A new 50% U.S. tariff takes effect August 19. Here's what it means for your shipments.
As of August 19, the United States applies a 50% duty to a specific list of Canadian-origin goods entering the country. Whether it applies to you depends on the HS codes your products are classified under. If you ship into the U.S., that is worth confirming before the date, not after.
The list is defined by classification, not by industry. Two products that look similar on a packing slip can sit under different codes, and only one of them may be caught. Companies that have shipped the same goods under the same codes for years are the ones most exposed, because nobody has had a reason to re-examine the classification.
Jump to the inquiry form ↓If you import as a non-resident, the consequences are harder to contain
U.S. Customs and Border Protection is applying closer scrutiny to importer of record arrangements, and non-resident importers are seeing the most of it. The legal position is the same either way: whoever is named as importer of record carries full responsibility for classification, valuation and duty payment on every entry, whether or not they have a U.S. presence.
What differs is the margin for error. A non-resident IOR has fewer options when an entry is questioned, and the record it can produce matters more.
Classification problems surface late
A misclassified entry usually clears the border without incident. The consequence arrives afterwards, and it is not limited to the shipment that triggered it.
- CBP can issue a CF28 Request for Information months after an entry has cleared, asking you to substantiate the classification you filed
- An unsatisfactory response can lead to a CF29 Notice of Action, and to a broader audit of your import activity
- Corrections can reach back five years. Duties, interest and penalties apply to every affected entry in that window, not only the one that was flagged
At a 50% duty rate, a classification that has been incorrect for several years without being questioned carries materially more exposure than one corrected now.
Two ways to find out where you stand
HS code review
We review the classifications you are filing against the Section 338 list and tell you which of your products are affected, which are not, and where a code is arguable rather than settled.
Importer audit
A wider look at your import activity: how your importer of record structure is set up, how valuation and country of origin are being determined, what your records would support if CBP asked, and where the exposure actually sits.
Both are paid engagements, scoped to what you ship. Tell us a bit about what you ship and we will come back to you on what makes sense for your situation.
Talk to our trade compliance teamWhat a review does, and what it does not do
We advise. We do not issue rulings. Binding classification rulings come from CBP alone, and the importer of record remains legally responsible for the HS code filed on every entry. That responsibility cannot be contracted out, and we will not tell you otherwise.
What a review gives you is a documented, defensible basis for the classification you file, and a clear view of where you are exposed. If CBP questions an entry, the difference between a reasoned position on record and no position at all is significant. It is not the same as immunity, and anyone presenting it that way is overselling.
Meet Amber Coles
Amber Coles leads JORI's U.S. Trade Compliance & Regulatory work. She brings more than 20 years of experience in international trade and customs compliance, including tariff classification, customs valuation, duty mitigation, and CBP audits.
When a classification is questioned or an entry is flagged, that is work she has done before, alongside our freight and customs teams.
Prefer to ask us live?
Join our panel on Wednesday, August 12, where our trade compliance team covers the same ground and takes questions directly.
Register for the live panelNot sure how the new tariff affects you?
Tell us what you ship into the U.S. and we'll review whether the new tariff applies to your products. You'll get a direct answer either way.
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