Is the Tarjeta Nacional De Inscripcion (a Mexican vehicle-registration document a customer gave a Texas seller) valid proof that goods were exported to Mexico for the Texas export exemption?

Plain-English summary

A Texas seller wrote to the Comptroller asking whether a document called the "Tajeda [sic] Nacional De Inscripcion" — given to them by a Mexican customer — could serve as proof that goods sold to that customer were exported to Mexico, which would let the seller claim Texas's export exemption from sales tax.

The Comptroller said no: the Tarjeta Nacional De Inscripcion does not document that the specific goods sold were actually exported to Mexico, so it can't be used as proof of export. Instead, the letter lists the documentation that IS acceptable:

• An original bill of lading issued by a licensed and certificated carrier that shipped the goods into Mexico, with a description of the goods that matches what was sold. If a freight forwarder took possession of the goods in Texas, a copy of the freight forwarder's receipt is required instead.
• A formal entry document from the destination country describing the goods — for Mexico, that means a pedimento de importaciones, a document with a computerized, certified number issued by Mexican customs officials. (The letter notes the form the customer provided was not this kind of formal entry document.)
• A State of Texas Licensed Customs Broker's Export Certification — a licensed U.S. customs broker can witness the export of the goods and certify it by completing, stamping, and signing this certification.

The letter points to 34 Tex. Admin. Code Rule 3.323(c) as listing the various ways of documenting proof of export.

The letter also flags a separate, unrelated change the customer hadn't asked about: effective September 1, 1995, a Mexican retailer can buy taxable items tax-free for resale in Mexico under a sale-for-resale exemption, instead of relying on the export exemption. To use this route, the Mexican retailer must give the seller a properly completed resale certificate that includes its Federal Taxpayers Registry (RFC) number (Texas will also accept the Border States Uniform Sale for Resale Certificate), plus a copy of its Mexican registration form. If the retailer provides this resale documentation, the seller can exempt the sale without needing any proof of export at all.

What this means for you

Texas sellers exporting goods to Mexican customers

Don't accept a Tarjeta Nacional De Inscripcion (a Mexican vehicle-registration-type document) as proof of export — it won't support your export exemption if the Comptroller reviews your records. Collect one of the documents actually listed in Rule 3.323(c): an original bill of lading (or freight forwarder's receipt) matching the goods sold, a Mexican pedimento de importaciones, or a signed/stamped State of Texas Licensed Customs Broker's Export Certification.

Sellers dealing with Mexican retail customers

If your customer is a Mexican retailer buying for resale rather than for its own use, consider the sale-for-resale route instead of the export exemption: get a completed resale certificate with the retailer's RFC number (the Border States Uniform Sale for Resale Certificate is acceptable) plus a copy of the retailer's Mexican registration form. That avoids the proof-of-export documentation problem entirely.

Common questions

Q: Can I use the Tarjeta Nacional De Inscripcion as proof my customer exported goods to Mexico?
A: No. It doesn't document that the specific goods sold were actually exported, so it isn't acceptable proof of export.

Q: What documents does Texas accept as proof of export to Mexico?
A: An original bill of lading from a licensed and certificated carrier (or a freight forwarder's receipt if a freight forwarder took possession in Texas), a Mexican formal entry document such as a pedimento de importaciones, or a State of Texas Licensed Customs Broker's Export Certification. See 34 Tex. Admin. Code Rule 3.323(c) for the full list.

Q: Is there a way to exempt a sale to a Mexican customer without proof of export?
A: Yes, if the customer is a Mexican retailer buying for resale. Since September 1, 1995, the retailer can give the seller a properly completed resale certificate (with its RFC number) plus a copy of its Mexican registration form, and the seller can exempt the sale as a sale-for-resale without needing proof of export.

Q: Can I rely on this letter for my own transactions?
A: No. This opinion is based on the facts submitted, and other facts, though similar, may yield different results; it binds the Comptroller only as to the taxpayer it was issued to.

Citations and references

Statutes and rules:

• 34 Tex. Admin. Code Rule 3.323(c) (proof of export documentation)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9512746L

Original ruling text

December 21, 1995

Dear **:

Thank you for your letter concerning the Tajeda Nacional De Inscripcion you
received from your customer.

The Tajeda Nacional De Inscripcion is not acceptable as proof of export. It
does not document that the goods you sold were actually exported to Mexico.
Your customer may show proof of export by giving you a copy of an original bill
of lading issued by a licensed and certificated carrier who shipped the goods
into Mexico. The bill of lading must have a description of goods that are
exported that matches the goods you sold. If a freight forwarder took
possession of the goods in Texas, a copy of the freight forwarder's receipt is
required.

A formal entry document from the country of destination that describes the
goods is also acceptable as proof of export. For Mexico a formal entry document
includes a pedimento de importaciones. This is a document with a computerized,
certified number issued by Mexican customs officials. The form given to you by
your customer is not a formal entry document for Mexico.

A licensed United States Custom Broker may also witness the export of taxable
items and then certify that the goods were actually exported by completing,
stamping, and signing a State of Texas Licensed Customs Broker's Export
Certification. The enclosed Rule 3.323(c) lists the various ways of documenting
proof of export.

Although you did not ask about it, there has been a recent law change that
exempts sales to some customers in Mexico for a reason other than the export
exemption. Effective September 1, 1995, a Mexican retailer may purchase taxable
items for resale in Mexico tax free. In order to get a sale for resale
exemption, the Mexican retailer must properly complete a resale certificate
(enclosed) and include their Federal Taxpayers Registry (RFC) number on the
certificate. Texas will accept the Border States Uniform Sale for Resale
Certificate as a valid resale certificate if a Mexican retailer gives you that
form instead. In addition to the resale certificate, the Mexican retailer must
also give a copy of their Mexican registration form to the seller. If a Mexican
retailer provides you this sale for resale documentation, you may exempt the
sale without requiring proof of export.

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

You may call me toll free at 1-800-531-5441, ext. 5-0030. The direct line is
512/475-0030. You may also write to Tax Policy, Comptroller of Public Accounts.

Sincerely,

David Somerville
Tax Policy Division