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 325.1180

(c) Shipments from California to Points Outside State

(5) Exports

325.1180 Exemption Certificates. A Japanese moving company proposes that its customers who have booked a move with the company to Japan be able, with appropriate documentation, to purchase merchandise tax exempt, and have the items shipped to Japan. Included in the proposed documentation was a California Blanket Sales Tax Exemption form.

Since the export exemption depends on actions for which the retailer is held responsible, and not the purchaser, an exemption certificate issued by the purchaser is not adequate proof of exemption. Instead, each retailer can use an agreement providing that the merchandise would be shipped abroad. The agreement should provide that the purchased items will be shipped via a specific "carrier, forwarding agent, export packer, customs broker or other person in the business of preparing property for export, or arranging for its export", as well as other terms such as which party will pay the shipping costs. The retailer is responsible for insuring that the property is actually delivered to the foreign country, and for obtaining and retaining a bill of lading or other valid documentation as proof of exemption. 9/28/93.