Changes to Section 338 Duties on Canadian Goods
U.S. Customs and Border Protection (CBP) has announced modifications to the list of Canadian products subject to the Section 338 additional duties. These changes are effective for goods entered or withdrawn from warehouse for consumption on or after September 15, 2026.
Key Highlights:
CBP has updated the list of affected HTS classifications, adding 122 additional HTS codes to the products subject to the Section 338 duties.
Several HTS classifications have been removed from the scope of the duties and are no longer subject to the additional tariffs.
The applicable Section 338 additional duty rate remains 50% ad valorem for covered products.
The changes apply to goods entered for consumption or withdrawn from warehouse for consumption on or after September 15, 2026.”
Customers are encouraged to assess their Canadian imports and applicable HTS classifications to determine whether they are impacted by the revised Section 338 scope outlined in the source document below.
CBP CAPE Phase 3 Update
CBP will deploy Phase 3 of CAPE processing on October 6, 2026.
Phase 3 applies only to finally liquidated entries filed by importers that are plaintiffs in Court of International Trade (CIT) litigation and for which the CIT has ordered reliquidation.
Eligible plaintiffs that provided a valid Importer of Record (IOR) number to CBP by July 30, 2026, may begin filing CAPE declarations on October 6.
Importers that submitted their IOR information after July 30, 2026, will receive additional instructions from CBP.
This phase does not expand eligibility to other importers or other finally liquidated entries.
CBP has not yet announced future phases, including additional eligibility criteria or implementation timelines.
Customers involved in qualifying CIT litigation should prepare for Phase 3 implementation and ensure all required information has been submitted to CBP.
Annual MPF Minimum and Maximum Increase
CBP has announced updated Merchandise Processing Fee (MPF) amounts as part of its annual inflation adjustment. The new rates will become effective October 1, 2026.
Current MPF Rates
Minimum MPF: $33.58
Maximum MPF: $651.50
Effective October 1, 2026
Minimum MPF: $34.58
Maximum MPF: $670.86
Entries transmitted on or after October 1, 2026, may be subject to the updated MPF rates.
Customers should review upcoming entries and shipments to identify any potential increase in customs costs resulting from the updated MPF rates.
Source Documents
CSMS # 69851916 – Modifying Section 338 Additional Duties on Certain Goods of Canada
Declaration filed by CBP’s Executive Director of Trade Programs
Customs User Fees to be Adjusted for Inflation in Fiscal Year 2027
For assistance and additional questions, please reach out to Janel Group's Compliance Team or a Janel Group Representative.
Vice President of Compliance
Director of Trade Compliance
Senior Compliance Analyst