US Suspends 50% Additional
Tariffs on Certain Canadian Goods; New CBP Filing Rules Effective August 22
·
US
tariff suspension: The
US temporarily suspended the 50%
additional tariffs imposed on certain Canadian imports under
Presidential Proclamations 11046, 11047 and 11048.
·
Suspension
period: The
suspension took effect August
19, 2026 and ended at 12:01
a.m. ET on August 22, 2026.
·
New
CBP guidance: US
Customs and Border Protection (CBP) issued instructions for imports from Canada
entered for consumption, or withdrawn from warehouse for consumption, on or after August 22, 2026.
·
50%
additional duty restored:
HTSUS headings 9903.03.12,
9903.03.13 and 9903.03.14 attract an additional 50% ad valorem duty on
specified Canadian-origin products.
·
0%
additional duty: HTSUS
heading 9903.03.15
carries a 0% additional
duty for specified products, including:
o Aluminum, steel and copper articles and
derivatives
o Passenger vehicles and light trucks
o Vehicle parts
o Medium- and heavy-duty vehicles and parts
o Wood products
o Semiconductor articles
o Patented pharmaceutical articles
·
Civil
aircraft exemption:
Heading 9903.03.16
provides a 0% additional
duty for Canadian civil aircraft, engines, parts, components
and ground flight simulators.
·
Other
duties remain:
Products covered by these headings continue to be subject to applicable antidumping, countervailing and other
duties, taxes, fees and charges.
·
Chapter
98:
Additional duties generally do not apply where goods are properly entered under
applicable Chapter 98
provisions, subject to specified exceptions, including certain
repair/alteration and assembly provisions.
·
Foreign
Trade Zones:
Covered goods admitted into US FTZs must generally enter under privileged foreign status
and will be subject to the applicable duty rate upon entry for consumption.
·
Drawback: The additional duties under the specified
headings are eligible for
drawback.
·
HTSUS
reporting sequence: Entry
summaries must generally report Chapter
98 first, followed by applicable Chapter 99 additional-duty provisions,
trade-remedy duties, replacement/miscellaneous provisions, quotas and finally
the Chapter 1-97 commodity
classification.
·
Entered
value: The
entered value should generally be reported against the Chapter 1-97 HTSUS classification,
unless Chapter 98 rules require otherwise.
·
Overall
impact: The
guidance provides importers and customs brokers with the post-suspension tariff classification
and entry-filing requirements for Canadian goods, while
clarifying products subject to 50%
duties versus 0% additional duties.
Section 338 Additional
Duties on Certain Goods of Canada
The purpose
of this message is to provide guidance on the implementation of the July 20, 2026,
Presidential Proclamations on Imposing Additional Duties to Offset Canadian Discrimination
Against the Commerce of the United States with Respect to Alcoholic Beverages, Dairy,
and Motor Vehicles.
On August
18, 2026, the Executive Office of the President issued “Canada; Temporary Suspension
of Additional Duties To Offset Discrimination Against U.S.
Commerce With Respect to Alcoholic Beverages, Dairy, and
Motor Vehicles (Proc. 11056)" to suspend additional duties of 50 percent on
certain imported products of Canada, effective August 19, 2026 pursuant to Presidential
Proclamations 11046, 11047, and 11048 until 12:01 a.m. eastern time on August 22,
2026.
GUIDANCE
This guidance
provides instructions for importers, brokers, and filers on filing entries to U.S.
Customs and Border Protection (CBP) on certain imports from Canada entered for consumption,
or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard
time on August 22, 2026, as provided in the Harmonized Tariff Schedule of the United
States (HTSUS) under headings 9903.03.12–9903.03.16.
See the attachment
for the Chapter 1 to 97 HTSUS classifications, which correspond to each Chapter
99 heading. See 91 FR 46639, 91 FR 46653, and
91 FR 46663.
Effective
with respect to goods from Canada entered for consumption, or withdrawn from warehouse
for consumption, on or after 12:01 a.m. eastern standard time on August 22, 2026:
9903.03.12: Articles the product of Canada as provided in subdivision
(b)(1) of U.S. note 51
50% additional
ad valorem rate of duty
9903.03.13: Articles the product of Canada as provided in subdivision
(b)(2) of U.S. note 51
50% additional
ad valorem rate of duty
9903.03.14: Articles the product of Canada as provided in subdivision
(b)(3) of U.S. note 51
50% additional
ad valorem rate of duty
9903.03.15:
Articles of aluminum,
of steel or of copper or derivative aluminum or steel
articles; passenger vehicles (sedans, sport utility vehicles, crossover utility
vehicles, minivans and cargo vans) and light trucks; parts of passenger vehicles
(sedans, sport utility vehicles, crossover utility vehicles, minivans and cargo
vans) and light trucks; medium- and heavy duty vehicles; parts of medium- and heavy
duty vehicles; wood products; semiconductor articles; and patented pharmaceutical
articles, as provided in subdivision (c) of U.S. note 51
0% additional
ad valorem rate of duty
9903.03.16:
Articles of civil aircraft (all aircraft
other than military aircraft and unmanned aircraft); their engines, parts and components;
their other parts, components and subassemblies; and ground flight simulators and
their parts and components the product of Canada, as provided for in subdivision
(d) of U.S. note 51
0% additional
ad valorem rate of duty
Products that
are provided for in headings 9903.03.12–9903.03.16 shall continue to be subject
to antidumping, countervailing, or other duties, taxes, fees, exactions and charges
that apply to such products, as well as to the additional ad valorem rate of duty
imposed by this heading.
Chapter 98
The additional
duty imposed by headings 9903.04.12 to 9903.04.14 shall not apply to goods for which
entry is properly claimed under a provision of chapter 98 of the tariff schedule
pursuant to applicable regulations of CBP, and whenever CBP agrees that entry under
such a provision is appropriate, except for goods entered under subchapter XXIII
of chapter 98 of the tariff schedule, subheadings 9802.00.40, 9802.00.50 and 9802.00.60,
and heading 9802.00.80. For subheadings 9802.00.40, 9802.00.50 and 9802.00.60, the
additional duty applies to the value of repairs, alterations or processing performed,
as described in the applicable subheading. For heading 9802.00.80, the additional
duty applies to the value of the article assembled abroad, less the cost or value
of such products of the United States, as described.
Foreign Trade
Zone Any product subject to the duties
imposed in these Proclamations that is subject to the additional duty imposed by
this action, and that is admitted into a U.S. foreign trade zone, except any product
that is eligible for admission under “domestic status” as defined in 19 C.F.R. 146.43,
only may be admitted as “privileged foreign status,” as defined in 19 C.F.R. 146.41,
and will be subject upon entry for consumption to any ad valorem rate of duty related
to the classification under the applicable HTSUS subheading.
Drawback
The additional
duty imposed by headings 9903.04.12 to 9903.04.14 is subject to drawback.
HTSUS Sequence When submitting an entry summary in which a heading
or subheading in Chapter 98 and/or 99 is claimed on imported merchandise, the following
instructions will apply for the order of reporting the HTSUS on an entry summary
line.
1. Chapter
98 (if applicable)
2. Chapter
99 number(s) for additional duties (if applicable)
3. For trade
remedies,
·
First report
the Chapter 99 HTSUS for Section 301,
·
Followed by
the Chapter 99 HTSUS for Section 122,
·
Followed by
the Chapter 99 HTSUS for Section 232
·
Followed by
the Chapter 99 HTSUS for Section 201 duties (if applicable),
·
Followed by
the Chapter 99 HTSUS for Section 201 quota (if applicable).
4. Chapter
99 number(s) for REPLACEMENT duty or other use (i.e., Miscellaneous Tariff Bill
or other provisions) 5. Chapter 99 number for other quota
(not covered by #3) (if applicable) 6. Chapter 1 to 97 Commodity Tariff
The entered
value of the imported product reported on the entry summary line should be reported
on the Chapter 1-97 HTSUS classification, unless Chapter 98 reporting provisions
require the entered value to be reported differently.