IRS Form 1363 – Export Exemption Certificate – In the world of international trade and logistics, navigating U.S. tax regulations is crucial for businesses involved in exporting goods. One key document that helps exporters avoid unnecessary taxes is IRS Form 1363, also known as the Export Exemption Certificate. This form allows shippers to suspend the federal excise tax on air transportation of property destined for export. Whether you’re a small business owner shipping products overseas or a logistics manager handling bulk exports, understanding Form 1363 can save your company time and money. In this comprehensive guide, we’ll cover everything you need to know about IRS Form 1363, including its purpose, how to file it, and recent updates for 2026.
What Is IRS Form 1363?
IRS Form 1363 is an official certificate used to exempt certain air shipments from the 6.25% federal excise tax imposed under Section 4271 of the Internal Revenue Code. This tax applies to amounts paid for the transportation of property by air when the journey begins and ends in the United States. However, if the property is being exported—including to U.S. possessions like Puerto Rico or Guam—by continuous movement, the tax can be suspended using this form.
The form serves as evidence that the shipment is intended for export, allowing the carrier (such as an airline or freight forwarder) to forgo collecting the tax upfront. Without this certificate, exporters might face the full tax burden, even if the goods ultimately leave the country. Form 1363 is particularly relevant for industries like manufacturing, agriculture, and e-commerce that rely on air freight for international deliveries.
Key features of Form 1363 include:
- Revision Date: The current version is revised as of August 2021, with no major changes reported through early 2026.
- OMB Number: 1545-0685, indicating it’s approved under the Paperwork Reduction Act.
- Download Link: You can access the official PDF directly from the IRS website here.
Purpose of the Export Exemption Certificate
The primary goal of Form 1363 is to suspend tax liability for six months from the shipment’s origin date, giving exporters time to provide proof of exportation. If proof isn’t submitted within this period, the suspension ends, and the carrier must collect the tax. However, if evidence is provided later, a credit or refund may be claimed under Section 6415(a).
This form is tied to broader excise tax rules outlined in IRS Publication 510, which covers taxes on various fuels and transportation services. For air transportation of property, the 6.25% tax only applies to domestic segments, but exports are exempt if properly documented. Other related exemptions include cropdusting, aerial firefighting, and certain helicopter uses, but Form 1363 specifically targets export scenarios.
Who Needs to File IRS Form 1363?
Form 1363 is typically filed by the shipper or the entity on whom the tax is imposed—often the person or business paying for the air transportation. This could include:
- Exporters shipping goods to foreign countries.
- Businesses sending products to U.S. possessions.
- Logistics providers handling international freight.
The carrier (e.g., the airline) receives the form but does not file it with the IRS. Instead, they retain it as part of their records to justify not collecting the tax. If you’re involved in “flash title transactions” (where a position holder sells kerosene or fuel to a reseller who then supplies it to an aircraft operator), similar certification rules apply, but Form 1363 is more directly for property transport.
Note: This form is not required for transportation of persons by air or for fuel taxes on exported kerosene/aviation fuel, which have separate exemption processes.
Types of Exemptions: Individual vs. Blanket
Form 1363 offers flexibility with two exemption types:
- Individual Exemption: For a single shipment. Ideal for one-off exports.
- Blanket Exemption: For multiple shipments over an indefinite period, if filing individually is impractical. Requires prior IRS approval via a letter request sent to: Department of the Treasury, Internal Revenue Service, Mail Stop 5701G, Cincinnati, OH 45999.
For blanket exemptions, include the date of the IRS approval letter on the form. Once approved, a separate certificate is needed for each carrier, and it remains valid until withdrawn.
How to Fill Out IRS Form 1363: Step-by-Step Guide?
Completing Form 1363 is straightforward but requires accurate details to avoid penalties. Here’s a breakdown based on the form’s sections:
- Header and Type Selection: Check the box for “Individual Exemption” or “Blanket Exemption.”
- Shipper Information: Enter your name, Taxpayer Identification Number (TIN, such as EIN or SSN), and full address.
- Carrier Information: Provide the carrier’s name and address.
- Blanket Approval (if applicable): Note the date of the IRS permission letter.
- Property Details:
- Commodity description (brief and general for blankets).
- Weight.
- Date shipped from origin.
- Point of origin.
- Port of exportation.
- Transportation Charges: Date paid and amount.
- Declaration and Signature: Sign under penalties of perjury, affirming the shipment is for export based on a pre-existing contract. Include your title and date.
Do not number certificates consecutively, and file only one per exemption type with the carrier.
Filing and Submission Process
Unlike many IRS forms, Form 1363 is not submitted directly to the IRS. Instead:
- Provide the original to the carrier on or before the first payment for transportation charges.
- Keep a copy with your shipping papers.
For proof of exportation (required within six months), attach evidence such as:
- Export bill of lading.
- Shipper’s export declaration.
- Certificate from a customs official or foreign consignee.
Records must be retained for at least three years after the last day of the month of the final shipment.
Recordkeeping and Penalties
Maintain detailed records, including copies of Form 1363 and export proofs, for IRS audits. Failure to provide evidence within six months triggers tax collection by the carrier. Providing false information can lead to penalties under the Internal Revenue Code.
Estimated burden per the Paperwork Reduction Act: About 5 hours total (recordkeeping, learning, preparing).
Recent Updates for 2026
As of January 2026, there are no recent developments or revisions to Form 1363. However, related excise taxes have seen adjustments:
- The domestic segment fee for air transportation increased to $5.30 due to inflation.
- No changes to the 6.25% property transportation tax rate.
- Broader excise tax relief for deposits in Q1-Q3 2026 under Notice 2025-55.
Always check IRS.gov for the latest, as legislation like the One Big Beautiful Bill Act (2025) may impact related rules.
Common Mistakes to Avoid When Using Form 1363
- Incomplete Details: Ensure all fields, especially commodity and export port, are filled accurately.
- Missing Proof: Delaying export evidence beyond six months can result in retroactive tax liability.
- Incorrect Type: Don’t use a blanket without IRS approval.
- Filing with IRS: Remember, this goes to the carrier, not the government.
FAQs About IRS Form 1363
1. What if my shipment isn’t exported?
You must pay the tax if proof isn’t provided within six months. Refunds are possible later with evidence.
2. Can I use Form 1363 for fuel exports?
No, fuel exemptions (e.g., kerosene for aviation) use different certificates, though similar proofs apply.
3. Is there an electronic filing option?
Currently, Form 1363 is paper-based and given directly to the carrier.
4. How does this relate to other excise taxes?
It’s part of the air transportation taxes in Publication 510, separate from fuel or passenger transport taxes.
Conclusion
IRS Form 1363 is an essential tool for exporters seeking to minimize tax burdens on air shipments. By properly completing and filing this certificate, businesses can ensure compliance while optimizing costs. For the most accurate advice, consult a tax professional or visit the IRS website. Download the form today and streamline your export process in 2026.