Example (4). The same HMO's hospital and clinics send requisitions and invoices to the HMO's central office as the need arises for the ordering of and payment for goods and services, which are handled centrally. Every other Friday, the central office sends to the hospital and clinics reports and memoranda on expenditures for personnel, supplies, utilities, and other goods and services. Nothing substantial turns on whether these materials arrive the same day or by 10 a.m. of the next business day or whether their transmission takes a day or more longer to complete. The private carriage of these materials would not qualify under the test set out in paragraph (b) above.

Example (5). On Sunday, Tuesday, and Thursday evenings, the central office of a regional grocery store chain sends out to its various stores in the area inventory bulletins prepared over the previous 24 hours showing the current availability and prices of meat, produce, dairy products, breadstuffs, frozen foods and similar items. Early the following afternoon, each store must send these inventory bulletins back to the central office with a notation of the store's orders to assure that the central office can ship sufficient supplies of such items for sale by the store on its next business day. The private carriage of these bulletins would qualify under the test set out in paragraph (b) above.

Example (6). On Sunday, Tuesday, and Thursday evenings, the central office of a different regional grocery chain sends out to its various stores in the area inventory bulletins showing the current availability and prices of meat, produce, dairy products, breadstuffs, frozen foods and similar items. Early in the afternoon of the second day following receipt of the bulletins, each store sends the bulletins back to the central office so that supplies of such items may be shipped to the store four days later. Nothing substantial turns on whether these bulletins arrive within 12 hours or by noon of the next business day or whether their transmission takes a day or more longer to complete. The private carriage of these materials would not qualify under the test set out in paragraph (b) above.

Example (7). The headquarters office of a large bank each business day prepares and sends to its branch offices lists showing current foreign exchange rates and similar information that must be updated and distributed to the branches on a daily basis in order for the bank to avoid the risk of serious financial loss. Within three hours of their receipt by each branch office, these lists are circulated and utilized by officials of the branch office in conducting regular banking procedures involving the use of such lists. The private carriage of these lists would qualify under the test set out in paragraph (b) above.

Example (8). The field office of an insurance company daily sends the insurance applications it has taken in that day to the company's central office. The applications are bound (i.e., constitute evidence of insurance) for 30 days, but may be canceled by the company. Few if any policies have been canceled by the company within 48 hours of their receipt at the central office, though the company normally begins processing the applications soon after their receipt. Nothing substantial turns on whether these bound applications arrive within 12 hours or by noon of the next business day or whether their transmission takes a day or more longer to complete. The private carriage of these materials would not qualify under the test set out in paragraph (b) above.

Example (9). An organization of real estate brokers in a community issues periodic bulletins containing information about properties which have been listed for sale by the constituent brokers. Each broker is entitled to show the properties to prospective buyers. In order to provide each broker with substantially equal opportunity to secure a buyer, it is necessary that the bulletins be delivered on the same day and within the shortest time span within that day. The bulletins constitute the basic source of information for the brokers and delivery in the foregoing manner is a key element in the functioning of the brokers. The private carriage of the bulletins would therefore qualify under the test set out in paragraph (b) above.

Example (10). The same organization distributes memoranda regarding speakers at real estate seminars, sales figures for a given period, and other information of significance and interest to real estate brokers but which does not affect their competitive positions. A failure to make simultaneous or near simultaneous delivery to the brokers, or a failure to make delivery within a specified period of time, has no material bearing upon the day-to-day operations of the brokers and private carriage of these materials would not qualify under the test set out in paragraph (b) above.

(39 U.S.C. 401, 404, 601-606; 18 U.S.C. 16931699, 1724)

[44 FR 61181, Oct. 24, 1979]

§ 320.7 Suspension for advertisements accompanying parcels or periodicals.

(a) The operation of 39 U.S.C. 601(a) (1) through (6) and § 310.2(b) (1) through (6) of this chapter is suspended on all post routes for advertisements enclosed with merchandise in parcels or accompanying periodicals under the following circumstances:

(1) The advertisements must not be marked with the names or addresses of the intended recipients.

(2) The advertisements must be incidental to the shipment of the merchandise or the periodical.

(i) An advertisement is incidental to the shipment of the accompanying merchandise or the periodical when the merchandise or the periodical has been ordered by or would otherwise be sent to the recipient even without the accompanying advertisement.

(ii) Notwithstanding § 320.7(a)(2)(i), an advertisement is not incidental to the merchandise when the pertinent circumstances, such as the nominal value of the merchandise, its shipment on an unsolicited basis, or its status as a sample, reasonably indicate that the shipper's primary purpose is the conveyance of the advertisement itself and that the merchandise is merely an adjunct to the advertisement.

(b) An item is an advertisement if its primary purpose is to cause or induce the purchase of goods or services from the shipper or others.

(39 U.S.C. 401, 404, 601-606; 18 U.S.C. 1693-1699, 1724)

[45 FR 59874, Sept. 11, 1980]

§ 320.8 [Reserved]

§ 320.9 Revocation or amendment of sus

pensions.

These suspensions may be revoked or amended in accordance with § 310.7. No revocation of the suspension provided in § 320.2 will curtail operations of particular carriers existing at the time of the revocation to a level of operations (in dollar or volume terms, whichever is larger) lower than that antedating the revocation in a particular market served prior to the revocation. Should the suspension referred to in § 320.2 be revoked, carriers, as a condition to continuing operations under this section, will be required to provide reasonably complete and accurate data to support estimates of past operating levels in particular markets.

(39 U.S.C. 401, 404, 601-606; 18 U.S.C. 16931699, 1724)

[44 FR 52835, Sept. 11, 1979. Redesignated at 44 FR 61181, Oct. 24, 1979]

Sec.

Subpart H-Definitions

447.81 Definitions of terms used in this Code.

Subpart I-Statutory Provisions

447.91 Statutes and regulations applicable to postal employees.

AUTHORITY: 39 U.S.C. 401 and Executive Order 11222 of May 8, 1965 (30 FR 6469, May 11, 1965, 3 CFR 306, 1965 Supp.), as amended by Executive Order 11590 of April 23, 1971 (36 FR 7831, April 27, 1971) 3 CFR 405 (1972); 5 CFR 735.104.

SOURCE: 39 FR 1990, Jan. 16, 1974, unless otherwise noted.

Subpart A-Basic Purpose and Applicability

§ 447.11 Basic purpose and applicability.

(a) This Code of Ethical Conduct is designed to instruct and guide employees entering the Postal Service, and to remind all employees of the conduct expected and required of them in performing their official duties and in their general conduct.

(b) Each employee, including each special Postal Service employee, is required to read and become familiar with this Code. A violation of this Code may be cause for remedial or disciplinary action, including discharge. In any instance where an employee needs guidance concerning this Code including any statute or regulation mentioned herein, he should request guidance from the appropriate Postal official as designated in § 447.31(b).

(c) Although this Code is not applicable to members of a uniformed service or to employees of another Government agency who are serving with the Postal Service, these persons are not relieved from their responsibilities under the regulations of the service or agency from which they are assigned or detailed to the Postal Service.

(d) The provisions of this Code shall be broadly construed and strictly enforced in order to prevent postal employees from securing any pecuniary advantage, however indirect, from their public employment, other than

their compensation as provided by the Postal Service.

§ 447.12 Congressional code of ethics for Government service.

The standards of conduct for all employees of the United States have been stated by Congress in the Code of Ethics for Government Service. These standards properly call for the best that is in all who are in public service and should be followed by all Postal Service employees.

CODE OF ETHICS FOR GOVERNMENT SERVICE Any person in Government service should: 1. Put loyalty to the highest moral principles and to country above loyalty to persons, party, or Government department.

2. Uphold the Constitution, laws, and legal regulations of the United States and of all governments therein and never be a party to their evasion.

3. Give a full day's labor for a full day's pay; giving to the performance of his duties his earnest effort and best thought.

4. Seek to find and employ more efficient and economical ways of getting tasks accomplished.

5. Never discriminate unfairly by the dispensing of special favors or privileges to anyone, whether for remuneration or not; and never accept, for himself or his family, favors or benefits under circumstances which might be construed by reasonable persons as influencing the performance of his governmental duties.

6. Make no private promises of any kind binding upon the duties of office, since a Government employee has no private word which can be binding on public duty.

7. Engage in no business with the Government, either directly or indirectly, which is inconsistent with the conscientious performance of his governmental duties.

8. Never use any information coming to him confidentially in the performance of governmental duties as a means for making private profit.

9. Expose corruption wherever discovered. 10. Uphold these principles, ever conscious that public office is a public trust.

(2) Giving preferential treatment to any person;

(3) Impeding Postal Service efficiency or economy;

(4) Losing complete independence or impartiality;

(5) Making a Postal Service decision outside official channels; or

(6) Affecting adversely the confidence of the public in the integrity of the Postal Service.

§ 447.22 Conflicts of interest-financial. (a) General Principles: An employee may own property and engage in financial transactions, except to the extent limited by statute, Executive order, or regulations, including this Code. Because of his employment, however, no employee may have a financial interest, direct or indirect, that conflicts substantially, or appears to conflict substantially, with his duties and responsibilities to the Postal Service.

(b) Whether a financial conflict of interest exists will often depend on the particular facts of each instance. Detailed rules cannot practically be prescribed that will cover every situation. The following rules, however, provide guidance for specific situations and illustrate the manner in which the general principles should be applied.

(1) No employee shall enter into any contract with the Postal Service or otherwise have an interest (including the ownership of stock or debt securities in a corporation which has an interest) in any contract with the Postal Service except as may be authorized by law or regulation. (For example, section 1-302.3 of the Postal Contracting Manual permits contracts between the Postal Service and its employees only under the most compelling circumstances.) This paragraph, however, does not prohibit the ownership of an interest (i) if the interest is so minor that no realistic possibility of a conflict of interest, or the appearance of a conflict of interest, exists or (ii) if the employee advises his Associate Ethical Conduct Officer of the interest, makes full disclosure of all relevant facts, and receives a written decision by the Associate Ethical Conduct Officer that the possibility of a con

flict is too remote or too inconsequential to be likely to affect the integrity of his services.

(2) No employee shall solicit or accept any part of any fee or other compensation paid by any person in connection with any business dealings with, or proceedings before, the Postal Service or other agency of the Government.

(3) No employee shall act as agent or broker in procuring any bond required by the Postal Service.

(4) No employee with authority to contract for the transportation of mail, to review or give legal advice concerning these contracts, or to recommend or make decisions concerning the transportation of mail shall have any financial interest in any entity which carries, or may reasonably be expected to carry, mail.

(5) No employee with authority to recommend or make decisions, or to give legal advice, concerning the acquisition, leasing or disposal of real property shall have any interest in any entity which deals with real estate in which the Postal Service has, or may reasonably be expected to have, an interest.

(6) No employee shall lease real property to the Postal Service except for an area less than 3,000 square feet of net interior space. An existing lease of a greater amount of space may be renewed or extended if (i) the contracting officer determines that it would be in the best interests of the Postal Service and (ii) the Associate Ethical Conduct Officer for the organizational unit to which the employee is assigned is furnished a full statement of all known possible conflicts of interest and, after review thereof, concurs in the proposed extension or renewal.

(7) No employee shall participate in his official capacity in any decision or other matter in which, to his knowledge, he, or any entity by which he is or may become employed, has a financial interest unless (i) he advises his Associate Ethical Conduct Officer of the possible conflict, makes full disclosure of all relevant facts, and receives in advance a written determination by the Associate Ethical Conduct Officer that the interest is too remote or too

inconsequential to be likely to affect the integrity of his services, or (ii) a general regulation published in the FEDERAL REGISTER has exempted the interest from the prohibition of this rule as being too remote or too inconsequential to affect the integrity of Government employee's services.

(c) No employee shall solicit or accept, directly or indirectly, any compensation from any source other than the Postal Service for any act or omission as an employee, or accept any salary or any contribution to or supplementation of salary as compensation for his services as an employee, from any source other than the Postal Service. This section does not prohibit:

(1) Acceptance of a lawful contribution to salary out of the treasury of a State, county, or municipality;

(2) Acceptance of contributions, awards, or other expenses under the terms of chapter 41 of title 5, U.S.C., relating to training of employees of the U.S. Government;

(3) Continued participation in a bona fide pension, retirement, group life, health or accident insurance, profitsharing, stock bonus, or other employee welfare or benefit maintained by a former employer.

plan

(d) No employee, whether acting for personal benefit or not, shall use, or appear to use, his official position or information obtained as a result of his employment to further any private interest, whether his own or that of any other person.

(e) Unless required by his official duties to do so, no employee shall recommend or suggest the employment of any private person offering services as a consultant, agent, attorney, expeditor or the like for the purpose of assisting in any negotiations, transactions or other business with the Postal Service.

[39 FR 1990, Jan. 16, 1974, as amended at 39 FR 3677, Jan. 28, 1974]

§ 447.23 Conflict of interest-employment.

General Principles. An employee may engage in outside employment and other outside activity with or without compensation, except as limited by statute, Executive order or regulations, including this Code. An em