Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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557.0000 TRANSPORTATION CHARGES—Regulation 1628

Annotation 557.0484

557.0484 Purchase of Equipment. A company purchased equipment from an Italian firm in Italy. The purchase order stated a price FOB Italian port and a price "CIF Oakland delivery" for a ''total price CIF Oakland."

Section 2320 of the Commercial Code defines "CIF" to mean the cost of goods and the insurance and freight. The shipping charge was not separately stated. It is, therefore, not necessary to determine whether the contract was for a delivered price or where title was transferred. Tax is due on total contract price which includes the CIF charge. 8/17/92.