News

    Section 338 on Canadian goods is live. The three-day pause is over.

    Strix Customs Team · Licensed Customs Brokers · August 25, 2026 ET · 4 min read

    Section 338 · Canada · Chapter 99 · CBP · 7501 · 2026

    Strix Customs Team

    As of August 25, 2026, the three-day pause on the new Section 338 additional duties on certain products of Canada has already expired. If you are filing a 7501 this week on Canadian-origin goods, the question is which Chapter 99 heading CBP told you to report — not whether the proclamation is “coming.”

    Proclamation 11056 (signed August 18, published August 24 at 91 FR 54789) moved the effective date of Proclamations 11046, 11047, and 11048 from August 19 to 12:01 a.m. eastern time, August 22, 2026. CBP’s filing instructions are CSMS #69606660, issued the night of August 21. By the Monday print date, the pause had already run.

    What goes on the 7501

    For goods of Canada entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time August 22, CBP says report the applicable heading in 9903.03.12 through 9903.03.16, plus the Chapter 1–97 classification. The lists that map those headings to Chapter 1–97 codes are attached to the CSMS and in 91 FR 46639, 46653, and 46663. Check your 8-digit code against that list. Do not decide coverage from a commercial description (“it’s dairy / it isn’t a car”).

    CSMS rates, as written:

    • 9903.03.12 — U.S. note 51(b)(1) — 50% additional ad valorem
    • 9903.03.13 — note 51(b)(2) — 50%
    • 9903.03.14 — note 51(b)(3) — 50%
    • 9903.03.15 — note 51(c) — 0% additional (CSMS names aluminum, steel, copper and derivatives; passenger vehicles and light trucks and their parts; medium- and heavy-duty vehicles and parts; wood; semiconductors; patented pharmaceuticals)
    • 9903.03.16 — note 51(d) — 0% additional (civil aircraft other than military and unmanned; engines, parts, components, subassemblies; ground flight simulators and parts, product of Canada)

    Those 0% headings are still reportable Chapter 99 lines. They are not “skip Chapter 99.”

    CBP also says goods under 9903.03.12–16 remain subject to AD/CVD and any other duties, taxes, and fees that already apply. This additional duty stacks; it does not replace Column 1 or other Chapter 99 remedies.

    Line order on the entry summary, from the same CSMS: Chapter 98 (if any), then Chapter 99 additional-duty numbers, then other Chapter 99 (301, then 122, then 232, then 201…), then the Chapter 1–97 commodity. Entered value stays on the 1–97 line unless a Chapter 98 rule says otherwise.

    What we are not saying

    USMCA. CSMS #69606660, as published, does not mention USMCA. Law-firm recaps have said origin does not waive the additional duty. We are not repeating that as a CBP fact. If you are claiming USMCA on the same line, report the Chapter 99 heading CBP listed and ask TradeRemedy@cbp.dhs.gov before you invent an exemption.

    Chapter 98 / drawback cite. In the Chapter 98 and drawback paragraphs, the CSMS refers to headings 9903.04.12 to 9903.04.14. Everywhere else in the same message the operative headings are 9903.03.12–9903.03.16. We are not “correcting” CBP. File the 03 headings CBP used for the duty itself. If you have a Chapter 98 or drawback line, confirm treatment with Trade Remedy or your client rep and watch for a corrected CSMS.

    The pause. Entries on August 19–21 sit under the moved effective date, not under a live 50% add. If duty was collected for those days, Proc. 11056 says refunds run through CBP’s ordinary procedures. We do not promise a refund or a timeline.

    FTZ. CSMS: subject merchandise admitted to a zone (other than domestic status) is privileged foreign, and the additional duty is due on entry for consumption. We do not promise zone treatment beyond that sentence.

    This week

    1. Match each Canadian-origin SKU to the CSMS attachment / FR annex, not the proclamation title.
    2. Put the matching 9903.03.xx on the 7501 for entries on or after August 22.
    3. Keep 301 / 232 / ADCVD lines you already owe. Do not drop them because a 338 heading appeared.
    4. Email Trade Remedy if the 04-versus-03 cite or a 98/drawback line is in play.

    We can clear the entry with the Chapter 99 line CBP published, consult on which note 51 bucket a code sits in, and comply on the 7501 sequence. CBP decides the rate. Questions on the message go to TradeRemedy@cbp.dhs.gov.

    If you want a broker on the line: brokerage.

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