119-hr3363

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3363 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 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.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 May 13, 2025

 Mr. Newhouse introduced the following bill; which was referred to the 
 Committee on Ways and Means

_______________________________________________________________________

 A BILL

 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.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CARGO CIRCUMVENTION TAX.

    (a) In General.--Chapter 36 of subtitle D of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
subchapter:

 ``Subchapter G--Cargo Circumvention Tax

``

Sec. 4499. Tax imposed.

``

SEC. 4499. TAX IMPOSED.

 ``

    (a) In General.--There is hereby imposed a tax on any United 
States-bound circumvented cargo entering the United States.
 ``

    (b) Amount of Tax.--The amount of the tax imposed by subsection

    (a) shall be an amount equal to 0.125 percent of the value (determined 
under the customs laws of the United States) of the United States-bound 
circumvented cargo involved.
 ``
            (c) Liability.--The tax imposed by subsection

    (a) shall be paid 
by the importer of the cargo entering the United States.
 ``
            (d) Time of Imposition.--The tax imposed by subsection

    (a) shall 
be imposed at the time of entry into the United States.
 ``

    (e) United States-Bound Circumvented Cargo.--For purposes of this 
section, the term `United States-bound circumvented cargo' means cargo 
which is discharged from an ocean-going vessel in Canada or Mexico and 
subsequently enters the United States by rail, highway, airport, or 
inland port, including intact intermodal cargo or cargo which is 
modified, assembled, or consolidated in Canada or Mexico.
 ``

    (f) Regulations.--The Secretary shall issue such regulations or 
other guidance as may be necessary or appropriate to carry out the 
purposes of this section, including procedures for the collection of 
the tax imposed under subsection

    (a) and penalties for non-
compliance.''.

    (b) Clerical Amendment.--The table of subchapters for chapter 36 of 
subtitle D of such Code is amended by adding at the end the following 
new item:

``Subchapter G. Cargo circumvention tax.''.
            (c) Effective Date.--The amendments made by this section shall 
apply to cargo entering the United States after December 31, 2025.
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