Quotas – Is Your Imported Product Impacted?

An import quota controls the amount or volume of some items imported into the U.S. for a specific period of time. Quotas are established by the U.S. government to bring balance with our trading partners. Some quotas result in preferential treatment in which you will save duty fees, while other quotas may increase duties. 

Three Types of Quotas

• Absolute quota: strictly limits the quantity of goods imported during a period of time.
• Tariff-rate quota: a specified quantity is permitted at a reduced rate of duty during the quota period. Once the quota limit is reached, goods will be entered at a higher rate of duty.
• Tariff preference level quotas: various types of handling based on legislation and trade agreements between the U.S. and the trading country.

Key Factors

Common products that are impacted by quotas include textile products of any kind, agricultural products, and products from certain countries. Once you know the product you will import, some quick research or a phone call to your customs broker will alert you to any quotas to be aware of.

Textile Quotas

All textile imports are governed by quotas. If you’re importing textile items, it’s wise to have a general understanding of the quotas that may impact you and your shipment. For example, in 2008, hosiery items from China reached 93% of the absolute quota limit. If your item may reach a quota limit, you’ll want to adjust the timing of your shipment to arrive before the limit is reached. As of June 2009, absolute quotas exist for textiles from China, Vietnam, Russia, and Ukraine.

Textiles are organized by a category number; with this number you can make sense of the vast array of reports and articles to see if your shipment may be impacted by quotas. Visit the International Trade Administration Office of Textiles and Apparel website for the category listing of apparel and textiles.
 
Other Quotas

The Customs and Border Protection (CBP) website also has a FAQs page to help determine what other types of goods are subject to quotas. The rules can be exhaustive, so save time by knowing your product HTS classification before digging in to the research. For a lesson on using the HTS classification tool, see The Import Channel’s topic “Find Products With Big Profits”.

Or make it easy on yourself, and call your customs broker.