the general public, an opportunity to present their views 
on those recommendations through submission of written 
data, views, or arguments, with or without opportunity for 
oral presentation, or in such other manner as the Commis-
sion considers appropriate. 
‘‘(B) After due consideration of the views and other 
information received under subparagraph (A), the Com-
mission shall by rule—
‘‘(i) provide for the establishment and applica-
tion of the accounting practices and principles which 
shall be followed by the Postal Service; 
‘‘(ii) provide for the establishment and applica-
tion of the substantive and procedural rules de-
scribed in paragraph (1)(B); and 
‘‘(iii) provide for the submission by the Postal 
Service to the Postal Regulatory Commission of an-
nual and other periodic reports setting forth such in-
formation as the Commission may require. 
Final rules under this subparagraph shall be issued not 
later than 12 months after the date on which the Sec-
retary of the Treasury makes his submission to the Com-
mission under paragraph (1) (or by such later date as the 
Commission and the Postal Service may agree to). The 
Commission is authorized to promulgate regulations revis-
ing such rules.
‘‘(C) Reports described in subparagraph (B)(iii) shall 
be submitted at such time and in such form, and shall 
include such information, as the Commission by rule re-
quires. The Commission may, on its own motion or on re-
quest of an interested party, initiate proceedings (to be 
conducted in accordance with such rules as the Commis-
sion shall prescribe) to improve the quality, accuracy, or 
completeness of Postal Service data under such subpara-
graph whenever it shall appear that—
‘‘(i) the quality of the information furnished in 
those reports has become significantly inaccurate or 
can be significantly improved; or 
‘‘(ii) those revisions are, in the judgment of the 
Commission, otherwise necessitated by the public in-
terest. 
‘‘(D) A copy of each report described in subpara-
graph (B)(iii) shall also be transmitted by the Postal Serv-
ice to the Secretary of the Treasury and the Inspector 
General of the United States Postal Service. 
‘‘(i) The Postal Service shall render an annual report 
to the Secretary of the Treasury concerning the operation 
of the Competitive Products Fund, in which it shall ad-
dress such matters as risk limitations, reserve balances, 
allocation or distribution of moneys, liquidity require-
ments, and measures to safeguard against losses. A copy
of its then most recent report under this subsection shall 
be included with any other submission that it is required 
to make to the Postal Regulatory Commission under sec-
tion 3652(g).’’. 
(2) CLERICAL AMENDMENT.—The analysis for 
chapter 20 of title 39, United States Code, is 
amended by adding after the item relating to section 
2010 the following:
‘‘2011. Provisions relating to competitive products.’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) DEFINITION.—Section 2001 of title 39, 
United States Code, is amended by striking ‘‘and’’ 
at the end of paragraph (1), by redesignating para-
graph (2) as paragraph (3), and by inserting after 
paragraph (1) the following: 
‘‘(2) ‘Competitive Products Fund’ means the 
Postal Service Competitive Products Fund estab-
lished by section 2011; and’’. 
(2) CAPITAL OF THE POSTAL SERVICE.—Sec-
tion 2002(b) of title 39, United States Code, is 
amended by striking ‘‘Fund,’’ and inserting ‘‘Fund 
and the balance in the Competitive Products 
Fund,’’. 
(3) POSTAL SERVICE FUND.—
(A) PURPOSES FOR WHICH AVAILABLE.—
Section 2003(a) of title 39, United States Code,
is amended by striking ‘‘title.’’ and inserting 
‘‘title (other than any of the purposes, func-
tions, or powers for which the Competitive 
Products Fund is available).’’. 
(B) DEPOSITS.—Section 2003(b) of title 
39, United States Code, is amended by striking 
‘‘There’’ and inserting ‘‘Except as otherwise 
provided in section 2011, there’’. 
(4) RELATIONSHIP BETWEEN THE TREASURY 
AND THE POSTAL SERVICE.—Section 2006 of title 
39, United States Code, is amended—
(A) in subsection (a), by inserting ‘‘or sec-
tion 2011’’ before ‘‘of this title,’’; 
(B) in subsection (b), by inserting ‘‘under 
section 2005’’ before ‘‘in such amounts’’ in the 
first sentence and before ‘‘in excess of such 
amount.’’ in the second sentence; and 
(C) in subsection (c), by inserting ‘‘or sec-
tion 2011(e)(4)(E)’’ before ‘‘of this title,’’. 
SEC. 302. ASSUMED FEDERAL INCOME TAX ON COMPETI-
TIVE PRODUCTS INCOME. 
Subchapter II of chapter 36 of title 39, United States 
Code, as amended by section 202, is amended by adding 
at the end the following:
‘‘§ 3634. Assumed Federal income tax on competitive 
products income 
‘‘(a) DEFINITIONS.—For purposes of this section—
‘‘(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 Inter-
nal Revenue Code of 1986 on the Postal Service’s 
assumed taxable income 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 tax-
able income of a corporation under the Internal Rev-
enue Code of 1986 for the year, if—
‘‘(A) the only activities of such corporation 
were the activities of the Postal Service allo-
cable under section 2011(h) to competitive 
products; and 
‘‘(B) the only assets held by such corpora-
tion were the assets of the Postal Service allo-
cable under section 2011(h) to such activities. 
‘‘(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 section 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 re-
quired 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.’’. 
SEC. 303. UNFAIR COMPETITION PROHIBITED. 
(a) SPECIFIC LIMITATIONS.—Chapter 4 of title 39, 
United States Code, is amended by adding after section 
404 the following: 
‘‘§ 404a. Specific Limitations 
‘‘(a) Except as specifically authorized by law, the 
Postal Service may not—
‘‘(1) establish any rule or regulation (including 
any standard) the effect of which is to preclude com-
petition or establish the terms of competition unless 
the Postal Service demonstrates that the regulation 
does not create an unfair competitive advantage for 
itself or any entity funded (in whole or in part) by 
the Postal Service; 
‘‘(2) compel the disclosure, transfer, or licens-
ing of intellectual property to any third party (such
as patents, copyrights, trademarks, trade secrets, 
and proprietary information); or 
‘‘(3) obtain information from a person that pro-
vides (or seeks to provide) any product, and then 
offer any product or service that uses or is based in 
whole or in part on such information, without the 
consent of the person providing that information, 
unless substantially the same information is obtained 
(or obtainable) from an independent source or is 
otherwise obtained (or obtainable). 
‘‘(b) The Postal Regulatory Commission shall pre-
scribe regulations to carry out this section. 
‘‘(c) Any party (including an officer of the Commis-
sion representing the interests of the general public) who 
believes that the Postal Service has violated this section 
may bring a complaint in accordance with section 3662.’’. 
(b) CONFORMING AMENDMENTS.—
(1) GENERAL
POWERS.—Section 401 of title 
39, United States Code, is amended by striking 
‘‘The’’ and inserting ‘‘Subject to the provisions of 
section 404a, the’’. 
(2) SPECIFIC POWERS.—Section 404(a) of title 
39, United States Code, is amended by striking 
‘‘Without’’ and inserting ‘‘Subject to the provisions 
of section 404a, but otherwise without’’.
(c) CLERICAL AMENDMENT.—The analysis for chap-
ter 4 of title 39, United States Code, is amended by insert-
ing after the item relating to section 404 the following:
‘‘404a. Specific limitations.’’.
SEC. 304. SUITS BY AND AGAINST THE POSTAL SERVICE. 
(a) IN GENERAL.—Section 409 of title 39, United 
States Code, is amended by striking subsections (d) and 
(e) and inserting the following: 
‘‘(d)(1) For purposes of the provisions of law cited 
in paragraphs (2)(A) and (2)(B), respectively, the Postal 
Service—
‘‘(A) shall be considered to be a ‘person’, as 
used in the provisions of law involved; and 
‘‘(B) shall not be immune under any other doc-
trine of sovereign immunity from suit in Federal 
court by any person for any violation of any of those 
provisions of law by any officer or employee of the 
Postal Service. 
‘‘(2) This subsection applies with respect to—
‘‘(A) the Act of July 5, 1946 (commonly re-
ferred to as the ‘Trademark Act of 1946’ (15 U.S.C. 
1051 and following)); and 
‘‘(B) the provisions of section 5 of the Federal 
Trade Commission Act to the extent that such sec-
tion 5 applies to unfair or deceptive acts or prac-
tices.
‘‘(e)(1) To the extent that the Postal Service, or other 
Federal agency acting on behalf of or in concert with the 
Postal Service, engages in conduct with respect to any 
competitive product, the Postal Service or other Federal 
agency (as the case may be)—
‘‘(A) shall not be immune under any doctrine of 
sovereign immunity from suit in Federal court by 
any person for any violation of Federal law by such 
agency or any officer or employee thereof; and 
‘‘(B) shall be considered to be a person (as de-
fined in subsection (a) of the first section of the 
Clayton Act) for purposes of—
‘‘(i) the antitrust laws (as defined in such 
subsection); and 
‘‘(ii) section 5 of the Federal Trade Com-
mission Act to the extent that such section 5 
applies to unfair methods of competition. 
‘‘(2) No damages, interest on damages, costs or at-
torney’s fees may be recovered, and no criminal liability 
may be imposed, under the antitrust laws (as so defined) 
from any officer or employee of the Postal Service, or 
other Federal agency acting on behalf of or in concert with 
the Postal Service, acting in an official capacity.
‘‘(3) This subsection shall not apply with respect to 
conduct occurring before the date of the enactment of this 
subsection. 
‘‘(f)(1) Each building constructed or altered by the 
Postal Service shall be constructed or altered, to the max-
imum extent feasible as determined by the Postal Service, 
in compliance with one of the nationally recognized model 
building codes and with other applicable nationally recog-
nized codes. 
‘‘(2) Each building constructed or altered by the 
Postal Service shall be constructed or altered only after 
consideration of all requirements (other than procedural 
requirements) of zoning laws, land use laws, and applica-
ble environmental laws of a State or subdivision of a State 
which would apply to the building if it were not a building 
constructed or altered by an establishment of the Govern-
ment of the United States. 
‘‘(3) For purposes of meeting the requirements of 
paragraphs (1) and (2) with respect to a building, the 
Postal Service shall—
‘‘(A) in preparing plans for the building, con-
sult with appropriate officials of the State or polit-
ical subdivision, or both, in which the building will 
be located;
‘‘(B) upon request, submit such plans in a 
timely manner to such officials for review by such 
officials for a reasonable period of time not exceed-
ing 30 days; and 
‘‘(C) permit inspection by such officials during 
construction or alteration of the building, in accord-
ance with the customary schedule of inspections for 
construction or alteration of buildings in the locality, 
if such officials provide to the Postal Service—
‘‘(i) a copy of such schedule before con-
struction of the building is begun; and 
‘‘(ii) reasonable notice of their intention to 
conduct any inspection before conducting such 
inspection. 
Nothing in this subsection shall impose an obligation on 
any State or political subdivision to take any action under 
the preceding sentence, nor shall anything in this sub-
section require the Postal Service or any of its contractors 
to pay for any action taken by a State or political subdivi-
sion to carry out this subsection (including reviewing 
plans, carrying out on-site inspections, issuing building 
permits, and making recommendations). 
‘‘(4) Appropriate officials of a State or a political 
subdivision of a State may make recommendations to the 
Postal Service concerning measures necessary to meet the
requirements of paragraphs (1) and (2). Such officials 
may also make recommendations to the Postal Service 
concerning measures which should be taken in the con-
struction or alteration of the building to take into account 
local conditions. The Postal Service shall give due consid-
eration to any such recommendations. 
‘‘(5) In addition to consulting with local and State 
officials under paragraph (3), the Postal Service shall es-
tablish procedures for soliciting, assessing, and incor-
porating local community input on real property and land 
use decisions. 
‘‘(6) For purposes of this subsection, the term ‘State’ 
includes the District of Columbia, the Commonwealth of 
Puerto Rico, and a territory or possession of the United 
States. 
‘‘(g)(1) Notwithstanding any other provision of law, 
legal representation may not be furnished by the Depart-
ment of Justice to the Postal Service in any action, suit, 
or proceeding arising, in whole or in part, under any of 
the following: 
‘‘(A) Subsection (d) or (e) of this section. 
‘‘(B) Subsection (f) or (g) of section 504 (relat-
ing to administrative subpoenas by the Postal Regu-
latory Commission).
‘‘(C) Section 3663 (relating to appellate re-
view). 
The Postal Service may, by contract or otherwise, employ 
attorneys to obtain any legal representation that it is pre-
cluded from obtaining from the Department of Justice 
under this paragraph. 
‘‘(2) In any circumstance not covered by paragraph 
(1), the Department of Justice shall, under section 411, 
furnish the Postal Service such legal representation as it 
may require, except that, with the prior consent of the 
Attorney General, the Postal Service may, in any such cir-
cumstance, employ attorneys by contract or otherwise to 
conduct litigation brought by or against the Postal Service 
or its officers or employees in matters affecting the Postal 
Service. 
‘‘(3)(A) In any action, suit, or proceeding in a court 
of the United States arising in whole or in part under any 
of the provisions of law referred to in subparagraph (B) 
or (C) of paragraph (1), and to which the Commission 
is not otherwise a party, the Commission shall be per-
mitted to appear as a party on its own motion and as 
of right. 
‘‘(B) The Department of Justice shall, under such 
terms and conditions as the Commission and the Attorney 
General shall consider appropriate, furnish the Commis-
sion such legal representation as it may require in connec-
tion with any such action, suit, or proceeding, except that, 
with the prior consent of the Attorney General, the Com-
mission may employ attorneys by contract or otherwise for 
that purpose. 
‘‘(h) A judgment against the Government of the 
United States arising out of activities of the Postal Service 
shall be paid by the Postal Service out of any funds avail-
able to the Postal Service, subject to the restriction speci-
fied in section 2011(g).’’. 
(b) TECHNICAL AMENDMENT.—Section 409(a) of 
title 39, United States Code, is amended by striking ‘‘Ex-
cept as provided in section 3628 of this title,’’ and insert-
ing ‘‘Except as otherwise provided in this title,’’. 
SEC. 305. INTERNATIONAL POSTAL ARRANGEMENTS. 
(a) IN GENERAL.—Section 407 of title 39, United 
States Code, is amended to read as follows: 
‘‘§ 407. International postal arrangements 
‘‘(a) It is the policy of the United States—
‘‘(1) to promote and encourage communications 
between peoples by efficient operation of inter-
national postal services and other international deliv-
ery services for cultural, social, and economic pur-
poses;
‘‘(2) to promote and encourage unrestricted and 
undistorted competition in the provision of inter-
national postal services and other international deliv-
ery services, except where provision of such services 
by private companies may be prohibited by law of 
the United States; 
‘‘(3) to promote and encourage a clear distinc-
tion between governmental and operational respon-
sibilities with respect to the provision of inter-
national postal services and other international deliv-
ery services by the Government of the United States 
and by intergovernmental organizations of which the 
United States is a member; and 
‘‘(4) to participate in multilateral and bilateral 
agreements with other countries to accomplish these 
objectives. 
‘‘(b)(1) The Secretary of State shall be responsible 
for formulation, coordination, and oversight of foreign pol-
icy related to international postal services and other inter-
national delivery services, and shall have the power to con-
clude treaties, conventions and amendments related to 
international postal services and other international deliv-
ery services, except that the Secretary may not conclude 
any treaty, convention, or other international agreement 
(including those regulating international postal services)
if such treaty, convention, or agreement would, with re-
spect to any competitive product, grant an undue or un-
reasonable preference to the Postal Service, a private pro-
vider of international postal or delivery services, or any 
other person. 
‘‘(2) In carrying out the responsibilities specified in 
paragraph (1), the Secretary of State shall exercise pri-
mary authority for the conduct of foreign policy with re-
spect to international postal services and international de-
livery services, including the determination of United 
States positions and the conduct of United States partici-
pation in negotiations with foreign governments and inter-
national bodies. In exercising this authority, the Sec-
retary—
‘‘(A) shall coordinate with other agencies as ap-
propriate, and in particular, shall give full consider-
ation to the authority vested by law or Executive 
order in the Postal Regulatory Commission, the De-
partment of Commerce, the Department of Trans-
portation, and the Office of the United States Trade 
Representative in this area; 
‘‘(B) shall maintain continuing liaison with 
other executive branch agencies concerned with post-
al and delivery services;
‘‘(C) shall maintain continuing liaison with the 
Committee on Government Reform of the House of 
Representatives and the Committee on Govern-
mental Affairs of the Senate; 
‘‘(D) shall maintain appropriate liaison with 
both representatives of the Postal Service and rep-
resentatives of users and private providers of inter-
national postal services and other international deliv-
ery services to keep informed of their interests and 
problems, and to provide such assistance as may be 
needed to ensure that matters of concern are 
promptly considered by the Department of State or 
(if applicable, and to the extent practicable) other 
executive branch agencies; and 
‘‘(E) shall assist in arranging meetings of such 
public sector advisory groups as may be established 
to advise the Department of State and other execu-
tive branch agencies in connection with international 
postal services and international delivery services. 
‘‘(3) The Secretary of State shall establish an advi-
sory committee (within the meaning of the Federal Advi-
sory Committee Act) to perform such functions as the Sec-
retary considers appropriate in connection with carrying 
out subparagraphs (A) through (D) of paragraph (2).
‘‘(c)(1) Before concluding any treaty, convention, or 
amendment that establishes a rate or classification for a 
product subject to subchapter I of chapter 36, the Sec-
retary of State shall request the Postal Regulatory Com-
mission to submit a decision on whether such rate or clas-
sification is consistent with the standards and criteria es-
tablished by the Commission under section 3622. 
‘‘(2) The Secretary shall ensure that each treaty, con-
vention, or amendment concluded under subsection (b) is 
consistent with a decision of the Commission adopted 
under paragraph (1), except if, or to the extent, the Sec-
retary determines, by written order, that considerations of 
foreign policy or national security require modification of 
the Commission’s decision. 
‘‘(d) Nothing in this section shall be considered to 
prevent the Postal Service from entering into such com-
mercial or operational contracts related to providing inter-
national postal services and other international delivery 
services as it deems appropriate, except that—
‘‘(1) any such contract made with an agency of 
a foreign government (whether under authority of 
this subsection or otherwise) shall be solely contrac-
tual in nature and may not purport to be inter-
national law; and
‘‘(2) a copy of each such contract between the 
Postal Service and an agency of a foreign govern-
ment shall be transmitted to the Secretary of State 
and the Postal Regulatory Commission not later 
than the effective date of such contract. 
‘‘(e)(1) With respect to shipments of international 
mail that are competitive products within the meaning of 
section 3631 that are exported or imported by the Postal 
Service, the Bureau of Customs and Border Protection of 
the Department of Homeland Security and other appro-
priate Federal agencies shall apply the customs laws of 
the United States and all other laws relating to the impor-
tation or exportation of such shipments in the same man-
ner to both shipments by the Postal Service and similar 
shipments by private companies. 
‘‘(2) For purposes of this subsection, the term ‘pri-
vate company’ means a private company substantially 
owned or controlled by persons who are citizens of the 
United States. 
‘‘(3) In exercising the authority pursuant to sub-
section (b) to conclude new treaties, conventions and 
amendments related to international postal services and 
to renegotiate such treaties, conventions and amendments, 
the Secretary of State shall, to the maximum extent prac-
ticable, take such measures as are within the Secretary’s
control to encourage the governments of other countries 
to make available to the Postal Service and private compa-
nies a range of nondiscriminatory customs procedures that 
will fully meet the needs of all types of American shippers. 
The Secretary of State shall consult with the United 
States Trade Representative and the Commissioner of 
Customs, Department of Homeland Security in carrying 
out this paragraph. 
‘‘(4) The provisions of this subsection shall take ef-
fect 6 months after the date of the enactment of this sub-
section or such earlier date as the Bureau of Customs and 
Border Protection of the Department of Homeland Secu-
rity may determine in writing.’’. 
(b) EFFECTIVE DATE.—Notwithstanding any provi-
sion of the amendment made by subsection (a), the au-
thority of the United States Postal Service to establish 
the rates of postage or other charges on mail matter con-
veyed between the United States and other countries shall 
remain available to the Postal Service until—
(1) with respect to market-dominant products, 
the date as of which the regulations promulgated 
under section 3622 of title 39, United States Code 
(as amended by section 201(a)) take effect; and 
(2) with respect to competitive products, the 
date as of which the regulations promulgated under