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Date
Rule
Form Item 5
Staff
Michael Verne
Response/Comments
Any shipments that originate from a U.S. establishment or are booked though a U.S. establishment would be considered U.S. operations. #4 the lease payout would not be U.S. operations.

Question

From: (redacted)
Sent: Wednesday, August 10, 2005 2:36 PM
To: Verne, B. Michael
Cc: Peay, Sandra M.
Subject: US revenue Question

For purposes of Section of the Form, and in connection with thefollowing fact pattern, what would be considered US revenue?

The company in question derives revenue primarily from the airshipping business.

1. Are shipments that originate in the US and are delivered outside of the USconsidered US operations?

2. Are shipments that originate outside the US and are delivered inside the USconsidered US operations?

3. Does it make a difference whether the order is placed in a US office or an overseas office?

4. If leases for airplanes take place outside the United States, if the lessee chooses to bring theplane into the US (it is totally up to the lessee where heflies the plane), would those lease payments be considered revenues fromoperations in the US?

If you could let me know it would be appreciated. If you'd like tocall me by phone, I can be reached at (redacted). Thank you.

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Informal interpretations provide guidance from previous staff interpretations on the applicability of the HSR rules to specific fact situations. You should not rely on them as a substitute for reading the Act and the Rules themselves. These materials do not, and are not intended to, constitute legal advice.

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