Page:United States Statutes at Large Volume 83.djvu/753

 83 STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

" (B) parts or accessories designed primarily for use on or in connection with an article described in subparagraph (A). " (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with respect to articles sold after December 31, 1969. SEC. 932. CONSTRUCTIVE SALE PRICE. (a) DETERMINATION OF FAIR MARKET PRICE.—Section 4216(b) (relating to constructive sale price) is amended by adding at the end thereof the following new paragraphs: "(3)

72 Stat. 1279. 26 USC 421 e.

FAIR MARKET PRICE I N CASE OF CERTAIN ARTICLES.—Except

as provided in paragraph (4), for purposes of paragraph (1)(C), if— " (A) the manufacturer, producer, or importer of an article regularly sells such article to a distributor which is a member of the same affiliated group of corporations (as defined in section 1504(a)) as the manufacturer, producer, or importer, and " (B) such distributor regularly sells such article to one or more independent retailers, but does not regularly sell to wholesale distributors, the fair market price of such article shall be 90 percent of the lowest price for which such distributor regularly sells such article in arm's-length transactions to such independent retailers. The price determined under this paragraph shall not be adjusted for any exclusion (except for the tax imposed on such article) or readjustments under subsections (a) and (f) and under section 6416(b)(1). If both this paragraph and paragraph (4) apply with respect to an article, the fair market price for such article shall be the lower of the fair market price determined under this paragraph or paragraph (4). " (4)

725

FAIR MARKET PRICE I N CASE OF CERTAIN OTHER ARTICLES.—

For purposes of paragraph (1)(C), if— " (A) the manufacturer, producer, or importer of an article regularly sells (except for tax-free sales) only to a distributor which is a member of the same affiliated group of corporations (as defined in section 1504(a)) as the manufacturer, producer, or importer, " (B) the distributor regularly sells (except for tax-free sales) such article only to retailers, and " (C) the normal method of sales for such articles within the industry by manufacturers, producers, or importers is to sell such articles in arm's-length transactions to distributors, the fair market price for such article shall be the price at which such article is sold to retailers by the distributor, reduced by a percentage of such price equal to the percentage which (i) the difference between the price for which comparable articles are sold to wholesale distributors, in the ordinary course of trade, by manufacturers or producers thereof, and the price at which such wholesale distributors in arm's-length transactions sell such comparable articles to retailers, is of (ii) the price at which such wholesale distributors in arm's-length transactions sell such comparable articles to retailers. The price determined under this paragraph shall not be adjusted for any exclusion (except for the tax imposed on such article) or readjustment under subsections (a) and (f) and under section 6416(b)(1). " (b) EFFECTIVE DATE.—The amendment made by subs'ection (a) shall apply with respect to articles sold after December 31, 1969.

31-100 O - 70 - 48

SSA Stat. 359.

asAstat.joi;

72 Stat. 130(5.

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