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.
Summary
HB3363 would amend the Internal Revenue Code of 1986 to create a new federal excise tax on “United States-bound circumvented cargo.” The bill defines that cargo as goods discharged from an ocean-going vessel in Canada or Mexico and then brought into the United States by rail, highway, airport, or inland port, including intact intermodal cargo and cargo that is modified, assembled, or consolidated in those countries. The tax would be set at 0.125 percent of the cargo’s value, as determined under U.S. customs laws.
The importer would be responsible for paying the tax when the cargo enters the United States. The bill also directs the Secretary of the Treasury to issue regulations or guidance to administer the tax, including collection procedures and penalties for noncompliance. The amendments would apply to cargo entering the United States after December 31, 2025.
Impact
If enacted, the bill would add a new subchapter to chapter 36 of the Internal Revenue Code and create a new federal tax regime for certain cargo movements routed through Canada or Mexico before U.S. entry. It would affect importers, customs brokers, logistics companies, and supply chains that use Canadian or Mexican ports and inland transport as part of a U.S.-bound shipping route. The bill would also require Treasury to establish implementing rules and enforcement mechanisms.
Sentiment
Based on the available record, there is no committee transcript or vote history showing debate, support, or opposition. The bill was introduced and referred to the House Committee on Ways and Means, but no further action is shown in the provided materials. As a result, the public sentiment reflected in the record is neutral and largely procedural rather than substantive.
Contention
No specific points of contention are documented in the provided materials because there are no committee discussions or recorded votes. Potential areas of dispute, if the bill were considered further, would likely include whether the tax would raise costs for importers and consumers, whether it would affect cross-border trade and logistics efficiency, and how the term “circumvented cargo” would be interpreted and enforced. However, those concerns are not directly stated in the record provided.
To amend the Internal Revenue Code of 1986 to cover into the treasury of the Virgin Islands revenue from tax on fuel produced in the Virgin Islands and entered into the United States.
To amend the Internal Revenue Code of 1986 to disallow the production tax credit and investment tax credit for offshore wind facilities placed in service in the inland navigable waters of the United States or the coastal waters of the United States.
To amend the Internal Revenue Code of 1986 to disallow the production tax credit and investment tax credit for offshore wind facilities placed in service in the inland navigable waters of the United States or the coastal waters of the United States.
This concurrent resolution states that, unless it is approved by Congress, the proposed joint interpretation of Annex 14-C of the United States-Mexico-Canada Agreement (USMCA) prepared by Ambassador Katherine Tai (1) is of no legal effect with respect to the United States or any U.S. person, and (2) cannot be invoked by any federal agency in any legal proceeding nor may a federal agency assert that it has any legal consequences for claims made by a U.S. person. (Annex 14-C of the USMCA concerns certain investment claims under the North American Free Trade Agreement, the agreement which preceded USMCA.)