Malcolm Rivera
The Export Clause, also known as the Import-Export Clause, was added to the US Constitution to prevent the federal government from imposing taxes or duties on exports. The clause, which is only 13 words long, was a critical factor in the Constitution's adoption, as many in the founding generation were concerned about the potential for a strong national government to favor one part of the country over another. The clause also aimed to ensure that the national government could raise revenue effectively, with imports and exports being obvious sources of income. The interpretation of the Export Clause has been the subject of various court cases, including United States v. IBM (1996) and United States v. United States Shoe Corp. (1998), which considered the application of the clause to specific taxation scenarios.
| Characteristics | Values |
|---|---|
| Purpose | To prevent the federal government from imposing taxes or duties on exports |
| Constitutional Convention | To ensure the national government could raise revenue |
| To prevent the government from favoring one part of the country over another | |
| To prevent states with convenient ports from taxing goods destined for states without good ports | |
| To limit the states' ability to interfere with commerce | |
| To make tariffs on imports the main source of revenue for the federal government | |
| Supreme Court Rulings | United States v. IBM (1996) – an excise tax on premiums paid to foreign insurers was unconstitutional as applied to insurance on exports |
| United States v. United States Shoe Corp. (1998) – a harbor maintenance "tax" was in fact a tax and couldn't be imposed on vessels engaged in exportation | |
| Low v. Austin (1872) – imported merchandise is subject to state taxation only after it has passed from the control of the importer or been broken up from their original cases | |
| Turpin v. Burgess (1886) – a general tax laid on all property, including property intended for export but not in the "course of exportation", is not prohibited by the Export Clause | |
| Cornell v. Coyne (1904) – no burden by way of tax or duty can be cast upon the exportation of articles, but articles exported are not relieved from ordinary burdens of taxation | |
| William E. Peck & Co. v. Lowe (1918) – the Export Clause did not shield an exporter from an income tax laid on net incomes | |
| Thames & Mersey Marine Insurance Co. v. United States (1915) – taxation of policies insuring cargoes during transit to foreign ports is the same as a tax on exports |
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What You'll Learn
The Import-Export Clause
The adoption of the Import-Export Clause was highly debated during the Constitutional Convention. Many delegates, like Alexander Hamilton, argued that the government should be able to tax both imports and exports. However, southern delegates feared that taxes on exports would negatively impact their region, known as the "staple states," which produced most of the country's exports at the time. They believed that export taxation would make agricultural products like cotton more expensive and less competitive, harming their economy.
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The Tonnage Clause
At the time the Constitution was adopted, duties of tonnage were imposed on ships for entering or remaining in a harbour, and were distinct from charges for pilotage, loading, and unloading cargo. The Tonnage Clause was intended to prevent states with convenient ports from taxing goods destined for states without good ports.
In Clyde Mallory Lines v. Alabama, the Supreme Court explained that the prohibition on tonnage duties was to supplement the Import-Export Clause, by preventing states from taxing the privilege of access to their ports. The Court also expressed doubt that the Commerce Clause would achieve this purpose.
The Import-Export Clause was adopted by the Constitutional Convention shortly after the Export Clause, which prohibits the federal government from imposing taxes or duties on exports. The adoption of the Import-Export Clause was highly debated. Alexander Hamilton argued in Federalist No. 12 that tariffs on imports would be the primary source of revenue for the federal government, and that the federal government could impose tariffs more effectively than the states.
The Export Clause was critical to the Constitution's adoption. Many in the Founding generation were concerned that a strong national government might favour one part of the country over another. The southern delegates worried that taxes on exports would negatively affect their region, the "staple states", from which most exports came at the time. Without restrictions on export taxation, there would have been no Constitution.
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The Port Preference Clause
The Tonnage Clause (Art. I, § 10, clause 3) also prevents states from imposing taxes based on the internal capacity of a vessel, which is an indirect method of taxing imports and exports. The Import-Export Clause was designed to limit the states' ability to interfere with commerce and prevent states with convenient ports from taxing goods destined for states without good ports.
The Export Clause was a fundamental goal of the Constitutional Convention, ensuring that the national government could raise revenue. Imports and exports were obvious revenue sources, and many delegates, like Alexander Hamilton, thought the government should be able to tax both. However, southern delegates worried that taxes on exports would negatively affect their region, the "staple states", from which most exports came at the time. They believed that export taxation would make agricultural products like cotton more expensive and therefore less competitive in foreign markets. Without the Export Clause, there would have been no Constitution.
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The Commerce Clause
The dormant Commerce Clause is a doctrine that prohibits states from enacting laws that discriminate against or unduly burden interstate commerce, even if Congress has not enacted any legislation on the subject. This doctrine has been used to strike down state laws that favour in-state businesses over out-of-state competitors, that regulate areas of inherently national concern, or that interfere with the flow of interstate commerce.
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The Constitutional Convention
The Export Clause was adopted to prohibit the federal government from imposing taxes or duties on exports. This was seen as critical to the Constitution's adoption, as it addressed the concerns of southern delegates, who worried that taxes on exports would negatively impact their region, the "staple states", from which most exports came at the time. The southern delegates were concerned that export taxes would make agricultural products like cotton more expensive and therefore less competitive.
The Import-Export Clause was also adopted by the Convention to limit the states' ability to interfere with commerce and impose tariffs on imports and exports. The delegates agreed that tariffs on imports would be the primary source of revenue for the federal government, as argued by Alexander Hamilton, who believed the federal government could impose tariffs more effectively than the states. The Import-Export Clause received considerable debate and was later interpreted to apply to imports from territories of the United States, such as the Philippine Islands in 1945.
The Tonnage Clause was included to prevent states from imposing taxes based on the internal capacity of vessels, an indirect method of taxing imports and exports. This clause was intended to prevent states with convenient ports from taxing goods destined for states without good ports. The Port Preference Clause was also added to constrain the national government's ability to favour ports in some states over others, as this could commercially benefit certain states, particularly neighbouring states with competing ports.
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Frequently asked questions
The Export Clause prohibits the federal government from imposing taxes or duties on exports.
The Founding Fathers were concerned that a strong national government might favor one part of the country over another. The Export Clause was added to the Constitution to prevent export taxation and ensure that the national government could raise revenue.
Some examples of court cases that have interpreted the Export Clause include:
- Thames & Mersey Marine Insurance Co. v. United States (1915)
- United States v. IBM (1996)
- United States v. United States Shoe Corp. (1998)
- Cornell v. Coyne (1904)
- William E. Peck & Co. v. Lowe (1918)
The Supreme Court has ruled that the Export Clause's restriction on Congressional taxing power does not extend to certain taxes, such as a general tax laid on all property, including property intended for export but not yet in the "course of exportation".
