US Import quotas are strict and are heavily enforced by US Customs. They are a major source of import fines, penalties, and delays for importers who do not understand the quota process and who fail to consider the regulations on the items they are importing. Commodities imported in excess of the current quota often must be re-exported or destroyed at the importer’s expense, or placed in costly warehouses to await the opening of the next quota period. Importers who understand how to work with quota restrictions will be better prepared when it comes time to import their products.

What is an Import Quota?

Import quotas limit the amount of any particular commodity allowed into the United States in a given time period, normally a year. Quota restrictions are generally the result of US political policy, or are designed to benefit manufacturers and suppliers in the United States. Quotas are normally established by Congress or by Presidential proclamation and are provided for in the Harmonized Tariff Schedule.

Types of Quota

There are two types of import quotas, absolute quota and tariff-rate quota. Both place restrictions on certain types of commodities and are enforced by US Customs at the port of entry.

Absolute Quota

Absolute quotas limit the total quantity of goods that may enter the United States within a given time period. Once the absolute quota limit is reached for a commodity, no more will be allowed entry until the next quota period. Absolute quotas are often filled as soon as they are opened or shortly thereafter, so it is important to monitor the quota time periods closely. Any items imported in excess of the absolute quota may be warehoused in a foreign trade zone or bonded warehouse until the opening of the next quota period, or may be destroyed or re-exported.

Tariff-Rate Quota

Tariff-rate quotas do not limit the overall quantity available for import, but instead apply a favorable duty amount to commodities imported within the quota period, and a higher duty rate once the quota has been filled. Tariff-rate quotas differ from absolute quotas in that they affect the duty amount of the items being imported, and not the total quantity. It is important to note that as the tariff-rate quota begins to fill Customs will often request payment of duties at the higher duty rate.

Commodities Restricted

Although incomplete, this list contains many types of commodities that are restricted for import via the quota system.

Textiles

Textiles are a highly regulated quota commodity. Textiles include things like clothing, linens, and other items manufactured from wool, cotton, silk, vegetable and man-made fibers. Quota information on specific types of textiles can be obtained from the Office of Textiles and Apparel.

Monitoring Quotas

The following are weekly commodity status reports for tariff-rate quotas issued by US Customs:

Commodity Status Report for Tariff Rate Quotas
Thu, 24 May 2007 17:36:07 EDT

Quota Weekly Commodity Status Report
Mon, 05 Nov 2007 00:00:00 EST

Quota Weekly Commodity Status Report
Mon, 29 Oct 2007 00:00:00 EDT

Quota Weekly Commodity Status Report
Mon, 22 Oct 2007 00:00:00 EDT

Quota Weekly Commodity Status Report
Mon, 15 Oct 2007 00:00:00 EDT