Temporary Import Surcharge Tracker
Monitor the 10% Section 122 surcharge, exclusions, non-stacking rules, and sunset date.
Section 122 is the temporary replacement surcharge track that runs alongside IEEPA refund recovery. Importers should manage it as a current-entry compliance project: coverage, exclusions, non-stacking, landed-cost updates, customer pass-through, broker instructions, accounting treatment, and expiration controls.
The surcharge is temporary, but the compliance work is immediate.
The February 20, 2026 proclamation imposes a temporary 10% ad valorem import surcharge under Section 122, effective February 24, 2026, for a period of 150 days unless modified, terminated, or extended by Congress. Section 122 permits temporary import surcharges up to 15% ad valorem, but the current proclamation must be tracked on its own terms.
Practical result: companies should treat this as a live tariff-management file. Do not mix Section 122 surcharge accounting with IEEPA refund recovery. Track the surcharge by entry, product, HTS classification, customer, pass-through treatment, and sunset action.
At-a-glance tracker.
10%
Current ad valorem surcharge under the February 2026 proclamation.
15%
Statutory ceiling for a temporary import surcharge under Section 122.
150 Days
Maximum statutory period unless extended by Act of Congress.
Jul 24
Working sunset marker for the current 150-day surcharge period.
Every current entry needs a coverage answer.
The temporary surcharge does not create one simple company-wide answer. Coverage depends on the imported article, HTS classification, country of origin, entry timing, exclusions, Section 232 treatment, and any applicable implementation instructions. The tracker should be built entry-by-entry.
Is the article covered?
Confirm whether the imported product is subject to the temporary surcharge or falls within an exclusion.
Is the entry inside the period?
Confirm entry date, withdrawal date, in-transit facts, and any applicable transition or exemption rule.
Does Section 232 apply?
Review whether Section 232 duties displace the Section 122 surcharge in whole or in part.
Was it passed through?
Track whether the surcharge was absorbed, billed to the customer, reserved, credited, or disputed.
Manage the surcharge from entry to sunset.
Classify
Confirm HTS classification, country of origin, product coverage, exclusion status, and related tariff programs.
Calculate
Apply the surcharge to covered entries and keep it separate from ordinary duty, Section 232, Section 301, and IEEPA recovery.
Communicate
Update suppliers, customers, price sheets, purchase orders, surcharge language, and broker instructions.
Sunset
Prepare to remove or modify the surcharge immediately when the temporary period expires or is changed.
Do not double-count Section 122 with Section 232.
The proclamation states that the Section 122 surcharge does not apply in addition to tariffs imposed under Section 232. For products fully covered by Section 232, no additional Section 122 duty should be added. For products with mixed components or partial coverage, the calculation may require broker and classification review.
Treat Section 232 interaction as a high-risk calculation issue. Keep a written record of how each entry, product, component, and invoice line was treated.
Recommended columns for a Section 122 tracker.
Use a separate tracker for current Section 122 entries. Do not combine the tracker with the historical IEEPA refund file except through cross-reference fields.
| Tracker Field | Purpose | Responsible Team |
|---|---|---|
| Entry number | Connects surcharge payment to ACE and broker records. | Trade compliance / broker |
| Entry date | Determines whether the entry falls within the temporary surcharge period. | Trade compliance |
| HTS classification | Identifies product coverage, exclusions, and interaction with other tariff programs. | Trade compliance / classification team |
| Country of origin | Supports coverage, exemption, trade-agreement, and sourcing review. | Trade compliance |
| Section 122 amount | Calculates the surcharge separately from ordinary duty and other special duties. | Finance / accounting |
| Section 232 interaction | Flags non-stacking issues and partial-coverage calculations. | Trade compliance / broker / legal |
| Customer charged? | Tracks whether the surcharge was absorbed, passed through, reserved, or credited. | Sales / finance |
| Sunset action | Confirms whether prices, invoices, and customer notices were updated when the surcharge ends. | Finance / sales / legal |
Sort products into working compliance categories.
Covered
Product appears subject to the temporary surcharge and should be tracked through ACE, broker billing, and landed cost.
Excluded
Product appears excluded by proclamation or annex. Preserve the exclusion basis and HTS support.
Section 232 overlap
Product may be subject to Section 232 and needs non-stacking analysis before adding Section 122.
Uncertain
Product requires broker, classification, counsel, or CBP guidance before final pricing and accounting treatment.
Controls to put in place during the temporary period.
Trade Compliance Controls
- Confirm HTS classifications.
- Separate Section 122 from other tariff lines.
- Document exclusions and non-stacking decisions.
- Preserve broker instructions.
- Review ACE entries weekly.
Finance Controls
- Update landed-cost models.
- Track surcharge by entry and SKU.
- Review inventory and COGS treatment.
- Track customer pass-through.
- Prepare sunset reconciliation.
Sales and Contract Controls
- Review surcharge authority in contracts.
- Update customer price sheets.
- Use clear invoice language.
- Track credits and disputes.
- Prepare customer notices for expiration.
Build the sunset protocol before the surcharge expires.
A temporary surcharge creates a predictable exit problem. Companies that added surcharge lines to invoices, purchase orders, distributor price sheets, or customer contracts need a controlled process to remove, modify, or reconcile those charges when the surcharge ends or changes.
Price sheet update
Remove or revise surcharge pricing as soon as the legal basis changes.
Customer notice
Notify customers how the change affects open orders, future orders, and prior invoices.
Open-order review
Check purchase orders, Incoterms, ship dates, entry dates, and surcharge allocation.
Accounting reconciliation
Reconcile collections, absorptions, credits, reserves, and inventory treatment.
Customer surcharge language should be precise and temporary.
If the surcharge is passed through, the invoice or contract language should identify the charge, the legal basis, the effective period, and the conditions under which the surcharge will be removed, modified, credited, or reconciled.
Absorbed by importer
The importer books the surcharge into landed cost, inventory, or COGS without separately billing the customer.
Passed through to customer
The customer is charged a separate line item or price adjustment tied to Section 122.
Reserved or reconciled later
The parties defer allocation until entry timing, legal changes, or final surcharge treatment becomes clear.
Track current surcharge treatment separately from historical refunds.
IEEPA refund recovery and Section 122 current-entry compliance should not be netted together casually. The Section 122 surcharge may affect inventory costs, COGS, customer billing, reserves, margins, and later credit or refund treatment.
Inventory
Determine whether the surcharge is capitalized into inventory cost for covered goods.
COGS
Track when and how the surcharge flows through cost of goods sold.
Customer billing
Separate pass-through revenue, credits, disputes, and later adjustments.
Reserves
Consider whether modification, expiration, litigation, or customer credits require reserves.
Frequently asked temporary tariff questions.
Is this the same as the IEEPA tariff refund?
No. IEEPA refund recovery concerns historical duties collected under the invalidated IEEPA theory. Section 122 concerns current temporary surcharge compliance under a separate Trade Act authority.
Does the 10% surcharge automatically become 15%?
No. Section 122 permits a surcharge up to 15%, but the current legal rate is the rate imposed by the operative proclamation unless formally modified.
Do Section 232 products also get charged Section 122?
The proclamation provides that the Section 122 surcharge does not apply in addition to Section 232 tariffs. Products with partial Section 232 coverage may require entry-specific calculation review.
Should we pass the surcharge through to customers?
That depends on contracts, pricing authority, commercial leverage, customer communication, tax treatment, and sunset obligations. Any pass-through should be documented and temporary.
What happens at sunset?
The company should remove, modify, or reconcile surcharge charges according to the legal status at the end of the temporary period, then update price sheets, invoices, purchase orders, customer notices, and accounting records.
Use these pages with the temporary tariff tracker.
Section 122 Compliance Guide
Full compliance guide for temporary surcharge authority, business controls, and current-entry tracking.
Open compliance guide →ACE Portal Guide
Build current and historical entry trackers from ACE and broker data.
Open ACE guide →IEEPA Tariff Refunds
Historical refund recovery for unlawful IEEPA tariff collections.
Open IEEPA page →Tariff Refund Guide
Decision tree for historical refund pathways and documentation.
Open refund guide →Need help tracking the temporary surcharge?
Federal Claims Advisors can help separate Section 122 compliance from IEEPA refund recovery, build current-entry trackers, flag non-stacking issues, prepare sunset controls, and organize tax/accounting review.
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.