments to certain rules in 
International Mail Manual (IMM) subchapter 790 to clarify when a 
mailing in a foreign country is by or on behalf of a resident of the 
United States for the purposes of collecting U.S. domestic postage; and 
to authorize the collection of U.S. domestic postage on certain mail 
posted in a foreign country by or on behalf of a person who is not a 
resident of that foreign country. This document amends IMM subchapter 
790 to remove the threshold of 1,000 pieces mailed abroad in a 30-day 
period by a U.S. resident and to remove the standards relative to the 
collection of U.S. domestic postage on ``A-B-C remail''.The basis for 
the amended rules is contained in article 25, Posting Abroad of Letter-
Post Items, of the Universal Postal Convention (Washington, 1989).

DATES: The interim rule is effective January 1, 1996. Comments must be 
received on or before January 18, 1996.

ADDRESSES: Written comments should be mailed or delivered to the 
Manager, 

[[Page 65239]]
International Pricing, U.S. Postal Service, 475 L'Enfant Plaza SW RM 
4400-EB, Washington, DC 20260-6500. Copies of all written comments will 
be available at the above address for public inspection and 
photocopying between 9 a.m. and 4 p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: John F. Alepa, (202) 268-4071.

SUPPLEMENTARY INFORMATION: In 1994, the Universal Postal Union (UPU) 
met in Congress in Seoul, Korea, to amend and adopt the Acts of the 
Universal Postal Union. The Acts come into force on January 1, 1996. 
The United States is a member of the UPU. By virtue of that membership, 
the U.S. Postal Service must adhere to the Agreements of the UPU to 
which it is a signatory.
    The UPU adopted revisions to the Acts of the Universal Postal 
Union, including article 25 of the Universal Postal Convention. Article 
25 no longer contains a provision permitting the Postal Service to 
collect U.S. domestic postage from a resident of the United States when 
mailings made abroad for that resident exceed 1,000 pieces in a 30-day 
period without regard to whether the postage paid in the foreign 
country is less than the applicable U.S. domestic postage. In addition, 
article 25 no longer grants authority to the Postal Service to collect 
U.S. domestic postage for items for delivery in the United States from 
a mailer who posts, or causes to be posted, such items in a country 
other than the country of that mailer's residence. Rather, any charge 
will be due from the dispatching postal administration.
    As a result of the revisions to article 25, the Postal Service is 
amending IMM subchapter 790 to remove the threshold of 1,000 pieces 
mailed abroad in a 30-day period by a U.S. resident and to remove the 
standards relative to the collection of U.S. domestic postage on ``A-B-
C remail'' (that is, a method of mailing in which a person or firm 
mails from a country other than the one of which it is a resident to a 
third country in order to benefit from lower international postage 
rates in the country of mailing).
    Specifically, the 1994 Congress amended article 25, Posting Abroad 
of Letter-Post Items, which contains four paragraphs. Paragraphs 1 
through 3 relate to items mailed from abroad back into the country of 
residence of the sender. Paragraph 4 relates to items mailed by 
residents of one country from a second country for delivery in a third 
country. This method of mailing (as discussed above) is commonly 
referred to as ``A-B-C remail.''
    Paragraph 1 was amended to remove the provision that permitted 
postal administrations to invoke action against a person or firm 
mailing to that person's or firm's country of residence from another 
country solely on the basis of the number of items mailed. Article 25, 
paragraph 1, requires that the mailing be made ``with the object of 
profiting by more favorable rate conditions there.'' To comply with 
this revision, the Postal Service is removing from IMM subchapter 790 
the provision that provides that applicable U.S. domestic postage is 
due when ``1,000 or more such items are mailed in a 30-day period 
regardless of whether the foreign postage is lower than the comparable 
U.S. postage.''
    Paragraph 4 regulates ``A-B-C remail.'' This method of mailing 
occurs when a resident of country A mails from country B mail 
destinating in country C. This method is generally economically 
feasible because of differences in the terminal dues system provided by 
the Universal Postal Convention. Most developing countries (which 
generally originate small volumes of outgoing international mail) are 
assigned a lower terminal dues rate than developed countries (which 
generally originate large volumes of outgoing international mail).
    Under the current terminal dues system, for example, two countries 
each annually exchanging more than 150 tons of mail would pay terminal 
dues equivalent to 25 cents for a \1/2\-ounce item. By contrast, two 
countries each annually exchanging 150 tons or less of mail would pay 
terminal dues equivalent to only 6 cents for the same \1/2\-ounce item.
    When ``A-B-C remail'' is used, that mailing method harms both 
country A (because it loses revenue and mail volume) and country C 
(because it receives less in terminal dues from country B than it would 
receive from country A). This lower rate of terminal dues generally 
does not compensate the delivering country for the actual cost of 
handling such mail.
    To correct this situation, the 1994 Universal Postal Congress 
adopted a new terminal dues system and introduced a separate rate for 
``bulk mail,'' regardless of where that mail originates. The delivering 
country will be able to collect the same rate in terminal dues without 
regard to the country originating the mail. This revised system should 
reduce considerably the volume of mail migrating from developed 
countries to developing countries solely to take advantage of lower 
international rates made possible from different terminal dues rates.
    In some cases, the 1994 Congress recognized that even this ``bulk 
mail'' rate of terminal dues would not provide full compensation to the 
delivering postal administration and that migration of mail might 
continue. Accordingly, article 25, paragraph 4, allows the delivering 
postal administration to collect the equivalent of ``bulk mail'' 
terminal dues from the dispatching postal administration if the 
delivering administration is not receiving appropriate remuneration. 
However, the delivering administration will no longer be able to 
collect extra compensation from the sender of the items. Remuneration 
is strictly between the dispatching and delivering postal 
administrations. Therefore, the Postal Service is eliminating its rules 
in IMM subchapter 790 concerning the collection of U.S. domestic 
postage from the sender of so-called ``A-B-C remail.''
    Although 39 U.S.C. 407 does not require advance notice and 
opportunity for submission of comments, and the Postal Service is 
exempted by 39 U.S.C. 410(a) from the advance notice requirements of 
the Administrative Procedure Act regarding rulemaking (5 U.S.C. 553), 
the Postal Service invites public comment.
    The Postal Service adopts on an interim basis, pending receipt and 
consideration of public comment, the following amendments to subchapter 
790 of 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, Incorporation by reference, 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. The International Mail Manual is amended by revising subchapter 
790, Items Mailed Abroad by or on Behalf of Senders in the U.S. and 
Certain Other Countries, to read as follows:

790  Items Mailed Abroad by or on Behalf of Senders in the United 
States

791  Postage Payment Required

    Payment of U.S. postage is required to secure delivery of mail when 
the mailing is by or on behalf of a person or firm that is a resident 
of the United States and the foreign postage rate applied to such items 
is lower than the comparable U.S. domestic postage rate. 

[[Page 65240]]


792  Definition of Terms

792.1  Resident

    A resident of the United States includes any firm that has a place 
of business in the United States or is incorporated or otherwise 
organized in the United States, its territories, or its possessions.

792.2  By or on Behalf

    A mailing is made by or on behalf of a person or firm that is a 
resident of the United States if such a resident seeks or expects to 
derive economic benefit or advantage from that mailing.

792.3  Place of Business

    A place of business in the United States is any location in the 
United States, its territories, or its possessions where a firm's 
employees or agents regularly have personal contact with other 
individuals for conducting the firm's business. For the purposes of 
this section, a firm whose employees or agents have personal contact 
with others for conducting the firm's business in different places in 
the United States for short periods (for example, at hotels in 
different cities for 1 or 2 days at a time) is considered to have a 
place of business in the United States if the aggregate amount of time 
spent in the United States is 180 days or more within 12 consecutive 
months.

792.4  Agent

    The use of a nonexclusive agent in the United States for the sole 
purpose of accepting orders and remissions for transmission to a firm 
in another country or for the sole purpose of distributing merchandise 
manufactured in another country and shipped to the United States in 
bulk does not by itself establish a place of business in the United 
States.

793  Advance Payment Required

793.1  Sample Mailpiece

    A sender affected by the provisions in 791 must submit a sample 
mailpiece (envelope and contents) from the proposed mailing; a 
statement about the number of items to be mailed, the date of mailing, 
and the place of mailing; and a check, made payable to the U.S. Postal 
Service, to cover the amount of the applicable U.S. postage. The sample 
mailpiece, statement, and check must be sent to: Manager, International 
Pricing, U.S. Postal Service, 475 L'Enfant Plz. SW., Washington, DC 
20260-6500.

793.2  Headquarters Notification

    Headquarters provides notification of postage acceptance and 
approval of the mailing to the sender and to the receiving U.S. 
exchange office. This notification permits the items in the mailing to 
go forward to the addressees without delay when the items reach the 
United States.

794  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 Without Advance Payment

    A mailing subject to the provisions in 791 received without advance 
payment of U.S. domestic postage is held at the receiving U.S. exchange 
office. The exchange office reports the mailing to the manager of 
International Pricing, USPS Headquarters. (The exchange office is 
advised to release the mail when the applicable postage is paid.) The 
report must contain the following information:
    a. Title and/or nature of the items.
    b. Identity of the sender.
    c. Number of items detained.
    d. Weight of a single item.
    e. Foreign postage paid per item.
    f. Country of mailing.

795  Report of Mailings

    The receiving U.S. exchange office must report any mail appearing 
to be subject to the provisions of this subchapter to the manager of 
International Pricing, USPS Headquarters.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 95-30668 Filed 12-18-95; 8:45 am]
BILLING CODE 7710-12-P