Section 122 drawback, the temporary surcharge.

Section 122 duties are drawback eligible

Two features make the surcharge recoverable. First, the proclamation contains no drawback exclusion, unlike the Section 232 and IEEPA actions that expressly bar it. Second, it directs that the surcharge shall be treated as a regular customs duty. Regular customs duties are recoverable under 19 U.S.C. 1313, so a company paying the 10% surcharge on goods that are later exported can recover 99% of it, including by substitution at the 8-digit HTS or by direct identification.

Because the surcharge is temporary, the window to pair imports with exports is compressed. Entries made during the surcharge period should be identified now so the recovery is captured before the goods, and the exports that match them, move out of reach.

Excepted categories

• Energy and energy products.
• Certain critical minerals, and metals used in currency and bullion.
• Natural resources and fertilizers not producible domestically in sufficient quantity.
• Certain agricultural products, including beef, tomatoes and oranges.
• Pharmaceuticals and pharmaceutical ingredients.
• Certain electronics, and passenger vehicles, certain trucks, buses and parts.
• Certain aerospace products.
• Goods already subject to Section 232 restrictions.
• Goods entered duty-free under USMCA (HTSUS general note 11) or CAFTA-DR textiles and apparel.
• Information materials, donations and accompanied baggage.

Because the excepted and covered HTS enumerations live in the proclamation's Annexes, and a classification can fall on either side, we confirm surcharge exposure and drawback recovery for your specific products as part of an assessment.