For companies moving Canadian merchandise into the United States, the Section 338 review now includes a fundamental question: is the product admissible?

Presidential proclamations issued September 8, 2026, exclude specified Canadian products from importation beginning at 12:01 a.m. Eastern Time on September 29. The actions respond to disputes involving alcoholic beverages, dairy and motor vehicles. The annex to each proclamation establishes the actual product scope. [1–3]

Importers should resolve that scope before arranging the next shipment. A duty estimate alone cannot answer whether an affected article may enter.

What changed on September 29

The September actions move certain Canadian products from the earlier additional 50% Section 338 duty treatment to exclusion from importation. The proclamations state that other merchandise subject to the earlier duties remains covered as provided by the relevant scope provisions. [1–3]

That creates three possible outcomes for a product-level review: an import prohibition, continued additional-duty exposure, or no coverage under these particular Section 338 measures.

The third outcome does not mean that a product is free of every other duty or import requirement. It means that the product falls outside the Section 338 provisions being examined. Importers still need to evaluate the rest of the applicable customs treatment.

Read the annex, not just the sector label

The names of the trade disputes are useful context, but they are not a substitute for the annexes. A supplier’s industry, a commercial product name or an earlier customs treatment cannot establish the present result on its own.

TradeFlex recommends comparing the merchandise against the current tariff classification and the exact wording of the applicable provisions. Product characteristics may be necessary to resolve whether a specific classification or description applies.

Where an item falls under an affected provision, preserve the supporting specifications and the basis for the conclusion. Where it falls outside, document that conclusion as well. The result should be usable by the broker, operations team and supplier without requiring each party to repeat the analysis.

Import timing and entry timing need separate records

The proclamations make the exclusions effective for goods imported on or after the stated September 29 cutoff. They also address products imported before that date but not yet entered for consumption or withdrawn from warehouse for consumption. Those products remain subject to the earlier 50% duty treatment under the stated transition provisions. [1–3]

This distinction is particularly relevant to goods that have arrived but are awaiting a later customs step. A purchase-order date or the date the supplier loaded a truck does not establish all the facts needed to apply that rule.

Collect the relevant transportation, arrival and customs records. Have the broker review them against the applicable proclamation and CBP instructions before making a decision about transition treatment. Do not assume that goods described informally as being in transit qualify.

Give each shipment a documented decision

For pending shipments, the working review should identify the item number, product description, origin, HTSUS classification, applicable Section 338 provision and the evidence supporting the conclusion.

It should also record the shipment’s location and timing, whether additional information is needed, and who is responsible for the next action. A clear decision allows the logistics team to proceed, seek clarification or adjust the shipment plan as appropriate.

Unresolved classification or scope questions should reach the responsible customs reviewer before dispatch. Commercial urgency does not supply missing product information, and a truck waiting at the border gives the team fewer practical options.

Connect customs findings with operations

The operational impact will depend on the merchandise and the company’s inventory position. Possible consequences include storage costs, missed delivery appointments, rescheduling and interruption to customer supply.

Prioritize products needed for near-term orders or production. For those items, procurement and logistics should understand the customs finding and have a documented response. Any return, diversion or alternative movement should be reviewed for its own requirements before execution.

Warehousing or an FTZ should not be treated as an automatic route around an import prohibition. The proposed movement and the legal treatment of the goods need their own review.

Keep finance and customers aligned

For merchandise that remains subject to the additional duty, update the landed-cost analysis using the confirmed treatment. Keep the Section 338 amount separate from other duties, fees and transportation charges so decision-makers can see what drives the change.

For merchandise subject to exclusion, the immediate business question is continuity of supply. Customer-facing teams need realistic delivery information, while procurement needs enough lead time to assess lawful alternatives. Avoid broad announcements about an entire Canadian supplier when the result differs by item.

How TradeFlex can help

TradeFlex supports importers through customs brokerage, classification review, tariff analysis and cross-border logistics coordination. We can help connect the applicable Section 338 scope with the product and shipment information needed for a documented decision.

Contact TradeFlex to review affected Canadian merchandise before the next U.S.-bound shipment is dispatched.