### Question
Can you define what qualified agreement means?


### Answer
**Qualified agreement** is defined as the following in *26 U.S.C. § 4262*:

> an agreement between the United States and Canada or Mexico (as the case may be)—


(A) setting forth that portion of such country which is not to be treated as within the 225-mile zone, and


(B) providing that the tax imposed by such country on transportation described in subparagraph (A) will be at a level which the Secretary of the Treasury determines to be appropriate

#### Citation:
  - *26 U.S.C. § 4262*
  - Heading: **Subtitle D-Miscellaneous Excise Taxes > CHAPTER 33-FACILITIES AND SERVICES > Subchapter C-Transportation by Air > PART I-PERSONS**

