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9903.05.46 Iraq Section 301 Forced Labor: 12.5% Duty Explained

Published: September 7, 2026 · 7 min read

Key Points

HTS code 9903.05.46 imposes an additional 12.5 percent ad valorem duty on all products of Iraq, effective July 24, 2026, with no announced end date.
The duty applies across all chapters 1 through 97, meaning no product category originating in Iraq is excluded at this time.
Legal authority rests on the USTR Section 301 Forced Labor final action dated July 23, 2026, codified in U.S. note 52, and announced via CSMS 69326983.
9903.05.46 is a Chapter 99 overlay code: it rides alongside the regular chapter 1-97 classification on every affected entry line.
The 9903.05.01 through 9903.05.09 range covers a separate Section 301 Brazil program; do not confuse those codes with this Iraq action.

HTS 9903.05.46 is a Section 301 Forced Labor additional duty of 12.5 percent ad valorem that applies to all products of Iraq entered on or after July 24, 2026. Any importer, broker, or trade-compliance team processing shipments originating in Iraq must add this code to every affected entry. The duty has no announced expiration date as of September 7, 2026.

The links throughout this article go to the primary documents: the USTR final action, the official tariff schedule, and CBP system messages. Read the source.

What 9903.05.46 is and who must care

9903.05.46 sits within the Section 301 Forced Labor program, a set of country-specific additional duties collected under the authority of U.S. note 52 to the Harmonized Tariff Schedule. The country headings for this program run from 9903.05.20 through 9903.05.84, with each code dedicated to a specific country. This particular code is dedicated exclusively to Iraq.

Importers who source any goods from Iraq, regardless of product category, are directly in scope. Customs brokers filing entries for Iraq-origin merchandise and trade compliance teams reviewing country-of-origin determinations should treat this code as a mandatory classification element for all such shipments dated July 24, 2026 or later.

Note carefully: codes 9903.05.01 through 9903.05.09 are part of a separate Section 301 action targeting Brazil. They share the same subchapter but are a different program with different legal authority. Do not conflate the two.

Legal authority and program background

The Section 301 Forced Labor program is grounded in USTR authority to investigate and respond to unfair trade practices. For the Iraq action specifically, USTR issued its final action on July 23, 2026. That determination is the operative legal trigger. The tariff-schedule mechanism is U.S. note 52, which governs the entire 9903.05.20-through-9903.05.84 country-heading block. CBP operationalized the duty through CSMS message 69326983, available on the CBP website.

For context on how this program compares to Section 232 and Section 201 trade remedies, see our overview article: Section 232 vs 301 vs 201: Three Trade Remedy Tools Compared.

Product and country scope

Country

The code applies to products of Iraq (IQ). Country of origin, not country of export, determines applicability. An Iraq-origin good transshipped through a third country remains subject to 9903.05.46. Confirm country-of-origin determinations against CBP's substantial transformation rules or applicable specific rules of origin before filing.

Products

Per U.S. note 52(a), the duty covers all chapter 1-97 products. There are no carve-outs by product category listed in the facts for this code. That breadth means agricultural goods, manufactured items, raw materials, and finished consumer products from Iraq are all within scope, effective July 24, 2026. If you believe a specific product may be excluded, confirm in the current HTSUS or with a licensed customs broker, as exclusions are not reflected in the current facts for this code.

For a look at comparable country-specific 12.5 percent codes in the same program, see the articles on 9903.05.43 Hong Kong and 9903.05.41 Guyana, which carry the same additional rate.

Rate and effective window

The additional duty rate under 9903.05.46 is 12.5 percent ad valorem. It took effect on July 24, 2026, the day after the USTR final action date of July 23, 2026. As of September 7, 2026, no end date has been announced. The rate applies to the customs value of the imported merchandise in the same manner as other ad valorem duties.

Because no end date has been set, importers should plan for this duty to remain in place indefinitely unless and until USTR publishes a modification. Monitor the Federal Register for any subsequent USTR action affecting this code.

How 9903.05.46 stacks with other duties

9903.05.46 is an additional duty. It stacks on top of, rather than replacing, the regular column 1 most-favored-nation (MFN) rate that applies to Iraq-origin goods under chapters 1 through 97. The total duty obligation on a given entry line equals the standard MFN rate plus 12.5 percent.

If other Chapter 99 special duties also apply to the same merchandise, for example Section 232 steel or aluminum tariffs, those additional amounts likewise stack. The facts block does not specify an MFN cap for 9903.05.46, so confirm the interaction with any other applicable Chapter 99 provision in the current HTSUS or with your broker before filing.

Iraq does not currently benefit from a U.S. free trade agreement, so FTA rate offsets are not available to reduce the base MFN rate on most Iraq-origin goods. Confirm this in the current HTSUS.

How 9903.05.46 appears on a customs entry

Chapter 99 codes are overlay codes. They do not stand alone on an entry. Every entry line for Iraq-origin merchandise must show both:

The regular chapters 1-97 classification (the product's commodity classification), and
9903.05.46 as a secondary HTS number on the same line.

CBP's Automated Commercial Environment (ACE) uses both codes to calculate and collect the full duty amount. Filing only the chapter 1-97 code without 9903.05.46 will result in an underpayment of duty. For a detailed explanation of how Chapter 99 overlay codes work mechanically on an entry, see HTS Chapter 99 Explained: Why Your Product Has Two Codes.

For entries filed before July 24, 2026, no 9903.05.46 duty applies. For entries filed on or after that date, the 12.5 percent additional duty is owed regardless of when the goods were manufactured or shipped. If a prior entry was filed incorrectly without this code on a post-July 23, 2026 consumption entry, a post-summary correction or amended entry may be required. Confirm the correction procedure with CBP or a licensed broker.

What importers should do

Audit open and pending entries. Review any Iraq-origin shipments with arrival or entry dates on or after July 24, 2026 to confirm 9903.05.46 was reported and the 12.5 percent additional duty was deposited. File corrections promptly for any entries missing the code.
Update classification templates and ACE profiles. Add 9903.05.46 as a mandatory secondary HTS code for all Iraq-origin product lines in your entry-management system so it is applied consistently going forward.
Recalculate landed costs. The 12.5 percent additional duty applies to all chapter 1-97 products of Iraq with no announced end date. Update pricing models, purchase orders, and supplier agreements to reflect the higher total duty obligation. Use the duty calculator to estimate your exposure by shipment.
Monitor USTR and the Federal Register. Because no end date has been announced, watch for any modification, suspension, or exclusion process. Check the Federal Register and CBP CSMS regularly for updates affecting this action.

Key references

Harmonized Tariff Schedule of the United States (HTSUS): Official schedule including Chapter 99 and U.S. note 52, maintained by the USITC.
USTR.gov: Source for the Section 301 Forced Labor final action dated July 23, 2026, establishing 9903.05.46.
CBP.gov / CSMS 69326983: CBP trade community notice operationalizing the Iraq Section 301 forced labor duty in ACE.
Federal Register: Publication of USTR final actions, modifications, and any future exclusion or suspension notices for this program.
2026 Tariff Code Overview: CustomsGenius summary of major Chapter 99 additions and changes effective in 2026.
HTS Chapter 99 Explained: Why Your Product Has Two Codes: Practical guide to how overlay codes appear and function on a CBP entry.

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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.