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On February 23, 2026, U.S. Customs and Border Protection (“CBP”) published a CSMS containing additional guidance on the 10% duties imposed by the President pursuant to Section 122 of the Trade Act of 1974 (“Section 122”) against all imports from all countries (see February 20, 2026 Executive Order “Imposing a Temporary Import Surcharge”).

These Section 122 tariffs will replace the IEEPA tariffs effective February 24, 2026 and will last for a period of 150 days until July 24, 2026.

CBP also issued a CSMS confirming that all goods entering the United States remain ineligible for the de minimis exemption from duty at 19 U.S.C. § 1321(a)(2)(C), unless they are goods covered by the exception at 50 U.S.C. 1702(b), i.e., certain donations, information/informational materials, and accompanied baggage for personal use. This de minimis suspension was carried over from the prior Executive Order under IEEPA (see “Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries”) to the new EO instituting the Section 122 tariffs.     

Below is additional information from the CSMS covering the Section 122 duties. As of this posting, the CSMS confirms the Section 122 duty rate is 10%, although the President has indicated via a post on Truth Social his intent to raise this tariff rate to 15% in the near future.

Applicable HTSUS Codes and Exemptions

The CSMS confirms that imported goods subject to the Section 122 duties will be classified under new Harmonized Tariff Schedule of the United States (“HTSUS”) Subheading 9903.03.01. New subheadings 9903.03.02 through 9903.03.11 will be used to declare various exemptions from the tariffs.

Imports exempt from Section 122 duties include the following:

  • “In transit” goods that were “loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry” into the U.S. before 12:01 a.m. on February 24, 2026, and entered before 12:01 a.m. February 28, 2026.”
  • Qualifying goods under the United States-Mexico-Canada Agreement (“USMCA”) Agreement (“USMCA”).
  • Products detailed in Annex I and Annex II to the proclamation, which mirrors the exemptions that were already in effect for tariffs imposed pursuant to the International Economic Emergency Powers Act (“IEEPA”) tariffs.
  • Product exemptions identified in Annexes I and II include:
  • Certain critical minerals;
  • Energy and energy products;
  • Natural resources and fertilizers that cannot be grown, mined, or otherwise produced in the United States or in sufficient quantities;
  • Certain agricultural products;
  • Pharmaceuticals and pharmaceutical ingredients;
  • Certain electronics;
  • Passenger vehicles, certain light trucks, certain medium- and heavy-duty vehicles, buses, and certain parts;
  • Certain aerospace products; and
  • Textile and apparel articles that are entered free of duty-free under the Dominican Republic-Central America Free Trade Agreement (“DR-CAFTA”).

Foreign Trade Zone

Goods entered into a foreign trade zone on or after 12:01 a.m. eastern standard time (“EST”) on February 24, 2026 will be required to be entered as “privileged foreign status” as defined in 19 C.F.R. § 146.43.

Drawback

Drawback is available for duties imposed pursuant to Section 122.

HTS Sequencing

When reporting multiple HTS Chapter 99 headings or subheadings, importers should follow the below order of reporting:

  • First report the Chapter 99 HTS for Section 301
  • Followed by the Chapter 99 HTS for Section 122
  • Followed by the Chapter 99 HTS for Section 232
  • Followed by the Chapter 99 HTS for Section 201 duties (if applicable)
  • Followed by the Chapter 99 HTS for Section 201 quota (if applicable)

We encourage all clients to be patient as this is an evolving situation and Husch Blackwell’s International Trade and Supply Chain team will continue to monitor and post updates as they become available.