[Federal Register Volume 67, Number 149 (Friday, August 2, 2002)]
[Rules and Regulations]
[Pages 50353-50354]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-19546]


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POSTAL SERVICE

39 CFR Part 927


Regulations Dealing With Penalties or Fines, Deductions, and 
Damages Related to Transportation of Mail

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This rule revises postal regulations dealing with civil 
penalties, fines, deductions and damages assessed in the administration 
of the mail transportation statutes. The rule provides detailed 
procedures for the imposition of penalties and other assessments and 
conforms the regulations to the current organization of the Postal 
Service.

EFFECTIVE DATE: August 2, 2002.

FOR FURTHER INFORMATION CONTACT: Frank Panico, Manager, International 
Transportation and Network Support, International Network Operations at 
(202) 268-8058.

SUPPLEMENTARY INFORMATION: This change is being made to reflect:
    1. United States Postal Service's organizational realignment.
    2. Technological enhancements which have affected the methodology 
of recording and adjudicating air carrier irregularities.
    This has contributed to the elimination of the mid level review and 
adjudication process. These changes are detailed in section 927.3. This 
new process is expected to improve service performance and expedite the 
irregularity process for international and military mail.

List of Subjects in 39 CFR Part 927

    Administrative practice and procedure, Air carriers, Government 
contracts, Maritime carriers, Penalties.


    For the reasons set forth in the preamble, 39 CFR part 927 is 
revised to read as follows:

PART 927--RULES OF PROCEDURE RELATING TO FINES, DEDUCTIONS, AND 
DAMAGES

Sec
927.1   Noncontractual carriage of international mail by vessel.
927.2   Noncontractual air service for international and military 
mail.
927.3   Other remedies.

    Authority: 39 U.S.C. 401, 2601 Chap. 56 Section 5604; 49 U.S.C. 
1357, 1471.


Sec. 927.1  Noncontractual carriage of international mail by vessel.

    (a) Report of infraction. Where evidence is found or reported that 
a carrier of mail by vessel which has transported mail pursuant to the 
provisions of Chapter 4, USPS Purchasing Manual, has unreasonably or 
unnecessarily delayed the mails, or committed other delinquencies in 
the transportation of mail, has failed to carry the mail in a safe and 
secure manner, or has caused loss or damage to the mail, the facts will 
be reported to International Network Operations, Headquarters.
    (b) Review, investigation, recommendation. International Network 
Operations will investigate the matter, record findings of fact, make a 
recommendation concerning the need for imposition of fine or penalty 
with reasons for the recommendation, and will advise the carrier of the 
recommendation.
    (c) Penalty action. International Network Operations, upon review 
of the record, may impose a fine or penalty against a carrier for any 
irregularity properly documented, whether or not penalty action has 
been recommended. A tentative decision of International Network 
Operations to take penalty action will be set forth in detail the facts 
and reasons upon which the determination is based. International 
Network Operations will send the tentative decision, including notice 
of the irregularities found and the amount of fine or penalty proposed, 
to the carrier. The carrier may present a written defense to the 
proposed action within 21 days after receipt of the tentative decision. 
International Network Operations will advise the carrier of the final 
decision.
    (d) Appeal. If the final decision includes a penalty International 
Network Operations will advise the carrier that it may, within 30 days, 
appeal the action in writing to the Vice President, Network Operations 
Management, U.S. Postal Service Headquarters and that its written 
appeal should include all facts and arguments upon which the carrier 
relies in support of the appeal. If an appeal is not received, 
International Network Operations will close the record. When an appeal 
is taken, the Vice President, Network Operations Management will review 
the complete record the decide the appeal. He will advise the carrier 
of the decision in writing and will take actions consistent with that 
decision. The Vice President, Network Operations Management, may 
sustain, rescind, or compromise a fine or penalty. The decision of the 
Vice President, Network Operations Management on appeal shall be the 
final decision of the Postal Service. The Postal Service may, in its 
discretion, deduct from payment otherwise due the carrier an amount 
necessary to satisfy the penalty action taken under this section.
    (e) Details of administration. For further administrative details, 
see USPS Purchasing Manual, chapter 4.


Sec. 927.2  Noncontractual air service for international and military 
mail.

    (a) Report of infraction. Each mail handling irregularity will be 
reported in the prescribed format by the cognizant postal official or 
designated representative. As soon as possible the reporting authority 
will ask the local representative of the air carrier to provide an 
explanation of the irregularity. A summary of the explanation, if any, 
will be entered in

[[Page 50354]]

the record. A copy of the report will be provided to the local station 
manager of the air carrier concerned at the close of each tour or not 
less frequently than each 24 hours.
    (b) Carrier conferences. At least one a month, postal officials 
will schedule meetings with the local representatives of the affected 
air carriers to discuss the reported irregularities. The carrier's 
representative will be advised of any irregularity for which the 
reporting authority will recommend penalty action. The carrier's 
representative will be offered the opportunity to comment on any 
irregularity, and any comments will be attached and/or be made part of 
the record. The reports on which penalty action is recommended will 
then be processed by International Network Operations, Postal 
Headquarters.
    (c) Review, investigation, penalty action. International Network 
Operations will review the matter and advise the carrier of the 
recommendations. The carrier has 21 days from receipt of notice to 
dispute the recommended penalties. In those instances which the carrier 
has disputed the facts alleged by the reporting authority, 
International Network Operations will investigate the matter to resolve 
the differences. International Network Operations, upon review of the 
record, may impose a fine or penalty against an air carrier for any 
irregularity properly documented, whether or not penalty action has 
been recommended. International Network Operations will send the 
decision, including notice of the irregularities alleged and the amount 
of fine or penalty proposed to the carrier. The Postal Service may, in 
its discretion, deduct from payment otherwise due the air carrier an 
amount necessary to satisfy the penalty action taken under this 
section.
    (d) Appeal. If the final decision includes a penalty, International 
Network Operations will advise the carrier that it may, within 30 days, 
appeal the action in writing to the Vice President, Network Operations 
Management, Postal Headquarters, and that its written appeal should 
include all facts and arguments upon which the carrier relies in 
support of the appeal. If an appeal is not received, International 
Network Operations will close the file. When an appeal is taken, the 
Vice President, Network Operations Management, will review the complete 
record and decide the appeals. He will advise the carrier of the 
decision in writing and will take action consistent with that decision. 
The Vice President, Network Operations Management, may sustain, 
rescind, or compromise a fine or penalty. The decision of the Vice 
President, Network Operations Management, on appeal shall be the final 
decision of the Postal Service. The Postal Service, may, in its 
discretion, deduct from pay otherwise due the air carrier an amount 
necessary to satisfy the penalty action taken under this section.
    (e) Details of administration. For further administrative details, 
forms, and other implementing materials adapted to the respective modes 
of transportation, see International Mail Operations, Handbook T-5, 
chapter 5.


Sec. 927.3  Other remedies.

    The procedures and other requirements of this part apply only where 
the Postal Service proposes to assess penalties, fines, deductions, or 
damages. This part does not limit other remedies available to the 
Postal Service, including such remedies as summary action to withhold 
tender of mail to protect the public interest in the event of major 
irregularities such as theft, deliberate loss, damage, abandonment of 
the mail or service failures by the air carrier.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 02-19546 Filed 8-1-02; 8:45 am]
BILLING CODE 7710-12-P