Effective July 24, 2026, the United States began imposing additional Section 301 duties on products imported from designated economies that failed to effectively prohibit the importation of goods produced with forced labor.
The additional duty is generally 10% or 12.5%, depending on the country of origin.
However, not every product is subject to the new duty. Before paying the additional Section 301 duty, importers should review the applicable Chapter 99 exemptions.
General Exemptions for All Covered Economies
| Chapter 99 | U.S. Note | Simple Explanation |
|---|---|---|
| 9903.05.85 | In-Transit Exemption | Goods loaded onto the final mode of transportation before 12:01 a.m. EDT on July 24, 2026, and entered for consumption or withdrawn from warehouse before 12:01 a.m. EDT on July 28, 2026. |
| 9903.05.86 | U.S. Note 52(b) | Products classified under the specific HTSUS numbers listed in Note 52(b). The list includes certain agricultural products, food products, raw materials, minerals, chemicals, computer products, semiconductor-related products and other specifically identified goods. |
| 9903.05.87 | U.S. Note 52(c) | Sixteen specifically identified products, including certain seeds for planting, religious food products, acai and coconut products, essential oils for religious use and certain eucalyptus plywood. |
| 9903.05.88 | U.S. Note 52(d) | Qualifying civil aircraft, aircraft engines, parts, components, subassemblies and ground flight simulators. Military aircraft are not included. |
| 9903.05.89 | U.S. Note 52(e) | Certain chemicals, ingredients, compounds and other products classified under the listed HTSUS provisions when used in pharmaceutical applications. |
| 9903.05.90 | U.S. Note 52(f) | Certain steel, aluminum and copper articles; passenger vehicles and light trucks; vehicle parts; medium- and heavy-duty vehicles and parts; wood products; and semiconductor articles covered by the specified Chapter 99 trade-remedy provisions. |
| 9903.05.91 | Humanitarian Donations | Donations such as food, clothing and medicine intended to relieve human suffering. |
| 9903.05.92 | Informational Materials | Publications, films, posters, photographs, records, tapes, compact discs, CD-ROMs, artworks, news wire feeds and similar informational materials. |
Country-Specific Exemptions
In addition to the general exemptions above, certain economies have special exemptions under U.S. Note 52.
| Economy or Program | Chapter 99 | Simple Explanation |
|---|---|---|
| Canada | 9903.05.93 | Products of Canada entered free of duty under the United States-Mexico-Canada Agreement may be exempt from the additional duty. |
| Mexico | 9903.05.94 | Products of Mexico entered free of duty under the United States-Mexico-Canada Agreement may be exempt from the additional duty. |
| CAFTA-DR Textiles and Apparel | 9903.05.95 | Qualifying textile and apparel goods of Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras or Nicaragua entered free of duty under CAFTA-DR. |
| United Kingdom | 9903.05.96 | Products of the United Kingdom specifically identified in U.S. Note 52(j)(1). |
| European Union | 9903.05.97 | Products of an EU member state specifically identified in U.S. Note 52(j)(2). |
| Switzerland | 9903.05.98 | Products of Switzerland specifically identified in U.S. Note 52(j)(3). |
| Malaysia | 9903.05.99 and 9903.06.01 | Two categories of Malaysian products specifically identified in U.S. Note 52(j)(4). |
| Cambodia | 9903.06.02 and 9903.06.03 | Two categories of Cambodian products specifically identified in U.S. Note 52(j)(5). |
| Guatemala | 9903.06.04 and 9903.06.05 | Two categories of Guatemalan products specifically identified in U.S. Note 52(j)(6). |
| Guatemala Textiles and Apparel | 9903.06.06 | Qualifying textile or apparel goods of Guatemala specifically identified in U.S. Note 52(j)(6)(iii). |
| El Salvador | 9903.06.07 and 9903.06.08 | Two categories of Salvadoran products specifically identified in U.S. Note 52(j)(7). |
| El Salvador Textiles and Apparel | 9903.06.09 | Qualifying textile or apparel goods of El Salvador specifically identified in U.S. Note 52(j)(7)(iii). |
| Argentina | 9903.06.10 and 9903.06.11 | Two categories of Argentine products specifically identified in U.S. Note 52(j)(8). |
| Bangladesh | 9903.06.12 and 9903.06.13 | Two categories of Bangladeshi products specifically identified in U.S. Note 52(j)(9). |
| Taiwan | 9903.06.14 and 9903.06.15 | Two categories of products of Taiwan specifically identified in U.S. Note 52(j)(10). |
| Indonesia | 9903.06.16 and 9903.06.17 | Two categories of Indonesian products specifically identified in U.S. Note 52(j)(11). |
| Ecuador | 9903.06.18 and 9903.06.19 | Two categories of Ecuadorian products specifically identified in U.S. Note 52(j)(12). |
| Jordan | 9903.06.20 and 9903.06.21 | Two categories of Jordanian products specifically identified in U.S. Note 52(j)(13). |
Important Rules
An exemption does not apply merely because a product generally falls within one of the categories above. The merchandise must satisfy the exact product description, country-of-origin requirement, HTSUS classification and any other condition stated in U.S. Note 52.
For Canada and Mexico, the exemption generally depends on whether the merchandise qualifies for duty-free treatment under USMCA.
For CAFTA-DR textile and apparel goods, the merchandise must meet the applicable origin rules and be entered free of duty under CAFTA-DR.
When a qualifying textile or apparel product of Guatemala or El Salvador is eligible under both 9903.05.95 and the applicable country-specific provision, the importer may report either applicable Chapter 99 exemption heading.
Chapter 98 Treatment
The additional duties generally do not apply when merchandise is properly entered under an eligible Chapter 98 provision and CBP agrees that the Chapter 98 treatment is appropriate.
Special valuation rules apply to merchandise entered under:
- 9802.00.40
- 9802.00.50
- 9802.00.60
- 9802.00.80
For these provisions, the additional duty may apply only to the value of foreign repairs, alterations, processing or foreign components, as applicable.
Foreign-Trade Zone Treatment
Covered merchandise admitted into a U.S. foreign-trade zone generally must be admitted in privileged foreign status, unless it qualifies for admission in domestic status.
Entry-Summary Reporting Order
When multiple Chapter 98 or Chapter 99 provisions apply, they should generally be reported in the following order:
- Chapter 98 provision, if applicable
- Section 301 Chapter 99 provision
- Section 122 Chapter 99 provision
- Section 232 Chapter 99 provision
- Section 201 duty or quota provisions, if applicable
- Other replacement-duty or quota provisions
- The regular Chapter 1–97 commodity classification
Final Reminder
Section 301 Forced Labor treatment cannot be determined by the country name or product description alone. Importers should review:
- The country-specific Section 301 heading;
- General exemptions under 9903.05.85–9903.05.92;
- Any applicable country-specific exemption;
- The exact HTSUS classification;
- The relevant subdivision of U.S. Note 52; and
- Any other applicable trade-remedy duties.
Antidumping duties, countervailing duties, Section 232 duties and other taxes, fees or charges may still apply even when the new Section 301 Forced Labor duty is exempt.
https://content.govdelivery.com/bulletins/gd/USDHSCBP-421d887?wgt_ref=USDHSCBP_WIDGET_2
