Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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400.0000 PACKERS, LOADERS, AND SHIPPERS—Regulation 1630

Annotation 400.0224


400.0224 Shipping Containers—Sales to U.S. Government. Shipping containers which are priced on the invoice to the customer based upon the hundred weight of the total shipment would become identified to the contract at the time the carrier withdraws them from inventory for the particular job. Such withdrawal satisfies the Uniform Commercial Code identification requirements. Therefore, if the three requirements of Regulation 1630(b)(2) were met, the sale of the container to the carrier would be for resale and the sale to the U.S. government would be exempt. One of the three requirements is that the contract specifically provides for the passage of title prior to use. In the past U.S. government contracts generally have not contained such a provision. Without such a provision, the shipper would be the consumer of the containers. 7/21/89.