What export documents supported a Texas sales-tax refund, and how did the 30-day Texas storage presumption apply?

Plain-English summary

A licensed customs broker's export certificate and a bill of lading were sufficient to prove export. An air waybill could leave uncertainty about which goods were exported, so the shipper should include the seller's invoice number on it.

When the customer took possession in Texas, the seller collected tax and refunded it after receiving export proof. Goods remaining in Texas for 30 days were presumed used here, so the tax was not automatically refundable.

The customer could overcome that issue by showing prompt delivery to a customs broker or freight forwarder that held the goods pending export. The seller should obtain the broker's or forwarder's receipt proving that the third party—not the customer—stored them.

Common questions

Was an air waybill enough by itself? It should identify the related invoice and goods.

Did the seller initially collect tax after Texas delivery? Yes.

Could a refund still be available after 30 days? Yes, with proof of third-party holding pending export.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8911L0970B05

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

November 3, 1989

Dear ***:
VIA FAX

I just want to take a minute to comment on the two documents you
submitted.

Both the "Licensed Custom Broker's Export Certification" and the
bill of lading are sufficient to prove that goods were exported
from the United States. However, in the case of the "Air Waybill"
there may be a question as to what was exported. When you use an
"Air Waybill" as proof of export, you should have the shipper
include your invoice number on the form to identify exactly what
goods were exported.

When your customer takes possession of the property in Texas, you
should collect the tax and refund it when he brings you the export
documentation. Goods that remain in Texas for 30 days after the
sale are presumed to have been used here. That means that the tax
should not be automatically refunded.

If the purchaser can show that he delivered the goods to a customs
broker or freight forwarder shortly after the sale and they were
holding the goods pending their export, you may still refund the
tax. However, you should require the customer to give you a copy
of the broker or forwarder's receipt to verify that they and not
the customer stored the goods prior to export.

This opinion is based on the facts you presented. Other facts,
though similar, may yield different results.

Feel free to call or write me if you have any questions. You can
reach me by calling toll free 800-531-5441 or FAX (512) 475-0900.

Sincerely,
Al Van Allen
Taxability Section
Legal Services Division