Use of Military Post Offices by Military Exchange Activities

Gao ID: LCD-79-213 June 1, 1979

Several military exchange activities are using military post offices to transport foreign-made goods to other exchange locations for resales. As a result, foreign-manufactured goods move under postal rates which generally are less than commercial cargo fees. These foreign products could be receiving a competitive advantage by not having to bear the full cost of commerical transportation. This advantage is inconsistent with the policy of achieving a more favorable balance of payments by promoting the sale of U.S. goods.

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