On the evening of July 23, 2026, Customs and Border Protection (CBP) issued Cargo Systems Messaging Service (CSMS) implementation guidance for the new Section 301 forced labor enforcement tariffs announced by the Office of the U.S. Trade Representative (USTR). The additional duties become effective for merchandise entered for consumption, or withdrawn from warehouse for consumption, at or after 12:01 a.m. Eastern Time on July 24, 2026. The action imposes additional duties of 10% or 12.5% on imports from 60 countries, depending on the country of origin. The imposition of duties reflects the USTR’s assertion that these countries have failed “to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.”
Country-Specific Tariff Rates
CBP has created new Chapter 99 tariff provisions for each affected country. The majority of countries, including China, Vietnam, Thailand, Turkey and Brazil, are subject to a 12.5% additional duty.
Certain countries, including Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom, are subject to a 10% additional duty.
Several economies, such as the European Union, Japan, South Korea, Switzerland and Taiwan, have unique most-favored-nation rate provisions that cap the combined Column 1 and Section 301 duty rates under specific circumstances.
In-Transit Exception
CBP confirmed a limited in-transit exception for qualifying merchandise. To qualify, goods must have been loaded onto the vessel at the port of loading and in transit on the final mode of transportation before 12:01 a.m. ET on July 24, 2026, and must have arrived and entered or been withdrawn from the warehouse for consumption before 12:01 a.m. ET on July 28, 2026.
Important Exemptions
CBP published numerous country-specific exemptions, including provisions for qualifying goods entered under the U.S.-Mexico-Canada Agreement (USMCA), articles of textiles and apparel under the Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR), and other trade programs. Importers should carefully review these exemptions to determine whether their products qualify for relief.
The guidance also outlines several broad exclusions from the new duties. Among the products generally exempt are:
- Merchandise qualifying under certain Chapter 98 provisions
- Articles that qualify under USMCA
- Textiles and apparel goods that qualify under CAFTA-DR
- Certain steel, aluminum, copper, automobiles, auto parts, wood products and semiconductor articles already covered by other trade remedy actions such as Section 232
- Civil aircraft and related parts
- Certain pharmaceutical products
- Donations intended for humanitarian relief
- Informational materials such as books, films, art and similar media
Stacking Section 301 Tariffs
The new Section 301 Forced Labor duties may stack with other applicable trade remedies. For example, products from China that are already subject to existing Section 301 duties based on their Harmonized Tariff Schedule (HTS) classification will also be subject to the new Section 301 forced labor duties. Likewise, qualifying products from Brazil will be subject to both the country-specific Brazil Section 301 duties and the new Section 301 forced labor duties.
Entry Filing Requirements
CBP also provided detailed filing instructions for entry summaries. When multiple Chapter 98 and Chapter 99 provisions apply, importers and customs brokers must report tariff numbers in a specific order. For trade remedies, the sequence is:
- Section 301 Chapter 99 number
- Section 122 Chapter 99 number (where applicable)
- Section 232 Chapter 99 number
- Section 201 provisions, if applicable
The underlying Chapter 1-97 Harmonized Tariff Schedule of the United States (HTSUS) classification is reported last on the entry summary line.
What Importers Should Do
Importers with shipments arriving on or after July 24 should immediately review their affected products and countries of origin to determine the applicable Chapter 99 tariff provisions and whether any exemptions apply. Companies with shipments currently in transit should also evaluate whether they qualify for the limited in-transit exception. Due to stacking provisions, carefully review all applicable trade remedies to determine the total duty liability for each import. Given the complexity of the new requirements, importers should coordinate closely with their customs broker to ensure entries are filed accurately and in compliance with CBP’s guidance.
