Canadian-Made Poly Bags Come Off the U.S. 50% Section 338 Tariff List
As of October 30, 2026, polyethylene bags (HTS 3923.21.00) from Canada are no longer subject to the 50% Section 338 duty. With USMCA certification, Friesen poly bags enter the U.S. duty-free.
News release · November 5, 2026
LETHBRIDGE, ALBERTA – Friesen Plastics Inc. today welcomed the removal of polyethylene sacks and bags (HTS 3923.21.00) from the list of Canadian products subject to the United States' 50% additional duty under Section 338 of the Tariff Act of 1930.
A presidential proclamation signed October 23, 2026 narrowed the scope of the Section 338 duty. U.S. Customs and Border Protection confirmed in CSMS #70314289 that, for goods entered on or after 12:01 a.m. Eastern on October 30, 2026, 22 tariff classifications are no longer covered. These include sacks and bags of ethylene polymers (3923.21.00), plastic boxes, cases and crates (3923.10.90) and polypropylene film and sheet (3920.20.00). At the same time, 100 other classifications were added.
For U.S. customers buying Friesen's poly bags, the change removes the largest tariff cost on the product. Bags extruded and converted at Friesen's Lethbridge plant that qualify under the United States-Mexico-Canada Agreement (USMCA) now enter the U.S. with no regular duty, no Section 301 duty and no Section 338 duty.
"Our U.S. customers have been carrying real uncertainty on every order. This change puts Canadian-made poly bags back where they belong: duty-free under USMCA. We're putting USMCA origin statements on every qualifying U.S. invoice so our customers' brokers can clear them at zero."
David Watson, National Sales Manager, Flexible Packaging Division
Section 338 duties can be amended by proclamation at short notice, and USMCA qualification is product-specific. Customers should confirm classification and origin with their customs broker before each new item ships.
Tariffs on Friesen Polyethylene Bags
This applies to polyethylene bags, HS 3923.21 / HTS 3923.21.0095 for most styles, manufactured at our Lethbridge, Alberta facility and shipped to the United States. It reflects U.S. tariff measures in force on November 5, 2026.
| Tariff layer | Filing code | Standard rate | USMCA-qualifying Friesen bags | Without USMCA certification |
|---|---|---|---|---|
| Regular (MFN) duty | 3923.21.0095 | 3% | 0% | 3% |
| Section 301 forced-labor duty (Canada) | 9903.05.29 exemption 9903.05.93 | 10% | 0% exempt | 10% |
| Section 338 Canada duty | 9903.03.14 | 50% | 0% removed Oct 30 | 0% removed Oct 30 |
| Merchandise processing fee | – | 0.3464% | Exempt | Applies |
| Total duty | 0% | 13% + fee |
Friesen will state USMCA origin, including the nine required data elements, on the commercial invoice for every qualifying bag shipment to the U.S. With that certification, the importer's broker can enter the goods with no tariff payable on the bags.
Products Friesen sources from outside Canada, and products classified outside heading 3923 (for example woven polypropylene bags or FIBC bulk bags, which fall under 6305), are assessed on their own origin and classification. We confirm the treatment on each quote.
HTS Codes for Poly Bags and Related Products
Section 338 status of the classifications that cover poly bags, bag film and related packaging, based on the CBP Section 338 list effective October 30, 2026.
| HTSUS | Description | Section 338 status |
|---|---|---|
| 3923.21.00 | Sacks and bags of polymers of ethylene (polyethylene bags, including printed, gusseted, wicketed and zipper bags) | Removed Oct 30, 2026 |
| 3923.29.00 | Sacks and bags of other plastics (for example polypropylene or nylon-based pouches) | Not on the list |
| 3920.10.00 | Polyethylene film, sheeting and roll stock (non-cellular, not reinforced or laminated) | Not on the list |
| 3920.20.00 | Polypropylene film, sheet and strip (non-cellular, not reinforced or laminated) | Removed Oct 30, 2026 |
| 3923.10.90 | Plastic boxes, cases, crates and similar articles | Removed Oct 30, 2026 |
| 6305.32 | Flexible intermediate bulk containers (FIBC / bulk bags) of man-made textile materials | Not on the list |
| 6305.33.00 | Woven sacks and bags of polyethylene or polypropylene strip (poly woven bags) | Still subject to 50% |
Poly woven bags (6305.33.00) remain subject to the 50% Section 338 duty. Woven bags also follow textile rules of origin under USMCA, so their treatment depends on where the fabric is made. We confirm the classification and duty treatment on every quote.
Statistical suffixes under 3923.21.00
The Section 338 removal applies at the 8-digit level, so every polyethylene bag under 3923.21.00 is covered, whichever 10-digit suffix your broker files.
| HTSUS | Bag type |
|---|---|
| 3923.21.0011, .0020, .0030 | Reclosable (zipper or slider) bags |
| 3923.21.0080 | Other bags with no side longer than 75 mm |
| 3923.21.0085 | Retail carrier bags with handles, 6 to 40 inches |
| 3923.21.0095 | All other polyethylene bags (most custom printed and stock poly bags) |
The October 30 change also removed 19 classifications unrelated to bags (plywood, paper packaging, machinery and seaweed) and added 100 others. See Annex I to the proclamation for the full lists.
Frequently Asked Questions
What changed on October 30, 2026?
The U.S. removed 22 Canadian tariff classifications from the 50% Section 338 duty and added 100 others. Polyethylene sacks and bags (HTS 3923.21.00) were among those removed. The change applies to goods entered for consumption, or withdrawn from a warehouse, at or after 12:01 a.m. Eastern on October 30.
What HS / HTS codes cover Friesen poly bags?
Internationally, polyethylene bags fall under HS 3923.21 (sacks and bags of polymers of ethylene). In the U.S. tariff schedule most of our poly bags file under HTS 3923.21.0095; zipper bags file under 3923.21.0011 to 3923.21.0030. Section 338 coverage was set at the 8-digit level, 3923.21.00, so all polyethylene bags under that subheading are off the list. Poly woven bags are classified separately under 6305.33.00 and remain subject to the 50% duty.
Does it matter when my order left Canada?
No. U.S. treatment follows the date the goods are entered at customs, not the ship date. There is no in-transit rule for this change, so a Friesen poly bag shipment that clears U.S. customs on or after October 30 is outside the Section 338 duty.
Do I still pay any tariff on Friesen poly bags?
Not when the bags qualify under USMCA and the shipment carries a USMCA certification of origin. Regular duty, the 10% Section 301 duty on Canadian goods (Chapter 99 heading 9903.05.29, exempted for USMCA goods under 9903.05.93) and the merchandise processing fee are all waived for qualifying goods. Without the certification, expect 3% regular duty, 10% Section 301 duty and the processing fee.
Why doesn't USMCA protect against Section 338?
Section 338 duties (filed under Chapter 99 heading 9903.03.14) apply to covered Canadian goods regardless of USMCA status. That is why being on or off the Section 338 list mattered so much for poly bags. Now that 3923.21.00 is off the list, USMCA once again takes the duty on qualifying bags to zero.
Will I get a refund for Section 338 duty paid before October 30?
The removal is not retroactive. Duty paid on entries before October 30 was owed under the rules in force at the time. If those bags were later exported or destroyed, ask your broker whether duty drawback applies; CBP has said drawback is available for Section 338 duties.
Could poly bags be added back?
Yes. The President can amend Section 338 coverage by proclamation, and the most recent change took effect one week after it was signed. We monitor CBP notices and will tell customers with open quotes and orders if coverage changes again.
What does Friesen need from me?
Confirm the importer of record and your customs broker, ask your broker to enter the bags under USMCA using the certification on our invoice, and share the HTS code your broker uses so it matches our paperwork (usually 3923.21.0095 for our poly bags).
Who pays duties, brokerage and freight?
Unless agreed otherwise in writing, tariffs, duties, import taxes and brokerage fees are the customer's responsibility, and freight is arranged and prepaid by the customer. For qualifying poly bags, the duty portion is currently zero.
Official U.S. Government Sources
- White House proclamation, October 23, 2026
- Proclamation Annex I (Part A lists the 22 removed classifications, including 3923.21.00)
- White House fact sheet, October 2026
- CBP CSMS #70314289, October 29, 2026 (filing guidance)
- CBP Section 338 Canada HTS list, effective October 30, 2026
This page is general information, not legal or customs advice. Confirm classification, origin and entry treatment with a licensed customs broker.
Customer Contact
David Watson, National Sales Manager, Flexible Packaging Division
[email protected] · (800) 661-8024 · (403) 328-0364
2926 - 7th Ave. North, Lethbridge, Alberta T1H 5C6
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