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119-hr-3363119th CongressWALLET

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.

Sponsored By: Representative Newhouse, Dan [R-WA-4]

Introduced

Summary

Creates a tax on cargo discharged in Canada or Mexico that is then brought into the United States to bypass normal U.S. entry channels.

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  • Importers would be liable for the tax at the time of entry, calculated as 0.125% of the cargo's value as determined under U.S. customs law.
  • The tax covers cargo discharged from ocean-going vessels in Canada or Mexico that later enters the United States by rail, highway, airport, or inland port, including intact intermodal shipments and goods modified, assembled, or consolidated in those countries.
  • The bill adds a new Subchapter G to chapter 36 of the tax code and directs the Secretary to issue regulations, collection procedures, and penalties. The tax would apply to cargo entering the United States after Dec. 31, 2025.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

Importers taxed on Canada/Mexico cargo

This bill would add a small tax on some imports. Importers would pay 0.125 percent of the shipment’s customs value. It would apply when cargo is unloaded from an ocean ship in Canada or Mexico, then enters the United States. It would cover cargo arriving by rail, truck, plane, or inland port, including intact containers or goods changed or packed there. The tax would be due at entry, and the importer would be liable. It would take effect for cargo entering after December 31, 2025. Treasury would issue rules on collection and penalties.

Sponsors & CoSponsors

Sponsor

Newhouse, Dan [R-WA-4]

WA • R

Cosponsors

  • Rep. Ezell, Mike [R-MS-4]

    MS • R

    Sponsored 6/12/2025

Roll Call Votes

No roll call votes available for this bill.

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