Trade Compliance Weekly · Week 43, 2026 · Oct 19 – Oct 25
NORTH AMERICA TRADE COMPLIANCE BRIEF
Section 338 Canadian Vehicle Duty Scope Revised; ACE Updated for Five Section 301 Exclusions
This issue covers October 19 to October 25, 2026. Two U.S. measures moved through implementation. A presidential proclamation modified the scope of the 50% additional ad valorem duties imposed under Proclamation 11048, as amended, on certain products of Canada, removing products listed in Annex I, Part A from the duty. Separately, CBP issued CSMS # 70261629 stating that ACE will accept entries under the conforming amendment to five Section 301 China product exclusions from 6 pm on October 23, 2026, reflecting USTR's Federal Register notices 91 FR 56538 and 91 FR 64211 and the July 1, 2026 change. Both items concern the scope and entry processing of duties already in place rather than new rates.
Section 338 Canadian Motor Vehicle Duty Scope Modified
Section summaryPresident Trump issued a proclamation modifying the scope of the 50% additional ad valorem duties imposed under Proclamation 11048, as amended, on certain products of Canada. Under the change, products listed in Annex I, Part A are no longer subject to the duty. The measure concerns the Section 338 duties on certain Canadian motor vehicle products and adjusts which products fall within their scope.
White House · Presidential ActionsOfficial10.23Trump proclamation modifies scope of 50% Section 338 duties on certain Canadian motor vehicle products
President Trump issued a proclamation modifying the scope of the 50% additional ad valorem duties imposed under Proclamation 11048, as amended, on certain products of Canada: products listed in Annex I, Part A are no longer subject to the duty, and products listed in Annex I, Part B become subject to it, effective for goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern time on October 30, 2026. The duties apply in addition to duties imposed under section 232 of the Trade Expansion Act of 1962, and the HTSUS is modified as provided in Annex II on the same effective date.
CBP Updates ACE Guidance on Five Section 301 Exclusions
Section summaryCBP issued CSMS # 70261629 on the conforming amendment to five Section 301 China product exclusions. ACE will accept entries under the conforming amendment from 6 pm on October 23, 2026. The guidance reflects USTR's Federal Register notices 91 FR 56538 and 91 FR 64211 and the July 1, 2026 change. The item concerns entry processing for the five exclusions rather than the creation of new exclusions.
CBP issues updated ACE guidance on Section 301 China conforming amendment for five exclusions
CBP states in CSMS # 70261629 that ACE will accept entries under the conforming amendment to five Section 301 China product exclusions from 6 pm on October 23, 2026, reflecting USTR's Federal Register notices 91 FR 56538 and 91 FR 64211 and the July 1, 2026 changes to ten-digit HTSUS statistical reporting categories. The amendment revises U.S. notes 20(vvv)(i)(4), (i)(5), (i)(6), (i)(20) and (iv)(4) to subchapter III of chapter 99, all reported under 9903.88.69, replacing classifications 8413.91.9065, 8413.91.9085, 8413.91.9096, 3926.90.9910 and 8479.90.9596 with 8413.91.9039, 8413.91.9046, 8413.91.9059, 8413.91.9099, 3926.90.9915, 3926.90.9920 and 8479.90.9591. Importers must not submit the corresponding Chapter 99 HTSUS number for Section 301 China duties when 9903.88.69 is submitted.