39 U.S.C. § 407 — International postal arrangements

Page 19 TITLE 39—POSTAL SERVICE § 407 (b) The Secretaries of Defense and Transpor- tation shall make arrangements with the Postal Service to perform postal services through per- sonnel designated by them at or through branch post offices established under subsection (a) of this section. (c)(1) The Secretary of Defense shall authorize the use of a post office established under sub- section (a) in a location outside the United States by citizens of the United States— (A) who— (i) are employed by the North Atlantic Treaty Organization; and (ii) perform functions in support of the Armed Forces of the United States; and (B) if the Secretary makes a written deter- mination that such use is— (i) in the best interests of the Department of Defense; and (ii) otherwise authorized by applicable host nation law or agreement. (2) No funds may be obligated or expended to establish, maintain, or expand a post office es- tablished under subsection (a) for the purpose of use described in paragraph (1) of this subsection. (Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 724; Pub. L. 116–92, div. A, title X, § 1056, Dec. 20, 2019, 133 Stat. 1593; Pub. L. 118–31, div. A, title XVIII, § 1806(a), Dec. 22, 2023, 137 Stat. 688.) Editorial Notes AMENDMENTS 2023—Subsec. (c)(1). Pub. L. 118–31 substituted ‘‘shall authorize the use’’ for ‘‘may authorize the use’’ in in- troductory provisions. 2019—Subsec. (c). Pub. L. 116–92 added subsec. (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective July 1, 1971, pursuant to Resolution No. 71–9 of the Board of Governors. See section 15(a) of Pub. L. 91–375, set out as a note preceding section 101 of this title. § 407. International postal arrangements (a) It is the policy of the United States— (1) to promote and encourage communica- tions between peoples by efficient operation of international postal services and other inter- national delivery services for cultural, social, and economic purposes; (2) to promote and encourage unrestricted and undistorted competition in the provision of international postal services and other international delivery services, except where provision of such services by private compa- nies may be prohibited by law of the United States; (3) to promote and encourage a clear distinc- tion between governmental and operational responsibilities with respect to the provision of international postal services and other international delivery services by the Govern- ment of the United States and by intergovern- mental organizations of which the United States is a member; and (4) to participate in multilateral and bilat- eral agreements with other countries to ac- complish these objectives. (b)(1) The Secretary of State shall be respon- sible for formulation, coordination, and over- sight of foreign policy related to international postal services and other international delivery services and shall have the power to conclude postal treaties, conventions, and amendments related to international postal services and other international delivery services, except that the Secretary may not conclude any treaty, convention, or other international agreement (including those regulating international postal services) if such treaty, convention, or agree- ment would, with respect to any competitive product, grant an undue or unreasonable pref- erence to the Postal Service, a private provider of international postal or delivery services, or any other person. (2) In carrying out the responsibilities speci- fied in paragraph (1), the Secretary of State shall exercise primary authority for the conduct of foreign policy with respect to international postal services and international delivery serv- ices, including the determination of United States positions and the conduct of United States participation in negotiations with for- eign governments and international bodies. In exercising this authority, the Secretary— (A) shall coordinate with other agencies as appropriate, and in particular, shall give full consideration to the authority vested by law or Executive order in the Postal Regulatory Commission, the Department of Commerce, the Department of Transportation, and the Of- fice of the United States Trade Representative in this area; (B) shall maintain continuing liaison with other executive branch agencies concerned with postal and delivery services; (C) shall maintain continuing liaison with the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Government Reform of the House of Representatives; (D) shall maintain appropriate liaison with both representatives of the Postal Service and representatives of users and private providers of international postal services and other international delivery services to keep in- formed of their interests and problems, and to provide such assistance as may be needed to ensure that matters of concern are promptly considered by the Department of State or (if applicable, and to the extent practicable) other executive branch agencies; and (E) shall assist in arranging meetings of such public sector advisory groups as may be established to advise the Department of State and other executive branch agencies in con- nection with international postal services and international delivery services. (3) The Secretary of State shall establish an advisory committee (within the meaning of chapter 10 of title 5) to perform such functions as the Secretary considers appropriate in con- nection with carrying out subparagraphs (A) through (D) of paragraph (2). (c)(1) Before concluding any treaty, conven- tion, or amendment that establishes a rate or classification for a product subject to sub- chapter I of chapter 36, the Secretary of State shall request the Postal Regulatory Commission Page 20 TITLE 39—POSTAL SERVICE § 407 to submit its views on whether such rate or clas- sification is consistent with the standards and criteria established by the Commission under section 3622. (2) The Secretary shall ensure that each trea- ty, convention, or amendment concluded under subsection (b) is consistent with the views sub- mitted by the Commission pursuant to para- graph (1), except if, or to the extent, the Sec- retary determines, in writing, that it is not in the foreign policy or national security interest of the United States to ensure consistency with the Commission’s views. Such written deter- mination shall be provided to the Commission together with a full explanation of the reasons thereof, provided that the Secretary may des- ignate which portions of the determination or explanation shall be kept confidential for rea- sons of foreign policy or national security. (d) Nothing in this section shall be considered to prevent the Postal Service from entering into such commercial or operational contracts re- lated to providing international postal services and other international delivery services as it deems appropriate, except that— (1) any such contract made with an agency of a foreign government (whether under au- thority of this subsection or otherwise) shall be solely contractual in nature and may not purport to be international law; and (2) a copy of each such contract between the Postal Service and an agency of a foreign gov- ernment shall be transmitted to the Secretary of State and the Postal Regulatory Commis- sion not later than the effective date of such contract. (e)(1) In this subsection, the term ‘‘private company’’ means a private company substan- tially owned or controlled by persons who are citizens of the United States. (2) With respect to shipments of international mail that are competitive products within the meaning of section 3631 that are exported or im- ported by the Postal Service, the Customs Serv- ice and other appropriate Federal agencies shall apply the customs laws of the United States and all other laws relating to the importation or ex- portation of such shipments in the same manner to both shipments by the Postal Service and similar shipments by private companies. (3) In exercising the authority under sub- section (b) to conclude new postal treaties and conventions related to international postal serv- ices and to renegotiate such treaties and con- ventions, the Secretary of State shall, to the maximum extent practicable, take such meas- ures as are within the Secretary’s control to en- courage the governments of other countries to make available to the Postal Service and pri- vate companies a range of nondiscriminatory customs procedures that will fully meet the needs of all types of American shippers. The Secretary of State shall consult with the United States Trade Representative and the Commis- sioner of U.S. Customs and Border Protection in carrying out this paragraph. (4) The provisions of this subsection shall take effect 6 months after the date of enactment of this subsection or such earlier date as the Bu- reau of Customs and Border Protection of the Department of Homeland Security may deter- mine in writing. (Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 724; Pub. L. 105–277, div. A, § 101(h) [title VI, § 633(a)], Oct. 21, 1998, 112 Stat. 2681–480, 2681–523; Pub. L. 109–435, title IV, § 405(a), Dec. 20, 2006, 120 Stat. 3229; Pub. L. 114–125, title VIII, § 802(d)(2), Feb. 24, 2016, 130 Stat. 210; Pub. L. 117–286, § 4(a)(226), Dec. 27, 2022, 136 Stat. 4330.) Editorial Notes REFERENCES IN TEXT The date of enactment of this subsection, referred to in subsec. (e)(4), is the date of enactment of Pub. L. 109–435, which was approved Dec. 20, 2006. AMENDMENTS 2022—Subsec. (b)(3). Pub. L. 117–286 substituted ‘‘chap- ter 10 of title 5)’’ for ‘‘the Federal Advisory Committee Act)’’. 2006—Pub. L. 109–435 amended section generally. Prior to amendment, section consisted of subsecs. (a) to (d) relating to responsibilities of the Secretary of State and the Postal Service for international postal arrange- ments. 1998—Pub. L. 105–277 substituted ‘‘International Post- al Arrangements’’ for ‘‘International postal arrange- ments’’ in section catchline and amended text gen- erally. Prior to amendment, text read as follows: ‘‘(a) The Postal Service, with the consent of the President, may negotiate and conclude postal treaties or conventions, and may establish the rates of postage or other charges on mail matter conveyed between the United States and other countries. The decisions of the Postal Service construing or interpreting the provi- sions of any treaty or convention which has been or may be negotiated and concluded shall, if approved by the President, be conclusive upon all officers of the Government of the United States. ‘‘(b) The Postal Service shall transmit a copy of each postal convention concluded with other governments to the Secretary of State, who shall furnish a copy of the same to the Public Printer for publication.’’ Statutory Notes and Related Subsidiaries CHANGE OF NAME ‘‘Commissioner of U.S. Customs and Border Protec- tion’’ substituted for ‘‘Commissioner of Customs’’ in subsec. (e)(3) on authority of section 802(d)(2) of Pub. L. 114–125, set out as a note under section 211 of Title 6, Domestic Security. Committee on Government Reform of House of Rep- resentatives changed to Committee on Oversight and Government Reform of House of Representatives by House Resolution No. 6, One Hundred Tenth Congress, Jan. 5, 2007. Committee on Oversight and Government Reform of House of Representatives changed to Com- mittee on Oversight and Reform of House of Represent- atives by House Resolution No. 6, One Hundred Six- teenth Congress, Jan. 9, 2019. Committee on Oversight and Reform of House of Representatives changed to Committee on Oversight and Accountability of House of Representatives by House Resolution No. 5, One Hun- dred Eighteenth Congress, Jan. 9, 2023. EFFECTIVE DATE OF 2006 AMENDMENT Pub. L. 109–435, title IV, § 405(b), Dec. 20, 2006, 120 Stat. 3232, provided that: ‘‘Notwithstanding any provision of the amendment made by subsection (a) [amending this section], the authority of the United States Postal Service to establish the rates of postage or other charges on mail matter conveyed between the United States and other countries shall remain available to the Postal Service until— ‘‘(1) with respect to market-dominant products, the date as of which the regulations promulgated under section 3622 of title 39, United States Code (as amend- ed by section 201(a)) take effect; and Page 21 TITLE 39—POSTAL SERVICE § 407 ‘‘(2) with respect to competitive products, the date as of which the regulations promulgated under sec- tion 3633 of title 39, United States Code (as amended by section 202) take effect.’’ EFFECTIVE DATE Section effective July 1, 1971, pursuant to Resolution No. 71–9 of the Board of Governors. See section 15(a) of Pub. L. 91–375, set out as a note preceding section 101 of this title. TRANSFER OF FUNDS TO STATE DEPARTMENT Pub. L. 105–277, § 101(h) [title VI, § 633(d)], Oct. 21, 1998, 112 Stat. 2681–480, 2681–524, provided that: ‘‘In fiscal year 1999 and each fiscal year hereafter, the Postal Service shall allocate to the Department of State from any funds available to the Postal Service such sums as may be reasonable, documented and auditable for the Department of State to carry out the activities of Sec- tion 407 of title 39 of the United States Code.’’ Executive Documents MODERNIZING THE MONETARY REIMBURSEMENT MODEL FOR THE DELIVERY OF GOODS THROUGH THE INTER- NATIONAL POSTAL SYSTEM AND ENHANCING THE SECU- RITY AND SAFETY OF INTERNATIONAL MAIL Memorandum of President of the United States, Aug. 23, 2018, 83 F.R. 47791, provided: Memorandum for the Secretary of State[,] the Sec- retary of the Treasury[,] the Secretary of Homeland Security[,] the Postmaster General[, and] the Chair- man of the Postal Regulatory Commission By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows: SECTION 1. Definitions. (a) ‘‘Good’’ means any tangible and movable object that can be conveyed by the inter- national postal system, excluding (i) written, drawn, printed, or digital information recorded on a tangible medium that is not an object of merchandise and (ii) money. (b) ‘‘Non-postal operator’’ means a private express carrier, freight forwarder, or other provider of services for the collection, transportation, and delivery of inter- national documents and packages, other than a postal operator. (c) ‘‘Postal operator’’ means a governmental or non- governmental entity officially designated by a Uni- versal Postal Union (UPU) member country to operate postal services and to fulfill the related obligations arising out of the Acts of the UPU on its territory. (d) ‘‘Terminal dues’’ means the rates or fees deter- mined through the UPU and paid by the postal operator in the country of origin to the postal operator in the country of destination to compensate for costs incurred in the country of destination for processing, transpor- tation, and delivery of international ‘‘letter post’’ items, which may include documents or goods and gen- erally weigh up to 4.4 pounds. SEC. 2. Policy. (a) The UPU was established in 1874 by 21 countries. The United States played an integral role in the UPU’s creation and, since that time, the United States has actively participated in all phases of the UPU’s work. The United States is a party to the cur- rent Constitution of the UPU—which was adopted in 1964—and intends to continue to participate fully in and financially contribute to the UPU, as provided in Article 21 of the UPU Constitution. As a member coun- try of the UPU, the United States recognizes the im- portance of this long-standing organization and is proud of the United States’ unbroken record of partici- pation in it. The Congress has provided that the Secretary of State (Secretary), in concluding postal treaties, con- ventions, or other international agreements, shall, to the maximum extent practicable, take measures to en- courage governments of other countries to make avail- able to the United States Postal Service (USPS) and private companies a range of nondiscriminatory cus- toms procedures that will fully meet the needs of all types of American shippers (39 U.S.C. 407(e)(3)). The Congress has likewise directed that responsible officials shall apply the customs laws of the United States and all other laws relating to importation or ex- portation of goods in the same manner to shipments of goods that are competitive products of the USPS and to similar shipments by private companies (39 U.S.C. 407(e)(2)). It is the policy of the United States to promote and encourage the development of an efficient and competi- tive global system that provides for fair and non- discriminatory postal rates. (b) It is in the interest of the United States to: (i) promote and encourage communications between peoples by efficient operation of international postal services and other international delivery services for cultural, social, and economic purposes (39 U.S.C. 407(a)(1)); (ii) promote and encourage unrestricted and undis- torted competition in the provision of international postal services and other international delivery serv- ices, except where provision of such services by private companies may be prohibited by the laws of the United States (39 U.S.C. 407(a)(2)); (iii) promote and encourage a clear distinction be- tween governmental and operational responsibilities with respect to the provision of international postal services and other international delivery services by the Government of the United States and by intergov- ernmental organizations of which the United States is a member (39 U.S.C. 407(a)(3)); and (iv) participate in multilateral and bilateral agree- ments with other countries to accomplish these objec- tives (39 U.S.C. 407(a)(4)). (c) Some current international postal practices in the UPU do not align with United States economic and na- tional security interests: (i) UPU terminal dues, in many cases, are less than comparable domestic postage rates. As a result: (A) the United States, along with other member countries of the UPU, is in many cases not fully re- imbursed by the foreign postal operator for the cost of delivering foreign-origin letter post items, which can result in substantial preferences for foreign mail- ers relative to domestic mailers; (B) the current terminal dues rates undermine the goal of unrestricted and undistorted competition in cross-border delivery services because they disadvan- tage non-postal operators seeking to offer competing collection and outward transportation services for goods covered by terminal dues in foreign markets; and (C) the current system of terminal dues distorts the flow of small packages around the world by incentivizing the shipping of goods from foreign countries that benefit from artificially low reim- bursement rates. (ii) The UPU has not done enough to reorient inter- national mail to achieve a clear distinction between documents and goods. Without such a distinction, it is difficult to achieve essential pricing reforms or to en- sure that customs requirements, including provision of electronic customs data for goods, are met. Under the current system, foreign postal operators do not uni- formly furnish advance electronic customs data that are needed to enhance targeting and risk management for national security and to facilitate importation and customs clearance. My Administration’s Initiative to Stop Opioids Abuse and Reduce Drug Supply and De- mand, launched in March of this year [2018], requires accurate advance electronic customs data for 90 per- cent of all international mail shipments that contain goods and consignment shipments within 3 years, so that the Department of Homeland Security can better detect and flag high-risk shipments. (d) It shall be the policy of the executive branch to support efforts that further the policies in this memo- randum, including supporting a system of unrestricted Page 22 TITLE 39—POSTAL SERVICE § 408 and undistorted competition between United States and foreign merchants. Such efforts include: (i) ensuring that rates charged for delivery of foreign- origin mail containing goods do not favor foreign mail- ers over domestic mailers; (ii) setting rates charged for delivery of foreign-ori- gin mail in a manner that does not favor postal opera- tors over non-postal operators; and (iii) ensuring the collection of advance electronic cus- toms data. SEC. 3. Relations with the UPU. (a) The United States must seek reforms to the UPU that promote the poli- cies outlined in this memorandum. Such reforms shall provide for: (i) a system of fair and nondiscriminatory rates for goods that promotes unrestricted and undistorted com- petition; and (ii) terminal dues rates that: (A) fully reimburse the USPS for costs to the same extent as domestic rates for comparable services; (B) avoid a preference for inbound foreign small packages containing goods that favors foreign mail- ers over domestic mailers; and (C) avoid a preference for inbound foreign small packages containing goods that favors postal opera- tors over private-sector entities providing transpor- tation services. (b) If negotiations at the UPU’s September 2018 Sec- ond Extraordinary Congress in Ethiopia fail to yield re- forms that satisfy the criteria set forth in subsection (a) of this section, the United States will consider tak- ing any appropriate actions to ensure that rates for the delivery of inbound foreign packages satisfy those cri- teria, consistent with applicable law. SEC. 4. Actions by the Secretary. (a) The Secretary shall notify the Director General of the UPU of the policies and intentions of the United States described in this memorandum. (b) The Secretary or his designee shall, consistent with 39 U.S.C. 407(b)(1), seek agreement on future Con- vention texts that comport with the policies of this memorandum in meetings of the UPU, including at the September 2018 Extraordinary Congress. (c) No later than November 1, 2018, the Secretary shall submit to the President a report summarizing the steps being taken to implement this memorandum. If the Secretary determines that sufficient progress on re- forms to promote compatibility of the Acts of the UPU with the policy of this memorandum is not being achieved, the Secretary shall include recommendations for future action, including the possibility of adopting self-declared rates. SEC. 5. General Provisions. (a) Nothing in this memo- randum shall be construed to impair or otherwise af- fect: (i) the authority granted by law to an executive de- partment or agency, or the head thereof; or (ii) the functions of the Director of the Office of Man- agement and Budget relating to budgetary, administra- tive, or legislative proposals. (b) This memorandum shall be implemented con- sistent with applicable law and subject to the avail- ability of appropriations. (c) This memorandum is not intended to, and does not, create any right or benefit, substantive or proce- dural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. (d) The Secretary is authorized and directed to pub- lish this memorandum in the Federal Register. DONALD J. TRUMP. § 408. International money-order exchanges The Postal Service may make arrangements with other governments, with which postal con- ventions are or may be concluded, for the ex- change of sums of money by means of postal or- ders. It shall fix limitations on the amount which may be so exchanged and the rates of ex- change. (Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 725.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective July 1, 1971, pursuant to Resolution No. 71–9 of the Board of Governors. See section 15(a) of Pub. L. 91–375, set out as a note preceding section 101 of this title. § 409. Suits by and against the Postal Service (a) Except as otherwise provided in this title, the United States district courts shall have original but not exclusive jurisdiction over all actions brought by or against the Postal Serv- ice. Any action brought in a State court to which the Postal Service is a party may be re- moved to the appropriate United States district court under the provisions of chapter 89 of title 28. (b) Unless otherwise provided in this title, the provisions of title 28 relating to service of proc- ess, venue, and limitations of time for bringing action in suits in which the United States, its officers, or employees are parties, and the rules of procedure adopted under title 28 for suits in which the United States, its officers, or employ- ees are parties, shall apply in like manner to suits in which the Postal Service, its officers, or employees are parties. (c) The provisions of chapter 171 and all other provisions of title 28 relating to tort claims shall apply to tort claims arising out of activi- ties of the Postal Service. (d)(1) For purposes of the provisions of law cited in paragraphs (2)(A) and (2)(B), respec- tively, the Postal Service— (A) shall be considered to be a ‘‘person’’, as used in the provisions of law involved; and (B) shall not be immune under any other doctrine of sovereign immunity from suit in Federal court by any person for any violation of any of those provisions of law by any officer or employee of the Postal Service. (2) This subsection applies with respect to— (A) the Act of July 5, 1946 (commonly re- ferred to as the ‘‘Trademark Act of 1946’’ (15 U.S.C. 1051 and following)); and (B) the provisions of section 5 of the Federal Trade Commission Act to the extent that such section 5 applies to unfair or deceptive acts or practices. (e)(1) To the extent that the Postal Service, or other Federal agency acting on behalf of or in concert with the Postal Service, engages in con- duct with respect to any product which is not reserved to the United States under section 1696 of title 18, the Postal Service or other Federal agency (as the case may be)— (A) shall not be immune under any doctrine of sovereign immunity from suit in Federal court by any person for any violation of Fed- eral law by such agency or any officer or em- ployee thereof; and (B) shall be considered to be a person (as de- fined in subsection (a) of the first section of the Clayton Act) for purposes of—