§212-8  Exemption from taxes.  Notwithstanding any law to the contrary, sales of all products which are categorized as privileged foreign merchandise, nonprivileged foreign merchandise, domestic merchandise, or zone-restricted merchandise, and which are admitted into a foreign-trade zone, as more specifically set forth in the Act of Congress, and any rules and regulations promulgated thereunder, made directly to any common carrier in interstate or foreign commerce, or both, whether ocean-going or air, for consumption out-of-state by the crew or passengers on the shipper's vessels or airplanes, or for use out-of-state by the vessels or airplanes, shall be exempt from those taxes imposed under chapters 237, 238, 243, 244D, and 245. [L 1967, c 143, §1; HRS §212-8; am L 1985, c 16, §1; am L 1995, c 81, §1]

Attorney General Opinions

  Hawaii's general excise tax and use tax are not expressly preempted by the federal Foreign-Trade Zones Act of 1934, and Congress has not assumed exclusive regulatory powers in foreign-trade zones such that the State is preempted from imposing taxes on all activity within a foreign-trade zone.  Ultimately, whether a state tax can be applied to a particular activity within a foreign-trade zone depends on whether the tax conflicts with the purposes and objectives of the federal Act.  Att. Gen. Op. 21-01.