Rev. Proc. 57-32

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 of articles, otherwise subject to the retailers excise tax, in United States cities located on the Mexican border.

SEC. 2. BACKGROUND

.01 United States consuls in Mexico issue border crossing cards to Mexican 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 in United States cities located on 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 in United States cities located on 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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( Signature of Purchaser )

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( Address )

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( Immigration or Document Number )

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( Issued at )

.02 The simplified Export Exemption Certificate may be used only by retail dealers whose places of business are located in cities that are on the Mexican border. Its use is limited to sales where the amount of retail 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 cities not on the Mexican border or in cities on the Mexican border where the amount of retail excise tax, if applied to a sales transaction with an individual purchaser, would exceed $20.