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October 2025, question 28

Quota · Quota

ATC Imports hires Fry Customs Brokers to file an entry for imported carpets subject to a tariff-rate quota. CBP Officer James inadvertently releases the merchandise before the proper presentation of the entry summary, and the quota is nearing fulfillment. The port director has decided to issue liquidated damages. Which of the facts below would justify the port director's decision?

  1. The importer submitted estimated duties calculated at the over-quota rate.
  2. The merchandise is returned to CBP custody within 30 days from the date of demand for redelivery.
  3. The release was due to causes wholly beyond the control of the importer.
  4. The entry summary with estimated duties attached is not presented timely.
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CBP's answer: D. D: The entry summary with estimated duties attached is not presented timely.

Section 132.14(a)(4)(i)(C) lets the port director assess liquidated damages for an inadvertent release when the quota is nearing fulfillment if the goods were released before presentation of the entry summary with estimated duties, were not returned within 30 days of demand, or the entry summary with estimated duties was not presented timely. Failure to present timely (D) justifies it. Returning the goods within 30 days, or release beyond the importer's control, are grounds to cancel the claim under paragraph (a)(4)(i)(D) of the regulation, and over-quota-rate duties are how the amount is computed, not a ground.

is not presented timely 19 CFR 132.14(a)(4)(i)(C)
if the merchandise is redelivered to Customs custody within 30 days from the date of the demand 19 CFR 132.14(a)(4)(i)(D)

Search for: is not presented timely

CBP's key cites: 19 CFR 132.14(a)(4)(i)(C)

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).