Motor Fuel Tax Schedules And Reports Instruction (Page 14 of 43) in pdf

An “exporter” relinquishes legal possession of the fuel in another state, Canadian province, or other

foreign jurisdiction. “Legal possession” for purposes of these transactions, means “ownership” of the

fuel.

► If the out-of-state supplier or distributor to whom the fuel was sold owns the fuel when it crosses

the border going out of ND, that person is the exporter.

► If you, as the seller, own the fuel when it crosses the border going out of ND, you are the

exporter.

Whose carrier is the transporter does not of itself determine legal ownership of the fuel.

► Fuel delivered out of ND by the out-of-state purchaser’s own carrier, a common carrier hired by

the purchaser, or a contract carrier hired by the purchaser, is most likely owned by the purchaser

when it crosses the border going out of ND.

► Pursuant to a written contractual agreement between the parties, fuel delivered out of ND by a

carrier furnished by you, as the seller, may also be owned by you when it crosses the border going

out of ND.

● MN/ND Exception: A supplier licensed in both ND and MN may act as the “exporter” if the fuel

is destined for MN and the purchaser/consignee is not licensed in either ND or MN. The acting

“exporter” can then report the transaction to and pay the tax to MN without also having to report it as

a tax-paid sale in ND.

EXAMPLE:

The fuel is sold over-the-rack at a North Dakota pipeline terminal:

► The purchaser/consignee takes legal possession of the fuel in North Dakota;

► The destination for the fuel is Minnesota;

► The purchaser/consignee is not licensed in North Dakota; and

► The purchaser/consignee is not licensed in Minnesota.

The ND seller reports the transaction as an export to MN and as a tax-paid sale in MN.

Do not report the following transactions on this schedule type:

○ Gallons shipped out of ND via pipeline.

○ Gallons acquired in or coming to rest in ND and not physically removed from ND may not be

reported as exports.

EXAMPLE OF INVALID TRANSACTIONS:

A supplier or distributor has fuel storage facilities in ND:

► The supplier or distributor acquires fuel in ND or imports fuel into ND;

► The supplier or distributor has storage facilities, a billing address, or both, in another state,

Canadian province, or other foreign jurisdiction;

► The supplier or distributor reports all or part of the ND fuel as an export to its out-of-state

location but does not physically remove the fuel from ND; and

► The supplier or distributor then reports the fuel as imported back into ND based on ND sales.

○ Gallons sold in ND by your business (in other words, your business relinquished legal possession in

ND), but the fuel is destined for another state, Canadian province, or other foreign jurisdiction. The

purchaser is the exporter.

► The MN/ND exception noted in the instructions on what to report may, however, apply.

-11-

Motor Fuel Tax Schedules And Reports Instruction Page 14