9903.03.13 Explained: Canada Dairy Tariff, 50% Rate, and Scope

HTS code 9903.03.13 is a Chapter 99 overlay that imposes a 50 percent additional ad valorem duty on products of Canada enumerated in U.S. note 51(b)(2), covering a specific dairy action under the Section 338 Canada program. Any importer bringing in Canadian dairy and related agricultural products on the list described in U.S. note 51(b)(2) must report this code on entries made on or after August 19, 2026. As of August 4, 2026, that effective date is still in the future, so entries made before August 19, 2026 are not subject to this additional duty.

Legal Authority and Program Background

This code was created under the Section 338 Canada actions. The governing legal authority is Proclamation 11047, published at 91 FR 46653 (Federal Register document 2026-14992). The product scope and country applicability are defined in U.S. note 51 to Chapter 99 of the Harmonized Tariff Schedule of the United States, specifically U.S. note 51(b)(2), which this code's official heading references directly.

9903.03.13 is one of several Section 338 Canada codes running from 9903.03.12 through 9903.03.16. These codes are entirely separate from any earlier Chapter 99 programs and should not be confused with them. Always verify the specific note and subparagraph when classifying an entry.

You can review the official Federal Register notice at federalregister.gov (FR doc 2026-14992, 91 FR 46653).

Rate and Effective Window

The additional duty rate under 9903.03.13 is 50 percent ad valorem, applying to the dutiable value of the imported goods. Key timing facts:

• Effective date: August 19, 2026. Only entries made on or after that date are subject to this duty.
• End date: No announced end date as of August 4, 2026. The 50 percent rate continues until further notice or a subsequent proclamation.
• Entries before August 19, 2026 are not covered, regardless of when goods were ordered or shipped.

Because no sunset date has been announced, importers should not plan around an automatic expiration. Confirm the current status in the 2026 tariff code overview or check the current HTSUS for any modifications.

Country Scope

This code applies exclusively to products of Canada. Country of origin, not country of export or country of shipment, determines whether goods fall within scope. Goods originating in any country other than Canada are not subject to 9903.03.13, even if they transit through Canada. If your supply chain involves Canadian processing of third-country inputs, confirm the country-of-origin determination with your broker before the August 19, 2026 effective date.

Product Scope: What Is on the U.S. Note 51(b)(2) List

The goods covered are those enumerated in U.S. note 51(b)(2), which the facts block identifies as a dairy action. The product list under this note is large (52 HTS lines in total). The first 40 lines confirmed in the facts block span primarily Chapters 04 and 17 of the regular tariff schedule, including:

Chapter 04: Dairy, Eggs, and Related Products

• 0402.10.05, 0402.10.10, 0402.10.50: Milk and cream in powder, granules, or other solid forms, not containing added sugar or sweetening matter
• 0402.21.02 through 0402.21.90: Milk and cream in solid form, containing added sugar or sweetening matter
• 0402.91.03, 0402.91.06: Milk and cream, not in solid form, not containing added sugar (selected subheadings)
• 0402.99.68: Other milk and cream preparations
• 0404.10.05 through 0404.10.90: Whey and modified whey products
• 0404.90.10 through 0404.90.70: Other dairy products of heading 0404

Chapter 05 and Other Agricultural Chapters

• 0506.90.00: Bones and horn-cores not elsewhere specified (ossein and bones treated with acid)
• 1210.20.00: Hop cones, ground, powdered, or in pellets; lupulin
• 1301.90.91: Lac and natural gums, resins, and other vegetable saps and extracts

Chapter 17: Sugars and Sugar Confectionery

• 1702.11.00, 1702.19.00: Lactose and lactose syrup
• 1702.30.28, 1702.40.28, 1702.60.28: Glucose and fructose syrups (selected subheadings)
• 1702.90.35, 1702.90.58, 1702.90.68: Other sugars and sugar syrups
• 1703.10.30: Cane molasses

This list represents only the first 40 of 52 total lines enumerated in U.S. note 51(b)(2). Confirm the complete list in the current HTSUS or with your broker to ensure no covered lines are missed.

How 9903.03.13 Stacks with Other Duties

Chapter 99 overlay codes like 9903.03.13 are additional duties. They do not replace the regular column 1 general rate that applies to the underlying Chapter 04 or Chapter 17 classification. An entry line for a covered Canadian dairy product will carry both:

• The regular HTS rate from the Chapter 1-97 classification line (which may itself include specific rates, tariff-rate quota rates, or other duties depending on the product)
• The 50 percent additional duty from 9903.03.13

Other Chapter 99 codes from separate programs (for example, Section 232 steel and aluminum codes, or any other active overlays) may also stack on the same entry line if their own scope conditions are met. The facts block does not specify interaction rules beyond the 50 percent additional rate, so confirm full stacking with your broker using the current HTSUS and any applicable CBP guidance.

For entries involving classification questions or underpayment risk, see our overview of 19 USC 1592(d) duty demand authority, which explains how CBP can collect unpaid duties separate from a penalty action.

How to Report This Code on an Entry

Chapter 99 codes ride alongside the regular Chapter 1-97 classification. On a CBP entry, the importer of record or broker will report:

1. The regular HTS line (for example, 0402.10.05 for a specific powdered milk product), with the standard column 1 duty rate
2. 9903.03.13 as a secondary classification line on the same entry, capturing the 50 percent additional duty
3. Canada as the country of origin, which triggers applicability

Entries dated before August 19, 2026 must not carry this code; entries on or after August 19, 2026 for covered Canadian goods must include it. An omission on a post-effective-date entry will result in underpayment of duties, which CBP can pursue through formal demand or liquidation adjustment. Good recordkeeping covering each entry is essential; for guidance on document retention obligations, see our article on customs recordkeeping requirements and the five-year rule.

What Importers Should Do

• Audit your Canadian dairy supply chain now. Cross-reference every HTS line you import from Canada against the full U.S. note 51(b)(2) list in the current HTSUS to identify which of your products are in scope before August 19, 2026.
• Update your entry instructions and ACE filing templates. Instruct your broker to add 9903.03.13 as a secondary line on all covered entries dated on or after August 19, 2026. Do not apply it to earlier entries.
• Recalculate landed costs. A 50 percent additional ad valorem duty materially changes the economics of Canadian dairy sourcing. Update pricing models, purchase orders, and supplier agreements accordingly before the effective date.
• Monitor the Federal Register and HTSUS for changes. No end date has been announced as of August 4, 2026. Watch for any proclamation modifying or terminating Proclamation 11047 or U.S. note 51, and confirm the current rate window with your broker before each shipment.

This article is general information, not legal advice.