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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.

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