If you bring in goods made in Canada, the list of products that pay the extra 50% Section 338 duty is not the same list it was two weeks ago. A new proclamation took some items off and put 100 HTS codes on, starting with goods entered on or after 12:01 a.m. Eastern on October 30, 2026. If you have Canadian product moving now, this is worth a few minutes.
A quick bit of background
In July, Proclamation 11048 used Section 338 of the Tariff Act of 1930 to put an additional 50% ad valorem duty on certain products of Canada, tied to Canada's motor vehicle tariff scheme. After a short suspension under Proclamation 11056, the duty took effect on August 22, 2026. The product list was already adjusted once, by Proclamation 11065 on September 8.
What changed on October 30
On October 23, 2026, the President signed Proclamation 11076, published in the Federal Register on October 30 (91 FR 68861). CBP followed with CSMS # 70314289 on how to file. In short:
- 22 HTS codes came off. Canadian goods in these classifications no longer pay the 50% under heading 9903.03.14: 1212.21.00, 3920.20.00, 3923.10.90, 3923.21.00, 4412.33.06, 4412.33.26, 4412.33.32, 4412.33.57, 4412.34.26, 4412.34.32, 4412.34.57, 4811.51.20, 4811.51.40, 4819.10.00, 4819.40.00, 4823.70.00, 4823.90.10, 8418.69.01, 8419.89.95, 8422.30.91, 8422.40.91 and 8433.60.00. That includes a number of plastic, plywood, and paper and paperboard lines, plus a few machinery codes.
- 100 HTS codes went on. CBP attached the full updated list for 9903.03.14 to the CSMS, with the new codes in bold. If you import from Canada, check your codes against that list rather than relying on last month's version.
- Nothing changed for 9903.03.12 or 9903.03.13. Those lists stay as they were.
- Stacking with Section 232. Proclamation 11076 says the duties under Proclamation 11048, as amended, apply in addition to Section 232 duties. CBP's guidance also notes that since September 15, only goods under 9903.03.13 can claim the 0% heading 9903.03.15. So if a product was paying Section 232 and you assumed that kept it out of Section 338, it is time to look again.
Who this affects
Anyone who is the importer of record on goods of Canadian origin, whether they cross by truck at the northern border, come in by rail, or arrive through any other U.S. port. It also matters if you buy from a U.S. distributor on landed-cost terms, because the duty ends up in your price. The 50% is on top of regular duties, and antidumping or countervailing duties still apply where they already did.
A few other points from the CBP guidance that people miss:
- Goods admitted into a foreign trade zone that are subject to this duty can only go in under privileged foreign status (unless they qualify for domestic status).
- Chapter 98 claims generally avoid the duty, but not for 9802.00.40, .50, .60 or 9802.00.80. For those, the duty applies to the value of the repair, processing, or foreign assembly.
- The Section 338 duties under 9903.03.12 to 9903.03.14 are eligible for drawback.
What to do now
- Pull your Canadian HTS codes. Make a short list of every classification you import from Canada and compare it with CBP's updated attachment.
- Watch the entry date. The change follows the date of entry (or withdrawal from warehouse), not the ship date. Goods entered before 12:01 a.m. Eastern on October 30 stay under the old list.
- Recheck your costing. If one of your codes was added, a 50% duty can change your margins overnight. If one was removed, make sure you stop paying it.
- Look at your origin. The duty applies to products of Canada. Goods that only pass through Canada are a different question, and origin should be documented, not assumed.
- Ask about options. Depending on the product, an FTZ, bonded warehouse, or drawback may be worth a conversation.
Need help with Canadian entries?
DM CUSTOMS is based in Miami and files at U.S. ports nationwide. We offer fast service and dedicated attention on every shipment. If you want us to check your HTS codes against the new list or review how a pending entry should be filed, send us a message.