Definition: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Border Tax Equity Act of 2007''.

SEC. 2. FINDINGS AND DECLARATIONS OF POLICY.

(a) Findings.--Congress makes the following findings:
(1) The United States largely relies on a direct tax
system, whereas 137 countries currently employ one particular
form of indirect tax known as value-added taxes (VAT) as well
as direct taxes. The worldwide VAT tax average in 2005 was 15.7
percent, and in countries of the European Union it ranges
between 15 and 25 percent.
(2) Under the rules of the World Trade Organization (WTO),
direct taxes, such as corporate income taxes, if rebated or
refunded upon the export of goods are viewed as export
subsidies and prohibited on most goods and are at least
potentially actionable on all goods. However, indirect taxes,
such as sales taxes and VAT, may be rebated or refunded upon
the export of goods and such rebate or refund is not defined as
constituting a subsidy and hence is not actionable under WTO
rules.
(3) At present, there are no WTO rules on subsidies as
applied to trade in services. However, a number of countries
currently impose taxes on the import of services and exempt or
rebate or refund taxes upon the export of services, to the
disadvantage of United States services providers.
(4) The disparate treatment of border taxes detrimentally
affects United States agricultural producers, manufacturers,
and service providers in that--
(A) refunds of indirect taxes effectively act as
export subsidies to foreign exporters; and
(B) United States exporters are subject to double
taxation, by paying direct taxes on domestic production
in the United States and having their exported product
or service face a border tax in the importing country
consisting of indirect taxes.
(5) The disparate treatment of border taxes results in a
large monetary disadvantage to United States exporters,
estimated to equal $93 billion on goods and $47 billion on
services. Moreover, since remission of VAT by foreign countries
equates to approximately $201 billion in export subsidies on
goods exported to the United States and another $38 billion on
services exported to the United States, United States
producers, in total, suffer an artificial disadvantage of up to
$294,000,000,000 on trade in goods and $85,000,000,000 on trade
in services.
(6) For more than 40 years, United States businesses have
complained of border tax inequity and, since 1968, prior United
States Administrations and Congresses have sought to resolve
it.
(7) Congress has repeatedly recognized the prejudicial
effect of the disparate treatment of border taxes with respect
to goods and has directed the United States to seek a
negotiated solution:
(A) In passing the Trade Act of 1974 (19 U.S.C.
2101 et seq.), Congress sought ''revision of GATT
articles with respect to the treatment of border
adjustments for international taxes to redress the
disadvantage to countries relying primarily on direct
rather than indirect taxes for revenue needs.''.
(B) In section 1101(b)(16) of the Omnibus Trade and
Competitiveness Act of 1988 (19 U.S.C. 2901(b)(16) and
section 2102(b)(15) of Bipartisan Trade Promotion
Authority Act of 2002 (19 U.S.C. 3802(b)(15)), Congress
declared that a principal trade negotiating objective
of the United States is to obtain a revision of WTO
rules with respect to the treatment of border taxes in
order to redress the disadvantage to countries relying
primarily on direct taxes for revenue rather than
indirect taxes.
(8) The disparate treatment of border taxes is arbitrary,
inequitable, causes economic distortions based only on the type
of tax system used by a country, and is a primary obstacle to
more balanced trade relations between the United States and its
major trading partners.
(b) Declarations of Policy.--Congress declares the following:
(1) It is critically necessary that the issue of border
taxes be addressed and resolved in WTO negotiations, whether in
the ongoing Doha Development Round of WTO negotiations or
subsequent WTO negotiations.
(2) If such WTO negotiations fail to achieve the United
States trade negotiating objective of revising WTO rules with
respect to the treatment of border taxes in order to redress
the disadvantage to countries relying primarily on direct taxes
for revenue rather than indirect taxes, then effective action
through legislation is warranted given the massive and
inequitable distortions to trade that United States
agricultural producers, manufacturers, and service providers
face as a result of border taxes.

SEC. 3. REPORT ON RESULTS OF WTO NEGOTIATIONS TO REVISE WTO RULES
REGARDING BORDER TAXES.

(a) Report Required.--Not later than 60 days after the completion
of WTO negotiations, or by January 1, 2009, whichever occurs first, the
United States Trade Representative shall submit to Congress a report
certifying whether or not each of the United States trade negotiating
objectives regarding border tax treatment, as specified in subsection
(b), has been met as a result of such negotiations.
(b) U.S. Trade Negotiating Objectives Regarding Border Tax
Treatment Specified.--The United States trade negotiating objectives
regarding border tax treatment specified in this subsection are the
following:
(1) With respect to trade in goods, the revision of WTO
rules with respect to the treatment of border adjustments for
internal taxes to redress the disadvantage to countries relying
primarily on direct taxes for revenue rather than indirect
taxes, as provided for in section 2102(b)(15) of Bipartisan
Trade Promotion Authority Act of 2002 (19 U.S.C. 3802(b)(15)).
(2) With respect to trade in services--
(A) the elimination of the disadvantage in trade in
services that exists for countries relying primarily on
direct taxes that are not adjusted at the border rather
than indirect taxes that are adjusted at the border;
and
(B) the revision of WTO rules regarding trade in
services to ensure that such rules do not result in
disparate treatment of border adjustments for internal
taxes based on the direct or indirect nature of such
taxes.
(c) Definition.--In this section, the terms ''WTO negotiations''
and ''negotiations'' mean the ongoing Doha Development Round of World
Trade Organization negotiations or subsequent WTO negotiations that may
result in revisions to WTO rules to meet the United States trade
negotiating objectives regarding border tax treatment, as specified in
subsection (b).

SEC. 4. TAX ON IMPORTS FROM FOREIGN COUNTRIES WITH AN INDIRECT TAX
SYSTEM.

Subtitle D of the Internal Revenue Code (26 U.S.C. 4461 et seq.) is
amended by adding at the end the following new subchapter G:

''Subchapter G--Tax on Imports From Foreign Countries With An Indirect
Tax System

''Sec. 4491. Imposition of tax.

''SEC. 4491. IMPOSITION OF TAX.

''(a) General Rule.--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.
''(b) Amount of Tax.--The amount of the tax imposed by subsection
(a) on an imported good or service shall be an amount equal to the
excess of--
''(1) the indirect taxes that are rebated or not paid on
the good or service upon its export, over
''(2) any indirect taxes imposed on the good or service at
the border of the United States.
''(c) Liability and Time of Imposition of Tax.--
''(1) Liability.--The tax imposed by subsection (a) on a
good or service shall be paid by the importer of such good or
service.
''(2) Time of imposition.--The tax imposed by subsection
(a) shall be imposed on imports at the time of entry.
''(d) Period of Applicability.--The tax imposed by subsection (a)
shall apply during the period beginning as prescribed in section
6(a)(1) of the Border Tax Equity Act of 2007 and ending on the date on
which the United States Trade Representative certifies to Congress that
the United States trade negotiating goals of equitable border tax
treatment have been met.
''(e) Special Account.--The tax on imports under subsection (a)
shall be collected by the Bureau of 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(b) of the Tariff Act of 1930.
''(f) Definitions.--For purposes of this subchapter--
''(1) Secretary.--The term 'Secretary' means the Secretary
of Homeland Security.
''(2) Importer.--The term 'importer' means--
''(A) 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
''(B) 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.
''(3) Time of entry.--The term 'time of entry' means--
''(A) 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
''(B) as relates to imports of services, the time
specified by the Secretary in rules and regulations
promulgated under this subchapter.
''(4) Indirect tax system and grants rebates of indirect
taxes.--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.
''(5) Value-added taxes (vat).--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).
''(g) Regulations.--The Secretary may prescribe such rules and
regulations as are necessary to carry out this section.''.

SEC. 5. PAYMENTS TO UNITED STATES EXPORTERS TO NEUTRALIZE
DISCRIMINATORY EFFECT OF BORDER TAXES IMPOSED BY
IMPORTING COUNTRIES.

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:

''SEC. 314. PAYMENTS TO UNITED STATES EXPORTERS TO NEUTRALIZE
DISCRIMINATORY EFFECT OF BORDER TAXES IMPOSED BY
IMPORTING COUNTRIES.

''(a) Payments Required.--
''(1) In general.--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
Homeland Security, acting through the Commissioner of the
Bureau of 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 refunded upon exportation.
''(2) Information to be included in request.--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.
''(b) Source of Payments.--
''(1) Special account.--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.
''(2) Appropriation of additional amounts.--To the extent
that, at any time, amounts contained in the special account
described in paragraph (1) are inadequate to make payments
required under subsection (a), there are hereby appropriated,
out of any money in the Treasury of the United States not
otherwise appropriated, such sums as may be necessary for such
purpose.
''(c) Period of Applicability.--The requirement to make payments
under subsection (a) shall apply during the period beginning as
prescribed in subsection (a)(2) or (b) of section 6 of the Border Tax
Equity Act of 2007, as the case may be, and ending on the date on which
the United States Trade Representative certifies to Congress that each
of the United States trade negotiating goals regarding border tax
treatment have been met.
''(d) Regulations.--The Secretary of Homeland Security is
authorized to prescribe such rules and regulations as are necessary to
carry out the provisions of this section.
''(e) Definitions.--In this section:
''(1) Indirect tax system and imposes or applies indirect
taxes on imports of goods or services at the border.--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 taxes 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
''(2) Value-added taxes (vat).--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).''.

SEC. 6. EFFECTIVE DATES.

(a) General Effective Date.--If, pursuant to subsection (a) of
section 3 of this Act, the United States Trade Representative fails to
certify to Congress by the dates specified in such subsection that each
of the United States trade negotiating objectives regarding border tax
treatment described in subsection (b) of such section has been met as a
result of WTO negotiations, then--
(1) section 4491 of the Internal Revenue Code of 1986, as
added by section 4 of this Act, shall take effect 90 days after
such date; and
(2) subject to subsection (b), section 314 of the Tariff
Act of 1930, as added by section 5 of this Act, shall take
effect 120 days after such date.
(b) Earlier Effective Date for Exports of Services.--
(1) In general.--If, pursuant to subsection (a) of section
3 of this Act, the United States Trade Representative fails to
certify to Congress by January 1, 2008, that each of the United
States trade negotiating objectives regarding border tax
treatment described in subsection (b) of such section has been
met as a result of WTO negotiations, then section 314 of the
Tariff Act of 1930, as added by section 5 of this Act, shall
take effect on January 1, 2008, with respect to exports of
services from the United States as described in section 314 of
the Tariff Act of 1930.
(2) Appropriation of amounts.--There are hereby
appropriated, out of any money in the Treasury of the United
States not otherwise appropriated, such sums as may be
necessary for making payments with respect to exports of
services from the United States in accordance with section 314
of the Tariff Act of 1930, as added by section 5 of this Act,
until such time as the special account authorized under
subsection (e) of section 4491 of the Internal Revenue Code of
1986, as added by section 4 of this Act, is established and
amounts contained in the special account are adequate to make
such payments.
Output:
Border Tax Equity Act of 2007 - Requires the United States Trade Representative (USTR) to submit to Congress a report certifying whether or not U.S. objectives to revise World Trade Organization (WTO) rules on border tax treatment of goods and services from countries with indirect tax systems have been met in WTO negotiations.

Amends the Internal Revenue Code to: (1) impose a tax on imports of goods and services from any country with an indirect tax system and deposits taxes so collected into a special account; and (2) upon request of a U.S. exporter, grant a rebate to such exporter from such account of indirect taxes paid. Imposes such requirements if the USTR fails to certify to Congress that U.S. objectives have been met.