Temporary Import Surcharge Under Section 122 of Trade Act
1.
Legal Basis:
Issued under Section 122 of the Trade Act of 1974 to address fundamental
international payments problems.
2.
Measure Introduced:
o
Imposes an additional 10% ad valorem duty on
imports from all countries.
o
Temporary measure for 150 days.
3.
Effective Period:
o
Applies to goods entered for consumption from 12:01
a.m. EST, February 24, 2026
o
Through 12:01 a.m. EDT, July 24, 2026
4.
Applicable Tariff Heading:
o
Additional duty imposed under HTSUS 9903.03.01
5.
Scope:
o
Covers articles from any country, unless
specifically exempt.
o
Does not apply to personal-use goods in accompanied
baggage.
Key
Exemptions (HTSUS Headings 9903.03.02–9903.03.11)
6.
In-Transit Goods (9903.03.02):
o
Goods loaded and in transit before February 24,
2026
o
Entered before February 28, 2026
7.
Specified Articles Under U.S. Note 2 (9903.03.03
& 9903.03.04):
o
Includes certain agricultural and religious-use
products
o
Examples: etrogs, acai
products, communion wafers, specific citrus juices, essential oils for
religious purposes
8.
Civil Aircraft (9903.03.05):
o
Civil aircraft, engines, parts, components, and
simulators
o
Documentation required to substantiate intended use
9.
Major Industrial & Strategic Goods
(9903.03.06):
o
Iron and steel articles
o
Aluminum products
o
Passenger vehicles and light trucks
o
Semiconductor articles
o
Semi-finished copper products
o
Wood products
o
Medium- and heavy-duty vehicles and parts
10.
USMCA Goods:
·
Canada-origin goods entered duty-free under USMCA
(9903.03.07)
·
Mexico-origin goods entered duty-free under USMCA
(9903.03.08)
11.
CAFTA-DR Textile & Apparel (9903.03.09):
·
Applies to Costa Rica, Dominican Republic, El
Salvador, Guatemala, Honduras, Nicaragua
12.
Humanitarian Donations (9903.03.10):
·
Food, clothing, medicine intended to relieve human
suffering
13.
Informational Materials (9903.03.11):
·
Publications, films, artworks, CDs, news wire
feeds, etc.
Chapter
98 Provisions
14.
General Rule:
·
Goods properly entered under Chapter 98 are exempt
from the additional duty.
15.
Exceptions:
·
Certain subheadings (e.g., 9802.00.40, 9802.00.50,
9802.00.60, 9802.00.80) remain subject to duties on value added abroad.
Foreign
Trade Zone (FTZ) Rules
16.
Privileged Foreign Status:
·
Goods admitted to FTZ after Feb 24, 2026 must
generally be entered as “privileged foreign status.”
·
Duty rates fixed at time of FTZ admission.
Drawback
17.
Drawback Available:
·
Refund of duties possible under drawback
provisions.
HTS
Reporting Order on Entry Summary
18.
Sequence for Filing:
19.
Chapter 98 (if applicable)
20.
Chapter 99 (additional duties)
21.
Trade remedies in order:
o
Section 301
o
Section 122
o
Section 232
o
Section 201 (duties & quotas)
22.
Replacement or special duties
23.
Other quotas
24.
Chapter 1–97 commodity tariff
25.
Entered Value Reporting:
·
Value generally reported under Chapter 1–97 unless
Chapter 98 rules apply.
Overall
Significance
·
Broad-based temporary surcharge covering nearly all
imports.
·
Designed as a macroeconomic trade measure rather
than a country-specific sanction.
·
Includes multiple sectoral, humanitarian, and trade
agreement-based exemptions.
·
Significant compliance implications for importers,
customs brokers, and FTZ operators.
CSMS # 67844987 – Imposing Temporary Section
122 Duties
The purpose of
this message is to provide guidance regarding the February 20, 2026 Presidential
Proclamation, “Imposing a Temporary Import Surcharge to Address Fundamental International
Payments Problems,” issued pursuant to Section 122 of the Trade Act of 1974 (Section
122), which imposed an additional 10% ad valorem duty on imported articles of every
country for a period of 150 days, unless specifically exempt.
GUIDANCE
APPLICATION OF ADDITIONAL DUTY RATES UNDER SECTION 122
For articles that
are the product of any country entered for consumption, or withdrawn from warehouse
for consumption, on or after 12:01 a.m. eastern standard time on February 24, 2026,
and through 12:01 a.m. eastern daylight time on July 24, 2026, the following HTSUS
classification and additional duty rate apply under heading 9903.03.01:
Except for products
described in headings 9903.03.02–9903.03.11, and other than products for personal
use included in accompanied baggage of persons arriving in the United States, articles
the product of any country, as provided for in subdivision (aa) of U.S. note 2 to
subchapter III of chapter 99 of the HTSUS, will be subject to an additional ad valorem
rate of 10%
Exemptions
The following HTSUS headings apply to products that are exempted from the additional
10% ad valorem duty under heading 9903.03.01:
9903.03.02: Articles the product of any country that (1) were
loaded onto a vessel at the port of loading and in transit on the final mode
of transit prior to entry into the United States, before 12:01 a.m. eastern standard
time on February 24, 2026; and (2) are entered for consumption, or withdrawn
from warehouse for consumption, before 12:01 a.m. eastern standard time on February
28, 2026.
9903.03.03: Articles the
product of any country, as provided for in subdivision (aa)(ii) of U.S. note 2 to
subchapter III of chapter 99 of the HTSUS.
9903.03.04: Articles the
product of any country, as provided for in subdivision (aa)(iii) of U.S. note 2
to subchapter III of chapter 99 of the HTSUS. The agricultural products described
in subdivision (aa)(iii) are:
(1) Etrogs (classifiable in subheading 0805.90.01);
(2) Tropical fruit,
nesoi, frozen, whether or not previously steamed or boiled
(classifiable in subheading 0811.90.80);
(3) Date palm branches,
Myrtus branches or other vegetable material, for religious purposes only (classifiable
in subheading 1404.90.90);
(4) Bread, pastry,
cakes, biscuits and similar baked products nesoi, and
puddings, whether or not containing chocolate, fruit, nuts or confectionery, for
religious purposes only (classifiable in subheading 1905.90.10);
(5) Bakers’ wares,
communion wafers, sealing wafers, rice paper and similar products, nesoi, for religious purposes only (classifiable in subheading
1905.90.90);
(6) Acai (classifiable
in subheading 2008.99.21);
(7) Citrus juice
of any single citrus fruit (other than orange, grapefruit or lime), of a Brix value
not exceeding 20, concentrated, unfermented, except for lemon juice (classifiable
in subheading 2009.31.60);
(8) Coconut water
or juice of acai (classifiable in subheading 2009.89.70);
(9) Coconut water
juice blends, not from concentrate, packaged for retail sale (classifiable in subheading
2009.90.40);
(10) Acai preparations
for the manufacture of beverages (classifiable in subheading 2106.90.99); and
(11) Essential
oils other than those of citrus fruit, nesoi, for religious
purposes only (classifiable in subheading 3301.29.51).
Filers must ensure
that all supporting documentation that substantiates the intended use of the product,
where applicable, is kept on file for recordkeeping purposes.
9903.03.05: Articles of civil
aircraft (all aircraft other than military aircraft); their engines, parts and components;
their other parts, components and subassemblies; and ground flight simulators and
their parts and components of any country, provided for in subdivision (aa)(iv)
of U.S. note 2 to subchapter III of chapter 99 of the HTSUS.
Filers must ensure
that all supporting documentation that substantiates the intended use of the product,
where applicable, is kept on file for recordkeeping purposes.
9903.03.06: Articles of iron
or steel, derivative articles of iron or steel, articles of aluminum,
derivative articles of aluminum, passenger vehicles (sedans,
sport utility vehicles, crossover utility vehicles, minivans and cargo vans) and
light trucks and parts of passenger vehicles and light trucks, semiconductor articles,
semi-finished copper and intensive copper derivative products, wood products, or
medium- and heavy-duty vehicles and buses or medium- and heavy-duty vehicle parts,
of any country, as provided for in subdivision (aa)(v) of U.S. note 2 to subchapter
III of chapter 99 of the HTSUS.
9903.03.07: Articles the
product of Canada, entered free of duty under the United States-Mexico-Canada Agreement.
9903.03.08: Articles the
product of Mexico, entered free of duty under the United States-Mexico-Canada Agreement.
9903.03.09: Articles of textiles
or apparel the product of Costa Rica, the Dominican Republic, El Salvador, Guatemala,
Honduras or Nicaragua that meet the rules of origin under the Dominican Republic-Central
America Free Trade Agreement.
9903.03.10: Articles that are donations, by persons subject
to the jurisdiction of the United States, such as food, clothing and medicine, intended
to be used to relieve human suffering.
9903.03.11: Articles that
are informational materials, including but not limited to publications, films, posters,
phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD
ROMs, artworks and news wire feeds.
Chapter 98
The additional duties imposed by heading 9903.03.01, HTSUS will not apply to goods
for which entry is properly claimed under a provision of Chapter 98 of the HTSUS
pursuant to applicable regulations issued by CBP, and whenever CBP agrees that entry
under such a provision is appropriate, except for goods entered under heading 9802.00.80;
and subheadings 9802.00.40, 9802.00.50, and 9802.00.60, HTSUS. For subheadings 9802.00.40, 9802.00.50, and 9802.00.60,
HTSUS, the additional duties apply to the value of repairs, alterations, or processing
performed, as described in the applicable subheading. For heading 9802.00.80, HTSUS, the additional
duties apply to the value of the article assembled abroad, less the cost or value
of such products of the United States, as described.
Foreign Trade Zone
Articles subject to the ad valorem duty imposed by the February 20, 2026, Proclamation, “Imposing a Temporary Import Surcharge
to Address Fundamental International Payments Problems,” except those that are eligible
for admission to a foreign trade zone under “domestic status” as defined in 19 C.F.R.
§ 146.43, and are admitted into a United States foreign trade zone on or after 12:01
a.m. eastern standard time on February 24, 2026, must be admitted as “privileged
foreign status” as defined in 19 C.F.R. § 146.41. Such articles will be subject, upon entry for
consumption, to the duties imposed by this order and the rates of duty related to
the classification under the applicable HTSUS subheading in effect at the time of
admission into the United States foreign trade zone.
Drawback
Drawback is available with respect to the additional duties
imposed pursuant to the February 20, 2026, Proclamation “Imposing a Temporary Import
Surcharge to Address Fundamental International Payments Problems.”
HTS Sequence
When submitting an entry summary in which a heading or subheading in Chapter 98
and/or 99 is claimed on imported merchandise, the following instructions will apply
for the order of reporting the HTS on an entry summary line.
1. Chapter 98 (if
applicable)
2. Chapter 99 number(s) for additional duties (if applicable)
3. For trade remedies,
o
First report the Chapter 99 HTS for Section 301,
o
Followed by the Chapter 99 HTS for Section 122,
o
Followed by the Chapter 99 HTS for Section 232
o
Followed by the Chapter 99 HTS for Section 201 duties
(if applicable),
o
Followed by the Chapter 99 HTS for Section 201 quota
(if applicable).
4. Chapter 99 number(s)
for REPLACEMENT duty or other use (i.e., Miscellaneous Tariff Bill or other provisions)
5. Chapter 99 number for other quota (not covered by #3)
(if applicable)
6. Chapter 1 to 97 Commodity Tariff
The entered value
of the imported product reported on the entry summary line should be reported on
the Chapter 1-97 HTS classification, unless Chapter 98 reporting provisions require
the entered value to be reported differently.
CBP will provide
additional guidance to the trade community through CSMS messages as appropriate.