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April 2025, question 68

Valuation, Appraisement and Duty Assessment · Quota

Diane Baker is a licensed customs broker who executed a general power of attorney with Olympic Imports. Throughout 2024, Diane filed quota warehouse withdrawal entries (entry type 32) on behalf of Olympic Imports for various steel tubes subject to an absolute quota. Olympic Imports has provided Diane with paperwork from its manufacturer for a new shipment of steel tubes due to arrive on December 14, 2024. Per CBP, the absolute quota for steel pipes has been filled for 2024 and is closed. The next quota period opens on January 1, 2025. Which answer best describes how Diane must dispose of the steel tubes arriving on December 14, 2024?

  1. Admit the shipment into a foreign trade zone to store the steel pipes until the opening of the next absolute quota period.
  2. Submit a quota warehouse withdrawal (entry type 32) and enter the steel pipes at a higher duty rate.
  3. Submit a quota entry (entry type 02) and enter the steel pipes at a higher duty rate.
  4. Enter the shipment into a class 19 bonded warehouse until it can be exported.
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CBP's answer: A. A: Admit the shipment into a foreign trade zone to store the steel pipes until the opening of the next absolute quota period.

Section 132.5(c) says merchandise in excess of an absolute or tariff-rate quota may be held for the opening of 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 Customs supervision. Of the choices, only the FTZ option (A) holds the steel for January 1. A higher duty rate is not an option for absolute quota goods, and a class 19 warehouse is not a warehouse class under 19.1(a).

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)
Absolute quota merchandise imported in excess of the quantity admissible under the applicable quota must be disposed of in accordance with paragraph (c) of this section. 19 CFR 132.5(a)

Search for: Disposition of excess merchandise

CBP's key cites: 19 CFR 132.5(a); 19 CFR 132.5(c); 19 CFR 19.1(a)

Question and key from CBP's April 2025 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).