Cal. Code Regs. Tit. 18, § 1430 - Shipments Out of State
(a) Exports of Ex-Tax Diesel Fuel. The diesel
fuel tax does not apply to the export of ex-tax diesel fuel. To qualify for an
exemption from diesel fuel tax on the export of ex-tax diesel fuel, the
supplier must claim the exemption on the return filed for the period in which
the export occurred. Suppliers who erroneously pay tax on exports of ex-tax
diesel fuel may file a claim for refund with the Board pursuant to Revenue and
Taxation Code Sections
60521
through
60524
in order to obtain a refund of or credit for the amount of tax so paid.
(1) For purposes of this subdivision,
"export" means the delivery or shipment from a point in this state to a point
outside of the state when pursuant to the contract of sale the diesel fuel is
shipped by a supplier by any of the following means:
(A) Facilities operated by the
supplier.
(B) Delivery by the
supplier to a carrier, customs broker, or forwarding agent, whether hired by
the purchaser or not, for shipment to the out-of-state point.
(C) Delivery by the supplier to any vessel
clearing from a port of this state for a port outside of this state and
actually exported from this state in the vessel.
(2) For purposes of this subdivision,
"carrier" means a person who is regularly engaged in the business of
transporting for compensation property owned by other persons and includes both
common and contract carriers. An individual or firm does not become a "carrier"
simply by being designated by a purchaser to receive and ship goods to a point
outside this state.
(3) For
purposes of this subdivision, "forwarding agent" means a person or firm
regularly engaged in the business of preparing property for shipment or
arranging for its shipment. An individual or firm does not become a "forwarding
agent" simply by being designated by a purchaser to receive and ship goods to a
point outside this state.
(b) Exports of Tax-Paid Diesel Fuel. A person
who exports diesel fuel on which tax has been paid may file a claim for refund
with the Board pursuant to Revenue and Taxation Code Sections
60501
through
60512
in order to obtain a refund of the amount of tax so paid. For purposes of this
subdivision, the seller is deemed to be the exporter of diesel fuel when the
diesel fuel is delivered to an out-of-state location by facilities of the
seller or by common carrier on behalf of the seller, and the purchaser is
deemed to be the exporter of diesel fuel when the diesel fuel is delivered to
an out-of-state location by facilities of the purchaser or by common carrier on
behalf of the purchaser.
(1) All claims for
refund of tax paid on exported diesel fuel must be supported by, and the claim
for refund covering the export must contain the following:
(A) The name, address, telephone number, and
permit number of the person that sold the diesel fuel to the
claimant.
(B) The date the diesel
fuel was purchased.
(C) A statement
by the claimant that the diesel fuel covered by the claim did not contain
visible evidence of dye.
(D) A
statement, which may appear on the invoice or similar document, by the person
that sold the diesel fuel to the claimant that the diesel fuel sold did not
contain visible evidence of dye.
(E) The total amount of diesel fuel covered
by the claim.
(F) A properly
executed bill of lading or similar document furnishing proof of exportation by
the claimant.
(2) In lieu
of claiming a refund of tax for export of tax-paid diesel fuel, if the claimant
is a supplier, the claimant may take a credit on its diesel fuel tax return for
tax-paid diesel fuel when, pursuant to the contract of sale, the diesel fuel is
required to be shipped and is shipped to a point outside of this state by the
supplier claiming the credit by any of the means described in subdivision
(a)(1) above. The credit must be claimed on a return filed within three months
after the close of the calendar month in which the export occurred. If the
credit is not claimed on a return filed within three months after the close of
the calendar month in which the export occurred, the supplier must file a claim
for refund pursuant to Revenue and Taxation Code Sections
60501
through
60512
and this subdivision in order to obtain a refund of the amount of taxes
paid.
(c) Documentation.
Any person claiming an exemption, refund or credit under this regulation must
retain documentation to support the obligation to deliver diesel fuel out of
state and to support the actual delivery of diesel fuel at an out of state
location. Documentation may include, but is not limited to, contracts, bills of
lading, delivery tickets, invoices and rack meter readings. The person claiming
the exemption, refund or credit has the burden of proving that the diesel fuel
was exported.
(d) Diversion of
Diesel Fuel. Diesel fuel is not exported if it is diverted in transit or for
any reason it is not actually delivered outside of the state, regardless of
documentary evidence held by the person exporting the diesel fuel respecting
delivery of the diesel fuel to a carrier for out-of-state shipment or to a
vessel clearing for an out-of- state port.
Notes
2. Amendment of subsection (b)(2) filed 6-11-2002; operative 7-11-2002 (Register 2002, No. 24).
Note: Authority cited: Section 60601, Revenue and Taxation Code. Reference: Sections 60033, 60100, 60201, 60501- 60512, 60521- 60524 and 60604, Revenue and Taxation Code.
2. Amendment of subsection (b)(2) filed 6-11-2002; operative 7-11-2002 (Register 2002, No. 24).
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