IV 
109TH CONGRESS 
1ST SESSION 
H. RES. 433 
Expressing the sense of the House of Representatives 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 HOUSE OF REPRESENTATIVES 
SEPTEMBER 8, 2005 
Mr. MICHAUD submitted the following resolution; which was referred to the 
Committee on Ways and Means 
RESOLUTION 
Expressing the sense of the House of Representatives 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 compo-
nent 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 Mex-
ico for less than 48 hours is exempt from paying duties 
on the equivalent of $200 worth of merchandise on re-
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turn 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 un-
fair competitive advantage over many American busi-
nesses because of the disparity between the personal ex-
emption 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 cre-
ates 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
•HRES 433 IH 
intent of phasing out tariff barriers among the 3 coun-
tries; and 
Whereas it violates the spirit of the North American Free 
Trade Agreement for Canada and Mexico to maintain re-
strictive personal exemption allowance policies that are 
not reciprocal: Now, therefore, be it 
Resolved, That it is the sense of the House of Rep-
resentatives 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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