The Section 122 surcharge is scheduled to apply through 12:01 a.m. eastern daylight time on July 24, 2026. If it expires without extension or immediate replacement, many covered imports could lose the extra 10% line. But Section 301, Section 232, AD/CVD, MPF, and product-specific duties still remain — and USTR is already moving on July Section 301 actions.
The Section 122 surcharge is one of the most important short-term tariff deadlines on the 2026 import calendar. It is broad, temporary, and easy to misread: it can add 10 percentage points to a shipment today, but it is also limited by a 150-day statutory clock unless Congress extends it.
That makes the July 24 deadline operational, not theoretical. The right question for importers is not only "will the surcharge expire?" It is: which entries should move before July 24, which entries should wait, and which entries need exemption, drawback, or refund documentation now?
Section 122 deadline snapshot
| Item | Importer read |
|---|---|
| Current additional duty | 10% ad valorem for covered articles, reported under HTSUS 9903.03.01 unless an exemption applies. |
| Effective window | Covered goods entered for consumption, or withdrawn from warehouse for consumption, from February 24, 2026 through July 24, 2026. |
| Scheduled sunset | July 24, 2026 at 12:01 a.m. EDT, unless extended by Congress, modified, terminated earlier, or replaced by another tariff action. |
| Primary importer question | Whether the shipment should be accelerated, deferred, warehoused, entered under an exemption, or documented for drawback/refund recovery. |
Calculating… Use the remaining window to review open purchase orders, vessel ETAs, bonded warehouse / FTZ options, and any entries where the extra 10% materially changes margin.
What actually changes on July 24?
If Section 122 expires without an extension or immediate replacement, the extra 10% Section 122 line should stop applying to covered goods entered after the expiration time. That does not mean duty exposure disappears. Existing MFN duties, Section 301 duties, Section 232 duties, AD/CVD, MPF, HMF, and partner-government requirements still apply.
The practical effect depends on your product and origin. A duty-free HTS line that only owed Section 122 could see a large drop. A China-origin product already subject to Section 301 may still carry a heavy landed-cost burden even if the 10% line falls away. A product under Section 232 may already be exempt from Section 122 but face a different tariff stack entirely.
Three scenarios importers should model
| Scenario | What happens | Importer action |
|---|---|---|
| 1. Clean expiration | The 10% Section 122 surcharge stops applying after July 24, while existing MFN / Section 301 / Section 232 / AD-CVD duties remain. | Consider whether delaying entry or withdrawal from warehouse lowers duty on high-value shipments. |
| 2. Replacement tariffs arrive | New or continued Section 301 / Section 232 actions absorb the gap — including USTR's proposed forced-labor Section 301 duties (10%–12.5% on 60 economies, no sunset), which reach far beyond China. | Model both before-and-after rates by HTS and origin; do not assume July 24 means lower landed cost. |
| 3. Litigation/refund path develops | Court, agency, or protest activity creates a refund or preservation path for paid Section 122 duties. | Preserve entry-level Section 122 duty data, liquidation status, protest deadlines, and drawback/export records. |
What to review before the deadline
- Top 20 entries by Section 122 duty paid. Identify which HTS lines and origins actually carry the largest dollar exposure.
- Chapter 99 reporting. Confirm whether 9903.03.01 or an exemption heading from 9903.03.02 through 9903.03.11 was reported correctly.
- Section 232 overlap. Confirm whether a Section 232 exemption applies to the whole article, part of the article, or not at all.
- USMCA / DR-CAFTA / Chapter 98 eligibility. Re-check preferential and special-program claims before assuming the surcharge was owed.
- Open purchase orders and ETAs. Decide whether to accelerate, defer, or route goods through bonded warehouse / FTZ based on actual entry timing.
- Drawback and export matching. CBP guidance says drawback is available for Section 122 duties; exporters should preserve import/export links now.
- Refund and protest preservation. For high-value entries, track liquidation dates and protest windows in case litigation or agency guidance creates recovery paths.
Need a Section 122 exposure review before July 24?
Send us your last three entries, open shipment list, or HTS summary. We will review whether Section 122 is being applied correctly, whether any exemptions or drawback paths are available, and which shipments need timing attention before the deadline.
What could replace Section 122 after July 24?
The Section 122 sunset does not happen in isolation — and nothing replaces the surcharge automatically. But USTR has proposed Section 301 forced-labor duties of 10% and 12.5% — under USTR’s categories, 14 economies fall in the 10% tier and 46 in the 12.5% default tier — covering most major U.S. sourcing countries. Unlike Section 122, which is capped by statute at 15% and roughly 150 days, Section 301 duties carry no expiration date and no rate cap. Post-hearing rebuttal comments in those investigations close July 16, 2026, and USTR can finalize any time after.
The planning consequence: an importer sourcing from Vietnam, India, Thailand, or South Korea could see the temporary 10% surcharge end on July 24 — while a no-sunset 12.5% Section 301 duty is proposed in its place. Model both before treating July 24 as a landed-cost improvement.
For China-origin goods, review our companion guide on whether China Section 301 tariffs are expiring in July 2026. For products sourced from countries named in USTR's forced-labor proposals, see our Section 301 forced-labor tariff guide — 12.5% proposed on 46 economies, rebuttal comments due July 16.
Frequently asked questions
When does the Section 122 surcharge expire?
The scheduled expiration is July 24, 2026 at 12:01 a.m. eastern daylight time. The Federal Register proclamation and CBP implementation guidance describe the surcharge as a temporary 150-day measure beginning February 24, 2026.
What HTS number is used for Section 122?
CBP guidance identifies 9903.03.01 for covered articles and 9903.03.02 through 9903.03.11 for various exemption headings. Entry summaries that also claim Chapter 98 or 99 provisions must follow CBP's sequence instructions.
Can Section 122 be extended without Congress?
Section 122 authorizes temporary import measures for a period not exceeding 150 days unless extended by an act of Congress. Importers should watch for official changes, but they should not build a landed-cost forecast on an assumed extension.
What could replace Section 122 after it expires?
Nothing replaces it automatically. The closest successor exposure is USTR's proposed Section 301 forced-labor action — under USTR's categories, 10% on 14 economies and 12.5% on the other 46 — with no statutory sunset or rate cap. Rebuttal comments close July 16, 2026, and USTR can finalize after that. Model your post–July 24 duty stack with and without that layer.
Does Section 122 apply to USMCA goods?
CBP guidance includes exemption treatment for qualifying goods of Canada and Mexico under USMCA. Importers should confirm that the goods qualify and that the exemption is reported correctly.
Is drawback available for Section 122 duties?
Yes. CBP's Section 122 guidance states that drawback is available with respect to the additional duties imposed under the proclamation. Keep entry, export, destruction, manufacturing, and substitution records organized at the line level.
Should I accelerate shipments before July 24 or wait?
It depends on your HTS code, origin, replacement-tariff risk, customer terms, and warehousing options. Some importers benefit from delaying entry until after expiration; others face higher Section 301 or Section 232 risk if they wait. Model the actual duty stack before moving freight.
Sources: Federal Register, Imposing a Temporary Import Surcharge To Address Fundamental International Payments Problems; White House, February 20, 2026 proclamation; CBP CSMS #67844987, Imposing Temporary Section 122 Duties.
This article is for importer planning and does not constitute legal advice. Tariff treatment depends on the full HTS classification, origin, entry timing, trade-program claims, and CBP guidance in force when the goods enter.