Additional Duties on Imports
from Canada Raised to 35% from 25%, Goods under USMCA Exempted
The U.S.
Customs and Border Protection (CBP) has updated its guidance on additional
import duties for goods from Canada, in accordance with a series of
executive orders aimed at addressing illicit drug flows across the northern
border.
Key Provisions (Effective August 1, 2025, 12:01
a.m. EDT):
Standard Canadian Imports
·
HTSUS Code 9903.01.10
·
Applies to: All Canadian-origin articles,
except those:
o
Under HTS codes 9903.01.11 to 9903.01.15, and
o
Personal-use goods in accompanied baggage.
·
Duty Rate: 35% ad valorem (increased from previous
25%).
Transshipped Canadian Goods (to evade duties)
·
HTSUS Code 9903.01.16
·
Applies to: Canadian-origin goods determined by
CBP to be transshipped to evade duties (excluding
those under 9903.01.11, .12, and .14).
·
Duty Rate: 40% ad valorem.
Purpose of Change
To enforce stricter trade measures in response to illicit
drug trafficking across the U.S.-Canada border, as directed under the
following executive orders:
·
EO 14193 (Feb 1, 2025)
·
EO 14197 (Feb 3, 2025)
·
EO 14226 (Mar 2, 2025)
·
EO 14231 (Mar 6, 2025)
·
EO (July 31, 2025 amendment)
Other Notes:
·
These changes supersede CSMS 64336037
(earlier guidance).
·
CBP will issue further updates as needed via the Cargo Systems Messaging Service
(CSMS).
Importers
and brokers should
review classifications carefully and monitor transshipment risks to ensure
compliance and avoid the higher 40% penalty rate.
[ABS News Service01.08.2025]
The
purpose of this message is to update guidance on the additional duties due on imports
that are the products of Canada, pursuant to Executive Order 14193, “Imposing Duties
to Address the Flow of Illicit Drugs Across Our Northern Border” issued on February
1, 2025, as amended by:
·
Executive
Order 14197, “Progress on the Situation at our Northern Border” issued on February
3, 2025,
·
Executive
Order 14226, “Amendment to Duties to Address the Flow of Illicit Drugs Across Our
Northern Border” issued on March 2, 2025,
·
Executive
Order 14231, “Amendment to Duties to Address the Flow of Illicit Drugs Across Our
Northern Border” issued on March 6, 2025, and
·
Executive
Order, “Amendment to Duties to Address the Flow of Illicit Drugs Across Our Northern
Border” issued on July 31, 2025.
·
This
CSMS updates CSMS 64336037 with the following information only.
Guidance
For
goods that are products of Canada, that are entered for consumption, or withdrawn
from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on
August 1, 2025, the following HTSUS classifications and additional duty rates apply:
9903.01.10: All imports of articles that are products of Canada,
other than products classifiable under headings 9903.01.11, 9903.01.12, 9903.01.13,
9903.01.14 or 9903.01.15 and other than products for personal use included in accompanied
baggage of persons arriving in the United States, will be assessed an additional
ad valorem rate of duty of 35%.
All
articles that were subject to the additional ad valorem rate of duty of 25 percent
under Executive Order 14193, as amended, shall instead be subject to an additional
ad valorem rate of duty of 35 percent, effective 12:01a.m. eastern daylight time
on August 1, 2025.
For
goods that are determined by U.S. Customs and Border Protection (CBP) to have been
transshipped to evade the additional ad valorem for products
of Canada, CBP will direct the importer that such goods are subject to the following
HTSUS classification and additional duty rate:
9903.01.16: Except for products described in 9903.01.11, 9903.01.12,
and 9903.01.14, articles the product of Canada that are determined by CBP to have
been transshipped to evade applicable duties, will be
assessed an additional ad valorem rate of duty of 40%, in lieu of the rates that
would otherwise be applicable under 9903.01.10, 9903.01.13 and 9903.01.15.
CBP
will provide additional guidance to the trade community through CSMS messages as
appropriate.