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April 2024, question 80

Valuation, Appraisement and Duty Assessment · Quota

A shipment of leather handbags manufactured in India and subject to absolute quota arrives in the U.S. You find that the quota for this merchandise from India is closed. Which of the following describes the suitable action for the importer?

  1. Make a consumption entry and pay column 2 rates.
  2. Export the merchandise to Pakistan and re-import into the U.S. as a product of Pakistan.
  3. Request a visa waiver from the Pakistan embassy.
  4. Make a warehouse entry.
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CBP's answer: D. D: Make a warehouse entry.

Merchandise over an absolute quota may be held for the next quota period by placing it in a foreign-trade zone or entering it for warehouse, or it may be exported or destroyed under supervision. Of the choices, a warehouse entry (D) is the allowed route; paying column 2 rates, transshipping through Pakistan or a visa waiver are not.

may be held for the opening of the next quota period by placing it in a foreign-trade zone or by entering it for warehouse 19 CFR 132.5(c)

Search for: disposition of excess merchandise

CBP's key cites: 19 CFR 132.5(c)

Question and key from CBP's April 2024 exam and answer key. The walk-through is ours; quotes are from the pinned editions in the reference viewer (HTSUS 2026 Basic, 19 CFR 2025 edition).