CustomsBrokerLicenseExam

Home / Past exams / October 2026 / Question 29

October 2026, question 29

Quota · Quota

Oceanic Canners Inc. (Oceanic Canners), located in Virginia Beach, Virginia specializes in importing canned tuna, which is subject to quota and the “opening moment” procedures. Oceanic Canners instructs its broker to enter its entire shipment of canned tuna for consumption regardless of the duty rate. For the 2026 quota period (January 1, 2026, to December 31, 2026), its customs broker prepares an entry for a large shipment of canned tuna. The quota for this product opens on Friday, January 2, 2026. On this opening day, the total quantity of canned tuna presented by all importers to CBP significantly exceeds the final quota limit for the year. Which of the following best describes how Oceanic Canners’ entry will be processed for quota purposes?

  1. Oceanic Canners’ entry will be rejected entirely, and it must re-submit once the quota reopens.
  2. Oceanic Canners will receive its full quantity requested at the in-quota duty rate because its entry was submitted on the opening day.
  3. Oceanic Canners will receive a prorated portion of its requested quantity at the in- quota duty rate, with the remainder subject to the higher over-quota duty rate.
  4. Oceanic Canners’ entry will be held until the end of the quota period to determine if any remaining quota is available.
Show the answer and walk-through

CBP's answer: C. C: Oceanic Canners will receive a prorated portion of its requested quantity at the in- quota duty rate, with the remainder subject to the higher over-quota duty rate.

A quota oversubscribes when demand at opening is greater than the quota limit, and in that case all entries are prorated (BRPD 7.8). Oceanic Canners' tuna entry therefore gets a prorated share at the in-quota rate and the rest at the over-quota rate, so C is right. Filing on opening day does not guarantee the full quantity, and the entry is not held until the end of the period.

if the total quantity presented at opening by all importers is greater than the ACE BRPD Section 7.8
Special rules will apply to quotas (tuna and sugar) that are expected ACE BRPD Section 7.8

Search for: all entries are prorated

CBP's key cites: ACE BRPD Section 7.8; 19 CFR 132.13

Question and key from CBP's October 2026 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).