[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 600 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 600

   To amend the Internal Revenue Code of 1986 to impose a tax on the 
        importation of crude oil and refined petroleum products.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 26, 1993

   Mr. English of Oklahoma 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 the 
        importation of crude oil and refined petroleum products.

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

SECTION 1. EXCISE TAX ON IMPORTED CRUDE OIL AND REFINED PETROLEUM 
              PRODUCTS.

    (a) In General.--Subtitle E of the Internal Revenue Code of 1986 
(relating to alcohol, tobacco, and certain other excise taxes) is 
amended by adding at the end thereof the following new chapter:

    ``CHAPTER 55--IMPORTED CRUDE OIL AND REFINED PETROLEUM PRODUCTS

                              ``Sec. 5885. Imposition of tax.
                              ``Sec. 5886. Average international price.
                              ``Sec. 5887. Definitions and special 
                                        rules.
                              ``Sec. 5888. Registration.

``SEC. 5885. IMPOSITION OF TAX.

    ``(a) General Rule.--If the average international price of crude 
oil for any 4-week period is less than $24, then there is hereby 
imposed an excise tax on any petroleum product entered into the United 
States for use, consumption, or warehousing during the week following 
such 4-week period.
    ``(b) Amount of Tax.--
            ``(1) In general.--The amount of tax imposed by subsection 
        (a) with respect to any barrel shall be equal to the excess 
        of--
                    ``(A) $24, over
                    ``(B) the average international price of crude oil 
                for the preceding 4-week period.
            ``(2) Fractional part of barrel.--In the case of a fraction 
        of a barrel, the tax imposed by subsection (a) shall be the 
        same fraction of the amount of such tax imposed on a whole 
        barrel.
    ``(c) Time Tax Is Imposed.--
            ``(1) In general.--The tax imposed by subsection (a) shall 
        be on the first sale within the United States of the petroleum 
        product.
            ``(2) Tax on certain uses.--If--
                    ``(A) any petroleum product entered into the United 
                States is used within the United States, and
                    ``(B) before such use, no tax was imposed under 
                subsection (a),
        then the tax imposed by subsection (a) shall be on such use.
    ``(d) Liability for Payment of Tax.--
            ``(1) Sales.--The tax imposed on the first sale described 
        in subsection (c)(1) shall be paid by the seller thereof.
            ``(2) Use.--The tax imposed on any use described in 
        subsection (c)(2) shall be paid by the person using the 
        petroleum product.

``SEC. 5886. AVERAGE INTERNATIONAL PRICE.

    ``(a) In General.--For purposes of this subchapter, the average 
international price of crude oil for any 4-week period shall be the 
average of the weighted average price per barrel of crude oil for each 
week in such period, as estimated and published in the Weekly Petroleum 
Status Report prepared by the Secretary of Energy or his delegate.
    ``(b) Publication.--The Secretary shall publish for each week the 
average international price determined under subsection (a) for the 
preceding 4-week period.

``SEC. 5887. DEFINITIONS AND SPECIAL RULES.

    ``(a) Definitions.--For purposes of this chapter--
            ``(1) Crude oil.--The term `crude oil' includes crude oil 
        condensates and natural gasoline but does not include domestic 
        crude oil (within the meaning of section 4612(a)(2)).
            ``(2) Barrel.--The term `barrel' means 42 United States 
        gallons.
            ``(3) Export.--The term `export' includes shipment to a 
        possession of the United States.
            ``(4) Petroleum product.--The term `petroleum product' 
        includes--
                    ``(A) crude oil, and
                    ``(B) refined oil, fuels, and chemical feedstocks 
                which are refined or derived from crude oil.
    ``(b) Tax-Free Exports.--
            ``(1) In general.--Under regulations prescribed by the 
        Secretary, no tax shall be imposed under this chapter on the 
        sale of any petroleum product for export or for resale by the 
        purchaser to a second purchaser for export.
            ``(2) Proof of export.--Where any petroleum product has 
        been sold free of tax under paragraph (1), such paragraph shall 
        cease to apply with respect to the sale of such petroleum 
        product unless, within the 6-month period which begins on the 
        date of the sale, the seller receives proof that the petroleum 
        product has been exported.

``SEC. 5888. REGISTRATION.

    ``Every person subject to tax under section 5885 shall register 
with the Secretary at such time and in such manner as the Secretary may 
prescribe.''
    (b) Conforming Amendment.--The table of chapters for subtitle E of 
such Code is amended by adding at the end thereof the following new 
item:

                              ``Chapter 55. Imported crude oil and 
                                        refined petroleum products.''
    (c) Deductibility of Imported Crude Oil Tax.--The first sentence of 
section 164(a) of such Code (relating to deductions for taxes) is 
amended by inserting after paragraph (5) the following new paragraph:
            ``(6) The tax on imported petroleum products imposed by 
        section 5885.''
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to sales of imported crude oil and imported refined 
petroleum products in calendar quarters beginning more than 30 days 
after the date of the enactment of this Act.

                                 <all>