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 325.1560

(c) Shipments from California to Points Outside State

(6) Export Packers and Forwarding Agents

325.1560 Mailing Agency as Forwarding Agent. A mailing agency may be a "forwarding agent." Thus, if the seller acting under his contract with the buyer delivers property to a mailing agency for shipment to an out-of-state point, the sale is an exempt interstate sale. If, however, the seller simply delivers the goods sold to a mailing agency which thereafter upon receipt of instructions from the buyer ships some or all of the goods outside the state, the sale is not exempt because the seller was not a party to a contract calling for out-of-state shipment. His obligation was complete upon delivery to the mailing agency where such delivery was unaccompanied by any instructions for out-of-state shipment. Such instructions may, however, be given following delivery to the agency pursuant to subsequent instructions received by the seller from the buyer by way of supplement to the original purchase order which contemplated that shipping instructions would follow. 10/30/64.