Section 338 Canada Duties Modified: CBP Guidance on Sept 2026 Changes

Key Points

• On September 8, 2026, the President issued a Proclamation modifying the scope of Section 338 additional duties on certain goods of Canada related to alcoholic beverages and motor vehicles.
• CBP published CSMS 69851916 on September 11, 2026, providing operational filing guidance on how to apply these modifications in ACE.
• The original Section 338 duties stem from Proclamation 11056, issued on August 18, 2026, which first imposed the additional duties to offset Canadian discrimination against U.S. commerce in alcoholic beverages and motor vehicles.
• Importers and brokers should review affected entries immediately to determine whether goods of Canada fall within the modified scope and adjust duty calculations accordingly.

On this page

1. What changed: the September 8 Proclamation and CSMS 69851916
2. Background: Section 338 and Proclamation 11056
3. Affected products and scope
4. What the CBP guidance covers
5. What importers and brokers should do now
6. Key references

The September 8, 2026 Presidential Proclamation modifies the scope of Section 338 additional duties on certain Canadian goods, specifically those tied to alcoholic beverages and motor vehicles. CBP followed on September 11, 2026 with CSMS 69851916, which provides the operational filing guidance brokers and importers need to implement the changes in ACE. The links in this article go to the primary documents: the proclamations and official CBP guidance themselves. Read the source.

What changed: the September 8 Proclamation and CSMS 69851916

A new Presidential Proclamation issued on September 8, 2026 modifies the scope of products of Canada subject to Section 338 additional duties. The modification specifically addresses goods related to alcoholic beverages and motor vehicles, two product categories at the center of the underlying trade dispute. CBP's CSMS 69851916, published September 11, 2026, translates that Proclamation into ACE filing instructions for the trade community.

Background: Section 338 and Proclamation 11056

Section 338 of the Tariff Act of 1930 authorizes the President to impose additional duties on goods from countries that discriminate against U.S. commerce. On August 18, 2026, Proclamation 11056 invoked that authority, imposing additional duties on certain Canadian goods in response to Canadian discrimination against U.S. alcoholic beverages and motor vehicles. The September 8 Proclamation refines the scope of those duties, meaning the universe of covered goods has changed from what Proclamation 11056 originally defined.

Affected products and scope

Based on the CSMS and Proclamation titles, the modifications specifically affect goods of Canada in the alcoholic beverages and motor vehicles product categories. The September 8 Proclamation narrows or otherwise adjusts which goods within those categories are subject to the Section 338 additional duties. Importers of Canadian alcoholic beverages and motor vehicles, as well as automotive parts and related goods that may fall within the motor vehicles scope, should closely review the Proclamation text to determine whether their specific products are now included, excluded, or reclassified under the modified scope.

What the CBP guidance covers

CSMS 69851916 provides guidance on how to implement the Proclamation's modifications when filing entries in ACE. Customs brokers and importers should consult this message for the specific entry coding, special program indicators, or other ACE instructions CBP requires to correctly declare Section 338 duties under the modified scope. Failure to apply updated scope rules at the time of entry can result in duty underpayment, post-entry corrections, or penalties.

What importers and brokers should do now

• Read the September 8, 2026 Presidential Proclamation in full to determine exactly which Canadian goods remain subject to, or have been removed from, Section 338 additional duties.
• Review CSMS 69851916 for CBP's ACE filing instructions and implement any required entry coding changes immediately for entries of affected Canadian goods.
• Audit open and recently filed entries of Canadian alcoholic beverages and motor vehicles against the modified scope to identify any need for post-entry corrections or protests.
• Update internal compliance procedures and tariff-classification workflows to reflect the revised Section 338 scope going forward.

Key references

• CSMS 69851916 (Sept 11, 2026): CBP operational filing guidance on modified Section 338 Canada duties.
• Presidential Proclamation of September 8, 2026: Modifying the scope of Section 338 additional duties on Canadian goods (alcoholic beverages and motor vehicles). Available at whitehouse.gov.
• Proclamation 11056 (Aug 18, 2026): Original Section 338 additional duties on certain goods of Canada. Available at whitehouse.gov.
• 19 U.S.C. Section 1338: Statutory authority for Section 338 retaliatory duties on discriminating countries.