Section 338 Canada duties: 22 HTS codes removed and 100 added from October 30, 2026
CBP title: Further Modifying Section 338 Additional Duties on Certain Goods of Canada
What did CBP announce?
CBP issued guidance on an October 23, 2026 Proclamation that changes the products of Canada subject to the 50 percent Section 338 duty under HTSUS 9903.03.14. From 12:01 a.m. eastern time on October 30, 2026, 22 listed HTSUS classifications are no longer subject to the duty, and 100 new classifications become subject to it. The classifications under 9903.03.12 and 9903.03.13 do not change. The full list is in the PDF attached to the CSMS message.
What is Allied's position?
We apply the new 9903.03.14 list to the entries we file for Canadian products entered or withdrawn from warehouse on or after October 30, 2026. Products from Canada that were not covered before may now carry the 50 percent duty, while the 22 removed classifications no longer do. Clients who import products of Canada should send us their HTS numbers so we can check them against the attached list. The Section 338 duties are eligible for drawback, and clients can ask us about drawback claims.
General information, not legal advice.
What does the CBP message say?
The purpose of this message is to provide guidance on the modifications to the Section 338 Canada duties pursuant to the October 23, 2026, Presidential Proclamation entitled “Further Modifying the Scope of Products of Canada Subject to the Additional Duties Imposed to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Motor Vehicles.”
BACKGROUND On August 18, 2026, the President issued Proclamation 11056, “Temporary Suspension of Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States With Respect to Alcoholic Beverages, Dairy, and Motor Vehicles,” which suspended for three days imposition of the additional duties of 50 percent on certain imported products of Canada, pursuant to the July 20, 2026 Presidential Proclamations 11046, 11047, and 11048. As a result of the suspension in Proclamation 11056, the additional duties went into effect on 12:01 a.m. eastern time on August 22, 2026. See 91 FR 54789 (https://www.federalregister.gov/documents/2026/08/24/2026-17294/temporary-suspension-of-additional-duties-to-offset-canadian-discrimination-against-the-commerce-of), 91 FR 46639 (https://www.federalregister.gov/documents/2026/07/23/2026-14991/imposing-additional-duties-to-offset-canadian-discrimination-against-the-commerce-of-the-united), 91 FR 46653 (https://www.federalregister.gov/documents/2026/07/23/2026-14992/imposing-additional-duties-to-offset-canadian-discrimination-against-the-commerce-of-the-united), and 91 FR 46663 (https://www.federalregister.gov/documents/2026/07/23/2026-14997/imposing-additional-duties-to-offset-canadian-discrimination-against-the-commerce-of-the-united).
On September 8, 2026, the President issued Proclamations to modify the list of products of Canada subject to the additional ad valorem duties under Section 338 pursuant to Proclamations 11046 and 11048. See “Alcoholic Beverages; Modification of Scope of Canadian Products Subject to Additional Duties Imposed To Offset Canadian Discrimination Against U.S. Commerce (Proc. 11064) (https://www.federalregister.gov/public-inspection/2026-18838/alcoholic-beverages-modification-of-scope-of-canadian-products-subject-to-additional-duties-imposed)” and “Motor Vehicles; Modification of Scope of Canadian Products Subject to Additional Duties Imposed To Offset Canadian Discrimination Against U.S. Commerce (Proc. 11065) (https://www.federalregister.gov/public-inspection/2026-18839/motor-vehicles-modification-of-scope-of-canadian-products-subject-to-additional-duties-imposed-to)”.
On October 23, 2026, the President issued a Proclamation to further modify the list of products of Canada subject to the additional ad valorem duties under Section 338 pursuant to Proclamation 11048. See “Further Modifying the Scope of Products of Canada Subject to the Additional Duties Imposed to Offset Canadian Discrimination Against the Commerce of the United States With Respect to Motor Vehicles (https://www.whitehouse.gov/presidential-actions/2026/10/further-modifying-the-scope-of-products-of-canada-subject-to-the-additional-duties-imposed-to-offset-canadian-discrimination-against-the-commerce-of-the-united-states-with-respect-to-motor-vehicles/).” These changes will be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on October 30, 2026.
GUIDANCE This guidance provides instructions for importers, brokers, and filers on filing entries with U.S. Customs and Border Protection (CBP) for certain products of Canada entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on October 30, 2026, as provided in the Harmonized Tariff Schedule of the United States (HTSUS) under heading 9903.03.14.
As of October 30, 2026, products of Canada classifiable in the following HTSUS classifications corresponding to HTSUS 9903.03.14 are no longer subject to the 50% ad valorem duties imposed under Section 338:
1212.21.00
3920.20.00
3923.10.90
3923.21.00
4412.33.06
4412.33.26
4412.33.32
4412.33.57
4412.34.26
4412.34.32
4412.34.57
4811.51.20
4811.51.40
4819.10.00
4819.40.00
4823.70.00
4823.90.10
8418.69.01
8419.89.95
8422.30.91
8422.40.91
8433.60.00
Also as of October 30, 2026, 100 additional HTSUS classifications will be subject to HTSUS 9903.03.14. See the attached list for the complete list of HTSUS classifications subject to Section 338 duties as of October 30, 2026, including the 100 additional HTSUS classifications now subject to HTSUS 9903.03.14 (in bold on the attached list).
There are no changes to the HTSUS classifications subject to HTSUS 9903.03.12 or 9903.03.13.
The following HTSUS classifications were effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on August 22, 2026:
9903.03.12: Articles the product of Canada as provided in subdivision (b)(1) of U.S. note 51
50% additional ad valorem rate of duty
9903.03.13: Articles the product of Canada as provided in subdivision (b)(2) of U.S. note 51
9903.03.14: Articles the product of Canada as provided in subdivision (b)(3) of U.S. note 51
9903.03.15: Articles of aluminum, of steel or of copper or derivative aluminum or steel articles; passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans and cargo vans) and light trucks; parts of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans and cargo vans) and light trucks; medium- and heavy duty vehicles; parts of medium- and heavy duty vehicles; wood products; semiconductor articles; and patented pharmaceutical articles, as provided in subdivision (c) of U.S. note 51
0% additional ad valorem rate of duty
As of September 15, 2026, only goods subject to HTSUS 9903.03.13 are eligible to
claim HTSUS 9903.03.15.
9903.03.16: Articles of civil aircraft (all aircraft other than military aircraft and unmanned aircraft); their engines, parts and components; their other parts, components and subassemblies; and ground flight simulators and their parts and components the product of Canada, as provided for in subdivision (d) of U.S. note 51
Products that are provided for in headings 9903.03.12–9903.03.16 shall continue to be subject to antidumping, countervailing, or other duties, taxes, fees, exactions and charges that apply to such products, as well as to the additional ad valorem rate of duty imposed by this heading.
Chapter 98
The additional duty imposed by headings 9903.03.12 to 9903.03.14 shall not apply to goods for which entry is properly claimed under a provision of chapter 98 of the tariff schedule pursuant to applicable regulations of CBP, and whenever CBP agrees that entry under such a provision is appropriate, except for goods entered under subchapter XXIII of chapter 98 of the tariff schedule, subheadings 9802.00.40, 9802.00.50 and 9802.00.60, and heading 9802.00.80. For subheadings 9802.00.40, 9802.00.50 and 9802.00.60, the additional duty applies to the value of repairs, alterations or processing performed, as described in the applicable subheading. For heading 9802.00.80, the additional duty applies to the value of the article assembled abroad, less the cost or value of such products of the United States, as described.
Foreign Trade Zone Any product subject to the duties imposed in these Proclamations that is subject to the additional duty imposed by this action, and that is admitted into a U.S. foreign trade zone, except any product that is eligible for admission under “domestic status” as defined in 19 C.F.R. 146.43, only may be admitted as “privileged foreign status,” as defined in 19 C.F.R. 146.41, and will be subject upon entry for consumption to any ad valorem rate of duty related to the classification under the applicable HTSUS subheading.
Drawback
The additional duties imposed by headings 9903.03.12 to 9903.03.14 are eligible for drawback.
For questions regarding Section 338 entry filing, contact the Trade Remedy Branch at TradeRemedy@cbp.dhs.gov (mailto:TradeRemedy@cbp.dhs.gov).
If you encounter any errors in filing an entry summary, contact your CBP client representative or the ACE Help Desk.
Related Message Number(s): 69851916, 69606660
- Section 338 Canada Modified HTS LIST 10.25.2026.pdf
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