Laws, Regulations and Annotations


Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations

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325.0000 Interstate and Foreign Commerce—Regulation 1620

Annotation 325.0925

(c) Shipments from California to Points Outside State

(4) Delayed Shipment; Use Prior to Shipment; "Bailee Clauses"

325.0925 Manufactured Goods Held for Subsequent Shipment Out of State. A manufacturer contracts to manufacture certain goods, store them, and subsequently ship them to Florida when the customer's facilities there are completed. Title to the goods will transfer to the customer when the manufacturing process is completed.

The sale would be exempt from tax provided (1) that the contract specifies that the goods are to be manufactured in advance and held for later out-of-state shipment, (2) that the goods are in fact shipped out of state within a reasonable time, and (3) that the goods are shipped in accordance with the requirements of section 6396. 4/26/91.