Addition of Commercial Espionage to Mail Cover Regulations

POSTAL SERVICE

39 CFR Part 233

Addition of Commercial Espionage to Mail Cover Regulations

AGENCY: Postal Service.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule will amend the United States Postal

Service's mail cover regulations to add commercial espionage by foreign

sources as a criminal 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.

DATES: Comments must be received on or before June 10, 1996.

ADDRESSES: Written comments should be mailed or delivered to Counsel,

Postal Inspection Service, 475 L'Enfant Plaza SW, Room 3411,

Washington, DC 20260-2181.

FOR FURTHER INFORMATION CONTACT: Henry J. Bauman, Counsel, Postal

Inspection Service, (202) 268-4415.

SUPPLEMENTARY INFORMATION: Postal Service regulations on mail covers

are published in Title 39 of the Code of Federal Regulations (CFR) at

Sec. 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 will be 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

``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 will be 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 proposed

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.

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 proposed to be amended as set forth

below.

PART 233--INSPECTION SERVICE/INSPECTOR GENERAL AUTHORITY

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

follows:

tional security.

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 proposed to be 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

(iii) Clandestine intelligence activities, including commercial

espionage.

* * * * *

Stanley F. Mires,

Chief Counsel, Legislative.

[FR Doc. 96-11768 Filed 5-9-96; 8:45 am]

BILLING CODE 7710-12-P