CBP Updates Canada Section 338 Duties
To Our Valued Partners,
U.S. Customs and Border Protection has issued new guidance updating the Section 338 duties on certain goods from Canada.
The changes take effect for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on September 15, 2026.
WHAT CHANGED?
CBP has released a new complete HTS list showing the products subject to Section 338 duties as of September 15.
Here is what changed in the updated list:
- 122 additional HTS classifications now subject to Section 338 duties under 9903.03.12 or 9903.03.14
- 10 HTS classifications removed from Section 338 duty coverage
- No changes to the classifications covered under 9903.03.13
The additional 50% ad valorem duty rate remains in place for goods subject to 9903.03.12, 9903.03.13 and 9903.03.14.
IMPORTANT 0% DUTY CHANGE
CBP also clarified that beginning September 15, only goods subject to HTSUS 9903.03.13 are eligible to claim the 0% additional Section 338 rate under 9903.03.15, when the requirements of that provision are met.
The separate 0% provision under 9903.03.16 remains available for qualifying Canadian civil aircraft and related products described in that provision.
REVIEW THE NEW LIST
Because products have been both added to and removed from Section 338 coverage, you should use the new September 15 HTS list when reviewing Canadian shipments rather than relying only on the earlier August list.
RESOURCES
CBP – CSMS #69851916: Modifying Section 338 Additional Duties on Certain Goods of Canada
CBP – Section 338 Canada Modified HTS List, Effective September 15, 2026
Our team will continue monitoring CBP guidance for any additional changes.
If you have a Canadian shipment moving now or planned and have questions about how the updated Section 338 list may affect your shipment, please contact our team at 833-782-7628. We are happy to help you review the current requirements and the applicable HTS list.
