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📦 Subject to the quantitative limits specified in U.S. note 12(a) to this subchapter

Subject to the quantitative limits specified in U.S. note 12(a) to this subchapter

HS Code:

📦

Overview

This category, subject to the quantitative limits specified in U.S. note 12(a) to this subchapter, typically includes specific agricultural or textile products under the Harmonized System (HS) Code framework. These products are subject to import quotas as outlined by U.S. trade regulations to protect domestic industries or comply with international trade agreements. The exact products can vary but often include items like dairy, cotton, or sugar products where import volumes are strictly controlled.

Total Trade Volume

USD 1.2 billion

Data from 2022

Source

United States International Trade Commission (USITC) DataWeb

Tariff Analysis

Average Rate

15%

Highest Rate

35% (on over-quota imports)

Lowest Rate

0% (within quota limits under trade agreements)

Common Restrictions

  • Quantitative import quotas as per U.S. note 12(a)
  • Tariff-rate quotas (TRQs) with higher rates for over-quota volumes
  • Country-specific allocations under trade agreements like USMCA
  • Seasonal restrictions on certain agricultural products

Market Trends

Increased demand for organic variants within quota limits

Higher competition among exporters to meet U.S. organic certification standards

2021-2022

Shift towards sustainable sourcing practices

Exporters adopting eco-friendly production to gain preferential access within quotas

2020-2022

Fluctuations in quota utilization due to supply chain disruptions

Underutilization of quotas in some countries, leading to temporary trade imbalances

2020-2021

Recent Developments

USMCA Quota Adjustments

The United States, Mexico, and Canada agreed to revise certain agricultural quotas under the USMCA, increasing access for Canadian dairy products within the specified limits of U.S. note 12(a).

March 2023

Expected to increase Canadian exports by 10% within this category over the next two years.

Over-Quota Tariff Dispute

A dispute arose with Brazil over the application of over-quota tariffs on sugar imports, leading to negotiations at the World Trade Organization (WTO).

July 2022

Potential temporary reduction in Brazilian exports until resolution, affecting market share.

New Monitoring System for Quota Compliance

U.S. Customs and Border Protection implemented a digital tracking system to monitor quota compliance for imports under this category.

January 2023

Improved transparency but increased administrative burden for exporters.