By Karen Derry, U.S. Regulatory Affairs
What are import quotas?
Import quotas regulate the amount of a commodity that may be imported into the United States during a specific period of time. They may be established by legislation, Presidential Proclamation or Executive Orders and be global or specific to designated foreign countries.
Who administers import quotas?
U.S. Customs and Border Protection (CBP) administers the majority of import quotas listed here, but may not change or modify any quota. Other U.S. government agencies determine quota and limits. See commodities administered by other agencies here.
What types of quotas does CBP administer?
- Tariff-rate quotas (TRQ) permit a specified quantity of merchandise to enter at a reduced duty rate during a specific period. A U.S. import permit, a foreign government export permit or certificate of quota eligibility (CQE) may be required.
You can still import quantities in excess of the TRQ, but at a higher duty rate.
- Tariff Preference Levels (TPL) permit eligible textile and apparel goods to enter at a reduced duty rate under certain free trade agreements or other special trade legislation. A foreign government export permit, CQE or VISA is required. CBP administers these restraints like TRQs, allowing quantities imported in excess of the TPL, but at a higher duty rate.
- Absolute quotas permit a strictly limited quantity of specified merchandise to enter the country during specified periods. Once the quantity is reached, no further entries are permitted until the next quota period opens. Currently there are no absolute quotas.
How are entries presented by CBP?
Entries are presented simultaneously across the U.S. so all importers have an equal opportunity to enter at the reduced duty rate. When the amount entered exceeds the quota limit, CBP must allot quota at a prorated amount to each entry.
When are opening days?
Opening days vary by commodity as follows:
- January 1: animal feed, beef, brooms, butter, dairy products, cheese, chocolate, ice cream, infant formula, milk and cream, most TPL, mandarins, olives, tuna
- April 1: peanuts
- September 13: tobacco
- October 1: sugar, mixed condiments, mixes/dough, cocoa powder, sugar blends
Note: specialty sugar has an initial global opening in October with various tranches throughout the year reserved for organic specialty sugar.
How quickly do quotas fill?
Some quotas are known to historically fill each year upon opening, specifically raw, refined and specialty sugar, dairy products and tuna. Quick filling quotas that usually fill within the first few months of opening include Canadian cheddar cheese, animal feed, sugar blends, mixed condiments/seasonings and mandarins.
If a quota does not fill on opening day, it is filled on a ‘first come, first serve’ basis, in order of when presented to CBP. Once a quota reaches a threshold level (generally 95 percent) it is put on hold so the remaining quota may be allocated fairly by CBP.
Where can we check to status of a quota?
CBP maintains lists where you may check the status of a quota:
What happens when goods are entered after the TRQ has been filled?
Goods entered at the over TRQ rate may be subject to Additional Agricultural Safeguards, where for certain countries of origin the duty rate may be increased. Also, NAFTA is not applicable to Canadian origin product entered at an over TRQ rate.
If you have any questions regarding U.S. Import Quotas, contact your Livingston account manager or our regulatory affairs department at usregaffairs@livingstonintl.com.