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 325.1371

(c) Shipments from California to Points Outside State

(5) Exports

325.1371 Power of Attorney from Purchaser. An importer/exporter in California was contracted by a Costa Rican company for assistance in purchasing a refrigerated truck for use in Costa Rica. A power of attorney was executed by the importer/exporter and a representative of the Costa Rican company empowered the importer/exporter "to purchase, transport and or conduct all functions" on behalf of the Costa Rican company. The importer/exporter purchased the vehicle as an agent for the Costa Rican firm. The importer/exporter was to facilitate and prepare the vehicle for export to Costa Rica. The vehicle left California the day after purchase on a continuous non-stop journey to Costa Rica.

The fact that the importer/exporter was empowered with the power of attorney "to purchase, transport and or conduct all functions" on behalf of the purchaser supports a conclusion that the importer/exporter was acting as the Costa Rican firm's representative when it took delivery of the vehicle. California law clearly provides that an attorney in fact is an agent acting under a written grant of authority. Delos v. Farmers Ins. Group Inc. (1979) 93 Cal.App.3d 642; 155 Cal.Rptr. 843. Thus, pursuant to Regulation 1620(a)(3)(C)1, since the importer/exporter, as an agent for the purchaser, took delivery of the vehicle in California, sales tax applies regardless of the intention that the vehicle would be and actually was transported to a foreign country. 10/3/95.