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Title 26, Internal Revenue CodeRelease 119-110

§7653 Shipments From the United States

Title 26 › Subtitle F — Procedure and Administration › CHAPTER 78 — DISCOVERY OF LIABILITY AND ENFORCEMENT OF TITLE › Subchapter D — Possessions › § 7653

Last updated Sep 22, 2026|Official source

Summary

U.S.-made goods sent into Puerto Rico must be entered at the port and pay a tax equal to the internal revenue tax Puerto Rico charges on similar local goods. The Virgin Islands must charge the same kind of tax on U.S. imports as it charges for like local products. Goods shipped from the United States to Puerto Rico, the Virgin Islands, Guam, and American Samoa do not owe U.S. internal revenue taxes. The same refund (drawback) rules for U.S. internal revenue tax on exported items apply when tax was paid on goods sent to those territories. For how tax money from goods made in Guam is handled when moved into the United States or used in Guam, see the Act of August 1, 1950 (48 U.S.C. 1421h).

Full Legal Text

Title 26, §7653

Internal Revenue Code, Source: USLM XML via OLRC

(a)Tax imposed
(1)Puerto Rico
All articles of merchandise of United States manufacture coming into Puerto Rico shall be entered at the port of entry upon payment of a tax equal in rate and amount to the internal revenue tax imposed in Puerto Rico upon the like articles of Puerto Rican manufacture.
(2)Virgin Islands
There shall be imposed in the Virgin Islands upon articles imported from the United States a tax equal to the internal revenue tax imposed in such islands upon like articles there manufactured.
(b)Exemption from tax imposed in the United States
Articles, goods, wares, or merchandise going into Puerto Rico, the Virgin Islands, Guam, and American Samoa from the United States shall be exempted from the payment of any tax imposed by the internal revenue laws of the United States.
(c)Drawback of tax paid in the United States
All provisions of law for the allowance of drawback of internal revenue tax on articles exported from the United States are, so far as applicable, extended to like articles upon which an internal revenue tax has been paid when shipped from the United States to Puerto Rico, the Virgin Islands, Guam, or American Samoa.
(d)Cross reference
For the disposition of the proceeds of all taxes collected under the internal revenue laws of the United States on articles produced in Guam and transported into the United States or its possessions, or consumed in Guam, see the Act of August 1, 1950 (48 U.S.C. 1421h).

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

Act of August 1, 1950, referred to in subsec. (d), is act Aug. 1, 1950, ch. 512, 64 Stat. 384, known as the Organic Act of Guam, which is classified principally to chapter 8A (§ 1421 et seq.) of Title 48, Territories and Insular Possessions. For complete classification of this Act to the Code, see

Short Title

note set out under section 1421 of Title 48 and Tables.

Amendments

1976—Subsec. (d). Pub. L. 94–455 struck out “ch. 512, 64 Stat. 392, section 30” after “August 1, 1950”. 1960—Subsec. (d). Pub. L. 86–624 substituted “or its possessions” for “, its possessions or the Territory of Hawaii”. 1959—Subsec. (d). Pub. L. 86–70 substituted “its possessions or the Territory of Hawaii” for “its Territories or possessions”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1960 AmendmentAmendment by Pub. L. 86–624 effective Aug. 21, 1959, see section 18(k) of Pub. L. 86–624, set out as a note under section 3121 of this title.

Effective Date

of 1959 AmendmentAmendment by Pub. L. 86–70 effective Jan. 3, 1959, see section 22(i) of Pub. L. 86–70, set out as a note under section 3121 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 7653

Title 26, Internal Revenue Code

Last Updated

Sep 22, 2026

Release point: 119-110