|
 |
 |
What is the difference between Absolute vs. Tariff Rate Quotas?
Absolute quotas limit the quantity of goods that may enter the commerce of the United States in a specific period. When an absolute quota is filled, further entries are prohibited during the remainder of the quota period. Some quotas are global while others are allocated to specified foreign countries. The absolute quota is usually officially opened at a specific time on the first workday of the quota period so that all importers may have an equal opportunity for the simultaneous presentation of entries. If the number of quota entries exceeds the quota, the commodity is released on a pro rata basis (i.e. the ratio between the quota quantity and the total quantity offered for entry.) Tariff-rate quotas permit a specific quantity of imported merchandise to be entered at a reduced rate of customs duty during the quota period. There is no limitation of the amount of the quota product that may be imported into the U.S. at any time, but quantities entered during the quota period in excess of the quota quantity for that period are subject to higher duty rates.Duties at the reduced rates are assessed on shipments entered under the quota. When the quota is almost filled, CBP ports are instructed to require the deposit of estimated duties at the over-quota duty rates as of a specified date, and to report the time of official acceptance of each entry.When an official determination is made of the date and time the quota is filled, CBP field officers are authorized to rebate the higher duty rates on that portion of the merchandise entitled to preference, and to collect the higher rate of duty on portions that are not entitled to preference.
Customs & Border Protection (CBP), Department of Homeland Security
http://www.cbp.gov/
|
|
|
|
|
