inventory exchange
(2) Special rules for inventory exchanges (A) In general Except as provided in this paragraph, in any case in which a manufacturer, producer, or importer of a taxable chemical exchanges such chemical as part of an inventory exchange with another person— (i) such exchange shall not be treated as a sale, and (ii) such other person shall, for purposes of section 4661, be treated as the manufacturer, producer, or importer of such chemical. (B) Registration requirement Subparagraph (A) shall not apply to any inventory exchange unless— (i) both parties are registered with the Secretary as manufacturers, producers, or importers of taxable chemicals, and (ii) the person receiving the taxable chemical has, at such time as the Secretary may prescribe, notified the manufacturer, producer, or importer of such person’s registration number and the internal revenue district in which such person is registered. (C) Inventory exchange For purposes of this paragraph, the term “inventory exchange” means any exchange in which 2 persons exchange property which is, in the hands of each person, property described in section 1221(a)(1).