Form 1363 (Rev. 12-2009)
Page
2
General Instructions
Section references are to the Internal Revenue Code.
Changes To Note
You no longer have to consecutively number your exemption
certificate(s). However, you must provide proof of exportation to
the carrier along with Form 1363. See Suspension of Tax
Liability below.
Purpose of Form
File Form 1363 with the carrier to suspend the liability for the
6.25% tax on transportation of property by air. The tax is
imposed on the amount paid for the transportation of property
by air if the transportation begins and ends in the United States.
However, if you export property (including shipment to a U.S.
possession) by continuous movement, the amount you pay for
transportation of property by air is exempt from this tax.
You may use a separate Form 1363 in connection with each
payment otherwise subject to tax or, with the permission of the
Internal Revenue Service, you may use one Form 1363 as a
blanket exemption certificate.
Blanket Exemption
You may use a blanket exemption on Form 1363 if you expect to
make payments for numerous export shipments over an
indefinite period of time. You must demonstrate that it is not
practical to complete a separate Form 1363 for each payment.
Permission to use the blanket exemption should be requested
by submitting a letter to Internal Revenue Service, Excise Tax
Program, 5000 Ellin Road, Room C9-100 Mail Stop C9-207,
Lanham, MD 20706. If permission is granted, you should
complete a separate blanket certificate, for each air carrier
accepting export shipments.
Permission to use the blanket exemption, if granted, will
remain in effect until withdrawn.
Recordkeeping.—You should keep a copy with all shipping
papers and file the original with the air carrier on or before
payment of the first transportation charge to be covered by the
blanket certificate.
The air carrier should keep the original blanket certificate with
all records showing payment of the transportation charges.
Each person must keep the blanket certificate for at least 3
years after the last day of the month the final shipment covered
by the certificate was made from the point of origin. Shipping
and payment records for individual exemption items should be
kept at least 3 years after the last day of the month the shipment
was made from the point of origin.
Suspension of Tax Liability
Form 1363 as an individual or blanket exemption suspends the
liability for payment of the tax for a period of 6 months starting
from the date the property is shipped from point of origin. If you
or the person liable for the tax does not provide evidence of
exportation (see below) to the carrier within this 6-month period,
the temporary suspension of the liability for the payment of tax
ends. The carrier should then collect the tax from you or the
person who paid the transportation charge. If, after collection of
the tax, proof of exportation is later received by the carrier,
credit or refund of the tax may be obtained under section
6415(a).
Evidence of exportation.—A completed and signed Form 1363
and proof of exportation, or a statement that the documents are
available, must be furnished to the carrier by the person liable
for the tax. Proof of exportation may consist of:
● A copy of export bill of lading,
● A memorandum from the captain of the vessel, customs
official, or a foreign consignee, and/or
● A shipper’s export declaration.
Specific Instructions
The description of property to be exported should be brief. In
the case of a blanket exemption, a general description is
sufficient. If you have been granted a blanket exemption, it
applies to all products exported even though different
products may be exported later. File only one Form 1363
with the carrier.
Check the appropriate box on the form to show if this is a
blanket exemption or individual shipment exemption.
Privacy Act and Paperwork Reduction Act Notice
We ask for the information on this form to carry out the Internal
Revenue laws of the United States. We need this information to
ensure that you are complying with the revenue laws and to
allow us to figure and collect the right amount of tax. Internal
Revenue Code 4271 authorizes us to request this information.
Section 6109 requires filers to provide their social security
number or other identifying numbers. The information will be
used to suspend your liability for the tax on transportation of
property by air.
Generally, tax returns and return information are confidential,
as stated in section 6103. However, section 6103 allows or
requires the Internal Revenue Service to disclose such
information to the Department of Justice for civil and criminal
litigation, and to cities, states, the District of Columbia, and U.S.
commonwealths and possessions for use in administering their
tax laws. We may also disclose this information to other
countries under a tax treaty, to federal and state agencies to
enforce federal nontax criminal laws, or to federal law
enforcement and intelligence agencies to combat terrorism.
Failing to provide all of the requested information may forfeit any
exemption; providing false or fraudulent information may subject
you to penalties.
You do not have to provide information requested on a form
that is subject to the Paperwork Reduction Act unless the form
displays a valid OMB control number. Books or records relating
to a form or its instructions must be retained as long as their
contents may become material in the administration of any
Internal Revenue law.
The time needed to provide this information will vary
depending on individual circumstances. The estimated average
time is: Recordkeeping, 2 hr., 52 min.; Learning about the law
or the form, 12 min.; and Preparing, copying, assembling, and
sending the form to the IRS, 15 min.
If you have comments concerning the accuracy of this time
estimate or suggestions for reducing this burden, we would be
happy to hear from you. You can write to the IRS Tax Products
Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111
Constitution Ave. NW, IR-6526, Washington, DC 20224. DO NOT
file this form with this office. Instead, give the original to the
carrier and keep a copy for your records.
If a statement that the documents are available is used, the
statement must:
● Certify that the property covered by Form 1363 was
exported;
● Identify the available evidence;
● Specify the foreign destination or U.S. possession to which
the property was shipped; and,
● Give the address where the evidence is available for
inspection.
