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6204.43.40 and Section 338 Canada: Rates, Scope, and Stacking

Published: August 13, 2026 · 8 min read

Key Points

HTS 6204.43.40 covers "Other" women's or girls' suits, ensembles, and similar garments of artificial fibers, and carries a base MFN (Column 1 General) rate of 16%.
For entries of Canadian-origin goods on or after August 19, 2026, the Section 338 overlay applies on top of the base 16% MFN rate, meaning a Chapter 99 code from the 9903.03.12-9903.03.16 range must also appear on the entry.
FTA partners listed in the Special rate column, including AU, BH, CL, CO, IL, JO, KR, MA, OM, P, PA, PE, S, and SG, pay Free on the underlying Chapter 62 duty, but Section 338 applies specifically to Canadian-origin goods.
The Column 2 rate for this subheading is 90%, applicable to goods from countries without normal trade relations status.
As of August 11, 2026, these are the operative facts; confirm the current HTSUS or check with your broker for any updates after that date.

HTS 6204.43.40 is a Chapter 62 subheading for "Other" garments classifiable under heading 6204, specifically those of artificial fibers. The base MFN rate is 16%. For Canadian-origin goods entered on or after August 19, 2026, the Section 338 overlay duty also applies and must be reported using a Chapter 99 article code in the 9903.03.12 through 9903.03.16 range alongside the Chapter 62 line. Importers sourcing these garments from Canada need to account for both duties when modeling landed cost.

What HTS 6204.43.40 covers

Heading 6204 of the Harmonized Tariff Schedule of the United States (HTSUS) covers women's or girls' suits, ensembles, suit-type jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches, and shorts. Subheading 6204.43 narrows this to dresses of artificial fibers, and the final six-digit break at 6204.43.40 captures the residual "Other" category within that group, meaning garments that do not fall into a more specific subdivision.

Artificial fibers in trade parlance generally include fabrics woven or knitted from man-made staple or filament yarns such as rayon, acetate, or lyocell. If you are uncertain whether your specific fabric composition lands in 6204.43.40 versus an adjacent subheading, confirm with the current HTSUS text at hts.usitc.gov or with a licensed customs broker. You can also review our 2026 tariff code overview for context on how codes in this chapter are structured.

Base duty rates: MFN, Special, and Column 2

Column 1 General (MFN) rate

The Column 1 General rate for 6204.43.40 is 16% ad valorem. This is the rate that applies to goods originating in countries that receive Most Favored Nation (normal trade relations) treatment and do not qualify for a preferential FTA rate. It is assessed on the customs value of the imported merchandise, typically the transaction value. For a detailed walkthrough of how transaction value is calculated, see our article on Customs Transaction Value: The Default Valuation Method Explained.

Special (FTA/preference) rates

The Special rate column lists duty-free treatment for goods originating in the following countries or trade agreement groups: AU, BH, CL, CO, IL, JO, KR, MA, OM, P, PA, PE, S, and SG. If your garments originate in one of these countries and you can support the applicable preferential origin claim with valid documentation, the underlying Chapter 62 duty drops to zero. Verify the specific qualifying criteria for each FTA before claiming the preference.

Column 2 rate

The Column 2 rate is 90%. This rate applies to goods from countries that do not have normal trade relations status with the United States. It is not a common scenario for most commercial importers, but it is worth noting for completeness.

Section 338 Canada overlay: what it is and who is affected

Section 338 is a U.S. trade action targeting Canadian-origin goods. The Section 338 overlay is a separate, additional duty that rides on top of the applicable Chapter 1-97 rate. It is reported through Chapter 99 article codes, specifically the 9903.03.12 through 9903.03.16 range. These codes are distinct from the now-defunct Section 122 block (9903.03.01 through 9903.03.11), which is no longer operative and should not be used on new entries.

The Section 338 overlay applies to entries of Canadian-origin goods entered for consumption on or after August 19, 2026. If your supplier is in Canada and your goods originate there under applicable origin rules, you must report both 6204.43.40 and the correct Section 338 Chapter 99 article code on the same entry line or as a paired line, consistent with CBP's reporting instructions. Check CBP.gov for any CSMS messages or binding guidance on how to format that entry.

For a parallel example of how Section 338 stacking works on a Chapter 62 garment, see our article on 6104.43.20 and Section 338 Canada: Rates, Scope, and Stacking.

How the rates stack on a single entry

When a Canadian-origin garment classifiable under 6204.43.40 is entered on or after August 19, 2026, the duty calculation involves two layers:

Layer 1, Chapter 62: The 16% MFN rate on the customs value of the goods (Canada does not qualify for the Special FTA-free rate listed in the subheading).
Layer 2, Chapter 99: The Section 338 overlay rate corresponding to the applicable 9903.03.12-9903.03.16 article code, assessed on top of Layer 1.

The facts block does not specify the exact ad valorem rate associated with each 9903.03.12-9903.03.16 article code. Confirm the precise Section 338 overlay rate for your specific entry in the current HTSUS Chapter 99 or with your customs broker before filing. Use our duty calculator to model the combined landed cost once you have the Section 338 rate confirmed.

For a similar stacking analysis on another apparel code under Section 338, see our article on 6211.43.10 and Section 338 Canada: Rates, Scope, and Stacking.

Country scope and FTA interactions

Canada

Canadian-origin goods do not qualify for the duty-free Special rates listed in the 6204.43.40 subheading. Instead, they are subject to the 16% MFN Column 1 General rate plus the Section 338 overlay for entries on or after August 19, 2026. Canada's status under Section 338 is distinct from its status under any free trade framework, and the overlay applies regardless of other trade relationships.

FTA partners

Importers sourcing from AU, BH, CL, CO, IL, JO, KR, MA, OM, P, PA, PE, S, or SG may claim the Free Special rate on the Chapter 62 line, provided they hold the required origin documentation. Section 338 does not apply to these countries. The 16% MFN rate applies to all other countries with normal trade relations that are not on the Special list and are not Canada.

Column 2 countries

Goods from Column 2 countries face the 90% rate. No Section 338 overlay applies to Column 2 countries; that program is specific to Canada.

What importers should do

Confirm origin documentation before August 19, 2026 entries clear: For Canadian-origin shipments, gather supplier certifications and production records sufficient to support origin under applicable rules. Errors in origin claims can result in underpayment of the Section 338 overlay or misfiling of the Chapter 99 code.
Report both the Chapter 62 and Chapter 99 codes on every Canadian-origin entry: The 16% MFN duty under 6204.43.40 and the Section 338 overlay under the correct 9903.03.12-9903.03.16 code must both appear. Verify the exact Chapter 99 code and its rate in the current HTSUS at hts.usitc.gov before filing.
Audit prior entries for correct classification and overlay reporting: If you have entered Canadian-origin garments under 6204.43.40 and are unsure whether your broker applied the Section 338 overlay correctly, a post-entry review is warranted. Our article on Post Entry Audit Program: Build a Monthly Self-Review That Catches Errors walks through how to structure that process.
Maintain broker oversight records: As the importer of record, reasonable care obligations require you to verify that your broker is applying the correct rates and codes. See Customs Broker Oversight as an Importer Duty: What You Must Do for a practical framework.

Key references

Harmonized Tariff Schedule of the United States (HTSUS), hts.usitc.gov - Official schedule including 6204.43.40 and Chapter 99 Section 338 article codes 9903.03.12-9903.03.16.
U.S. Customs and Border Protection (CBP), cbp.gov - Entry filing instructions, CSMS messages, and binding guidance on Section 338 reporting.
Federal Register, federalregister.gov - Notices and rules implementing Section 338 duties on Canadian-origin goods.
White House, whitehouse.gov - Proclamations and executive orders underpinning Section 338 trade actions.
6104.43.20 and Section 338 Canada: Rates, Scope, and Stacking - Parallel analysis for a related Chapter 61 garment subheading.
6211.43.10 and Section 338 Canada: Rates, Scope, and Stacking - Parallel analysis for another Chapter 62 garment subheading under Section 338.
Post Entry Audit Program: Build a Monthly Self-Review That Catches Errors - Practical guidance on auditing entries for classification and overlay errors.
Customs Broker Oversight as an Importer Duty: What You Must Do - Reasonable care obligations for importers of record.

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About the Author

Franz Brotzen, CustomsGenius CEO & Founder. Franz is a published researcher on U.S. trade policy. He has worked at think tanks in Washington DC and Tokyo, where his academic publications focussed on tariffs and legal compliance. Franz received his JD from Harvard Law School.