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 325.1385

(c) Shipments from California to Points Outside State

(5) Exports

325.1385 Purchaser Listed as Shipper on a Bill of Lading. A seller has sold tangible personal property for export, but cannot be listed as the shipper on the bill of lading. In this situation, provided the seller follows the following procedures, the property will be considered "irrevocably committed" to the exportation process, within the meaning of Regulation 1620(a)(3)(C)2.

(1) The seller should deliver the property directly to the shipper, freight forwarder or export packing company.

(2) The seller should provide written instructions that the property is to be delivered to the foreign designation and the purchaser is not to have the ability to divert or cancel the shipment. The seller should obtain written confirmation from the shipper, freight forwarder or export packing company that it will comply with these instructions.

(3) The seller should obtain a copy of the bill of lading indicating that the property was actually shipped to the foreign destination. 11/18/92.