Section 338PublishedUpdated Jul 23, 2026

US imposes 50% Section 338 duty on certain Canadian products over alcohol bans

Proclamation 11046 of July 20, 2026 imposes an additional 50% ad valorem duty under Section 338 of the Tariff Act of 1930 on certain products of Canada listed in Annex II, in response to Canadian provincial bans on U.S. alcoholic beverages. The duty applies to goods entered for consumption or withdrawn from warehouse on or after 12:01 a.m. ET on August 19, 2026, and stacks on other duties except as provided in Annex I. It does not apply to articles subject to Section 232 duties or, other than unmanned aircraft, to articles covered by the WTO Agreement on Trade in Civil Aircraft. Covered goods admitted to foreign trade zones on or after the effective date must enter in privileged foreign status.

Countries: 🇨🇦 Canada

How we got here

Every official document behind this update, oldest first.

  1. SignedJul 20, 2026 · White House · Proclamations
    Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages
  2. Filed earlyJul 22, 2026 · Federal Register (public inspection) · Presidential Document
    Alcoholic Beverages; Imposing Additional Duties To Offset Canadian Discrimination Against U.S. Commerce (Proc. 11046)
  3. PublishedJul 23, 2026 · Federal Register · Proclamation
    Imposing Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Alcoholic Beverages
Stages
  1. Announced
  2. ✓ Signed
  3. ✓ Filed early
  4. ✓ Published
  5. CBP guidance
  6. In the HTS

More Section 338 updates

  • Sep 28, 2026CBP implements Section 338 import exclusion on certain Canadian alcohol, dairy and vehicle products

    CBP CSMS #70050970 provides guidance on Presidential Proclamations 11061, 11062 and 11063, which exclude certain products of Canada (alcoholic beverages, dairy, and products tied to motor vehicles) from importation effective 12:01 a.m. ET on September 29, 2026. Covered products under the annexes will be unconditionally rejected and barred from entry for consumption, FTZ admission, bonded warehouse entry and in-bond transport, and unreleased ACE entries containing them will be cancelled. Goods imported, or admitted to an FTZ or bonded warehouse, before that time may still be entered or withdrawn for consumption at the 50% ad valorem duty under Proclamations 11046, 11047 and 11048. Alcoholic beverages are excluded only where they meet the Alcohol Annex scope limitations (e.g., 'Packaged' in direct-to-consumption containers); others remain subject to the 50% duty under Proclamation 11046.

  • Sep 28, 2026CBP adds FTZ and cargo release error codes for restricted Canadian products under Section 338

    CBP has added new error codes to e214 Foreign Trade Zone admissions (code 239) and ACE Cargo Release (code 335), both reading "HTS NOT ALLOWED FOR COUNTRY OF ORIGIN", to implement Presidential Proclamations 11061, 11062 and 11063. The codes apply to designated Canadian-origin goods under HTSUS headings 0404, 1702, 1703, 2202–2208 and 8711, including alcohol in bottles, cans, boxes, kegs or similar direct-to-consumption containers. They apply to goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. ET on September 29, 2026. Non-compliant submissions will be rejected.

  • Sep 14, 2026US bans imports of certain Canadian alcoholic beverages under Section 338

    Proclamation 11061, issued under section 338 of the Tariff Act of 1930, excludes from US importation certain alcoholic beverages of Canada listed in its Annex. The ban applies to goods imported on or after 12:01 a.m. eastern time on September 29, 2026. Covered goods that were imported but not entered or withdrawn from warehouse for consumption before September 29, 2026 remain subject to the 50% additional duty under Proclamation 11046. If the ban is invalidated for any import, the 50% duty under Proclamation 11046 applies to that import instead.

  • Sep 14, 2026US bans imports of certain Canadian products under Section 338 over dairy discrimination

    Proclamation 11062 of September 8, 2026 excludes from US importation certain products of Canada listed in its Annex, products currently subject to the 50% additional duties imposed under Section 338 by Proclamation 11047 over Canada's cheese tariff-rate quota allocation. The ban applies to goods imported on or after 12:01 a.m. eastern time on September 29, 2026. Covered goods imported but not yet entered for consumption or withdrawn from warehouse before that date remain subject to the 50% duty. If the ban is invalidated for any import, the 50% duty under Proclamation 11047 applies instead; other products under Proclamation 11047 remain subject to the additional duties.

All tariff updates