---
kind: "section"
citation: "39 C.F.R. § 3035.107"
title: "39"
number: "3035.107"
heading: "Standards for compliance."
url: "https://uscodex.org/cfr/39/3035.107"
---

# §3035.107. Standards for compliance.


For purposes of determining competitive products' compliance with [39 U.S.C. 3633](/usc/39/3633.md), the Commission will apply the following standards:

- (a) Incremental costs will be used to test for cross-subsidies by market dominant products of competitive products. To the extent that incremental cost data are unavailable, the Commission will use the sum of competitive products' volume-variable costs and product-specific costs supplemented to include causally related, group-specific costs to test for cross-subsidies.
- (b) Each competitive product must recover its attributable costs as defined in [39 U.S.C. 3631(b)](/usc/39/3631.md?p=b). Pursuant to [39 U.S.C. 3631(b)](/usc/39/3631.md?p=b), the Commission will calculate a competitive product's attributable costs as the sum of its volume-variable costs, product-specific costs, and those inframarginal costs calculated as part of a competitive product's incremental costs.
- (c)
  - (1) Annually, on a fiscal year basis, the appropriate share of institutional costs to be recovered from competitive products collectively, at a minimum, will be calculated using the following formula:
  - (2) The Commission shall, as part of each Annual Compliance Determination, calculate and report competitive products' appropriate share for the upcoming fiscal year using the formula set forth in [paragraph (c)(1)](#c-1) of this section.

## Notes

### Amendments

[72 FR 63697, Nov. 9, 2007, as amended at 81 FR 88123, Dec. 7, 2016; 84 FR 539, Jan. 31, 2019. Redesignated at 85 FR 9615, Feb. 19, 2020; 88 FR 3315, Jan. 19, 2023]

### Authority

Authority: 39 U.S.C. 503; 3633.

### Source

Source: 72 FR 63697, Nov. 9, 2007, unless otherwise noted. Redesignated at 85 FR 9615, Feb. 19, 2020.

### Amendments

[72 FR 63697, Nov. 9, 2007, as amended at 81 FR 88123, Dec. 7, 2016; 84 FR 539, Jan. 31, 2019. Redesignated at 85 FR 9615, Feb. 19, 2020; 88 FR 3315, Jan. 19, 2023]