0503006 Informal Interpretation

us-ftc-hsr-informal-interpretations-22e357f383687bbc796d585f6dc19e7a0503006 Informal InterpretationGuidance

Open source
Date
Rule
802.50
Staff
Michael Verne
Response/Comments
Do not include sales of US assets. Include intracompany transfers on a non duplicative basis.

Question

From: (redacted)
Sent: Monday, March 07, 2005 10:21 AM
To: Verne, B. Michael
Subject: Sales in or into theUS

Mike,

For acquisitionsof assets where both foreign an US assets are being acquired, do the new ruleschange the general principle of Interp. #238 in the ABA manual (2003 ed.) thatthe sales in or into the US attributable to the foreign assets are notaggregated to the US sales of the US assets for purposes of determining whetherthe limitation of Rule 802.50(a) is exceeded?

Assuming noaggregation is required, when determining the sales in or into the US of aforeign plant, do you include all sales of the foreign plant to a US plant thatis also being sold as part of the transaction (i.e., without netting out for intracompanytransfers and without eliminating products that are re-sold outside the US bythe US plant)?

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