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 325.1196

(c) Shipments from California to Points Outside State

(5) Exports

325.1196 Federal Republic of Germany. A company has several contracts with the Federal Republic of Germany Ministry of Defense (BWB). BWB's representative within the U. S. A., the German Military Representative (GMR), operates a transportation warehouse and shipping facility in this state. The GMR claims that its shipping facility is operated in such a matter that shipments from within the state of California to the facility are exempt from California sales tax.

The requirements of section 6387 are not met under the above facts. Although the effect of GMR's operation in California may be similar to the operations of a forwarding agent, delivery to a purchasing entity in California will in all cases render the exemption found in section 6387 inapplicable. It is the position of this Board that sales of tangible personal property to the Federal Republic of Germany's Ministry of Defense which are delivered to the Ministry's representative in California, the GMR, for later export to Germany, are subject to sales tax. 3/4/81.