Tariff Update: Termination of IEEPA Duties & Implementation of Section 122

As IEEPA Tariffs End - New Section 122 Surcharge Tariffs Begin

1️⃣ End of IEEPA Duties

CBP has announced, per CSMS #67834313, that IEEPA duties terminate for goods entered for consumption or withdrawn from warehouse for consumption on or after 12:00 a.m. EST on February 24, 2026.

What This Means:

  • IEEPA‑associated HTSUS provisions are now inactive in ACE, and ACE programming has been updated accordingly.

  • No new IEEPA duties will be assessed on entries filed on or after the effective time.

Clarification on Previously‑Assessed Duties

Until formal guidance is issued by CBP, CIT, or the Administration:

  • All IEEPA duties previously assessed on entries filed before February 24, 2026, remain valid, owed, and payable.

  • CBP has emphasized that the Executive Order terminates the collection going forward, not the validity of duties already legally assessed prior to the effective timestamp.

  • Standard CBP collection and billing procedures remain in effect for all entries that liquidated or were subject to IEEPA duties prior to February 24, 2026.

Importers considering protests, CIT actions, or other legal remedies should consult qualified trade counsel to determine the appropriate course of action and ensure all deadlines are met.

2️⃣ Temporary Section 122 Duty – 10%

Under the Presidential Proclamation dated February 20, 2026, a temporary 10% duty is imposed under the Section 122 Trade Act of 1974 under HTSUS 9903.03.01. (Reference: CSMS #67844987: https://content.govdelivery.com/bulletins/gd/USDHSCBP-40b3b7b?utm_source )

These are the legally binding annex lists referenced in the proclamation:

This duty:

• Applies to most imported merchandise unless expressly excluded

• Applies to entries filed on/after 12:01 a.m. ET February 24, 2026

• Remains in effect for 150 days (through July 24, 2026, unless extended by Congress)

3️⃣ Key Exemptions (HTS 9903.03.02–9903.03.11)

Exempt categories include:

• In-transit goods: Goods must be loaded onto the vessel (Ocean vessels eligible only) at the port of loading before 12:01 a.m. ET on Feb. 24, 2026, AND being entered for consumption or withdrawn from warehouse for consumption before 12:01 a.m. ET on Feb. 28, 2026.

• Annex II listed products.

• Certain specified agricultural products such as; Etrogs (0805.90.01), Frozen tropical fruit, nesoi (0811.90.80), Date palm branches, Myrtus, etc. (1404.90.90), Religious baked goods and communion wares (1905.90.10 / 1905.90.90), Acai and coconut water products (2008.99.21; 2009.89.70; 2009.90.40), Acai beverage preparations (2106.90.99), Essential oils (3301.29.51) and religious-use goods.

• Civil aircraft and qualifying parts; Civil aircraft (non-military), Engines, Parts, components, subassemblies, Ground flight simulators & parts.

• Merchandise already subject to Section 232 Section 122 does not stack with Section 232. Only the portion not subject to Section 232 would be dutiable under Section 122.

• USMCA-qualifying goods (meeting origin requirements); Goods that are a product of either Canada, Mexico or the U.S..

• DR-CAFTA for qualifying textiles/apparel.

• Humanitarian donations; Goods donated by U.S. persons intended to relieve human suffering, such as: Food, Clothing, Medicine, etc.

• Informational materials (books, films/video tapes, artwork, photographs, microfilm/microfiche, news wire feeds, etc.)

*Importers must maintain documentation supporting any exclusion claim.

4️⃣ Chapter 98 Treatment

Section 122 does not apply to properly claimed Chapter 98 provisions except:

• 9802.00.40/50/60 – surcharge duty applies to repair/processing value

• 9802.00.80 – surcharge duty applies to foreign assembly value

5️⃣ Foreign Trade Zones

Merchandise subject to Section 122 must be admitted in Privileged Foreign status unless eligible for Domestic status under 19 C.F.R. § 146.43.

Duties are determined based on classification at time of FTZ admission.

6️⃣ Drawback

Section 122 duties are eligible for Drawback, subject to standard statutory and regulatory requirements.

We will update clients as soon as CBP publishes formal instructions regarding refunds, post‑entry actions, or reliquidation procedures.

For assistance or questions, please contact your Janel Group representative. We are here to support you through these changes.