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H.R. 3363: To amend the Internal Revenue Code of 1986 to impose a tax on United States-bound circumvented cargo through Canada or Mexico and entering the United States.

This bill proposes to amend the Internal Revenue Code to introduce a new tax on cargo that is brought into the United States after first being discharged at ports in Canada or Mexico. This process is often referred to as "circumventing" U.S. customs and tariffs. Here are the key elements of the bill:

Cargo Circumvention Tax

General Overview

Under Chapter 36 of the Internal Revenue Code, a new subchapter is added concerning a cargo circumvention tax.

Tax Imposition

  • Tax on Cargo: A tax will be imposed on United States-bound cargo that is circumvented through Canada or Mexico before entering the U.S.
  • Tax Rate: The tax rate will be set at 0.125 percent of the cargo's value, which is determined according to U.S. customs laws.
  • Liability for Tax: The importer of the cargo will be responsible for paying this tax.
  • Time of Imposition: The tax will be applied at the time the cargo enters the United States.

Definition of United States-Bound Circumvented Cargo

The term "United States-bound circumvented cargo" is defined as any cargo that is unloaded from a ship in Canada or Mexico and then transported into the U.S. by any means, including truck, train, or airplane. This includes cargo that is left intact as well as cargo that is modified or combined with other goods while in Canada or Mexico.

Regulatory Guidance

The Secretary of the Treasury is tasked with issuing necessary regulations to implement this tax, which includes establishing procedures for tax collection and penalties for those who do not comply with the new tax requirement.

Clerical Amendment

A clerical amendment will be made to the table of subchapters for Chapter 36, which will include the newly created subchapter concerning the cargo circumvention tax.

Effective Date

The new tax provisions will take effect for cargo entering the United States after December 31, 2025.

Relevant Companies

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This is an AI-generated summary of the bill text. There may be mistakes.

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Sponsors

2 bill sponsors

Actions

2 actions

Date Action
May. 13, 2025 Introduced in House
May. 13, 2025 Referred to the House Committee on Ways and Means.

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