### Question
How is the term exempt foreign trade income defined?


### Answer
The term **exempt foreign trade income** is defined in *26 U.S.C. § 923* as the following:

> the aggregate amount of all foreign trade income of a FSC for the taxable year which is described in paragraph (2) or (3)

#### Citation:
  - *26 U.S.C. § 923*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART III-INCOME FROM SOURCES WITHOUT THE UNITED STATES > Subpart C-Taxation of Foreign Sales Corporations**

