Rev. Rul. 60-106

Advice has been requested whether, under the circumstances described below, an individual is considered to be an importer for purposes of the manufacturers excise tax on the sale of photographic equipment.

An individual is engaged in the business of arranging to have domestic customers supplied with photographic equipment from foreign sources. Some of the equipment is of a type which is subject to the manufacturers excise tax. The individual compiles a list of foreign merchants together with the items they sell so that he may furnish prospective customers with names and addresses of the foreign suppliers. He does not order goods, handle money, or assume any responsibility regarding delivery of goods or damaged goods. The domestic customer deals directly with the foreign supplier after receiving his name and address. When a sale is made by the foreign supplier to the domestic customer, the supplier pays the individual in question a commission.

Section 4171 of the Internal Revenue Code of 1954 imposes a tax upon the sale by the manufacturer, producer, or importer of certain articles of photographic equipment (including in each case parts or accessories of such articles sold on or in connection therewith or with the sale thereof).

The applicability of the tax in the instant situation depends upon whether the individual actually imports the taxable articles and sells them within the United States.

Under the circumstances stated, since the customer deals directly with the foreign supplier, and since the individual does not order goods, handle money, or assume any responsibility whatsoever in connection with such dealings, it is held that the individual is not an importer of photographic equipment within the meaning of the Code. Therefore, such individual incurs no liability for the manufacturers excise tax with respect to commissions received from the foreign suppliers.