The Section 122 Import Surcharge was imposed under the February 20, 2026 Presidential Proclamation titled “Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems.”
Pursuant to Section 122 of the Trade Act of 1974, the proclamation applies an additional 10% ad valorem duty on most imported articles from every country for a period of 150 days, unless specifically exempt.
The surcharge takes effect at 12:01 a.m. ET on February 24, 2026, and remains in effect through 12:01 a.m. ET on July 24, 2026.
Application of the Section 122 Import Surcharge
Under HTSUS heading 9903.03.01, all articles that are the product of any country and entered for consumption (or withdrawn from warehouse for consumption) during the effective period are subject to an additional 10% ad valorem duty, unless covered by a specific exemption.
The surcharge applies broadly but does not affect goods listed under specific exempt headings (9903.03.02–9903.03.11) or qualifying personal-use baggage.
Key Exemptions from the 10% Import Surcharge
Several categories are exempt from the Section 122 Import Surcharge:
1. Goods in Transit Before February 24
Products loaded onto a vessel and in final transit prior to 12:01 a.m. ET on February 24, 2026, and entered before February 28, 2026.
2. Certain Agricultural Products
Specific agricultural items such as etrogs, frozen tropical fruit, acai products, certain citrus juices, coconut water, and designated religious-use items.
3. Civil Aircraft and Related Parts
Non-military aircraft, engines, components, and flight simulators.
4. Steel, Aluminum, Autos, Semiconductors & Related Products
Includes derivative metal articles, passenger vehicles, light trucks, semiconductor articles, copper products, wood products, and medium/heavy-duty vehicles and parts.
5. USMCA Goods
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Canadian goods entered duty-free under USMCA
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Mexican goods entered duty-free under USMCA
6. DR-CAFTA Textile and Apparel Products
Textiles and apparel from eligible Central American countries that meet rules of origin.
7. Humanitarian Donations
Food, clothing, and medicine intended to relieve human suffering.
8. Informational Materials
Publications, films, digital media, artworks, and other informational content.
Chapter 98 Considerations
Goods properly entered under Chapter 98 provisions are generally exempt from the surcharge, except certain repair, alteration, and assembly provisions (9802 categories), where the surcharge applies to the foreign value component.
Foreign Trade Zone (FTZ) Implications
Articles subject to the Section 122 Import Surcharge that are admitted into a U.S. Foreign Trade Zone on or after February 24 must generally enter under privileged foreign status, unless eligible for domestic status.
Duties will apply at the rate in effect at the time of FTZ admission when the goods are entered for consumption.
Drawback Availability
Drawback is available for duties paid under the Section 122 Import Surcharge, meaning eligible importers may recover duties upon qualifying re-export or substitution.
HTS Reporting Sequence
When filing entry summaries that involve Chapter 98 and/or Chapter 99 classifications, the proper reporting order is:
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Chapter 98 (if applicable)
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Chapter 99 additional duties
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Trade remedies in order:
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Section 301
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Section 122
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Section 232
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Section 201 duties and quotas
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Replacement duties (if applicable)
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Other quotas (if applicable)
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Chapter 1–97 commodity tariff
The entered value must generally be reported under the Chapter 1–97 classification unless Chapter 98 rules apply.
What Businesses Should Do Now
With the Section 122 Import Surcharge in effect:
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Review all imports between February 24 and July 24
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Confirm exemption eligibility
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Monitor ACE updates
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Evaluate drawback opportunities
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Track expiration of the 150-day period
Because Section 122 authority is temporary, further trade policy adjustments may follow.
Frequently Asked Questions
How long does the Section 122 Import Surcharge last?
It remains in effect for 150 days, from February 24 through July 24, 2026.
Does the surcharge apply to all countries?
Yes, unless the goods fall under a listed exemption.
Are Section 232 or Section 301 tariffs affected?
No. Those duties remain separate and continue in effect.
Can importers claim drawback?
Yes, drawback is available for the additional duties imposed under Section 122.