New Section 301 forced-labor tariffs (10–12.5%) on imports from 60 economies via Chapter 99 (9903.05.xx/9903.06.xx) effective July 24, 2026, with detailed exemptions.

Overview

USTR has taken a new Section 301 action targeting forced labor, imposing additional ad valorem duties of 10% or 12.5% on a broad range of imports from 60 economies. CBP’s CSMS 69326983 provides operational guidance for brokers and importers, including the specific Chapter 99 provisions, exemptions, and filing rules. The action applies to entries for consumption, and warehouse withdrawals for consumption, on or after 12:01 a.m. Eastern Time on July 24, 2026.

Scope and Rates

The core of the measure is a set of new Chapter 99 headings 9903.05.20 through 9903.05.84. Each heading corresponds to a country or economy and generally applies to all HTSUS Chapter 1–97 classifications for products of that economy, subject to enumerated exemptions. The additional duty rates are:

• 10% additional ad valorem for certain economies (e.g., Argentina 9903.05.22, Bangladesh 9903.05.26, Cambodia 9903.05.28, Canada 9903.05.29, Costa Rica 9903.05.33, Dominican Republic 9903.05.34, Ecuador 9903.05.35, El Salvador 9903.05.37, Guatemala 9903.05.40, Honduras 9903.05.42, India 9903.05.44, Indonesia 9903.05.45, Jordan 9903.05.50, Mexico 9903.05.55, Nicaragua 9903.05.58, Pakistan 9903.05.62, Sri Lanka 9903.05.72, Taiwan (combined rate cap 10% under 9903.05.75–.76), Trinidad and Tobago 9903.05.78, United Kingdom 9903.05.81, and certain EU and South Korea lines where the combined rate is set to 10% or 12.5%).
• 12.5% additional ad valorem for many others (e.g., Algeria 9903.05.20, Angola 9903.05.21, Australia 9903.05.23, Bahamas 9903.05.24, Bahrain 9903.05.25, Brazil 9903.05.27, Chile 9903.05.30, China 9903.05.31, Colombia 9903.05.32, Egypt 9903.05.36, Guyana 9903.05.41, Hong Kong 9903.05.43, Iraq 9903.05.46, Israel 9903.05.47, Kazakhstan 9903.05.51, Kuwait 9903.05.52, Libya 9903.05.53, Morocco 9903.05.56, New Zealand 9903.05.57, Nigeria 9903.05.59, Norway 9903.05.60, Oman 9903.05.61, Peru 9903.05.63, Philippines 9903.05.64, Qatar 9903.05.65, Russia 9903.05.66, Saudi Arabia 9903.05.67, Singapore 9903.05.68, South Africa 9903.05.69, Thailand 9903.05.77, Türkiye 9903.05.79, UAE 9903.05.80, Uruguay 9903.05.82, Venezuela 9903.05.83, Vietnam 9903.05.84).

For the European Union, Japan, South Korea, Switzerland, and Taiwan, the measure uses combined-rate caps based on the underlying column 1 duty:

• EU: 9903.05.38 (no additional duty where column 1 ad valorem rate ≥10%) and 9903.05.39 (combined column 1 + Section 301 rate of 10% where column 1 rate <10%).
• Japan: 9903.05.48 (no additional duty where column 1 rate ≥12.5%) and 9903.05.49 (combined rate of 12.5% where column 1 rate <12.5%).
• South Korea: 9903.05.70 (no additional duty where column 1 rate ≥12.5%) and 9903.05.71 (combined rate of 12.5% where column 1 rate <12.5%).
• Switzerland: 9903.05.73 (no additional duty where column 1 rate ≥12.5%) and 9903.05.74 (combined rate of 12.5% where column 1 rate <12.5%).
• Taiwan: 9903.05.75 (no additional duty where column 1 rate ≥10%) and 9903.05.76 (combined rate of 10% where column 1 rate <10%).

General Exemptions (All Economies)

Several Chapter 99 headings provide cross-economy exemptions from the new Section 301 duties:

• 9903.05.85 – In-transit relief: goods loaded on the final mode of transport before 12:01 a.m. ET July 24, 2026 and entered or withdrawn for consumption before 12:01 a.m. ET July 28, 2026 are exempt.
• 9903.05.86 – A large list of specific HTSUS lines (primarily food, agricultural, energy, metals, and high-tech items) are exempt from 9903.05.20–.84. The Forced Labor HTS LIST.pdf enumerates these HTS codes.
• 9903.05.87 – Exempts certain specific articles (e.g., etrogs, certain religious baked goods, acai products, specific juices, essential oils for religious use, and certain eucalyptus plywood) by HTS line.
• 9903.05.88 – Exempts civil aircraft, engines, parts, and ground flight simulators meeting General Note 6 and classifiable in specified HTSUS provisions, regardless of “Free (C)” special rate.
• 9903.05.89 – Exempts articles for use in pharmaceutical applications, covering a very extensive list of chemical and related HTSUS lines, regardless of “Free (K)” special rate.
• 9903.05.90 – Exempts certain aluminum, steel, copper and derivative articles, passenger vehicles and light trucks, their parts, medium- and heavy-duty vehicles and parts, wood products, and semiconductor articles, where already covered by other Chapter 99 headings (e.g., 9903.82.xx, 9903.94.xx, 9903.76.xx, 9903.74.xx, 9903.79.01). These items are carved out from the new forced labor Section 301 duties.
• 9903.05.91 – Exempts humanitarian donations (food, clothing, medicine) intended to relieve human suffering.
• 9903.05.92 – Exempts informational materials (publications, films, recordings, artworks, etc.).

FTA-Related and Economy-Specific Exemptions

The measure includes numerous economy-specific exemption headings (9903.05.93–.99 and 9903.06.01–.21) that remove the new Section 301 duties for certain HTSUS lines or particular products:

• Canada – 9903.05.93: Products of Canada entered free of duty under USMCA (including certain Chapter 98 and 99 USMCA provisions) are exempt from 9903.05.29, regardless of whether “S” or “S+” appears in the Special column.
• Mexico – 9903.05.94: Products of Mexico entered free of duty under USMCA (including relevant Chapter 98 and 99 USMCA provisions) are exempt from 9903.05.55, again regardless of “S” or “S+”.
• CAFTA-DR textiles/apparel – 9903.05.95, 9903.06.06, 9903.06.09: Textile and apparel goods (as defined in GN 29(d)(v)) from Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua that are entered free of duty under CAFTA-DR are exempt from the new Section 301 duties imposed by 9903.05.33, .34, .37, .40, .42, and .58. For Guatemala and El Salvador, there are overlapping exemptions (9903.05.95 vs. 9903.06.06/9903.06.09), and importers may choose either applicable Chapter 99 heading.
• United Kingdom – 9903.05.96: Exempts a list of medical and diagnostic equipment HTSUS lines from 9903.05.81.
• European Union – 9903.05.97: Exempts certain cork, silk, and precious stone-related HTSUS lines from 9903.05.38–.39.
• Switzerland – 9903.05.98: Exempts a broad list of live animals, plants, wood, cork, silk, and precious stone-related HTSUS lines from 9903.05.73–.74.
• Malaysia – 9903.05.99 and 9903.06.01: Exempt specified agricultural, wood, cork, silk, and certain plant extract products, plus psyllium seed husks, Boswellia, and argan oil.
• Cambodia – 9903.06.02 and 9903.06.03: Exempt specified agricultural, wood, cork, silk, and plant extract products, plus psyllium seed husks, Boswellia, and certain aloe/coconut-related extracts.
• Guatemala – 9903.06.04 and 9903.06.05: Exempt specified agricultural, wood, cork, silk, and plant extract products, plus psyllium seed husks, Boswellia, and aloe/coconut-related extracts.
• El Salvador – 9903.06.07 and 9903.06.08: Exempt specified agricultural, wood, cork, silk, and plant extract products, plus aloe/coconut-related extracts.
• Argentina – 9903.06.10 and 9903.06.11: Exempt specified agricultural, cork, silk, and plant extract products, plus psyllium seed husks, aloe/coconut-related extracts, and argan oil.
• Bangladesh – 9903.06.12 and 9903.06.13: Exempt specified agricultural, cork, silk, and plant extract products, plus psyllium seed husks and argan oil.
• Taiwan – 9903.06.14 and 9903.06.15: Exempt specified agricultural, cork, silk, and plant extract products, plus psyllium seed husks, Boswellia, aloe/coconut-related extracts, and argan oil from the combined-rate provisions 9903.05.75–.76.
• Indonesia – 9903.06.16 and 9903.06.17: Exempt specified agricultural, wood, cork, silk, and plant extract products, plus aloe/coconut-related extracts from 9903.05.45.
• Ecuador – 9903.06.18 and 9903.06.19: Exempt specified agricultural, fish, wood, cork, silk, and plant extract products, plus aloe/coconut-related extracts from 9903.05.35.
• Jordan – 9903.06.20 and 9903.06.21: Exempt specified agricultural, cork, silk, and plant extract products, plus psyllium seed husks and aloe/coconut-related extracts from 9903.05.50.

Chapter 98 Treatment

The CSMS clarifies that the additional duties imposed by 9903.05.20–9903.05.84 do not apply to goods properly entered under a Chapter 98 provision, except for:

• 9802.00.40, 9802.00.50, 9802.00.60 – For these, the additional Section 301 duties apply only to the value of repairs, alterations, or processing performed abroad.
• 9802.00.80 – For this, the additional duties apply to the value of the article assembled abroad, less the cost or value of U.S. components.

Thus, most Chapter 98 entries (e.g., 9810, 9813, 9817, 9818, etc.) are exempt from the new Section 301 forced labor duties, provided CBP agrees that Chapter 98 treatment is appropriate.

Foreign Trade Zones

Any product subject to the new Section 301 forced labor additional duty that is admitted into a U.S. foreign trade zone (FTZ) must be admitted in privileged foreign status (unless eligible for domestic status under 19 C.F.R. 146.43). This ensures that the Section 301 duty liability is preserved when the goods are entered for consumption from the FTZ.

HTSUS Reporting Sequence

CBP reiterates the required order for reporting HTSUS numbers on entry summary lines when Chapter 98 and/or 99 provisions apply:

1. Chapter 98 (if applicable).

2. Chapter 99 number(s) for additional duties (if applicable).

3. For trade remedies, in this order:

• First, Chapter 99 HTSUS for Section 301 (including these new forced labor provisions).
• Then, Chapter 99 for Section 122.
• Then, Chapter 99 for Section 232.
• Then, Chapter 99 for Section 201 duties (if applicable).
• Then, Chapter 99 for Section 201 quota (if applicable).

4. Chapter 99 number(s) for replacement duty or other use (e.g., Miscellaneous Tariff Bill).

5. Chapter 99 number for other quota (not covered by #3).

6. Chapter 1–97 commodity HTSUS.

The entered value should be reported on the Chapter 1–97 HTSUS classification, unless Chapter 98 rules require a different value reporting method.

Effective Dates and Transitional Relief

• Effective date: The new Section 301 forced labor duties apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on July 24, 2026.
• In-transit relief: Under 9903.05.85, goods loaded on the final mode of transport before 12:01 a.m. ET July 24, 2026 and entered or withdrawn for consumption before 12:01 a.m. ET July 28, 2026 are exempt from the new duties.

Practical Compliance Steps for Brokers and Importers

1) Origin and Scope Screening

• For every entry, confirm whether the country of origin is one of the 60 economies covered by the action. If yes, assume the new Section 301 forced labor duties may apply unless an exemption is clearly available.
• Map your product portfolio by origin and HTSUS to identify high-impact lanes (e.g., China, Vietnam, Mexico, Canada, EU, Japan, South Korea, Taiwan, etc.).

2) Determine Applicable Chapter 99 Additional Duty Code

• For each line item from a covered economy, identify the correct 9903.05.xx heading based on the origin (e.g., 9903.05.31 for China, 9903.05.55 for Mexico, 9903.05.84 for Vietnam).
• For EU, Japan, South Korea, Switzerland, and Taiwan, determine the column 1 ad valorem rate for the Chapter 1–97 HTS line to decide whether the combined-rate cap applies or whether no additional duty is due under the relevant 9903.05.38–.39, .48–.49, .70–.71, .73–.74, .75–.76.

3) Check for General and Product-Specific Exemptions

• Consult the Forced Labor HTS LIST.pdf to see if the Chapter 1–97 HTS line is listed under 9903.05.86, 9903.05.87, 9903.05.88, 9903.05.89, 9903.05.96–.99, or 9903.06.01–.21. If so, do not apply the corresponding 9903.05.20–.84 additional duty.
• For civil aircraft and related parts, confirm GN 6 eligibility and HTS classification under the 9903.05.88 list.
• For pharmaceutical-use items, confirm that the product is for pharmaceutical applications and classifiable under one of the HTS lines listed under 9903.05.89.
• For aluminum, steel, copper, vehicles, vehicle parts, wood products, and semiconductors, check whether they are already covered by the specified 9903.82.xx, 9903.94.xx, 9903.76.xx, 9903.74.xx, or 9903.79.01 headings; if so, they are exempt from the new forced labor Section 301 duties via 9903.05.90.

4) Apply FTA-Related Exemptions

• For Canada and Mexico, determine USMCA eligibility and ensure the goods are entered free of duty under the appropriate USMCA provisions. If so, apply 9903.05.93 (Canada) or 9903.05.94 (Mexico) and do not apply 9903.05.29 or 9903.05.55.
• For CAFTA-DR textiles and apparel from Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua, verify GN 29 eligibility and claim 9903.05.95, 9903.06.06, or 9903.06.09 as appropriate. Where overlapping exemptions exist (e.g., Guatemala and El Salvador), choose the Chapter 99 heading that best fits your filing strategy, as permitted.

5) Chapter 98 and 9802 Entries

• For entries under Chapter 98 (other than 9802.00.40, .50, .60, .80), do not apply 9903.05.20–.84 additional duties.
• For 9802.00.40, 9802.00.50, 9802.00.60, calculate the additional Section 301 duty only on the value of repairs, alterations, or processing performed abroad.
• For 9802.00.80, calculate the additional duty on the value of the article assembled abroad, less the cost or value of U.S. components.

6) FTZ Operations

• For covered products admitted into FTZs, ensure they are admitted in privileged foreign status (unless eligible for domestic status) so that the Section 301 duty rate is locked in and applied when the goods are entered for consumption.

7) Filing Mechanics and Systems Updates

• Update ABI/ACE filing templates and broker instructions to include the new 9903.05.xx and 9903.06.xx codes and to enforce the HTSUS reporting sequence (Chapter 98, then Section 301, then other trade remedies, then Chapter 1–97).
• Ensure that the entered value is reported on the Chapter 1–97 HTS line, with any Chapter 98-specific valuation rules applied as required.
• Train staff to recognize when multiple Chapter 99 codes may apply (e.g., Section 301 plus Section 232) and to order them correctly.

8) Ongoing Monitoring

• Monitor USTR and CBP communications for any amendments, additional exclusions, or clarifications to U.S. note 52, the Chapter 99 headings, or the Forced Labor HTS list.
• Coordinate with suppliers to understand potential origin shifts, FTZ usage, or FTA qualification strategies to mitigate the impact of the new duties.

This action is a major structural change to U.S. import duty calculation for a wide range of origins and products. Brokers and trade compliance teams must integrate the new Chapter 99 provisions, rates, and exemptions into classification, origin, and entry processes well before the July 24, 2026 effective date.