HRS § 235-6 — Foreign manufacturing corporation; warehousing of products


§235-6 Foreign manufacturing corporation;
warehousing of products. (a) For the purposes of sections 235-21 to
235-39, a foreign corporation engaged in the business of manufacturing without
the State, having its manufactured products warehoused in this State by another
person who is engaged in the business of warehousing in this State and whose
compensation for providing the warehousing is included in the measure of the
tax imposed by chapter 237 or 239, shall not be deemed to be carrying on a
trade or business in this State if all of the following requirements are met:
(1) Every delivery of sale of such products so
warehoused is made at the warehouse to fill an order for such property procured
by a representative (as defined in subsection (b)) from a seller licensed under
chapter 237 and purchasing such property for purposes of resale;
(2) Every order so procured was made subject to
acceptance and was accepted by the corporation at an office located out of this
State;
(3) No collection for the payment of the products
delivered as described in paragraph (1) is made in this State by any of its
employees or agents or by any representative; and
(4) Except as provided in this section, it is not
carrying on a trade or business in this State within the meaning of sections
235-21 to 235-39.
(b) "Representative" means a
salesperson, commission agent, broker, or other person who is authorized or
employed as an independent contractor and not as an employee by the foreign
manufacturing corporation described in subsection (a) to assist the
manufacturer in selling its products in this State, by procuring orders for
such sale, and who carries on such activities in this State (it being
immaterial whether such activities are regular or intermittent), but whose
functions and authority do not include the accepting of orders for, or the
making of deliveries of, or the collecting of payment for deliveries of such
products.