Forced Labor Enforcement
See the following message from Sidley Austin LLP regarding the Forced Labor Enforcement by the Department of Homeland Security.
On Friday afternoon, the Department of Homeland Security announced that the Forced Labor Enforcement Taskforce (FLETF) is adding 43 entities to the Uyghur Forced Labor Prevention Act (UFLPA) entity list.
This is the first action by FLETF during the second Trump administration (and may be an effort to show the world that the United States is serious about forced labor enforcement after it imposed tariffs on imports from 60 jurisdictions last week purportedly because those jurisdictions have not adopted U.S.-style forced labor laws and/or have not enforced them to U.S. standards).
Effective, Monday, August 3, 2026, U.S. Customs and Border Protection will apply a rebuttable presumption that articles produced by these entities were produced with forced labor and are, therefore, prohibited from entry into the United States. The listed entities are from a variety of industries, including pharmaceuticals, aluminum, gold, copper, lithium, textiles, food products, and others.
Many of these companies appear to produce raw/intermediate materials that could be in a company’s extended supply chain (i.e., given what they produce, these companies may not be a direct supplier, but could be a supplier to a supplier, etc.).
All companies should review the list of companies (including the entity-specific information FLETF provided) to confirm whether any of these entities are in their supply chain. There has been a significant increase in customs-related enforcement, including forced labor-related enforcement, in recent months. We expect this trend to continue/intensify.
If you have any questions, please contact our office.
Stay Updated on Customs Compliance
Latest Updates on Section 301 Forced Labor Tariffs
See the following message from Roll & Harris LLP on the current updates for Section 301 “Forced Labor” tariffs.
USTR Slaps New Section 301 "Forced Labor" Tariffs on Imports from 60 Countries - Effective Today
At the direction of President Trump, U.S. Trade Representative Jamieson Greer has taken final action in USTR's Section 301 investigations into the failure of 60 economies to impose and effectively enforce a ban on the importation of goods made with forced labor, imposing new tariffs of 10% or 12.5% on nearly all imports from those countries. These 60 economies account for 99.4% of U.S. imports, so the odds are high most supply chains are affected. A copy of the draft Federal Register notice may be downloaded here, but below is a short summary.
The tariffs are effective as of 12:01 am earlier today. The additional duties apply to products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern time on July 24, 2026. To be sure, there is a narrow exception for goods loaded onto a vessel and in transit on the final mode of transit before 12:01 a.m. Eastern on July 24, 2026, and entered for consumption before 12:01 a.m. Eastern on July 28, 2026. Such goods are not subject to the new Section 301 tariffs and are reported using tariff classification 9903.05.85.
The tariff rates – 10% or 12.5% – depend on the country of origin of the good. A 10% rate applies to countries that have imposed a forced labor import ban, committed to do so through an Agreement on Reciprocal Trade (ART), or put in place a partial regime with that effect:
Argentina
Bangladesh
Cambodia
Canada
Ecuador
El Salvador
Guatemala
Honduras
India
Indonesia
Jordan
Malaysia
Mexico
Pakistan
Sri Lanka
Trinidad and Tobago, and
United Kingdom.
Every other investigated economy – including China, Brazil, Vietnam, Taiwan, and Israel – gets 12.5%. For a handful of countries the duty is applied "net of MFN": for the European Union and Taiwan the Section 301 duty is set so the total of the MFN duty plus the Section 301 duty equals 10% (and is zero where the MFN rate already meets or exceeds 10%), and for Japan, Korea, and Switzerland the same math applies to a 12.5% ceiling. New 9903.05.20 thru 9903.05.84 tariff provisions set forth the new additional tariff classification required to be reported for goods of each of the 60 countries of origin.
These tariffs “stack”. Products subject to the new Section 301 duties are also subject to any other applicable duties in Chapter 99, so the forced labor tariff is generally imposed on top of existing duties.
Key exemptions – check the Annexes. The action does not cover informational materials, donations, or accompanied baggage, and – importantly – it does not apply to articles already subject to Section 232 tariffs, including aluminum, steel, and copper articles and their derivatives, autos and auto parts, medium- and heavy-duty vehicles and their parts, wood products, and semiconductor articles.
USTR also exempted a long list of specified products (raw materials, goods that could cause economy-wide disruptions, and goods unavailable from domestic or other sources), added 471 additional product exclusions per economy, and adopted certain country-specific exemptions.
Goods properly entered under most Chapter 98 provisions are also excluded, though partial-duty provisions such as 9802.00.80 remain subject to the duty on the applicable value.
USMCA origin goods are also exempt.
Importers should review new tariff codes 9903.05.86 thru 9903.06.2, which correspond to the exemptions/exclusions set forth in note 52(b) thru (j) to subchapter III of Chapter 99.
No exclusion process, and no drawback relief for FTZ goods. USTR declined to establish a product exclusion process, finding it inconsistent with the President's direction. And any covered product admitted to a U.S. foreign trade zone must be admitted in "privileged foreign status" (unless eligible for "domestic status").
Textile quotas are coming. USTR intends to establish tariff-rate quotas for Bangladesh, Cambodia, Indonesia, and Malaysia to allow a set volume of textiles and apparel to enter free of the Section 301 duty, but until those TRQs are established through a separate Federal Register notice, the new Section 301 tariffs apply to those goods.
Like other tariff measures of the past two years – today's new tariffs require importers to continue to assess the country of origin, tariff classification, and exemption eligibility of their products.
We are continuing to monitor these developments and to assist importers in the constantly changing tariff minefield.
If you have any questions, please contact our office.
Stay Updated on Customs Compliance
Important Notice - Section 301 Forced Labor Import Duties
Please see the following important update from CBP regarding the tariffs imposed on imports from sixty economies under Section 301 Forced Labor Action.
CSMS # 69326983 - GUIDANCE: Section 301 Forced Labor Import Duties
The purpose of this message is to provide guidance regarding the Office of the United States Trade Representative’s action imposing 10 percent to 12.5 percent tariffs on imports from sixty economies with certain exemptions, under section 301 of the Trade Act of 1974, effective July 24, 2026. This action was announced by the United States Trade Representative on July 23, 2026. See USTR Section 301 Forced Labor Action.
GUIDANCE
This guidance provides instructions for importers, brokers, and filers on submitting entries to U.S. Customs and Border Protection (CBP) on imports from the sixty economies specified below entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on July 24, 2026.
Please see the attachment for the Chapter 1 to 97 HTSUS classifications, which correspond to the Chapter 99 headings.
The following Harmonized Tariff Schedule of the United States (HTSUS) classifications will be subject to Section 301 duties as follows:
9903.05.20: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Algeria will be assessed an additional ad valorem duty rate of 12.5%.
9903.05.21: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Angola will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.22: Except for products described in headings 9903.05.85–9903.05.92 and 9903.06.10–9903.06.11, articles the product of Argentina will be assessed an additional ad valorem rate of duty of 10%.
9903.05.23: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Australia will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.24: Except for products described in headings 9903.05.85–9903.05.92, articles the product of the Bahamas will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.25: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Bahrain will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.26: Except for products described in headings 9903.05.85–9903.05.92 and 9903.06.12–9903.06.13, articles the product of Bangladesh will be assessed an additional ad valorem rate of duty of 10%.
9903.05.27: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Brazil will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.28: Except for products described in headings 9903.05.85–9903.05.92 and 9903.06.02–9903.06.03, articles the product of Cambodia will be assessed an additional ad valorem rate of duty of 10%.
9903.05.29: Except for products described in headings 9903.05.85–9903.05.93, articles the product of Canada will be assessed an additional ad valorem rate of duty of 10%.
9903.05.30: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Chile will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.31: Except for products described in headings 9903.05.85–9903.05.92, articles the product of China will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.32: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Colombia will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.33: Except for products described in headings 9903.05.85–9903.05.92 and 9903.05.95, articles the product of Costa Rica will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.34: Except for products described in headings 9903.05.85–9903.05.92 and 9903.05.95, articles the product of Dominican Republic will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.35: Except for products described in headings 9903.05.85–9903.05.92 and 9903.06.18–9903.06.19, articles the product of Ecuador will be assessed an additional ad valorem rate of duty of 10%.
9903.05.36: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Egypt will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.37: Except for products described in headings 9903.05.85–9903.05.92, 9903.05.95, and 9903.06.07–9903.06.09, articles the product of El Salvador will be assessed an additional ad valorem rate of duty of 10%.
9903.05.38: Except for products described in headings 9903.05.85–9903.05.92 and 9903.05.97, articles the product of a member state of the European Union, with an ad valorem (or ad valorem equivalent) rate of duty under column 1 equal to or greater than 10 percent, as provided for in U.S. note 52 to this subchapter, will not be assessed an additional ad valorem rate of duty.
9903.05.39: Except for products described in headings 9903.05.85–9903.05.92 and 9903.05.97, articles the product of a member state of the European Union, with an ad valorem (or ad valorem equivalent) rate of duty under column 1 less than 10 percent, as provided for in U.S. note 52 to this subchapter, will be assessed a combined column one and Section 301 duty rate of 10%.
9903.05.40: Except for products described in headings 9903.05.85–9903.05.92, 9903.05.95, and 9903.06.04–9903.06.06, articles the product of Guatemala will be assessed an additional ad valorem rate of duty of 10%.
9903.05.41: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Guyana will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.42: Except for products described in headings 9903.05.85–9903.05.92 and 9903.05.95, articles the product of Honduras will be assessed an additional ad valorem rate of duty of 10%.
9903.05.43: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Hong Kong, China will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.44: Except for products described in headings 9903.05.85–9903.05.92, articles the product of India will be assessed an additional ad valorem rate of duty of 10%.
9903.05.45: Except for products described in headings 9903.05.85–9903.05.92 and 9903.06.16–9903.06.17, articles the product of Indonesia will be assessed an additional ad valorem rate of duty of 10%.
9903.05.46: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Iraq will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.47: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Israel will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.48: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Japan, with an ad valorem (or ad valorem equivalent) rate of duty under column 1 equal to or greater than 12.5 percent, as provided for in U.S. note 52 to this subchapter, will not be assessed an additional ad valorem rate of duty.
9903.05.49: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Japan, with an ad valorem (or ad valorem equivalent) rate of duty under column 1 less than 12.5 percent, as provided for in U.S. note 52 to this subchapter, will be assessed a combined column one and Section 301 duty rate of 12.5%.
9903.05.50: Except for products described in headings 9903.05.85–9903.05.92 and 9903.06.20–9903.06.21, articles the product of Jordan will be assessed an additional ad valorem rate of duty of 10%.
9903.05.51: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Kazakhstan will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.52: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Kuwait will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.53: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Libya will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.54: Except for products described in headings 9903.05.85–9903.05.92 and 9903.05.99–9903.06.01, articles the product of Malaysia will be assessed an additional ad valorem rate of duty of 10%.
9903.05.55: Except for products described in headings 9903.05.85–9903.05.92 and 9903.05.94, articles the product of Mexico will be assessed an additional ad valorem rate of duty of 10%.
9903.05.56: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Morocco will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.57: Except for products described in headings 9903.05.85–9903.05.92, articles the product of New Zealand will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.58: Except for products described in headings 9903.05.85–9903.05.92 and 9903.05.95, articles the product of Nicaragua will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.59: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Nigeria will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.60: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Norway will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.61: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Oman will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.62: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Pakistan will be assessed an additional ad valorem rate of duty of 10%.
9903.05.63: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Peru will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.64: Except for products described in headings 9903.05.85–9903.05.92, articles the product of the Philippines will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.65: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Qatar will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.66: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Russia will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.67: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Saudi Arabia will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.68: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Singapore will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.69: Except for products described in headings 9903.05.85–9903.05.92, articles the product of South Africa will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.70: Except for products described in headings 9903.05.85–9903.05.92, articles the product of South Korea, with an ad valorem (or ad valorem equivalent) rate of duty under column 1 equal to or greater than 12.5 percent, as provided for in U.S. note 52 to this subchapter, will not be assessed an additional ad valorem duty rate.
9903.05.71: Except for products described in headings 9903.05.85–9903.05.92, articles the product of South Korea, with an ad valorem (or ad valorem equivalent) rate of duty under column 1 less than 12.5 percent, as provided for in U.S. note 52 to this subchapter, will be assessed a combined column one and Section 301 duty rate of 12.5%.
9903.05.72: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Sri Lanka will be assessed an additional ad valorem rate of duty of 10%.
9903.05.73: Except for products described in headings 9903.05.85–9903.05.92 and 9903.05.98, articles the product of Switzerland, with an ad valorem (or ad valorem equivalent) rate of duty under column 1 equal to or greater than 12.5 percent, as provided for in U.S. note 52 to this subchapter, will not be assessed an additional ad valorem duty rate.
9903.05.74: Except for products described in headings 9903.05.85–9903.05.92 and 9903.05.98, articles the product of Switzerland, with an ad valorem (or ad valorem equivalent) rate of duty under column 1 less than 12.5 percent, as provided for in U.S. note 52 to this subchapter, will be assessed a combined column one and Section 301 duty rate of 12.5%.
9903.05.75: Except for products described in headings 9903.05.85–9903.05.92 and 9903.06.14–9903.06.15, articles the product of Taiwan, with an ad valorem (or ad valorem equivalent) rate of duty under column 1 equal to or greater than 10 percent, as provided for in U.S. note 52 to this subchapter, will not be assessed an additional ad valorem duty rate.
9903.05.76: Except for products described in headings 9903.05.85–9903.05.92 and 9903.06.14–9903.06.15, articles the product of Taiwan, with an ad valorem (or ad valorem equivalent) rate of duty under column 1 less than 10 percent, as provided for in U.S. note 52 to this subchapter, will be assessed a combined column one and Section 301 duty rate of 10%.
9903.05.77: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Thailand will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.78: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Trinidad and Tobago will be assessed an additional ad valorem rate of duty of 10%.
9903.05.79: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Türkiye will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.80: Except for products described in headings 9903.05.85–9903.05.92, articles the product of the United Arab Emirates will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.81: Except for products described in headings 9903.05.85–9903.05.92 and 9903.05.96, articles the product of the United Kingdom will be assessed an additional ad valorem rate of duty of 10%.
9903.05.82: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Uruguay will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.83: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Venezuela will be assessed an additional ad valorem rate of duty of 12.5%.
9903.05.84: Except for products described in headings 9903.05.85–9903.05.92, articles the product of Vietnam will be assessed an additional ad valorem rate of duty of 12.5%.
General Exemptions For All Economies
9903.05.85: Articles that (1) were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States before 12:01 a.m. eastern time on July 24, 2026; and (2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern time on July 28, 2026.
9903.05.86: Articles provided for in subdivision (b) of U.S. note 52 to this subchapter.
9903.05.87: Articles provided for in subdivision (c) of U.S. note 52 to this subchapter.
9903.05.88: Articles of civil aircraft (all aircraft other than military aircraft); their engines, parts and components; their other parts, components and subassemblies; and ground flight simulators and their parts and components, as provided for in subdivision (d) of U.S. note 52 to this subchapter.
9903.05.89: Articles for use in pharmaceutical applications, as provided for in subdivision (e) of U.S. note 52 to this subchapter.
9903.05.90: Articles of aluminum, of steel, or of copper or derivative aluminum or steel articles; passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks; parts of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks; medium- and heavy-duty vehicles; parts of medium- and heavy-duty vehicles; wood products; and semiconductor articles, as provided in subdivision (f) of U.S. note 52 to this subchapter.
9903.05.91: Articles that are donations by persons subject to the jurisdiction of the United States, such as food, clothing and medicine, intended to be used to relieve human suffering.
9903.05.92: Articles that are informational materials, including but not limited to publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks and news wire feeds.
Exemptions by Economy (in order of name of economy)
9903.06.10: Articles the product of Argentina, as provided for in subdivision (j)(8)(i) of U.S. note 52 to this subchapter.
9903.06.11: Articles the product of Argentina, as provided for in subdivision (j)(8)(ii) of U.S. note 52 to this subchapter.
9903.06.12: Articles the product of Bangladesh, as provided for in subdivision (j)(9)(i) of U.S. note 52 to this subchapter.
9903.06.13: Articles the product of Bangladesh, as provided for in subdivision (j)(9)(ii) of U.S. note 52 to this subchapter.
9903.06.02: Articles the product of Cambodia, as provided for in subdivision (j)(5)(i) of U.S. note 52 to this subchapter.
9903.06.03: Articles the product of Cambodia, as provided for in subdivision (j)(5)(ii) of U.S. note 52 to this subchapter.
9903.05.93: Articles the product of Canada, as provided for in subdivision (g) of U.S. note 52 to this subchapter.
As provided in heading 9903.05.93, the additional duties imposed by heading 9903.05.29 shall not apply to any products of Canada entered free of duty under the United States-Mexico-Canada Agreement, including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTSUS, but regardless of whether a product is entered under a provision for which the rate of duty “S or S+” appears in the “Special” sub-column
9903.05.95: Articles of textiles or apparel the product of Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras or Nicaragua, as provided for in subdivision (i) of U.S. note 52 to this subchapter.
As provided in heading 9903.05.95, the additional duties imposed by headings 9903.05.33, 9903.05.34, 9903.05.37, 9903.05.40, 9903.05.42, and 9903.05.58 shall not apply to a textile or apparel good as defined in subdivision (d)(v) of general note 29 of the HTSUS which is the product of Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras or Nicaragua, entered free of duty under the Dominican Republic-Central America-United States Free Trade Agreement, including any treatment set forth in subchapter XXII of chapter 98 of the HTSUS
9903.06.18: Articles the product of Ecuador, as provided for in subdivision (j)(12)(i) of U.S. note 52 to this subchapter.
9903.06.19: Articles the product of Ecuador, as provided for in subdivision (j)(12)(ii) of U.S. note 52 to this subchapter.
9903.06.07: Articles the product of El Salvador, as provided for in subdivision (j)(7)(i) of U.S. note 52 to this subchapter.
9903.06.08: Articles the product of El Salvador, as provided for in subdivision (j)(7)(ii) of U.S. note 52 to this subchapter.
9903.06.09: Articles of textiles or apparel the product of El Salvador, as provided for in subdivision (j)(7)(iii) of U.S. note 52 to this subchapter.
If a good of El Salvador is eligible for both (i) the exemption for textile or apparel goods of CAFTA-DR countries that are entered free of duty under the CAFTA-DR (9903.05.95), and (ii) the exemption for textiles or apparel goods of Guatemala (9903.06.06) or El Salvador (9903.06.09) entered free of duty under the CAFTA-DR, then the importer may enter the good under either applicable chapter 99 heading.
9903.05.97: Articles the product of a member state of the European Union, as provided for in subdivision (j)(2) of U.S. note 52 to this subchapter.
9903.06.04: Articles the product of Guatemala, as provided for in subdivision (j)(6)(i) of U.S. note 52 to this subchapter.
9903.06.05: Articles the product of Guatemala, as provided for in subdivision (j)(6)(ii) of U.S. note 52 to this subchapter.
9903.06.06: Articles of textiles or apparel the product of Guatemala, as provided for in subdivision (j)(6)(iii) of U.S. note 52 to this subchapter.
If a good of Guatemala or El Salvador is eligible for both (i) the exemption for textile or apparel goods of CAFTA-DR countries that are entered free of duty under the CAFTA-DR (9903.05.95), and (ii) the exemption for textiles or apparel goods of Guatemala (9903.06.06) or El Salvador (9903.06.09) entered free of duty under the CAFTA-DR, then the importer may enter the good under either applicable chapter 99 heading.
9903.06.16: Articles the product of Indonesia, as provided for in subdivision (j)(11)(i) of U.S. note 52 to this subchapter.
9903.06.17: Articles the product of Indonesia, as provided for in subdivision (j)(11)(ii) of U.S. note 52 to this subchapter.
9903.06.21: Articles the product of Jordan, as provided for in subdivision (j)(13)(ii) of U.S. note 52 to this subchapter.
9903.06.20: Articles the product of Jordan, as provided for in subdivision (j)(13)(i) of U.S. note 52 to this subchapter.
9903.05.99: Articles the product of Malaysia, as provided for in subdivision (j)(4)(i) of U.S. note 52 to this subchapter.
9903.06.01: Articles the product of Malaysia, as provided for in subdivision (j)(4)(ii) of U.S. note 52 to this subchapter.
9903.05.94: Articles the product of Mexico, as provided for in subdivision (h) of U.S. note 52 to this subchapter.
As provided in heading 9903.05.94, the additional duties imposed by heading 9903.05.55 shall not apply to any products of Mexico entered free of duty under the United States-Mexico-Canada Agreement, including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTSUS, but regardless of whether a product is entered under a provision for which the rate of duty “S or S+” appears in the “Special” sub-column.
9903.05.98: Articles the product of Switzerland, as provided for in subdivision (j)(3) of U.S. note 52 to this subchapter.
9903.06.14: Articles the product of Taiwan, as provided for in subdivision (j)(10)(i) of U.S. note 52 to this subchapter.
9903.06.15: Articles the product of Taiwan, as provided for in subdivision (j)(10)(ii) of U.S. note 52 to this subchapter.
9903.05.96: Articles the product of the United Kingdom, as provided for in subdivision (j)(1) of U.S. note 52 to this subchapter.
Chapter 98
The additional duties imposed by headings 9903.05.20–9903.05.84 shall not apply to goods for which entry is properly claimed under a provision of chapter 98 of the tariff schedule pursuant to applicable regulations of U.S. Customs and Border Protection (“CBP”), and whenever CBP agrees that entry under such a provision is appropriate, except for goods entered under subheadings 9802.00.40, 9802.00.50 or 9802.00.60 or heading 9802.00.80. For goods entered under subheadings 9802.00.40, 9802.00.50 and 9802.00.60, the additional duties apply to the value of repairs, alterations or processing performed, as described in the applicable subheading. For goods entered under heading 9802.00.80, the additional duties apply to the value of the article assembled abroad, less the cost or value of such products of the United States, as described.
Products that are provided for in this note shall continue to be subject to antidumping, countervailing, or other duties, taxes, fees, exactions and charges.
Foreign Trade Zone
Any product of Section 301 Forced Labor that is subject to the additional duty imposed by this action, and that is admitted into a U.S. foreign trade zone, except any product that is eligible for admission under “domestic status” as defined in 19 C.F.R. 146.43, only may be admitted as “privileged foreign status,” as defined in 19 C.F.R. 146.41, effective as of the date that the additional duty is imposed.
HTSUS Sequence
When submitting an entry summary in which a heading or subheading in Chapter 98 and/or 99 is claimed on imported merchandise, the following instructions will apply for the order of reporting the HTSUS on an entry summary line.
1. Chapter 98 (if applicable)
2. Chapter 99 number(s) for additional duties (if applicable)
3. For trade remedies,
- First report the Chapter 99 HTSUS for Section 301,
- Followed by the Chapter 99 HTSUS for Section 122,
- Followed by the Chapter 99 HTSUS for Section 232
- Followed by the Chapter 99 HTSUS for Section 201 duties (if applicable),
- Followed by the Chapter 99 HTSUS for Section 201 quota (if applicable).
4. Chapter 99 number(s) for REPLACEMENT duty or other use (i.e., Miscellaneous Tariff Bill or other provisions)
5. Chapter 99 number for other quota (not covered by #3) (if applicable)
6. Chapter 1 to 97 Commodity Tariff
The entered value of the imported product reported on the entry summary line should be reported on the Chapter 1-97 HTSUS classification, unless Chapter 98 reporting provisions require the entered value to be reported differently.
For questions regarding Section 301 entry filing, contact the Trade Remedy Branch at TradeRemedy@cbp.dhs.gov.
If you encounter any errors in filing an entry summary, contact your CBP client representative or the ACE Help Desk.
If you have any questions, please contact our office.
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Reduction of Section 232 Tariffs on Certain Aluminum Products
See the following message from NCBFAA regarding the reduction of Section 232 Tariffs on certain aluminum products.
White House Proclamation Proposes Reduction of Section 232 Tariffs to Incentivize Domestic Aluminum Production
President Trump on July 20 issued a proclamation based on the recommendation of the Commerce Secretary to reduce Section 232 tariff on certain aluminum imports if there are commitments from companies to pursue domestic production.
These actions, according to the proclamation, include building new facilities capable of producing primary aluminum, expanding facilities to become capable of producing primary aluminum, or refurbishing outdated facilities that produce primary aluminum to expand their production or increase the efficiency of production. For the Commerce Secretary to approve these plans, construction must be initiated by Jan. 20, 2029.
Specifically, the program will request onshoring plans from companies that, if approved, will be eligible to import a commensurate level of primary aluminum into the U.S. at a reduced tariff rate equal to half of the otherwise applicable Section 232 rate. Currently the Section 232 tariff is 25% for aluminum imports.
The proclamation further stated that Commerce Secretary will monitor and enforce all approved onshoring plans and, if a company fails to meet its agreed-upon commitments, may stop and rescind the tariff benefits, including retroactively.
If you have any questions, please contact our office.
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New Tariffs on Products from Brazil
Please see the following message from CBP regarding the new tariffs on products from Brazil.
CBP Guidance for Section 301 Duties on Certain Products from Brazil
Customs and Border Protection (CBP) on July 21 provided guidance to the trade regarding the Office of the U.S. Trade Representative’s action imposing 25% tariffs on all imports of Brazil, with certain exemptions, under Section 301 of the of the Trade Act of 1974, effective July 22, 2026. See 91 FR 45516.
Guidance
CBP said this guidance provides instructions for importers, customs brokers, and filers on submitting entries to U.S. Customs and Border Protection on articles that are the product of Brazil.
Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on July 22.
9903.05.01: Except for products described in headings 9903.05.02–9903.05.09, articles the product of Brazil, as provided for in subdivision (a) of U.S. note 50 to subchapter III.
25% additional ad valorem rate of duty
Exemptions
The following HTSUS headings apply to products that are exempted from the additional 25% ad valorem duty under heading 9903.05.01:
9903.05.02: Articles the product of Brazil that (1) were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States before 12:01 a.m. ET on July 22; and (2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. ET on July 29.
9903.05.03: Articles the product of Brazil, as provided for in subdivision (a)(ii) of U.S. note 50 to subchapter III. See attachment for the list of HTSUS classifications specified in this subdivision.
9903.05.04: Articles the product of Brazil, as provided for in subdivision (a)(iii) of U.S. note 50 to subchapter III. The products described in subdivision (a)(iii) are:
- Etrogs (classifiable in subheading 0805.90.01);
- Tropical fruit, nesoi, frozen, whether or not previously steamed or boiled (classifiable in subheading 0811.90.80);
- Date palm branches, Myrtus branches or other vegetable material, for religious purposes only (classifiable in subheading 1404.90.90);
- Bread, pastry, cakes, biscuits and similar baked products nesoi, and puddings, whether or not containing chocolate, fruit, nuts or confectionery, for religious purposes only (classifiable in subheading 1905.90.10);
- Bakers’ wares, communion wafers, sealing wafers, rice paper and similar products, nesoi, for religious purposes only (classifiable in subheading 1905.90.90);
- Acai (classifiable in subheading 2008.99.21);
- Citrus juice of any single citrus fruit (other than orange, grapefruit or lime), of a Brix value not exceeding 20, concentrated, unfermented, except for lemon juice (classifiable in subheading 2009.31.60);
- Coconut water or juice of acai (classifiable in subheading 2009.89.70);
- Coconut water juice blends, not from concentrate, packaged for retail sale (classifiable in subheading 2009.90.40);
- Acai preparations for the manufacture of beverages (classifiable in subheading 2106.90.99); and
- Essential oils other than those of citrus fruit, nesoi, for religious purposes only (classifiable in subheading 3301.29.51)
Filers must ensure that all supporting documentation that substantiates the intended use of the product, where applicable, is kept on file for recordkeeping purposes.
9903.05.05: Articles of civil aircraft (all aircraft other than military aircraft); their engines, parts and components; their other parts, components and subassemblies; and ground flight simulators and their parts and components of Brazil, as provided for in subdivision (a)(iv) of U.S. note 50 to this subchapter.
“Filers must ensure that all supporting documentation that substantiates the intended use of the product, where applicable, is kept on file for recordkeeping purposes,” CBP said.
9903.05.06: Articles the product of Brazil that are articles for use in pharmaceutical applications, as provided for in subdivision (a)(v) of U.S. note 50 to this subchapter.
9903.05.07: Articles of aluminum, of steel, or of copper or derivative aluminum or steel articles; passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks; parts of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks; medium- and heavy duty vehicles; parts of medium- and heavy-duty vehicles; wood products; and semiconductor articles, of Brazil, as provided in subdivision (a)(vi) of U.S. note 50 to subchapter III.
9903.05.08: Articles the product of Brazil that are donations by persons subject to the jurisdiction of the United States, such as food, clothing and medicine, intended to be used to relieve human suffering.
9903.05.09: Articles the product of Brazil that are informational materials, including but not limited to publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks and news wire feeds.
“Products that are provided for in heading 9903.05.01 shall continue to be subject to antidumping, countervailing, or other duties, taxes, fees, exactions and charges that apply to such products, as well as to the additional ad valorem rate of duty imposed by this heading,” CBP said.
Chapter 98
The additional duty imposed by heading 9903.05.01 shall not apply to goods for which entry is properly claimed under a provision of chapter 98 of the tariff schedule pursuant to applicable regulations of CBP, and whenever CBP agrees that entry under such a provision is appropriate, except for goods entered under heading 9802.00.80 or subheadings 9802.00.40, 9802.00.50 or 9802.00.60. For goods entered under subheadings 9802.00.40, 9802.00.50 and 9802.00.60, the additional duty applies to the value of repairs, alterations or processing performed, as described in the applicable subheading. For goods entered under heading 9802.00.80, the additional duty applies to the value of the article assembled abroad, less the cost or value of such products of the United States, as described.
Foreign Trade Zone
Any product of Brazil that is subject to the additional duty imposed by this action, and that is admitted into a U.S. foreign trade zone, except any product that is eligible for admission under “domestic status” as defined in 19 C.F.R. 146.43, only may be admitted as “privileged foreign status,” as defined in 19 C.F.R. 146.41, effective as of the date that the additional duty is imposed.
HTSUS Sequence
When submitting an entry summary in which a heading or subheading in Chapter 98 and/or 99 is claimed on imported merchandise, the following instructions will apply for the order of reporting the HTSUS on an entry summary line.
- Chapter 98 (if applicable)
- Chapter 99 number(s) for additional duties (if applicable)
- For trade remedies,• First report the Chapter 99 HTSUS for Section 301,
• Followed by the Chapter 99 HTSUS for Section 122,
• Followed by the Chapter 99 HTSUS for Section 232
• Followed by the Chapter 99 HTSUS for Section 201 duties (if applicable),
• Followed by the Chapter 99 HTSUS for Section 201 quota (if applicable).
- Chapter 99 number(s) for REPLACEMENT duty or other use (i.e., Miscellaneous Tariff Bill or other provisions)
- Chapter 99 number for other quota (not covered by #3) (if applicable)
- Chapter 1 to 97 Commodity Tariff
The entered value of the imported product reported on the entry summary line should be reported on the Chapter 1-97 HTSUS classification, unless Chapter 98 reporting provisions require the entered value to be reported differently.
See this document for the Chapter 1 to 97 HTSUS classifications which correspond to the Chapter 99 headings.
For questions regarding Section 301 entry filing, contact the CBP Trade Remedy Branch at TradeRemedy@cbp.dhs.gov. If you encounter any errors in filing an entry summary, contact your CBP Client Representative or the ACE Help Desk.
If you have any questions, please contact our office.
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New Tariffs On Canadian Products
Please see the following messages from Sidley Austin LLP and NCBFAA regarding the additional tariff impose on Canadian products.
(Update courtesy of Sidley Austin LLP)
Any good feelings generated from co-hosting the World Cup appear to have worn off already… Earlier today, President Trump issued 3 proclamations imposing an additional tariff of 50% on certain products of Canada under Section 338 of the Tariff Act of 1930 (19 U.S.C. 1338). There is no USMCA exemption from these tariffs, and they are scheduled to take effect August 19, 2026.
According to the White House fact sheet accompanying the proclamations, the U.S. action is “in response to Canada’s discriminatory treatment of American products” – specifically, cars, alcohol and dairy. As a refresher, Canada was one of two countries to retaliate against the additional tariffs President Trump imposed early in his second term. Canada’s retaliation took the form of increased duties on U.S. products and other actions (e.g., not stocking U.S. alcohol in government-run liquor stores).
The United States has determined that Canada’s retaliation discriminates against U.S. exports (which was the whole point). For example, the fact sheet notes that:
From April 2025 through March 2026, Canadian imports of U.S. motor vehicles decreased by approximately 22%, or $5.6 billion, compared to the same period in 2024-2025. Exports of motor vehicles from other countries to Canada have increased to meet the demand previously filled by U.S. exports.
From March 2025 through February 2026, Canadian imports of U.S. alcoholic beverages decreased by about 81%, or $582 million, compared to the same period in 2024-2025.
Based on this, the president is imposing an additional 50% tariff on certain products of Canada under Section 338. This provision allows the president to impose a tariff of up to 50% on products of any foreign country determined to “place[] any burden or disadvantage upon the commerce of the United States[.]” The provision has never been used before.
All companies that import articles from Canada should review the proclamations. The specific products subject to the additional 50% tariff are identified in an annex to each proclamation. See Annex in the links above. Given that the tariffs do not go into effect until August 19th, it is possible that a negotiated resolution can be reached before then. That said, given the state of U.S.-Canada trade relations, I am not sure I would bet on it.
(Update courtesy of NCBFAA)
President Trump Sets 50% Tariff Under Section 338 on Certain Canadian Products via Three Separate Proclamations
President Trump today, July 20, said in a proclamation that his administration under Section 338 of the 1930 Trade Act will impose an additional ad valorem duty of 50% on certain products of Canada, effective 12:01 a.m. ET on Aug. 19, in response to Canada’s tariff rate quotas for dairy products.
In another proclamation utilizing Section 338 announced today, July 20, the president called for additional ad valorem duty of 50% on certain Canadian products, effective as of 12:01 a.m. ET on Aug. 19, in response to Canada’s prohibition on imports and sales of U.S. alcoholic beverages.
In a third proclamation from the White House today, July 20, will apply Section 338 tariffs of 50% on certain Canadian products, effective 12:01 a.m. ET on Aug. 19, in response to Canada’s 25% on imports of U.S. motor vehicles that do not qualify for preferential, duty-free treatment under the United States-Mexico-Canada Agreement (USMCA).
See impacted Canadian product imports and HTS numbers: Proclamation, “IMPOSING ADDITIONAL DUTIES TO OFFSET CANADIAN DISCRIMINATION AGAINST THE COMMERCE OF THE UNITED STATES WITH RESPECT TO DAIRY,” Annex 1 and Annex II; Proclamation, “IMPOSING ADDITIONAL DUTIES TO OFFSET CANADIAN DISCRIMINATION AGAINST THE COMMERCE OF THE UNITED STATES WITH RESPECT TO ALCOHOLIC BEVERAGES,” Annex I and Annex II; and Proclamation, “IMPOSING ADDITIONAL DUTIES TO OFFSET CANADIAN DISCRIMINATION AGAINST THE COMMERCE OF THE UNITED STATES WITH RESPECT TO MOTOR VEHICLES,” Annex 1 and Annex II.
As reported by International Trade Today (ITT), this is the first time tariffs have been imposed under Section 338. “There is no time limit for these tariffs in the law, and no language in the law about when they should be removed,” ITT said.
If you have any questions, please contact our office.
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CPSC eFiling Requirements
Please see the following guides for CPSC eFiling requirements:
If you have any questions, please contact our office.
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Free CBP Webinar - CAPE Updates and IEEPA Refunds
Please see the following message from CBP regarding a free webinar on CAPE updates and questions about IEEPA refunds. The webinar will take place on Wednesday, July 15, 2026 at 2:00 PM ET.
U.S. Customs and Border Protection’s (CBP) Office of Trade is hosting a webinar on Wednesday, July 15, 2026, at 2:00 p.m. ET titled CAPE Enhancements and Questions About Your IEEPA Refunds. This webinar will be present an overview of recent enhancements to CAPE for Type 09 reconciliation entries. CBP will also present additional updates on CAPE functionality and will provide answers to your Frequently Asked Questions. CBP will also take your questions from the web audience. Continuing Education credit will be offered, and recordings will be made available for future viewing.
To register for this free webinar, click here. All registrants will receive the access link for the webinar the day before the event, but entry into the webinar is on a first-come, first-served basis as seats are limited. After the live event, this and other previously recorded webinars will be available for replay at Trade Outreach Webinars | U.S. Customs and Border Protection (cbp.gov).
This webinar is a part of CBP’s Continuing Education Program. The number of credits and the credit code will be provided at the end of the webinar.
If you have any questions about this webinar, please contact OTRwebinars@cbp.dhs.gov.
If you would like to be added to our distribution list or opt out of receiving these notifications, please email TradeRelations@cbp.dhs.gov.
If you have any questions, please contact our office.
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CAPE Phase 2 Filing Requirements
CAPE Phase 2 Expansion Entries Flagged for Reconciliation
Effective today, June 29, 2026, U.S. Customs and Border Protection (CBP) has officially launched CAPE Phase 2. This update expands the CAPE tool to accept entries flagged for reconciliation (opening up potential IEEPA duty refunds) but requires strict adherence to a specific filing sequence.
Please note that all entry types previously eligible under CAPE Phase 1 remain fully eligible and can still be processed normally under this updated system.
The Core Rule of CAPE Phase 2
The new capabilities apply ONLY to entries where the Reconciliation entry has not yet been filed.
- Eligible Entries: Entry Types 01 (Formal), 02 (Quota), and 06 (FTZ) that are flagged for reconciliation.
- The Condition: The entries must be unliquidated or within 80 days of their liquidation date, and the final Reconciliation Summary (Entry Type 09) must not be on file yet.
- Future Phases: If you have already filed the Type 09 reconciliation for an entry, it is excluded from this phase and must wait for a future CAPE rollout.
Approaching Deadlines and The Correct Sequence
Because CAPE must remove the IEEPA duties before the reconciliation is finalized, timing is everything. If you have a reconciliation deadline fast approaching, CBP guidance dictates the following priority:
- Prioritize the Reconciliation: Do not let the deadline pass while waiting.
- Handling Increased Duties: If the reconciliation would result in increased IEEPA duties, file the reconciliation and deposit the standard duties, taxes, and fees owed, but exclude the increased IEEPA duties from your deposit.
How We Can Help
The sequencing here is highly precise. If you have eligible entries flagged for reconciliation and want to leverage the new CAPE Phase 2 capabilities to claim your refunds, please reach out to our office so we can coordinate the timing of your filings.
For full technical details, please see the official message from CBP below.
CSMS # 69066837 - DEPLOYED – Consolidated Administration and Processing of Entries (CAPE) for IEEPA Refunds - Entries Flagged for Reconciliation
U.S. Customs and Border Protection (CBP) has completed the successful deployment for enhancements to the Consolidated Administration and Processing of Entries (CAPE) application in the Automated Commercial Environment Secure Data Portal (ACE Portal). Importers and authorized customs brokers can now include in their CAPE declarations, submitted in the ACE Portal, entries flagged for reconciliation (entry types 01, 02, 06) for which the reconciliation entry (entry type 09) has not been filed. Consistent with CAPE Phase 1, the entries flagged for reconciliation will be limited to unliquidated entries and entries that have been liquidated within 80 days of the CAPE declaration filing date.
As a reminder, all filing and processing requirements from the first phase of CAPE remain in effect. For detailed information, please see CSMS # 68340863 - UPDATE - Consolidated Administration and Processing of Entries (CAPE) for IEEPA Refunds, April 20, 2026, Deployment.
If you encounter any errors in filing a CAPE declaration, contact your CBP client representative or the ACE Help Desk.
Questions regarding this message should be directed to CBP at IEEPAREFUNDS@cbp.dhs.gov.
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CAPE Phase 2
Please see the following message from CBP regarding CAPE 2. Entries flagged for reconciliation will be able to use CAPE to request refund of IEEPA. Entries that have already been reconciled (meaning a reconciliation entry has been filed) will not be able to be included in CAPE 2.
CSMS # 69035485 - UPDATE – Consolidated Administration and Processing of Entries (CAPE) for IEEPA Refunds - Entries Flagged for Reconciliation
On April 20, 2026, U.S. Customs and Border Protection (CBP) launched the first phase of the Consolidated Administration and Processing of Entries (CAPE) tool in the Automated Commercial Environment to process refunds of International Emergency Economic Powers Act (IEEPA) duties. The purpose of this message is to provide updated guidance on the availability as of June 29, 2026, of new functionality for CAPE that provides for the acceptance of entries flagged for reconciliation with no reconciliation entry on file.
GUIDANCE
Entries Flagged for Reconciliation with No Reconciliation on File
All filing and processing requirements from the first phase of CAPE remain in effect. For detailed information, please see CSMS # 68340863 - UPDATE - Consolidated Administration and Processing of Entries (CAPE) for IEEPA Refunds, April 20, 2026, Deployment. Effective June 29, 2026, CAPE will accept entries flagged for reconciliation (entry types 01, 02, 06) for which the reconciliation entry (entry type 09) has not been filed. Consistent with CAPE Phase 1, the entries flagged for reconciliation will be limited to unliquidated entries and entries within 80 days of liquidation.
Once the entries flagged for reconciliation are accepted on a CAPE declaration, the trade may file the reconciliation entry. The CAPE process removes the IEEPA duties from the flagged entries prior to the filing of the reconciliation entry, separating the IEEPA duty refund from the calculations on the reconciliation entry. Once the reconciliation entry is filed, CBP will assume that all the CAPE declarations associated with the reconciled entries were filed and accepted. Once a reconciliation entry is filed, the underlying entries will not be eligible to be filed on a CAPE Declaration in this phase, pursuant to the June 29, 2026, deployment.
Entries Flagged for Reconciliation with Reconciliation on File
Entries flagged for reconciliation with the reconciliation entry already on file are not included in the June 29, 2026CAPE deployment. The CAPE process does not prevent an entry from being reconciled. If the reconciliation filing deadline is close to expiring (e.g., less than 30 days), the trade will need to prioritize the filing of the reconciliation. Entries flagged for reconciliation with a reconciliation entry already on file will be included in a future phase of CAPE development.
As future CAPE enhancements are deployed, CBP will issue Cargo Systems Messaging Service (CSMS) messages providing filing requirements and guidance.
If you encounter any errors in filing an entry summary, contact your CBP client representative or the ACE Help Desk.
Questions regarding this message should be directed to CBP at IEEPAREFUNDS@cbp.dhs.gov.
If you have any questions, please contact our office.
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