PUBLIC LAW 106-519—NOV. 15, 2000
114 STAT. 2429
"(D) a partnership or other pass-thru entity all of the
partners or owners of which are described in subparagraph
(A), (B), or (C).
Except as otherwise provided by the Secretary, tiered partnerships or pass-thru entities shall be treated as described in
subparagraph (D) if each of the partnerships or entities is
directly or indirectly wholly owned by persons described in
subparagraph (A), (B), or (C).
"(3) EXCLUDED PROPERTY.— The term 'qualifying foreign
trade property' shall not include—
"(A) property leased or rented by the taxpayer for
use by any related person,
"(B) patents, inventions, models, designs, formulas, or
processes whether or not patented, copyrights (other than
films, tapes, records, or similar reproductions, and other
than computer software (whether or not patented), for
commercial or home use), goodwill, trademarks, trade
brands, franchises, or other like property,
"(C) oil or gas (or any primary product thereof),
"(D) products the transfer of which is prohibited or
curtailed to effectuate the policy set forth m paragraph
(2)(C) of section 3 of Public Law 96-72, or
"(E) any unprocessed timber which is a softwood.
For purposes of subparagraph (E), the term 'unprocessed
timber' means any log, cant, or similar form of timber.
"(4) PROPERTY IN SHORT SUPPLY. —If the President determines that the supply of any property described in paragraph
(1) is insufficient to meet the requirements of the domestic
economy, the President may by Executive order designate the
property as in short supply. Any property so designated shall
not be treated as (qualifying foreign trade property during the
period beginning with the date specified in the Executive order
and ending with the date specified in an Executive order setting
forth the President's determination that the property is no
longer in short supply.
"(b) OTHER DEFINITIONS AND RULES. —For purposes of this
subpart—
"(1) TRANSACTION.—
"(A) IN GENERAL. —The term 'transaction' means—
"(i) any sale, exchange, or other disposition,
"(ii) any lease or rental, and
"(iii) any fiimishing of services.
"(B) GROUPING OF TRANSACTIONS. —TO the extent provided in regulations, any provision of this subpart which,
but for this subparagraph, would be applied on a transaction-by-transaction basis may be applied by the taxpayer
on the basis of groups of transactions based on product
lines or recognized industry or trade usage. Such regulations may permit different groupings for different purposes.
"(2) UNITED STATES DEFINED. —The term 'United States'
includes the Commonwealth of Puerto Rico. The preceding sentence shall not apply for purposes of determining whether a
corporation is a domestic corporation.
"(3) RELATED PERSON. —A person shall be related to another
person if such persons are treated as a single employer under
subsection (a) or (b) of section 52 or subsection (m) or (o)
of section 414, except that determinations under subsections
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