CBP Issues Entry Guidance on Section 338 Additional Duties for Canadian Imports

U.S. Customs and Border Protection (CBP) has released entry filing instructions following the expiration of the temporary tariff suspension on select Canadian imports. Effective August 22, 2026, at 12:01 a.m. EST, additional ad valorem duties authorized under Section 338 and Presidential Proclamations 11046, 11047, and 11048 have officially taken effect for goods entered for consumption or withdrawn from warehouse.

Below is a breakdown of the applicable Chapter 99 provisions, duty rates, and filing requirements for importers, customs brokers, and trade compliance teams.

Summary of Chapter 99 Classifications and Duty Rates

The tariff structure introduces a 50% additional duty on specific targeted goods while maintaining a 0% rate on key industrial and civil aviation commodities under U.S. Note 51:

• 9903.03.12: Canadian products under subdivision (b)(1) — 50% additional duty

• 9903.03.13: Canadian products under subdivision (b)(2) — 50% additional duty

• 9903.03.14: Canadian products under subdivision (b)(3) — 50% additional duty

• 9903.03.15: Select aluminum, steel, copper, automotive (passenger, light, medium, and heavy-duty vehicles and parts), wood, semiconductor, and patented pharmaceutical products under subdivision (c) — 0% additional duty

• 9903.03.16: Civil aircraft, engines, parts, subassemblies, and flight simulators under subdivision (d) — 0% additional duty

Note: These duties apply in addition to any existing antidumping/countervailing duties (AD/CVD), standard tariffs, and statutory fees.

Special Entry Rules: Chapter 98, FTZ, and Duty Drawback

• Chapter 98 Provisions: Goods properly entered under Chapter 98 are exempt from the additional duty, except for entries under Subchapter XXIII, subheadings 9802.00.40, 9802.00.50, 9802.00.60 (duty applies to repair/alteration value), and heading 9802.00.80 (duty applies to foreign assembly value minus U.S. components).

• Foreign Trade Zones (FTZ): Subject merchandise admitted into an FTZ must be filed under Privileged Foreign Status (19 CFR 146.41), unless eligible for Domestic Status (19 CFR 146.43). Duties apply upon entry for consumption.

• Duty Drawback: Additional duties paid under these provisions remain eligible for duty drawback claims.

Required HTSUS Filing Sequence on Entry Summaries

When submitting entry summary lines involving Chapter 98 or Chapter 99 classifications, filers must follow this reporting hierarchy:

1. Chapter 98 classification (if applicable)

2. Chapter 99 number(s) for additional duties

3. Trade Remedies (in order): Section 301 $\to$ Section 122 $\to$ Section 232 $\to$ Section 201 duties $\to$ Section 201 quota

4. Chapter 99 replacement duty or MTB provisions

5. Chapter 99 non-remedy quotas (if applicable)

6. Chapters 1–97 primary commodity classification (entered value is reported at this level unless Chapter 98 rules specify otherwise)

Importers managing cross-border Canadian freight should verify product eligibility and audit customs filing sequences to prevent processing delays. For assistance reviewing classification impacts or navigating customs compliance, connect with the Sobel Network Shipping team.