You need to ask him more questions.
Obviously he could look at the inventory for any BMW dealership in California to prove that the Competition Package is offered there.
It seems to me what he may really be looking for is whether your car, having been built for and sold outside of the state of California, was equipped with emissions equipment identical to a car that is built specifically to be sold in California. This is not true for all cars form all manufacturers, or at least has not been in the past. As far as I know it is true for all current and recent BMWs but I would not swear to it.
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