how does the fsc itm in the u.s tax code constitute an export subsidy?

Answer 1

The World Trade Organization determined that the foreign sales company rules constitute an improper export incentive. The following explanation is found when calling up the fsc rules in one legal service:
"The Foreign Sales Corporation rules contained in code sections 921-927 are generally repealed by the FSC Repeal and Extraterritorial Income Exclusion Act of 2000 (P.L. 106-519) after September 30, 2000. However, Section 5 of the Act, as amended by the Tax Increase Prevention and Reconciliation Act of 2005 (P.L. 109-222, Act. Sec. 513(a)) provided transition ruleswhich generally allowed existing FSCs to continue to apply the repealed rules for transactions occurring before January 1, 2002."