Reg. § 48.6416(b)(2)-2 Exportations, uses, sales, and resales included.
(a) In general The tax paid under chapter 32 (or under section or (d) in respect of sales or under section ) with respect to any article is considered to be an overpayment in the case of any exportation, use, sale, or resale described in this section. This section applies only in those cases in which the exportation, use, sale, or resale (or any combination thereof) referred to in this section occurs before any other use. In addition, the following restrictions must be taken into account in applying the regulations under section :
(1) Sections and (D) do not apply to any tax paid under section (gas guzzler tax).
(2) Sections , (C), and (D) do not apply to any tax paid under section (vaccine tax) and section applies only to the extent prescribed in of this section.
(3) Section does not apply to any tax paid under section or on diesel fuel or kerosene, section 4091 (aviation fuel tax), or section (coal tax).
(4) Beginning on January 1, 2013, sections , (C), (D), and (E) do not apply to any tax paid under section (medical device tax).
(b) Exportation of tax-paid articles
(1) In general Subject to the limitations of section and of this section, tax paid under chapter 31 or 32 on the sale of any article will be considered to be an overpayment under section if the article is exported by any person. Except in the case of articles subject to the tax imposed by section 4061(a), prior to April 1, 1983, it is immaterial for purposes of this , whether the person who made the taxable sale had knowledge at the time of the sale that the article or fuel was being purchased for export to a foreign country or shipment to a possession of the United States. See for the circumstances under which a claim for refund by reason of the exportation of an article may be claimed by the exporter or shipper, rather than by the person who paid the tax. For definition of the term “possession of the United States”, see .
(2) Rule for exportation of vaccines of this section applies to tax paid under section on the sale of a vaccine, but only if the sale by the manufacturer occurs after August 10, 1993, and, in the case of vaccine sold to the United States or any of its agencies or instrumentalities, the condition of is satisfied.
(c) Supplies for vessels or aircraft A payment of tax under chapter 32 on the sale of any article, or under section (a)(1) or (a)(2) on the sale of diesel fuel or special motor fuel, will be considered to be an overpayment under section if the article or fuel is used by any person, or is sold by any person for use by the purchaser, as supplies for vessels or aircraft.
The term “supplies for vessels or aircraft”, as used in this paragraph, has the same meaning as when used in sections , , , and , and the regulations thereunder.
(d) Use by State or local government A payment of tax under chapter 32 on the sale of any article, or under section (a)(1) or (a)(2) on the sale of diesel fuel or special motor fuel, will be considered to be an overpayment under section if the article of fuel is sold by any person to a State, any political subdivision thereof, or the District of Columbia for the exclusive use of a State, any political subdivision thereof, or the District of Columbia. For provisions relating to tax-free sales to a State, any political subdivision thereof, or the District of Columbia, see section and the regulations thereunder.
(e) Use by nonprofit educational organization A payment of tax under chapter 32 on the sale of any article, or under section (a)(1) or (a)(2) on the sale of diesel fuel or special motor fuel, will be considered to be an overpayment under section if the article or fuel is sold by any person to a nonprofit educational organization for its exclusive use. The term “nonprofit educational organization”, as used in this , has the same meaning as when used in section (a)(5) or (d)(5), whichever applies, and the regulations thereunder.
(f) Tax-paid tires or inner tubes resold for use in further manufacture A payment of tax under section on the sale of a tire or, prior to January 1, 1984, on the sale of an inner tube will be considered to be an overpayment under section if—
(1) The tire or inner tube is, after the original sale of the article by the manufacturer, resold by any person to another manufacturer;
(2) The other manufacturer sells the tire or inner tube on or in connection with, or with the sale of, any other article manufactured or produced by the other manufacturer; and
(3) That other article is by any person either—
(i) Exported to a foreign country or to a possession of the United States,
(ii) Sold to a State, any political subdivision thereof, or the District of Columbia for the exclusive use of a State, any political subdivision thereof, or the District of Columbia,
(iii) Sold to a nonprofit educational organization for its exclusive use, or
(iv) Used or sold for use as supplies for vessels or aircraft.
The overpayment described in this is to be distinguished from the overpayment described in section prior to amendment by the Highway Revenue Act of 1982 and section as amended by the Highway Revenue Act of 1982, and in that the overpayment here described arises from a “resale” for the use described in this paragraph, while the section overpayment arises from the “use” of tires or inner tubes in the manufacture of other articles by a subsequent manufacturer who purchases tax-paid tires or tubes and disposes of finished articles on the basis of one of the exemptions set forth in section . A manufacturer claiming a credit or refund under this must have substantially the same information available in support of the claim as is required under in support of exempt sales of tires or inner tubes under the provisions of section , except that none of the parties involved need be registered under section .
[T.D. 8043, 50 FR 32027, Aug. 8, 1985, as amended by T.D. 8561, 59 FR 43045, Aug. 22, 1994; T.D. 8659, 61 FR 10463, Mar. 14, 1996; T.D. 8879, 65 FR 17160, Mar. 31, 2000; T.D. 9604, 77 FR 72938, Dec. 7, 2012]