Could Texas suppliers accept a Mexican pedimento that listed only weight and value as export proof when detailed warehouse and customs records were also retained?

Plain-English summary

The Texas Comptroller allowed Texas suppliers to accept the Mexican pedimento as export proof even though it listed only shipment weight and value rather than describing the goods.

The accommodation depended on the exporter retaining six linked records at one location and agreeing to produce them whenever and wherever the Comptroller requested:

1. The Mexican corporation's purchase order to the U.S. supplier.
2. A serially numbered receiving voucher for delivery to the U.S. warehouse.
3. The warehouse log used to prepare export papers.
4. The U.S. customs invoice.
5. The officially numbered and stamped Mexican pedimento.
6. The 1986 Mexican importation permit covering machinery and equipment, productive material, and miscellaneous items.

The company could give suppliers a copy of the ruling for their files.

What this means for you

The pedimento did not stand alone. Its missing item detail was cured only by a documented chain linking purchases, warehouse receipt, export preparation, customs paperwork, and import authorization.

Common questions

Was the weight-and-value pedimento sufficient by itself? No.

Could suppliers still accept it as export proof? Yes, with the required supporting records.

Where did the exporter keep the records? Together at one location.

Could the Comptroller demand them? Yes, at any time and place of his choosing under the letter.

Citations and references

• The letter cited no numbered statute or Comptroller rule.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8610L0769A01

Original ruling text

October 28, 1986

Dear ***:

As we discussed recently, COMPANY X is a subsidiary of CORP ABC
operating in Mexico.

X purchases roughly $*** million worth of supplies in Texas
border cities each year for export to their Juarez plants. These supplies
do not otherwise qualify for exemption.

Each year X applies to the Mexican Government to import the supplies
they estimate they will need. While the estimate describes the goods,
X is really given permission to bring in so many kilos of supplies with
a predetermined peso value.

When the supplies are actually bought they are delivered to the ***
Plant in CITY where they are loaded for delivery to Juarez. They may
deliver goods from 20 suppliers in one load.

The "Pedimento De lmportacion" that is issued gives the weight and dollar
value, but not a description of the goods. Their suppliers have not been
willing to accept these as proof of export even though X also gives the
suppliers a warehouse log and invoice which detail the items exported.

Our Policy Committee has determined that your suppliers may accept this
as proof of export. This permission is given with the stipulation that
X will retain the following listed information, at one location and agree
to deliver it to the Comptroller at any time and place of his choosing.

1) Purchase order - from Mex. Corp. to a U.S. supplier
2) Receiving voucher prepared when material is delivered to the U.S.
warehouse (form to be serially numbered)
3) Warehouse log used to prepare exportation papers
4) U.S. Custom invoice
5) Mexican pedimento with official number and stamps
6) The 1986 Mexican importation permit issued to X. This covers
Machinery and equipment, Productive material, and miscellaneous

You may give your suppliers a copy of this letter for their files.

This opinion is based upon the facts you presented. If there are
additional or different facts, this opinion may change.

Please feel free to contact us if you have additional questions. You
may write us, call toll free 1-800-252-5555 from anywhere in Texas or
phone 512/463-4600.

Sincerely,

Tax Policy Section
Tax Administration Division