2101004 Informal Interpretation

From: Walsh, Kathryn E.

Sent: Tuesday, January 26, 2021 9:58:37 AM (UTC-05:00) Eastern Time (US & Canada)

To: [Redacted]

Cc: [Redacted]

Subject: FW: Item 5 - Service Revenue

We agree that revenues from contracts negotiated and executed outside the US do not get reported in Item 5, unless they are booked in the US.

From: [Redacted]

Sent: Thursday, January 21, 2021 4:35:57 PM (UTC-05:00) Eastern Time (US & Canada)

To: [Redacted]

Subject: Item 5 - Service Revenue

Dear PNO,

We represent a foreign corporation (Company A) that owns a fleet of shipping vessels that it charters to shipping line customers located both in the U.S. and outside of the U.S. The ships are all foreign flagged. In some cases Company A provides a crew to operate the vessels being chartered. Company A has no establishments located in the U.S. and substantially all of its assets are located outside of the U.S. Negotiation and execution of the charter contracts, depending on the customer, may occur inside the U.S. or outside of the U.S. Payments to Company A in exchange for the charters may be made to an account in a bank located in the U.S. Can you advise as to whether Company A is required to report revenues in Item 5.