08/28/2026
CBP Issues Guidance on Temporary Suspension and Implementation of Additional Duties on Canadian Imports
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Trade and Customs Updates
CBP Issues Guidance on Temporary Suspension and Implementation of Additional Duties on Canadian Imports
CBP has released new guidance to the trade community regarding the recent Presidential Proclamations which impose additional duties aimed at offsetting Canadian discrimination against U.S. commerce in the sectors of alcoholic beverages, dairy, and motor vehicles.
The CBP guidance, issued late Friday evening, August 21, provides detailed instructions for importers, customs brokers, and filers on how to properly file entries for affected Canadian goods entered for consumption—or withdrawn from warehouse for consumption—on or after 12:01 a.m. ET on August 22. The applicable products are listed under HTSUS headings 9903.03.12 through 9903.03.16.
List of products affected by the tariffs can be found here.
The CSMS notes the below:
Effective with respect to goods from Canada entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on August 22, 2026:
9903.03.12: Articles the product of Canada as provided in subdivision (b)(1) of U.S. note 51
50% additional ad valorem rate of duty
9903.03.13: Articles the product of Canada as provided in subdivision (b)(2) of U.S. note 51
50% additional ad valorem rate of duty
9903.03.14: Articles the product of Canada as provided in subdivision (b)(3) of U.S. note 51
50% additional ad valorem rate of duty
9903.03.15: 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; semiconductor articles; and patented pharmaceutical articles, as provided in subdivision (c) of U.S. note 51
0% additional ad valorem rate of duty
9903.03.16: Articles of civil aircraft (all aircraft other than military aircraft and unmanned aircraft); their engines, parts and components; their other parts, components and subassemblies; and ground flight simulators and their parts and components the product of Canada, as provided for in subdivision (d) of U.S. note 51
0% additional ad valorem rate of duty
Products that are provided for in headings 9903.03.12–9903.03.16 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.
Chapter 98
The additional duty imposed by headings 9903.04.12 to 9903.04.14 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 subchapter XXIII of chapter 98 of the tariff schedule, subheadings 9802.00.40, 9802.00.50 and 9802.00.60, and heading 9802.00.80. For 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 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 subject to the duties imposed in these Proclamations 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, and will be subject upon entry for consumption to any ad valorem rate of duty related to the classification under the applicable HTSUS subheading.
Drawback
The additional duty imposed by headings 9903.04.12 to 9903.04.14 is subject to drawback.
Reference:
CSMS # 69606660 - GUIDANCE: Section 338 Additional Duties on Certain Goods of Canada
Canada Announces Retaliatory Tariffs in Response to U.S. Duties on Canadian Imports
In response to the U.S. decision to impose a 50 percent tariff on $27.6 billion worth of Canadian goods effective August 22, Minister Champagne announced on August 25, 2026, that Canada will enact equivalent tariffs on U.S. products. Starting September 8, Canada will implement counter-tariffs at rates of 15, 25, and 50 percent on selected U.S. goods, aligning each rate with the corresponding U.S. Section 338 and Section 232 tariffs.
These Canadian countermeasures will impact imports totaling $27.6 billion and will target sectors most affected by the U.S. tariffs, including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. The move underscores Canada’s commitment to matching U.S. tariffs dollar for dollar and rate for rate in defense of its economic interests.
The list of HTS affected can be found here.
Reference:
CBP Updates ACE Reporting Procedures for Entries Involving Chapter 98 and 99 HTSUS Classifications
CBP has announced an important update for importers and brokers regarding the order of reporting multiple HTSUS classifications within the ACE system, the official system of record for all entry summaries.
The update applies specifically to entry summaries where an article requires classification under Chapter 98 or 99 of the HTSUS. Effective immediately, when submitting an entry summary that includes a heading or subheading from Chapter 98 and/or 99, filers must follow revised instructions for the sequence in which HTSUS classifications are reported on a single entry summary line.
CBP has issued these new guidelines to ensure proper processing and compliance when handling imported merchandise subject to special tariff provisions. Detailed instructions for the correct order of HTSUS reporting are now in effect for all relevant ACE submissions.
HTS 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 classification on an entry summary line.
- Chapter 98 classification (if applicable)
- Chapter 99 classification(s) for additional duties (if applicable)
- For trade remedies,
- First report the Chapter 99 classification for Section 301,
- Followed by the Chapter 99 classification for Section 338,
- Followed by the Chapter 99 classification for Section 232,
- Followed by the Chapter 99 classification for Section 201 duties (if applicable),
- Followed by the Chapter 99 classification for Section 201 quota (if applicable).
- Chapter 99 classification(s) for REPLACEMENT duty or other use (i.e., Miscellaneous Tariff Bill or other provisions)
- Chapter 99 classification for other quota (not covered by #3) (if applicable)
- Chapter 1 to 97 classification
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.
Reference:
CBP Provides Update on CAPE Program Progress and Announces Delay to Phase 3 Deployment
On August 25, 2026, Brandon Lord, Executive Director of Trade at U.S. Customs and Border Protection (CBP), released a detailed update regarding the ongoing progress of the Customs Automated Processing Environment (CAPE) program. As of 3 p.m. ET on Friday, August 21, 2026, a total of 272,029 CAPE declarations had been submitted, with 191,494 successfully passing file validations. The most common reasons for failed validations include mismatches in importer of record or filer information, incorrect or non-existent entry numbers, and .CSV files not conforming to the ACE portal template.
Lord reported that the validated CAPE declarations encompassed 26.4 million entries with IEEPA duties, which passed further entry-specific checks and were accepted for the removal of those duties through CAPE. Of these, 18.76 million entries have already been liquidated or reliquidated without IEEPA duties. However, 5.9 million entries failed entry-level validations, primarily due to expired eligibility under CBP’s 90-day re-liquidation authority, missing Chapter 99 HTS codes for IEEPA duties, or duplication from previous CAPE filings.
In total, approximately $132.5 billion in both potential and certified refunds have been accepted for processing within CAPE. Of this, roughly $106.6 billion in duty refunds, including interest, have been certified by CBP and sent to the U.S. Department of Treasury for disbursement, with Treasury regularly processing these payments. CBP is continuing to review and finalize outstanding potential refunds.
Despite this progress, 22,170 refunds amounting to about $1.7 billion have not yet been transmitted to Treasury due to missing Automated Clearing House account information from importers or their authorized designees. Additionally, 2.3 million entries flagged for reconciliation have been successfully filed and are now being processed within CAPE.
CBP has announced a temporary delay in launching CAPE Phase 3, which would address finally liquidated entries filed by plaintiffs under court order for reliquidation. This pause is to allow CBP to implement new validation measures that will prevent any unauthorized duty adjustments beyond IEEPA refunds, and to ensure compliance with court mandates. The delay only affects Phase 3, while CAPE’s existing Phases 1 and 2 continue to operate as normal.
Reference:
CBP Ends "Flying Trucks" Process, Mandates Compliance with Truck Manifest Regulations
CBP has officially rescinded support for the "Flying Trucks" process, a procedure introduced in the mid-to-late 2000s to test interoperability between truck eManifest and Multi-Modal Manifest (MMM) systems. While originally intended to be phased out following the full implementation of MMM capabilities in 2009, CBP now confirms that the process violates current regulatory standards.
Under Title 19, Code of Federal Regulations (CFR) §123.92, truck carriers are required to transmit advance electronic manifest information consistent with the transportation modality used to cross the border. The "Flying Trucks" process does not comply with these requirements, as it utilizes air manifest advance cargo information for cargo presented by trucks at the border.
Effective immediately, CBP will no longer authorize the use of air manifests for cargo arriving via truck under the "Flying Trucks" process. Carriers must ensure that all electronic manifest transmissions accurately reflect the actual mode of transportation, in full compliance with 19 CFR §123.92.
CBP has granted a 90-day transition period for express carriers to update their systems and operational procedures, with the process termination scheduled for November 24, 2026. During this period, carriers are required to modify internal procedures to ensure that all future cargo arrivals include the proper truck manifest documentation as mandated by law.
All express carriers and stakeholders currently participating in the "Flying Trucks" process must align their operations with standard truck manifest requirements by the effective date. CBP warns that failure to comply may result in delays, penalties, or other enforcement actions under federal law.
Reference:
CBP Advises Use of ACH Rejected Refunds Report to Streamline Importer Refund Process
CBP is urging brokers and importers to utilize the ACH Rejected Refunds Report (REV-613) available within the ACE Reports tool. This report is designed to assist in identifying any refunds that have been rejected due to incomplete ACH enrollment.
To support users in this process, CBP has published a Trade Refund Reports reference guide that provides step-by-step instructions for running the report.
For importers affected by ACH-related refund rejections, CBP recommends the following actions:
- Authorize ACH Refunds: Access the ACE Secure Data Portal (ACE Portal) and complete the necessary steps to authorize ACH refunds, which is crucial for ensuring timely receipt of future refunds. For comprehensive guidance, refer to CBP’s ACH Enrollment Overview.
- Notify CBP: Once ACH refund enrollment is complete, importers should notify CBP by contacting [email protected].
CBP notes that importers who are not enrolled to receive refunds via ACH may continue to face delays or rejections in their refund processing. Timely ACH enrollment is strongly encouraged to streamline the refund process and avoid disruptions.
Reference:
CSMS # 69570464 - IMPORTANT: Review ACE Reports for Rejected Refunds Due to Lack of ACH Enrollment
Combating Unfair Trade Webinar
This webinar is designed to help the trade community understand new antidumping and countervailing duty (AD/CVD) orders and empower the public with the knowledge to effectively report suspected AD/CVD violations and file Enforce and Protect Act allegations with CBP.
Webinar Details:
- Topic: Combating Unfair Trade
- Date: Monday, September 21, 2026
- Time: 2:00 PM EST
Registration: Registration is complimentary and open to the public; however, advance registration is required to attend. Please click here to register.
Reference:
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