119 HR 3363 IH: 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. U.S. House of Representatives 2025-05-13 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I119th CONGRESS1st SessionH. R. 3363IN THE HOUSE OF REPRESENTATIVESMay 13, 2025Mr. Newhouse introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo 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.

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: G

Cargo circumvention tax

Sec. 4499. Tax imposed.

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.