Tuesday, September 1, 2009

New on CBP Website: “Are My Goods Subject to Quota?”

(CBP)

Import quotas control the amount or volume of various commodities that can be imported into the United States during a specified period of time. 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).

There are three types of quotas: absolute, tariff-rate, and tariff preference level. Absolute quotas strictly limit the quantity of goods that may enter the commerce of the United States for a specific period. Currently, no goods are subject to absolute quota restrictions. Tariff Rate Quotas (TRQs) permit a specified quantity of imported merchandise to be entered at a reduced rate of duty during the quota period. Once the tariff-rate quota limit is reached, goods may still be entered but at a higher rate of duty. Many Free Trade Agreements (FTAs) and other special trade legislation establish Tariff Preference Levels (TPLs) that Customs and Border Protection (CBP) administers like tariff rate quotas.

Click here for information to assist in determining whether merchandise is subject to quota restrictions as well as links to relevant references.