I sell to a Mexican retailer who wants to buy tax-free for resale in Mexico -- what documentation do I need beyond a standard Texas resale certificate, and does a blanket certificate expire over time?

Plain-English summary

A Texas seller asked what it needs, beyond a standard Texas resale certificate, to sell goods tax-free to a Mexican retailer who will resell them in Mexico. The seller had already forwarded a copy of the Mexican Registration Form showing the buyer's RFC (Registro Federal de Contribuyentes, Mexico's federal taxpayer registry) number.

Two documents are required together. Rule 3.285(d)(2) requires the seller to hold (1) a properly completed Texas resale certificate (the 11/95 revision) or a properly completed Border States Uniform Sale for Resale Certificate, and (2) a copy of the Mexican buyer's Mexican Registration Form showing its RFC number. The Comptroller confirmed the form the seller sent qualified, and that a readable faxed copy is acceptable for recordkeeping purposes.

Blanket certificates don't go stale. Under Rule 3.285(c), a seller may rely on a blanket resale certificate indefinitely -- it does not become invalid simply because time has passed. It stays good until the buyer revokes it in writing.

A separate path for manufacturers. The letter also addresses a related scenario: a printer is a manufacturer of tangible personal property for sale. Rule 3.314(b) lets a manufacturer buy tax-free the packaging supplies used to wrap products it processes or fabricates for sale. So if the Mexican buyer is itself a manufacturer (like a printer), it can instead claim a manufacturing exemption for qualifying packaging supplies using its own exemption certificate, rather than relying on the resale-certificate-plus-RFC-form route.

What this means for you

Sellers exporting goods to Mexican retailers for resale

Collect both a resale certificate (Texas or Border States Uniform) and a copy of the buyer's Mexican Registration Form showing its RFC number -- neither one alone is enough under Rule 3.285(d)(2). Keep them on file; a faxed copy is fine as long as it's readable.

Sellers relying on a blanket resale certificate from a recurring Mexican customer

You don't need to refresh the certificate periodically just because time has gone by -- it remains valid until the customer revokes it in writing.

Sellers to Mexican manufacturers (e.g., printers) buying packaging materials

A manufacturing customer can claim the packaging-supplies exemption under Rule 3.314(b) with its own exemption certificate instead of (or in addition to) the resale-certificate/RFC-form route, if the goods will be used to wrap products it processes or fabricates for sale.

Common questions

Q: What paperwork do I need to sell tax-free to a Mexican retailer for resale?
A: A properly completed Texas resale certificate (or Border States Uniform Sale for Resale Certificate) plus a copy of the buyer's Mexican Registration Form showing its RFC number.

Q: Does a blanket resale certificate expire after some period of time?
A: No -- it remains valid indefinitely unless the buyer revokes it in writing.

Q: Can I accept a faxed copy of the Mexican Registration Form?
A: Yes, as long as it's readable.

Q: What if my Mexican customer is a manufacturer, not a retailer?
A: A manufacturer (such as a printer) can instead claim a packaging-supplies exemption under Rule 3.314(b) with its own exemption certificate if the goods will be used to wrap products it processes or fabricates for sale.

Citations and references

Statutes and rules:

• 34 Tex. Admin. Code Rule 3.285(d)(2) (resale certificate plus Mexican Registration Form/RFC requirement)
• 34 Tex. Admin. Code Rule 3.285(c) (blanket resale certificates valid until revoked in writing)
• 34 Tex. Admin. Code Rule 3.314(b) (manufacturer's packaging-supplies 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/9701234L

Original ruling text

January 22, 1997

Dear **:

Thank you for your letter forwarding a copy of the Mexican Registration Form
with the purchaser's Federal Taxpayers Registry (RFC) identification number for
Mexico.

In addition to a properly completed Texas resale certificate (revision 11/95)
or a properly completed Border States Uniform Sale for Resale Certificate,
enclosed Rule 3.285(d)(2) requires that a seller get a copy of the Mexican
Registration Form showing the Mexican retailer's RFC number. The form you sent
is acceptable. A faxed copy that is readable may be accepted for your records.

Please note that subsection (c) of the rule states that a seller may rely on a
blanket resale certificate unless it is revoked in writing. In other words, a
blanket resale certificate does not become invalid because of length of time.

A printer is a manufacturer of tangible personal property to be sold. As
explained in the enclosed Rule 3.314(b), a manufacturer may purchase tax free
the packaging supplies used to wrap the products that are processed or
fabricated for sale. Therefore, a manufacturer in Mexico may claim an
exemption for qualifying packaging supplies by giving a properly completed
exemption certificate (enclosed) to the seller.

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

You may call me toll free at 1-800-531-5441, ext. 5-0030. The direct line is
512/475-0030. You may also write to Tax Policy, Comptroller of Public
Accounts.

Sincerely,
David Somerville
Tax Policy Division