1109012 Informal Interpretation

Item 5
Kathryn Walsh

– Agree. KB agrees.


From: (Redacted)
Sent: Monday, September 05, 20117:55 PM
To: Walsh,Kathryn
Cc: Berg, Karen E.
Subject: RE: Item 5 revenues

Afollow up with a few more details that, in my view, do not change theconclusion.

Allproducts exported to the US by the foreign manufacturer are sold to non-UStrading companies outside the US on an FOB basis and title and risk of losspass to the trading company at the same time. The manufacturer, in some cases,knows the identity of the end-user when the trading company places an orderwith the manufacturer but the manufacturer has no information concerning thecontractual terms of sale( including the price) between the trading company andthe end user. The manufacturer has no direct contractual relationship on priceor quantity with an end user or distributor in the US. And, the manufacturerhas no control over the ~ales by the foreign trading company and is not advisedof the actual delivered price at which the trading company sells the product tothe end user or distributor in the US.

Attimes, the manufacturer may engage in discussions with the end user concerninga "reference" price--which refers to the price at which themanufacturer may sell to the trading company--but the rice at which the tradingcompany sells to the end user is determined solely by the trading company andthe end user without any involvement by the manufacturer.

Underthese expanded facts, it appears to me that these sales should not be reportedin Item 5 of the Form by the foreign manufacturer.

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