2204.10.00 and Section 338 Canada: Sparkling Wine Duty Rates

Key Points

• HTS 2204.10.00 covers sparkling wine and carries a base MFN (Column 1 general) rate of 19.8 cents per liter as of August 2026.
• For Canadian-origin sparkling wine entered on or after 2026-08-19, Section 338 applies an additional duty via a Chapter 99 overlay code; the relevant Section 338 alcohol code is 9903.03.12, which imposes a 50% ad valorem rate on Canadian alcohol.
• FTA and preferential partners listed under the Special rate column pay 0 cents per liter (Free) or, for Jordan, 8.8 cents per liter; Canada is not among the Special-rate beneficiaries for this code.
• The Column 2 rate, applicable to non-MFN countries, is $1.59 per liter, well above the MFN general rate.
• Importers must report both the Chapter 22 classification line and the applicable Chapter 99 Section 338 overlay code on each affected entry.

On this page

1. What HTS 2204.10.00 covers
2. Base duty rates: MFN, Special, and Column 2
3. Section 338 Canada overlay: scope, authority, and effective date
4. How the rates stack on a single entry
5. Countries and preferential programs in scope
6. What importers should do
7. Key references

HTS 2204.10.00 classifies sparkling wine under Chapter 22 of the Harmonized Tariff Schedule of the United States. For most countries the base duty is 19.8 cents per liter. For Canadian-origin merchandise entered on or after 2026-08-19, a separate Section 338 overlay adds a significant additional duty on top of that base rate. Every importer of Canadian sparkling wine needs to understand both layers before calculating landed cost or filing an entry.

The links in this article go to the primary documents: the proclamations, Federal Register notices, and official tariff schedule pages themselves. Read the source.

What HTS 2204.10.00 covers

Heading 2204 of the Harmonized Tariff Schedule (hts.usitc.gov) covers wine of fresh grapes. Subheading 2204.10.00 specifically covers sparkling wine, which is the effervescent category that includes products such as Champagne and other carbonated grape wines. Still wines of various types are classified elsewhere within heading 2204 and are not covered by this subheading.

For a broader view of active 2026 tariff codes and how Chapter 22 fits into the overall structure, see the 2026 tariff code overview.

Base duty rates: MFN, Special, and Column 2

As of August 8, 2026, the three rate columns for 2204.10.00 are as follows.

Column 1 General (MFN) rate

The standard most-favored-nation rate is 19.8 cents per liter. This is the rate that applies to imports from countries that have normal trade relations with the United States and are not covered by a free trade agreement or preference program listed under the Special column.

Special (FTA and preference) rates

The Special column lists two tiers:

• Free for goods originating in: Australia (AU), Bahrain (BH), Chile (CL), Colombia (CO), D, E, Israel (IL), South Korea (KR), Morocco (MA), Oman (OM), P, Panama (PA), Peru (PE), S, Singapore (SG), and A (GSP-eligible countries).
• 8.8 cents per liter for goods originating in Jordan (JO).

Canada is not listed in the Special column for 2204.10.00. Canadian sparkling wine therefore enters at the Column 1 general rate of 19.8 cents per liter for the base Chapter 22 duty, before any Section 338 overlay is applied. Confirm the current Special-rate eligibility and qualifying rules for each program in the official HTSUS or with your broker.

Column 2 rate

The Column 2 rate of $1.59 per liter applies to imports from countries that do not have normal trade relations with the United States. This rate is dramatically higher than the MFN rate and is relevant only for a narrow list of countries.

Section 338 Canada overlay: scope, authority, and effective date

Section 338 is a distinct tariff action targeting Canadian-origin goods. It operates through a set of Chapter 99 overlay codes, specifically the 9903.03.12 through 9903.03.16 range, each covering a different product category. The Section 338 overlay takes effect for entries on or after 2026-08-19. Entries with an earlier date of entry are not subject to this overlay.

The alcohol overlay: 9903.03.12

Sparkling wine is an alcoholic beverage. The Section 338 overlay code that applies to Canadian alcohol is 9903.03.12, which imposes a 50% ad valorem additional duty on qualifying Canadian-origin alcohol products. For a full explanation of 9903.03.12, its scope, and the authority behind it, see the dedicated article: 9903.03.12 Explained: 50% Section 338 Duty on Canadian Alcohol.

Importers should also review the adjacent Section 338 codes to confirm which applies to a given entry. Two other overlay codes in the range address specific exceptions:

• 9903.03.15 covers goods otherwise subject to Section 232 measures.
• 9903.03.16 covers civil aircraft and related articles.

Note: the 9903.03.01 through 9903.03.11 range relates to a separate, prior Section 122 action that is no longer in effect. Do not confuse those codes with the active Section 338 codes.

How the rates stack on a single entry

When a Chapter 99 overlay code applies, it rides alongside the Chapter 1-97 classification line on the entry. An entry for Canadian sparkling wine entered on or after 2026-08-19 therefore requires two lines:

1. 2204.10.00 at 19.8 cents per liter (Column 1 general, since Canada is not a Special-rate beneficiary for this code).
2. 9903.03.12 at 50% ad valorem, applied to the same merchandise as the Section 338 alcohol overlay.

Both duties are owed simultaneously. The 50% Section 338 rate is calculated on the dutiable value of the goods (customs value), while the 19.8 cents per liter base rate is calculated on the volume in liters. These are different bases, so each calculation must be done separately. Use the duty calculator to model the combined landed cost for your specific shipment values and volumes.

Misclassification or omission of either line on the entry creates a compliance exposure. For background on the recordkeeping obligations that accompany every entry, see Customs Recordkeeping Requirements: The Five-Year Rule Explained.

Countries and preferential programs in scope

The Section 338 overlay applies exclusively to Canadian-origin goods. Origin is determined under the applicable rules of origin; country of export alone is not sufficient if the goods did not originate in Canada. Goods originating in other countries are not subject to 9903.03.12 and owe only the applicable Chapter 22 rate for their origin.

For non-Canadian shipments, the base duty picture is:

• MFN countries: 19.8 cents per liter.
• Free-rate FTA and preference partners (A, AU, BH, CL, CO, D, E, IL, KR, MA, OM, P, PA, PE, S, SG): 0 cents per liter.
• Jordan (JO): 8.8 cents per liter.
• Column 2 countries: $1.59 per liter.

Whether a specific shipment qualifies for a preferential rate depends on meeting the applicable rules of origin and, in most cases, having valid documentation. Confirm those requirements with your broker or in the current HTSUS General Notes.

What importers should do

• Verify origin documentation before the entry date. Confirm that your Canadian supplier can provide the required certificates or records establishing Canadian origin for Section 338 purposes, and retain those records. See CBP (a)(1)(A) List: Records CBP Can Demand on Request for what CBP may ask for.
• Report both lines on every affected entry. For Canadian-origin sparkling wine entered on or after 2026-08-19, classify on line 2204.10.00 and add overlay code 9903.03.12. Omitting the Chapter 99 line is a classification error that can result in a duty shortfall, interest, and penalties.
• Model your landed cost with the stacked rates. The 50% Section 338 rate on value combined with 19.8 cents per liter on volume can materially change the economics of an import program. Use the duty calculator and review pricing or contract terms accordingly.
• Monitor CBP guidance for any updates. Check cbp.gov and CSMS messages for any processing instructions specific to Section 338 entries, and confirm the current state of the overlay in the live HTSUS before each entry, since tariff actions can change.

Key references

• Harmonized Tariff Schedule of the United States (hts.usitc.gov): Official classification and rate lookup for 2204.10.00 and Chapter 99 Section 338 overlay codes.
• U.S. Customs and Border Protection (cbp.gov): Entry processing guidance, CSMS messages, and informed compliance publications.
• Federal Register (federalregister.gov): Notices and rules implementing Section 338 and related tariff actions.
• White House (whitehouse.gov): Presidential proclamations and executive orders establishing Section 338.
• 9903.03.12 Explained: 50% Section 338 Duty on Canadian Alcohol: Full scope and authority for the Section 338 alcohol overlay code.
• 9903.03.15 Explained: Section 338 Canada Section 232 Exception: Details on the Section 232 exception within the Section 338 framework.
• 9903.03.16 Explained: Section 338 Canada Civil-Aircraft Exemption: Details on the civil-aircraft exemption within the Section 338 framework.
• Customs Recordkeeping Requirements: The Five-Year Rule Explained: Retention obligations for entry records including origin documentation.
• CBP (a)(1)(A) List: Records CBP Can Demand on Request: What CBP may request and when.