Canada 338: Proc. 11076 removes 22, adds 100 HTS
Section 338 motor-vehicle scope swap under 9903.03.14. Chapter 98, FTZ privileged foreign, and drawback rules in the CSMS still apply.
Proclamation 11076 of October 23, 2026 further modifies the scope of Canadian products subject to the 50 percent Section 338 additional duties tied to motor-vehicle discrimination (FR Doc. 2026-22292; 91 FR 68861, published October 30, 2026). CBP CSMS #70314289 (October 29, 2026) implements the change for ACE filing under heading 9903.03.14. Effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on October 30, 2026: 22 HTSUS subheadings come off the duty, and 100 are added.
CSMS #70314289: the additional duties imposed by headings 9903.03.12 to 9903.03.14 are eligible for drawback.
How we got here
Proclamation 11048 of July 20, 2026 imposed Section 338 additional ad valorem duties on certain products of Canada under 19 U.S.C. 1338. Proclamation 11056 suspended them for 3 days; they took effect 12:01 a.m. eastern time August 22, 2026. Proclamation 11065 of September 8, 2026 modified the motor-vehicle-related scope. Proclamation 11076 is the next scope change. For the August filing guide and drawback sentence as first published, see Section 338 Canada duties and drawback. Separate September proclamations converted some annex-listed products to an import ban (Canada Section 338 import ban); that is a different action from this October scope swap.
CSMS #70314289 · sent Oct 29, 2026 · effective entry date Oct 30, 2026 12:01 a.m. ET
Affected heading: 9903.03.14 (50% additional ad valorem); no changes to 9903.03.12 or 9903.03.13
Annex I: Part A removes 22 subheadings; Part B adds 100; Annex II amends U.S. note 51(b)(3)
What came off and what went on
The duties apply in addition to Section 232 duties. Part B coverage excludes civil aircraft or aircraft parts meeting General Note 6 criteria. Annex II modifies subdivision (b)(3) of U.S. note 51 to subchapter III of chapter 99.
Part A removals (summarized): seaweed; certain polypropylene film and plastic packing articles; thin plywood; certain coated paperboard; corrugated boxes; paper sacks; molded pulp; and machinery lines such as refrigerating equipment nesoi, packing and wrapping machinery, and egg and produce grading machines. The 22 removed subheadings:
- 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, 8433.60.00
Part B additions (summarized; do not treat this as the full list): 13 cocoa powder lines; 13 chemical and consumer product lines (paints, caulks, shampoos, soap, lubricants, reagents, and related); 5 plastics and rubber lines; 9 wood lines; 8 paper lines; 43 carpet and textile floor covering lines; and 9 machinery and other lines (window air conditioners, chest freezers, hand tools, valves, canoes, electro-surgical instruments, spectrometers, and archery equipment). Use Annex I Part B and the CSMS attachment (added codes in bold) for the complete 100.
Chapter 98, FTZ, and drawback
Per CSMS #70314289: the additional duty does not apply to goods properly entered under a chapter 98 provision, except subchapter XXIII and 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80 (with the value rules stated in the CSMS). Subject products admitted to an FTZ may only be admitted in privileged foreign status (19 CFR 146.41), unless eligible for domestic status (146.43). The CSMS states the additional duties imposed by headings 9903.03.12 to 9903.03.14 are eligible for drawback.
Action items
- Re-check classifications of Canadian-origin goods entered on or after October 30, 2026 against Annex I Parts A and B and the CSMS list.
- Update ACE entry lines for 9903.03.14 (no changes to 9903.03.12 or 9903.03.13).
- Track drawback eligibility of these additional duties for exports under headings 9903.03.12 to 9903.03.14.
- Proc. 11076 (FR Doc. 2026-22292; 91 FR 68861) and CSMS #70314289: remove 22 HTSUS subheadings from, and add 100 to, the 50% Section 338 duty under 9903.03.14, effective Oct 30, 2026 12:01 a.m. ET.
- Duties apply in addition to Section 232. Part B excludes civil aircraft/parts meeting General Note 6. Chapter 98 and FTZ privileged-foreign rules in the CSMS still apply.
- CSMS: additional duties under 9903.03.12 to 9903.03.14 are eligible for drawback. Re-check Canadian classifications and ACE lines for post-Oct 30 entries.
- Proclamation 11076: Further Modifying the Scope of Products of Canada Subject to the Additional Duties Imposed To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Motor Vehicles (FR Doc. 2026-22292; 91 FR 68861) · The President
- FR Doc. 2026-22292 (PDF) · GovInfo
- CSMS #70314289: Further Modifying Section 338 Additional Duties on Certain Goods of Canada · U.S. Customs and Border Protection
- 19 U.S.C. § 1338 - Discrimination by foreign countries · Legal Information Institute
- 19 CFR Part 146 - Foreign Trade Zones · eCFR
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.