What proof and timing rules applied when a Texas seller refunded sales tax after goods were exported to Mexico?

Plain-English summary

Property kept in Texas by its owner for more than 30 days after purchase was presumed stored and lost the export exemption. Any owner use in Texas before export also defeated the exemption. The letter excluded property held by a freight forwarder from that 30-day provision.

A customer had no separate fixed deadline for presenting export documents to the seller, but the seller had four years to claim the refund on its state sales-tax returns and should not honor claims older than four years. Once documentation was supplied, the seller had no fixed refund deadline but should issue the refund within a reasonable time.

A Licensed Customs Broker's Export Certification did not need notarization. It needed the broker's license number, an original signature, and certification that the merchandise had been exported.

What this means for you

The historical export exemption depended on the property's movement and use, not merely an intention to export. Sellers also needed documentation soon enough to preserve their own four-year refund claim.

Common questions

What happened after property stayed in Texas for more than 30 days? It was presumed stored if held by the owner, causing loss of the export exemption.

Did any Texas use before export matter? Yes. Any owner use in Texas caused loss of the exemption.

Did the 30-day rule cover a freight forwarder's possession? No.

Did the broker certification need notarization? No, but it needed a license number, original signature, and export certification.

Citations and references

• Rule 3.323(c)(1) — documentation proving exportation.
• Rule 3.323(e) — refunds.
• Rule 3.323(g) — contents of a Licensed Customs Broker Export Certification.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8709L0834B10

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

September 11, 1987

Dear **:

Thank you for your letter regarding proof of exportation beyond the
territorial limits of the United States. Your questions are restated
below with the answers following the questions.

Question: 1) How many days from the date of purchase does the cus-
tomer have to export the material to Mexico?

Answer: 1) Property in Texas longer than 30 days from date of purchase
is presumed to have been stored. Property stored in Texas by the owner
loses its exemption as an export. Any use of the property in Texas by
the owner prior to export causes the loss of export exemption. Property
in the hands of a freight forwarder is not covered by this provision.

Question: 2) What is the time limit, or is there a time limit, between
the date the customer exports the material and the date he presents the
necessary documentation to us to request a refund?

Answer: 2) There is no set time limit for this period in which the
customer can request a refund. However, there is a four year statute of
limitations in which you can claim the refund on your state sales tax
returns. Therefore claim requests over four years old should not be
honored.

Question: 3) After the customer presents the necessary documentation
to us, and requests the refund, is there a time limit on our part in
issuing the refund?

Answer: 3) Again, there is no set time limit, however, your refunds
should be issued within a reasonable amount of time.

Question: 4) The documentation used is the LICENSED CUSTOMER BROKER'S
EXPORT CERTIFICATION. Does this form need to be notarized?

Answer 4) This form does not need to be notarized, however; the form
must contain the broker's license number and an original signature with a
certification that the merchandise has been exported.

Rule 3.323, Imports and Exports, is enclosed for your information.
Please
note section (c)(1) on documentation necessary to prove exportation and
section (e) on refunds. Also necessary contents of Licensed Customs
Broker
Export Certification are listed in section (g).

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

If you have any questions or need more information, please call me at
1-800-252-5555 toll free from anywhere in Texas. The regular number is
512/463-4600. You may write me at the Tax Policy Division.

Sincerely,
Julie Pesl
Tax Policy Division