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in this video we are going to explain how to report contract manufacturing services on the BG 120 survey we will explain what contract manufacturing services are and how contract manufacturing services transactions with foreign persons should be reported contract manufacturing services cover the processing assembly labeling packaging and so forth of materials and physical components owned by others the manufacturing is conducted by a manufacturing service provider who does not own the goods the manufacturing service provider is paid a fee by the owner of the goods to provide the service and ownership of the goods used does not transfer to the contract manufacturing service provider include services performed by the consolidated domestic US reporter for foreign persons who owned both the inputs and outcomes of the production process wishing to be reported as sales also include services purchased from foreign persons where the u.s. reporter owns both the inputs and outcomes of the produc
