Rev. Rul. 55-338

Where cartons of goods shipped from an inland manufacturing plant pursuant to an export contract are stopped at a port to be overpacked to meet export packing specifications or while a foreign customer obtains the necessary export license or exchanges foreign currency for American dollars to pay for the goods, the stoppage of the goods is not for a business purpose within the meaning of section 143.31 of Regulations 113 and does not constitute a `break' in the continuity of the export movement of the goods. Accordingly, the tax on the transportation of property imposed by section 3475 of the Internal Revenue Code of 1939 will not apply to the amount paid for the transportation of the goods from the inland manufacturing plant to the port, provided the person paying the transportation charges establishes exemption from payment of the tax in accordance with the applicable provisions of Subpart E of Regulations 113. Compare Rev. Rul. 55-183, page 542, this bulletin