Was a sale exempt when the vendor delivered export-marked packages to a common carrier that only held and boxed them before vessel loading?

Plain-English summary

R. F. G---, identified as a U.S. Technical Representative for a redacted California addressee, wrote on September 9, 1954. The request itself is absent.

A vendor delivered material to a common carrier in packages bearing export markings. The carrier held the goods until the exporting vessel arrived, placed the packages into wooden boxes and put those boxes aboard the exporting carrier.

Tax counsel concluded that the described sales were exempt from sales tax as export sales or sales in foreign commerce. The short letter based that conclusion on the export markings and the carrier doing nothing beyond holding, boxing, and loading the goods for the export vessel.

No statute, regulation, case or constitutional provision is cited. The source does not identify the vendor, buyer, material, carrier, vessel, destination or any actual sale, bill of lading, export record, price, tax amount or later proceeding.

The live annotation publishes the same limited-carrier result but says only that the carrier places the property aboard the export carrier, omitting the PDF's intermediate wooden-box step.

Common questions

What did the common carrier do with the packages?

It held them until the exporting vessel arrived, put them into wooden boxes and placed the boxes aboard the exporting carrier.

Why did the letter treat the sales as exempt?

It relied on the packages' export markings and the carrier's limited holding, boxing and vessel-loading role.

Does the source identify the foreign destination?

No. It supplies no destination, purchaser, vessel, bill of lading or delivery proof.

Did counsel cite an export statute or regulation?

No. The brief letter gives the result without naming legal authority.

Was there a documented audit or refund?

No. The source supplies no sale amount, tax, filing, audit, assessment, claim, refund or later outcome.

Citations and references

• September 9, 1954 representative request — identified but not reproduced
• January 17, 1955 Tax Counsel response — export/foreign-commerce result without cited law
• Official Annotation 325.1160 — publishes the carrier-holding and vessel-loading rule

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: Annotation 325.1160
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/325-1160.pdf

Original ruling text

325.1160

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

January 17, 1955

K--- A--XXXX --- ----- XX, California
Attention:

Mr. R. F. G--U. S. Technical Representative

Gentlemen:

S- -- XX XXXXXX

We have reached the conclusion that under the facts set out in your letter of September 9, 1954, the sales therein described are exempt from sales tax as export sales or sales in foreign commerce. Our opinion is based upon the delivery of the material in question by the vendor to a common carrier with export markings upon the packages and the fact that the common carrier does nothing further with the goods than to hold them awaiting arrival of the exporting vessel and place the packages in wooden boxes, placing the boxes aboard the exporting carrier. Very truly yours,

E. H. Stetson
Tax Counsel

EHS:tj
cc:

Los Angeles – Tax Administrator