Dear Customers, Colleagues, and Friends,
U.S. Customs and Border Protection (CBP) has now issued formal guidance (CSMS #67844987) implementing the President’s February 20, 2026 Proclamation imposing a temporary 10% import surcharge under Section 122 of the Trade Act of 1974.
Effective Date & Duration
The additional 10% ad valorem duty applies to articles that are the product of any country.
Effective for goods entered for consumption (or withdrawn from warehouse) on or after 12:01 a.m. ET on February 24, 2026. The measure is temporary and scheduled to remain in effect through July 24, 2026 (150 days). The new tariff is reported under HTSUS 9903.03.01.
Scope
This surcharge applies broadly to imports from all countries unless specifically exempted. It is separate from, and in addition to, other applicable duties such as: Section 301, Section 232, Section 201. CBP has also issued guidance on the proper HTS reporting sequence, including how Section 122 stacks in relation to other trade remedy duties.
Exemptions
(Full technical details are contained in the CSMS linked below message)
CBP has identified several categories of exempt goods, including:
- Certain in-transit shipments loaded prior to February 24 and entered before February 28. (9903.03.02)
- Articles already covered under specific Section 232 trade remedy categories (similar to previous IEEPA tariffs)
- Certain USMCA-qualifying goods from Canada and Mexico.
- Civil aircraft and related parts.
- Certain agricultural, humanitarian, and informational materials.
- Most Chapter 98 entries (with limited exceptions).
Foreign Trade Zones & Drawback
Goods admitted into a Foreign Trade Zone on or after February 24 must generally be admitted in privileged foreign status if subject to the surcharge. Drawback is available for the Section 122 duty.
What This Means for You
Effective immediately, most imported goods will be subject to an additional 10% duty unless a specific exemption applies, but with the removal of IEEPA tariffs most all countries of origin will see an effective tariff rate reduction.
We will continue to track all detailed guidance and will notify you as further regulatory instructions are released. In the meantime, if you have any questions or would like to discuss potential impacts on your shipments or sourcing strategy, our team at Krenz & Hannan is ready to assist.
Sincerely, Your friends at Krenz and Hannan International