Through its Cargo Systems Messaging Service (CSMS), CBP issued CSMS #67844987 confirming that, effective February 24, 2026, a 10% additional ad valorem duty under Section 122 is now in effect on imports from all countries for up to 150 days (through July 24, 2026), unless specifically exempt — though the rate could still be modified during that period.
In-Transit Exemption – Key Details: The CSMS provides very specific parameters for the limited in-transit relief. To qualify, goods must (1) have been loaded onto a vessel at the port of loading and been in transit on the final mode of transport before 12:01 a.m. EST on February 24, 2026, and (2) be entered for consumption or withdrawn from warehouse for consumption before 12:01 a.m. EST on February 28, 2026. Both conditions must be met. The guidance makes clear this is a narrow window and documentation must substantiate eligibility.
Beyond the in-transit provision, the CSMS outlines additional exemptions (including USMCA-qualifying goods, specified Chapter 98 entries, civil aircraft, certain industrial and agricultural products, donations, and informational materials), provides detailed HTS reporting instructions and tariff stacking order with other trade remedies (Sections 301, 232, and 201), explains Foreign Trade Zone treatment (privileged foreign status requirements), and confirms that duty drawback is available for the additional Section 122 duties.
Read the full CSMS here: CSMS # 67844987 - Imposing Temporary Section 122 Duties
Additional Reference: 2.23.26 – Laufer Client Advisory: IEEPA Tariffs: Weekend Updates Round-Up
The Laufer Group team will continue to monitor these changes and provide updates on any significant developments.
Please contact your local customer service, customs brokerage or sales representative for additional information and service options and continue to visit laufer.com for more market Insights.