Reporting Revenues in Item 5
Effective for all filings submitted on August 18, 2011 or later
Item 5 involves reporting revenues for the most recent year only, using the most recent North American Industry Classification System (NAICS) 6-digit non-manufacturing codes and the most recent Numerical List of Manufactured and Mineral Products 10-digit manufacturing codes (NAICS sectors 31-33). Some 10-digit NAICS manufacturing codes end in double zero and these codes should be reported in Item 5 in this double zero form. Keep the following tips in mind when completing Item 5:
For products manufactured in the US:
Report revenues in a 10-digit NAICS manufacturing code (NAICS sectors 31-33) whether sold to a U.S. customer or a foreign customer
- Report revenues only in a 10-digit NAICS manufacturing code (NAICS sectors 31-33), not a 10-digit manufacturing code and a 6-digit wholesale or retail NAICS code, even if the manufactured products are sold from a different establishment than the manufacturing facility
For products manufactured outside the US and sold into the US:
Report only US revenues using the relevant 10-digit NAICS manufacturing code(s) (NAICS sectors 31-33)
- Report the sale of foreign manufactured products to a controlled US entity at the transfer price, if the transfer price is reasonably obtainable (otherwise use the wholesale/retail price)
- Report the sale of foreign manufactured products to a non-controlled US entity or US direct purchaser at the wholesale/retail price
- Report revenues only in a 10-digit NAICS manufacturing code (NAICS sectors 31-33), not a 10-digit manufacturing code and a 6-digit wholesale or retail NAICS code, even if the manufactured products are sold from a different establishment than the manufacturing facility
- In the case of foreign-to-foreign sales, report only the revenue from those sales which result in manufactured products being sold in the US through a controlled entity within the filer or to a US customer of the filer
Where revenues are derived from products manufactured by third parties under contract, report only those revenues from products that are then sold in the US from the filer’s establishment, and use a 6-digit retail or wholesale code. Note that the sale of foreign manufactured products into the US should be reported in Item 5 regardless of where title and/or risk of loss pass, assuming the filer can reasonably identify and quantify those sales.
For non-manufacturing operations:
Report revenues derived from U.S. operations in a 6-digit NAICS non-manufacturing code whether sold to a U.S. customer or a foreign customer
