17.01.2014 Views

Importing into the United States - Indo-American Chamber Of ...

Importing into the United States - Indo-American Chamber Of ...

Importing into the United States - Indo-American Chamber Of ...

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

40. IMPORT QUOTAS<br />

An import quota is a quantity control on<br />

imported merchandise for a certain period of<br />

time. Quotas are established by legislation, by<br />

directives, and by proclamations issued under<br />

<strong>the</strong> authority contained in specific legislation.<br />

The majority of import quotas are administered<br />

by <strong>the</strong> U.S. Customs Service. The Commissioner<br />

of Customs controls <strong>the</strong> importation of<br />

quota merchandise but has no authority to<br />

change or modify any quota.<br />

<strong>United</strong> <strong>States</strong> import quotas may be<br />

divided <strong>into</strong> two types: absolute and tariff-rate.<br />

Under <strong>the</strong> North <strong>American</strong> Free Trade Agreement<br />

(NAFTA), <strong>the</strong>re are tariff-preference<br />

levels, which are administered like tariff-rate<br />

quotas.<br />

Tariff-rate quotas provide for <strong>the</strong> entry of<br />

a specified quantity of <strong>the</strong> quota product at a<br />

reduced rate of duty during a given period.<br />

There is no limitation on <strong>the</strong> amount of <strong>the</strong><br />

product that may be entered during <strong>the</strong> quota<br />

period, but quantities entered in excess of <strong>the</strong><br />

quota for <strong>the</strong> period are subject to higher duty<br />

rates. In most cases, products of Communistcontrolled<br />

areas are not entitled to <strong>the</strong> benefits<br />

of tariff-rate quotas.<br />

Absolute quotas are quantitative, that is,<br />

no more than <strong>the</strong> amount specified may be permitted<br />

entry during a quota period. Some<br />

absolute quotas are global, while o<strong>the</strong>rs are<br />

allocated to specified foreign countries. Imports<br />

in excess of a specified quota may be held for<br />

<strong>the</strong> opening of <strong>the</strong> next quota period by placing<br />

it in a foreign trade zone or by entering it for<br />

warehouse, or it may be exported or destroyed<br />

under Customs supervision.<br />

The usual Customs procedures generally<br />

applicable to o<strong>the</strong>r imports apply with respect<br />

to commodities subject to quota limitations.<br />

The quota status of a commodity subject<br />

to a tariff-rate quota cannot be determined in<br />

advance of its entry. The quota rates of duty are<br />

ordinarily assessed on such commodities<br />

entered from <strong>the</strong> beginning of <strong>the</strong> quota period<br />

until such time in <strong>the</strong> period as it is determined<br />

that imports are nearing <strong>the</strong> quota level. Port<br />

directors of Customs are <strong>the</strong>n instructed to<br />

require <strong>the</strong> deposit of estimated duties at <strong>the</strong><br />

over-quota duty rate and to report <strong>the</strong> time of<br />

official presentation of each entry. A final determination<br />

is <strong>the</strong>n made of <strong>the</strong> date and time<br />

when a quota is filled, and all port directors are<br />

advised accordingly.<br />

Some of <strong>the</strong> absolute quotas are invariably<br />

filled at or shortly after <strong>the</strong> opening of <strong>the</strong><br />

quota period. Each of <strong>the</strong>se quotas is <strong>the</strong>refore<br />

officially opened at noon Eastern Standard<br />

Time, or <strong>the</strong> equivalent in o<strong>the</strong>r time zones, on<br />

<strong>the</strong> designated effective date. When <strong>the</strong> total<br />

quantity for <strong>the</strong>se entries filed at <strong>the</strong> opening of<br />

<strong>the</strong> quota period exceeds <strong>the</strong> quota, <strong>the</strong> merchandise<br />

is released on a pro rata basis, <strong>the</strong> pro<br />

rata being <strong>the</strong> ratio between <strong>the</strong> quota quantity<br />

and <strong>the</strong> total quantity offered for entry. This<br />

assures an equitable distribution of <strong>the</strong> quota.<br />

Merchandise is not regarded as presented<br />

for purposes of determining quota priority<br />

until an entry summary or withdrawal from<br />

warehouse for consumption has been submitted<br />

in proper form and <strong>the</strong> merchandise is<br />

located within <strong>the</strong> port limits.<br />

COMMODITIES SUBJECT TO<br />

QUOTAS ADMINISTERED BY<br />

CUSTOMS<br />

As provided in <strong>the</strong> Harmonized Tariff<br />

Schedule of <strong>the</strong> <strong>United</strong> <strong>States</strong>, <strong>the</strong> commodities<br />

listed below are subject to quota limitations in<br />

effect as of <strong>the</strong> date of publication of this book.<br />

Local Customs officers can be consulted about<br />

any changes.<br />

Information may also be obtained by contacting<br />

<strong>the</strong> Quota Staff, U.S. Customs Service,<br />

1300 Pennsylvania Avenue NW, Washington,<br />

DC 20229, Tel. 202.927.5850.<br />

Tariff-Rate Quotas<br />

■<br />

■<br />

■<br />

■<br />

■<br />

Anchovies<br />

Brooms<br />

Broom corn brooms<br />

Ethyl alcohol<br />

Lamb<br />

IMPORTING INTO THE UNITED STATES<br />

89

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!