Rule(s):

 Form Item 5

Staff:

Michael Verne

Response / Comments:

 12/19/2011 – Agree. K Berg concurs/

 

Original Image File

 

From:

(Redacted)

Sent:

Monday, December 19, 2011 8:48 AM

To:

Verne, B. Michael

Subject:

FW: item 5 foreign sales

Mike, please review the below item 5 scenarios that I sent last week; if possible today, thanks (redacted)

 

From:        (Redacted)
Sent:         Friday, December 16, 2011 9:52 AM
To: '           Verne, B. Michael'
Subject:   item 5 foreign sales

Mike, in view of the FR notice, that item 5 now requires foreign sales if manufactured outside the US and sold in the US at wholesale or retail level, or if sold directly to customers in the US, I would appreciate your view on my observations of the following:

1.    Person A manufactures a product outside the US and ships to its US subsidiary for sale as is: report the sale as a product sold in or into the US at the transfer price;

2.    Person A manufactures a product outside the US, receives an order from a US located customer and ships directly to that customer: report the sale of product sold into the US at the sales price;

3.    Person A manufactures a product outside the US and that entity receives an order from outside the US to ship directly into the US, report as a sale into the US;

4.    Person A manufactures a product outside the US and that entity receives an order form outside the US, product is shipped to foreign person who placed the order or to its customer: not reported no matter where ultimate customer is located, Person A not responsible for ultimate shipment of product it has sold and delivered outside US.