The Galactic Senate's Resolution BR-0371 was ratified in 32 BBY by the Galactic Senate following the unsuccessful Eriadu Trade Summit. This resolution established taxes on hyperspace routes situated in the Outer and Mid Rims, with the generated revenue allocated to resolving the growing fiscal problems within the Galactic Republic. A key advocate for this resolution was Senator Palpatine.
Darth Sidious subsequently used BR-0371 as leverage to manipulate the Trade Federation into initiating a blockade of Naboo. The scheme involved pressuring Queen Padmé Amidala into endorsing a "treaty" that would transform Naboo into a protectorate under the Federation, thereby providing a veneer of legitimacy to their occupation, which would then be presented to the Senate. However, the Queen turned the tables, compelling the Viceroy to sign an alternative treaty.
Senate Resolution BR-0371, seemingly a minor piece of legislation, imposed a tariff on hyperlane trade traversing from the Outer Rim Territories to the Mid Rim. Its primary purpose was to alleviate the expanding financial deficit of the Galactic Republic, with funds earmarked for support and developmental initiatives in remote systems.
The Galactic Republic was experiencing a period characterized by decline and political corruption, with Supreme Chancellor Finis Valorum facing a significant corruption scandal. Senator Palpatine from the Naboo system, secretly the Sith Lord Darth Sidious, pressed Valorum to curb the influence of the Trade Federation, a powerful galactic entity that essentially monopolized all trade routes within the Republic. Palpatine backed Senate Resolution BR-0371 as a component of the Sith Grand Plan, aiming to destabilize the weakening Republic further, to restore Sith dominion over the galaxy.
Senate Resolution BR-0371 proved to be a significant achievement for the Republic, successfully securing the targeted development funding. Within one month after its enactment, the Trade Federation encountered substantial financial setbacks as a direct consequence of BR-0371, experiencing diminished profits due to the imposition of taxes on the previously Free Trade Zone they controlled. Lott Dod, the Federation senator, voiced opposition to the taxation in the Senate, while the Trade Federation Directorate initiated planning for their retaliatory actions. Trade Federation Viceroy Nute Gunray and Rune Haako oversaw the clandestine expansion of their Droid Army. Through Palpatine's machinations, operating under the guise of Darth Sidious, the Trade Federation, six months after BR-0371's passage, launched a blockade against Naboo, Palpatine's homeworld. This blockade involved deploying a fleet of warships into orbit around the planet, disrupting trade through Naboo and causing hardship for its inhabitants. After the Senate continued to refuse to repeal Senate Resolution BR-0371, the Federation initiated a full-scale Invasion of Naboo.
Queen Padmé Amidala of Naboo was rescued from the Federation's grasp by Jedi Knights and transported to Coruscant, the galactic capital. The queen presented the dire situation of her planet to the Senate, but when Valorum proved incapable of acting due to the Senate's corruption and bureaucratic inertia, she, acting on Palpatine's advice, initiated a Vote of No Confidence against the chancellor. The unpopular Valorum was subsequently removed from office, and as Palpatine had foreseen, he secured the nomination for chancellor and won due to the sympathy generated by the senator's besieged homeworld. Naboo was later freed by a coalition led by Amidala, and Palpatine ultimately became the last Supreme Chancellor, exceeding his term limits and transforming the Republic into the Galactic Empire in 19 BBY. Decades later, the New Republic emerged from the Empire's collapse, and a Historical Council published Palpatine's comprehensive motivation behind the resolution in an historical document, highlighting the irony that the galactic government had been fundamentally altered as a result of a dispute over taxation.
The taxation of trade routes was mentioned in Star Wars: Episode I The Phantom Menace, the 1999 prequel trilogy film written and directed by George Lucas. It was formally identified as Senate Resolution BR-0371 within The Essential Chronology, a reference book published in 2000.