|
QUOTA PRIORITY | Over- quota situations | IMPORT DUMPING
Quotas is the set of numbers for specific items that would be allowed to com to the United States.
Quotas is always set by COMMODITY (1) and COUNTRY (2).
Quotas encourage or discourage the amount of goods that importing in the USA.
Two types of quotas:
- Absolute quota (Example: Says that it is allowed for import from China 100,000 t-shirts. That' it. No more);
- Tariff quota (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).
Importer can submit a quota entry on the day when the quota is opened. Either:
- Submit the entry and entry summary to the customs (if there are clerical errors, etc then the entry has no legal status) or;
- For preliminary review (no legal status).
Quota entry can be submitted trough 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 proper form.
There are cases when quota opens and closes in one minute. It officially opened at 12 noon Eastern Standard time on the designated effective date. See on the example:
Quota for Chinese t-shirt import is 1,000,000 t-shirts.
20 Chinese companies brought entries in proper form for 2,000,000 t-shirts.
Then quota opened and closed instantly.
Then Customs PRORATES ENTRIES:
2,000,000 requires
1,000,000 allowed by the quota
then it prorates for 50% for all those companies on EQUAL PERCENTAGE. No matter who and how many product is importing.
Customs takes 7501, changes it to those quantity by prorated 50% and gives it back to importers.
Importer has 5 WORKING DAYS to change (retype) the 7501 to the proper number.
- If they late, then they loose the quota status completely.
- If it is approved then importer must take physical possession on the merchandise WITHIN 15 WORKING DAYS.
Over-quota situations:
Let's say importer brought to customs a quantity of goods that exceed the quota. (Brought 200,000 items, but quota allows for import 20,000 only), then:
A. If it is ABSOLUTE QUOTA (no other choice):
- Export it out;
- Destroy;
- Put in a bonded warehouse and wait for the next quota up to 5 years;
- Make it as samples.
B. If it is TARIFF RATE QUOTA - then he can do with the rest the same as above (1) OR import the rest under the normal over-quota duty rate (2).
IMMEDIATE DELIVERY is NOT available for items, which are close to closing quota.
If it is TARIFF QUOTA then importer may:
- Pay full duty and wait until Customs refund money for quotas part (However it takes a long time);
- Keep it in bonded warehouse and take a part upon new quota and/or the rest for the normal rates.
If it is ABSOLUTE QUOTA then you CANNOT make any release until you qualified for the absolute quota.
IMPORT DUMPING
IN FINE DUMPING - countries importing goods into the U.S. for ridicules low prices. Example: 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 event and investigates it. If items are imported during that investigation, then there are NO extra duty on it. However, if a dumping is discovered and the case is done, then the rest goes against the bond.
| 
