The Section 338 duty list on Canadian goods changed at 12:01 this morning. If you buy anything from Canada, your HTS code may have moved onto it overnight.
CBP published the guidance Friday afternoon. (CSMS #69851916, September 11, 2026) It adds 122 HTSUS classifications to the 50 percent additional duty under headings 9903.03.12 and 9903.03.14, effective for goods entered for consumption on or after 12:01 a.m. eastern time on September 15.
Ten classifications came off the list in the same message. Two left 9903.03.12, including liqueurs and cordials at 2208.70.00. Eight left 9903.03.14, a set running from salt at 2501.00.00 to fishing rods at 9507.10.00, with refined lead and electrical panel boards in between. Nothing under 9903.03.13 changed.
Two proclamations signed September 8 drive this, one covering alcoholic beverages and one covering motor vehicles. The motor vehicle proclamation, 11065, ran in Monday's Federal Register. (91 FR 58339)
The bigger date is September 29
A third proclamation signed the same day does something duties do not. It stops the goods entirely.
Proclamation 11063 excludes certain Canadian products from importation into the United States, effective 12:01 a.m. eastern time on September 29, 2026. (91 FR 58325) The products are named in an annex. They come off the 50 percent duty list and onto a list that cannot enter at any price.
One carve-out exists and it is narrow. Product already imported but not yet entered for consumption before September 29 stays under the 50 percent rate. What arrives after is turned away.
CBP's Friday message says nothing about the ban. Filer guidance has not come out. That leaves two weeks of runway on a rule with no published implementation detail, which is exactly how freight ends up parked at a crossing.
How the 50 percent stacks
The proclamation text is explicit about stacking. The Section 338 duty applies "in addition to duties imposed pursuant to section 232 of the Trade Expansion Act of 1962." CBP adds that goods under 9903.03.12 through 9903.03.16 stay subject to antidumping, countervailing, and the other duties and fees that already applied.
Two operational details matter more than they look:
- Foreign trade zones. Covered product admitted to an FTZ may only be admitted under privileged foreign status, unless it qualifies for domestic status. The zone does not let you wait out the duty.
- Drawback. Duties under 9903.03.12 through 9903.03.14 are eligible for drawback. That is worth knowing if any of your volume gets re-exported.
The zero percent carve-out at 9903.03.15 also narrowed. As of today, only goods subject to 9903.03.13 can claim it. Steel, aluminum, vehicle parts, wood products, semiconductor articles, and patented pharmaceutical articles all sit in that heading. (CSMS #69606660, August 21, 2026) A claim that worked against a different subdivision last week does not work this week.
What this means for your brand
Pull your Canadian purchase orders and get the HTS codes in front of your customs broker this week. A brand shipping 1,000 to 25,000 orders a month usually has Canadian-origin inputs buried somewhere in the bill of materials, whether that is packaging stock or a private-label item from a contract manufacturer in Ontario. Those are the ones nobody checks. Paper and electrical codes both show up in Monday's changes, so the exposure is not limited to the obvious categories.
Then look at the calendar. September 29 is two weeks out. Most Canadian freight moves by truck, so you have days of lead time to work with rather than the month an ocean booking would buy you. We covered the other direction of this fight when Canada's counter-tariffs landed September 8. Both governments are now using lists that move with a few days of notice. Plan around the list, not around the negotiation.
The practical move is to get what you can into a US warehouse and stop guessing. Inbound receiving in Canal Winchester counts and racks product as it lands, and orders go out within 24 hours once it is in the system. Sixty percent of the US and Canadian population sits within 600 miles of the building, so pulling inventory south early does not cost you transit days on the way back out.
Classification and entry filing belong to your customs broker and your trade counsel. That is their job, not ours. Send us your inbound schedule and we will tell you what we can receive and when.
FAQ
Does this change what I ship to customers in Canada?
No. These proclamations cover goods entering the United States from Canada. Parcels going the other way run under Canada's rules, including the counter-tariffs that took effect September 8. Our international shipping handles the outbound side through FlavorCloud, DHL, UPS, and USPS, with DDP available so duties get collected at checkout.
My supplier is Canadian but the product is made elsewhere. Does the duty apply?
Country of origin decides it, not the ship-from address. Section 338 reaches products of Canada. A Canadian distributor shipping goods manufactured in a third country is a different analysis, and it is one to run with your broker before the entry is filed rather than after it clears.