Sec. 5. Payments to United States exporters to neutralize discriminatory effect of border taxes imposed by importing countries
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Part II of title III of the Tariff Act of 1930 ( 19 U.S.C. 1305 et seq. ) is amended by inserting after section 313 the following: Upon exportation of goods or services from the United States to any foreign country that employs an indirect tax system and imposes or applies indirect taxes on imports of goods or services at the border, the Secretary of the Treasury, acting through the Commissioner of U.S. Customs and Border Protection, shall, if requested by the exporter, pay to the exporter an amount equal to the amount of indirect taxes that the importing foreign country imposes or applies at the border to such goods or services, minus any United States taxes paid on such goods or services that have been rebated or funded upon exportation.
An exporter who requests a payment under paragraph
(1)shall, in such request, identify the indirect taxes imposed by the importing foreign country and present proof of the payment of such taxes to the importing foreign country’s authorities within a reasonable period of time after exportation of the goods or services. The payments required under subsection
(a)shall be paid from amounts contained in the special account authorized under section 4491(e) of the Internal Revenue Code of 1986. The requirement to make payments under subsection
(a)shall apply during the period beginning as prescribed in section 6(2) of the Border Tax Equity Act of 2016 and ending on the date on which the United States Trade Representative certifies to Congress that each of the United States trade negotiating objectives regarding border tax treatment have been met. The Secretary of the Treasury is authorized to prescribe such rules and regulations as are necessary to carry out the provisions of this section. In this section: A foreign country employs an indirect tax system and imposes or applies indirect taxes on imports of goods or services at the border if such country imposes indirect taxes (including sales tax and value-added taxes (VAT)) on goods or services, and imposes or applies such indirect taxes on imports of goods or services at the border. 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). .
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Sec. 5
Payments to United States exporters to neutralize discriminatory effect of border taxes imposed by importing countries
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