| |
Cargo Systems Messaging Service
CSMS # 69606660 - GUIDANCE: Section 338 Additional Duties on Certain Goods of Canada
The purpose of this message is to provide guidance on the implementation of the July 20, 2026, Presidential Proclamations on Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages, Dairy, and Motor Vehicles.
This guidance provides instructions for importers, brokers, and filers on filing entries to U.S. Customs and Border Protection (CBP) on certain imports from Canada entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on August 22, 2026, as provided in the Harmonized Tariff Schedule of the United States (HTSUS) under headings 9903.03.12–9903.03.16.
See the attachment for the Chapter 1 to 97 HTSUS classifications, which correspond to each Chapter 99 heading. See 91 FR 46639, 91 FR 46653, and 91 FR 46663.
Effective with respect to goods from Canada entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on August 22, 2026: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
50% additional ad valorem rate of duty
9903.03.14: Articles the product of Canada as provided in subdivision (b)(3) of U.S. note 51
50% additional ad valorem rate of duty
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
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
0% additional ad valorem rate of duty
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.
The additional duty imposed by headings 9903.04.12 to 9903.04.14 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.
The additional duty imposed by headings 9903.04.12 to 9903.04.14 is subject to drawback.
HTSUS Sequence When submitting an entry summary in which a heading or subheading in Chapter 98 and/or 99 is claimed on imported merchandise, the following instructions will apply for the order of reporting the HTSUS on an entry summary line.
1. Chapter 98 (if applicable)
2. Chapter 99 number(s) for additional duties (if applicable)
3. For trade remedies,
-
First report the Chapter 99 HTSUS for Section 301,
-
Followed by the Chapter 99 HTSUS for Section 122,
-
Followed by the Chapter 99 HTSUS for Section 232
-
Followed by the Chapter 99 HTSUS for Section 201 duties (if applicable),
-
Followed by the Chapter 99 HTSUS for Section 201 quota (if applicable).
4. Chapter 99 number(s) for REPLACEMENT duty or other use (i.e., Miscellaneous Tariff Bill or other provisions) 5. Chapter 99 number for other quota (not covered by #3) (if applicable) 6. Chapter 1 to 97 Commodity Tariff
The entered value of the imported product reported on the entry summary line should be reported on the Chapter 1-97 HTSUS classification, unless Chapter 98 reporting provisions require the entered value to be reported differently.
If you encounter any errors in filing an entry summary, contact your CBP client representative or the ACE Help Desk.
|
|
|
|
|