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related businesses, including, but not limited to, petitioner,
the Canelos growers, Transportes, Empaque ABC, and SUNCO.
Potential Comparable Transactions
The Otros Growers
Petitioner distributed grapes, European cucumbers, squash,
and melons for the otros growers. During the years in issue,
produce from the otros growers that petitioner distributed did
not include tomatoes. Petitioner charged them a commission rate
of the greater of 55 cents per box or 10 percent of sales for
services including border crossing, loading and unloading,
warehousing, marketing, collecting of sales proceeds, liquidating
the accounts, and distributing the sales proceeds. Petitioner
retained 55 cents per box of the commission fees collected and
gave any remaining portion of the fees to the Canelos growers.
Petitioner also provided technical assistance and advances for
seed, boxes, freight, customs brokerage expenses, and other
expenses for which the otros growers reimbursed petitioner.
During the years in issue, petitioner sometimes made money
advances, described as "adelantes" on petitioner's books, to the
otros growers. The funds for the adelantes sometimes came from
funds that SCP lent to petitioner for advances for the SCP deal.
Petitioner generally made final liquidations to and paid all
otros growers 30 to 40 days after the final sale of their
produce.
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