CBP Issues Guidance on Temporary 10 Percent Section 122 Import Surcharge
CBP has released CSMS #67844987 implementing the February 20, 2026, Presidential Proclamation that imposes a temporary 10 percent ad valorem duty on most imported goods under Section 122 of the Trade Act of 1974.
CBP has released CSMS #67844987 implementing the February 20, 2026, Presidential Proclamation that imposes a temporary 10 percent ad valorem duty on most imported goods under Section 122 of the Trade Act of 1974.
The additional duty applies to articles from all countries entered for consumption, or withdrawn from warehouse for consumption, between 12:01 a.m. EST on February 24, 2026, and 12:01 a.m. EDT on July 24, 2026. The surcharge is reported under HTSUS 9903.03.01, unless a specific exemption under 9903.03.02 through 9903.03.11 applies.
Key Considerations
The scope of this action is broad, but CBP has outlined several exemptions, including certain goods already in transit, specific agricultural and religious use products, qualifying USMCA goods from Canada and Mexico, certain DR-CAFTA textiles and apparel, civil aircraft and related parts, donations, informational materials, and other products identified in U.S. Note 2 to Subchapter III of Chapter 99.
Chapter 98 provisions generally remain available, though certain 9802 provisions remain subject to the additional duty on the value of foreign repairs, alterations, processing, or assembly.
Goods admitted into a Foreign Trade Zone on or after February 24, 2026, must generally be entered in privileged foreign status, effectively locking in the applicable duty rate, including the additional 10 percent.
Drawback Is Available
CBP has confirmed that drawback is available for the additional duties imposed under this Section 122 proclamation.
For companies that export or destroy imported merchandise, this creates a significant recovery opportunity. Eligible exporters may recover up to 99 percent of the Section 122 duties paid, provided statutory and regulatory requirements are met.
Recommended Next Steps for Importers and Exporters
Companies should immediately evaluate:
- Exposure to the 10 percent surcharge across imported SKUs
- Eligibility for Chapter 99 or Chapter 98 exemptions
- Export activity that may support unused or manufacturing drawback claims
- Data readiness for timely drawback filing
How J.M. Rodgers Can Help
J.M. Rodgers is actively assisting clients in assessing Section 122 exposure and quantifying potential duty drawback refunds. Our team reviews import and export data, confirms eligibility, and implements structured drawback programs designed to offset this temporary surcharge.
If your company imports and exports goods during this 150-day window, there may be a meaningful opportunity to recover a substantial portion of these additional duties. Contact J.M. Rodgers to evaluate your drawback position.