Section 122 Stacking with Existing Duties

Section 122 generally does not stack with Section 232 – Section 232 governs in lieu. Section 122 does stack with Section 301 (China-origin gets both). Section 122 stacks with base MFN. AD/CVD orders apply on top of all of these. The exact stack depends on country of origin and HS classification.

This guide covers section 122 stacking with existing duties for SMB importers. Each section walks through the practical implications and the documentation required.

For background, see /section-122-tariff-guide/ and /ieepa-refund-guide/.

Section 122 + Section 232 – generally not stacked

Section 232-covered goods (steel, aluminum, copper, pharma) pay Section 232 in lieu of Section 122. Edge cases exist where finished goods contain Section 232 inputs but are not themselves Section 232 covered.

Section 122 + Section 301 – both apply

China-origin goods that pay Section 301 also pay Section 122 (unless USMCA-qualifying or Annex II excluded). Effective rate often 22-42% on China imports.

Section 122 + base MFN

Section 122 always sits on top of base MFN. The MFN rate is what changes by HS classification; Section 122 is a flat 15% layer.

Section 122 + AD/CVD

AD/CVD orders apply on top of base, Section 232/301, and Section 122. The combined rate can exceed 100%+ on AD/CVD-covered products.

Frequently asked questions

How does this affect my forward planning?

Build the relevant scenario into your 2026 budget. We can run a fixed-fee scenario model for $4,500-$8,500 covering your specific exposure.

What documentation supports this?

Standard CBP Form 7501 entry summary, supplier-provided Certificates of Origin where USMCA-relevant, and origin documentation for substantial transformation claims. We review documentation as part of typical engagements.

Are there court cases I should track?

Yes – see /ieepa-litigation-cit-watch/ for current case status.

When should I engage a consultant?

For exposure above $50,000 annual or filings above $50,000 recoverable. Below those thresholds, self-management with our written guides usually works.

How do I get started?

Book a 15-minute scoping call. We confirm fit and scope before any engagement letter.