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ard commercial service, is sufficiently like a

under review of a like service and the standard
standard commercial service to warrant sim commercial service selected for comparison must
ilar treatment for renegotiation purposes. The be nonrenegotiable. Sales of the contractor in
exemption of such "like services" is not self-ex the preceding fiscal year are not relevant to this
ecuting; it may be obtained only by application computation and shall not be included therein.
to the Board, upon a showing that all of the (2) In computing nonrenegotiable receipts
conditions prescribed in section 106(e) (4) (C) or accruals for the purposes of subparagraph
exist. If any of such conditions is not present, (1) of this paragraph, the receipts or accruals
the service is not reasonably comparable with a for which exemption is claimed in the Applica-
standard commercial service, and the exemption

tion for Commercial Exemption shall be con-
does not apply. The necessary conditions are sidered renegotiable.
explained in the succeeding paragraphs of this 1467.31 Application for Commercial Ex-
section.

emption.-(a) Form. No printed form is
(b) Limitations. (1) This exemption, if prescribed for the filing of an application for
granted, is effective only with respect to the exemption under section 106(e) (3) of the act.
fiscal year under review. If exemption is de However, the information and data prescribed
sired for any other year, separate application in paragraph (b) of this section will be known
must be made therefor to the Board.

as the “Application for Commercial Exemp-
(2) The standard commercial service se tion". This application shall be furnished in
lected for comparison must be one performed by writing, shall be entitled “Application for Com-
the contractor itself in the fiscal year under mercial Exemption", and shall consist of
review. The requirements of the statute cannot numbered paragraphs corresponding with the
be satisfied by comparing like services wit numbers in paragraph (c) of this section. At-
standard commercial services performed by

tention is called to the fact that the submission
other contractors in the fiscal year under review, of this application is subject to the penalty pro-
or with standard commercial services per visions of section 105(e) (1) of the act.
formed by the contractor or by other contrac (b) Use.-Except as provided in § 1467.22
tors in any fiscal year other than the fiscal year (e) (1), the Application for Commercial Ex-
under review,

emption shall be filed by every contractor who (3) No standard commercial service may be claims exemption under section 106(e) of the used under this section as a basis to exempt act for any articles or services, except standard more than one like service; exemption is not

commercial articles (see 8 1467.22(b)). A sepaavailable under the act for two or more services rate application must be filed by every conon the ground that each is reasonably compar

tractor claiming the exemption; affiliated or able with the same standard commercial service. related contractors may not file consolidated

(c) Qualitative requirements. Section 106 applications. (e) (4) (F)(i) of the act provides that a like (c) Contents.---The Application for Comservice must be of the same or similar kind,

mercial Exemption shall contain the informust be performed with same or similar ma mation and data prescribed in the following

instructions: terials, and must have the same or a similar result as a standard commercial service from (1) Description of articles or services.-Set the performance of which the contractor has re forth a description of the articles or services ceipts or accruals in the fiscal year under review. claimed to be exempt, including representative In determining whether two services meet these catalogs or brochures, if available. State clearly requirements, the Board will consider both whether exemption is being claimed for (i) like their generic and their specific characteristics.

articles.i.e., articles which are identical in These requirements may be satisfied without every material respect with a standard comthe two services necessarily involving identical

mercial article or articles; (ii) articles in a operations.

standard commercial class or classes of articles; (d) The 35 percent test.---(1) Section 106(e)

(iii) standard commercial services; or (iv) like (4) (F) (ii) of the act provides that at least 35

services

i.e., services which are reasonably percent of the aggregate sales in the fiscal year comparable with a standard commercial service

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Se 1

Standard commercial class of articles

Total
sales

Sales claimed

to be

sales

Amount

Percent
of total

(3)

or services. If it is desired in a single application in the class which either is customarily main-
to claim exemption for any like articles, stand tained in stock by the contractor or is offered
ard commercial services, or like services, as well for sale in accordance with a price schedule
as for articles in one or more standard commer regularly maintained by the contractor; set
cial classes of articles, a statement in substan forth information sufficient to establish that all
tially the following form must be included: of the articles in the class are of the same kind,
"The contractor hereby consents and agrees that are manufactured of the same or substitute ma-
the 6-month period prescribed in section 106(e) terials, and are sold at reasonably comparable
(3) (B) (ii) of the act shall apply with respect prices; and set forth a schedule of sales showing
to all of the articles (or: all of the articles and the following with respect to the fiscal year
services) for which exemption is claimed in this under review:
application."
(2) Like articles. With respect to each like

Nonrenegotiable article described separately in subparagraph

exempt (1) of this paragraph, set forth a description of the standard commercial article with which such like article is claimed to be identical in every material respect; set forth information

(4). sufficient to establish that both of such articles are of the same kind, are manufactured of the

Sales in the above schedule are to be detersame or substitute materials and are sold at

mined by any of the sales segregation methreasonably comparable prices; and set forth a schedule of sales showing the following with

ods acceptable, for purposes of renegotiation,

in accordance with Part 1456 of this subchaprespect to the fiscal year under review:

ter. If the new durable productive equipment

exemption is applicable (see Part 1454 of this Renegotiable

subchapter), the sales listed above should be

stated before application of such exemption. compared

(4) Standard commercial services.--With respect to each standard commercial service described in subparagraph (1) of this para

graph, state the total amount of sales of such (4).

service in the fiscal year under review, and

the amount and percent of the non-renegotiaSales in the above schedule are to be determined

ble portion of such sales. Sales for this purby any of the sales segregation methods ac

pose are to be determined by any of the sales ceptable, for purposes of renegotiation, in ac

segregation methods acceptable, for purposes cordance with Part 1456 of this subchapter. If

of renegotiation, in accordance with Part 1456 the new durable productive equipment exemp

of this subchapter. tion is applicable (see Part 1454 of this sub

(5) Like services. With respect to any chapter), the sales listed above should be stated

like service described in subparagraph (1) before application of such exemption.

of this paragraph, describe the standard com(3) Standard commercial classes of articles. mercial service with which such like service -With respect to any standard commercial

is claimed to be reasonably comparable; set class of article described in subparagraph (1) forth information sufficient to establish that of this paragraph, identify at least one article both of such services are of the same or a

Nonrenegotiable
Total

sales (like and Like Standard sales

sales

standard article commer

combined) claimed cial article to be

Perexempt

Like Stand- Like Stand Amount cent
ard
ard

of
total

(1). (2). (3)

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Sec.

to whom this sentence applies may, if he 80 elects, 1470.1 Scope of part.

file with the Board for such fiscal year a financial state1470.2 Statutory provision.

ment setting forth such information as the Board may 1470.3 Hling of financial statement.

by regulations prescribe as necessary to carry out this

title. The Board may require any person who holds FORMS AND INSTRUCTIONS

contracts or subcontracts to which the provisions of 1470.90 Standard Form of Contractor's Report.

this title are applicable (whether or not such person 1470.91 Statement of Non-Applicability of the Rene

has filed a financial statement under this paragraph) gotiation Act of 1951, as amended.

to furnish any information, records, or data which are 1470.92 Forms and instructions for filing renegotia

determined by the Board to be necessary to carry out tion reports.

this title and which the Board specifically requests AUTHORITY : Sections 1470.1 to 1470.92 issued under such person to furnish. Such information, records, or section 109, Pub. Law 9, 82d Cong. Interpret or apply data may not be required with respect to any fiscal section 105, Pub. Law 9, 82d Cong.

year after the date on which all liabilities of such

persons for excessive profits received or accrued dur1470.1 Scope of part. This part deals with

ing such fiscal year are discharged. Any person who the filing of financial statements required of willfully fails or refuses to furnish any statement, incontractors or elected to be filed by contractors, formation, records, or data required of him under and other information.

this subsection, or who knowingly furnishes any

statement, information, records, or data pursuant to 1470.2 Statutory provisionSection 105

this subsection containing information which is false (e)(1) of the act provides as follows:

or misleading in any material respect, shall, upon conFurnishing of financial statements, etc. Every per

viction thereof, be punished by a fine of not more thun son who holds contracts or subcontracts, to which the

$10,000 or imprisonment for not more than one year, or provisions of this title are applicable, shall, in such

both. [Matter in brackets deleted by Pub. Law 870, 84th form and detail as the Board may by regulations pre

Cong., approved August 1, 1956, which also 'added scribe, file with the Board, on or before the first day of

matter in italics, applicable only to fiscal years ending the fifth calendar month following the close of his fiscal

after June 30, 1956.] year, a financial statement setting forth such informa

1470.3 Filing of financial statement.(a) tion as the Board may by regulations prescribe as

When renegotiable sales exceed statutory necessary to carry out this title. [In addition to the

"floor.". In accordance with the requirements statement required under the preceding sentence, every such person shall at such time or times and in of the first sentence of section 105(e) (1) of the such form and detail as the Board may by regulations act, the “Standard Form of Contractor's Represcribe, furnish the Board any information, records, port” (as set forth in 8 1470.90) is hereby preor data which are determined by the Board to be

scribed as the form of financial statement necessary to carry out this title. Any person who will

required to be filed by every person who holds fully fails or refuses to furnish any statement, information, records, or data required of him under this renegotiable prime contracts or subcontracts subsection, or who knowingly furnishes any such state when the aggregate renegotiable receipts or acment, information, records, or data containing infor cruals of such person and all other persons mation which is false or misleading in any material

under control of or controlling or under comrespect, shall, upon conviction thereof, be punished by

mon control with such person exceed the applia fine of not more than $10,000 or imprisonment for not more than one year, or both.] The preceding sentence

cable minimum amount for renegotiation shall not apply to any such person with respct to a fiscal prescribed in section 105(f) (1) or (2) of the year if the aggregate of the amounts received or ac act. This includes brokers and manufacturers' crued under such contracts and subcontracts during

agents and others whose principal business falls such fiscal year by him, and all persons under control

within the definition of subcontracts set forth of or controlling or under common control with him, is not more than the applicable amount prescribed in sub

in section 103(g)(3) of the act. (Next two section (f) (1) or (2) of this section; but any person

sentences removed to Appendix.) For fiscal

2-16-18

years ending after June 30, 1956, the Standard is required to file a financial statement for any Form of Contractor's Report is composed of RB such fiscal year shall file the Standard Form of Form 1 only. See $ 1470.90(c). No special form Contractor's Report (RB Form 1 as set forth is prescribed for construction contractors, ar in § 1470.90(c)) on or before the first day of chitects, and engineers. Such contractors shall the fifth calendar month following the close of adapt the Standard Form of Contractor's Re such fiscal year, whether or not any specific report to their particular needs.

quest for filing has been made. Any contractor (b) When renegotiable sales are less than who is entitled to file the Statement of Non-Apstatutory "floor."-In accordance with the re plicability for any such fiscal year, and who quirements of the first sentence of section 105 elects so to do, shall file such statement on or be(e) (1) of the act, the “Statement of Non fore the first day of the fifth calendar month Applicability of the Renegotiation Act of 1951, following the close of such fiscal year. as amended,” is hereby prescribed as the form (3) When time to file income tax return has of financial statement for use by any person who been extended.-Notwithstanding any other holds renegotiable prime contracts or subcon provisions of this paragraph (d), if a contractracts when the aggregate renegotiable receipts tor is required to file the Standard Form of or accruals of such person and all other persons Contractor's Report for a fiscal year, and the under control of or controlling or under com time of such contractor to file a Federal income mon control with such person do not exceed the tax return for such fiscal year shall have been applicable minimum amount for renegotiation extended by the Internal Revenue Service, such prescribed in section 105(f) (1) or (2) of the contractor shall not be required to file the act. (Next sentence removed to Appendix.) As Standard Form of Contractor's Report with reset forth in § 1470.91 (b) of this subchapter, this spect to such fiscal year until fifteen (15) days Statement may be filed by any such person, at after the extended due date fixed in the docuhis election, with respect to any fiscal year end ment evidencing such extension of time, proing after June 30, 1956.

vided that a copy of such document is filed with (c) Sufficiency of contents.-The Standard

the Board on or before the date when, but for Form of Contractor's Report is required to be the provisions of this sentence, the contractor completed in accordance with the instructions

would have been required to file the Standard therefor. However, if any of the information Form of Contractor's Report with respect to called for by the Standard Form of Contrac

such fiscal year. Unless the Federal income tax tor's Report for a fiscal year has been furnished

return of the contractor for such fiscal year previously by the contractor to the Board, the

shall have been filed before the extended due contractor may complete the Standard Form of

date fixed in such document, a Standard Form Contractor's Report by incorporating therein, of Contractor's Report for such fiscal year filed by reference, the information so furnished and

before such extended due date may be returned making a specific statement of the time and

to the contractor, and if so returned will not place of such filing. The Statement of Non-Ap

constitute the filing of a financial statement unplicability, when it is to be filed, should be com der section 105(e) of the act and will not completed in accordance with the instructions there

mence the running of the 1-year period of limifor.

tations prescribed in section 105(c) of the act. (d) Time for filing.-(1) Fiscal years end (e) Filing rules.--General rules applicable ing on or before June 30, 1956.-Removed to

to the time, place, and manner of filing the Appendix.

Standard Form of Contractor's Report and the (2) Fiscal year ending after June 30, 1956. Statement of Non-Applicability are set forth in Except as otherwise provided in $ 1467.31 (d) section 1472.6 of this subchapter. of this subchapter with respect to fiscal years (f) Availability of forms. Copies of the ending after June 30, 1956, every contractor who Standard Form of Contractor's Report and

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case.

Part 1471 Assignment of Contractors for Renegotiation
Sec.

generally be redesignated in accordance there-
1471.1 When assignment is made.

with upon request of the Regional Board if not
1471.2 How assignment is made.

already concluded by clearance notice, agree-
1471.3 Reserved.
1471.4 Reassignment to Board.

ment or order, and if such redesignation is other

wise expedient. The Board has delegated to the
AUTHORITY: Sections 1471.1 to 1471.4 issued under
section 109, Pub. Law 9, 82d Cong. Interpret or apply Regional Boards authority (1) in Class A
section 107, Pub. Law 9, 82d Cong.

cases, to make recommended determinations of
1471.1 When assignment is made.--After excessive profits to the Board for final deter-
receipt of a Standard Form of Contractor's Re-

mination by the Board, and (2) in Class B cases, port from a contractor, the Board will assign the

to make final determinations of excessive profits. case to a Regional Board for renegotiation if it (See page vii of this manual.) determines that further proceedings in the mat (c) The Regional Board to which the case is ter are warranted. No assignment will be made assigned will notify the contractor of the aswhen the Board can readily decide on the basis signment and will also advise the contractor of the information contained in the Standard whether the case is a Class A case or a Class B Form of Contractor's Report that the contractor has not realized excessive profits for the fiscal (d) Except in cases governed by paragraph year and that no purpose would be served by (e) of this section, with respect to contractors making an assignment to a Regional Board. If whose receipts or accruals are wholly or prothe Board decides not to make an assignment, dominantly under subcontracts described in secthe Board will notify the contractor to this ef tion 103(g)(3) of the act, a Class A case will fect. See § 1498.6(c) of this subchapter.

generally be one in which the contractor reports 1471.2 How assignment is made.(a) An on the Standard Form of Contractor's Report assignment may be made to a Regional Board that its aggregate of such receipts or acon some basis other than geographical in an ap cruals is $100,000 or more and a Class B case propriate case when it is believed that such as will be one in which the contractor reports on signment will promote efficiency in the renego the Standard Form of Contractor's Report that tiation procedure. Similarly, the Board will its aggregate of such receipts or accruals is less reassign a case from one Regional Board to an than $100,000. Cases assigned on and after Sepother if it appears that efficiency of renegotia tember 18, 1954, will be designated in accordance tion procedure will be promoted thereby. with the preceding sentence; cases previously (b) At the time of assignment, every case will

assigned will generally be redesignated in acbe designated by the Board as either a Class A

cordance therewith upon request of a Regional case or a Class B case. Generally, a Class A case

Board if not already concluded by clearance will be one in which the contractor reports on

notice, agreement or order, and if such redesigthe Standard Form of Contractor's Report that

nation is otherwise expedient. it has derived from subject contracts profits of

(e) Notwithstanding the foregoing, to facilimore than $800,000 and a Class B case will be one in which the contractor reports on the Standard

tate concurrent renegotiation of members of Form of Contractor's Report that it has derived

affiliated or related groups when not confrom subject contracts profits of $800,000 or less.

solidated (see § 1464.10 of this subchapter), Cases assigned on and after September 18, 1954, renegotiable members of any such group will will be designated in accordance with the pre generally all be designated at the time of assigncoding sentence; cases previously assigned will ment as Class A or Class B cases according to 2-18-88

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