Following another day of trade news, CBP published CSMS guidance regarding the application of a temporary import surcharge per Section 122 of the Trade Act of 1974. The guidance confirms an additional surcharge of 10% on imported articles of every country for a period of 150 days for goods entering for consumption or withdrawn from warehouse for consumption on or after 12:01 AM EST on 24 February 2026 through 12:01 AM EST on 24 July 2026.
While this guidance was just released, we anticipate in the following days official action by the White House increasing the tariff from 10% to 15% as per the Truth Social posted by President Trump on 21 Feb.
A few points to highlight from the released CBP guidance:
- Rate of 10% for now: This guidance codifies the 10% surcharge noted in the “Proclamation “Imposing a Temporary Surcharge to address Fundamental International Payments Problems”.
- In transit exemption: The guidance exempts articles of any country that (1) were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States, before 12:01 AM EST on 24 February 2026; and (2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 AM. EST on 28 February 2026. Our understanding is that products imported within the timeframe for in-transit exemptions would not be subject to Sect. 122 tariffs or IEEPA tariffs. Importers should work with their customs broker to confirm applicable tariffs.
- As per previous CBP guidance, IEEPA tariffs were no longer collected starting 12:01 AM EST on 24 February.
- Confirms USMCA exemptions: The guidance confirms exemptions for USMCA compliant products from Mexico and Canda and products subject to Section 232 tariff action (including steel and aluminum tariff action) are not subject to Sect. 122 tariffs.
- Duty Drawback: Drawback is available.
