Temporary Suspension of Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Alcoholic Beverages, Dairy, and Motor Vehicles

A Section 338 measure is a US trade action under Section 338 of the Tariff Act of 1930. It can authorize additional duties or other import restrictions when a foreign government is considered to be discriminating against US commerce. This title indicates a temporary suspension of additional duties connected with Canadian treatment of US goods, including alcoholic beverages, dairy, and motor vehicles.

The measure typically affects importers bringing covered Canadian-origin merchandise into the United States, but the exact impact depends on the legal scope and the product’s tariff classification. An importer should distinguish the ordinary customs duty from any additional duty under a trade measure, then verify whether the measure is suspended, active, or subject to conditions. Country of origin, the Harmonized Tariff Schedule (HTSUS) classification, product description, and any exclusions or quota rules may all matter.

What to check

• Confirm the product’s correct HTSUS classification, using the full tariff provision rather than a general product name.
• Verify the product’s country of origin and whether the measure applies to Canadian-origin goods under the applicable origin rules.
• Check the official measure text and current HTSUS reporting instructions for the measure’s status, scope, exclusions, and any suspension conditions.
• Separate the normal duty rate from any Section 338 additional duty, and review other potentially applicable trade measures independently.
• If classification, origin, or scope is uncertain, obtain a customs broker’s or trade counsel’s review before entry.