26958 Federal Register / Vol. 74, No. 107 / Friday, June 5, 2009 / Rules and Regulations 

The revision and additions read as 

follows: 

§ 3.700 General. 

* * * * * 

(a) * * * 

(3) * * * For members of the Armed 

Forces who separated under Chapter 61 

of title 10, United States Code, on or 

after January 28, 2008, no recoupment of 

severance pay will be made for 

disabilities incurred in line of duty in a 

combat zone or incurred during 

performance of duty in combat-related 

operations as designated by the 

Department of Defense. 

(Authority: 10 U.S.C. 1174(h)(2) and 1212(d)) 

* * * * * 

(5) * * * 

(i) * * * The Federal income tax 

withholding amount is the flat 

withholding rate for Federal income tax 

withholding. 

* * * * * 

(iii) Where payment of special 

separation benefits under 10 U.S.C. 

1174a was made on or after December 

5, 1991, VA will recoup from disability 

compensation an amount equal to the 

total amount of special separation 

benefits less the amount of Federal 

income tax withheld from such pay. The 

Federal income tax withholding amount 

is the flat withholding rate for Federal 

income tax withholding. 

(Authority: 10 U.S.C. 1174 and 1174a) 

* * * * * 

[FR Doc. E9–13212 Filed 6–4–09; 8:45 am] 

BILLING CODE 8320–01–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Parts 3 and 4 

RIN 2900–AN22 

Pension Management Center Manager 

AGENCY: Department of Veterans Affairs. 

ACTION: Final rule. 

SUMMARY: This document amends the 

Department of Veterans Affairs (VA) 

regulations to add the Pension 

Management Center Manager as a 

person who, in addition to the Veterans 

Service Center Manager, is authorized to 

review decisions on benefit claims and 

authorized to approve permanent and 

total disability evaluations on an 

extraschedular basis for pension 

purposes. These changes are made to 

reflect the duties of the Pension 

Management Center Manager. 

DATES: Effective Date: June 5, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Thomas J. Kniffen, Chief, Regulations 

Staff (211D), Compensation and Pension 

Service, Veterans Benefits 

Administration, Department of Veterans 

Affairs, 810 Vermont Avenue, NW., 

Washington, DC 20420, (202) 461–9725. 

SUPPLEMENTARY INFORMATION: In fiscal 

year 2002, all VA pension management 

activities were consolidated from the 

VA’s Regional Offices to three Pension 

Management Centers (PMCs), which are 

located in Philadelphia, Pennsylvania, 

Milwaukee, Wisconsin, and St. Paul, 

Minnesota. Recently, VA has decided to 

consolidate nearly all of its pension 

activities (including original pension 

claims processing), which were 

previously done at regional office 

Veterans Service Centers (VSCs), to the 

PMCs. 

Therefore, most activities involving 

pension that would previously have 

been within the duties of the Veterans 

Service Center Manager (VSCM) at the 

VSC will be transferred to the Pension 

Management Center Manager (PMCM) at 

the PMC. This rulemaking amends 38 

CFR 3.2600, as well as 38 CFR 3.321 and 

4.17, to reflect the position of the PMCM 

as the person authorized to perform 

these activities. Specifically, these 

activities are reviewing benefit 

decisions under § 3.2600 and 

determining entitlement to permanent 

and total disability ratings, on an 

extraschedular basis, for pension 

purposes under § 3.321(b)(2) and 

§ 4.17(b). Adding the PMCM as a person 

authorized to perform these activities 

allows claims involving both 

compensation and pension to be 

processed at either the PMC or the VSC, 

as appropriate. 

We are not intending any substantive 

change to the regulations, merely 

including the new position of the 

PMCM in VA’s regulations. 

Administrative Procedure Act 

This document is being published as 

a final rule pursuant to 5 U.S.C. 553, 

which excepts matters pertaining to 

internal agency management and 

personnel from its notice, comment, and 

delayed effective date requirements. 

Paperwork Reduction Act 

This document contains no provisions 

constituting a collection of information 

under the Paperwork Reduction Act (44 

U.S.C. 3501–3521). 

Regulatory Flexibility Act 

The Secretary hereby certifies that 

this final rule will not have a significant 

economic impact on a substantial 

number of small entities as they are 

defined in the Regulatory Flexibility 

Act, 5 U.S.C. 601–612. This final rule 

would not affect any small entities. 

Only VA’s internal procedures for 

processing claims of individuals will be 

directly affected. Therefore, pursuant to 

5 U.S.C. 605(b), this final rule is exempt 

from the initial and final regulatory 

flexibility analysis requirements of 

sections 603 and 604. 

Executive Order 12866–Regulatory 

Planning and Review 

Executive Order 12866 directs 

agencies to assess all costs and benefits 

of available regulatory alternatives and, 

when regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety, and other advantages; 

distributive impacts; and equity). The 

Executive Order classifies a ‘‘significant 

regulatory action,’’ requiring review by 

the Office of Management and Budget 

(OMB) unless OMB waives such review, 

as any regulatory action that is likely to 

result in a rule that may: (1) Have an 

annual effect on the economy of $100 

million or more or adversely affect in a 

material way the economy, a sector of 

the economy, productivity, competition, 

jobs, the environment, public health or 

safety, or State, local, or tribal 

governments or communities; (2) Create 

a serious inconsistency or otherwise 

interfere with an action taken or 

planned by another agency; (3) 

Materially alter the budgetary impact of 

entitlements, grants, user fees, or loan 

programs or the rights and obligations of 

recipients thereof; or (4) Raise novel 

legal or policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in the Executive 

Order. 

The economic, interagency, 

budgetary, legal, and policy 

implications of this final rule have been 

examined and it has been determined 

not to be a significant regulatory action 

under Executive Order 12866. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

of 1995 requires, at 2 U.S.C. 1532, that 

agencies prepare an assessment of 

anticipated costs and benefits before 

issuing any rule that may result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

(adjusted annually for inflation) in any 

year. This final rule would have no such 

effect on State, local, and tribal 

governments, or on the private sector. 

Catalog of Federal Domestic Assistance 

Numbers and Titles 

The Catalog of Federal Domestic 

Assistance program numbers and titles 

for this rule are 64.104, Pension for 


erowe on PROD1PC63 with RULES
Federal Register / Vol. 74, No. 107 / Friday, June 5, 2009 / Rules and Regulations 26959 

Non-Service-Connected Disability for 

Veterans; and 64.105, Pension to 

Veterans Surviving Spouses, and 

Children. 

List of Subjects 

38 CFR Part 3 

Administrative practice and 

procedure, Claims, Disability benefits, 

Health care, Pensions, Radioactive 

materials, Veterans, Vietnam. 

38 CFR Part 4 

Disability benefits, Pensions, 

Veterans. 

Approved: April 28, 2009. 

John R. Gingrich, 

Chief of Staff, Department of Veterans Affairs. 

■ For the reasons set forth in the 

preamble, 38 CFR parts 3 and 4 are 

amended as follows: 

PART 3—ADJUDICATION 

Subpart A—Pension, Compensation, 

and Dependency and Indemnity 

Compensation 

■ 1. The authority citation for part 3, 

subpart A continues to read as follows: 

Authority: 38 U.S.C. 501(a), unless 

otherwise noted. 

§ 3.321 [Amended] 

■ 2. Section 3.321(b)(2) is amended by 

removing ‘‘Manager;’’ and adding, in its 

place, ‘‘Manager or the Pension 

Management Center Manager;’’. 

Subpart D—Universal Adjudication 

Rules That Apply to Benefit Claims 

Governed by Part 3 of This Title 

■ 3. The authority citation for part 3, 

subpart D continues to read as follows: 

Authority: 38 U.S.C. 501(a), unless 

otherwise noted. 

■ 4. Section 3.2600(a) is amended by 

revising the second sentence to read as 

follows: 

§ 3.2600 Revision of benefit claims 

decisions. 

(a) * * * The review will be 

conducted by a Veterans Service Center 

Manager, Pension Management Center 

Manager, or Decision Review Officer, at 

VA’s discretion. * * * 

* * * * * 

PART 4—SCHEDULE FOR RATING 

DISABILITIES 

■ 5. The authority citation for part 4 

continues to read as follows: 

Authority: 38 U.S.C. 1155, unless 

otherwise noted. 

Subpart A—General Policy in Rating 

§ 4.17 [Amended] 

■ 6. Section 4.17(b) is amended by 

removing ‘‘Manager’’ and adding, in its 

place, ‘‘Manager or the Pension 

Management Center Manager’’. 

[FR Doc. E9–13211 Filed 6–4–09; 8:45 am] 

BILLING CODE 8320–01–P 

POSTAL SERVICE 

39 CFR Part 20 

Customs Label Requirements When 

Mailing Items Internationally 

AGENCY: Postal ServiceTM. 

ACTION: Final rule. 

SUMMARY: The Postal Service has revised 

its customs label requirements when 

mailing items internationally. This 

revision will comply with the Universal 

Postal Union (UPU) Letter Post 

Regulations. 

DATES: Effective Date: July 1, 2009. 

FOR FURTHER INFORMATION CONTACT: Rick 

Klutts, 813–877–0372. 

SUPPLEMENTARY INFORMATION: The Postal 

Service is revising Mailing Standards of 

the United States Postal Service, 

International Mail Manual (IMM®) part 

123 and sections 217.3, 232.4, 244.5, 

and 276 to comply with Article RL 

152.5 of the Universal Postal Union 

(UPU) Letter Post Regulations. Under 

that provision, all small packet items 

must bear customs declarations CN 22 

(PS Form 2976) or CN 23 (PS Form 

2976–A), depending on value and 

regardless of whether the items are 

ordinarily subject to customs control in 

the destination country. Small packets 

are Letter Post items that are not letters, 

cards, or flats, and that typically contain 

merchandise or other goods. 

In terms of Postal Service products, 

the small packet category includes 

package-size First-Class Mail 

InternationalTM items and the Priority 

Mail® Small Flat-Rate Box, as well as 

certain Priority Mail Flat-Rate 

Envelopes meeting specific physical 

characteristics. We clarify that all such 

items, regardless of contents or value, 

must bear a PS Form 2976, Customs 

Declaration CN 22—Sender’s 

Declaration. Current Postal Service 

standards only require a customs 

declaration for package-size First-Class 

Mail International items that contain 

potentially dutiable contents. 

This change also applies to ‘‘known 

mailers’’, as defined in IMM 123.62, 

who send documents weighing 16 

ounces or more. With these revisions, 

only mailpieces that meet the physical 

characteristic of a letter or flat may 

qualify—small packet items must bear a 

PS Form 2976. 

For customer convenience, this 

change allows the Priority Mail FlatRate Envelopes containing only nondutiable document contents weighing 

less than 16 ounces, and that are flatsize (no more than 3⁄4 inch thick and 

uniformly thick), to be mailed without 

a PS Form 2976. However, a customs 

declaration will still be required for 

First-Class Mail International items and 

Priority Mail Flat-Rate Envelopes with 

non-dutiable contents if those items 

weigh 16 ounces or more. 

As a further result of UPU Letter Post 

Regulation Article RL152, which 

stipulates that customs declarations 

must be affixed to the outside of the 

mailpiece, and consistent with USPS®

aviation security guidelines, we will no 

longer allow the option to place a PS 

Form 2976 on the outside of a package 

and insert the required PS Form 2976– 

A within the package. 

We are also clarifying that packaging 

must be large enough to accommodate 

the applicable customs form(s), postage, 

and any applicable markings and extra 

service labels on the address side of the 

item to be mailed, and that items 

requiring an export license must always 

use a PS Form 2976–A. As a result of 

these requirements, and consistent with 

UPU Articles RC 120 and 121, we are 

clarifying in Exhibit 123.61 that PS 

Form 2976–A (which is a parcel 

customs declaration) may not be used 

on Letter Post items. Letter Post items 

include First-Class Mail International 

items, the Priority Mail International 

flat-rate envelope and small flat-rate 

box, International Priority Airmail (IPA) 

items, and International Surface Air Lift 

(ISAL) items. Consequently, certain 

items that were previously mailable in 

one of the aforementioned Letter Post 

categories will now be required to be 

mailed via a different category of mail. 

Specifically, these include First-Class 

Mail International items over $400 in 

value, or any item requiring an export 

license. 

The Postal Service adopts the 

following changes to Mailing Standards 

of the United States Postal Service, 

International Mail Manual (IMM), 

which is incorporated by reference in 

the Code of Federal Regulations. See 39 

CFR Part 20. 

List of Subjects in 39 CFR Part 20 

Foreign relations, International postal 

services. 

■ Accordingly, 39 CFR Part 20 is 

amended as follows: 


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