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TITLE 26-INTERNAL REVENUE CODE lation or maintenance of such export proper- ty; (2) commissions, fees, compensation, oi other income from commercial, industrial, fi- nancial, technical, scientific, managerial, engi- neering, architectural, skilled, or other ser- vices performed in connection with the use by an unrelated person outside the United States of patents, copyrights, secret processes and formulas, goodwill, trademarks, trade brands, franchises, and other like property acquired or developed and owned by the manufacturer, producer, grower, or extractor of export prop- erty in respect of which the export trade cor- poration earns export trade income under paragraph (1); (3) commissions, fees, rentals, or other com- pensation or income attributable to the use of export property by an unrelated person or at- tributable to the use of export property in the rendition of technical, scientific, or engi- neering services to an unrelated person; and (4) interest from export trade assets de- scribed in subsection (c)(4). For purposes of paragraph (3), if a controlled foreign corporation receives income from an unrelated person attributable to the use of export property in the rendition of services to such unrelated person together with income at- tributable to the rendition of other services to such unrelated person, including personal ser- vices, the amount of such aggregate income which shall be considered to be attributable to the use of the export property shall (if such amount cannot be established by reference to transactions between unrelated persons) be that part of such aggregate income which the cost of the export property consumed in the rendition of such services (including a reason- able allowance for depreciation) bears to the total cost and expenses attributable to such ag- gregate income. (c) Export trade assets For purposes of this subpart, the term "export trade assets" means- (1) working capital reasonably necessary for the production of export trade income, (2) inventory of export property held for use, consumption, or disposition outside the United States, (3) facilities located outside the United States for the storage, handling, transporta- tion, packaging, or servicing of export proper- ty, and (4) evidences of indebtedness executed by persons, other than related persons, in con- nection with payment for purchases of export property for use, consumption, or disposition outside the United States, or in comection with the payment for services described in subsections (b)(2) and (3). (d) Export promotion expenses For purposes of this subpart, the term "export promotion expenses" means the follow- ing expenses paid or incurred in the receipt or production of export trade income- (1) a reasonable allowance for salaries or other compensation, for personal services ac- tually rendered for such purpose, (2) rentals or other payments for the use of property actually used for such purpose, (3) a reasonable allowance for the exhaus- tion, wear and tear, or obsolescence of proper- ty actually used for such purpose, and (4) any other ordinary and necessary ex- penses of the corporation to the extent rea- sonably allocable to the receipt or production of export trade income. No expense incurred within the United States shall be treated as an export promotion ex- pense within the meaning of the preceding sen- tence, unless at least 90 percent of each catego- ry of expenses described in such sentence is in- curred outside the United States. (e) Export property For purposes of this subpart, the term "export property" means any property or any interest in property manufactured, produced, grown, or extracted in the United States. (f) Unrelated person For purposes of this subpart, the term "unre- lated person" means a person other than a re- lated person as defined in section 954(d)(3). (Added Pub. L. 87-834, § 12(a), Oct. 16, 1962, 76 Stat. 1029, and amended Pub. L. 92-178, title V, § 505(c), Dec. 10, 1971, 85 Stat. 553.) AMENDMENTS 1971-Subsec. (a)(3). Pub. L. 92-178 added par. (3). SECTION REniu Da TO IN OTHER SECTIONS This section is referred to in section 970 of this title. [§972. Repealed. Pub. L. 94-455, title XiX, § 1901(a)(120), Oct. 4, 1976, 90 Stat. 17841 Section, Pub. L. 87-834, § 12(a), Oct. 16, 1962, 76 Stat. 1031, related to the consolidation of a group of export trade corporations for treatment as a single controlled foreign corporation for tax purposes. [§ 981. Repealed. Pub. L. 94-455, title X, § 1012(b)(2), Oct. 4, 1976, 90 Stat. 1614] Section, Pub. L. 89-809, title I, § 105(e)(1), Nov. 13, 1966, 80 Stat. 1565, related to the income of certain nonresident United States citizens subject to foreign community property laws. PART IV-DOMESTIC INTERNATIONAL SALES CORPORATIONS Subpart Sec. A. Treatment of qualifying corporations.... 991 B. Treatment of distributions to share- holders ............................................................. 995 AMENDMENTs 1971-Pub. L. 92-178, title V, § 501, Dec. 10, 1971, 85 Stat. 535, added Part IV to Subchapter N of Chapter 1. SUBPART A-TAsmEwrr OF QUALIFYING CORPORATIONS Sec. 991. Taxation of a domestic international sales corpo. ration. 992. Requirements of a domestic international sales corporation. 993. Definitions and special rules.' 994. Inter-company pricing rules. *Sections editorially added for convenience of reader. 'So in original. Section catchline does not conform to analysis. § 972 Page 618