By Raymond H.B. No. 3571
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
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. Section 151.157, Tax Code, is amended by amending
1-5 Subsection (e) to read as follows:
1-6 (e) A customs broker licensed under this section shall make
1-7 available to the comptroller, on or after the 15th day after the
1-8 date the broker receives written notice from the comptroller, the
1-9 customs broker's books and records relating to the business of
1-10 issuing documentation certifying the export of tangible personal
1-11 property beyond the territorial limits of the United States for
1-12 purposes of exempting the property from the taxes imposed by this
1-13 chapter. The customs broker shall make available to the
1-14 comptroller, without notice from the comptroller, the customs
1-15 broker's books and records if the comptroller determines that the
1-16 comptroller's ability to administer and enforce effectively the
1-17 provisions of this chapter relating to documentation for the
1-18 purpose of showing the exemption of tangible personal property
1-19 under Section 151.307(b)(2) is jeopardized by providing notice.
1-20 The customs broker shall keep the books and records described by
1-21 this subsection for at least four [two] years after the date of the
1-22 last entry that they contain.
1-23 SECTION 2. Subchapter E, Chapter 151, Tax Code, is amended
2-1 by adding Section 151.1575 to read as follows:
2-2 Sec. 151.1575. EXPORT VERIFICATION CENTER. (a) To be
2-3 designated as an export verification center as defined in
2-4 Subsection (h) of this section, a location must:
2-5 (1) be licensed by the comptroller;
2-6 (2) be operated by a person licensed by the
2-7 comptroller; and
2-8 (3) comply with any rules prescribed by the
2-9 comptroller to administer this section and to prevent evasion of
2-10 the tax under this chapter and local sales and use taxes.
2-11 (b) A customs broker is required to work through or with an
2-12 export verification center as defined in Subsection (h) of this
2-13 section to verify that tangible personal property is exported
2-14 outside the territorial limits of the United States. The
2-15 comptroller may revoke or suspend a license issued under Section
2-16 151.157 if a customs broker licensed under Section 151.157 is in
2-17 violation of this subsection.
2-18 (c) A customs broker shall pay the monthly cost of the
2-19 export verification center in accordance with the ratio that the
2-20 number of export vouchers submitted to the location by the broker
2-21 during the month bears to the total number of export vouchers
2-22 submitted to that location by all customs brokers during that
2-23 month.
2-24 (d) On receipt of an export voucher, the export verification
2-25 center through which the customs broker conducts his business shall
2-26 verify that the tangible personal property that is listed on the
3-1 export voucher was actually exported outside the territorial limits
3-2 of the United States, and attach to the export voucher, a stamp
3-3 issued under Section 151.158 and return the stamped export voucher
3-4 to the customs broker.
3-5 (e) A customs broker may not issue documentation for the
3-6 purpose of showing the exemption of tangible personal property
3-7 under Section 151.307(b)(2) unless the broker receives a stamped
3-8 export voucher that verifies exportation of the property in
3-9 accordance with Subsection (d).
3-10 (f) An export verification center shall make available to
3-11 the comptroller, on or after the 15th day after the date the center
3-12 receives notice from the comptroller, the center's books and
3-13 records relating to the business of verifying the export of
3-14 tangible personal property beyond the territorial limits of the
3-15 United States for purposes of exempting the property from the taxes
3-16 that are imposed by this chapter. The export verification center
3-17 shall make available to the comptroller, without notice from the
3-18 comptroller, the center's books and records if the comptroller
3-19 determines that the comptroller's ability to administer and enforce
3-20 effectively the provisions of this chapter relating to verification
3-21 for the purpose of showing the exemption of tangible personal
3-22 property under section 151.307(b)(2) is jeopardized by providing
3-23 notice. The export verification center shall keep the books and
3-24 records described by this subsection for at least four years after
3-25 the date of the last entry that they contain.
3-26 (g) An export verification center shall file a report that
4-1 identifies tangible personal property that has been exported beyond
4-2 the territorial limits of the United States and the amount of tax
4-3 for which an export voucher is issued and any other information the
4-4 comptroller may require.
4-5 (h) In this section:
4-6 (1) "Export verification center" means a facility
4-7 operated by a person licensed by the comptroller at a location
4-8 approved by the comptroller for the purpose of verifying that
4-9 tangible personal property is exported beyond the territorial
4-10 limits of the United States.
4-11 (2) "Export voucher" means a document provided by a
4-12 customs broker licensed under Section 151.157 for the purpose of
4-13 identifying tangible personal property that is intended to be
4-14 exported beyond the territorial limits of the United States. The
4-15 export voucher shall be in a form prescribed by the comptroller.
4-16 SECTION 3. Section 151.158, Tax Code, is amended by amending
4-17 Subsections (c), (e), and (f) to read as follows:
4-18 (c) The comptroller shall require that the stamps be
4-19 manufactured so that a stamp may be easily and securely attached to
4-20 an export voucher in accordance with Section 151.1575
4-21 [documentation].
4-22 (e) The comptroller may provide stamps only to the person
4-23 licensed by the comptroller to operate an export verification
4-24 center or to an authorized representative of that person [a customs
4-25 broker licensed under Section 151.157].
4-26 (f) A stamp is invalid if transferred to a person other than
5-1 the person licensed by the comptroller to operate an export
5-2 verification center [customs broker] to whom the comptroller issued
5-3 the stamp or[,] to an authorized representative [employee] of that
5-4 person [customs broker, or to an authorized independent
5-5 contractor].
5-6 SECTION 4. Section 151.159, Tax Code, is amended by amending
5-7 Subsection (b) to read as follows:
5-8 (b) The comptroller may issue an export identification card
5-9 to a wholesaler or retailer. The card must contain the picture of
5-10 the person to whom the card is issued. The comptroller may issue
5-11 the card only if the wholesaler or retailer shows by clear and
5-12 convincing evidence that the wholesaler or retailer is a citizen
5-13 and resident of a foreign country and that any tangible personal
5-14 property purchased in this state by the wholesaler or retailer is
5-15 for export purposes only and is to be used or consumed outside the
5-16 territorial limits of the United States. A wholesaler or retailer
5-17 issued an export identification card may use the card only to
5-18 facilitate the preparation of documentation and attached export
5-19 vouchers by a customs broker under Section 151.307(b). The
5-20 comptroller may require a wholesaler or retailer applying for an
5-21 export identification card to submit any information in any form
5-22 the comptroller determines is necessary and to pay for the cost of
5-23 issuing the card.
5-24 SECTION 5. Section 151.307, Tax Code, is amended to read as
5-25 follows:
5-26 (a) Tangible personal property or a service that this state
6-1 is prohibited from taxing by the law of the United States, the
6-2 United States Constitution, or the Constitution of Texas is
6-3 exempted from the taxes imposed by this chapter.
6-4 (b) When an exemption is claimed because tangible personal
6-5 property is exported beyond the territorial limits of the United
6-6 States, proof of export may be shown only by:
6-7 (1) a bill of lading issued by a licensed and
6-8 certificated carrier of persons property showing the seller as
6-9 consignor, the buyer as consignee, and a delivery point outside the
6-10 territorial limits of the United States;
6-11 (2) documentation and attached export vouchers:
6-12 (A) provided by a United States Customs Broker
6-13 licensed by the comptroller under Section 151.157;
6-14 (B) certifying that delivery was made to a point
6-15 beyond the territorial limits of the United States; [and]
6-16 (C) to which a stamp issued under Section
6-17 151.158 is affixed in the manner required by that section or
6-18 Section 151.157; and
6-19 (D) accompanied by documents from an export
6-20 verification center;
6-21 (3) import documents from the country of destination
6-22 showing that the property was imported into a country other than
6-23 the United States;
6-24 (4) an original airway, ocean, or railroad bill of
6-25 lading and a forwarder's receipt if an air, ocean, or rail freight
6-26 forwarder takes possession of the property; or
7-1 (5) any other manner provided by the comptroller or an
7-2 enterprise authorized to make tax free purchases under Section
7-3 151.156.
7-4 [(c) Documentation, including the stamp affixed to the
7-5 documentation, that is provided by a customs broker licensed by the
7-6 comptroller under Section 151.157 is presumed valid in the absence
7-7 of clear and convincing evidence that the tangible personal
7-8 property covered by the documentation was not exported outside the
7-9 territorial limits of the United States.]
7-10 [(d) A retailer who receives documentation under Subsection
7-11 (b)(2) relating to the purchase of tangible personal property
7-12 exported beyond the limits of the United States may not refund the
7-13 tax paid under this chapter on that purchase before:]
7-14 [(1) the 24th hour after the hour stated as the time
7-15 of export on the documentation, if the retailer is located in a
7-16 country that borders the United Mexican States; or]
7-17 [(2) the seventh day after the day stated as the date
7-18 of export on the documentation, if the retailer is located in a
7-19 county that does not border the United Mexican States.]
7-20 (c) [(e)] A retailer who makes a refund [before the time
7-21 prescribed by Subsection (d) or makes a refund] that is
7-22 undocumented or improperly documented is liable for the amount of
7-23 the tax refunded with interest.
7-24 (d) [(f)] In this section:
7-25 (1) "Air forwarder" means a licensed International Air
7-26 Transportation Association freight forwarder.
8-1 (2) "Export verification center" has the meaning
8-2 assigned by Section 151.1575.
8-3 (3) "Export voucher" has the meaning assigned by
8-4 Section 151.1575.
8-5 (4) [(2)] "Ocean forwarder" means a licensed Federal
8-6 Maritime Commission freight forwarder.
8-7 SECTION 6. Section 151.712, Tax Code, is amended by amending
8-8 Subsections (a), (b), (f), (g), and (i) to read as follows:
8-9 (a) A person may not sign or certify proof of export
8-10 documentation for the purpose of showing an exemption under Section
8-11 151.307(b)(2) unless:
8-12 (1) the person is:
8-13 (A) a customs broker licensed by the comptroller
8-14 under Section 151.157; or
8-15 (B) an authorized employee of a customs broker
8-16 licensed by the comptroller under Section 151.157; and
8-17 (2) the tangible personal property the export of which
8-18 the person certifies is exported on the date and to the place shown
8-19 on the export voucher attached to the export documentation signed
8-20 by the person.
8-21 (b) A person who provides proof of documentation that
8-22 tangible personal property has been exported outside the United
8-23 States or a person who may benefit from the provision of the proof
8-24 of documentation, including a customs broker, authorized employee,
8-25 a person licensed by the comptroller to operate an export
8-26 verification center or an authorized representative of that person
9-1 [authorized independent contractor], seller of the property or
9-2 agent or employee of the seller, or a consumer of the property or
9-3 agent or employee of the consumer, may not sell or buy the proof of
9-4 documentation, including an export voucher or stamps required for
9-5 the documentation. This subsection does not apply to:
9-6 (1) a customs broker who accepts a fee for providing
9-7 documentation under Section 151.307(b); or
9-8 (2) a person licensed by the comptroller to operate an
9-9 export verification center that accepts payments and through which
9-10 customs brokers operate.
9-11 (f) In addition to any monetary penalty under this section,
9-12 the comptroller shall require the person to pay the state any tax
9-13 revenue that is lost by the state due to that person's actions,
9-14 with interest, and may:
9-15 (1) suspend or revoke under Section 151.157 the
9-16 license of the customs broker who violates this section; or
9-17 (2) suspend or revoke the license of the person
9-18 licensed by the comptroller to operate an export verification
9-19 center under Section 151.1575.
9-20 (g) A proceeding to impose a civil penalty or suspend or
9-21 revoke a license or designation because of a violation of this
9-22 section is a contested case under Chapter 2001, Government Code.
9-23 Judicial review is by trial de novo. The district courts of Travis
9-24 County have exclusive original jurisdiction of a suit under this
9-25 section.
9-26 (i) In this section:
10-1 (1) "Authorized[, "customs broker" and "authorized]
10-2 employee" has [have] the meaning [meanings] assigned by Section
10-3 151.157.
10-4 (2) "Customs broker" has the meaning assigned by
10-5 Section 151.157.
10-6 (3) "Export verification center" has the meaning
10-7 assigned by Section 151.1575.
10-8 (4) "Export voucher" has the meaning assigned by
10-9 Section 151.1575.
10-10 SECTION 7. Section 151.713, Tax Code, is amended by amending
10-11 Subsections (a), (g), and (h) to read as follows:
10-12 (a) A person may not obtain or attempt to obtain export
10-13 documentation or an export voucher for the purpose of showing an
10-14 exemption under Section 151.307(b)(2) from a customs broker, [or]
10-15 an authorized employee of a customs broker, a person licensed by
10-16 the comptroller to operate an export verification center or an
10-17 authorized representative of that person if the person knows, at
10-18 the time the documentation or voucher is sought, that the
10-19 information provided to the broker, [or] employee, a person
10-20 licensed by the comptroller to operate an export verification
10-21 center or an authorized representative of that person is materially
10-22 false, in whole or in part, and the documentation or export voucher
10-23 is sought for the purpose of evading the tax imposed by this
10-24 chapter.
10-25 (g) In addition to any monetary penalty under this section,
10-26 the comptroller shall require the person to pay to the state any
11-1 tax revenue lost to this state due to the person's actions. The
11-2 penalty imposed by this section is in addition to any other tax,
11-3 penalty, and interest that may be assessed against a person who
11-4 violates this section.
11-5 (h) In this section:
11-6 (1) "Authorized[, "customs broker" and "authorized]
11-7 employee" has [have] the meaning [meanings] assigned by Section
11-8 151.157.
11-9 (2) "Customer broker" has the meaning assigned by
11-10 Section 151.157.
11-11 (3) "Export verification center" has the meaning
11-12 assigned by Section 151.1575.
11-13 (4) "Export voucher" has the meaning assigned by
11-14 Section 151.1575.
11-15 SECTION 8. This act takes effect January 1, 2002.