78TH CONG., 2D SESS.--CH. 63-FEB. 25 ,1944 "(3) In the case of a contractor or subcontractor who produces or Cost allowan, s t acquires the product of a mine, oil or gas well, or other mineral or natural deposit, or timber, and processes, refines, or treats such a product to and beyond the first form or state suitable for industrial use, or who produces or acquires an agricultural product and processes, refines, or treats such a product to and beyond the first form or state in which it is customarily sold or in which it has an established market, the Board shall prescribe such regulations as may be necessary to give such contractor or subcontractor a cost allowance substantially equivalent to the amount which would have been realized by such contractor or subcontractor if he had sold such product at such first form or state. Notwithstanding any other provisions of this section there shall be excluded from consideration in determining whether or not a contractor or subcontractor has received or accrued excessive profits that portion of the profits, derived from contracts with the Departments and subcontracts, attributable to the increment in value of the excess inventory. For the purposes of this paragraph the term Exe ss venbry 0' 'excess inventory' means inventory of products, hereinbefore described in this paragraph, acquired by the contractor or subcontractor in the form or at the state in which contracts for such products on hand or on contract would be exempted from this section by subsection (i) Antep.Ua (1) (B) or (C), which is in excess of the inventory reasonably neces- sary to fulfill existing contracts or orders. That portion of the profits, derived from contracts with the Departments and subcon- tracts, attributable to the increment in value of the excess inventory, and the method of excluding such portion of profits from considera- tion in determining whether or not the contractor or subcontractor has received or accrued excessive profits, shall be determined in accord- ance with regulations prescribed by the Board. In the case of a renegotiation with respect to a fiscal year ending prior to July 1,1943, the portion of the profits, derived from contracts with the Depart- ments and subcontracts, attributable to the increment in value of the excess inventory shall (to the extent such portion does not exceed the excessive profits determined) be credited or refunded to the contractor or subcontractor, and in case the determination of excessive profits was made prior to the date of the enactment of the Revenue Act of 1943, such credit or refund shall be made notwithstanding such deter- mination is embodied in an agreement with the contractor or sub- contractor, but in either case such credit or refund shall be made only if the contractor or subcontractor, within ninety days after the date of the enactment of the Revenue Act of 1943, files a claim therefor with the Secretary concerned. Contr btto "(4) The Board is authorized, in its discretion, to exempt from some dscretiowr eb p or all of the provisions of this section-- tion "(A) any contract or subcontract to be performed outside of the territorial limits of the continental United States or in Alaska; "(B) any contracts or subcontracts under which, in the opinion of the Board, the profits can be determined with reasonable cer- tainty when the contract price is established, such as certain classes of agreements for personal services, for the purchase of real property, perishable goods, or commodities the minimum price for the sale of which has been fixed by a public regulatory body, of leases and license agreements, and of agreements where the period of performance under such contract or subcontract will not be in excess of thirty days; "(C) any contract or subcontract or performance thereunder during a specified period or periods, if in the opinion of the Board, the provisions of the contract are otherwise adequate to prevent excessive profits; 89 58 STAT.]
�
