39 U.S.C. § 3633 — Provisions applicable to rates for competi-

Page 110 TITLE 39—POSTAL SERVICE § 3633 § 3633. Provisions applicable to rates for competi- tive products (a) IN GENERAL.—The Postal Regulatory Com- mission shall, within 18 months after the date of enactment of this section, promulgate (and may from time to time thereafter revise) regulations to— (1) prohibit the subsidization of competitive products by market-dominant products; (2) ensure that each competitive product covers its costs attributable; and (3) ensure that all competitive products col- lectively cover what the Commission deter- mines to be an appropriate share of the insti- tutional costs of the Postal Service. (b) REVIEW OF MINIMUM CONTRIBUTION.—Five years after the date of enactment of this sec- tion, and every 5 years thereafter, the Postal Regulatory Commission shall conduct a review to determine whether the institutional costs contribution requirement under subsection (a)(3) should be retained in its current form, modified, or eliminated. In making its determination, the Commission shall consider all relevant cir- cumstances, including the prevailing competi- tive conditions in the market, and the degree to which any costs are uniquely or disproportion- ately associated with any competitive products. (Added Pub. L. 109–435, title II, § 202, Dec. 20, 2006, 120 Stat. 3206.) Editorial Notes REFERENCES IN TEXT The date of enactment of this section, referred to in text, is the date of enactment of Pub. L. 109–435, which was approved Dec. 20, 2006. Statutory Notes and Related Subsidiaries REVIEW OF POSTAL SERVICE COST ATTRIBUTION GUIDELINES Pub. L. 117–108, title II, § 203, Apr. 6, 2022, 136 Stat. 1147, provided that: ‘‘Not later than the date that is one year after the date of the enactment of this Act [Apr. 6, 2022], the Postal Regulatory Commission shall ini- tiate a review of the regulations issued pursuant to sec- tions 3633(a) and 3652(a)(1) of title 39, United States Code, to determine whether revisions are appropriate to ensure that all direct and indirect costs attributable to competitive and market-dominant products are properly attributed to those products, including by considering the underlying methodologies in deter- mining cost attribution and considering options to re- vise such methodologies. If the Commission deter- mines, after notice and opportunity for public com- ment, that revisions are appropriate, the Commission shall make modifications or adopt alternative meth- odologies as necessary.’’ [For definitions of terms used in section 203 of Pub. L. 117–108, set out above, see section 2 of Pub. L. 117–108, set out as a note under section 501 of this title.] STUDY ON EQUAL APPLICATION OF LAWS TO COMPETITIVE PRODUCTS Pub. L. 109–435, title VII, § 703, Dec. 20, 2006, 120 Stat. 3244, required the Federal Trade Commission to prepare and submit to the President and Congress, and to the Postal Regulatory Commission, within 1 year after Dec. 20, 2006, a comprehensive report identifying Fed- eral and State laws that applied differently to the United States Postal Service with respect to the com- petitive category of mail (within the meaning of sec- tion 102 of this title) and to private companies pro- viding similar products. § 3634. Assumed Federal income tax on competi- tive products income (a) DEFINITIONS.—For purposes of this sec- tion— (1) the term ‘‘assumed Federal income tax on competitive products income’’ means the net income tax that would be imposed by chapter 1 of the Internal Revenue Code of 1986 on the Postal Service’s assumed taxable in- come from competitive products for the year; and (2) the term ‘‘assumed taxable income from competitive products’’, with respect to a year, refers to the amount representing what would be the taxable income of a corporation under the Internal Revenue Code of 1986 for the year, if— (A) the only activities of such corporation were the activities of the Postal Service al- locable under section 2011(h) to competitive products; and (B) the only assets held by such corpora- tion were the assets of the Postal Service al- locable under section 2011(h) to such activi- ties. (b) COMPUTATION AND TRANSFER REQUIRE- MENTS.—The Postal Service shall, for each year beginning with the year in which occurs the deadline for the Postal Service’s first report to the Postal Regulatory Commission under sec- tion 3652(a)— (1) compute its assumed Federal income tax on competitive products income for such year; and (2) transfer from the Competitive Products Fund to the Postal Service Fund the amount of that assumed tax. (c) DEADLINE FOR TRANSFERS.—Any transfer required to be made under this section for a year shall be due on or before the January 15th next occurring after the close of such year. (Added Pub. L. 109–435, title IV, § 402, Dec. 20, 2006, 120 Stat. 3226.) Editorial Notes REFERENCES IN TEXT The Internal Revenue Code of 1986, referred to in sub- sec. (a), is classified to Title 26, Internal Revenue Code. SUBCHAPTER III—PROVISIONS RELATING TO EXPERIMENTAL AND NEW PRODUCTS Editorial Notes AMENDMENTS 2006—Pub. L. 109–435, title II, § 203, Dec. 20, 2006, 120 Stat. 3207, substituted ‘‘PROVISIONS RELATING TO EXPERIMENTAL AND NEW PRODUCTS’’ for ‘‘TEM- PORARY RATES AND CLASSES’’ in subchapter head- ing. § 3641. Market tests of experimental products (a) AUTHORITY.— (1) IN GENERAL.—The Postal Service may conduct market tests of experimental prod- ucts in accordance with this section.