Border Tax Equity Act of 2016
This bill amends the Internal Revenue Code to impose a tax on imports from any foreign country that: (1) employs an indirect tax system, and (2) grants rebates of indirect taxes paid on exports from that country. This tax shall be collected by the U.S. Customs and Border Protection (CBP) and deposited into a special account.
The bill also amends the Tariff Act of 1930 to require the CBP, upon request of a U.S. exporter, to pay to the exporter from this special account an amount equal to the amount of indirect taxes imposed by the importing foreign country, minus any U.S. taxes rebated or funded upon exportation.
The Office of the U.S. Trade Representative must report on specified matters related to World Trade Organization negotiations, border taxes, and free-trade agreements.