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 325.1340

(c) Shipments from California to Points Outside State

(5) Exports

325.1340 Mexican Nationals Driving Cars to Border. Cars sold to Mexican nationals and to a United States Consul in Tijuana cannot be considered as exempt export items to foreign consumers because the cars were delivered to the purchasers in California who subsequently drove the cars to Mexico. Despite the evidence showing that the cars crossed the border and were in fact registered in Mexico, the transactions are not sales in foreign commerce because the driving of the cars in California to the Mexican border by the purchasers is considered a local use of the cars making the sale taxable. 10/24/69.