U.S. Customs: Are Your Textiles Subject to Quota?

U.S. Customs and Border Protection (Customs, CBP) has published a web page titled, “Are My Goods Subject to Quota?” under the Textiles and Quota section of the agency’s web site.

Customs noted on the webpage that import quotas control the amount or volume of various commodities that can be imported into the United States during a specified period of time, adding that quotas are established by legislation and Presidential proclamations issued pursuant to specific legislation and provided for in the Harmonized Tariff Schedule of the United States (HTSUS).

“Absolute quotas strictly limit the quantity of goods that may enter the commerce of the United States for a specific period. Tariff rate quotas permit a specified quantity of imported merchandise to be entered at a reduced rate of duty during the quota period,” Customs stated.

“Once the tariff-rate quota limit is reached, goods may still be entered but at a higher rate of duty. Many free trade agreements and special trade legislation establish tariff preference levels (TPL), which CBP administers like tariff rate quotas.”

Customs stated on the new page that several key factors determine whether a shipment is subject to quota requirements:

• Harmonized Tariff Schedule (HTS) classification (based on merchandise description)
• Textile category number (also known as a “visa” category)
• HTSUS chapter note (for agricultural products)
• Country of origin (where the goods were grown, produced, or manufactured)

To determine the HTS number (classification) of the goods, Customs recommended the following:

• Contacting an Import Specialist at a CBP port of entry.
• Requesting a binding ruling from the Office of Regulations and Rulings, National Commodity Specialist Division.
• Querying the Customs Rulings On-line Search System (CROSS) for binding rulings previously issued for similar merchandise.
• Reviewing the Harmonized Tariff Schedule

“Determine the textile category number (if applicable),” Customs stated.

“The category is a three-digit number listed in parentheses next to the HTS number. Refer to the Daily Textile Status Report for Absolute Quotas, which lists categories subject to quota and fill status (percentage of the quota that is used) by country. Currently absolute quota and/or visa requirements exist for textiles from China, Vietnam, Russia and Ukraine.”

Customs added that if the country of origin and/or the textile category of the goods is not listed on this report, then the merchandise is not subject to absolute quota or visa requirements.

“Determine whether the merchandise qualifies for preferential treatment under a Free Trade Agreement or other special trade program,” Customs stated. “If the merchandise qualifies for preferential treatment, refer to the Commodity Status Report for Tariff Rate Quotas. This weekly report provides information on imported merchandise subject to Tariff Rate Quotas.”

Customs noted that if the merchandise is subject to quota/visa restrictions, there may be additional information for a particular quota listed on Customs’ website in the form of Quota Book Transmittals (QBTs) or Textile Book Transmittals (TBTs).

The “Are My Goods Subject to Quota?” web page, which provides links to the resources listed, can be accessed on-line here.