President imposes a 10% Section 122 import surcharge on nearly all U.S. imports for 150 days, with extensive HTSUS/Ch.99 carve‑outs.

REGULATORY BRIEFING – TEMPORARY 10% SECTION 122 IMPORT SURCHARGE

1. What changed

• Action: Presidential Proclamation under Section 122 of the Trade Act of 1974 (19 U.S.C. 2132) imposes a temporary import surcharge.
• Measure: A 10% ad valorem surcharge on most imported articles, implemented as a Chapter 99 duty via new heading 9903.03.01.
• Legal implementation: HTSUS modified in Subchapter III of Chapter 99 per Annex I.
• Duration: 150 days, unless earlier suspended/terminated or extended by Congress.

2. Effective dates and timing

• Surcharge start: Applies to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EST, February 24, 2026.
• Scheduled end: Through 12:01 a.m. EDT, July 24, 2026.
• In‑transit relief (no surcharge):
• HTSUS 9903.03.02 covers articles that:

1) Were loaded on the vessel and in transit on the final mode of transit before 12:01 a.m. EST, February 24, 2026; and

2) Are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. EST, February 28, 2026.

3. Core surcharge rule

• General rule (9903.03.01):
• "Except for products described in headings 9903.03.02–9903.03.11, articles the product of any country… The duty provided in the applicable subheading + 10%."
• The 10% is:
• In addition to: normal Column 1 general duty, any Column 1 Special duty (if applicable), and any other additional duties (e.g., Section 301, ADD/CVD, other Ch. 99) unless specifically carved out.
• Treated as a regular customs duty.
• Interaction with Section 232:
• The surcharge does NOT apply in addition to Section 232 tariffs on the same portion of the import.
• If a Section 232 duty applies to part of an import, the 10% applies only to the portion not subject to Section 232.

4. Scope and key exclusions

4.1. Broad coverage

• By default, all products of any country are subject to the 10% surcharge via 9903.03.01, except:
• Goods for personal use in accompanied baggage.
• Goods properly entered under most Chapter 98 provisions (with important exceptions noted below).
• Goods specifically excluded in U.S. Note 2(aa)(ii)–(viii) to Subchapter III of Chapter 99 and headings 9903.03.02–9903.03.11.

4.2. Chapter 98 interaction

• Surcharge does NOT apply to goods properly entered under Chapter 98, except:
• 9802.00.40, 9802.00.50, 9802.00.60, 9802.00.80:
• 9802.00.40/.50/.60: 10% applies to the value of repairs, alterations, or processing performed abroad.
• 9802.00.80: 10% applies to the value of the article assembled abroad, less the cost or value of U.S. components.
• All other eligible Chapter 98 entries (per CBP agreement) are exempt from the 10%.

4.3. In‑transit goods (9903.03.02)

• Articles meeting the two‑part in‑transit test (loaded and in final transit before 24 Feb 2026; entered by 28 Feb 2026) are exempt from the 10%.

4.4. Large HTSUS carve‑out list (9903.03.03 and Annex II)

• Heading 9903.03.03 exempts articles classifiable in a very extensive list of HTSUS subheadings (see Annex I Note 2(aa)(ii) and Annex II).
• These cover, among others:
• Beef and bovine offal (0201, 0202, 0206, 0210, 1602.50 series).
• Numerous fruits and vegetables including tomatoes (0702), oranges (0805.10.00), limes (0805.50), avocados (0804.40.00), bananas/plantains, papayas, pineapples, mangoes, etc.
• Coffee and tea (0901–0902), spices (0903–0910).
• Various grains and starches (1003, 1008, 1106, 1108, 1203, 1207).
• A wide range of critical minerals, ores, and metals (2504, 2510, 2511, 2519, 2529, 2530, 2602–2620, 2701–2716, 2801–2853, 7202, 7204, 7401–7405, 7501–7504, 7901–7907, 8001–8007, 8101–8112, etc.).
• Energy and energy products: coal, petroleum oils, fuels, gas, waxes, bitumen, electrical energy (2701–2716, 2716.00.00).
• Fertilizers (3101–3105 series).
• Many pharmaceutical ingredients and finished medicaments (2918–2942, 3001–3006).
• Certain electronics and ICT products (e.g., 8471.x, 8473.30.x, 8486.x, 8505.11.0070, 8517.x, 8523.51.00, 8524.x, 8541.x, 8542.x).
• Numerous semiconductor‑related chemicals and materials.
• For any HTS in this list, the 10% surcharge does not apply; only the normal duty and any other applicable additional duties apply.

4.5. Special religious/other food carve‑outs (9903.03.04)

• Exempt from 10% when properly classified and meeting description:
• 0805.90.01 – Etrogs.
• 0811.90.80 – Tropical fruit, nesoi, frozen (as described).
• 1404.90.90 – Date palm branches, Myrtus branches, or other vegetable material for religious purposes only.
• 1905.90.10 – Certain baked products for religious purposes only.
• 1905.90.90 – Communion wafers, sealing wafers, etc., for religious purposes only.
• 2008.99.21 – Acai.
• 2009.31.60 – Certain citrus juice (non‑orange/grapefruit/lime) except lemon juice.
• 2009.89.70 – Coconut water or juice of acai.
• 2009.90.40 – Coconut water juice blends, not from concentrate, retail.
• 2106.90.99 – Acai preparations for beverage manufacture.
• 3301.29.51 – Certain essential oils for religious purposes only.

4.6. Civil aircraft and parts (9903.03.05)

• Exempt from 10% if:
• Meet General Note 6 (civil aircraft) criteria; and
• Are classifiable in the long list of HTSUS provisions in Note 2(aa)(iv) (e.g., 3917.x, 4008.29.20, 4009.x, 4011.30.00, 4012.13.00, 4016.x, 6812.x, 6813.x, 7007.21.11, 7304–7306 series, 7322, 7324, 7326.20.00, 7608.x, 8302.x, 8307.x, 8407.10.00, 8411.x, 8412.x, 8413.x, 8414.x, 8415.x, 8418.x, 8419.x, 8421.x, 8424–8428, 8443.x, 8479.x, 8483.x, 8484.x, 8801, 8802.x, 8805.29.00, 8806.x, 8807.x, 9001–9002, 9014.x, 9020, 9025–9026, 9029, 9030–9033, 9104, 9109, 9401.10.x, 9403.20.00, 9403.70.x, 9405.x, 9620.00.x, 9802.00.40/.50/.60/.80, 9818.00.05/.07).

4.7. Section 232/vehicle/semiconductor/wood/copper carve‑outs (9903.03.06)

• Heading 9903.03.06 exempts from the 10% surcharge:
• Iron or steel products under 9903.81.87, .81.88, .81.94, .81.95 (10% applies only to non‑steel content of those products).
• Derivative iron/steel products under 9903.81.89–.81.93, .81.96–.81.99 (10% applies only to non‑steel content; steel content exempt).
• Aluminum products under 9903.85.02, .85.12 (10% applies only to non‑aluminum content).
• Derivative aluminum products under 9903.85.04, .85.07–.85.09, .85.13–.85.15 (10% applies only to non‑aluminum content).
• Passenger vehicles and light trucks under 9903.94.01–.94.03, .94.31, .94.40–.94.41, .94.50–.94.51, .94.60–.94.61.
• Passenger/light vehicle parts under 9903.94.05–.94.07, .94.32–.94.33, .94.42–.94.45, .94.52–.94.55, .94.62–.94.65, and certain parts subject to import adjustment offsets under prior proclamations.
• Semi‑finished copper and intensive copper derivative products under 9903.78.01 (10% applies only to non‑copper content).
• Wood products under 9903.76.01–.76.03, .76.20–.76.23.
• Medium‑ and heavy‑duty vehicles and buses under 9903.74.01–.74.03, .74.06.
• Medium‑ and heavy‑duty vehicle parts under 9903.74.08–.74.10 and certain offset‑subject parts.
• Semiconductor articles under 9903.79.01.

4.8. USMCA and DR‑CAFTA duty‑free goods

• Canada (9903.03.07):
• 10% surcharge does NOT apply to products of Canada entered free of duty under USMCA (General Note 11), including related Ch. 98 Subchapter XXIII and Ch. 99 Subchapter XXII provisions, regardless of whether the Special rate shows "S" or "S+".
• Mexico (9903.03.08):
• Same rule for products of Mexico entered free of duty under USMCA.
• DR‑CAFTA textiles/apparel (9903.03.09):
• 10% surcharge does NOT apply to textile or apparel goods (as defined in GN 29(d)(v)) that are products of Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, or Nicaragua and entered free of duty under DR‑CAFTA (including relevant Ch. 98 Subchapter XXII provisions).

4.9. Donations, information materials, baggage

• 9903.03.10 – Donations:
• Exempts articles that are donations by persons subject to U.S. jurisdiction (e.g., food, clothing, medicine) intended to relieve human suffering.
• 9903.03.11 – Informational materials:
• Exempts informational materials (publications, films, posters, records, photographs, microforms, tapes, CDs, artworks, news wire feeds, etc.).
• Personal accompanied baggage:
• Products for personal use in accompanied baggage are excluded from the 10% per Note 2(aa)(i).

5. Foreign Trade Zones (FTZ) treatment

• Any article subject to the surcharge (other than those eligible for admission under "domestic status" per 19 CFR 146.43) that is admitted into a U.S. FTZ on or after February 24, 2026 must be admitted in "privileged foreign status" (19 CFR 146.41).
• Upon entry for consumption, the 10% applies based on the HTSUS classification of the privileged foreign status merchandise.

6. Rate changes – how to calculate

• For covered goods (no applicable exclusion):
• New total duty = (Base duty rate under Chapters 1–97) + (10% ad valorem under 9903.03.01) + (any other applicable additional duties: e.g., Section 301, ADD/CVD, other Ch. 99) + fees (MPF, HMF, etc.).
• For goods with Section 232 duties:
• Apply Section 232 duty to the covered portion.
• Apply 10% surcharge only to the portion not covered by Section 232.
• For goods under 9802.00.40/.50/.60/.80:
• Apply 10% only to the foreign value component as specified in Note 2(aa)(i).

7. Required actions for importers, brokers, and compliance teams

7.1. Classification and HTS/Chapter 99 coding

• Immediately:
• Identify all active/imported SKUs and map to:
• Whether they fall under any exempt HTSUS lines listed in Annex I Note 2(aa)(ii) and Annex II.
• Whether they qualify as civil aircraft/parts under GN 6 and the 9903.03.05 list.
• Whether they are covered by 9903.03.06 (iron/steel, aluminum, vehicles, semiconductors, wood, copper, medium/heavy vehicles and parts).
• Whether they are USMCA duty‑free goods from Canada or Mexico, or DR‑CAFTA duty‑free textiles/apparel.
• Update broker instructions and internal classification databases to:
• Add 9903.03.01 to all covered entries.
• Use the correct alternative 9903.03.0x heading (e.g., 9903.03.03, .03.04, .03.05, .03.06, .03.07, .03.08, .03.09, .03.10, .03.11) where an exclusion applies.

7.2. Entry and documentation

• For entries on/after February 24, 2026:
• Ensure each line item includes the appropriate Chapter 99 code(s) in the correct sequence.
• For in‑transit claims under 9903.03.02, retain and provide documentation of:
• Date/time of loading at foreign port.
• Evidence of being in final transit before 12:01 a.m. EST, Feb 24, 2026.
• Entry date/time before 12:01 a.m. EST, Feb 28, 2026.
• For USMCA/DR‑CAFTA claims:
• Confirm origin qualification and ensure duty‑free treatment is properly claimed to avoid unnecessary 10% surcharge.

7.3. FTZ operations

• Review all FTZ admissions on or after Feb 24, 2026:
• Ensure subject merchandise is admitted in privileged foreign status.
• Adjust zone procedures and inventory systems to track surcharge‑subject vs. exempt merchandise.

7.4. Contracts, pricing, and cost impact

• Review purchase and sales contracts for:
• Duty‑paid vs. duty‑unpaid terms.
• Who bears responsibility for new or increased duties.
• Recalculate landed cost for all affected imports, factoring in the 10% surcharge.
• Consider sourcing shifts to:
• USMCA duty‑free Canada/Mexico where possible.
• HTS lines specifically exempted in Annex II.

7.5. Systems and controls

• Update ERP, trade compliance, and broker systems to:
• Automatically flag HTS lines requiring 9903.03.01.
• Automatically suppress 9903.03.01 when an applicable 9903.03.0x exclusion applies.
• Implement QA checks on entries filed between Feb 24 and July 24, 2026 to ensure correct surcharge application.

7.6. Monitoring and future changes

• The U.S. Trade Representative, USITC Chair, and CBP Commissioner may:
• Recommend further HTSUS modifications.
• Issue technical corrections to Annexes I and II via Federal Register.
• Compliance teams should:
• Monitor Federal Register notices for any updates to 9903.03.0x headings or U.S. Note 2(aa).
• Track any Congressional action that could extend or modify the surcharge beyond July 24, 2026.

8. Risk areas and common pitfalls

• Misclassification leading to:
• Failure to claim an available exclusion (overpayment).
• Incorrect exclusion claim (underpayment and potential penalties).
• Overlooking Chapter 98/9802 special rules where 10% applies only to foreign value.
• Incorrect treatment of Section 232‑covered products where the 10% should not be double‑applied.
• FTZ admissions not in privileged foreign status, causing later duty calculation issues.

9. Key references

• Proclamation text (Section 122 surcharge):
• White House: https://www.whitehouse.gov (search "2026 Section 122 import surcharge").
• Annex I – HTSUS Chapter 99 modifications and U.S. Note 2(aa):
• https://www.whitehouse.gov/wp-content/uploads/2026/02/2026Section122.prc_.ANNEX1_.FINAL_.pdf
• Annex II – Detailed HTSUS exclusion list and scope notes:
• https://www.whitehouse.gov/wp-content/uploads/2026/02/2026Section122.prc_.ANNEX2_.Final_.pdf

Action priority: Immediate review of all active HTS classifications, update of broker instructions and systems for 9903.03.01 and related exclusions, and recalculation of landed costs for entries on or after February 24, 2026 through July 24, 2026.