PRIA Logo™
Title 26, Internal Revenue CodeRelease 119-110

§4671 Imposition of Tax

Title 26 › Subtitle D — Miscellaneous Excise Taxes › CHAPTER 38 — ENVIRONMENTAL TAXES › Subchapter C — Tax on Certain Imported Substances › § 4671

Last updated Sep 22, 2026|Official source

Summary

Importers must pay a tax when they sell or use certain taxable substances they bring into the United States. Usually the tax equals what would be charged under section 4661 on the chemicals used to make that substance, as if those chemicals were sold here. If the importer does not give the Secretary (the tax official) enough information when and how the Secretary requires, the tax is 10% of the appraised value when the goods were entered for consumption, use, or warehousing. The Secretary can also set a different rate for a substance that equals the tax if it were made by the main method of production. No tax is charged here if the same sale or use is already taxed under sections 4611 or 4661. Similar rules for tax-free sales, refunds, or credits apply when the substance is used as fuel or to make fertilizer or animal feed, following parts of section 4662. No tax applies after December 31, 2031.

Full Legal Text

Title 26, §4671

Internal Revenue Code, Source: USLM XML via OLRC

(a)General rule
There is hereby imposed a tax on any taxable substance sold or used by the importer thereof.
(b)Amount of tax
(1)In general
Except as provided in paragraph (2), the amount of the tax imposed by subsection (a) with respect to any taxable substance shall be the amount of the tax which would have been imposed by section 4661 on the taxable chemicals used as materials in the manufacture or production of such substance if such taxable chemicals had been sold in the United States for use in the manufacture or production of such taxable substance.
(2)Rate where importer does not furnish information to Secretary
If the importer does not furnish to the Secretary (at such time and in such manner as the Secretary shall prescribe) sufficient information to determine under paragraph (1) the amount of the tax imposed by subsection (a) on any taxable substance, the amount of the tax imposed on such taxable substance shall be 10 percent of the appraised value of such substance as of the time such substance was entered into the United States for consumption, use, or warehousing.
(3)Authority to prescribe rate in lieu of paragraph (2) rate
The Secretary may prescribe for each taxable substance a tax which, if prescribed, shall apply in lieu of the tax specified in paragraph (2) with respect to such substance. The tax prescribed by the Secretary shall be equal to the amount of tax which would be imposed by subsection (a) with respect to the taxable substance if such substance were produced using the predominant method of production of such substance.
(c)Exemptions for substances taxed under section 4611 and 4661
No tax shall be imposed by this section on the sale or use of any substance if tax is imposed on such sale or use under section 4611 or 4661.
(d)Tax-free sales, etc. for substances used as certain fuels or in the production of fertilizer or animal feed
Rules similar to the following rules shall apply for purposes of applying this section with respect to taxable substances used or sold for use as described in such rules:
(1)Paragraphs (2), (5), and (9) of section 4662(b) (relating to tax-free sales of chemicals used as fuel or in the production of fertilizer or animal feed).
(2)Paragraphs (2), (3), and (4) of section 4662(d) (relating to refund or credit of tax on certain chemicals used as fuel or in the production of fertilizer or animal feed).
(e)Termination
No tax shall be imposed by this section after December 31, 2031.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2021—Subsec. (b)(2). Pub. L. 117–58, § 80201(b)(2), substituted “10 percent” for “5 percent”. Subsec. (e). Pub. L. 117–58, § 80201(a)(2), amended subsec. (e) generally. Prior to amendment, text read as follows: “No tax shall be imposed under this section during any period during which the Hazardous Substance Superfund financing rate under section 4611 does not apply.” 1986—Subsec. (e). Pub. L. 99–509 substituted “the Hazardous Substance Superfund financing rate under section 4611 does not apply” for “no tax is imposed under section 4611(a)”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2021 AmendmentAmendment by Pub. L. 117–58 effective July 1, 2022, see section 80201(d) of Pub. L. 117–58, set out as a note under section 4661 of this title.

Effective Date

of 1986 AmendmentAmendment by Pub. L. 99–509 effective on commencement date as defined in former section 4611(f)(2), see section 8032(d) of Pub. L. 99–509, set out as a note under section 4611 of this title.

Effective Date

Pub. L. 99–499, title V, § 515(c), Oct. 17, 1986, 100 Stat. 1769, provided that: “The

Amendments

made by this section [enacting this subchapter] shall take effect on January 1, 1989.” Study and Report Pub. L. 99–499, title V, § 515(d), Oct. 17, 1986, 100 Stat. 1769, directed the Secretary of the Treasury or his delegate to conduct a study of issues relating to the implementation of the tax imposed by this section and certain credit for exports of taxable substances, and report to Congress not later than Jan. 1, 1988.

Reference

Citations & Metadata

Citation

26 U.S.C. § 4671

Title 26, Internal Revenue Code

Last Updated

Sep 22, 2026

Release point: 119-110