Does a licensed customhouse broker corporation with several offices need to file a separate Texas Customs Broker's Export License application for each office?

Plain-English summary

A corporation licensed as a customhouse broker asked the Comptroller's office whether it needed to file a separate Texas Customs Broker's Export License application for each of its offices, or one application covering the whole firm. The company operated in two customs districts (referred to as City A and City B), with five individual licensed brokers in City A and one in City B; those City A brokers also let the firm operate, without an on-site licensed individual, in two more cities (City C and City D) — four office locations in total.

The Comptroller's office answered that the company should file one application for the corporation, providing complete information about every location from which exports to Mexico would be certified (including names, addresses, and authorized employees at each location). Once approved, the Comptroller issues a separate permit for each location, but all locations share a single taxpayer number for the firm, with an individual outlet number assigned to each location.

What this means for you

Customs brokers with multiple office locations

If your brokerage operates out of more than one office, you don't need to submit a separate license application per office. File one application for the firm and attach the location-by-location details (address and authorized employees at each) that the Comptroller's office asks for. You'll still end up with a distinct permit and outlet number for each location, but under one taxpayer number.

Firms expanding into new cities without adding licensed staff on-site

The ruling assumes a firm can operate additional locations (here, City C and City D) using the credentials of individually licensed brokers based elsewhere (City A), as long as those locations are disclosed on the application. If you're adding a location without stationing a separately licensed individual broker there, make sure it's listed on your firm's application along with the other offices.

Common questions

Q: Do we need to file a separate export license application for every office?
A: No. File a single application for the corporation and list every location from which exports to the Republic of Mexico will be certified.

Q: What do we get back after the application is approved?
A: A permit for each location you listed, all under one taxpayer number for the firm, with each location getting its own individual outlet number.

Q: Can we add extra information after submitting the main application?
A: Yes. The ruling notes you may attach additional sheets giving the name and address of each location and the required information about the authorized employees who will certify exports there.

Q: Does this ruling apply directly to my business?
A: Only if your facts match closely. This letter is based on the facts the requesting taxpayer presented, and other facts — even if similar — may yield different results. It can only be relied on as a detrimental-reliance defense by the taxpayer it was issued to.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9212704L

Original ruling text

December 2, 1992

VIA FAX

Dear **:

Thank you for your recent FAX transmission in which is restated in part with
response below.

Facts: I represent COMPANY. We are licensed customhouse brokers. This corporate
license allows us to apply for and have a permit in each customs district where
we have a licensed broker. We operate in two districts, CITY A and CITY B and
we have 5 individual licensed brokers in CITY A and one individual licensed
broker in CITY B. The individual licenses in CITY A allow us to operate in CITY
C and CITY D without licensed individuals in those offices.

Question: Do we need to file an application for a Texas Customs Broker's Export
License for each office or one application for the corporation with the
explanation that there are 4 offices and we would need the necessary supplies
for each office?

Response: You should complete a single application and provide complete
information about each location from which exports will be certified to the
Republic of Mexico. Upon approval of your firms' application, we will issue a
permit for each location with a single taxpayer number for the firm and an
individual outlet number for each location. You may attach additional sheets to
the application giving us the name and address of each location and required
information on the authorized employees at each location from which exports
will be certified.

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

If you have questions or need more information, please call or write. You may
reach me by calling toll free, (800) 531-5441 extension 34680. My direct dial
number is (512) 463-4680. The number for FAX transmissions is (512) 475-0900.
You may write to me in care of Tax Administration Division.

Sincerely,

Al Van Allen
Tax Administration Division