Export Sales (Rescinded October 30, 2002)

AUTHORITY: section 144.270, RSMo 1994. Original rule filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed April 1, 2002, effective Oct. 30, 2002. Kaiser Aluminum & Chemical Sales v. Director of Revenue, Case No. RS-82-0303 (A.H.C. 10/28/83). The issue in this case was whether or not certain bricks shipped from a Missouri plant were subject to Missouri sales tax. It was necessary for the commission to determine where the sale took place. When no specific provision for the passage of title is contained in the agreement between the parties, the commission must look to other evidence such as industry practice, passage of risk of loss, party paying transportation costs and method and time of payment. The commission cited Kurtz Concrete, Inc. v. Spradling, 560 SW2d 858 (Mo. banc 1978) and Frontier Bag, Inc. v. Director of Revenue, Case No. R-80-0073 (A.H.C. 11/12/81). Finding that the goods were shipped F.O.B. from Mexico, Missouri, the commission held that petitioner manifested an intent to have title pass to the buyer at the time and place of shipment. The commissioner looked to section 400.2-401(2)(a), RSMo (1978) (Uniform Commercial Code) in reaching this conclusion. Therefore, the sale did take place in Missouri and tax was applicable.