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Bill

HR 3363

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.

119th Congress Introduced by Mike Ezell and 1 co-sponsor

HR 3363 imposes a 0.125% tax on cargo entering the U.S. via Canada or Mexico, ensuring fair tax contributions from importers using alternative routes.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 3363

Summary of HR 3363: Tax on United States-Bound Circumvented Cargo

Bill Number: HR 3363
Introduced: May 13, 2025
Status: Introduced in House
Primary Sponsor: Dan Newhouse
Cosponsor: Mike Ezell

Purpose and Intent

HR 3363 aims to amend the Internal Revenue Code of 1986 by imposing a tax on cargo that is circumvented through Canada or Mexico before entering the United States. The intent of this legislation is to address trade practices that may undermine U.S. customs revenue and to ensure that cargo entering the U.S. market through alternative routes contributes fairly to federal tax revenues.

Key Provisions

The bill introduces a new subchapter (G) under Chapter 36 of Subtitle D of the Internal Revenue Code, which includes the following key provisions:

  1. Tax Imposition:

    • A tax is imposed on United States-bound circumvented cargo entering the U.S.
    • The tax rate is set at 0.125% of the cargo's value, as determined under U.S. customs laws.

  2. Tax Responsibility:

    • The tax is to be paid by the importer of the cargo at the time of entry into the United States.

  3. Definition of Circumvented Cargo:

    • The term "United States-bound circumvented cargo" refers to cargo that is discharged from an ocean-going vessel in either Canada or Mexico and subsequently enters the U.S. via rail, highway, airport, or inland port. This includes both intact intermodal cargo and cargo that has been modified, assembled, or consolidated in Canada or Mexico.

  4. Regulatory Authority:

    • The Secretary of the Treasury is authorized to issue regulations and guidance necessary for implementing the tax, including collection procedures and penalties for non-compliance.

Impact

  • Affected Parties: The primary entities affected by this bill are importers of cargo that utilize routes through Canada or Mexico to enter the U.S. market. This could impact businesses that rely on these shipping routes for their supply chains.

  • Revenue Generation: The tax is expected to generate additional revenue for the federal government, although specific revenue estimates have not been provided in the bill.

Procedural Aspects

  • Legislative Actions:
    • The bill was referred to the House Committee on Ways and Means on the same day it was introduced (May 13, 2025).

This summary provides an overview of HR 3363, highlighting its purpose, key provisions, and potential impacts on trade and taxation in the United States.

Compiled from official sources — confirm details with the bill’s official record.

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