Fees shall not be allowed for ship letters if they are:

(a) Addressed to a foreign country. (b) Delivered by any of the following: (1) A passenger or sailor, other than the master.

(2) The master of any vessel or any person on board any vessel which carries mail.

(3) Any carrier on any mail route.

(4) The master of a vessel who delivers to a postmaster letters which were carried over a post route.

Fees shall not be allowed for printed matter.

§ 541.4 Compensation for transportation of surface mail.

(a) Definite rates: Payment shall be made for the transportation of United States mail and foreign closed transit mail on steamships of the United States and foreign registry at the rates specified in the schedule below. The word "mail" includes parcel post. The rates cover all services performed by foreign flag vessels and all maritime service of U.S. flag vessels.

1 Rates for: Maritime transportation of mall (except U.S. Mail transshipped from the Canal Zone) including outbound empty equipment on steamships of United States registry (cents per pound, net weight for mail).

Rates for: 1. All mail (including empty air mail sacks) on steamships of foreign registry; and 2. United States Mail transshipped from Canal Zone on steamships of United States registry (cents per pound, net weight for mail).

In addition to the maritime transportation rates shown in column (1) above, the Post Office Department will either pay steamships of United States registry directly for costs incurred by them or assume the responsibility for cartage from postal facility to pier.

(b) Special rates: This section shall not prevent a carrier from accepting

maritime transportation rates lower than those shown in paragraph (a) of this section.

(c) The maritime transportation rates prescribed in paragraph (a) of this section while measured by the net weight of the mail, are intended in all cases to include payment for the weight of the covering mail bags. In the case of vessels of foreign registry, the maritime transportation rates prescribed in paragraph (a) of this section while measured by the net weight of the mail, also include compensation for the return of empty surface mail bags and the transportation from the postal facility to the pier. Acceptance by steamship companies of mail for transportation constitutes an acceptance of this method of computing payment.

(d) Any steamship company desiring to be relieved of the transportation of mail may make written application to the Assistant Postmaster General, Bureau of Transportation, Post Office Department, Washington, D.C. 20260.

(39 U.S.C. 6409) [27 F.R. 9988, Oct. 11, 1962. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

§ 541.5

Rates for rail service across Isthmus of Panama.

Payment for the transportation by railroad across the Isthmus of Panama, for United States and foreign closed transit mail shall be $0.0525 per pound for letters and post cards and $0.007 per pound for other articles, including parcel post. § 541.6 Fines on steamship companies transporting mail beyond borders of United States.

Steamship companies are responsible to the United States for the safety of the mail intrusted to them, and accountable for any loss or damage resulting to any mail by reason of failure on the part of any of their officers, agents, or employees to exercise due care in the custody, handling, or transportation thereof. In case of delinquencies, fines may be imposed or deductions made from the company's pay.

Sec.

542.6 Rates of compensation. 542.7 Payment for transportation of mail. 542.8 International air handbook.

AUTHORITY: The provisions of this Part 542 issued under 5 U.S.C. 301, 39 U.S.C. 501, 505.

SOURCE: The provisions of this Part 542 appear at 31 F.R. 15478, Dec. 8, 1966, unless otherwise noted.

§ 542.1 Authority.

(a) Applicability. The rules and regulations in this part apply to air carriers and foreign air carriers engaging in overseas or international air transportation of mail on FAM numbered routes assigned by the Post Office Department to the extent noted herein, and they subplement the provisions of the convention of the Universal Postal Union.

(b) Definitions (as used in Part 542)-(1) Scheduled U.S. Air Carrier (also called American flag carrier). Any citizen or company of the United States authorized by the Civil Aeronautics Board to engage in overseas or international air transportation.

(2) Foreign air carrier (also called foreign flag carrier). Any individual or company not of the United States authorized by the Civil Aeronautics Board to engage in international air transportation.

(3) Carrier. Both air carrier and foreign air carrier.

(4) Overseas air transportation. The transportation of mail by aircraft between a place in any State of the United States and any place in a Territory or possession of the United States; or between a place in a Territory or possession of the United States and a place in any other Territory or possession of the United States.

(5) International air transportation. The transportation of mail by aircraft between a place in any State, Territory, or possession of the United States and any place wholly outside thereof.

(6) Mail. United States and international transit mail.

(c) Authority to engage in air transportation (1) American flag air carriers.

Air carriers shall not engage in air transportation unless a certificate has been issued by the Civil Aeronautics Board authorizing them to do so. Each such certificate states the terminal points and intermediate points, if any, between which the air carrier is authorized to engage in air transportation.

(2) Foreign flag air carriers. Foreign air carriers shall not engage in air transportation from U.S. soil without a permit issued by the Civil Aeronautics Board authorizing such transportation.

(d) Policy for dispatch of mail—(1) Policy for dispatch of airmail. (1) U.S. air carriers will have first priority to traffic whenever practicable.

(ii) Airmail will be dispatched by the most expeditious service to the airport of destination.

(iii) Airmail for competitive points will be divided equally between competitive flights of U.S. air carriers as nearly as practicable if such flights are scheduled to arrive at the airport of destination within 1 hour of each other. When one carrier operates multiple competitive flights scheduled to arrive at an airport within 1 hour of a competitive flight or flights of another carrier, the airmail will be divided equally between air carriers rather than between flights. For each application of the principles the time period of 1 hour will start with the first scheduled arrival of a flight or flights not included in an earlier division. A divided share of airmail will not be subject to further division.

(iv) The use of a flight or flights may be suspended in the event of cancellation, unduly delayed departure, frequent failure of schedule performance, abnormal mail backlog, or other unusual or unanticipated conditions which would otherwise delay the dispatch of airmail or impair the service to be accorded the mail.

(v) No division will be made when less than 100 kilograms of airmail are available for dispatch. When less than 100 kilograms are available regularly, each of the competing carriers will be given all the airmail available on alternate weeks, but no attempt will be made to balance cumulative total volumes.

(vi) No division will be made when flights depart from or arrive at different airports.

(vii) For division purposes, destination airmail is defined as all airmail for the destination airport city; all airmail to be off-loaded at the destination airport which is subject to onward movement by the foreign postal administration having jurisdiction, or by U.S. military postal authorities; and all airmail for interline transfer at that point. Airmail which is transferred on-line at a foreign airport will not be included in the division of mail for that point.

(viii) All airmail, both civil and military, subject to division will be included in the weight totals, regardless of type of mail (LC, AO, and CP), and will be allocated between competing carriers to maintain approximately the same spaceweight ratio, as far as practicable.

(ix) Letter class mail (LC) will be given preference of dispatch over other classes of mail. Military airmail in pouches shall be considered as LC mail.

(x) When a flight serves both competitive and noncompetitive points, priority will be given for all the noncompetitive points, loading first the furthermost point, then the next one back in distance (or service) sequence, and so forth. After all mail for the noncompetitive points has been accommodated, the remaining available space will be utilized for mail to competitive points commencing again with the most distant point being loaded first.

(xi) Dispatches of civilian mail should not be split. Single dispatches of mail to a competitive point shall not be divided by weight between competing flights serving such point.

(2) Dispatch and division. (1) Military ordinary mail may not be dispatched on an aircraft unless the air carrier has first provided fully for the needs of the postal service for the transportation of airmail and air parcel post on that aircraft, and (in the case of a service offering passenger transportation) has also first provided fully for the passenger requirements on that flight.

(ii) Military ordinary mail shall be dispatched by the most expeditious service to the airport of destination to the extent that space is available on a flight under the conditions set forth in subdivision (i) of this subparagraph.

(iii) Military ordinary mail for competitive points shall be divided equally between competitive flights as nearly as practicable if such flights are scheduled to arrive at the airport of destination within 2 hours of each other. When one carrier operates multiple competitive flights scheduled to arrive at an airport within 2 hours of a competitive flight or flights of another carrier, the military ordinary mail shall be divided equally between air carriers rather than between flights. For each application of these principles the time period of 2 hours shall begin with the first scheduled arrival of a flight or flights not included in an earlier division, whether or not such flight or flights actually carry any military ordi

nary mail. A divided share of military ordinary mail will not be subject to further division.

(iv) Military ordinary mail will be divided on a weight basis which, to the extent practicable, reflects an equitable division of types of such mail having different space requirements.

(v) The use of a flight or flights may be suspended in the event of cancellation, unduly delayed departure, frequent failure of schedule performance, abnormal mail backlog, or other unusual or unanticipated condition which would otherwise delay the dispatch of military ordinary mail or impair the service to be accorded such mail.

(e) Rules and regulations. The Department will make such rules and regulations as may be necessary for the safe and expeditious transportation of airmail by aircraft. The Assistant Postmaster General, Bureau of Transportation and International Services, will establish the policy for transportation of mail and for exchange of airmail between postal employees and carriers.

(f) Agreements. The Department may enter into agreements with postal administrations of other countries with respect to airmail transportation. The Department may also make arrangements with foreign air carriers for the transportation of mail if they have been issued permits by the Civil Aeronautics Board.

(g) Transportation of foreign mail. Air carriers transporting mail of other countries are subject to control and regulation of the United States.

§ 542.2 Carrier operations.

(a) Filing of schedules. Carriers authorized to engage in air transportation shall transport mail only after filing their schedules of operations with the Department. The Department will designate the flights required for the transportation of mail and inform the carriers accordingly. No carrier shall transport mail in accordance with any schedule other than one designated or ordered to be established by the Department for the transportation of mail.

(b) Schedule revisions. Changes to existing schedules must be filed with the Department not less than 10 days before their effective dates. Three copies should be filed with the Director, International Service Division, Bureau of Transportation and International Services, Post Office Department, Washing

ton D.C. 20260, one with the director, transportation division, in each region concerned, and three with the claim for the mail transportation.

(c) Flight movement. Carriers should operate designated flights as nearly as practicable at the times indicated in published schedules. Whenever earlier or later departures are required, sufficient advance notice should be given the local postal representatives in order that appropriate adjustments may be made in the dispatch schedules.

(d) Extra sections. Extra sections of a designated scheduled flight may be used for the transportation of mail.

(e) Emergency flights. Emergency flights operated by a carrier may be used for the transportation of mail. However, carriers should not accept mail for any country served by the emergency flight if they are not authorized to serve that country regularly.

(f) Omission of service. If a scheduled stop is to be omitted on a designated flight, the carrier must immediately notify the local postal representatives concerned. If the service is to be suspended for 1 week or more, the carrier must notify the Director, International Service Division, Post Office Department, Washington, D.C. 20260, and the local postal representative at the point involved. The same officials should be notified when the service is resumed.

(g) Canceled flights. When a flight is canceled at the initial terminal or any point en route, the carrier should promptly notify the local postal representatives concerned.

(h) Delayed departures. If a flight is delayed after accepting mail and the delay is estimated to be 1 hour or less beyond the scheduled departure, the mail will be retained aboard the flight. If the flight is delayed over 1 hour, the dispatching postal unit should be informed of the delay and the probable time of departure. In such cases, the postal representative will determine whether the mail should be returned to the postal unit.

(1) Accidents. Carriers will immediately inform the Post Office Department, Washington, D.C., of any accident resulting in possible damage to or loss of U.S. mail. When an accident occurs in the United States, the director, transportation division, in the region concerned should also be notified. Accidents occurring outside the United States must be reported to the postal adminis

tration of the country to which the carrier belongs and to the postal administration of the country in which the accident occurs. (See 542.4.)

§ 542.3

Transportation of mail.

(a) Tender of mail. When authorized to transport mail, carriers shall provide necessary and adequate facilities and service for its transportation and will be held strictly accountable for the proper care of mail and postal equipment while in their custody.

(b) Priority of mail and estimates— (1) Estimates. Estimates are for planning purposes to assist the Postal Service as well as the air carrier to fully realize maximum payload on each flight. Postal units will give air carriers advance estimate of the mail anticipated for each flight. The time of advance estimate will depend upon local agreements between the air carriers and the exchange offices. Air carriers must accommodate the "normal load" on each passenger flight, and give priority to any excess mail over unconfirmed passengers and their baggage at the time they were advised there would be an excess. See § 531.32 of this chapter for computation of normal load.

(2) Priority. If the carrier does not accept the normal load, or the excess, in event there is any that part not accepted will constitute a refusal, and Form 2759 Report of Irregular Handling of Airmail, will be prepared in detail. Form 2760 Air Carriers Reply Refusal/ Removal of Airmail, will be obtained from carrier in all instances. On cargo aircraft, carrier must give all airmail offered priority over any other traffic. In event of refusal or removal, priority, as outlined in subparagraph (4) of this paragraph will prevail.

(3) Backlog. Carriers will be expected to provide sufficient lift to accommodate any backlog of mail which has accumulated due to irregular operations or cancellations.

(4) Removal or refusal. When it becomes necessary to reduce the load of an aircraft due to weather or other cause, the following order of removal or refusal shall prevail:

(1) Company material.
(11) Express and cargo.

(iii) All categories of mail other than letters and cards (LC).

(iv) Diplomatic pouches not carried as first-class mail.

(v) Company mail.

(vi) LC mail after removal of all other traffic except revenue passengers with space confirmed prior to knowledge that the load must be reduced.

(5) Nonpriority mail. Normally, military ordinary mail (MOM) moves on the same priority as air cargo, that is, on a first-in, first-out basis. Carriers accepting military ordinary mail do so with the understanding that transportation is assured to the destination indicated on the AV-7.

(c) Delivery of mail to carriers-(1) Documentation. The postal unit delivering mail must prepare the AV-7s listing the origin, destination, weight of the mail, and dispatch and routing instructions. One set of AV-7s must be prepared for each stop point on the flight where mail is available for transportation.

(2) Verification by carriers. The carriers shall verify all mail tendered for transportation against the entries appearing on the AV-7s. If an irregularity in the condition of the mail is observed at the time of acceptance, it should be brought to the attention of the postal unit before signing the AV-7s.

(d) Delivery of mail to carriers on delayed flights and extra sections-(1) Delayed flights. After flight documents have been completed for imminent departure and a delay occurs, additional mail should not be accepted by carriers unless it can be done without detriment and cause no further delay in departure of the flight. Additional mail will be tendered if space is available and it will not cause removal of passengers or cargo already manifested on the aircraft documents.

(2) Extra sections. Mail may be conveyed on extra sections of a designated flight. Mail carried on extra sections shall be considered as having been conveyed on the regular scheduled flight for purposes of arriving at the base weight for the flight.

(e) Transfer between flights. Each carrier must transfer mail beween its own flights whenever the transfer is shown on the AV-7s. It must transfer mail at points in the United States, its territories or possessions with domestic air carriers as directed by the Department.

(f) Retaining mail in other countries. In other countries, air carriers may retain custody of U.S. civilian mail aboard a flight when the departure is delayed up to 12 hours. On delays over 12

hours, or upon cancellation, civilian mail must be delivered to the local post office for disposition. The original documents, properly endorsed, must accompany the mail. Military airmail must be held in the custody of the air carrier while the air carrier contacts the nearest U.S. military postal unit for disposition. Under no circumstances should military airmail be turned over to a foreign post office or to a foreign air carrier without written permission.

(g) Delivery of mail by carriers to postal representatives—(1) Prompt delivery. Upon arrival of a flight, the carrier must unload the mail and make delivery as soon as possible to the authorized postal representative at such point as may be designated.

(2) 4V-78. One copy of each set of AV-7s and additional copies which are required for receipt to the carrier must be delivered with the mail. Any irregularities must be noted on all copies of the AV-7.

(3) Without AV-7s. Air carriers are required to deliver mail and related AV7s to areas designated by the respective regions. In the event that an air carrier does not deliver the original documents relating to the inbound international mail, the following procedures will be observed by all postal units:

(1) The receiving postal unit will make a phone call to the predesignated office of the air carrier advising that international mail had been delivered without the necessary documents.

(ii) A responsible air carrier representative will be permitted 20 minutes to arrive at the receiving point to prepare the documents in detail. Total number of pieces only need be shown on duplicate AV-7s covering nonregistered military mail. However, registered military mail must be descriptively listed.

(iii) A Form 2759 will be prepared by the postal unit to cite the missing AV-7 irregularity with a notation that air carrier representative had arrived at the receiving point in the prescribed time.

(iv) The air carrier will then proceed to locate and deliver the missing original Forms AV-7.

(v) If the air carrier representative fails to arrive at the postal unit in the allowed 20 minutes, the receiving clerk will prepare the documents noting thereon that the air carrier had not complied with the Post Office Department requirement. A Form 2759 will be pre