Import Quotas in International Shipping

In international shipping, import 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 to 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).

Importers 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 through 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 the proper international shipping form.

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

The 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 50% for all those companies on EQUAL PERCENTAGE. No matter who and how many international shipping product is imported.

Customs takes 7501, changes it to those quantities by prorated 50%, and gives it back to importers.
The 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 the importer must take physical possession of the international shipping merchandise WITHIN 15 WORKING DAYS.

Over-quota situations in international shipping:

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

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

• Export it out;
• Destroy;
• Put in a bonded warehouse and wait for the next quota for up to 5 years;
• Make it as samples.

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 that are close to closing import quota.

If it is a 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 a bonded warehouse and take part in the new import quota and/or the rest for the normal international shipping import quota rates.

If it is an ABSOLUTE IMPORT QUOTA, you CAN NOT make any release until you qualify for the absolute import quota.

IMPORT DUMPING in international shipping

IN FINE DUMPING - countries importing goods into the U.S. for ridiculously 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 international shipping items are imported during that investigation, there is NO extra duty on it. However, if dumping is discovered and the case is done, the rest then goes against the bond.