[Federal Register Volume 72, Number 210 (Wednesday, October 31, 2007)]
[Rules and Regulations]
[Pages 61524-61525]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-21487]



[[Page 61524]]

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POSTAL SERVICE

39 CFR Part 111


Domestic Mail Service Offered to the Republic of the Marshall 
Islands and Federated States of Micronesia

AGENCY: Postal Service\TM\.

ACTION: Final rule with request for comments.

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SUMMARY: This final rule revises the Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM[supreg]), by returning 
the Republic of the Marshall Islands (RMI) and the Federated States of 
Micronesia (FSM) to ``mail treated as domestic'' status. Collect on 
Delivery (COD), Delivery Confirmation, Signature Confirmation, and 
electronic return receipt options will not be offered to FSM and RMI. 
Also, Express Mail service will be offered but without a guarantee. 
This decision was a result of high-level discussions with the RMI and 
the FSM and consultation with the U.S. Department of State. An 
additional final rule is being published to remove all references to 
these countries from the Mailing Standards of the United States Postal 
Service, International Mail Manual (IMM).

DATES: Effective date: November 19, 2007. Comment date: Submit comments 
on or before November 14, 2007.

ADDRESSES: Mail or deliver written comments to the Manager, Mailing 
Standards, United States Postal Service, 475 L'Enfant Plaza, SW., Room 
3436, Washington, DC 20260-3436. Copies of all written comments will be 
available for inspection and photocopying between 9 a.m. and 4 p.m., 
Monday through Friday, at the Postal Service Headquarters Library, 475 
L'Enfant Plaza SW., 11th Floor North, Washington, DC 20260-0004.

FOR FURTHER INFORMATION CONTACT: Randall F. Sobol at 808-423-3883.

SUPPLEMENTARY INFORMATION: The Republic of the Marshall Islands (RMI) 
and the Federated States of Micronesia (FSM) were, from 1947 to 1986, 
under United States government administration pursuant to the 
trusteeship provisions of the United Nations Charter. From 1986 to 
2003, the United States was party to a treaty of international 
political association with each of these two emerging nations, designed 
to bring about their self-government. The Compact of Free Association 
(CFA), as the treaty was called, included provisions for economic 
assistance and defense. Its terms included postal and related services 
and provided for reimbursement to the Postal Service for the costs 
associated with these services.
    In 2000, the General Accounting Office produced a report evaluating 
the progress made under the CFA. The report, GAO/NSIAD-00-216, Foreign 
Assistance: U.S. Funds to Two Micronesian Nations Had Little Impact on 
Economic Development (Report to Congressional Requesters Sept. 2000), 
concluded that the CFA had not accomplished its goals with regard to 
economic development. Subsequently, the Compact of Free Association 
Amendments Act of 2003 ratified an amended and renewed CFA (2003 CFA). 
The 2003 CFAs again addressed the postal services to be provided to the 
RMI and the FSM, leaving some services open to further negotiations 
between the Postal Service and the governments of the RMI and the FSM. 
The 2003 CFAs called for a phased transition for the RMI and the FSM to 
move to international status as an office of exchange for mail. The 
2003 CFAs will expire in 2024.
    On September 15, 2005, the Postal Service published a notice in the 
Federal Register (70 FR 54510) proposing use of the phased 
international rate schedules for the Republic of the Marshall Islands 
and the Federated States of Micronesia. The application of 
international rate schedules to these Freely Associated States was 
permissible, in conformity with, and in furtherance of the terms of the 
2003 CFAs between the United States Government and the governments of 
the RMI and the FSM.
    After considering comments on its proposal to use international 
postal rates, fees, and mail classifications, on November 23, 2005, the 
Postal Service published a final rule in the Federal Register (70 FR 
70976) implementing the use of international published prices and 
mailing standards.
    That notice amended the Mailing Standards of the United States 
Postal Service, International Mail Manual (IMM) to include the RMI and 
the FSM in most international products and services, and it added them 
to the individual country listings. At the same time, a phased schedule 
of international rates was introduced in conformity with the 2003 CFAs, 
which permits such a change to begin not sooner than 2006 and allows 
the rates to increase to full international rates over a period of not 
less than five years. A subsequent article removed all references to 
these countries from the Mailing Standards of the United States Postal 
Service, Domestic Mail Manual (DMM).
    The application of international rates to these Freely Associated 
States had observable effects on the economy and business 
correspondence of the RMI and the FSM. The Postal Service has 
considered a number of business solutions to lessen that impact, but 
none are believed to provide optimal service to the FSM and RMI. 
Consequently, the Postal Service is reverting mail service to the FSM 
and RMI to domestic status treatment. This is consistent with the CFAs, 
since the CFAs do not preclude the continuation of domestic mail 
service treatment to the FSM and RMI. The Postal Service accordingly is 
returning the parties and their people to substantially similar 
position they held prior to the application of the international mail 
schedule, thereby enabling the governments of the RMI and FSM to 
continue to pursue appropriate long term solutions without adversely 
impacting the economies of the parties and the lives of their people.
    This final rule amends the final rule published on November 23, 
2005. Effective November 19, 2007, the RMI and the FSM will revert to 
the domestic mail treatment as provided in DMM section 608.2.2. As 
explained below, the Postal Service will restore the domestic mail 
treatment offered to its status quo prior to the transition to phased 
international service, with certain exceptions.
    As background, prior to the November 2005 change, electronic return 
receipts, Delivery Confirmation and Signature Confirmation were not 
offered in the Freely Associated States, including the RMI and FSM, for 
both inbound and outbound mail. The January 6, 2005, issue of the 
Domestic Mail Manual updated on March 17, 2005, set out these 
limitations on services in sections 608.2.2 (Mail Treated as Domestic), 
503.6.2.1 (Return Receipt, Description), 503.9.2.4 (Delivery 
Confirmation, Ineligible Matter), and 503.10.2.3 (Signature 
Confirmation, Ineligible Matter). Thus, these services will continue 
not to be available to customers in the RMI and the FSM.
    The 2003 CFAs (Compacts) signed by the United States government and 
the governments of the RMI and FSM provide for postal services in 
Article VI. There, certain additional limits on products and services 
are provided. The Compacts allow the following services to be provided 
as negotiated between the Postal Service and the governments of the 
Freely Associated States: ``Express Mail without a guarantee (EMS); 
Registered Mail; insured parcel service; recorded delivery and money 
orders.'' The Compacts further state that ``COD (cash (sic) on 
delivery) orders will no longer be available.'' In accordance with the 
terms of these

[[Page 61525]]

international agreements, COD service will not be provided.
    Further, Express Mail service will be provided for inbound and 
outbound items, but without a guarantee. This is, however, 
substantially the same expedited service now offered to the FSM and the 
RMI. That is, as international destinations, the customers of the RMI 
and FSM currently receive Express Mail International service, which 
generally does not provide a guarantee, but which does receive 
expedited handling over other classes of mail. This handling of the 
Express Mail without a guarantee will continue to provide a benefit to 
the customers who choose it.
    The Postal Service adopts the following changes to Mailing 
Standards of the United States Postal Service, Domestic Mail Manual 
(DMM[supreg]), which is incorporated by reference in the Code of 
Federal Regulations. See 39 CFR part 111.

List of Subjects in 39 CFR Part 111

    Postal Service.

PART 111--[AMENDED]

0
1. The authority citation for 39 CFR part 111 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 414, 
416, 3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.


0
2. Revise the following sections of Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM), as follows:
* * * * *

500 Additional Mailing Services

503 Extra Services

* * * * *

6.0 Return Receipt

* * * * *

6.2 Basic Information

6.2.1 Description

    [Revise the third sentence in 6.2.1 as follows:]
    * * * The electronic option is not available for items mailed to 
APO and FPO addresses or U.S. territories, possessions, and Freely 
Associated States listed in 608.2.0. * * *
* * * * *

11.0 Collect on Delivery (COD)

* * * * *

11.2 Basic Information

* * * * *

11.2.6 Ineligible Matter

    COD service may not be used for:
* * * * *
    [Revise 11.2.6 by adding new item f as follows:]
    f. Articles sent to or from the Republic of the Marshall Islands 
and the Federated States of Micronesia.
* * * * *

600 Basic Standards for All Mailing Services

601 Mailability

* * * * *

9.0 Perishables

* * * * *

9.3 Live Animals

* * * * *
    [Revise the heading and text in 9.3.6 as follows:]

9.3.6 Mailed to Pacific Islands

    Animals mailed to the Republic of Palau, the Republic of the 
Marshall Islands, and the Federated States of Micronesia require a 
permit issued by the government of the destination country.
* * * * *

9.3.8 Other Insects

    [Revise the text in the second sentence of 9.3.8 as follows:]
    * * * Such insects mailed to the Republic of Palau, the Republic of 
the Marshall Islands, and the Federated States of Micronesia are also 
subject to the regulations of the destination country.
* * * * *

608 Postal Information and Resources

* * * * *

2.0 Domestic Mail

* * * * *

2.2 Mail Treated as Domestic

* * * * *
    [Revise the list of Freely Associated States in 2.2 by adding the 
Republic of the Marshall Islands, and the Federated States of 
Micronesia as follows:]

Marshall Islands, Republic of the
    Ebeye Island
    Kwajalein Island
    Majuro Island
Micronesia, Federated States of
    Chuuk (Truk) Island
    Kosrae Island
    Pohnpei Island
    Yap Island
Palau, Republic of
    Koror Island
* * * * *

2.4 Customs Forms Required

    [Revise the first sentence in 2.4 to add the ZIP Codes of the 
Republic of the Marshall Islands and the Federated States of Micronesia 
as follows:]
    Regardless of contents, all Priority Mail weighing 16 ounces or 
more sent from the United States to ZIP Codes 96910-44, 96950-52, 
96960, 96970, and 96799, and all Priority Mail sent from these ZIP 
Codes to the United States, must bear customs Form 2976-A. * * *
* * * * *
    An appropriate amendment to 39 CFR part 111 to reflect these 
changes will be published.

Neva Watson,
Attorney, Legislative.
[FR Doc. E7-21487 Filed 10-30-07; 8:45 am]
BILLING CODE 7710-12-P