Canada Section 338 ACE rejects: error codes 239, 335, and 886

Proclamations 11061, 11062, and 11063 exclude designated Canada-origin products from importation effective 12:01 a.m. ET September 29, 2026. CSMS #70050117 and CSMS #70050970 are the ACE implementation notes: new reject codes on e214 FTZ, Cargo Release, and Entry Summary, plus the operational rule that covered goods are out of FTZ admission, bonded warehouse, in-bond, and consumption entry.

Canada Section 338 ACE rejects: 239 (e214 FTZ), 335 (Cargo Release), 886 (Entry Summary). Effective 12:01 a.m. ET Sept 29, 2026 for designated Canada-origin HTS under 0404, 1702, 1703, 2202–2208, 8711.

How this relates to the proclamations article

The Library already covers the proclamations themselves in Canada Section 338 import ban for alcohol, dairy, and motor vehicles. That piece is about the legal flip from 50% additional duty to exclusion from importation. This piece is the ACE reject map filers will actually see: codes 239, 335, and 886.

Covered headings and packaging scope

For alcoholic beverages, CSMS #70050970 says the import exclusion applies only where the merchandise meets any applicable Alcohol Annex scope limitation. Where the limitation states Packaged, the exclusion applies to products packaged in bottles, cans, boxes, kegs, or other similar direct-to-consumption containers. Alcohol that does not meet an applicable scope limitation is not under the import exclusion and remains subject to the applicable 50% ad valorem duty under Proclamation 11046.

ACE error codes

• 239 – HTS NOT ALLOWED FOR COUNTRY OF ORIGIN (e214 FTZ admission; Appendix P updated)
• 335 – HTS NOT ALLOWED FOR COUNTRY OF ORIGIN (Cargo Release Condition Codes updated)
• 886 – HTS PROHIBITED FOR CO (Entry Summary Update/Create; message text truncated as published in CSMS #70050970)

CSMS #70050970 is blunt on the operational consequence: exclusion from importation precludes covered products from admission into an FTZ or bonded warehouse, in-bond transportation, and entry for consumption. As of the effective time, any entry containing covered products will be unconditionally rejected. Entries in ACE that contain covered products and have not been released will be cancelled as of that same timestamp.

Pre-September 29 FTZ / bonded goods

Covered products imported before 12:01 a.m. ET September 29, 2026 remain eligible to be entered for consumption. If they were already in a bonded warehouse or admitted to an FTZ before the exclusion took effect, they may be withdrawn for consumption and are subject to the 50% ad valorem duty under Proclamations 11046, 11047, and 11048, as applicable. That is a withdrawal path for pre-effective inventory, not a path to admit new covered goods after the ban.

This article is for general information and is not legal or tax advice. Drawback eligibility depends on your specific facts, and final refunds are determined by CBP at liquidation. Consult a licensed customs broker or attorney for your situation.