[Federal Register Volume 70, Number 26 (Wednesday, February 9, 2005)]
[Rules and Regulations]
[Pages 6764-6765]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-2467]


=======================================================================
-----------------------------------------------------------------------

POSTAL SERVICE

39 CFR Part 551


Semipostal Stamp Program

AGENCY: Postal Service.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule clarifies regulations relating to the 
determination of costs to be offset from differential revenue.

DATES: The final rule is effective February 9, 2005.

FOR FURTHER INFORMATION CONTACT: Cindy Tackett, (703) 292-3980.

SUPPLEMENTARY INFORMATION: Semipostal stamps are intended to raise 
funds for specified causes. The difference between the sales price of a 
semipostal stamp and its postage value (the differential) constitutes a 
contribution to a specified cause. The Postal Service is permitted to 
retain an amount from the differential to cover its reasonable 
administrative costs.

[[Page 6765]]

    Section 551.8 sets forth the Postal Service's policy to recover 
from the differential those costs determined to be attributable to the 
semipostal and that would not normally be incurred for commemorative 
stamps having similar sales objectives; physical characteristics; and 
marketing, promotional, and public relations activities. Under current 
regulations published in 39 CFR 551.8:

    (e) Cost items recoverable from the differential revenue may 
include, but are not limited to, the following:
    (1) Packaging costs in excess of the cost to package comparable 
stamps;
    (2) Printing costs of flyers and special receipts;
    (3) Costs of changes to equipment;
    (4) Costs of developing and executing marketing and promotional 
plans in excess of the cost for comparable stamps;
    (5) Other costs specific to the semipostal stamp that would not 
normally have been incurred for comparable stamps; and
    (6) Costs in paragraph (g) of this section that materially 
exceed those that would normally have been incurred for comparable 
stamps.

    The final rule deletes the word ``may'' from the introductory 
paragraph to subsection (e) of 39 CFR 551.8. The deletion of the word 
``may'' clarifies that costs that are recovered from the differential 
include, but are not limited to, packaging costs in excess of those for 
comparable stamps, printing costs for flyers or special receipts, costs 
of changes to equipment, costs of developing and executing marketing 
and promotional plans in excess of those for comparable stamps, and 
other costs that would not normally have been incurred for comparable 
stamps.

List of Subjects in 39 CFR Part 551

    Administrative practice and procedure, Postal Service.

The Amendment

0
For the reasons set out in this document, the Postal Service hereby 
amends 39 CFR part 551 as follows:

PART 551--SEMIPOSTAL STAMP PROGRAM

0
1. The authority citation for 39 CFR part 551 continues to read as 
follows:

    Authority: 39 U.S.C. 101, 201, 203, 401, 403, 404, 410, 414, 
416.

0
2. Revise paragraph (e) introductory text in Sec.  551.8 to read as 
follows:


Sec.  551.8  Cost offset policy.

* * * * *
    (e) Cost items recoverable from the differential revenue include, 
but are not limited to, the following:
* * * * *

Neva Watson,
Attorney, Legislative.
[FR Doc. 05-2467 Filed 2-8-05; 8:45 am]
BILLING CODE 7710-12-P