CBP Issues Reminder That Its Quota Preprocessing Program Has Expired, Cannot be Used for TPLs or TRQs
U.S. Customs and Border Protection has issued a memorandum reminding the trade that the Quota Preprocessing Program (QPP) expired on December 31, 2008.
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The QPP was a test program that allowed entries of apparel in HTS Chapters 61 and 62 that were subject to an absolute quota to be presented and have their quota priority and status determined prior to the arrival of the carrier. It allowed for the electronic processing of the apparel, similar to the method of preliminary review by which non-quota entries were processed. The program did not include tariff preference levels or tariff rate quotas.
TPL/TRQ Entries Cannot be Processed Under QPP & Must be Returned to Broker
As all absolute quotas have expired, the QPP can no longer be used. Therefore, any entries for merchandise subject to TPLs or TRQs cannot be processed under the QPP and must be returned to the broker.
CBP Administers TPLs/TRQs on a "First-Come, First-Served" Basis
CBP explains that it administers TRQs and TPLs on a "first-come, first-served" basis; the importer's line is determined by the date and time the entry summary is presented in proper form to CBP. Merchandise subject to a TRQ or TPL may be entered using entry/entry summary procedures or immediate delivery (ID) procedures.
Under ID procedures, the entry summary must be presented in proper form within 10 working days of release of the merchandise or before the end of the quota period, whichever occurs first. CBP notes that the release of TRQ/TPL merchandise under a special permit for ID before proper presentation of any entry summary does not grant the merchandise any quota priority or status or entitle it to any other quota benefit. Even if merchandise subject to a TRQ or TPL is released by a special permit for ID, there is guarantee of the in-quota (low) duty rate based on date of special permit for ID (entry). Sufficient quantity must be available at the in-quota (low) duty rate when the entry summary and payment of duties are presented, or else the over-quota rate applies.
(See ITT's Online Archives or 09/25/06 news, 06092515, for BP summary announcing that CBP was extending the QPP test through December 31, 2008.)
QBT-10-001 (dated 01/08/10) available at http://www.cbp.gov/linkhandler/cgov/trade/trade_programs/textiles_and_quotas/qbts/qbt2010/qbt_10_001.ctt/qbt_10_001.pdf