PUBLIC LAW 106-519—NOV. 15, 2000 114 STAT. 2429 "(D) a partnership or other pass-thru entity all of the partners or owners of which are described in subparagraph (A), (B), or (C). Except as otherwise provided by the Secretary, tiered partnerships or pass-thru entities shall be treated as described in subparagraph (D) if each of the partnerships or entities is directly or indirectly wholly owned by persons described in subparagraph (A), (B), or (C). "(3) EXCLUDED PROPERTY.— The term 'qualifying foreign trade property' shall not include— "(A) property leased or rented by the taxpayer for use by any related person, "(B) patents, inventions, models, designs, formulas, or processes whether or not patented, copyrights (other than films, tapes, records, or similar reproductions, and other than computer software (whether or not patented), for commercial or home use), goodwill, trademarks, trade brands, franchises, or other like property, "(C) oil or gas (or any primary product thereof), "(D) products the transfer of which is prohibited or curtailed to effectuate the policy set forth m paragraph (2)(C) of section 3 of Public Law 96-72, or "(E) any unprocessed timber which is a softwood. For purposes of subparagraph (E), the term 'unprocessed timber' means any log, cant, or similar form of timber. "(4) PROPERTY IN SHORT SUPPLY. —If the President determines that the supply of any property described in paragraph (1) is insufficient to meet the requirements of the domestic economy, the President may by Executive order designate the property as in short supply. Any property so designated shall not be treated as (qualifying foreign trade property during the period beginning with the date specified in the Executive order and ending with the date specified in an Executive order setting forth the President's determination that the property is no longer in short supply. "(b) OTHER DEFINITIONS AND RULES. —For purposes of this subpart— "(1) TRANSACTION.— "(A) IN GENERAL. —The term 'transaction' means— "(i) any sale, exchange, or other disposition, "(ii) any lease or rental, and "(iii) any fiimishing of services. "(B) GROUPING OF TRANSACTIONS. —TO the extent provided in regulations, any provision of this subpart which, but for this subparagraph, would be applied on a transaction-by-transaction basis may be applied by the taxpayer on the basis of groups of transactions based on product lines or recognized industry or trade usage. Such regulations may permit different groupings for different purposes. "(2) UNITED STATES DEFINED. —The term 'United States' includes the Commonwealth of Puerto Rico. The preceding sentence shall not apply for purposes of determining whether a corporation is a domestic corporation. "(3) RELATED PERSON. —A person shall be related to another person if such persons are treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414, except that determinations under subsections
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