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.

This bill would add a small tax on certain goods coming into the United States that were first unloaded in Canada or Mexico from an ocean ship, then brought into the U.S. by rail, truck, plane, or through an inland port. The tax is 0.125% of the cargo’s value, and it must be paid by the importer when the goods enter the country. The government would set rules for how to collect the tax and penalties for not following the rules.

Key points

• Who is affected: Importers bringing cargo into the U.S. that was discharged from an ocean vessel in Canada or Mexico, including intact intermodal loads or goods that were modified, assembled, or consolidated there.
• What changes: A 0.125% tax on the value of that cargo, determined under U.S. customs rules; the importer pays it at entry.
• When it applies: At the time the cargo enters the United States; detailed procedures and penalties will be set by the Treasury Department.