2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter E. Resale and Exemption Certificates › Section 151.157. Customs Brokers

Sec. 151.157.  CUSTOMS BROKERS.  (a)  A customs broker, or an authorized employee of a customs broker, licensed by the comptroller under this section may issue documentation for the purpose of showing the exemption of tangible personal property under Section 151.307(b)(2) only under procedures established by this section, Section 151.1575, and by the comptroller by rule.
(a-1)  The comptroller shall maintain a password-protected website that a customs broker, or an authorized employee of a customs broker, licensed under this section must use to prepare documentation to show the exemption of tangible personal property under Section 151.307(b)(2).  The comptroller shall require a customs broker or authorized employee to use the website to actually produce the documentation after providing all necessary information.  The comptroller shall use the information provided by a customs broker or authorized employee under this subsection as necessary to enforce this section and Section 151.307.  The comptroller may provide an alternate method to prepare documentation to show the exemption of tangible personal property under Section 151.307(b)(2) in those instances when the password-protected website is unavailable due to technical or communication problems.  A customs broker or authorized employee may use the alternate method only if the comptroller provides prior authorization for each use.
(b)  The comptroller may issue a license to a customs broker for the purpose described by Subsection (a) for each place of business of the broker if the broker:
(1)  applies to the comptroller for the license;
(2)  pays the license fee to the comptroller in the amount required by Subsection (c);
(3)  posts the bond or security in the amount required by Subsection (d);  and
(4)  complies with any rules of the comptroller to administer this section and to prevent the evasion of the tax under this chapter and local sales and use taxes.
(c)  A customs broker must pay to the comptroller an annual license fee of $300 for each place of business from which the customs broker intends to issue a certificate of export. The comptroller shall use the fees only for the administration of this section, including costs of materials, labor, and overhead.
(d)  The amount of the bond or security required by Subsection (b)(3) is $5,000, plus an additional $1,000 for each place of business from which the customs broker intends to issue exemption certificates. The security may be in the form of cash, a certificate of deposit, a letter of credit, or another instrument of value.
(e)  A customs broker licensed under this section shall make available to the comptroller, on or after the 15th day after the date the broker receives written notice from the comptroller, the customs broker's books and records relating to the business of issuing documentation certifying the export of tangible personal property beyond the territorial limits of the United States for purposes of exempting the property from the taxes imposed by this chapter.  The customs broker shall make available to the comptroller, without notice from the comptroller, the customs broker's books and records if the comptroller determines that the comptroller's ability to administer and enforce effectively the provisions of this chapter relating to documentation for the purpose of showing the exemption of tangible personal property under Section 151.307(b)(2) is jeopardized by providing notice.  The customs broker shall keep the books and records described by this subsection for at least two years after the date of the last entry that they contain.  The customs broker shall report quarterly to the comptroller:
(1)  the total value of the tangible personal property and the total amount of the corresponding tax for which the customs broker issued certificates of export;  and
(2)  the total amount of tax refunded in accordance with certificates of export.
(f)  The comptroller may suspend or revoke a license issued under this section if the customs broker does not comply with  Section 151.1575(c) or issues documentation that is false. The comptroller may determine the length of suspension or revocation necessary for the enforcement of this chapter and the comptroller's rules.  A proceeding to suspend or revoke a license under this subsection is a contested case under Chapter 2001, Government Code.  Judicial review is by trial de novo.  The district courts of Travis County have exclusive original jurisdiction of a suit under this section.
(f-1)  In addition to any other penalty provided by law, the comptroller may require a customs broker to pay to the comptroller the amount of any tax refunded and the amount of any penalty imposed under Section 151.1575(c) if the customs broker did not comply with this section or the rules adopted by the comptroller under this section.
(g)  A customs broker may authorize a person to act as an independent contractor to certify in accordance with Section 151.1575(a)(1) that tangible personal property has been exported outside of the United States only if the authorization is part of the written contract and the comptroller in writing approves the authorization.  A customs broker may not authorize a person under this subsection to prepare documentation for the purpose of showing the exemption for tangible personal property under Section 151.307(b)(2).
Text of subsec. (h) as added by Acts 1993, 73rd Leg., ch. 955, Sec. 1
(h)  In this section:
(1)  "Customs broker" means a person licensed by the United States Customs Service to act as a customs house broker.
(2)  "Authorized employee" means an employee of a customs broker:
(A)  who is authorized by the broker to perform customs transactions on behalf of the broker;
(B)  who is compensated by the broker with a regular salary or wages;
(C)  who is under the direct control and supervision of the broker; and
(D)  from whose salary or wages the broker is required to and actually does deduct and withhold a tax under federal law.
Text of subsec. (h) as added by Acts 2003, 78th Leg., ch. 1001, Sec. 1
(h)  Notwithstanding any other law, the filing of a petition to initiate judicial review does not vacate the comptroller decision that is the subject of review and does not affect the enforceability of that decision.
(i)  The comptroller shall impose a penalty of $500 for each occurrence on a customs broker who fails to file the report required by this section.
Added by Acts 1993, 73rd Leg., ch. 955, Sec. 1, eff. June 19, 1993.  Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(49), eff. Sept. 1, 1995;  Acts 1995, 74th Leg., ch. 1000, Sec. 10, eff. Oct. 1, 1995;  Acts 2003, 78th Leg., ch. 1001, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 904 (S.B. 776), Sec. 1, eff. September 1, 2011.