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HB 3398

Relating to the requirements for issuance of export documentation by a customs broker for purposes of sales and use taxes.

89th Legislature (2025) Introduced by J.M. Lozano

HB 3398 modifies customs broker documentation requirements for Texas export goods to streamline sales tax exemption processes for businesses shipping items out of state.

Referred to Ways & Means
#customsbrokers(s0526) #taxation--sales(i0800) #water--navigation&ports(i0880)
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Bill Summary · HB 3398

Legislative bill overview

HB 3398 modifies the requirements that customs brokers must meet when issuing export documentation in Texas, specifically relating to how sales and use taxes are handled on exported goods. The bill adjusts the documentation and certification standards customs brokers must satisfy to properly exempt exported items from Texas sales and use taxes. This appears to streamline or clarify the process for businesses exporting goods to receive appropriate tax treatment.

Why is this important

Export businesses rely on proper documentation to avoid paying sales and use taxes on goods leaving Texas, which directly affects their competitiveness and profit margins. Clarifying these requirements helps prevent disputes with tax authorities while reducing compliance costs for exporters and customs brokers. Given Texas's significant export economy, even small changes to these procedures can impact numerous businesses across multiple industries.

Potential points of contention

  • Customs broker qualification standards: Changes to what brokers must demonstrate or certify could affect which businesses qualify to handle exports, potentially raising barriers for smaller brokers or creating licensing complications
  • Tax revenue implications: Streamlining export exemptions might reduce state sales tax collection if previously unclaimed exemptions become more accessible, affecting state revenue forecasts
  • Documentation burden shifting: Requirements could shift administrative responsibilities between customs brokers, exporters, and tax authorities, creating disagreement over who bears compliance costs

Compiled from official sources — confirm details with the bill’s official record.

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