Are faxed copies of a pedimento or of a Licensed Customs Broker's Export Certification acceptable proof of export for Texas sales tax purposes?

Plain-English summary

This is a March 2, 1993 letter from the Texas Comptroller's Tax Administration Division answering a taxpayer's questions about what counts as acceptable proof of export when a customer picks up merchandise in Texas, pays sales tax at the time of sale, and later needs to document that the item was actually exported (typically to obtain a refund of the tax paid).

The letter addresses three distinct situations:

1. Faxed pedimento — A customer faxes a copy of their pedimento (a Mexican customs import document) as proof of export. The Comptroller says a faxed copy is acceptable as long as it is clearly legible.
2. Faxed Licensed Customs Broker's Export Certification — A customer faxes a copy of a Licensed Customs Broker's Export Certification instead. The Comptroller says faxed copies of this particular form are not acceptable; the taxpayer must obtain a properly completed original form.
3. Bill of lading alone — The taxpayer's own bill of lading instructs that an item be forwarded to a customer at an address in Mexico. The Comptroller says a bill of lading by itself is not sufficient to prove export; the firm still needs documentation that the item was actually exported, and the letter points to Rule 3.323(c) for further guidance.

The letter then goes on to describe a recommended procedure (discussed in an earlier phone call) for avoiding the trouble of collecting and later refunding sales tax: arrange for a licensed customs broker at the border to receive shipped items on the seller's behalf and deliver them to the customer only once the customer crosses into Mexico. Because a sale isn't complete until the customer takes possession, and the customer doesn't take possession until the item is "irrevocably committed to the stream of export," the seller can avoid collecting tax in the first place, and the broker (who is paid directly by the seller) can reliably provide a valid Export Certification.

What this means for you

Exporters and sellers who ship to Mexico

If you sell to customers who plan to take goods across the border, know that not every export document is treated the same way when faxed. A faxed pedimento can work as proof of export if it's legible, but a faxed Licensed Customs Broker's Export Certification will not — you need the signed original. A bill of lading alone, even one noting a Mexican delivery address, is not proof of export by itself.

Customs brokers

If you're a licensed customs broker working with Texas sellers near the border, this letter describes a specific arrangement the Comptroller endorsed: receiving items on the seller's behalf, releasing them to the customer only at the point of export, and then completing an original Export Certification for the seller. That original certification is treated as reliable proof — but only when it's the actual original, not a fax.

Accountants and tax professionals

When advising clients on export documentation, keep the distinction straight: legible faxed pedimentos are fine, but Export Certifications must be originals. Also flag Rule 3.323(c) as the relevant Comptroller rule for what additional documentation may be required beyond a bill of lading. Consider recommending the broker-intermediary procedure described in this letter to clients who want to avoid collecting and then refunding sales tax on export sales.

Common questions

Q: Can I fax a copy of a customer's pedimento to prove the item was exported?
A: Yes, according to this letter — a faxed copy of a pedimento is acceptable proof of export as long as it is clearly legible.

Q: Can I fax a copy of a Licensed Customs Broker's Export Certification instead of sending the original?
A: No. This letter states that faxed copies of Licensed Customs Broker's Export Certifications are not acceptable as proof of export; you must obtain a properly completed original form.

Q: Is a bill of lading showing a Mexican delivery address enough to prove export by itself?
A: No. The letter says a bill of lading alone is not sufficient — the seller must still have documentation proving the item was actually exported, and it points to Rule 3.323(c) for further information on what's required.

Citations and references

The original letter cites Rule 3.323(c) as the source for further information on proof-of-export documentation. No statutes are cited in the text; only this single rule reference appears.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9303L1223G01

Original ruling text

March 2, 1993

Dear **:

Thank you for your recent letter which is restated in part with responses
below.

Situation: A customer picks up merchandise in Texas and pays the tax.
They subsequently FAX our firm a copy of their pedimento document. Are
faxed copies of pedimentos sufficient to prove export if the information
is correct according to our firms invoice?

Response: Faxed copies of pedimentos may be accepted in lieu of originals
if they are clearly legible.

Situation: A customer Faxes our firm a copy of a Licensed Customs Brokers
Export Certification as proof of export. Are Faxed copies of Licensed
Customs Brokers Export Certifications sufficient to prove export if the
information is correct according to our firms invoice?

Response: Copies of Licensed Customs Brokers Export Certifications are
not acceptable as proof of export. You must obtain properly completed
original forms.

Situation: Our inn sells an item and delivers it to an exporter. The bill
of lading includes instructions that the item is to be forwarded to the
customer at an address in Mexico.

Response: The bill of lading you provided is not sufficient to prove export.
Your firm must still have documents to prove that the item purchased was
actually exported. Please refer to Rule 3.323(c) for further information.

As we discussed in our telephone conversation, your firm can avoid the
problems involved with collecting and then refunding sales tax by following
this procedure:

• Make arrangements with licensed customs brokers along the border to act
  on behalf of your firm receiving items you ship them and delivering them to
  your customers.

• When your firm sells an item for export to Mexico, ship the item to the
  broker in the city where the customer plans to cross into Mexico rather
  than giving the customer possession of the item at your place of business.

• Instruct the broker to deliver the item to the customer as they enter
  Mexico and at a point where the item is irrevocably committed to the stream
  of export.

• The broker should then complete Licensed Customs Broker's Export
  Certification and send it to you to document the export.

This procedure works because a sale is not complete until a customer
receives title to or possession of a taxable item. In this case, the
customer does not take possession of the item until it is irrevocably
committed to the stream of export and your firm has no problem obtaining
valid export documents because they compensate the broker directly.

This opinion is based on the facts you submitted. 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 (ext. 34680). My direct
line number is (512) 4634680. The number for FAX transmissions is (512)
475-0900. You may write to in care of Tax Administration Division.

Sincerely,

Al Van Allen
Tax Administration Division