For Immediate Release
September 10, 2003
Texas – Procedures for Issuing Export Certification Revised
Effective January 1, 2004, licensed customs brokers will be required to follow revised procedures for certifying merchandise as an export, thereby qualifying for sales and use tax exemption.
Licensed customs brokers will access a website maintained by the Texas Comptroller of Public Accounts to prepare documentation to prove the sales and use tax exemption of tangible personal property exported outside of the United States. An annual license fee of $300 per location will be due and the customs broker must file quarterly reports with the Comptroller showing the total value of the property and the total amount of corresponding tax for which the export certificates are issued, and the total amount of tax refunded in accordance with the export certificates.
Licensed customs brokers may issue documentation certifying that tangible personal property was made to a point outside the territorial limits of the U.S. only if the customs broker:
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watches the property cross the U.S. border;
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watches the tangible personal property being placed on a common carrier for delivery outside the U.S.; or
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verifies that the purchaser is transporting the property to a destination outside the U.S.
Customs brokers who do not follow these procedures may have their licenses revoked or suspended, and may be required to pay to the Comptroller the amount of the refunded tax and a penalty of $500 to $5,000.
If you would like additional information on this topic or have any questions, please contact David Rohlmeier, Regional Vice President - Sales & Use Tax Group at (469) 364-9600. E-mail drohlmeier@thesaltgroup.com
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