Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
325.0000 INTERSTATE AND FOREIGN COMMERCE—Regulation 1620
(c) SHIPMENTS FROM CALIFORNIA TO POINTS OUTSIDE STATE
325.0578 Testing by Purchaser with Title Passage. The temporary transfer of a mold to the purchaser or to an extruder hired by the purchaser for testing purposes in itself does not necessarily disqualify the transaction from qualifying as an interstate sale or an export sale. Neither is the passage of title to the purchaser in this state fatal to the exemptions.
When the mold maker (seller) delivers the mold to an export packer tax does not apply.
When the extruder delivers the mold to an export packer, tax applies because the delivery is to the purchaser's representative (extruder) in this state, notwithstanding that the purchaser's representative subsequently delivers it to an export packer for delivery.
When the mold is returned by the extruder to the mold maker and then it is shipped by the mold maker pursuant to the contract of sale in interstate commerce, tax does not apply.
If the extruder delivers it to the carrier for interstate shipment or it is shipped interstate by the mold maker, but not pursuant to the contract of sale, tax applies. In the case of shipment by the extruder, the goods would have been delivered to the purchaser's representative in this state. In the case of shipment by the mold maker but not pursuant to the contract of sale the initial delivery to the extruder was delivery to the purchaser's representative in this state and, thus, taxable notwithstanding the subsequent shipment outside the state. 8/15/77.