Section 122 Filing Guidance
To Our Valued Partners,
CBP has issued CSMS #67844987, providing technical filing guidance for the Temporary Import Surcharge imposed under Section 122 of the Trade Act of 1974.
This CSMS outlines the applicable Chapter 99 HTS classifications, exemption codes, Chapter 98 treatment, Foreign Trade Zone requirements, drawback eligibility, and required HTS reporting sequence.
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Section 122 Additional Duty – HTS Implementation
For articles that are the product of any country and entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on February 24, 2026, and through 12:01 a.m. eastern daylight time on July 24,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 applies:
• HTS 9903.03.01 – Additional 10% ad valorem duty
• Applies to products of any country
• Applies unless specifically exempt under HTS 9903.03.02 through 9903.03.11
• Does not apply to products for personal use included in accompanied baggage
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Effective Date Clarification
The Section 122 HTS exemption provisions apply only to entries entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on February 24, 2026.
These exemption classifications are not retroactive and cannot be applied to entries made prior to that effective date.
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Exemption Headings (Chapter 99)
CBP has assigned the following exemption classifications:
• 9903.03.02 – In-transit goods that were loaded prior to 12:01 a.m. EST February 24, 2026, and entered by 12:01 a.m. EST February 28, 2026
• 9903.03.03 – Articles described in subdivision (aa)(ii) of U.S. Note 2 to Subchapter III of Chapter 99
• 9903.03.04 – Certain specified agricultural products listed in subdivision (aa)(iii), including specific fruit, juice, acai products, coconut water products, certain baked goods for religious purposes, and certain essential oils for religious purposes
• 9903.03.05 – Civil aircraft and related engines, parts, components, subassemblies, and ground flight simulators
• 9903.03.06 – Certain iron and steel articles and derivatives, aluminum and derivatives, passenger vehicles and light trucks and parts, semiconductor articles, semi-finished copper and intensive copper derivative products, wood products, and certain medium- and heavy-duty vehicles and parts
• 9903.03.07 – Articles of Canada entered free of duty under USMCA
• 9903.03.08 – Articles of Mexico entered free of duty under USMCA
• 9903.03.09 – Qualifying textile and apparel articles under DR-CAFTA
• 9903.03.10 – Donations intended to relieve human suffering
• 9903.03.11 – Informational materials, including publications, films, media, and similar items
Where applicable, filers must retain documentation supporting exemption eligibility.
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Chapter 98 Treatment
The additional duty under 9903.03.01 will not apply to goods properly claimed under Chapter 98, except:
• 9802.00.80
• 9802.00.40
• 9802.00.50
• 9802.00.60
For 9802 provisions, the additional duties applies only to the foreign value portion as provided in the applicable subheading.
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Foreign Trade Zone (FTZ) Guidance
Articles subject to the Section 122 duty and admitted into a U.S. Foreign Trade Zone on or after 12:01 a.m. EST February 24, 2026, must be admitted in Privileged Foreign Status, unless eligible for Domestic Status.
Upon entry for consumption, duties will be assessed at the rate in effect at the time of admission into the FTZ.
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Drawback
Drawback is available for the additional duties imposed under the February 20, 2026 Section 122 Proclamation.
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HTS Reporting Sequence
CBP has provided specific entry summary reporting order instructions:
Chapter 98 (if applicable)
Chapter 99 additional duties (if applicable)
Trade remedies in the following order:
• Section 301
• Section 122
• Section 232
• Section 201 duties
• Section 201 quota
Chapter 99 replacement duties (if applicable)
Other Chapter 99 quota numbers (if applicable)
Chapter 1–97 commodity classification
Entered value should be reported on the Chapter 1–97 HTS classification unless Chapter 98 provisions require otherwise.
Current Status
• Section 122 additional duty rate: 10% ad valorem
• Effective: 12:01 a.m. eastern standard time on February 24, 2026
• Scheduled through: 12:01 a.m. eastern daylight time on July 24, 2026, unless suspended, modified, terminated earlier, or extended by Congress
Official Resources:
CSMS #67844987 – Imposing Temporary Section 122 Duties
We will continue monitoring additional CSMS updates and any technical guidance issued by CBP. Call me anytime 833-782-7628 Ext. 1