The forced-labor Section 301 tariff: 9903.05 headings by country, rates and exemptions

Short answer: The forced-labor Section 301 tariff is an additional duty of 10% or 12.5% on goods of 60 economies entered on or after 12:01 a.m. Eastern Time on July 24, 2026, reported under one Chapter 99 heading per origin, from 9903.05.20 (Algeria) to 9903.05.84 (Vietnam). China is 9903.05.31 at 12.5%, Canada 9903.05.29 and Mexico 9903.05.55 at 10%, and the EU, Japan, South Korea, Switzerland and Taiwan each have a pair of capped headings that top the MFN rate up to 10% or 12.5%. Section 232 goods, USMCA duty-free goods of Canada and Mexico, and goods on the product lists in U.S. note 52 to Chapter 99 report an exemption heading from 9903.05.85 onward instead. Whether a product is on those lists depends on its 8- or 10-digit HTSUS line, not on its origin.

The duty reaches goods from Canada to Vietnam, and it is easy to miss because it started at the same minute the Section 122 surcharge expired. This post covers where the action came from, how the rate for an origin is set, the heading for every origin, how the exemptions are written and matched to a product, and how the tariff differs from UFLPA detentions and from the IEEPA duties. Rates, headings and dates were checked against the USTR notice of action (91 FR 47318), the presidential memorandum (91 FR 47717) and CBP CSMS 69326983 with its attached HTS list on October 23, 2026. Confirm the current Chapter 99 text in the HTSUS (US Harmonized Tariff Schedule) before you file.

What is the forced-labor Section 301 action, and where did it come from?

The forced-labor Section 301 action is a set of 60 parallel Section 301 investigations, one per economy, that the U.S. Trade Representative (USTR) opened in March 2026 (initiation notice 91 FR 12884) and closed with tariffs in July 2026. Section 301 of the Trade Act of 1974 lets USTR act against foreign practices that are “unreasonable or discriminatory and burden or restrict United States commerce” (19 USC 2411(b)). Its examples of unreasonable practices include a persistent pattern that “permits any form of forced or compulsory labor” (19 USC 2411(d)(3)(B)(iii)(III)). The finding concerns each economy’s own import controls: USTR found that each one had failed to impose and effectively enforce a ban on importing goods made with forced labor. The United States has barred forced-labor goods at its own border since 1930 (19 USC 1307).

The paper trail: USTR’s determinations of June 2, 2026 and its proposed action (91 FR 34272, June 5, 2026); the President’s memorandum of July 23, 2026 (91 FR 47717); USTR’s notice of action of the same date, published July 28, 2026 at 91 FR 47318 (dockets USTR-2026-0265 and -0266); and CBP’s filing instructions, CSMS 69326983, issued July 23.

The duty started four days before the Federal Register date: USTR posted the notice and CBP issued its guidance on July 23. The notice gave an in-transit exemption (heading 9903.05.85) for goods loaded on the final vessel before the July 24 start time and entered before 12:01 a.m. on July 28, 2026. The notice sets no end date. Under 19 USC 2417(c), a Section 301 action ends after four years unless the petitioner or a representative of the benefiting domestic industry asks for it to continue, and USTR can modify or terminate the tariff for an economy earlier. Importers have challenged the action at the Court of International Trade; as of October 23, 2026 the court had not ruled, and the duties were still being collected.

How are the rates set by origin?

The rate depends on what USTR found about each economy’s own import controls. Economies with their own forced-labor import ban, a commitment to adopt one in a trade agreement with the United States, or a partial ban pay 10%. That group is Canada and Mexico; the United Kingdom; India, Pakistan, Bangladesh and Sri Lanka; Cambodia, Indonesia and Malaysia; Jordan; and Argentina, Ecuador, El Salvador, Guatemala, Honduras and Trinidad and Tobago. Every other investigated economy pays 12.5%, China included.

Five partners get a ceiling instead of a flat rate. For the EU and Taiwan, “the sum of the MFN tariff and the section 301 tariff shall be 10 percent”, and for Japan, Korea and Switzerland the sum is 12.5% (memorandum, section 1(a)(ii)). CBP implements this with two headings per partner: one for lines whose column 1 rate already meets the ceiling, which adds nothing, and one for lines below it, which tops the total up.

The arithmetic on a $20,000 entry, with invented column 1 rates: an EU-origin line at 2.5% MFN pays 7.5 percentage points of Section 301 duty, so $500 of MFN duty plus $1,500 of Section 301 duty. An EU line at 12% MFN pays $2,400 of MFN duty and nothing under Section 301. A Japanese line at 4% MFN pays 8.5 points: $800 plus $1,700. A Vietnamese or Chinese line pays 12.5% on top of whatever else applies, $2,500 on this entry.

Which 9903.05 heading applies to each origin?

Find the origin under CBP’s country-of-origin rules, not the country of shipment, and read across. Hong Kong (9903.05.43) and China (9903.05.31) are separate rows. If a general or country-specific exemption covers the product (see the next sections), the exemption heading replaces the country heading. The range below 9903.05.20 is not part of this action: a separate 25% Section 301 action on certain goods of Brazil, announced by USTR on July 15, 2026, has its own Chapter 99 headings.

How do the capped headings work, and are they reported?

The capped headings set a total: column 1 plus Section 301 equals 10% for the EU and Taiwan and 12.5% for Japan, South Korea and Switzerland. A line already at or above the cap takes the first heading of the pair and adds nothing; a line below it takes the second and adds the difference. A Taiwanese product on a duty-free line pays the full 10% under 9903.05.76. A Swiss product on a 14% line pays nothing extra under 9903.05.73.

CBP’s guidance assigns a heading to the “no additional duty” case, so the entry line still carries a Chapter 99 number even when it adds nothing. Leaving 9903.05.38 or 9903.05.73 off makes the line look like an omission. A specific or compound column 1 rate needs an ad valorem equivalent to compare with the cap. The CSMS does not set out how to calculate it, so agree the method with your broker and keep the calculation.

How is the exemption list written?

Each exemption is a Chapter 99 heading tied to a subdivision of U.S. note 52 in subchapter III of Chapter 99. A qualifying good is reported with the exemption heading instead of the country heading. CSMS 69326983 lists eight general exemptions open to every origin:

• 9903.05.85: goods in transit, as described above.
• 9903.05.86: articles in the HTS provisions listed in note 52(b), the main product list.
• 9903.05.87: particular articles described in note 52(c).
• 9903.05.88: civil aircraft, their engines, parts and components, and ground flight simulators, under note 52(d).
• 9903.05.89: articles for pharmaceutical use under note 52(e).
• 9903.05.90: Section 232 goods in the categories of note 52(f), covering metals, vehicles and their parts, wood products and semiconductor articles.
• 9903.05.91 and 9903.05.92: donations to relieve human suffering, and informational materials.

The country-specific exemptions follow, each tied to a subdivision of note 52 from (g) onward. Most countries with a product list have two headings, (i) and (ii), and Guatemala and El Salvador have a third for textiles and apparel.

Japan, South Korea, India, Pakistan, Sri Lanka, Trinidad and Tobago, and the 12.5% economies other than the CAFTA-DR partners, have no country-specific exemption heading; only the general ones apply to them. USTR’s stated logic for the product lists includes raw materials whose tariffing could make domestic supply unavailable and products that cannot be made in the US in sufficient quantity. Goods entered under Chapter 98 are generally outside the duty, but 9802.00.40, .50 and .60 pay on the value of the foreign repair or processing and 9802.00.80 on the value less US components. Antidumping and countervailing duties still apply, and goods admitted to a foreign trade zone must take privileged foreign status.

How are the exemption lists and headings matched to a product?

Matching is done on the 8- or 10-digit HTSUS line that the importer or its broker chooses for the product, and that line starts from the 6-digit HS code. The HTS list CBP attached to CSMS 69326983 names mostly 8-digit subheadings and some 10-digit statistical reporting numbers. A match at six digits therefore proves nothing on its own: two lines under the same 6-digit subheading can sit on opposite sides of a list.

Origin picks the country heading; three other tests run off the classification. A product is exempt under 9903.05.86 only if its own line is on the note 52(b) list. The capped rates for the EU, Taiwan, Japan, Korea and Switzerland compare the ceiling with the column 1 rate, which the HTSUS sets at the 8-digit subheading; move the product to a subheading with a different MFN rate and the Section 301 duty moves with it, or disappears. A good that falls outside Section 232 because of its classification pays the forced-labor duty instead.

When does a classification change flip the heading?

Classification flips the 9903.05 heading when it changes a capped partner’s column 1 rate, an exemption-list match or Section 232 status. Four examples, with invented rates and values:

1. EU-origin housewares, $30,000 entry. On a subheading with a 3% column 1 rate the line takes 9903.05.39 and pays 7 points of Section 301 duty, $2,100. If a review moves the goods to a subheading at 11%, the line takes 9903.05.38 and pays no Section 301 duty, though the column 1 duty rises from $900 to $3,300.
2. Canadian machinery parts, $50,000 entry. With a valid USMCA claim the line reports 9903.05.93 and pays nothing under this action. Entered without the claim, it reports 9903.05.29 and pays $5,000.
3. Chinese steel article. If its line is in a Section 232 annex, the entry reports 9903.05.90 instead of 9903.05.31. If a reclassification puts it outside the annexes, it loses the Section 232 duty and picks up the 12.5% forced-labor duty instead.
4. Guatemalan cotton shirts entered duty-free under CAFTA-DR report 9903.05.95 or the Guatemala textile heading; CBP’s guidance lets a good eligible for both use either. Entered at the column 1 rate without that claim, they report 9903.05.40 and pay 10%, unless they fit Guatemala’s own exemption headings, whose conditions are in note 52(j)(6).

Examples 1 and 3 are classification decisions. TariffWolf returns the 6-digit HS code for each SKU with the legal notes, GRIs and CBP rulings behind it, and your classifier or broker picks the last four digits of the HTSUS line from that documented starting point before checking it against the note 52 lists, the MFN ceiling and the Section 232 annexes. Origin and filing choices stay with the importer and its broker.

Do USMCA and other trade agreements remove the duty?

USMCA removes the duty only for goods entered duty-free under the agreement. Note 52(g) and (h) exempt Canadian goods (9903.05.93) and Mexican goods (9903.05.94) entered free of duty under USMCA. A qualifying Canadian product entered without a USMCA claim pays the 10% under 9903.05.29 on top of the MFN duty, so review unclaimed preferences with your broker while the entry can still be corrected.

CAFTA-DR works the same way, but only for textiles and apparel: goods of Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua entered free of duty under CAFTA-DR are exempt under 9903.05.95. There is no exemption heading for other free trade agreements, so check U.S. note 52 before assuming that a preference claim takes a good outside the duty.

In what order does the 9903.05 number go on the entry line?

CSMS 69326983 sets the order: any Chapter 98 number, then Chapter 99 additional duties with Section 301 first, then Section 232 and Section 201, then other Chapter 99 numbers, and the Chapter 1 to 97 classification last, carrying the entered value. The guidance does not say how a Chinese line with both a China list heading and 9903.05.31 orders the two Section 301 numbers, so confirm that with your broker. How the layers add up is in how US tariffs stack on one HTS line.

How is it different from UFLPA and from the IEEPA tariffs?

The forced-labor Section 301 tariff is a duty paid on goods that are admitted. UFLPA and Section 307 of the Tariff Act of 1930 (19 USC 1307) decide whether goods are admitted at all. Section 307 bars goods made wholly or in part with forced labor, and CBP enforces it with withhold release orders, detentions and exclusions. The Uyghur Forced Labor Prevention Act adds a rebuttable presumption, in effect since June 21, 2022, that goods made in Xinjiang or by entities on the UFLPA Entity List are barred. Paying the 12.5% does nothing about a UFLPA detention, and a shipment with a clean supply chain still pays it.

The tariff is also not an IEEPA duty. The Supreme Court held in February 2026 that IEEPA does not authorize tariffs, and CBP stopped collecting IEEPA duties on February 24, 2026. The very high China rates quoted in 2025, such as 145%, came from IEEPA orders stacked together, not from Section 301. For China, the 12.5% forced-labor duty is added to the existing China Section 301 list duties, which are explained in our guide to the China Section 301 lists.

What mistakes do importers make with this duty?

• Assuming the duty is China-only.
• Using a flat 10% for EU or Taiwanese goods. The duty is the gap between the MFN rate and 10%, and it can be zero.
• Leaving the “no additional duty” heading (9903.05.38, .48, .70, .73 or .75) off a capped partner’s line.
• Checking the note 52 lists against a 6-digit code. The lists name 8- and 10-digit lines.
• Reporting the country heading on a Section 232 good instead of 9903.05.90, or the reverse when the good is outside the 232 annexes.
• Leaving qualifying Canadian or Mexican goods without a USMCA claim.
• Treating Hong Kong and China as one origin.

Related reading

• The Most Reliable Tariff Classification Workflows in 2026
• The Day I Realized the Importance of Correct Tariff Classification
• The Real Cost of a Tariff Code – And How TariffWolf Cuts It by Up to 20x
• How to Classify a Large SKU Catalog with HTS Codes (Without a 6-Month Project)

Frequently asked questions

Is the forced-labor tariff the same thing as UFLPA?

No. UFLPA and 19 USC 1307 decide whether goods may enter, and CBP enforces them by detaining or excluding shipments. The forced-labor Section 301 action is a duty of 10% or 12.5% (as of October 2026) on admitted goods of 60 economies, whatever their supply chain.

What is 9903.05.31?

9903.05.31 is the forced-labor Section 301 heading for products of China. As of October 2026 it adds 12.5% ad valorem for goods entered on or after July 24, 2026, on top of any China Section 301 list duty, unless an exemption heading applies.

Which 9903.05 number do I use for EU goods?

Use 9903.05.38 when the product’s column 1 rate is 10% or more, which adds no duty, and 9903.05.39 when it is under 10%, which tops the total up to 10% as of October 2026. Goods on the EU product list in note 52(j)(2) use 9903.05.97 instead.

Do Canadian and Mexican goods pay the forced-labor tariff?

Only when they are not entered duty-free under USMCA. Canadian goods with a USMCA claim use 9903.05.93 and Mexican goods 9903.05.94; other Canadian and Mexican goods pay the 10% rate as of October 2026.

Was China’s 145% tariff a Section 301 rate?

No. That 2025 figure came from IEEPA duties, which the Supreme Court ruled unauthorized in February 2026 and CBP stopped collecting on February 24, 2026. Chinese goods now pay the China Section 301 list duties where their subheading is listed, plus the 12.5% forced-labor duty.

For each product, the forced-labor duty comes down to two facts: origin under CBP’s rules, and the HTSUS line. Origin picks the row in the table; the 8- or 10-digit line decides the note 52 exemptions, the capped amount and the Section 232 carve-out. Fix those two in your product data, and recheck whenever CBP issues a new Section 301 CSMS.

For the classification half, TariffWolf’s bulk classification service takes your product file through the web interface or the Google Sheets and Excel add-on and returns a documented 6-digit HS code for each SKU, with low-confidence items reviewed by a classifier. Your team or broker sets the last four digits and chooses the 9903.05 heading from there. A sample of EU, Japanese or Taiwanese SKUs, where the column 1 rate decides the heading, is a good first test.

Sources

• USTR, Notice of Actions in the forced-labor Section 301 investigations, 91 FR 47318 (July 28, 2026)
• Presidential memorandum of July 23, 2026, 91 FR 47717
• CBP CSMS 69326983, Section 301 forced labor import duties (July 23, 2026) and its attached HTS list
• USTR fact sheet on the forced-labor Section 301 action (July 2026)
• USTR, Section 301 action on Brazil (July 15, 2026)
• 19 USC 2411 and 19 USC 2417
• CBP forced labor issue paper (June 2024), on 19 USC 1307 and UFLPA enforcement