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 325.1393

(c) Shipments from California to Points Outside State

(5) Exports

325.1393 Sale for Resale to Related Entity. A firm purchases lumber under a resale certificate which is consigned to a related entity located in Mexico. The possession of the lumber by the firm prior to its exportation is not "possession" by the Mexican entity within the meaning of Regulation 1620 and would not, in itself, preclude exemption by reason of export. Although the invoice from the supplier shows the Mexican entity as the purchaser, it appears that the goods were resold to its related entity by the California firm. 2/10/93.