[Federal Register Volume 61, Number 160 (Friday, August 16, 1996)]
[Rules and Regulations]
[Pages 42557-42558]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20865]


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

POSTAL SERVICE

39 CFR Part 233


Addition of Commercial Espionage to Mail Cover Regulations

AGENCY: Postal Service.

ACTION: Final rule.

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

SUMMARY: This final rule amends the United States Postal Service's 
national security mail cover regulations to add commercial espionage by 
foreign sources as an activity for which national security mail covers 
may be authorized. This change is effected by expanding the definition 
of ``protection of the national security'' found at 39 CFR 233.3(c)(9) 
to include commercial espionage.

EFFECTIVE DATE: August 16, 1996.

FOR FURTHER INFORMATION CONTACT: Henry J. Bauman, Counsel, Postal 
Inspection Service, (202) 268-4415.

SUPPLEMENTARY INFORMATION: On May 10, 1996, the Postal Service 
published in the Federal Register (61 FR 21404) a proposed rule to 
amend its national security mail cover regulations to add commercial 
espionage and a request for comments on the proposed rule. No comments 
were received by the closing date of June 10, 1996. The Postal Service 
therefore adopts the rule below as originally published.
    Postal Service regulations on mail covers are published in Title 39 
of the Code of Federal Regulations (CFR) at section 233. Paragraph 
(c)(9) of Sec. 233.3 currently defines ``protection of the national 
security'' as ``actual or potential threats to the security of the 
United States of America by a foreign power or its agents.'' This 
definition is expanded to include commercial espionage.
    Commercial espionage by foreign sources has become an increasing 
threat to the economic well-being and ability of the United States to 
compete in the international market. For the purposes of this revision, 
``commercial espionage'' is defined as either ``economic espionage'' or 
``industrial espionage.'' According to the Federal Bureau of 
Investigation (FBI) white paper, FBI Strategy to Address the Problem of 
Economic Espionage and Industrial Espionage (Washington, DC: FBI 
Headquarters, undated), ``economic espionage'' is ``government-
directed, sponsored, or coordinated intelligence activity, which may or 
may not constitute violation of the law, conducted for the purpose of 
enhancing that country's or another country's economic competitiveness 
by the use of the information by the foreign government or by providing 
it to a foreign business entity thereby giving that entity a 
competitive advantage in the marketplace.'' ``Industrial espionage'' is 
defined by the FBI as ``individual or private business entity 
sponsorship or coordination of intelligence activity conducted for the 
purpose of enhancing a private business and its competitive advantage 
in the marketplace, which is a violation of law.''
    Revising the Postal Service's national security mail cover 
regulations to include commercial espionage will enhance the ability of 
law enforcement to protect national security. The Postal Service has 
determined that this change in its regulations is a matter of internal 
practice and procedure that will not substantially affect the rights or 
obligations of private parties.

List of Subjects in 39 CFR Part 233

    Administrative practice and procedures, Banks and banking, Credit, 
Crime, Law enforcement, Postal Service, Privacy, Seizure and 
forfeiture.

    Accordingly, 39 CFR 233 is amended as set forth below.

PART 233--INSPECTION SERVICE/INSPECTOR GENERAL AUTHORITY

    1. The authority citation for part 233 continues to read as 
follows:

    Authority: 39 U.S.C. 101, 401, 402, 403, 404, 406, 410, 411, 
3005(e)(1); 12 U.S.C. 3401-3422; 18 U.S.C. 981, 1956, 1957, 2254, 
3061; 21 U.S.C. 881; Inspector General Act of 1978, as amended (Pub. 
L. No. 95-452, as amended), 5 U.S.C. App.3.

    2. Paragraph (c)(9) of Sec. 233.3 is revised to read as follows:


Sec. 233.3  Mail covers.

* * * * *
    (c) * * *
    (9) Protection of the national security means to protect the United 
States from any of the following actual or potential threats to its 
security by a foreign power or its agents:
    (i) An attack or other grave, hostile act;
    (ii) Sabotage, or international terrorism; or

[[Page 42558]]

    (iii) Clandestine intelligence activities, including commercial 
espionage.
* * * * *
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 96-20865 Filed 8-15-96; 8:45 am]
BILLING CODE 7710-12-P