Quota
How quota-class goods get quota status: absolute versus tariff-rate quotas, presentation in proper form, the opening moment and proration, what to do with excess goods, export certificates and licenses, and how ACE processes quota lines. Quota replaced drawback as the special-topic category on the October 2025 and April 2026 exams.
Special Topic (Drawback or Quota)4 min read7 sections
The special-topic category (four or five questions after the practical exercise) was Modernized Drawback through April 2025 and Quota on October 2025 and April 2026. Quota questions mix 19 CFR Part 132 with the ACE Business Rules and Process Document, chapter 7, which is one of the exam's references. Expect timing puzzles, excess-goods options and ACE messages.
| Absolute quota | Tariff-rate quota | |
|---|---|---|
| When the quantity is reached | No more entries for consumption in the period | Entries continue at the over-quota rate |
| Immediate delivery | Only perishable goods of an approved class (142.21(e)(2)) | At the port director's discretion with a 113.62 bond (142.21(e)(1)) |
| Excess goods | FTZ, warehouse, export or destroy (132.5(a), (c)) | Over-quota rate, or FTZ, warehouse, export or destroy (132.5(b)-(c)) |
| Permit of delivery before status is known | Not issued (132.14(b)(2)(i)) | Only with duties at the over-quota rate (132.14(b)(2)(ii)) |
Quotas are set by Presidential proclamations, Executive orders and legislation, and their terms are strictly construed (132.2). Section 350 TRQ rates never apply to General Note 3(b) countries: Belarus, Cuba, North Korea and Russia (132.6).
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