Domestic International Sales Corporation

Domestic International Sales Corporation in Global Commerce Policy

In this regard, domestic international sales corporation is: a corporate structure used in the United States until 1984, generally known as DISC. The principal benefit conferred by it was permission to defer payment of federal taxes on income from export profits until these had been distributed to their shareholders. DISCs covered mainly goods trade. The entries on trade policy are here. In services, they were more or less confined to activities related to construction. The entries on trade policy are here. In 1973, the European Economic Community notified the GATT of a dispute over the alleged subsidies DISCs enjoyed in steel exports. The panel found against the United States which then launched a retaliatory action on certain types of tax treatment available in the European Economic Community. The dispute was finally settled in 1982. The entries on trade policy are here. In 1984, the DISC legislation was replaced by the Foreign Sales Corporation (FSC) program, thought to be more in keeping with the GATT rules. The entries on trade policy are here. A WTO panel then found that some aspects it too were against the WTO rules.[1]

Domestic International Sales Corporationin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Domestic International Sales Corporation” entry (OAS)

See Also