Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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I

325.0000 INTERSTATE AND FOREIGN COMMERCE—Regulation 1620

Annotation 325.1150

(c) SHIPMENTS FROM CALIFORNIA TO POINTS OUTSIDE STATE
(5) Exports

325.1150 Delivery of Molds to Extruder for Testing Prior to Shipment. The delivery of molds to an extruder hired by the purchaser for the limited purpose of testing the molds with title passing at the time of such delivery does not preclude an exemption under Revenue and Taxation Code section 6387 if the molds are subsequently redelivered by the retailer to an export packer for shipment to an out-of-state location for use solely outside California.

When an extruder hired by the purchaser returns a mold to the taxpayer because of defects revealed during testing, sales tax does not apply if pursuant to the contract of sale the taxpayer then delivers the mold to a carrier for shipment to an out-of-state point.

Sales tax applies when the taxpayer delivers the molds to an extruder hired by the purchaser and the extruder delivers the mold to an export packer or to a carrier for interstate shipment. 10/19/78.