Can U.S. citizens claim the same Texas sales and use tax export exemption that Mexican citizens use when exporting purchased goods?

Plain-English summary

A taxpayer asked the Comptroller's office to confirm in writing that United States citizens can claim the Texas sales and use tax export exemption for exported goods the same way Mexican citizens do. The Comptroller confirmed the answer is yes.

The export exemption, found at Tax Code Section 151.307, applies to goods that are exported, and it makes no distinction based on the purchaser's national origin. The Comptroller noted that some customs brokers and retailers mistakenly believe there is a special sales and use tax exemption reserved exclusively for citizens of Mexico. There is no such separate exemption. The exemption claimed daily by thousands of Mexican shoppers — through a Licensed Texas Customs Broker's export certification, a pedimento de importaciones, or similar documentation — is simply the same general export exemption available to any purchaser, regardless of nationality.

What this means for you

Business owners and retailers

If you sell goods that customers intend to export from the United States, the Texas export exemption is available to any purchaser who properly documents the export — whether that customer is a U.S. citizen or a foreign national. Do not treat the exemption as limited to a particular nationality of purchaser.

Accountants and tax professionals

When advising clients on export sales, remember that eligibility for the Section 151.307 export exemption turns on whether the goods are actually exported and properly documented (for example, through a Licensed Texas Customs Broker's export certification or a pedimento de importaciones), not on the customer's citizenship or national origin.

Common questions

Q: Can U.S. citizens claim the Texas export exemption on goods they export?
A: Yes. The export exemption under Tax Code Section 151.307 applies regardless of the purchaser's national origin, so U.S. citizens qualify the same way Mexican and other non-U.S. citizens do.

Q: Is there a special sales tax exemption just for Mexican citizens?
A: No. There is no separate exemption reserved exclusively for citizens of Mexico. What Mexican shoppers commonly use — a Licensed Texas Customs Broker's export certification, a pedimento de importaciones, etc. — is simply documentation for the same general export exemption available to all purchasers.

Q: What determines whether the export exemption applies?
A: Whether the goods are exported, not the nationality of the purchaser. The statute makes no distinction based on national origin.

Citations and references

• Tex. Tax Code § 151.307 (export exemption)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9412L1329E05

Original ruling text

December 16, 1994

Via Regular Mail and FAX:**

Dear**:

In your FAX of yesterday, you asked for written confirmation that United States
citizens may claim an exemption from sales and use taxes for exported items,
the same way Mexican and other non-US. citizens may. The answer is yes.

The tax exemption in question (Sec. 151.307, Tax Code) relates to goods that
are exported. It makes absolutely no distinctions based on the national origin
of the purchaser. Therefore, national origin is irrelevant.

There may be a misconception among some customs brokers and retailers that
there is a special sales and use tax exemption exclusively reserved for
citizens of the Republic of Mexico. There is no such exemption. The exemption
claimed daily by thousands of Mexican shoppers, through the use of a Licensed
Texas Customs Broker's export certification, a pedimento de importaciones,
etc., is simply the export exemption described above.

I hope this answers your question. If you have additional questions or
concerns, feel free to write or call me at 1-800-531-5441, extension 3-3889.

Sincerely,

John Christian
Legal Services Division

NOTE: Previous Accession Number 9412805L