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furnished by DPC expressly involved operations within the United
States, and a third implies as much. FIL’s shift away from U.S.
markets thus indicates that these functions were no longer being
performed.
The specific tasks of “Market research in the United States
for the product manufactured by Flocktex” and “Warehousing of the
products in the United States” would have become largely
unnecessary once FIL ceased marketing or selling any significant
portion of its output in the United States. Further, given that
DPC was a domestic corporation with a domestic market and sales
force, “Sales promotion services * * * through DEITSCH salesmen”
implicitly contemplates U.S. activities which would not have been
pursued after the shift to European markets. Of the remaining
items, we find it reasonable that after approximately 15 years in
business, FIL in 1990 would have had a well-established network
of suppliers, such that “Counsel regarding the economic purchase
of raw materials” would have been minimal at best.
The final task set forth in the 1980 agreement is “Advice
and recommendation concerning the future development of the
manufacture, production and marketing,” and we have precluded
petitioners from arguing that no consulting services were
performed. However, to the extent that advice continued to flow
between petitioners and FIL, we believe testimony revealing the
mode of operation within the Deitsch entities shows that such
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