[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 119 Agreed to Senate (ATS)]
108th CONGRESS
1st Session
S. RES. 119
Expressing the sense of the Senate that there should be parity among
the countries that are parties to the North American Free Trade
Agreement with respect to the personal exemption allowance for
merchandise purchased abroad by returning residents, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 10, 2003
Ms. Collins (for herself, Mr. Baucus, Mr. Bingaman, Mr. Domenici, Mrs.
Clinton, and Mrs. Murray) submitted the following resolution; which was
referred to the Committe on Finance
September 18, 2003
Committee discharged; considered and agreed to
_______________________________________________________________________
RESOLUTION
Expressing the sense of the Senate that there should be parity among
the countries that are parties to the North American Free Trade
Agreement with respect to the personal exemption allowance for
merchandise purchased abroad by returning residents, and for other
purposes.
Whereas the personal exemption allowance is a vital component of trade and
tourism;
Whereas many border communities and retailers depend on customers from both
sides of the border;
Whereas a United States citizen traveling to Canada or Mexico for less than 48
hours is exempt from paying duties on the equivalent of $200 worth of
merchandise on return to the United States, and for trips over 48 hours
United States citizens have an exemption of up to $800 worth of
merchandise;
Whereas a Canadian traveling in the United States is given no exemption for
trips of less than 24 hours;
Whereas a Canadian traveling in the United States is allowed a duty-free
personal exemption allowance equivalent to, in Canadian currency--
(1) $50 worth of merchandise, if the trip is over 24 hours but not over
48 hours;
(2) $200 worth of merchandise, if the trip is over 48 hours but not
more than 7 days; and
(3) $750 worth of merchandise, if the trip is for over 7 days;
Whereas Mexico has a 2-tiered personal exemption allowance for its returning
residents, set at the equivalent of $50 worth of merchandise for
residents returning by car and the equivalent of $300 worth of
merchandise for residents returning by plane;
Whereas Canadian and Mexican retail businesses have an unfair competitive
advantage over many American businesses because of the disparity between
the personal exemption allowances among the 3 countries;
Whereas the State of Maine legislature passed a resolution urging action on this
matter;
Whereas the disparity in personal exemption allowances creates a trade barrier
by making it difficult for Canadians and Mexicans to shop in American-
owned stores without facing high additional costs;
Whereas the United States entered into the North American Free Trade Agreement
with Canada and Mexico with the intent of phasing out tariff barriers
among the 3 countries; and
Whereas it violates the spirit of the North American Free Trade Agreement for
Canada and Mexico to maintain restrictive personal exemption allowance
policies that are not reciprocal: Now, therefore, be it
Resolved, That it is the sense of the Senate that the United States
Trade Representative and the Secretary of the Treasury, in consultation
with the Secretary of Commerce, should continue discussions with
officials of the Governments of Canada and Mexico to achieve parity by
harmonizing the personal exemption allowance structure of the 3 NAFTA
countries at or above United States exemption levels.
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