IV

105TH CONGRESS

1ST SESSION H. CON. RES. 51

Expressing the sense of the Congress that there should be parity among

the countries that are parties to the North American Free Trade Agreement (NAFTA) with respect to the personal allowance for duty-free

merchandise purchased abroad by returning residents.

IN THE HOUSE OF REPRESENTATIVES

MARCH 20, 1997

Mr. BONILLA (for himself, Mr. ORTIZ, Mr. SKEEN, Mr. BALDACCI, and Mr.

REYES) submitted the following concurrent resolution; which was referred

to the Committee on Ways and Means

CONCURRENT RESOLUTION

Expressing the sense of the Congress that there should be

parity among the countries that are parties to the North

American Free Trade Agreement (NAFTA) with respect

to the personal allowance for duty-free merchandise purchased abroad by returning residents.

Whereas the duty-free allowance for returning residents is an

important element of trade and tourism;

Whereas the United States provides each United States resident who is returning from Mexico after a stay of any

duration a personal exemption from duty on merchandise

valued at up to $400 once every 30 days (or up to $200

if the individual has claimed an exemption within 30 days

before his or her arrival in the United States), including
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in both instances one liter of liquor or wine and 200 cigarettes or 100 cigars;

Whereas Mexico has a 2-tiered duty-free allowance for its returning residents, set at the equivalent of $50 for ‘‘frontier’’ residents of a 25 kilometer strip along Mexico’s

northern border and the equivalent of $300 for residents

who live in the interior of Mexico;

Whereas interior residents of Mexico are also permitted up to

3 liters of wine, beer, or liquor and up to 20 individual

boxes of cigarettes or 50 cigars or 250 grams of

tobacco;

Whereas Canada provides each returning Canadian resident

absent for more than 7 days a duty-free allowance on

merchandise valued at up to the equivalent of $350; after

an absence of 48 hours, a returning Canadian resident

has a duty-free allowance of the equivalent of $140 and

after an absence of 24 hours the Canadian allowance is

the equivalent of $35; and Canadian residents returning

after an absence of at least 48 hours are also provided

a duty-free allowance for 1.14 liters of liquor or wine or

24 12-ounce bottles of beer or ale, and 50 cigars, 200

cigarettes, 200 grams of manufactured tobacco, or 200

tobacco sticks;

Whereas in 1995 Mexico announced that duty-free stores will

be established at multiple locations on the Mexican side

of the United States-Mexico border, which will sell their

merchandise to United States residents traveling to Mexico and will benefit from the generous United States

duty-free allowance afforded to its residents;

Whereas with the advent of duty-free stores on the Mexican

side of the border serving United States residents, the in-
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equity between the duty-free allowances of the 2 countries is further exacerbated, placing United States retail

establishments who service Mexican residents at an unfair competitive advantage;

Whereas the United States entered into the North American

Free Trade Agreement (NAFTA) with Mexico and Canada with the intent of phasing out tariff barriers among

the 3 countries; and

Whereas it violates the spirit of the NAFTA for the countries

to maintain restrictive duty-free allowance policies which

are not reciprocal: Now, therefore, be it

1 Resolved by the House of Representatives (the Senate

2 concurring), That—

3 (1) the United States Trade Representative and

4 the Secretary of the Treasury, in consultation with

5 the Secretary of Commerce, should initiate discus6 sions with officials of the Governments of Mexico

7 and Canada to achieve parity in the duty-free allow8 ance structure of the United States, Mexico, and

9 Canada; and

10 (2) in the event that parity in the duty-free al11 lowances of the 3 countries is not reached within 1

12 year after the date on which this concurrent resolu13 tion is adopted, the United States Trade Represent14 ative and the Secretary of the Treasury should sub15 mit recommendations to the Congress on whether

16 legislative changes are necessary to bring the United
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1 States duty-free allowance to a lower amount to con2 form to the allowance levels established in the other

3 countries that are parties to the NAFTA.

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