CBP Issues Last-Minute Filing Rules for 50% Section 338 Duties on Canadian Goods

CBP activates the Section 338 entry framework for August 22

CSMS #69606660, released at 11:16 p.m. EDT on August 21, instructs importers and filers to use HTSUS headings 9903.03.12 through 9903.03.16 for covered Canadian-origin goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on August 22. The guidance implements the July 20 Section 338 proclamations after Proclamation 11056 moved the start date from August 19 to August 22.

The new additional duties do not replace ordinary duties or other trade-remedy charges. CBP states that covered products remain subject to any applicable AD/CVD and other duties, taxes, fees, and charges. The CSMS attachment supplies the Chapter 1–97 classifications mapped to each Chapter 99 heading, so classification and origin must be tested before choosing the 50% or 0% line.

Canada suspends talks and announces a matching response

Late on August 21, Prime Minister Mark Carney said Canada had suspended negotiations with the United States and recalled its negotiators. His statement said the U.S. intended to impose a 50% tariff on roughly C$28 billion of Canadian goods at midnight and that Canada would match the tariffs dollar for dollar. As of the statement, Canada had not yet published the product list, individual rates, customs surtax order, or effective date for the countermeasures. Read the Prime Minister’s August 21 statement.

For U.S. exporters, that announcement created a pending Canadian landed-cost risk, not yet a filing instruction. Canadian importers and U.S. sellers needed to avoid quoting a counter-tariff rate until Finance Canada and the Canada Border Services Agency published the legal product coverage and implementation terms.

Commerce orders preliminary deposits on Mexican winter strawberries

Commerce preliminarily found fresh and chilled winter strawberries from Mexico to be sold at less than fair value. CBP is to suspend liquidation and collect deposits on subject merchandise entered on or after August 21 at 5.28% for Driscoll’s Operaciones, 3.37% for Mainland Farms, and 4.83% for all others. The written scope covers Mexican strawberries entered from November 1 through March 31 and lists HTSUS 0810.10.4020, 0810.10.4040, 0810.10.4060, and 0810.10.4080 for customs convenience; the written description controls. Read the preliminary determination, 91 FR 54297.

The determination is preliminary, not a final order. Commerce postponed the final determination to no later than 135 days after publication and extended provisional measures from four months to no more than six months.

Action list for importers and brokers

• Flag Canadian entries with an entry or warehouse-withdrawal time at or after 12:01 a.m. eastern time on August 22.
• Match the Chapter 1–97 classification to CBP’s attached Canada HTS list before assigning 9903.03.12–9903.03.16.
• Test Section 232, civil-aircraft, Chapter 98, and FTZ treatment; do not assume the 0% Section 338 heading eliminates other duties.
• Update winter-strawberry deposit logic by exporter/producer and preserve the written-scope analysis.
• For Canada-bound sales, add a contract reservation for countermeasures but wait for official Canadian tariff lines and implementation rules.

What to watch next

Watch for Canada’s promised product list and legal instrument, any CBP correction to the Section 338 message, and Commerce’s final strawberry determination. The Canadian measure was announced on August 21 but was not yet legally detailed that day.

Frequently asked questions