Sale of motor vehicle parts and accessories

While 'Distribution of goods or materials' is a Qualifying Activity, it is strictly limited to B2B transactions from a Designated Zone. Sale of motor vehicle parts to end-consumers is classified as Retail and constitutes an Excluded Activity, potentially disqualifying the entire QFZP status if the 5% de minimis threshold is exceeded.

Audit Red Flag

Misclassification of retail sales (B2C) as wholesale distribution (B2B) to circumvent the 'Excluded Activity' status of retail.

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