In a Cargo Systems Messaging Service (CSMS) bulletin published on September 11, 2026, U.S. Customs and Border Protection (CBP) provided guidance on the modifications to the Section 338 duties on certain Canadian goods.

These modifications were outlined in the “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 Alcoholic Beverages and Motor Vehicles” Presidential Proclamation published on September 8, 2026.

This guidance reviews the chapter 99 headings and provides a list of classifications that will be subject to these Section 338 duties. The duty imposed by headings 9903.03.12 to 9903.03.14 will not apply to goods that are claimed under certain chapter 98 subheadings.

CBP also confirmed that manufacturing drawback claims shall be available on these Section 338 duties imposed under headings 9903.12 to 9903.03.14.

In addition, products entered into a Foreign Trade Zone (FTZ) that are subject to the duties imposed by the proclamation may only be entered under “privileged foreign status,” unless eligible for admission under “domestic status”, and will be subject to these Section 338 duties when entered for consumption.

CSMS # 69851916 can be found here:
https://content.govdelivery.com/bulletins/gd/USDHSCBP-429db0c?wgt_ref=USDHSCBP_WIDGET_2

The “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 Alcoholic Beverages and Motor Vehicles” Presidential Proclamation can be found here:
https://www.whitehouse.gov/presidential-actions/2026/09/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-alcoholic-beverages/