By Chavez H.B. No. 2582
77R7752 CBH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to customs brokers.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 151.157(a), (d), (f), and (g), Tax Code,
1-5 are amended to read as follows:
1-6 (a) A customs broker, or an authorized employee of a customs
1-7 broker, licensed by the comptroller under this section may issue
1-8 documentation for the purpose of showing the exemption of tangible
1-9 personal property under Section 151.307(b)(2) only under procedures
1-10 established by this section, Section 151.1575, and by the
1-11 comptroller by rule.
1-12 (d) The amount of the bond or security required by
1-13 Subsection (b)(3) is $5,000 [$500], except that the comptroller may
1-14 require a customs broker to post additional bond or security in an
1-15 amount the comptroller considers necessary to ensure the payment of
1-16 the tax under this chapter and local sales and use taxes. The
1-17 comptroller may not require a bond or security in an amount greater
1-18 than $10,000 [$2,500]. The comptroller may not require the customs
1-19 broker to post more than one bond or security solely because the
1-20 broker has more than one place of business. The security may be in
1-21 the form of cash, a certificate of deposit, a letter of credit, or
1-22 another instrument of value.
1-23 (f) The comptroller may suspend or revoke a license issued
1-24 under this section if the customs broker does not comply with
2-1 Section 151.1575(c) or knowingly or intentionally issues
2-2 documentation that is false to obtain a refund of taxes paid on
2-3 tangible personal property not exported or to assist another person
2-4 in obtaining such a refund [for good cause]. The comptroller may
2-5 determine the length of suspension or revocation necessary for the
2-6 enforcement of this chapter and the comptroller's rules. A
2-7 proceeding to suspend or revoke a license under this subsection is
2-8 a contested case under Chapter 2001, Government Code. Judicial
2-9 review is by trial de novo. The district courts of Travis County
2-10 have exclusive original jurisdiction of a suit under this section.
2-11 (g) A customs broker may authorize a person to act as an
2-12 independent contractor to certify in accordance with Section
2-13 151.1575(a)(1) that tangible personal property has been exported
2-14 outside of the United States only if the authorization is part of
2-15 the written contract and the comptroller in writing approves the
2-16 authorization. A customs broker may not authorize a person under
2-17 this subsection to prepare documentation for the purpose of showing
2-18 the exemption for tangible personal property under Section
2-19 151.307(b)(2).
2-20 SECTION 2. Subchapter E, Chapter 151, Tax Code, is amended by
2-21 adding Section 151.1575 to read as follows:
2-22 Sec. 151.1575. REQUIREMENTS RELATING TO ISSUING
2-23 DOCUMENTATION SHOWING EXPORTATION OF PROPERTY. (a) A customs
2-24 broker licensed by the comptroller or an authorized employee of the
2-25 customs broker may issue documentation certifying that delivery of
2-26 tangible personal property was made to a point outside the
2-27 territorial limits of the United States as required by Section
3-1 151.307(b)(2)(B) only if the customs broker or authorized employee:
3-2 (1) actually watches the property cross the border of
3-3 the United States;
3-4 (2) actually watches the property being placed on a
3-5 common carrier for delivery outside the territorial limits of the
3-6 United States; or
3-7 (3) verifies that the purchaser is a foreign national
3-8 who is transporting the property to a destination outside of the
3-9 territorial limits of the United States by:
3-10 (A) examining a picture identification
3-11 indicating that the purchaser of the property resides in a foreign
3-12 country;
3-13 (B) requiring the purchaser to produce the
3-14 original receipt for the property;
3-15 (C) requiring the purchaser to state the foreign
3-16 country destination of the property which must be the foreign
3-17 country in which the purchaser resides;
3-18 (D) requiring the purchaser to state the date
3-19 and time when the property is expected to arrive in the foreign
3-20 country destination;
3-21 (E) requiring the purchaser to state the date
3-22 and time the property was purchased, the name and address of the
3-23 place at which the property was purchased, the sales price and
3-24 quantity of the property, and a description of the property; and
3-25 (F) requiring the purchaser to sign a form:
3-26 (i) stating that the purchaser has
3-27 provided the information and documentation required by this
4-1 subdivision; and
4-2 (ii) that contains a notice to the
4-3 purchaser that tangible personal property not exported is subject
4-4 to taxation under this chapter and the purchaser is liable, in
4-5 addition to other possible civil liabilities and criminal
4-6 penalties, for payment of those taxes if a purchaser improperly
4-7 obtained refund of those taxes.
4-8 (b) A customs broker licensed by the comptroller or an
4-9 authorized employee of the customs broker may issue and deliver
4-10 documentation under Subsection (a) at any time after the tangible
4-11 personal property is purchased and the broker or employee completes
4-12 the process required by Subsection (a). The documentation must
4-13 include:
4-14 (1) the name and address of the customs broker;
4-15 (2) the license number of the customs broker;
4-16 (3) the name and address of the purchaser;
4-17 (4) the name and address of the place at which the
4-18 property was purchased;
4-19 (5) the date and time of the sale;
4-20 (6) a description and the quantity of the property;
4-21 (7) the sales price of the property;
4-22 (8) the foreign country destination of the property,
4-23 which may not be the place of export;
4-24 (9) the date and time:
4-25 (A) at which the customs broker or authorized
4-26 employee actually watched the property cross the border of the
4-27 United States;
5-1 (B) at which the customs broker or authorized
5-2 employee actually watched the property being placed on a common
5-3 carrier for delivery outside the territorial limits of the United
5-4 States; or
5-5 (C) the property is expected to arrive in the
5-6 foreign country destination, as stated by the purchaser;
5-7 (10) a declaration signed by the customs broker or an
5-8 authorized employee of the customs broker stating that the customs
5-9 broker is a licensed Texas customs broker; and
5-10 (11) an export certification stamp issued by the
5-11 comptroller.
5-12 (c) The comptroller may require a customs broker to pay the
5-13 comptroller the amount of any tax refunded if the customs broker
5-14 does not comply with this section, Section 151.157, or the rules
5-15 adopted by the comptroller under this section or Section 151.157.
5-16 In addition to the amount of the refunded tax, the comptroller may
5-17 require the customs broker to pay a penalty in an amount equal to
5-18 two times the amount of the refunded tax, but not less than $500
5-19 nor more than $5,000. The requirement to pay the refunded tax and
5-20 penalty is in addition to any civil or criminal penalty provided by
5-21 law.
5-22 (d) A proceeding to require a customs broker to pay an
5-23 amount under Subsection (c) is a contested case in the same manner
5-24 as a proceeding to revoke or suspend a customs broker's license
5-25 under Section 151.157(f).
5-26 (e) In this section, "customs broker" and "authorized
5-27 employee" have the meanings assigned by Section 151.157.
6-1 SECTION 3. (a) This Act takes effect September 1, 2001.
6-2 (b) The change in law made by this Act does not affect taxes
6-3 imposed before the effective date of this Act, and the law in
6-4 effect on the date the taxes were imposed is continued in effect
6-5 for purposes of the liability for and collection of those taxes.