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What is an import quota?
Import quotas control the quantity of certain imported merchandise for a period of time. The majority of import quotas are administered and enforced by Customs and Border Protection (CBP) based on directives from the Committee for the Implementation of Textile Agreements, which is composed of the Department of State, Commerce, Treasury, Labor and U.S. Trade Representatives. CITA negotiates a bilateral agreement with a particular country agreeing to quantities of imports allowed to be imported into the United States during a specified period of time. Additionally, quotas are established by presidential proclamation, executive orders, and legislative enactments. CBP has no authority to change or modify any quota. It is CBP responsibility to count and monitor merchandise imported that is subject to quota. There are two types of quotas, which are absolute and tariff-rate. Absolute quotas permit a limited number of units to enter the U.S. during a period of time. Once the quantity permitted under the quota is filled, no further entries are permitted until the quota opens. For example, certain textiles from China are subject to an absolute quota. The tariff-rate quota allows a specified quantity of certain goods to enter at a reduced duty rate during a specific period, and when the quota reaches its limit, the goods are subject to a higher duty rate. For example, commercial quantities of certain cheese and dairy products are subject to tariff-rate quota.
Customs & Border Protection (CBP), Department of Homeland Security
http://www.cbp.gov/
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