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 325.1360

(c) Shipments from California to Points Outside State

(5) Exports

325.1360 Mexican Resident—Crossing Border to Pick Up Goods. The fact that merchandise may actually be taken across the border by the purchaser and an export declaration issued does not in itself determine that there shall be no sales tax imposed with respect to the sale.

The Court in the Richfield case (Richfield Oil Company v. State Board of Equalization, 329 U.S. 69) said "Delivery was made into the hold of the vessel from vendor's tanks located at the docks. That delivery marks the commencement of the movement of the oil abroad." It would thus appear that the vendor could not claim exemption merely because "there is an intent to export, or a plan which contemplates exportation, or an integrated series of events which will end with it." (Empressa Siderurgica v. County of Merced, 337 U.S. 154.) It seems that under the facts there is an intent or plan to export but it does not appear that the goods "have been shipped or entered with a common carrier for transportation to another state or have started upon such transportation in a continuous route or journey." (Coe v. Errol, 116 U.S. 517.) 12/12/50.