8543.70.98 and Section 338 Canada: Rates, Scope, and Stacking

Key Points

• HTS 8543.70.98 carries a base MFN (Column 1 General) duty rate of 2.6% for most countries of origin.
• Entries of Canadian-origin goods classified under 8543.70.98 on or after August 19, 2026 are subject to an additional Section 338 duty, reported via a Chapter 99 companion code (9903.03.12 through 9903.03.16).
• Goods qualifying under one of the listed free-trade agreements or preference programs enter duty-free on the base MFN rate, but confirm whether Section 338 overrides any FTA preference for Canadian-origin goods.
• Column 2 (non-MFN) countries face a 35% rate on the base classification alone, entirely separate from Section 338.
• The facts in this article are current as of August 11, 2026. Confirm active rates in the current HTSUS or with your broker before filing.

On this page

1. What HTS 8543.70.98 covers
2. Base duty rates: MFN, special, and Column 2
3. Section 338 and Canada-origin entries
4. How Section 338 stacks with the base rate
5. How these duties appear on a CBP entry
6. What importers should do
7. Key references

HTS 8543.70.98 is a residual "Other" classification within heading 8543, covering electrical machines and apparatus with individual functions not specified or included elsewhere in Chapter 85. As of August 11, 2026, the base MFN duty rate is 2.6%. For entries of Canadian-origin goods on or after August 19, 2026, an additional Section 338 duty applies on top of that base rate, reported through a companion Chapter 99 code in the 9903.03.12 through 9903.03.16 range.

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 8543.70.98 covers

Heading 8543 covers electrical machines and apparatus with individual functions. The subheading 8543.70.98 is the catch-all "Other" line at the eight-digit level within that heading. Because this is a residual basket provision, the range of products that can land here is broad. If a product does not fit a more specific eight-digit line in heading 8543, it defaults to this subheading.

Because the description is simply "Other," classification here requires ruling out every more specific subheading above it. If you are uncertain whether your product is correctly placed at 8543.70.98 rather than a more specific line, confirm the classification in the current HTSUS or with a licensed customs broker before filing.

Base duty rates: MFN, special, and Column 2

Column 1 General (MFN) rate

The Column 1 General rate for 8543.70.98 is 2.6% ad valorem. This rate applies to goods from all countries that have normal trade relations (most-favored-nation) status with the United States, unless a preferential or special rate applies.

Special (FTA and preference) rates

The following programs provide a Free (0%) rate on the base classification for qualifying goods from participating countries:

• A* (GSP), AU (Australia FTA), B (AGOA), BH (Bahrain FTA), CL (Chile FTA), CO (Colombia FTA), D (CBERA), E (CBERA enhanced), IL (Israel FTA), JO (Jordan FTA), KR (KORUS), MA (Morocco FTA), OM (Oman FTA), P (CAFTA-DR), PA (Panama FTA), PE (Peru FTA), S (CAFTA-DR), SG (Singapore FTA).

To claim any of these rates, the goods must meet the relevant rules of origin and the importer must hold supporting documentation. Verify current program status and eligibility in the HTSUS and with your broker, as program suspensions or country-specific modifications can affect eligibility.

Column 2 rate

Goods from countries without MFN status are subject to the Column 2 rate of 35%. This applies independently of the Section 338 analysis and is based solely on the country of origin's trade status with the United States.

Section 338 and Canada-origin entries

Section 338 is a separate tariff action specifically targeting goods of Canadian origin. For entries filed on or after August 19, 2026, Canadian-origin goods classified under 8543.70.98 are subject to an additional Section 338 duty. The applicable companion codes for Section 338 are in the 9903.03.12 through 9903.03.16 range in Chapter 99 of the HTSUS.

Note that 9903.03.01 through 9903.03.11 are associated with a separate, now-inactive Section 122 tariff block. Those codes are not the Section 338 codes and should not be used for Section 338 entries. Always confirm you are reporting the correct Chapter 99 companion code for Section 338.

The exact Section 338 rate and the specific 9903.03.12-through-.16 line that applies to your goods depend on product-specific determinations. Confirm the correct companion code and its rate in the current HTSUS Chapter 99 notes and with your broker before filing.

For additional examples of how Section 338 interacts with other Chapter 85 and non-Chapter 85 classifications, see our articles on 8517.62.00 and Section 338 Canada and 3926.40.00 and Section 338 Canada.

How Section 338 stacks with the base rate

Section 338 duties are additive. For a Canadian-origin entry filed on or after August 19, 2026, the total duty obligation on goods classified under 8543.70.98 is the base 2.6% MFN rate plus the applicable Section 338 rate. The two duties are calculated separately and both are assessed on the customs value of the imported goods.

If the importer otherwise qualifies for a free-trade agreement preference on the base rate, the interaction between that preference and the Section 338 overlay must be confirmed carefully. Section 338 operates as a distinct tariff action. Whether an FTA preference eliminates or reduces the Section 338 duty is a legal and regulatory question that should be confirmed in the HTSUS Chapter 99 notes and with a licensed broker or trade counsel. Do not assume that an FTA exemption on the base rate automatically eliminates the Section 338 duty.

How these duties appear on a CBP entry

On a CBP entry, the Chapter 1-97 classification line reports 8543.70.98 with the applicable base rate (2.6% for MFN goods, or 0% if a valid preference is claimed). For Canadian-origin entries subject to Section 338 on or after August 19, 2026, a second line is added showing the Chapter 99 companion code from the 9903.03.12 through 9903.03.16 range. The Section 338 duty amount is calculated and assessed on that second line.

Both lines must appear on the same entry. The Chapter 99 code does not replace the Chapter 1-97 code. Omitting either line is a filing error. For broader context on how 2026 tariff codes are structured on entries, see our 2026 tariff code overview.

Customs brokers filing entries with these stacked duties should confirm the correct HTS lines, rates, and any applicable entry instructions in current CBP guidance and CSMS messages before submission.

What importers should do

• Confirm classification. Because 8543.70.98 is a residual "Other" basket, verify that no more specific eight-digit subheading in heading 8543 applies to your product. Use the HTSUS and, where warranted, a binding ruling.
• Verify Section 338 applicability and companion code. For any Canadian-origin goods entering on or after August 19, 2026, identify the correct Chapter 99 companion code within 9903.03.12 through 9903.03.16 and confirm the associated rate. Review current HTSUS Chapter 99 notes and CBP guidance at cbp.gov.
• Audit entries for correct stacking. Ensure both the 8543.70.98 base line and the Section 338 Chapter 99 line appear on each affected entry. A monthly post-entry audit program can catch missing or incorrect duty lines before they become a compliance issue.
• Calculate your total duty exposure. Use a duty calculator or work with your broker to model the combined base-plus-Section-338 rate against your transaction value. Our duty calculator can assist with this analysis.

Key references

• Harmonized Tariff Schedule of the United States (HTSUS): Official schedule including 8543.70.98 base rates and Chapter 99 Section 338 companion codes 9903.03.12 through 9903.03.16.
• U.S. Customs and Border Protection (CBP): Entry filing guidance, CSMS messages, and informed compliance publications on Section 338 and Chapter 99 reporting.
• Federal Register: Notices and rules implementing Section 338 tariff actions on Canadian-origin goods.
• White House: Proclamations and executive orders authorizing Section 338 tariff actions.
• 8517.62.00 and Section 338 Canada: Rates, Scope, and Stacking: Parallel Chapter 85 example showing how Section 338 applies to another electrical-equipment subheading.
• Post Entry Audit Program: Build a Monthly Self-Review That Catches Errors: Practical guidance for catching stacking and classification errors after filing.