Treatment of Canadian exports to US - March 4-6, 2025
There is a great deal of confusion regarding tariffs on Canadian goods imported into the US at various times over the last month.
The Federal Register notice re. tariffs on Canadian goods which that took effect on March 4, mentions:
The additional duties imposed by headings 9903.01.10 and 9903.01.13 shall not apply to goods for which entry is properly claimed under a provision of chapter 98 of the tariff schedule pursuant to applicable regulations of U.S. Customs and Border Protection (“CBP”), and whenever CBP agrees that entry under such a provision is appropriate, except for goods entered under subheading 9802.00.80; and subheadings 9802.00.40, 9802.00.50, and 9802.00.60. For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed (in Canada), as described in the applicable subheading. For heading 9802.00.80, the additional duties apply to the value of the article assembled abroad (in Canada), less the cost or value of such products of the United States, as described.
TPL goods enter the U.S. under subheadings 9823.52.01 through 9823.53.06. Chapter 98.
By exempting all other products of chapter 98 the Notice by default excluded TPL products cleared into the United States under that chapter.
For that reason, products entered into the United States in that short period of time (March 4-6) are not subject to the tariffs envisaged by the federal register notice.
Companies can forward this information to their US customs broker and reconfirm our understanding of this situation.
We appreciate that it only covers three days, but this will be substantial for many companies. If for any reason your broker would like to communicate directly with CAF, please encourage them to do so.
Please note that this anomaly is only related to TPL goods, not qualifying CUSMA/USMCA products.
Contact:
Bob Kirke
Executive Director, CAF
bkirke@apparel.ca