- 95 -
Regs. That is not the role of an expert, see Marx & Co. v.
Diners' Club Inc., 550 F.2d 505, 508-511 (2d Cir. 1977); Garnac
Grain Co. v. Commissioner, 95 T.C. at 26-27, and we do not rely
on Dr. Philpott's definition of the term "minor assembly" in
making our findings and reaching our conclusions herein.
Based on our review of the entire record before us, we find
that the assembly operations conducted by B&L Ireland and by B&L
Hong Kong were not limited to packaging, repackaging, labeling,
or minor assembly within the meaning of the third sentence of
section 1.954-3(a)(4)(iii), Income Tax Regs.
Conclusion41
Based on our review of the entire record in the present
cases, we find that the sunglasses assembled by B&L Ireland and
by B&L Hong Kong were manufactured in Ireland and Hong Kong,
respectively, for purposes of section 954(d)(1) and that there-
fore the income from the sale of those sunglasses for each of the
years at issue does not constitute foreign base company sales
income as defined in that section. Accordingly, such income is
not includible in petitioners' income under section 951(a)(1).
B&L Hong Kong--Section 954(b)(4)
In addition to arguing that the sunglass assembly operations
41 Although we do not address herein every argument advanced by
respondent under sec. 954(d)(1), we have considered all of her
arguments and find them to be without merit.
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