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tomatoes in the SCP deal was not in writing. SCP received the
same profit or loss split whether petitioner or Apache sold the
Canelos growers' produce.
For the years 1988 through 1992, the Canelos growers'
business represented between 70 and 90 percent of Apache's sales.
Apache performed the same major distribution functions for the
Canelos growers that petitioner performed for them. Apache did
not provide financing for the Canelos growers. Apache used
SUNCO's facility for crossing the border and paid SUNCO directly
for that use. Apache did not advance money, seed, or boxes to
its customers. Unlike petitioner, Apache purchased substantial
amounts of produce and resold it in the years in issue.
Petitioner handled the liquidation and transfer of funds to the
Canelos growers for Apache. Apache occasionally used the Canelos
growers' Mexican loading facilities.
In general, Apache charged the Canelos growers a commission
rate of 5 percent of gross sales and a handling charge of 15
cents per box. In addition to the handling charge of 15 cents
per box, Apache's commission rate for its other customers varied
between 7 and 12 percent, depending on the services rendered.
Apache put the proceeds from the Canelos growers' sales in
Apache's bank account. It kept those proceeds until petitioner
or Mr. Canelos asked for the funds to be transferred to
petitioner or distributed to Mr. Canelos. Those transfers
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