eBay's policy on merch moving intrastate to a CA freight forwarder and going off shore

[davesmusic_com]

Anyone have any recent experience with eBay's handling of tax exemption for merch shipped within CA to a Ca based registered freight forwarder for export? The dealers I have direct dealings with understand this is a non taxable sale as I have no direct contact with the merch AND it leaves the country. You can't get eBay on phone any longer to ask directly. Getting as bad as amazon. TIA

[disneyshopper]

If the freight forwarder is located in California, then the buyer will be charged California sales tax.  If the buyer wants to avoid paying sales ta, s/he will need to find a freight forwarder located in a state that does not charge sales tax (NH, DE, MT, OR as I recall).

[davesmusic_com]

That's all east coast.  It's going oceanic to pacific. I know the State allows for exemption in these circumstances. Just curious if eBay had a similar understanding.

325.1510 Export Packers. Sales to a foreign purchaser, where delivery is made in California to a separate legal entity set up by the foreign purchaser to act as an export packer, will qualify as exempt within section 6387, provided the other requirements of that section are satisfied. To be considered an export packer within section 6387 and Regulation 1620 (a) (3) (C) (1) (b), it is not necessary for a firm to hold itself out to the public as an export packer. It is sufficient if the purchaser and the packer are separate legal entities and the packer is engaged in the business of export packing for the purchaser.

A vendor qualifies as an export packer within section 6387 if the vendor regularly packs and exports, not only goods he has sold to the foreign purchaser, but also goods sold to the foreign purchaser by other vendors.

325.1530 Forwarding Agent. For purposes of section 6396, a common carrier qualifies as a "forwarding agent" when it consolidates merchandise for reloading aboard another common carrier hired by the purchaser. Accordingly, the delivery of goods to the common carrier acting as a forwarding agent meets the requirements of the exemption if the goods are shipped to an out-of-state point. 

325.1536 Freight Forwarder. A shipment of tangible personal property by a California retailer from its Arizona location to a California freight forwarder, for further shipment to a consumer in Hawaii, is an exempt sale in interstate commerce. The sale did not occur in California and the purchaser did not take possession of the property in California. The shipment to the freight forwarder is a continuation of the interstate journey of the property sold.

Sales And Use Tax Law

Revenue and Taxation Code

Division 2. Other Taxes
Part 1. Sales and Use Taxes
Chapter 4. Exemptions

Article 2. Exemptions from Sales Tax

Section 6387

---

6387. Delivery to export packers. There are exempted from the computation of the amount of the sales tax the gross receipts from sales of tangible personal property purchased for use solely outside this State and delivered to a forwarding agent, export packer, or other person engaged in the business of preparing goods for export or arranging for their exportation, and actually delivered to a port outside the continental limits of the United States prior to making any use thereof.

[glorybells]

You need to be aware, though, that in many states the rules are different when it involves marketplace facilitators like eBay.  You might want to contact the California Department of Revenue to see if they have updated information about situations like yours.

[davesmusic_com]

I did contact them. And spoke with a live person and he pointed me to the info I shared. Maybe I didn't explain myself clearly. I understand the law as it relates to this type of transaction and it works fine when it's dealer to dealer.  Other CA dealers ship to my forwarder in Hawthorne tax exempt all the time. It's eBay's position on the law I was curious about. Wondering if anyone had personal experience on eBay with. this type transaction. Thanks!

[inceptions]

The buyer would have to set up an account with a sales tax exemption to use for items sent to his freight forwarder in a state where freight-forwarded purchases are tax exempt.

https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771&st=3&pos=1&query=Pay...