Through legislation enacted annually, the U.S. Congress has imposed quotas on different imported merchandise. An import quota is a quantity control on imported merchandise for a certain period of time. The majority of import quotas are administered by the U.S. Customs Service. The Commissioner of Customs controls the importation of quota merchandise but does not have the authority to change or modify any quota. Before agreeing to purchase products for importation and in planning the cost of the product, the importer must find out early on whether the potential imported merchandise is under an absolute or tariff rate quota.
Absolute quotas are quantitative.
Once a certain quantity of a merchandise has been entered into the United States, no further imports are allowed. Merchandise arriving after the absolute quota has been achieved will be detained. This merchandise can be destroyed or exported out. If the merchandise is not perishable, it can be placed in a warehouse under a warehouse entry or in a foreign trade zone and held until the absolute quota begins again. This can take up to a year.