1112006 Informal Interpretation

Date:
Rule:
Form Item 5
Staff:
Michael Verne
Response/Comments:

  – Agree. K Berg concurs/

Question

From:

(Redacted)

Sent:

Monday, December 19, 2011 8:48 AM

To:

Verne, B. Michael

Subject:

FW: item 5 foreign sales

Mike, please review thebelow 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 FRnotice, that item 5 now requires foreign sales if manufactured outside the USand sold in the US at wholesale or retail level, or if sold directly to customersin the US, I would appreciate your view on my observations of the following:

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

2. Person A manufactures a productoutside the US, receives an order from a US located customer and ships directlyto that customer: report the sale of product sold into the US at the salesprice;

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

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

About Informal Interpretations

Informal interpretations provide guidance from previous staff interpretations on the applicability of the HSR rules to specific fact situations. You should not rely on them as a substitute for reading the Act and the Rules themselves. These materials do not, and are not intended to, constitute legal advice.

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