Rev. Proc. 58-10

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to announce the acceptability of a simplified Export Exemption Certificate as proof of export with respect to sales to citizens and/or residents of Mexico who purchase articles, otherwise subject to the retailers excise tax, from retailers whose places of business are located in United States counties contiguous to (actually touching) the Mexican border.

SEC. 2. BACKGROUND.

.01 United States consuls in Mexico issue border crossing cards to Mexico citizens and/or residents of Mexico which permit them to enter and leave the United States. These cards are issued for a period of six years but they limit each visit to 72 hours. Such persons make many small purchases from dealers whose places of business are located in counties contiguous to the Mexican border. The articles purchased are for use or consumption in Mexico and include jewelry, furs, luggage, and toilet preparations. These articles are not mailed or shipped to a foreign destination, but are carried by the purchasers back to Mexico upon their return on foot, by private automobile, or by common carrier.

.02 Under the provisions of section 4056 of the Internal Revenue Code of 1954, the retailers excise tax does not apply to the sale of any article for export and in due course so exported. S.T. 936, C.B. 1949-1, 260, and S.T. 939, C.B. 1951-2, 216, set forth various types of evidence which retailers generally may retain, for tax exemption purposes, as proof of export of taxable articles.

SEC. 3. USE OF SIMPLIFIED EXPORT EXEMPTION CERTIFICATE.

.01 Because of the large volume of small sales of taxable articles to citizens and/or residents of Mexico by retailers whose places of business are located in counties that are contiguous to the Mexican border, the exempt character of certain sales may be established by the use of a special form of sales ticket. To be acceptable as proof of export, the sales ticket must show the name of the seller, the date of the sale, and must be imprinted or stamped with a certificate properly filled in, substantially as follows:

I hereby certify that the merchandise listed upon this sales ticket is purchased by me, a citizen and/or resident of Mexico, for export to Mexico and in due course will be exported to Mexico prior to use.

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.02 The simplified Export Exemption Certificate may be used only by retail dealers whose places of business are located in counties contiguous to the Mexican border. Its use is limited to sales where the amount of the retailers excise tax, if applied to a sales transaction with an individual purchaser, would not exceed $20. It will not be accepted as proof of export in counties that do not touch the Mexican border or in counties which are contiguous to the Mexican border where the amount of the retailers excise tax, if applied to a sales transaction with an individual purchaser, would exceed $20.

SEC. 4. EFFECT ON OTHER DOCUMENTS.

Since the simplified Export Exemption Certificate is hereby being authorized for use by retailers whose places of business are in United States counties contiguous to the Mexican border, this Revenue Procedure supersedes Revenue Procedure 57-32, C.B. 1957-2, 1104, in which a similar procedure was limited to retail dealers in United States cities located on the Mexican border.