U.S. Customs and Border Protection (CBP) has issued CSMS #67844987, providing operational guidance implementing the Administration’s temporary global tariff action under Section 122 of the Trade Act of 1974, following the President’s February 20, 2026 Proclamation.

 Section 122 Tariff Overview

Under Section 122, the President may impose temporary import measures to address balance‑of‑payments issues. In this case, the proclamation establishes:

• An additional 10% ad valorem duty
• Applicable to imports from all countries, unless specifically exempt
• A limited duration of 150 days

Surcharge Rate

At this time, the surcharge is set at 10%. CBP has not announced any adjustment; however, the rate may be subject to change during the effective period, and importers should monitor future guidance closely.

The tariff applies to merchandise entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EST on February 24, 2026, and remains in effect through 12:01 a.m. EDT on July 24, 2026.

Tariff Reporting and Exemptions

CBP instructs importers to report the Section 122 duty under HTSUS Chapter 99 heading 9903.03.01. While the surcharge applies broadly, the CSMS identifies multiple exemptions under HTSUS 9903.03.02 through 9903.03.11.

Exemptions and Illustrative Examples - CBP has established a series of Chapter 99 exemption provisions (HTSUS 9903.03.02–9903.03.11). These exemptions must be properly claimed at entry and supported by documentation.

• In-Transit Merchandise – HTSUS 9903.03.02 Goods loaded and in transit prior to 12:01 a.m. EST on February 24, 2026, and entered by 12:01 a.m. EST on February 28, 2026, may qualify for exemption. Example: Equipment shipped from Europe on February 20, 2026, and entered on February 26, 2026.
• Preferential Trade Program Goods – HTSUS 9903.03.03 (U.S. Note 2(aa)(ii)) Includes USMCA-qualifying goods, qualifying DR-CAFTA textile and apparel articles, and other goods entered under a special rate of duty.
• Specified Agricultural and Religious Articles – HTSUS 9903.03.04 Includes certain frozen tropical fruits, religious plant materials, and communion wafers and similar baked goods.
• Civil Aircraft and Other Specified Articles Civil aircraft, engines, parts, and components, as well as certain steel, aluminum, vehicle, semiconductor, copper, and wood products, are also excluded.

Importers should not assume that prior IEEPA exclusions or treatment automatically apply. Each exemption must be reviewed independently under the specific Chapter 99 provisions cited in the CSMS and evaluated on a transaction‑by‑transaction basis.

Drawback Availability Confirmed

CBP has confirmed that drawback is available for duties paid under the Section 122 temporary surcharge, preserving potential duty‑recovery opportunities associated with:

• Same Condition Drawback – Imported merchandise exported or destroyed in the same condition
• Rejected Merchandise Drawback – Imported merchandise exported or destroyed after rejection or return
• Manufacturing Drawback – Imported materials or components manufactured into finished goods that are exported

Key Takeaways 

• Do not assume alignment with IEEPA exemptions.
• Expect an additional 10% duty on most imports during the 150‑day period unless a specific Section 122 exemption applies.
• Ensure accurate Chapter 99 reporting in ACE.
• Track Section 122 duties carefully to support potential drawback claims.
• While drawback eligibility is confirmed, all standard drawback requirements, documentation, and recordkeeping obligations remain in effect.
• Monitor CBP communications for rate changes or additional guidance.

How Tradewin Can Help

Section 122 tariffs introduce another layer of complexity during an already dynamic trade environment. Tradewin’s customs and trade compliance professionals can assist with: Entry impact assessments Chapter 99 applicability and exemption analysis Post‑entry corrections, compliance reviews and secure refunds through drawback.

If you have questions about how the Section 122 tariffs affect your imports or drawback programs, please contact your Tradewin advisor.