definiens: shall mean the sales commissions payable to distributors and the portion of distribution costsrelating to moving Product in the Territory from the manufacturing point to a warehouse to the customer as follows : landing costs and duties ( in - house or subcontracted ), handling and transportation to fulfill orders includingexport / import taxes, insurance and transit running costs, etc . ( excluding such costs, if any, treated as a deduction inthe definition of Net Sales ) ; customer services, including order entry, billing and adjustments, inquiry and credit, collection, and litigation with customers concerning orders / deliveries ; order administration ; and departmentscoordinating sales forecasts and supply management ; physical distribution centers and other direct cost of storageand distribution of the Products, including distribution and storage subcontracted to third parties ; distribution servicesbetween physical distribution centers and commercial activities ; local supply chain department ; transportationpackaging modifications as a result of marketing decisions or regulatory requirements ; and the costs of the trafficdepartment where there is a separate department that has responsibility for administration of freight costs