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Must distribution service fees, inventory management fees and the other services referenced in the BFSF

Even though there were specific examples of bona find service fees provided in statute, the four-part test remains the definitive test to qualify a payment as a bona fide service fee. Therefore, manufacturers are responsible for meeting all four parts of the definition of bona fide service fee before a fee can qualify as a bona fide service fee (see 81 FR 5177-5178).

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Date
FAQ ID
94821
FAQ Question
Must distribution service fees, inventory management fees and the other services referenced in the BFSF provision of the AMP definition be subjected to the regulatory BFSF test? The preamble could be read to suggest that these fees are always BFSFs without analysis under the regulatory test.