Sec. 4. Tax on imports from foreign countries with an indirect tax system
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Subtitle D of chapter 36 of the Internal Revenue Code ( 26 U.S.C. 4461 et seq. ) is amended by adding at the end the following new subchapter: Sec. 4491. Imposition of tax. There is hereby imposed a tax on imports of goods and services from any foreign country that employs an indirect tax system and grants rebates of indirect taxes paid on goods or services exported from that country. The amount of the tax imposed by subsection
(a)on an imported good or service shall be an amount equal to the excess of— the indirect taxes that are rebated or not paid on the good or service upon its export, over any indirect taxes imposed on the good or service at the border of the United States. The tax imposed by subsection
(a)on a good or service shall be paid by the importer of such good or service. The tax imposed by subsection
(a)shall be imposed on imports at the time of entry. The tax imposed by subsection
(a)shall apply during the period beginning as prescribed in section 6(1) of the Border Tax Equity Act of 2016 and ending on the date on which the United States Trade Representative certifies to Congress that the United States trade negotiating objectives of equitable border tax treatment have been met. The tax on imports under subsection
(a)shall be collected by U.S. Customs and Border Protection and deposited into a special account. This special account shall be the source of payments to qualified United States exporters under section 314 of the Tariff Act of 1930. For purposes of this subchapter— The term importer means— as such term relates to imports of goods, one of the parties eligible to file the required customs entry documentation or information pursuant to section 484(a)(2)(B) of the Tariff Act of 1930 ( 19 U.S.C. 1484(a)(2)(B) ), and as such term relates to imports of services, the importer of the service as defined by the Secretary in rules and regulations promulgated under this subchapter. The term time of entry means— as relates to imports of goods, the time generally specified in section 484(a)(2)(A) of the Tariff Act of 1930 ( 19 U.S.C. 1484(a)(2)(A) ) and prescribed in regulations (19 C.F.R. 141.68), and as relates to imports of services, the time specified by the Secretary in rules and regulations promulgated under this subchapter. A foreign country employs an indirect tax system and grants rebates of indirect taxes paid on goods or services exported from that country if such country imposes indirect taxes (including sales taxes and value-added taxes (VAT)) on goods or services, and permits a rebate of such indirect taxes paid on goods or services exported from such country. The term value-added taxes means an indirect general consumption tax that is levied by the exporting country on the value added to goods and services in that country at multiple stages of the production and supply chain. This type of tax is also referred to as a goods and services tax (GST). The Secretary may prescribe such rules and regulations as are necessary to carry out this section. . The table of subchapters for subtitle D of chapter 36 of such Code is amended by adding at the end of the following new item: Subchapter E. Tax on Imports From Foreign Countries With an Indirect Tax System .
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Sec. 4
Tax on imports from foreign countries with an indirect tax system
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