9903.03.15 Explained: Section 338 Canada Section 232 Exception

HTS 9903.03.15 is an exemption heading, not a duty-imposing one. It carries a zero percent additional duty rate and applies to articles already subject to the Section 232 actions listed in U.S. note 51(c), shielding those goods from the broader Section 338 Canada duties. As of August 2026, this heading does not take effect until August 19, 2026, so no entries before that date are covered.

What 9903.03.15 Is and Where It Comes From

9903.03.15 sits inside the Section 338 Canada action block, which spans headings 9903.03.12 through 9903.03.16. The legal authorities for this entire block are Proclamations 11046, 11047, and 11048, together with U.S. note 51(c) of Chapter 99 of the HTSUS.

The official heading text reads: "Exception: articles subject to the Section 232 actions enumerated in U.S. note 51(c) -- no additional duty." That language makes the purpose clear: this code identifies goods that are already being disciplined under specific Section 232 measures and excludes them from stacking an additional Section 338 Canada duty on top.

It is important not to confuse this heading with the older 9903.03.01 through 9903.03.11 block, which was a separate Section 122 program with a different rate and a different legal basis. Those codes are unrelated to 9903.03.15.

The Rate: Zero Percent Additional Duty

9903.03.15 imposes no additional duty. The rate is 0 percent. Claiming this heading on an entry means the importer is asserting that the goods fall within the Section 232 actions enumerated in U.S. note 51(c) and therefore no Section 338 Canada surcharge applies.

This is structurally the opposite of the duty-imposing headings in the same program. For comparison, headings like 9903.03.12 and 9903.03.13 impose substantial additional duties on specific Canadian product categories. 9903.03.15 is the release valve for goods already captured by the Section 232 framework referenced in U.S. note 51(c).

Effective Date and Entry Timing

This heading becomes available for use on entries made on or after August 19, 2026. Entries before that date are not covered, and importers should not attempt to claim 9903.03.15 on pre-effective-date entries.

Because the as-of date for these facts is August 5, 2026, the heading is still a future provision at the time of publication. Importers and brokers should prepare their classification workflows and ACE entry templates in advance so that the correct heading is claimed from day one. See the official HTSUS online edition at hts.usitc.gov for the authoritative text of U.S. note 51(c) and the full chapter 99 structure.

Scope: Which Goods and Countries Are Covered

Country of origin

This heading is part of the Section 338 Canada action. It applies to goods of Canadian origin. If your goods do not originate in Canada, this heading is not relevant to your entry. Confirm country-of-origin determinations with your broker before filing.

Product scope

The heading covers articles that are already subject to the specific Section 232 actions enumerated in U.S. note 51(c). The facts block does not enumerate those product categories in full detail, so importers must consult the current HTSUS U.S. note 51(c) directly, or work with a licensed customs broker, to confirm whether a specific article qualifies. Do not assume a product is within scope based on general knowledge of Section 232 programs; the note's enumeration controls.

How 9903.03.15 Appears on a Customs Entry

Chapter 99 codes ride alongside, not instead of, the regular classification in chapters 1 through 97. On a CBP entry, the entry will show:

• The substantive chapter 1-97 HTS classification for the article (which determines the base MFN or preferential rate).
• The Chapter 99 code 9903.03.15 as a secondary line, asserting the Section 338 Canada Section 232 exception.

The result is that no Section 338 Canada additional duty is assessed. The base duty from the chapter 1-97 classification still applies, as do any other applicable duties not displaced by this exception. If your goods are also subject to other Chapter 99 duties not covered by U.S. note 51(c), those are not waived by claiming 9903.03.15. Confirm the full stacking picture with your broker.

For a broader look at the other Section 338 Canada headings, see our articles on 9903.03.12 (Canadian alcohol, 50% rate) and 9903.03.14 (Canadian motor vehicles).

Stacking Considerations

Claiming 9903.03.15 removes the Section 338 Canada layer. It does not remove:

• The ordinary column 1 (MFN) duty from the article's chapter 1-97 classification.
• Any other Section 232 duty that attaches to the article under the actions referenced in U.S. note 51(c), which are still in effect and still apply.
• Any other Chapter 99 surcharges that may apply to the goods under separate legal authorities.

In other words, the exception does not create a duty-free result by itself. It simply prevents a double-layering of Section 338 Canada charges on top of Section 232 charges. The total duty bill still needs to be computed across all applicable codes.

What Importers Should Do

1. Verify U.S. note 51(c) scope now, before August 19, 2026. Pull the current HTSUS Chapter 99 text and confirm that each of your Canadian-origin articles is actually enumerated in U.S. note 51(c). Do not assume eligibility based on a general Section 232 exposure.
2. Update your entry instructions and ACE templates. Your customs broker needs to add the 9903.03.15 secondary line to the correct entries starting on the effective date. Entries filed without the correct Chapter 99 code may be assessed Section 338 duties incorrectly and require post-summary corrections.
3. Model your full duty stack. Use a duty calculator or work with your broker to compute total landed cost, accounting for the base chapter 1-97 rate, the Section 232 duty that remains in effect, and the absence of an additional Section 338 layer. The CustomsGenius duty calculator can help you model these scenarios.
4. Keep records supporting the exception claim. If CBP questions the 9903.03.15 claim, you need documentation showing Canadian origin and that the article falls within the Section 232 actions enumerated in U.S. note 51(c). Maintain those records in line with your standard recordkeeping obligations.

This article is general information, not legal advice.