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Section 338In effectPublished September 14, 2026

Canadian alcohol 50% duty scope changes take effect September 15

A proclamation revises the list of Canadian products subject to the 50% additional duties previously imposed under Section 338. Some products are added to the duty list and some are removed, effective September 15, 2026.

Authority
Section 338, Tariff Act of 1930
Status
In effect
Effective
September 15, 2026
Rate
50% additional ad valorem duty

What this affects

Countries
Canada
Product categories
Alcoholic beverages

The update

This proclamation modifies the scope of Canadian products covered by the additional duties imposed under Proclamation 11046. It states that certain products listed in Annex I, Part A remain subject to the additional 50% ad valorem duty, while certain products listed in Annex I, Part B are no longer subject to that duty.

The action is taken under Section 338 of the Tariff Act of 1930, which the proclamation cites as authority to offset discrimination against the commerce of the United States. The proclamation says the change better serves the public interest while still offsetting the burden or disadvantage on U.S. commerce. It also states that these duties apply in addition to duties imposed under Section 232 of the Trade Expansion Act of 1962.

The changes apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on September 15, 2026. The Harmonized Tariff Schedule of the United States is modified through Annex II, and CBP is authorized to issue implementing rules, guidance, instructions, and determinations.

Impact

Importers of Canadian goods need to confirm whether their products were moved into or out of the 50% additional duty scope. The change can affect landed cost immediately and may also stack on top of other applicable duties, including Section 232 measures named in the proclamation.

What to watch

The proclamation changes scope through annexes not reproduced in the text provided here, so product coverage cannot be determined from this source excerpt alone. CBP may also publish technical or ministerial HTSUS corrections in a later Federal Register notice.

How to prepare

  1. 1
    Match SKUs to revised annex lists

    Confirm whether imported Canadian items were added to or removed from the 50% duty scope.

  2. 2
    Model landed cost changes

    Recalculate duty exposure for entries on or after the effective date.

  3. 3
    Check for overlapping duties

    Review whether the same goods also face other duties, including Section 232 measures.

  4. 4
    Coordinate filing with broker

    Make sure entry instructions reflect the revised HTSUS treatment and timing.

Sources

We summarize published reporting and official notices. Always confirm rates and dates against the Federal Register or your customs broker before acting on them.