Tariff-Rate Quotas: How Quota Fill Decides Your Import Duty
Chen Cui Co-Founder of GingerControl A tariff-rate quota lets a fixed quantity of a product enter at a low in-quota rate and charges everything after that at a much higher over-quota rate, and under 19 CFR 132 your entry's place in line is set by the latest of arrival, an error-free entry summary and payment, so a quota that fills before your entry is in proper form turns a 4.4 cents per kilogram beef duty into 26.4 percent of value.
Next step:Price the full duty stack for one SKU
In this post
- What is a tariff-rate quota?
- What decides whether my entry gets the in-quota rate?
- How is a tariff-rate quota different from an absolute quota?
- Which products are subject to tariff-rate quotas?
- How does a tariff-rate quota open and fill?
- How does CBP announce quota status?
- What does missing the in-quota window cost?
- Where quota status fits in a landed cost model
- Putting quota timing into your landing plan
- References
What is a tariff-rate quota?
A tariff-rate quota (TRQ) lets a set quantity of a product enter during a period at a reduced duty rate, and charges anything above that quantity at a higher rate. 19 CFR 132.1(b) defines it as permitting "a specified quantity of merchandise to be entered or withdrawn for consumption at a reduced duty rate during a specified period."
What decides whether my entry gets the in-quota rate?
Timing. For first-come, first-served quotas, CBP ranks entries by presentation time, which is the latest of three events: arrival reported in ACE, an error-free entry summary on file, and payment or a scheduled statement. If the quota fills before that moment, your goods pay the over-quota rate.
A tariff-rate quota gives a product two duty rates on two HTS lines, and once the product is classified, which line you get depends on when your entry reaches CBP in proper form. Fresh boneless beef pays 4.4 cents per kilogram in-quota and 26.4 percent of value over-quota under HTSUS Revision 20. For a food importer bringing in a 20,000 kilogram container valued at $160,000, that is $880 against $42,240. Quotas on sugar can be oversubscribed at the opening moment: on October 1, 2026, CBP prorated the FY2027 refined sugar quota so each qualifying importer received about 51 percent of what it presented.
Last updated: October 2026
How is a tariff-rate quota different from an absolute quota?
CBP administers three kinds of quantity limits, and they fail in different ways when the limit is reached. 19 CFR 132.1(a) defines an absolute quota as one where "once the quantity permitted under the quota is filled, no further entries or withdrawals for consumption of merchandise subject to quota are permitted." A tariff-rate quota never closes the border. It changes the price.
| Quota type | What it limits | What happens after it fills | Where the rule sits |
|---|---|---|---|
| Tariff-rate quota (TRQ) | Quantity entered at the reduced rate | Unlimited entry at the higher over-quota rate | 19 CFR 132.1(b) and 132.5(b) |
| Absolute quota | Total quantity entered for consumption | No further entry for consumption until the next period; goods must be warehoused, put in a zone, exported or destroyed | 19 CFR 132.1(a) and 132.5(a) |
| Tariff preference level (TPL) | Textile and apparel quantities eligible for FTA preference | Excess enters at the column 1 rate; CBP administers it like a TRQ | CBP Quota FAQs |
Bottom line: For trade operations managers at importers of food, dairy or surface products, a TRQ is a pricing risk rather than an admissibility risk. Missing it raises the landed cost of the shipment; it does not strand the goods. An absolute quota is the reverse. CBP's quota FAQ notes that the Section 232 steel and aluminum quotas ended on March 11, 2025.
Two features of the regime catch new importers. First, CBP does not set quotas: "CBP does not have the authority to create, change, or modify quotas," its FAQ says. They come from statute, proclamations and trade agreements, written into the HTSUS. Second, 19 CFR 132.2(c) says the terms of the instrument creating a quota "must be strictly complied with." There is no partial credit for a nearly correct entry.
Which products are subject to tariff-rate quotas?
Most TRQs sit in the agricultural chapters, and each is defined in an additional U.S. note to the chapter, in a U.S. note to subchapter III of chapter 99, or in chapter 98 for free trade agreement quotas. The quota is attached to specific HTS lines, so the in-quota and over-quota rates are separate subheadings, not a single rate with a toggle. These examples come from CBP's current Quota Bulletins and HTSUS Revision 20, retrieved October 9, 2026.
| Product area | Legal basis | Quota period | How the opening works | Extra condition for the in-quota rate |
|---|---|---|---|---|
| Refined and specialty sugar | Chapter 17, additional U.S. note 5 | October 1 to September 30 | Opening-moment window, oversubscribed and prorated | Certificate of Quota Eligibility (CQE) for the Canada and Mexico allocations |
| Beef | Chapter 2, additional U.S. note 3 | Calendar year | Entries before 8:30 a.m. ET on opening day timed at 8:30; prorated if over the limit | e-CERT export certificate for Argentina, Australia, New Zealand and Uruguay |
| Cheddar cheese | Chapter 4, additional U.S. note 18 | Calendar year | Same 8:30 a.m. ET rule | USDA agricultural import license for most lines |
| Canned tuna | Chapter 16 subheadings | Calendar year | Opening-moment procedure; deposit at the over-quota rate until the final limit is set | Final limit supplied by the National Marine Fisheries Service in May |
| Quartz surface products | Chapter 99, subchapter III, U.S. note 41 | Quarterly, from August 15, 2026 | Same 8:30 a.m. ET rule | Unused quantity rolls into the next quarter |
| FTA agricultural goods (example: Australia) | Chapter 98, subchapter XXII | Calendar year | Same 8:30 a.m. ET rule | Australian government export certificate for beef, cheese and dairy |
Sources: CBP QB 26-301 (refined sugar), QB 26-201 (beef), QB 26-208 (cheddar), QB 26-212 (tuna), QB 26-601 (quartz) and QB 26-103 (Australia FTA).
Bottom line: For compliance teams at food and beverage importers handling 20 or more agricultural SKUs, the quota is a property of the HTS line. If a product classifies into a line "described in additional U.S. note" to its chapter, it is quota-class merchandise, and the rate you budget is only half the answer. Our food and beverage classification guide covers how those lines are reached.
The quartz quota shows that TRQs are not only agricultural. It is a Section 201 safeguard: the presidential proclamation published August 5, 2026 (91 FR 50645) imposes "a safeguard measure in the form of a tariff-rate quota on imports of QSP ... for a period of 4 years." Under chapter 99, U.S. note 41, goods entered from August 15, 2026 through August 14, 2027 pay an additional 25 percent within the quota under 9903.45.30 and 50 percent above it under 9903.45.31, on top of the chapter 68 or 70 rate. Products of Canada and Mexico are excluded, along with the FTA partners, developing countries and Caribbean Basin beneficiaries listed in note 41(c).
Sugar shows how the quantities are set. Chapter 17, additional U.S. note 5 caps raw cane sugar at an amount "not less than 1,117,195 metric tons" set each fiscal year by the Secretary of Agriculture, and USTR allocates that quantity among supplying countries. For FY2027, USTR's notice of July 24, 2026 (91 FR 46822) confirms the raw cane sugar quota at exactly that WTO minimum.
How does a tariff-rate quota open and fill?
There are two filling modes, and the quota bulletin for each commodity says which one applies.
First-come, first-served. Most quotas fill in order of presentation. 19 CFR 132.11(a) says "quota priority and status are determined as of the time of presentation of the entry summary for consumption, or withdrawal for consumption, in proper form." CBP's bulletins put that in operational terms: the presentation time is set "when the last of the following conditions is met: Error-free entry summary on file. Entry summary payment or statement scheduled information transmitted to the Automated Commercial Environment (ACE). Shipment arrival information at the intended port of unlading transmitted to ACE."
Four rules follow from that, each from the regulation or CBP's FAQ:
- No reservations. CBP's FAQ: "quota cannot be reserved," and "priority cannot be granted prior to the arrival of the merchandise in the U.S."
- A rejection resets the clock. If an entry summary is returned for correction, the resubmission "establishes a new date and time presentation for quota reporting purposes. If the quota has filled in the meantime, the importer is not entitled to the in-quota (low) rate of duty."
- Office hours count. Under 19 CFR 132.3, official hours for quota purposes are 8:30 a.m. to 4:30 p.m. in all time zones. The FAQ adds that entries presented after 4:30 p.m. are reported as 8:30 a.m. the next business day.
- Early release does not hold a place. Under 19 CFR 132.14(a)(2), release under a special permit for immediate delivery before a proper entry summary "shall not accord merchandise any quota priority or status."
The opening moment. When CBP expects a quota to fill on day one, 19 CFR 132.12 applies. All entries presented in proper form in the opening window are "considered to have been presented simultaneously," and the quantities are prorated. For refined sugar, the window on October 1, 2026 ran from midnight local port time to noon Eastern, and entries transmitted before or after it "will not be processed for the opening." CBP holds associated entries for up to 72 hours to calculate the pro rata share.
The results are public. CBP's QB 26-319 reports that the FY2027 refined sugar quota "over-subscribed at opening moment" with a pro rata percentage of 51.03027 percent. The year before, QB 25-319 set the FY2026 figure at 19.176653 percent. FY2027 specialty sugar prorated at 44.58212 percent (QB 26-310). After proration, 19 CFR 132.12(c)(2) gives the importer 5 working days after release is authorized to deposit an adjusted entry summary, and 15 working days to take delivery, to keep the opening-moment time.
Quotable insight: A tariff-rate quota is the one place in the HTS where a correct classification and a correct origin still do not tell you the rate. The deciding fact is a timestamp: the latest of arrival, an error-free entry summary and payment. On fresh boneless beef that timestamp separates 4.4 cents per kilogram from 26.4 percent of value, so a landed cost built on the in-quota line is a forecast, not a fact.
How does CBP announce quota status?
Three sources carry what an importer needs.
- Quota Bulletins. Issued by CBP's Quota and Agriculture Branch, one per quota per period. Each gives the commodity, the legal note, the quota period, the opening date and time, the restraint levels, the in-quota and over-quota HTS numbers, any certificate or license required, and the reporting instructions. Results bulletins publish proration percentages after an oversubscribed opening.
- Commodity Status Reports. CBP describes them as "designed to allow you to track quota as it is in the process of filling as well as giving the date and time of quotas already filled." The weekly report "is normally posted the first business day of every week," with the four previous reports kept online. Historical fill-rate spreadsheets cover completed periods by commodity.
- The HTSUS itself. The additional U.S. notes and chapter 99 notes hold the legal quantities and the rate pairs. The USITC HTS is the authority when a bulletin and a summary disagree.
Near the end of a quota, CBP can switch a TRQ to a cautious footing. Under 19 CFR 132.13(a)(1)(i), when instructed by headquarters, importers must deposit "at the over-quota rate of duty until Headquarters has determined the quantity, if any of the merchandise entitled to the quota rate," and CBP refunds the excess for any quantity later found to qualify.
What does missing the in-quota window cost?
The cost is the gap between two published rates, multiplied by your volume, plus whatever stacks on the over-quota line. Here are two worked examples using HTSUS Revision 20 rates, retrieved October 9, 2026, before merchandise processing fees and any other duties that apply to a particular origin.
| Scenario | HTS line and rate | Duty |
|---|---|---|
| Beef, 20,000 kg fresh boneless, entered value $160,000, in-quota | 0201.30.50 at 4.4 cents/kg | $880 |
| Same entry, over-quota | 0201.30.80 at 26.4% | $42,240 |
| Refined sugar, 500 metric tons at 100 degrees polarization, all in-quota | 1701.99.10 at 3.6606 cents/kg | $18,303 |
| Same sugar presented at the FY2027 opening, 51.03027% in-quota and the balance over-quota | 255,151 kg at 3.6606 cents plus 244,849 kg at 35.74 cents | $96,849 |
| Same sugar, all over-quota | 1701.99.50 at 35.74 cents/kg | $178,700 |
The arithmetic: 20,000 kg times $0.044 is $880; 26.4 percent of $160,000 is $42,240. For sugar, 500,000 kg times $0.036606 is $18,303 and times $0.3574 is $178,700. At the FY2027 proration, 500,000 kg times 0.5103027 is 255,151 kg in-quota, costing $9,340, and the remaining 244,849 kg over-quota costs $87,509, for $96,849 in total.
Bottom line: For a CFO signing off on a landed cost for quota-class goods, the in-quota rate is the best case, not the base case. A proration at the opening moment more than quintupled the sugar duty in this example even though every entry was filed on time. Budget at the over-quota rate and treat in-quota fill as upside.
Two items can widen the gap further. The over-quota beef and sugar lines carry footnotes pointing to chapter 99, subchapter IV, the agricultural special safeguard, whose U.S. note 1 states that "all of the duties provided for in this subchapter are cumulative duties which apply in addition to the duties, if any, otherwise imposed." Whether they apply depends on the price or quantity trigger in force, and goods of the countries listed in that note are exempt. CBP's quota bulletins also warn that quota merchandise "may also be subject to other duties (Antidumping/Countervailing, Section 232, etc.)."
What can you do with goods that miss the quota?
19 CFR 132.5 gives the options. Tariff-rate quota merchandise "is permitted entry at the higher duty rate," or it "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." Storage, financing and shelf life count against holding. If you are weighing a zone, our FTZ duty savings guide walks through the zone math, and note that the quartz proclamation requires quartz admitted into a zone from August 15, 2026 to take privileged foreign status.
The certificate trap is the other way to lose the rate. 19 CFR 132.15 requires the importer to "possess a valid export certificate at the time that such beef is entered" to claim the in-quota beef rate, and to record its number on the entry summary. Without it, the in-quota line is unavailable no matter how early the entry. Those certificates must be kept for five years from entry, the same clock covered in our customs recordkeeping guide. The certificate number sits in column 34 of the entry summary, which our Form 7501 walkthrough explains block by block.
Where quota status fits in a landed cost model
Most landed cost models assume one duty rate per HTS code, which is the method in our landed cost estimation guide. Quota-class goods break that assumption. The working fix is to carry two numbers per quota-class SKU, the in-quota line and the over-quota line, and to decide which one the plan assumes before the purchase order is placed.
Free sources cover the inputs: the HTSUS for both rates, the bulletins for the opening rules, the weekly report for fill. The work is assembly, pricing both lines with everything that stacks on each.
GingerControl's Tariff Calculator does the pricing half of that work. It covers the full U.S. tariff stack, base duty plus Section 232, Section 301 and Chapter 99, calculates by entry date, and breaks the duty into its components, so you can look up the in-quota subheading and the over-quota subheading and compare the two results directly. It does not track quota fill or tell you whether a quota is still open; CBP's Commodity Status Report remains the source for that, and quota entry timing stays with the importer and its licensed customs broker. Where duty on past entries was overpaid, GingerControl identifies and documents the opportunity; your licensed broker or counsel files.
Classification decides whether a product is quota-class at all. GingerControl's HTS Classification Researcher follows GRI logic, asks clarifying questions where candidate headings diverge, and cites CROSS rulings during the analysis. GingerControl is an HTS Classification Researcher: it follows the reasoning process a licensed customs broker uses, but the final classification decision benefits from professional judgment, and its reports support that decision rather than providing legal advice.
Putting quota timing into your landing plan
A tariff-rate quota turns a duty question into a scheduling question. Read the bulletin before booking freight, check the weekly status report as the period runs, and price both rates so the margin holds if the quota fills first. GingerControl's Tariff Calculator keeps the over-quota scenario in the plan from the start rather than on the broker's invoice.
References
- eCFR, 19 CFR part 132, Quotas
Data cited: definitions of absolute quota, tariff-rate quota, quota priority and status (132.1); strict construction (132.2(c)); office hours (132.3); disposition of excess merchandise (132.5); presentation in proper form (132.11, 132.11a); opening-moment proration and 5 and 15 working day limits (132.12); over-quota deposit near fill (132.13); immediate delivery (132.14); beef export certificate (132.15)
Source: 19 CFR part 132 on eCFR
Retrieved: October 9, 2026 - U.S. Customs and Border Protection, Quota Frequently Asked Questions
Data cited: types of quotas, CBP cannot create or modify quotas, no reservation of quota, rejection resets presentation time, after-hours presentation rule, end of Section 232 steel and aluminum quotas on March 11, 2025
Source: CBP Quota FAQs
Retrieved: October 9, 2026 - U.S. Customs and Border Protection, Quota Bulletins
Data cited: QB 26-301 and QB 26-319 (FY2027 refined sugar opening and 51.03027% proration), QB 25-319 (FY2026 refined sugar 19.176653% proration), QB 26-310 (FY2027 specialty sugar 44.58212% proration), QB 26-201 (2026 beef), QB 26-208 (2026 cheddar), QB 26-212 (2026 tuna), QB 26-601 (quartz), QB 26-103 (2026 Australia FTA)
Source: CBP Quota Bulletins
Retrieved: October 9, 2026 - U.S. Customs and Border Protection, Commodity Status Reports
Data cited: purpose of the reports, weekly posting schedule, historical fill rates
Source: CBP Commodity Status Reports
Retrieved: October 9, 2026 - U.S. International Trade Commission, Harmonized Tariff Schedule of the United States, Revision 20 (2026)
Data cited: chapter 2 additional U.S. note 3 and subheadings 0201.30.50 and 0201.30.80; chapter 17 additional U.S. note 5 and subheadings 1701.99.10 and 1701.99.50; chapter 99 subchapter III U.S. note 41 (quartz, 9903.45.30 and 9903.45.31); chapter 99 subchapter IV U.S. note 1 (cumulative safeguard duties)
Source: USITC HTS, Chapter 17, Chapter 99
Retrieved: October 9, 2026 - Federal Register, To Facilitate Positive Adjustment to Competition From Imports of Quartz Surface Products
Data cited: safeguard in the form of a tariff-rate quota for 4 years; exclusion of Canada and Mexico; privileged foreign status for zone admissions from August 15, 2026
Source: 91 FR 50645
Published: August 5, 2026 - Office of the United States Trade Representative, Fiscal Year 2027 Tariff-Rate Quota Allocations for Raw Cane Sugar, Refined Sugar, and Sugar-Containing Products
Data cited: FY2027 raw cane sugar in-quota quantity of 1,117,195 metric tons raw value, the WTO minimum
Source: 91 FR 46822
Published: July 24, 2026
Questions people ask
What is the difference between an in-quota rate and an over-quota rate under a tariff-rate quota?
The in-quota rate applies to the fixed quantity a tariff-rate quota admits each period; everything after that enters at the over-quota rate on a separate HTS line. Fresh boneless beef runs 4.4 cents per kilogram in-quota under 0201.30.50 and 26.4 percent over-quota under 0201.30.80. GingerControl's Tariff Calculator looks up both subheadings and breaks each one's duty into its components, so the two prices sit side by side.
How does CBP decide which importer gets the in-quota rate when a quota is first-come, first-served?
CBP ranks entries by presentation time, which is the latest of three events: arrival reported in ACE, an error-free entry summary on file, and payment or a scheduled statement. A beef importer whose summary is rejected at 9:00 a.m. and fixed at 2:00 p.m. gets the 2:00 p.m. time. GingerControl's HTS Classification Researcher documents the GRI reasoning behind each code, which matters because CBP lists incorrect classification as a common reason quota entries are rejected.
What happens to a shipment that arrives after a tariff-rate quota has filled?
Under 19 CFR 132.5 it can still enter, at the over-quota rate, or it can be placed in a foreign-trade zone or bonded warehouse until the next quota period opens, or exported or destroyed under CBP supervision. A food importer holding 20,000 kilograms of beef faces roughly $42,000 in over-quota duty on a $160,000 entry. GingerControl's Tariff Calculator prices each option's duty so the hold-or-enter decision rests on numbers.
Why does a quota like refined sugar get prorated on its opening day?
When CBP expects a quota to fill at opening, 19 CFR 132.12 treats every entry presented in proper form in the opening window as presented at the same moment and prorates the quantity. For the FY2027 refined sugar quota, each importer received about 51 percent of what it presented. GingerControl's Tariff Calculator prices the in-quota and over-quota lines separately, so the blended cost of a prorated entry can be worked out before the opening.
Is an absolute quota the same as a tariff-rate quota?
No. A tariff-rate quota only changes the rate once it fills; an absolute quota stops entry for consumption entirely until the next period, under 19 CFR 132.1. Goods over an absolute quota must be warehoused, put in a zone, exported or destroyed. For an importer sourcing a product under both regimes, GingerControl's HTS Classification Researcher works through the heading with GRI reasoning and the Chapter Notes, which is where quota-class lines are defined.
Where can an importer check whether a tariff-rate quota is still open before shipping?
CBP posts Quota Bulletins with each quota's period, opening time and limit, and a weekly Commodity Status Report, normally posted on the first business day of each week, showing fill. A compliance team watching 10 quota lines checks the weekly report before booking freight. GingerControl's Tariff Calculator prices the duty but does not report quota fill, so the CBP status page remains the source for that.
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Reviewed by Michael Weick, LCB / CCS
