76 STAT.]
PUHJC
LAW 87-834-OCT. 16, 1962
" (B) the amount of such investments at the close of the preceding taxable year. "(3)
^ a
DECREASE I N INVESTMENTS I N EXPORT TRADE ASSETS.—For
purposes of subsection (b), the amount of decrease in investments m export trade assets of any controlled foreign corporation for any taxable year is the amount by which— " (A) the amount of such investments at the close of the preceding taxable year (reduced by an amount equal to the amount of net loss sustained during the taxable year with respect to export trade assets), exceeds " (B) the amount of such investments at the close of the taxable year. "(4) SPECIAL RULE.—A United States shareholder of an export trade corporation may, under regulations prescribed by the Secretary or his delegate, make the determinations under paragraphs (2) and (3) as of the close of the 75th day after the close of the years referred to in such paragraphs in lieu of on the last day of such years. A United States shareholder of an export trade corporation may, under regulations prescribed by the Secretary or his delegate, make the determinations under paragraphs (2) and (3) with respect to export trade assets described in section 971 (c)(3) as of the close of the years following the years referred to in such paragraphs, or as of the close of such longer period of time as such regulations may permit, in lieu of on the last'day of such years and in lieu of on the day prescribed in the preceding sentence. Any election under this paragraph made with respect to any taxable year shall apply to such year and to all succeeding taxable years unless the Secretary or his delegate consents to the revocation of such election.
"SEC. 971. DEFINITIONS. " (a) EXPORT TRADE CORPORATIONS.—For
purposes of this subpart,
the term 'export trade corporation' means— "(1) I n GENERAL.—A controlled foreign corporation (as defined in section 957) which satisfies the following conditions: \ " (A) 90 percent or more of the gross income of such cor^ poration for the 3-year period immediately preceding the close of the taxable year (or such part of such period subsequent to the effective date of this subpart during which the corporation was in existence) was derived from sources without the United States, and " (B) 75 percent or more of the gross income of such corporation for such period constituted gross income in respect of which such corporation derived export trade income. "" " (2) SPECIAL RULE.—If 50 percent or more of the gross income of a controlled for e i ^ corporation in the period specified in subsection (a)(1)(A) is gross income in respect of which such corporation derived export trade income in respect of agricultural products grown in the United States, it may qualify as an export trade corporation although it does not meet the requirements of subsection (a)(1)(B). " (b) EXPORT TRADE INCOME.—For the purposes of this subpart, the term 'export trade income' means net income from— ".(1) the sale to an unrelated person for use, consumption, or disposition outside the United States of export property (as defined in subsection (e)), or from commissions, fees, compensation, or other income from the performance of commercial, industrial, financial, technical, scientific, managerial, engineering, architectural, skilled, or other services in respect of such sales or
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