9903.05.54 Malaysia Section 301 Forced Labor: 10% Duty Explained

Key Points

• HTS 9903.05.54 imposes a 10 percent additional ad valorem duty on all products of Malaysia, effective July 24, 2026, with no announced end date.
• The duty applies across all Chapter 1 through 97 products of Malaysia, meaning no product category is carved out under this action.
• The legal authority is the USTR Section 301 Forced Labor Investigation (FLIP) final action dated July 23, 2026, implemented under U.S. note 52 to Chapter 99.
• 9903.05.54 is a Chapter 99 overlay code; it rides on top of the normal Chapter 1-97 classification line on every affected entry.
• This code is part of the Section 301 Forced Labor program (country headings 9903.05.20 through 9903.05.84), which is a distinct program from the Section 301 Brazil tariffs at 9903.05.01 through 9903.05.09.

On this page

1. What 9903.05.54 is and why it exists
2. Product and country scope
3. The 10 percent rate and its effective window
4. How 9903.05.54 stacks with other duties
5. How this code appears on a customs entry
6. What importers should do
7. Key references

HTS 9903.05.54 is a Section 301 Forced Labor tariff code that adds a 10 percent ad valorem duty on all products of Malaysia, effective July 24, 2026, with no announced end date. Any importer, broker, or trade attorney handling Malaysian-origin goods must add this code to every Chapter 1-97 entry line for Malaysian products entered on or after that date. The facts below are drawn from official sources as of September 9, 2026.

The links in this article go to the primary documents: the USTR final action, Federal Register notices, CBP guidance, and the official tariff schedule itself. Read the source.

What 9903.05.54 is and why it exists

9903.05.54 was created as part of the USTR's Section 301 Forced Labor Investigation (FLIP) program. USTR's final action was issued on July 23, 2026, and CBP implemented it via CSMS message 69326983. The governing legal authority is U.S. note 52 to Chapter 99 of the Harmonized Tariff Schedule of the United States.

The Section 301 FLIP program covers a range of countries, each assigned its own four-digit suffix in the 9903.05.20 through 9903.05.84 range. Malaysia's country-specific code is 9903.05.54. Rates and product scopes vary by country across the program, so do not assume the rate or scope that applies to one country code applies to another. For comparison, see the coverage of 9903.05.50 (Jordan, 10%) and 9903.05.45 (Indonesia, 10%).

This program is entirely separate from the Section 301 Brazil tariffs, which occupy the 9903.05.01 through 9903.05.09 range. Do not confuse the two.

Product and country scope

Country of origin: Malaysia

9903.05.54 applies to goods whose country of origin is Malaysia (ISO: MY). Origin is determined under the standard CBP rules of origin. If your goods are assembled in a third country from Malaysian components, or Malaysian goods are substantially transformed elsewhere, confirm origin status carefully before concluding this code applies or does not apply.

Product scope: all Chapter 1-97 products

Per U.S. note 52(a), the duty applies to all Chapter 1 through 97 products of Malaysia. There is no product-specific exclusion or positive list under this action. If the goods are of Malaysian origin and classifiable anywhere in Chapters 1-97, 9903.05.54 applies. The facts block confirms this broad scope under the migration record dated July 28, 2026.

If you are uncertain whether a specific product or origin scenario falls within scope, confirm it against the current Harmonized Tariff Schedule at hts.usitc.gov or with your broker. The facts block is silent on any exclusions, and this article does not create any.

The 10 percent rate and its effective window

The additional duty rate under 9903.05.54 is 10 percent ad valorem, calculated on the customs value of the imported merchandise. The rate took effect on July 24, 2026, and has no announced end date as of the facts date of September 9, 2026.

Because there is no announced end date, importers should treat this duty as ongoing until USTR or CBP publishes a modification or termination. Monitor federalregister.gov and cbp.gov for any future notices affecting this action.

How 9903.05.54 stacks with other duties

The 10 percent Section 301 FLIP duty is an additional duty. It stacks on top of, and does not replace, any of the following that may already apply to your goods:

• Column 1 (MFN) duty under the Chapter 1-97 classification
• Any other applicable Section 301 duties (for example, those under 9903.88.xx series for China-origin goods)
• Antidumping or countervailing duties (AD/CVD) on the specific product
• Any other Chapter 99 overlay duties in effect for the product

The facts block does not indicate that this rate is MFN-capped for Malaysia. Confirm your full duty stack against the current HTS and any applicable AD/CVD orders before filing. For a broader look at how Chapter 99 overlay codes interact with base classifications, see HTS Chapter 99 Explained: Why Your Product Has Two Codes.

How this code appears on a customs entry

9903.05.54 is a Chapter 99 overlay code. On an ACE entry summary, it appears as a second HTS line riding alongside the primary Chapter 1-97 classification for the product. You do not replace the base classification with 9903.05.54; you report both codes on the same entry line or as paired lines, depending on how your broker structures the filing in ACE.

CBP's CSMS message 69326983 provides the specific filing instructions for this action. Review that message carefully with your broker before submitting entries for Malaysian-origin goods dated July 24, 2026 or later. For guidance on pulling entry summary reports to audit your filings, see ACE Entry Summary Reports: What Every Importer Should Pull.

Entries filed on or after July 24, 2026 for Malaysian-origin goods that omit 9903.05.54 will be under-declared for duty, creating a potential liability. If you have entries in that window that did not include this code, confirm with your broker whether a post-summary correction or protest is warranted.

What importers should do

• Audit open and recent entries. Review all entry summaries for Malaysian-origin goods dated July 24, 2026 onward and confirm that 9903.05.54 is reported and the 10 percent additional duty has been assessed. Use the Import Compliance Checklist as a framework for this review.
• Update your duty cost models. Add the 10 percent Section 301 FLIP duty to your landed cost calculations for all Malaysian-origin goods. Use the duty calculator to model the stacked duty impact across your product mix.
• File CBP guidance instructions correctly. Read CSMS 69326983 and confirm with your customs broker that entries are structured with both the Chapter 1-97 base code and 9903.05.54 as the Chapter 99 overlay.
• Monitor for changes. There is no announced end date as of September 9, 2026. Watch federalregister.gov and cbp.gov for any USTR or CBP notices modifying or terminating this action.

Key references

• Harmonized Tariff Schedule of the United States, hts.usitc.gov - Official HTS including Chapter 99 and U.S. note 52
• CBP CSMS 69326983 - CBP implementation guidance for the Section 301 FLIP Malaysia action
• Federal Register, federalregister.gov - USTR Section 301 FLIP final action notices
• 2026 Tariff Code Overview, CustomsGenius - Summary of 2026 Chapter 99 tariff code changes
• HTS Chapter 99 Explained: Why Your Product Has Two Codes - How overlay codes work alongside base classifications
• ACE Entry Summary Reports: What Every Importer Should Pull - Auditing entries for correct duty reporting