Canada Section 338 import ban for alcohol, dairy, and motor vehicles (effective Sept 29, 2026)

Three September 11, 2026 proclamations under 19 U.S.C. § 1338 flip certain Canadian products from the existing 50% additional duty regime to an import ban. Effective for goods imported on or after 12:01 a.m. eastern time on September 29, 2026, annex-listed products of Canada are excluded from importation into the United States. This is not a higher duty rate.

Proc. 11061 / 11062 / 11063: annex-listed Canadian alcohol, dairy, and motor-vehicle products excluded from importation on or after 12:01 a.m. ET Sept 29, 2026. In-transit goods already imported but not entered for consumption stay on the prior 50% duty.

The three proclamations

• 11061: certain alcoholic beverages that are products of Canada, as set forth in that proclamation's Annex, are excluded from importation (replacing coverage under Proc. 11046 for those annex products).
• 11062: certain products of Canada in the dairy annex are excluded from importation (replacing coverage under Proc. 11047 for those annex products).
• 11063: certain products of Canada in the motor-vehicle annex are excluded from importation (replacing coverage under Proc. 11048 for those annex products).

In-transit rule (same construction in all three)

Products that will be subject to the ban that were imported, but not yet entered for consumption, or withdrawn from warehouse for consumption, prior to September 29, 2026, remain subject to the prior 50 percent duty rate under:

• Proc. 11046 for alcohol products moving under the 11061 ban
• Proc. 11047 for dairy products moving under the 11062 ban
• Proc. 11048 for motor-vehicle products moving under the 11063 ban

Each proclamation also states that, besides moving certain products from the additional ad valorem duties to the ban, it does not otherwise change which products remain subject to the additional duties under the related September 8, 2026 scope-modification proclamations.

Not the Aug 22 duties article, and not CSMS #69851916

Keep three instruments separate:

• Aug 22 duty regime: CBP filing for the 50% Section 338 additional duties (headings 9903.03.12–9903.03.16) is covered in Section 338 Canada duties and drawback (CSMS #69606660).
• Sept 15 duty-scope change: CSMS #69851916 implements Proclamations 11064/11065 (alcohol and motor-vehicle duty-scope add/remove). It is not the Sept 29 import ban.
• Sept 29 import ban: Procs. 11061/11062/11063 exclude annex-listed products from importation for goods imported on or after 12:01 a.m. ET Sept 29, 2026.

CSMS #69851916 context (duty scope only)

For entries still on the duty path (not the ban), CSMS #69851916 (Sept 15 effective for the 11064/11065 modifications) includes these operational points as published:

• As of September 15, 2026, only goods subject to 9903.03.13 may claim 9903.03.15.
• Additional duties under headings 9903.03.12 to 9903.03.14 are eligible for drawback.
• FTZ: goods not eligible for domestic status may be admitted only as privileged foreign status and remain subject to applicable ad valorem duty on entry for consumption.
• Chapter 98 carve-outs apply as published in the CSMS (with the stated exceptions).

Banned annex products are excluded from importation. Do not assume the CSMS duty, drawback, FTZ, or Chapter 98 coding rules apply to merchandise that is barred from entry under 11061/11062/11063.

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.