Temporary Import Surcharge Compliance
Track Section 122 separately from IEEPA refund recovery.
Section 122 of the Trade Act of 1974 gives the President temporary balance-of-payments authority to impose import surcharges or quotas under defined statutory limits. For companies affected by the IEEPA tariff decisions, Section 122 is a separate compliance track: current entries, landed-cost calculations, tariff stacking, expiration timing, and accounting treatment must be managed apart from historical IEEPA refund claims.
Section 122 is not the same legal problem as IEEPA.
The IEEPA refund process concerns past tariff collections imposed under an emergency-powers theory rejected by the Supreme Court. Section 122 is different: Congress expressly authorized temporary import surcharges in response to fundamental international payments problems, subject to statutory limits on rate, duration, product coverage, exceptions, and congressional extension.
Practical result: companies should keep two files: one for IEEPA refund recovery, and one for Section 122 current-entry compliance. Do not combine the calculations.
Key compliance facts.
Authority
19 U.S.C. § 2132, commonly referred to as Section 122 of the Trade Act of 1974.
Maximum surcharge
The statute permits a temporary import surcharge of up to 15% ad valorem.
Time limit
The statutory period may not exceed 150 days unless Congress extends it by Act of Congress.
Current proclamation
The 2026 proclamation imposes a 10% temporary import surcharge under Section 122.
A narrower, time-limited tariff authority.
Section 122 authorizes temporary import restrictions when fundamental international payments problems require special import measures. The statute identifies balance-of-payments deficits, imminent and significant depreciation of the dollar, and international balance-of-payments disequilibrium as relevant statutory predicates.
Temporary surcharge
A surcharge in the form of duties, treated as a regular customs duty, subject to the statutory cap.
Temporary quotas
The statute also permits certain temporary import limitations through quotas, subject to statutory limits.
Limited duration
The measure is temporary. Congressional action is required to extend beyond the statutory period.
Separate the refund claim from the current surcharge.
| Issue | IEEPA Refund Recovery | Section 122 Compliance |
|---|---|---|
| Core question | Were past IEEPA tariff collections unlawful and refundable? | How should current temporary surcharge entries be classified, paid, monitored, and priced? |
| Primary record | Historical ACE entries, IEEPA tariff lines, liquidation status, payment proof, and refund calculations. | Current and future entries, HTS treatment, surcharge line items, landed-cost models, and expiration timing. |
| Legal posture | Refund administration, CBP protest, CIT review, or federal-claims analysis. | Current customs compliance under a temporary statutory surcharge authority. |
| Accounting focus | Refund principal, interest, prior deduction/COGS treatment, and customer allocation. | Current inventory cost, landed cost, pricing, margins, customer pass-through, and expiration reserves. |
| Business risk | Missed refund, missed deadline, wrong claimant, or poor documentation. | Incorrect landed costs, overcollection, undercollection, mispriced contracts, or failure to sunset charges. |
Manage Section 122 as a current-entry project.
Identify coverage
Determine which products, HTS classifications, countries, and entry dates are subject to the surcharge.
Update landed cost
Revise landed-cost models, price sheets, purchase orders, surcharge terms, and customer notices.
Track expiration
Calendar the 150-day period, any modification, suspension, termination, or congressional extension.
Reconcile entries
Match ACE entries, broker statements, surcharge payments, customer billing, and accounting treatment.
What your Section 122 file should contain.
Customs File
- Covered HTS classifications
- Entry dates
- Country of origin
- Importer of record
- Broker instructions
- Surcharge line items
- ACE entry data
Commercial File
- Supplier notices
- Purchase orders
- Customer surcharge terms
- Price lists
- Contract clauses
- Pass-through terms
- Customer credit policy
Financial File
- Landed-cost model
- Inventory cost treatment
- COGS treatment
- Customer billing records
- Margin impact analysis
- Accruals and reserves
- Sunset reconciliation
Do not let a temporary surcharge become a permanent pricing error.
Section 122 is time-limited. Companies that pass the surcharge through to customers should track when the surcharge begins, when it ends, whether it is modified, and whether customer invoices need to change immediately after expiration or termination.
Build a sunset protocol now: remove surcharge lines, update price sheets, notify customers, reconcile open orders, and preserve records for audit and customer disputes.
Section 122 compliance is cross-functional.
Trade Compliance
Classify covered products, update broker instructions, monitor ACE entries, and track tariff line treatment.
Finance and Accounting
Update landed cost, inventory treatment, COGS, accruals, reserves, and customer billing reconciliation.
Sales and Customer Teams
Communicate surcharge terms, pass-through treatment, price adjustments, and sunset timing.
Legal and Contracts
Review contract authority, surcharge clauses, force majeure theories, change-in-law clauses, and dispute risk.
Keep Section 122 separate from other tariff programs.
Section 122 entries may also involve ordinary customs duties, Section 232, Section 301, antidumping or countervailing duties, exclusions, special tariff classifications, or other trade programs. Keep the surcharge line separate so your team can reconcile the amount, price impact, and sunset treatment.
Ordinary duty
Base HTS duties should remain separate from temporary surcharge calculations.
Section 232 / 301
Do not confuse other Chapter 99 lines with the Section 122 surcharge.
IEEPA refunds
Historical IEEPA recovery should be tracked in a separate refund file.
Customer pricing
Invoice language should specify which surcharge or duty program is being passed through.
Use a live tracker during the temporary surcharge period.
| Field | Purpose | Responsible Team |
|---|---|---|
| Entry number | Connects surcharge payment to ACE and broker records. | Trade compliance / broker |
| Entry date | Determines whether the entry falls inside the temporary surcharge period. | Trade compliance |
| HTS classification | Identifies product coverage and applicable duty lines. | Trade compliance |
| Surcharge amount | Calculates tariff impact and customer pass-through. | Finance / accounting |
| Customer charged? | Tracks whether surcharge was absorbed, passed through, reserved, or credited. | Sales / finance |
| Contract basis | Links surcharge recovery to customer or supplier contract terms. | Legal / sales |
| Sunset action | Confirms whether price sheets, invoices, or customer notices were updated when the surcharge ends. | Finance / sales / legal |
Frequently asked Section 122 questions.
Is Section 122 the same as IEEPA?
No. IEEPA was used as an emergency-power tariff theory and is the subject of refund litigation. Section 122 is a separate Trade Act authority that expressly addresses temporary import surcharges in response to fundamental international payments problems.
Can the surcharge exceed 10%?
The statute permits up to 15% ad valorem, but the current proclamation must be read on its own terms. Any change should be tracked through formal government action and broker guidance.
Does Section 122 affect IEEPA refund claims?
It should be tracked separately. IEEPA refunds concern past unlawful collections. Section 122 concerns current temporary surcharge compliance. Do not net one against the other without accounting and legal review.
What happens when the 150-day period ends?
Companies should be prepared to remove the surcharge from pricing, invoices, landed-cost models, purchase orders, and customer notices unless the measure is modified, terminated, suspended, or extended by Congress.
Should we pass the surcharge through to customers?
That is a commercial, contractual, and customer-relations decision. Review contract terms, pricing authority, customer notices, tax/accounting treatment, and sunset obligations before implementing a pass-through.
Use these pages with Section 122 compliance.
IEEPA Tariff Refunds
Historical refund recovery for unlawful IEEPA tariff collections.
Open IEEPA page →ACE Portal Guide
Build the entry universe for historical refunds and current surcharge tracking.
Open ACE guide →Temporary Tariffs
Track Section 122 timing, coverage, surcharge treatment, and current compliance actions.
Open temporary tariff page →Need help separating IEEPA refunds from Section 122 compliance?
Federal Claims Advisors can help organize separate workstreams for historical refund recovery, current surcharge compliance, ACE tracking, landed-cost updates, customer pass-through, and tax/accounting treatment.
FederalClaims.us provides public-interest education, business-recovery commentary, claim-intake support, and related coordination resources. This website is not legal, tax, customs, accounting, investment, or financial advice. No attorney-client relationship, tax-advisor relationship, or consulting relationship is formed unless and until a written agreement is signed. Every company’s rights and obligations depend on its own entries, contracts, customs records, tax treatment, deadlines, and governing law.