Collection Act of 1789
Overview
The Collection Act of 1789 was a significant piece of legislation passed by the United States Congress in July of that year. It was one of the first acts of the new federal government under the Constitution, and it established the United States Customs Service, which was tasked with collecting duties on imported goods.
Historical Context
The Collection Act of 1789 was passed in the context of a new nation struggling to establish a stable source of revenue. The American Revolutionary War had left the country in debt, and the Articles of Confederation had proven inadequate in providing the central government with the necessary funds. The new Constitution, ratified in 1788, gave Congress the power to "lay and collect Taxes, Duties, Imposts and Excises."
Provisions of the Act
The Collection Act of 1789 established a system for collecting these duties and taxes. It created the United States Customs Service and divided the country into districts, each with a customhouse and a collector. The collector was responsible for collecting the duties and taxes, keeping records, and enforcing customs laws. The Act also established penalties for smuggling and other violations of customs laws.
Impact and Legacy
The Collection Act of 1789 had a significant impact on the early United States. It provided a steady source of revenue for the federal government, allowing it to pay off its debts and fund its operations. The Customs Service, created by the Act, would continue to play a crucial role in the country's economy and trade policy for centuries to come.