Imposing Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Alcoholic Beverages

A Section 338 measure is a US trade action under Section 338 of the Tariff Act of 1930. It can impose additional duties on imported goods when the United States determines that a foreign country is discriminating against US commerce. In this example, the stated concern involves Canadian treatment of US commerce related to alcoholic beverages.

The measure typically affects goods that meet the coverage described in the official measure, based on factors such as product classification, country of origin, and the applicable entry or effective-date rules. The extra charge is generally added to any ordinary customs duty and other applicable trade measures, so an importer must review the full tariff treatment rather than looking only at the product's basic HTSUS rate.

What to check

• Check the official measure and its product list to confirm whether the merchandise is covered, using the correct HTSUS classification rather than a broad product description.
• Verify the goods' country of origin under US customs rules; the shipping country alone does not establish origin.
• Confirm the measure's effective-date and entry rules for each shipment, including whether the goods were entered, withdrawn, or subject to a special timing provision.
• Determine whether the additional duty is cumulative with ordinary duty, excise tax, AD/CVD, or other applicable measures, and review the required entry reporting instructions.
• Ask a customs broker or trade counsel to review uncertain classifications, origin questions, exclusions, or applicability to mixed-product shipments.