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October 2025, question 26

Quota · Quota

Smith Imports, an importer located in Baltimore, MD, purchased 100,000 pounds of South Korean steel. The shipment is due to arrive in Los Angeles, CA on May 25, 2025. The steamship line estimates a conveyance arrival date of May 28, 2025. Smith Imports instructed its customs broker to make entry at the port of Baltimore. The customs broker advises that the product is subject to an absolute quota, and as of May 15, the steel quota is considered filled. The next quota period opens on July 1, 2025. Which of the following is NOT an appropriate action for the customs broker to take on behalf of Smith Imports?

  1. Admit the shipment into a Foreign Trade Zone to hold the merchandise until the opening of the next quota period.
  2. Submit a warehouse entry to hold the merchandise until the opening of the next quota period.
  3. Export the merchandise out of the United States to Canada.
  4. File a transportation entry to move the merchandise in-bond from Los Angeles through various ports to Baltimore, arriving at the start of the next quota period.
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CBP's answer: D. D: File a transportation entry to move the merchandise in-bond from Los Angeles through various ports to Baltimore, arriving at the start of the next quota period.

Section 132.5(c) lists what can be done with merchandise over an absolute quota: hold it for the next quota period in a foreign-trade zone or by entering it for warehouse, or export or destroy it under Customs supervision. A, B and C are on that list. Moving the steel in-bond across the country to arrive at the opening of the next period is not, so D is the action that is not appropriate.

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, or it may be exported or destroyed under Customs supervision 19 CFR 132.5(c)

Search for: Disposition of excess merchandise

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

Question and key from CBP's October 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).