|
New Section 122 Tariff: Temporary Import Surcharge of 10%
CSMS 67844987 was released which confirmed February 20, 2026, Presidential Proclamation, Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems, issued under Section 122 of the Trade Act of 1974. The proclamation imposes an additional 10% ad valorem duty on most imported articles from all countries for a period of 150 days, unless specifically exempt. It is possible that the 10% tariff rate may be raised to 15% at some point based on statements made by President Trump.
Application of Additional Duty Rates Under Section 122
The 10% tariff will apply on articles that are the product of any country entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on February 24, 2026, and through 12:01 a.m. eastern daylight time on July 24,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.
Exemptions
In-Transit Exclusion: Articles the product 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United States, before 12:01 a.m. eastern standard time on February 24, 2026; and (2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern standard time on February 28, 2026.
Section 232: An exclusion is available for certain articles and parts subject to Section 232 measures, including Section 232 on steel, aluminum, vehicles and related parts, semiconductors, copper products, wood products, and certain heavy-duty vehicles and parts. Importers should confirm whether their classifications trigger additional duties and whether an exclusion applies.
If Section 232 duties apply to only part of an import, the new tariff will apply only to the non-Section 232 portion and not to the portion already subject to Section 232 tariffs.
USMCA and DR-CAFTA: Exclusions also apply to qualifying goods from Canada and Mexico entered duty-free under USMCA, as well as qualifying textile and apparel goods from Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua under CAFTA-DR.
Importers should review product classifications and origin qualifications to ensure proper reporting and compliance.
Drawback:
Drawback is available for the Section 122 tariff.
IEEPA Tariffs No Longer Collected After February 24, 2026, at 12:01am ET
As reflected in CSMS 67834313, duties imposed pursuant to IEEPA will no longer be in effect and will no longer be collected for goods entered for consumption or withdrawn from warehouse for consumption, on or after 12:00 a.m. eastern time on February 24, 2026.
What Reports Should I Be Pulling in ACE as I Await Instructions About Potential IEEPA Refunds?
The Automated Commercial Environment, ACE, is a powerful reporting platform that provides real-time visibility into entry summaries, liquidation status, tariff details, statements, and compliance data maintained by U.S. Customs and Border Protection. It allows importers and brokers to reconcile filings against CBP records, monitor post-entry activity, and proactively manage compliance risk using the same data reflected in CBP’s system of record. See below for some of our favorite reports — reach out to the Compliance Team at cmp@nkinc.com for more information or assistance!
In part 2 you will learn about:
Liquidation:
Determining How Much IEEPA Tariffs Were Collected
Entry Summary Details – High level snapshot for financials
Edited by Robert Benedict
Unicorn Solar is watching, studying, and working with companies innovating within the solar and decarbonization space.
If you have any questions or would like to work with a team of professionals who can help you achieve your success, please don't hesitate to contact Robert, Karlita, or Jayde for more information. Also, if you have supply-related questions, please don't hesitate to contact Sarahy. For BESS, inverter, and transformer questions, please reach out to George.
Even in the coldest months, all you need is sun and the right equipment to capture the energy from the sun and turn it into electricity.
| 
