[Code of Federal Regulations]
[Title 39, Volume 1]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 39CFR266.9]

[Page 140-144]
 
                        TITLE 39--POSTAL SERVICE
 
                 CHAPTER I--UNITED STATES POSTAL SERVICE
 
PART 266--PRIVACY OF INFORMATION--Table of Contents
 
Sec. 266.9  Exemptions.

    (a) Subsections 552a(j) and (k) of title 5, U.S.C., empower the 
Postmaster General to exempt systems of records meeting certain criteria 
from various other subsections of section 552a. With respect to systems 
of records so exempted, nothing in this part shall require compliance 
with provisions hereof implementing any subsections of section 552a from 
which those systems have been exempted.
    (b) At paragraph (b)(1) of this section is a summary of the Act's 
provisions for which exemption is claimed pursuant to, and to the extent 
permitted by, subsections 552a(j) and (k) of title 5, U.S.C., for some 
systems of records. Paragraphs (b)(2) through (6) of this section 
identify the exempted systems of records, the exemptions applied to 
each, and the reasons for the exemptions:
    (1) Explanation of the Act's provisions for which an exemption is 
claimed in the systems discussed below. (i) Subsection (c)(3) requires 
an agency to make available to the individual named in the records an 
accounting of each disclosure of records.
    (ii) Subsection (c)(4) requires an agency to inform any person or 
other agency to which a record has been disclosed of any correction or 
notation of dispute the agency has made to the record in accordance with 
subsection (d) of the Act.
    (iii) Subsection (d)(1)-(4) requires an agency to permit an 
individual to gain access to records about the individual, to request 
amendment of such records, to request a review of an agency decision not 
to amend such records, and to provide a statement of disagreement about 
a disputed record to be filed and disclosed with the disputed record.
    (iv) Subsection (e)(1) requires an agency to maintain in its records 
only such information about an individual that is relevant and necessary 
to accomplish a purpose required by statute or executive order of the 
President.
    (v) Subsection (e)(2) requires an agency to collect information to 
the greatest extent practicable directly from the subject individual 
when the information may result in adverse determinations about an 
individual's rights, benefits, and privileges under federal programs.
    (vi) Subsection (e)(3) requires an agency to inform each person whom 
it asks to supply information of the authority under which the 
information is sought, the purposes for which the information will be 
used, the routine uses that may be made of the information, whether 
disclosure is mandatory or voluntary, and the effects of not providing 
the information.
    (vii) Subsection (e)(4)(G) and (H) requires an agency to publish a 
Federal Register notice of its procedures whereby an individual can be 
notified upon request whether the system of records contains information 
about the individual, how to gain access to any record about the 
individual contained in the system, and how to contest its content. 
Subsection (e)(4)(I) requires the foregoing notice to include the 
categories of sources in the system.
    (viii) Subsection (e)(5) requires an agency to maintain its records 
with such accuracy, relevance, timeliness, and completeness as is 
reasonably necessary to ensure fairness to the individual in making any 
determination about the individual.

[[Page 141]]

    (ix) Subsection (e)(8) requires an agency to make reasonable efforts 
to serve notice on an individual when any record on such individual is 
made available to any person under compulsory legal process when such 
process becomes a matter of public record.
    (x) Subsection (f) requires an agency to establish procedures 
whereby an individual can be notified upon request if any system of 
records named by the individual contains a record pertaining to the 
individual, obtain access to the record, and request amendment.
    (xi) Subsection (g) provides for civil remedies if an agency fails 
to comply with the access and amendment provisions of subsections (d)(1) 
and (d)(3), and with other provisions of the Act, or any rule 
promulgated thereunder, in such a way as to have an adverse effect on an 
individual.
    (xii) Subsection (m) requires an agency to cause the requirements of 
the Act to be applied to a contractor operating a system of records to 
accomplish an agency function.
    (2) Inspection Requirements--Investigative File System, USPS 
080.010, Inspection Requirements--Mail Cover Program, USPS 080.020, and 
Office of Inspector General-Investigative File System, USPS 300.010. 
These systems of records are exempt from 5 U.S.C. 552a (c)(3) and (4), 
(d)(1)-(4), (e)(1)-(3), (e)(4) (G) and (H), (e)(5) and (8), (f), (g), 
and (m). In addition, system 300.010 is exempt from 5 U.S.C. 
552a(e)(4)(I). The reasons for exemption follow:
    (i) Disclosure to the record subject pursuant to subsections (c)(3), 
(c)(4), or (d)(1)-(4) could:
    (A) Alert subjects that they are targets of an investigation or mail 
cover by the Postal Inspection Service or an investigation by the Office 
of Inspector General;
    (B) Alert subjects of the nature and scope of the investigation and 
of evidence obtained;
    (C) Enable the subject of an investigation to avoid detection or 
apprehension;
    (D) Subject confidential sources, witnesses, and law enforcement 
personnel to harassment or intimidation if their identities were 
released to the target of an investigation;
    (E) Constitute unwarranted invasions of the personal privacy of 
third parties who are involved in a certain investigation;
    (F) Intimidate potential witnesses and cause them to be reluctant to 
offer information;
    (G) Lead to the improper influencing of witnesses, the destruction 
or alteration of evidence yet to be discovered, the fabrication of 
testimony, or the compromising of classified material; and
    (H) Seriously impede or compromise law enforcement, mail cover, or 
background investigations that might involve law enforcement aspects as 
a result of the above.
    (ii) Application of subsections (e)(1) and (e)(5) is impractical 
because the relevance, necessity, or correctness of specific information 
might be established only after considerable analysis and as the 
investigation progresses. As to relevance (subsection (1)), effective 
law enforcement requires the keeping of information not relevant to a 
specific Postal Inspection Service investigation or Office of Inspector 
General investigation. Such information may be kept to provide leads for 
appropriate law enforcement and to establish patterns of activity that 
might relate to the jurisdiction of the Office of Inspector General, 
Postal Inspection Service, and/or other agencies. As to accuracy 
(subsection (e)(5)), the correctness of records sometimes can be 
established only in a court of law.
    (iii) Application of subsections (e)(2) and (3) would require 
collection of information directly from the subject of a potential or 
ongoing investigation. The subject would be put on alert that he or she 
is a target of an investigation by the Office of Inspector General, or 
an investigation or mail cover by the Postal Inspection Service, 
enabling avoidance of detection or apprehension, thereby seriously 
compromising law enforcement, mail cover, or background investigations 
involving law enforcement aspects. Moreover, in certain circumstances 
the subject of an investigation is not required to provide information 
to investigators, and information must be collected from other sources.

[[Page 142]]

    (iv) The requirements of subsections (e)(4)(G) and (H), and (f) do 
not apply because this system is exempt from the individual access and 
amendment provisions of subsection (d). Nevertheless, the Postal Service 
has published notice of its notification, access, and contest procedures 
because access is appropriate in some cases.
    (v) Application of subsection (e)(8) could prematurely reveal an 
ongoing criminal investigation to the subject of the investigation.
    (vi) The provisions of subsection (g) do not apply because exemption 
from the provisions of subsection (d) renders the provisions on suits to 
enforce subsection (d) inapplicable.
    (vii) If one of these systems of records is operated in whole or in 
part by a contractor, the exemptions claimed herein shall remain 
applicable to it (subsection (m)).
    (viii) The requirement of subsection (e)(4)(I) does not apply to 
system 300.010, because identification of record source categories could 
enable the subject of an investigation to improperly interfere with the 
conduct of the investigation.
    (3) Personnel Records--Preemployment Investigation Records, USPS 
120.110; Personnel Records--Postmaster Selection Program Records, USPS 
120.130. These systems of records are exempt from 5 U.S.C. 552a(d)(1)-
(4) and (e)(1) to the extent that information in the system is subject 
to exemption under 5 U.S.C. 552a(k)(5) as relating to the identity of a 
source who furnished information to the government in confidence as a 
part of an investigation conducted solely for the purpose of determining 
suitability, eligibility, or qualifications of an individual for 
employment. The reasons for exemption follow:
    (i) During its investigation and evaluation of an applicant for a 
position, the Postal Service contacts individuals who, without an 
assurance of anonymity, would refuse to provide information concerning 
the subject of the investigation. If a record subject were given access 
pursuant to subsection (d)(1)-(4), the promised confidentiality would be 
breached and the confidential source would be identified. The result 
would be restriction of the free flow of information vital to a 
determination of an individual's qualifications and suitability for 
appointment to or continued occupancy of his position.
    (ii) In collecting information for investigative and evaluative 
purposes, it is impossible to determine in advance what information 
might be of assistance in determining the qualifications and suitability 
of an individual for appointment. Information that seems irrelevant, 
when linked with other information, can sometimes provide a composite 
picture of an individual that assists in determining whether that 
individual should be appointed to or retained in a position. For this 
reason, exemption from subsection (e)(1) is claimed.
    (4) Personnel Records--Personnel Research and Test Validation 
Records, USPS 120.120; Personnel Records--Career Development and 
Training Records, USPS 120.152. These systems of records are exempt from 
5 U.S.C. 552a(d)(1)-(4), (e)(4)(G) and (H), and (f) to the extent that 
information in the system is subject to exemption pursuant to 5 U.S.C. 
552a(k)(6) as relating to the compromise of the objectivity or fairness 
of the testing or examination process. The reasons for exemption follow:
    (i) These systems contain questions and answers to standard testing 
materials, the disclosure of which would compromise the fairness of the 
future use of these materials. It is not feasible to develop entirely 
new examinations after each administration as would be necessary if 
questions or answers were available for inspection and copying. 
Consequently, exemption from subsection (d) is claimed.
    (ii) The requirements of subsections (e)(4)(G) and (H), and (f) do 
not apply to these systems for which exemption from subsection (d) of 
the Act has been claimed. Nevertheless, the Postal Service has published 
notice of its notification, access, and contest procedures because 
access to system records that do not compromise the objectivity or 
fairness of the testing examination process is appropriate in some 
cases.
    (5) Personnel Records--Recruiting, Examining, and Appointment 
Records, USPS 120.151. This system is exempt from 5 U.S.C. 552a(d)(1)-
(4), (e)(1), (e)(4)(G) and

[[Page 143]]

(H), and (f) to the extent that information in the system is subject to 
exemption pursuant to 5 U.S.C. 552a(k)(5) as relating to the identity of 
a source who has furnished information to the government in confidence 
as part of an investigation conducted solely for the purpose of 
determining suitability, eligibility, or qualifications of an individual 
for employment; and to exemption pursuant to subsection 5 U.S.C. 
552a(k)(6) as relating to the compromise of the objectivity or fairness 
of the testing or examination process. The reasons for exemption follow:
    (i) To the extent that information in this system is subject to 
exemption pursuant to 5 U.S.C. 552a(k)(5), application of the provisions 
at subsection (d)(1)-(4) would reveal to the applicant whose suitability 
is being investigated the identity of individuals who supplied 
information under a promise of anonymity. As a result, the Postal 
Service's promise of confidentiality would be breached, its ability to 
obtain information in the future would be diminished, and the 
information source could be subjected to harassment by the applicant. To 
the extent that information in this system is subject to exemption 
pursuant to 5 U.S.C. 552a(k)(6), the requirements of the exemption at 
subsection (d)(1)-(4) and the reasons for exempting information relating 
to the compromise of the objectivity or fairness of the testing or 
examination process are the same as those given in paragraph (b)(5)(i) 
of this section.
    (ii) The reasons for exempting this system of records from 
subsection (e)(1) are the same as those given in paragraph (b)(4)(ii) of 
this section.
    (iii) The requirements of subsections (e) (4) (G) and (H), and (f) 
do not apply to this system for which exemption from subsection (d) of 
the Act has been claimed. Nevertheless, the Postal Service has published 
notice of its notification, access, and contest procedures because 
access to system records that do not compromise the objectivity or 
fairness of the testing or examination process or reveal the identity of 
a confidential is appropriate in some cases.
    (6) Equal Employment Opportunity--EEO Discrimination Complaint 
Investigations, USPS 030.010. This system is exempt from 5 U.S.C. 
552a(d) (1)-(4), (e) (4) (G) and (H), and (f) to the extent that 
information in the system is subject to exemption pursuant to 5 U.S.C. 
552a(k)(2) as material compiled for law enforcement purposes and 
subsection (k)(5) as relating to the identity of a source who has 
furnished information to the government in confidence as a part of an 
investigation conducted solely for the purpose of determining 
suitability, eligibility, or qualifications of an individual for 
employment. The reasons for exemption follow.
    (i) To the extent that information in this system is subject to 
exemption pursuant to 5 U.S.C. 552a(k)(2), application of the 
requirements of the exemption at subsection (d)(1)-(4) would cause 
disruption of enforcement of the laws relating to equal employment 
opportunity (EEO). To the extent that information in this system is 
subject to exemption pursuant to 5 U.S.C. 552a(k)(5), application of the 
provisions at subsection (d)(1)-(4) would reveal to the EEO complainant 
the identity of individuals who supplied information under a promise of 
anonymity. It is essential to the integrity of the EEO complaint system 
that information collected in the investigative process not be 
prematurely disclosed and that witnesses be free from restraint, 
interference, coercion, or reprisal.
    (ii) The requirements of subsections (e) (4) (G) and (H), and (f) do 
not apply to this system for which exemption from subsection (d) of the 
Act has been claimed. Nevertheless, the Postal Service has published 
notice of its notification, access, and contest procedures because 
access to system records that do not compromise the investigative 
process or reveal the identity of confidential sources is appropriate in 
some cases.
    (7) Finance Records--Suspicious Transaction Reports, USPS 050.080. 
This system is exempt from 5 U.S.C. 552a (c)(3), (d)(1) through (4), 
(e)(1), (e)(4)(G), (e)(4)(H), (e)(4)(I), and (f) to the extent that 
information in the system is subject to exemption pursuant to 5 U.S.C. 
552a(k)(2) as material compiled for law enforcement purposes. The 
reasons for exemption follow.
    (i) Disclosure to the record subject pursuant to subsections (c)(3) 
through (d)(1) through (4) would violate the

[[Page 144]]

non-notification provision of the Bank Secrecy Act, 31 U.S.C. 
5318(g)(2), under which the Postal Service is prohibited from notifying 
a transaction participant that a suspicious transaction report has been 
made. In addition, the access provisions of subsections (c)(3) and (d) 
would alert individuals that they have been identified as suspects or 
possible subjects of investigation and thus seriously hinder the law 
enforcement purposes underlying the suspicious transaction reports.
    (ii) This system is in compliance with subsection (e)(1), because 
maintenance of the records is required by law. Strict application of the 
relevance and necessity requirements of subsection (e)(1) to suspicious 
transactions would be impractical, however, because the relevance or 
necessity of specific information can often be established only after 
considerable analysis and as an investigation progresses.
    (iii) The requirements of subsections (e)(4)(G), (H), and (I) and 
subsection (f) do not apply because this system is exempt from the 
individual access and amendment provisions of subsection (d). 
Nevertheless, the Postal Service has published notice of the record 
source categories and the notification, access, and contest procedures.

[59 FR 35625, July 13, 1994, as amended at 66 FR 40891, Aug. 6, 2001; 67 
FR 79859, Dec. 31, 2002]