USTR's final forced-labor Section 301 action took effect July 24, 2026. Imports from 60 economies now face a 10% or 12.5% additional duty, or a capped-total formula, unless an exclusion applies. Importers should check the exact HTS code, origin, Chapter 99 heading, entry time, and Section 232 overlap before filing.
The Office of the United States Trade Representative issued its final action on July 23, 2026, concluding 60 investigations into trading partners' failures to prohibit or effectively enforce prohibitions on imports made with forced labor. The action applies to goods entered for consumption, or withdrawn from warehouse for consumption, at or after 12:01 a.m. Eastern on July 24, 2026.
This is not merely a forced-labor documentation rule. It changes the landed cost of affected imports. For many products, the new duty sits on top of the ordinary HTS rate and other applicable trade remedies. The exact result depends on the origin economy, product classification, exclusions, and whether a capped-total formula applies.
Final rates by country group
| Final treatment | Economies | How the rate works |
|---|---|---|
| 10% additional duty | Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom | 10% is added to the MFN duty, subject to exclusions and product-specific instructions. |
| Total capped at 10% | European Union and Taiwan | The ordinary duty plus the new Section 301 duty is capped at 10%. If the MFN rate is already 10% or more, no additional Section 301 amount is due under this formula. |
| Total capped at 12.5% | Japan, South Korea, and Switzerland | The ordinary duty plus the new Section 301 duty is capped at 12.5%. |
| 12.5% additional duty | All other investigated economies listed in the final notice | 12.5% is added to the MFN duty, subject to exclusions and product-specific instructions. |
A product that was commercially viable before July 24 can become unprofitable on its next entry. The new action covers trading partners responsible for 99.4% of U.S. imports, according to USTR, so this is a broad landed-cost change rather than a narrow enforcement notice.
Which entries can use the in-transit exception?
The final notice provides a narrow exception for goods that were loaded onto a vessel at the port of loading before 12:01 a.m. Eastern on July 24, and that are entered for consumption or withdrawn from warehouse before 12:01 a.m. Eastern on July 28, 2026. Missing either condition can make the new duty apply.
What is excluded?
- Goods already subject to Section 232 duties.
- Product lines in the applicable parts of Annexes I and II for the origin economy of the final notice.
- Informational materials, donations, and accompanied baggage within the notice's stated exceptions.
- Other economy-specific exclusions identified through the applicable Chapter 99 instructions.
Do not rely on a broad label such as “apparel,” “electronics,” or “food.” Eligibility turns on the precise HTS line, origin, and Chapter 99 treatment.
Textile and apparel relief is not automatic
USTR says it intends, when administratively feasible, to establish tariff-rate quotas for qualifying textile and apparel imports from Bangladesh, Cambodia, Indonesia, and Malaysia. The future mechanism would be tied to those economies' purchases of U.S. textiles or cotton and could allow covered goods to enter without the new Section 301 duty. Until a quota mechanism is established and an entry qualifies, the 10% rate applies.
Foreign-trade-zone treatment
Affected goods admitted to a U.S. foreign-trade zone at or after the effective time generally must be admitted in privileged foreign status, unless they are eligible for domestic status. Importers using FTZs should update admission instructions rather than assume the duty can be avoided through later entry timing.
Chapter 98 repairs, processing, and assembly
For entries under HTS 9802.00.40, 9802.00.50, or 9802.00.60, the new Section 301 duty applies to the value of the repairs, alterations, or processing performed abroad. For HTS 9802.00.80, it applies to the assembled article's value less the value of qualifying U.S.-origin components. Importers should not apply the new rate mechanically to the full entered value when a qualifying Chapter 98 provision controls.
Importer checklist for the next entry
- Confirm the ten-digit HTS classification and country of origin.
- Map the correct Chapter 99 heading and check the final notice's annexes.
- Check Section 232 overlap before adding the new duty to a landed-cost model.
- Test the in-transit exception using loading and entry timestamps, not the purchase-order date.
- Update purchase orders, pricing, and broker instructions for entries on or after July 24.
- Review FTZ admissions for privileged foreign status requirements.
- Keep forced-labor supply-chain evidence current. The tariff action and CBP detention regimes are separate, but both increase the cost of weak supplier records.
Check the duty before your next entry files.
Send us the HTS codes, origin countries, shipment dates, and current broker instructions. We will map the applicable country formula, exclusions, Chapter 99 treatment, and landed-cost impact.
- HTS and Chapter 99 mapping
- Country-rate and exclusion review
- Section 232 overlap check
- Entry-timing and FTZ instructions
Frequently asked questions
When did the Section 301 forced-labor tariffs take effect?
The final action applies to goods entered for consumption, or withdrawn from warehouse for consumption, at or after 12:01 a.m. Eastern on July 24, 2026. A narrow in-transit exception applies to goods loaded onto a vessel at the port of loading before that time and entered before 12:01 a.m. Eastern on July 28, 2026.
Which economies face the 10% Section 301 forced-labor duty?
The 10% tier covers Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom, subject to product exclusions and other rules in the final notice.
Which economies use a capped total duty formula?
For the European Union and Taiwan, the MFN duty plus the new Section 301 duty is capped at 10%. For Japan, South Korea, and Switzerland, the combined total is capped at 12.5%. The new duty therefore varies by the product's MFN tariff rate.
What products are excluded from the final action?
The notice excludes informational materials, donations, accompanied baggage, goods already subject to Section 232 duties, and product lines in the applicable parts of Annexes I and II for the origin economy. Importers must confirm the exact HTS code and Chapter 99 instruction rather than relying on a broad product description.
Do the final duties replace the expired Section 122 surcharge?
No. The Section 301 action is a separate trade remedy under a different legal authority. It took effect when the temporary Section 122 surcharge expired, but country rates, capped formulas, and product exclusions determine whether a particular entry owes the new duty.
What should importers check first?
Confirm the product's ten-digit HTS classification, country of origin, applicable Chapter 99 heading, product exclusion status, Section 232 overlap, shipment timing, and foreign-trade-zone status. Then update landed-cost models and broker instructions before the next entry.
The bottom line
The planning period is over: the action is effective. Importers should stop modeling the June proposal and start using the final country formulas, exclusions, in-transit rule, and FTZ instructions. The fastest operational check is entry-level: exact HTS code, origin, Chapter 99 heading, entry date, and any Section 232 overlap.
This action is separate from UFLPA detentions and CBP Withhold Release Orders. For the supply-chain evidence needed when goods are detained, see our forced-labor and UFLPA guide. For broader duty layering, see the Tariff Stacking Report.
Primary sources: USTR, “USTR Takes Action in Forced Labor Section 301 Investigations,” July 23, 2026; USTR Fact Sheet, July 23, 2026; USTR Notice of Actions, dockets USTR-2026-0265 and USTR-2026-0266, July 23, 2026. Confirm the current HTSUS Chapter 99 instructions and exact product line before filing. This article is operational guidance for importers and is not legal advice.