New Section 301 Forced Labor Tariffs Take Effect July 24, 2026
To Our Valued Partners,
New Section 301 Forced Labor Duties Take Effect July 24
The Office of the United States Trade Representative has imposed new Section 301 duties on covered products from 60 economies. The action addresses the failure of those economies to impose and effectively enforce a prohibition on imports produced with forced labor.
The new duties apply to covered goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. Eastern Time on July 24, 2026.
New Tariff Rates
10% Additional Duty
A 10% additional Section 301 duty generally applies to covered goods from:
Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom.
Combined 10% Duty Treatment
For covered goods from the European Union and Taiwan:
- When the normal Column 1 duty rate is below 10%, the Section 301 duty brings the combined rate to 10%.
- When the normal Column 1 duty rate is 10% or higher, no additional Section 301 duty applies under this action.
Combined 12.5% Duty Treatment
For covered goods from Japan, South Korea, and Switzerland:
- When the normal Column 1 duty rate is below 12.5%, the Section 301 duty brings the combined rate to 12.5%.
- When the normal Column 1 duty rate is 12.5% or higher, no additional Section 301 duty applies under this action.
12.5% Additional Duty
Covered goods from the remaining investigated economies are generally subject to an additional 12.5% Section 301 duty.
Limited In-Transit Exception
The new duties do not apply when both of the following conditions are met:
- The goods were loaded onto a vessel and were already in transit on the final mode of transportation before 12:01 a.m. Eastern Time on July 24, 2026.
- The goods are entered for consumption or withdrawn from warehouse for consumption before 12:01 a.m. Eastern Time on July 28, 2026.
Both conditions must be met.
Important Exemptions
The action includes general and country-specific exemptions. These include:
- Products listed in the official HTSUS exemption schedules
- Accompanied baggage
- Informational materials
- Humanitarian donations
- Qualifying civil aircraft, engines, parts, components, and flight simulators
- Articles used in pharmaceutical applications
- Specified aluminum, steel, copper, vehicles, vehicle parts, wood products, and semiconductor articles
- Certain products covered by country-specific exemption headings
Qualifying products of Canada and Mexico entered free of duty under USMCA, the United States-Mexico-Canada Agreement, are exempt from these new Section 301 duties.
Certain qualifying textile and apparel goods from Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua may also be exempt when entered free of duty under CAFTA-DR and all requirements are met.
Because the exemption lists are extensive, importers should confirm the complete HTSUS classification instead of relying only on a general product description.
Other Duties May Still Apply
Goods covered by this action may remain subject to other applicable:
- Antidumping duties
- Countervailing duties
- Taxes
- Fees
- Other customs charges
- Other trade remedies when no specific exemption applies
Importers should confirm whether more than one duty or trade action applies to the same product.
Chapter 98 and Foreign Trade Zones
The new duties generally do not apply to goods properly entered under an eligible Chapter 98 provision.
Special duty rules apply to goods entered under certain Chapter 98 provisions involving repairs, alterations, processing, or assembly outside the United States.
Covered goods admitted into a U.S. foreign trade zone generally must be admitted in privileged foreign status unless they qualify for domestic status.
HTSUS Reporting Order
When submitting an entry summary, CBP requires Chapter 98 and Chapter 99 provisions to be reported in the following order when applicable:
- Chapter 98 provision
- Chapter 99 number or numbers for additional duties
- Trade remedy Chapter 99 numbers in this order:
- Section 301
- Section 122, only when it legally applies to the specific entry
- Section 232
- Section 201 duty
- Section 201 quota
- Chapter 99 number for a replacement duty or other special use
- Chapter 99 number for another quota
- Regular Chapter 1 through 97 HTSUS classification
The Section 122 surcharge and these new Section 301 duties are separate actions. The Section 122 number should only be reported when it remains legally applicable to the specific entry based on the applicable entry rules and official guidance.
The entered value should generally be reported with the regular Chapter 1 through 97 classification unless Chapter 98 rules require different treatment.
Recommended Action
Importers should review affected shipments before filing and confirm:
- Country of origin
- Complete HTSUS classification
- Applicable Section 301 rate
- General and country-specific exemptions
- In-transit eligibility
- USMCA treatment for Canadian or Mexican goods
- Whether other duties or trade remedies apply
- Correct Chapter 99 reporting order
- Required supporting records
Resources
View the Official CBP Section 301 Forced Labor Guidance
View the Official Forced Labor HTSUS List
View the USTR Section 301 Forced Labor Fact Sheet
View the Final Federal Register Notice
We will continue monitoring CBP and USTR guidance and will share additional information if the requirements change.
For questions about an upcoming shipment, tariff treatment, customs entry, or HTSUS classification, contact Southern Star Navigation at 833-782-7628.
