Texas Letter Ruling 9303L1228F07 (1993): How do operators of Mexican aircraft document that taxable items carried as cargo were exported, and can a customs broker's certification substitute for that documentation?

Plain-English summary

This March 1, 1993 letter from the Texas Comptroller's Tax Administration Division amends an earlier 1990 letter to the same taxpayer about "XB" and "XC" designated Mexican aircraft, while leaving the rest of that earlier guidance in place.

The letter addresses how operators of Mexican aircraft can document, for Texas tax purposes, that taxable items carried as cargo (not installed in the aircraft) were exported. The accepted method is to obtain a Pedimento de Importaciones from Mexican customs officials. Because the taxpayer must first pay Texas tax on the purchase, the Pedimento is then used to request a tax refund. The letter points to 34 Tex. Admin. Code Rule 3.323 for the complete requirements, and states plainly that a customs broker's certification is not acceptable as proof of export for items carried on aircraft other than licensed and certified carriers.

Separately, the letter reiterates that operators of "XB" and "XC" designated Mexican aircraft must pay tax on items the taxpayer installs in those aircraft — installed items are treated as used in Texas and are not eligible for a sales tax refund, in contrast to items carried as loose cargo and later exported.

What this means for you

Operators of Mexican aircraft (and exporters shipping cargo aboard them)

If you're exporting taxable items out of Texas as cargo on a Mexican aircraft, keep the Pedimento de Importaciones from Mexican customs — that is the document the Comptroller will accept to support a refund claim for tax you already paid. Do not rely on a customs broker's certification instead, unless the aircraft carrying the goods is a licensed and certified carrier; for other aircraft, a broker's certification will not support your refund claim.

Sellers who install parts or equipment in "XB"/"XC" designated aircraft

Items you install directly into the aircraft (as opposed to loading as cargo) are treated as used in Texas once installed, and the operator owes Texas tax on them with no export-based refund available. The export documentation and refund process described in this letter applies only to items carried as cargo, not to installed equipment.

Accountants and tax professionals

This letter is a narrow amendment to a prior 1990 ruling for the same taxpayer — it confirms the balance of that earlier letter remains correct while updating the export-documentation and customs-broker points. When advising on similar facts, cite Rule 3.323 directly rather than this letter, since STAR letters are only binding for the taxpayer who received them.

Common questions

Q: What paperwork proves that cargo carried out of Texas on a Mexican aircraft was actually exported?
A: A Pedimento de Importaciones issued by Mexican customs officials. The taxpayer pays Texas tax up front on the purchase, then uses the Pedimento to request a refund.

Q: Can a customs broker's certification be used instead of the Pedimento?
A: Not for items exported on aircraft other than licensed and certified carriers. The letter states customs brokers' certifications are not acceptable in that situation.

Q: Does this refund process apply to parts installed in the aircraft?
A: No. Items installed by the seller in "XB" or "XC" designated Mexican aircraft are considered used in Texas and are not eligible for a sales tax refund, regardless of the aircraft's later use.

Q: Can I rely on this specific letter for my own transactions?
A: Only the original recipient of this 1993 letter can rely on it for detrimental-reliance purposes. Other taxpayers should look to Rule 3.323 itself or request their own letter ruling, and should confirm the rule hasn't since been amended or superseded.

Citations and references

Rules:

• 34 Tex. Admin. Code Rule 3.323 (Imports and Exports) — governs documentation of exports, including the Pedimento de Importaciones procedure referenced in this letter

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9303L1228F07

Original ruling text

March 1, 1993

Dear **:

Thank you for your recent letter and copies of our prior correspondence.
I'd like to amend my letter of October 15, 1990 regarding "XB" and "XC"
designated aircraft. The remaining information is correct.

Operators of Mexican aircraft of any type may document the export of
taxable items, carried as cargo but not ingabed, by obtaining a Pedimento
de Importaciones from Mexican customs officials. Persons using this method
must first pay the tax on their purchases and request a tax refund from you
when they provide you with the "Pedimento". Please refer to Rule 3.323,
enclosed, for complete information. Customs brokers certifications are not
acceptable for items exported on aircraft other than licensed and certified
carriers.

Operators of "XB" and "XC" designated Mexican aircraft must pay tax on
their purchases of items installed by your firm in their aircraft. Such
items will be considered to be used in Texas and not subject to sales tax
refund.

This opinion is based on the facts you submitted. Other facts, though
similar, may yield different results.

If you have questions or need more information, please call or write. You
may reach me by calling toll free, (800) 531-5441 (ext. 34680). My direct
line number is (512) 463-4680. The number for FAX transmissions is (512)
475-0900. You may write to me in care of Tax Administration Division.

Sincerely,

Al Van Allen
Tax Administration Division