[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1250 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1250

    To direct the United States Trade Representative to conduct an 
investigation of the personal exemption allowance that Canada provides 
 for merchandise purchased abroad by Canadian residents, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 30, 2007

Ms. Snowe (for herself and Ms. Cantwell) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To direct the United States Trade Representative to conduct an 
investigation of the personal exemption allowance that Canada provides 
 for merchandise purchased abroad by Canadian residents, and for other 
                               purposes.

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

SECTION 1. PARITY WITH CANADA ON PERSONAL DUTY EXEMPTION.

    (a) Findings.--Congress makes the following findings:
            (1) The United States allows a $200 duty-free personal 
        exemption for United States residents traveling outside the 
        United States on trips lasting up to 48 hours. Canada allows no 
        personal exemption from duty for Canadian residents returning 
        from foreign travel lasting less than 24 hours, an exemption of 
        only $50 Canadian for foreign travel lasting between 24 and 48 
        hours.
            (2) Foreign travel by Canadian residents lasting 48 hours 
        or less is almost exclusively and necessarily to the United 
        States.
            (3) The United States Trade Representative acknowledged in 
        its 2006 National Trade Estimate Report of Foreign Trade 
        Barriers, that Canada's personal duty exemption scheme 
        ``discourages shopping visits to the United States by border 
        residents.''.
            (4) Under Chapter Twelve of the North American Free Trade 
        Agreement (NAFTA), Canada is obligated to accord to United 
        States service providers, including retail and distribution 
        service providers, treatment that is no less favorable than the 
        treatment Canada accords to its own service providers and the 
        service providers of any other country.
            (5) Despite years of objections by the United States 
        Government and retail and distribution service providers, 
        Canada has maintained its deliberately discriminatory personal 
        exemption allowance scheme.
            (6) Canada's personal exemption allowance scheme is 
        unjustifiable and burdens and restricts United States commerce.
    (b) Definitions.--In this section:
            (1) NAFTA.--The term ``NAFTA'' means the North American 
        Free Trade Agreement.
            (2) Service provider.--The term ``service provider'' has 
        the meaning given that term in Chapter Twelve of the NAFTA.
            (3) Trade representative.--The term ``Trade 
        Representative'' means the United States Trade Representative.
    (c) Mandatory Investigation.--
            (1) Initiation of investigation.--Not later than 30 days 
        after the date of the enactment of this Act, the Trade 
        Representative shall initiate an investigation of Canada's 
        personal exemption allowance scheme pursuant to title III of 
        the Trade Act of 1974 (19 U.S.C. 2411 et seq.) and shall report 
        to Congress the results of that investigation and the action 
        the Trade Representative is taking with respect to that scheme 
        under that Act.
            (2) Waiver of prior consultation.--For purposes of title 
        III of such Act, the Trade Representative shall not be required 
        to conduct consultations under section 302(b)(1)(B) of such Act 
        (19 U.S.C. 2412(b)(1)(B)) before making a determination under 
        such Act with respect to Canada's personal exemption allowance 
        scheme.
                                 <all>