Legal Definitions - Export Clause

The Export Clause is a provision found in Article I, Section 9, Clause 5 of the United States Constitution. It specifically prohibits the federal government from imposing any tax or duty on articles exported from any state. This means that Congress cannot levy taxes on goods, products, or even services that originate in one of the U.S. states and are destined for sale or use in a foreign country.

The purpose of the Export Clause is to prevent the federal government from favoring certain states or industries over others by taxing their exports, and to ensure that American goods remain competitive in international markets without an additional federal burden.

Here are some examples illustrating the Export Clause:

• Example 1: Agricultural Products

  Imagine Congress proposes a new federal law that would impose a 10% tax on all wheat grown in Kansas and sold to buyers in Egypt. Under the Export Clause, this tax would be unconstitutional. The clause directly forbids the federal government from taxing goods, like wheat, that are being exported from a U.S. state to a foreign nation, regardless of the reason for the tax.

• Example 2: Manufactured Goods

  Consider a scenario where an automobile manufacturer in Michigan produces cars that are then shipped to dealerships in Canada and Mexico. If the federal government attempted to enact a special tax on each car leaving the port of Detroit destined for international sale, the Export Clause would prevent such a tax. The clause ensures that products manufactured within a state and then sent abroad are not subject to federal export duties.

• Example 3: Digital Services and Intellectual Property

  Suppose a software development company in Washington state creates a unique program and licenses its use to a technology firm based in Germany. If Congress were to pass legislation levying a specific tax on the revenue generated from such international licensing agreements or digital service exports, the Export Clause would likely render this tax invalid. The clause extends its protection to various forms of "articles" exported, which can include intellectual property and services that originate in a state and are destined for foreign markets.