HR 4899119th CongressIn Committee

CANADA Act

Introduced: Aug 5, 2025

Sponsor: Rep. Pappas, Chris [D-NH-1] (D-New Hampshire)

Defense & National Security

Standard Summary

Comprehensive overview in 1-2 paragraphs

H.R. 4899, titled the Creating Access to Necessary American-Canadian Duty Adjustments Act (CANADA Act), would exempt goods imported by or for the use of small business concerns from duties tied to a national emergency declared on February 1, 2025. Introduced by Representative Pappas (with Representative Goodlander) and referred to the House Ways and Means Committee, the bill directs that the duties imposed by the President’s national emergency and related executive orders shall not apply to eligible small businesses as defined by the Small Business Act. In effect, it would shield small businesses from paying certain import duties during the emergency period, potentially lowering their costs for imported goods sourced for business use. Note: The text references “section 3” of the Small Business Act for defining small business concerns, but that section is not included in the provided excerpt. If enacted, the bill would rely on that standard definition to determine eligibility.

Key Points

1Short title: The act may be cited as the “Creating Access to Necessary American-Canadian Duty Adjustments Act” or the CANADA Act.
2Exemption scope: Duties imposed by the February 1, 2025 national emergency (and the associated executive orders) would not apply to goods imported by or for the use of small business concerns.
3Definition standard: The exemption applies to goods used by small business concerns as defined in the Small Business Act (15 U.S.C. 632). (Note: the referenced section is not fully shown in the provided text.)
4Legal authority cited: The exemption references duties tied to Executive Orders 14193, 14197, and 14226 that were issued in relation to the national emergency.
5Legislative status: Introduced in the House on August 5, 2025 by Mr. Pappas (for himself and Ms. Goodlander) and referred to the Committee on Ways and Means.

Impact Areas

Primary group/area affected:- Small business importers and users: The main beneficiaries would be small businesses that import goods for their operations, as they would not owe the duties tied to the national emergency for those imports.Secondary group/area affected:- Other importers and large businesses: They would continue to owe any applicable duties, potentially creating cost disparities between small and larger firms.- U.S. customs and revenue: Collection of duties under the national emergency could see reduced revenue from small-business imports, depending on how broadly the exemption is applied.- Cross-border trade dynamics with Canada: The bill’s framing around “American-Canadian Duty Adjustments” could influence U.S.-Canada trade perceptions and policy responses during the emergency period.Additional impacts:- Supply chain and pricing: If enacted, small businesses could experience lower input costs, potentially affecting pricing and competitiveness.- Budget and policy considerations: The law would shift some burden away from small businesses and away from the duties revenue associated with the national emergency; lawmakers might consider any fiscal or policy trade-offs.- Legal/administrative clarity: The reference to a missing Section 3 in the Small Business Act could require congressional drafting corrections to ensure clear eligibility rules and implementation details.

Generated by gpt-5-nano on Oct 8, 2025