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<h1>Taxation of International Shipping Profits Confined to State of Enterprise Under Contracting State Rule</h1> Profits earned by an enterprise of one Contracting State from operating ships in international traffic are taxable only in that State. This rule extends to profits from participation in a pool, joint business, or international operating agency involved in ship operations. The term 'profits from the operation of ships' includes income from using, maintaining, or renting containers, trailers, and related equipment for transporting goods internationally.