Import Quotas in International Shipping

In international shipping imports quotas are the set of numbers for specific items that would be allowed to come to the United States.

Import Quotas are always set by international shipping COMMODITY (1) and COUNTRY (2).

Import Quotas can encourage or discourage the amount of internationally shipping goods that importing in the USA.

Two types of import quotas in international shipping:

  1. Absolute import quota (Example: Says that it is allowed for import from China 100,000 t-shirts. That' it. No more);
  2. Tariff quota in international shipping (Example: Says that it is allowed for import from China 100,000 t-shirts PER YEAR duty free. Thereafter duty is $.5 per t-shirt).

Importer can submit an import quota entry on the day when the quota is opened. Either:

  1. Submit the entry and entry summary to the customs (if there are clerical errors, etc then the entry has no legal status) or;
  2. For preliminary review (no legal status).

Import Quota entry in international shipping can be submitted trough ABI (Automated Broker Interface) or ACH (Automated Cleaners House).

QUOTA PRIORITY - FIRST COME FIRST SERVED

However, everything in the entry must be in proper order. I.e. Entry and Entry Summary with duty check attached in proper form. No clerical errors etc. It is called TIME-OF-FILING: When CF7501 is filed in proper international shipping form.

There are cases when import quota opens and closes in one minute. It officially opened at 12 noon Eastern Standard time on the designated effective date. See on the example:

Import Quota for internationally shipping Chinese t-shirt import is 1,000,000 t-shirts.
20 Chinese companies bought entries in proper form for 2,000,000 t-shirts.
Then import quota opened and closed instantly.

Customs then PRORATES ENTRIES:
2,000,000 requires
1,000,000 allowed by the quota
it then prorates for 50% for all those companies on EQUAL PERCENTAGE. No matter who and how many international shipping product is importing.

Customs takes 7501, changes it to those quantity by prorated 50% and gives it back to importers.
Importer has 5 WORKING DAYS to change (retype) the 7501 to the proper number.
- If they are late, they then lose the import quota status completely.
- If it is approved then importer must take physical possession on the international shipping merchandise WITHIN 15 WORKING DAYS.

Over-quota situations in international shipping:

Let's say importer brought to customs a quantity of international shipping goods that exceed the import quota. (Brought 200,000 items, but quota allows for import 20,000 only), then:

A. If it is ABSOLUTE IMPORT QUOTA (no other choice):

B. If it is TARIFF RATE IMPORT QUOTA - he can do with the rest the same as above (1) OR import the rest under the normal over-quota international shipping duty rate (2).

IMMEDIATE DELIVERY is NOT available for items, which are close to closing import quota.

If it is TARIFF IMPORT QUOTA importer it may then:

  1. Pay full international shipping duty and wait until Customs refund money for import quotas part (However it takes a long time);
  2. Keep it in bonded warehouse and take a part upon new import quota and/or the rest for the normal international shipping import quota rates.

If it is ABSOLUTE IMPORT QUOTA  you CANNOT make any release until you qualified for the absolute import quota.

IMPORT DUMPING in international shipping

IN FINE DUMPING - countries importing goods into the U.S. for ridicules low prices. Example: international shipping steel/importing. DUMPING - the same as above but subsidized by a foreign government. Example: Airbuses.

In both cases U.S. Government assigns cases to each particular international shipping event and investigates it. If internationally shipping items are imported during that investigation, there is NO extra duty on it. However, if a dumping is discovered and the case is done, the rest then goes against the bond.

 
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