9903.03.07 (Ended): Section 122 USMCA Canada Exemption Heading

Key Points

• 9903.03.07 ended on July 24, 2026, and was no longer in force as of October 2026.
• It was an exemption heading, not a duty: it carried 0 percent additional duty from February 24, 2026 through July 23, 2026.
• It covered articles the product of Canada that were USMCA-qualifying, and it was reported in place of the 9903.03.01 surcharge heading on the exempt value.
• Its end created nothing to refund under the heading itself, and Section 122 duty already deposited stays with CBP unless a court order or a CBP notice directs refunds.

On this page

1. What 9903.03.07 was and when it ended
2. Affected products and rate window
3. How the heading appeared on an entry
4. Relationship to the 9903.03.01 surcharge
5. Refund position after the end date
6. What importers should do
7. Key references

9903.03.07 was a Chapter 99 exemption heading under the Section 122 program for USMCA-qualifying goods of Canada, and it ended on July 24, 2026. It carried no duty of its own: it carried 0 percent additional duty and existed so that qualifying Canadian goods were kept out of the Section 122 surcharge. This article is written as of October 2026, and everything below is in the past tense because the heading no longer applies.

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 9903.03.07 was and when it ended

The heading was created under the Section 122 program through Proclamation 11012 (91 FR 9339, available through the Federal Register). CBP described how to use it in CSMS 67844987. The proclamation's exclusion heading for USMCA-qualifying goods of Canada was this one.

The heading took effect on February 24, 2026. It sunset on July 24, 2026, alongside the Section 122 surcharge it sat beside. Since that date there has been no reason to report it on new entries.

Affected products and rate window

Official heading text

The heading read: "Articles the product of Canada, as provided for in subdivision (aa)(vi) of U.S. note 2 to this subchapter (USMCA-qualifying goods; Section 122 exemption)." The scope was therefore defined by two things together: the goods had to be the product of Canada, and they had to be USMCA-qualifying. The product test was set by the U.S. note the heading cited, which you can read on the official HTS site.

Rate and window

• Rate: 0 percent additional duty.
• Window: February 24, 2026 through July 23, 2026.
• Nature of the heading: an exemption or claim heading within the Section 122 program, with no duty attached to it.

Goods of Canada that did not qualify under USMCA were not within this heading. Whether other duty programs applied to a given Canadian good was outside what this heading addressed, so confirm that in the HTSUS or with your broker for any entry you are reviewing.

How the heading appeared on an entry

A Chapter 99 heading never replaces the regular classification. The entry carried the normal Chapter 1 through 97 line for the product, and the Chapter 99 heading rode alongside it.

For qualifying Canadian goods, the filer reported 9903.03.07 in place of the 9903.03.01 surcharge heading on the exempt value, together with the USMCA claim. In practice that meant:

• The regular HTS line stayed on the entry for the goods.
• 9903.03.07 was reported on the value that qualified for the exemption, with the USMCA claim made on the entry.
• 9903.03.01 was not reported on that exempt value, because the exemption heading took its place.

If an entry covered both qualifying and non-qualifying value, only the exempt value belonged under 9903.03.07. For the exact filing mechanics of any specific entry, check the heading and its U.S. note in the HTSUS and the CBP message above.

Relationship to the 9903.03.01 surcharge

9903.03.07 worked as a counterpart to 9903.03.01. The surcharge heading was where Section 122 duty was reported. The exemption heading was where qualifying Canadian goods were reported instead, at 0 percent. Both ended with the program on July 24, 2026.

Other Section 122 exemption headings existed beside it, and some have their own ended-heading explainers, such as 9903.03.02, the Section 122 in-transit exemption. A similar exemption-heading pattern appeared in the earlier IEEPA program, as covered in 9903.02.78, the IEEPA replacement rates exemption heading. For a wider view of the year's headings, see the 2026 tariff code overview.

Refund position after the end date

Because the heading carried no duty of its own, its end created nothing to refund under it. This article does not promise a refund of any kind.

The path depends on what happened on the entry:

• An entry that paid the Section 122 surcharge because this exemption was not claimed follows the ordinary post summary correction or protest path for that entry.
• Section 122 duty deposited stays with CBP unless a court order or a CBP notice directs refunds.
• The IEEPA refund process does not apply to Section 122 duty.

What importers should do

• Pull entries from February 24, 2026 through July 23, 2026 that involved Canadian goods and check whether 9903.03.07 or 9903.03.01 was reported on each line.
• For any entry that paid the surcharge on goods that were USMCA-qualifying, work with your broker on the ordinary post summary correction or protest path for that entry.
• Keep the USMCA qualification support for exempt entries with your entry records.
• Watch CBP notices for any direction on refunds, since only a court order or a CBP notice changes the position that deposited Section 122 duty stays with CBP.

Key references

• White House presidential actions: where Proclamation 11012 is published.
• Federal Register: the home of the proclamation's publication at 91 FR 9339.
• CBP Cargo Systems Messaging Service: the archive that carries CSMS 67844987.
• Harmonized Tariff Schedule: the official Chapter 99 text, including the heading and its U.S. note.