0503006 Informal Interpretation

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)?