98 STAT. 986
PUBLIC LAW 98-369—JULY 18, 1984 corporation within the United States. Income described in paragraph (1) shall be treated as derived from sources within the United States.
26 USC 922.
Post, p. 991.
26 USC 923.
"SEC. 922. FSC DEFINED.
"(a) FSC DEFINED.—For purposes of this title, the term 'FSC means any corporation— "(1) which— "(A) was created or organized— "(i) under the laws of any foreign country which meets the requirements of section 927(e)(3), or "(ii) under the laws applicable to any possession of the United States, "(B) has no more than 25 shareholders at any time during the taxable year, "(C) does not have any preferred stock outstanding at any time during the taxable year, "(D) during the taxable year— "(i) maintains an office located outside the United ' States in a foreign country which meets the requirements of section 927(e)(3) or in any possession of the United States, "(ii) maintains a set of the permanent books of account (including invoices) of such corporation at such office, and "(iii) maintains at a location within the United States the records which such corporation is required to keep under section 6001, "(E) at all times during the taxable year, has a board of directors which includes at least one individual who is not a resident of the United States, and "(F) is not a member, at any time during the taxable year, of any controlled group of corporations of which a DISC is a member, and "(2) which has made an election (at the time and in the manner provided in section 927(f)(1)) which is in effect for the taxable year to be treated as a FSC. "(b) SMALL FSC DEFINED.—For purposes of this title, a FSC is a small FSC with respect to any taxable year if^ "(1) such corporation has made an election (at the time and in the manner provided in section 927(f)(1)) which is in effect for the taxable year to be treated as a small FSC, and "(2) such corporation is not a member, at any time during the taxable year, of a controlled group of corporations which includes a FSC unless such other FSC has also made an election under paragraph (1) which is in effect for such year. "SEC. 923. EXEMPT FOREIGN TRADE INCOME.
"(a) EXEMPT FOREIGN TRADE INCOME.—For purposes of this subpart— "(1) IN GENERAL.—The term 'exempt foreign trade income' means the aggregate amount of all foreign trade income of a FSC for the taxable year which is described in paragraph (2) or (3). "(2) INCOME DETERMINED WITHOUT REGARD TO ADMINISTRATIVE PRICING RULES.—In the case of any transaction to which para-
graph (3) does not apply, 32 percent of the foreign trade income
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