19 CFR Part 132 · 5 exam questions
19 CFR 132.5: Merchandise imported in excess of quota quantities
The text of 19 CFR 132.5, followed by every released customs broker license exam question whose answer rests on it. Drawn from 5 released sittings, April 2018 through October 2025.
Edition shown: the 2025 annual edition of Title 19, revised as of April 1, 2025. It is the edition the October 2026 customs broker exam is graded against, and it can differ from the regulation in force today. For the current official text see 19 CFR 132.5 on eCFR.
§ 132.5 Merchandise imported in excess of quota quantities.
(a) Absolute quota merchandise. Absolute quota merchandise imported in excess of the quantity admissible under the applicable quota must be disposed of in accordance with paragraph (c) of this section.
(b) Tariff-rate quota merchandise. Merchandise imported in excess of the quantity admissible at the reduced quota rate under a tariff-rate quota is permitted entry at the higher duty rate. However, it may be disposed of in accordance with paragraph (c) of this section.
(c) Disposition of excess merchandise. Merchandise imported in excess of either an absolute or a tariff-rate quota 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.
How the exam tests 132.5
Each question below is a real released question with the answer CBP credited, the authority it rests on, and an explanation of why that answer is right.
April 2018, Q20. Absolute Quota merchandise imported in excess of the admissible quantity must be disposed of using an approved method. Which of the following is not an approved method of disposal?
- APlace into a Foreign Trade Zone, until the next quota opening period
- BEnter into a Warehouse, until the next quota opening period
- CEnter into the U. S. Commerce
- DExported under Customs supervision
- EDestroyed under Customs supervision
Show the answer and explanation
The correct answer is C because 19 CFR 132.5(c) explicitly lists only four approved disposal methods: placement in a Foreign Trade Zone, entry into a warehouse, export under Customs supervision, or destruction under Customs supervision. "Enter into the U.S. Commerce" is not among these methods and is therefore invalid. Tempting options like A and B are correct because they align with the regulation’s permitted actions, while D and E are also valid as they match the export and destruction provisions. C is incorrect because the regulation does not authorize disposal through entry into U.S. Commerce.
April 2023, Q33. A shipment of steel is made in South Korea and arrives in Chicago, Illinois. The absolute quota for this merchandise is filled. Which ONE of the following actions may the importer NOT take?
- APay the higher rate of duty
- BPlace the merchandise in a foreign trade zone
- CEnter the merchandise for warehouse
- DExport the merchandise under Customs supervision
- EDestroy the merchandise under Customs supervision
Show the answer and explanation
The correct answer is A because, under 19 CFR 132.5(a), absolute quota merchandise cannot be entered for consumption at a higher duty rate once the quota is filled; it must be disposed of via foreign trade zone storage, warehouse entry, export, or destruction under Customs supervision. Options B, C, D, and E are explicitly permitted by 19 CFR 132.5(c) for excess absolute quota merchandise. Option A is invalid because the higher rate applies only to tariff-rate quota merchandise (19 CFR 132.5(b)), not absolute quotas.
April 2025, Q68. Diane Baker is a licensed customs broker who executed a general power of attorney with Olympic Imports. Throughout 2024, Diane filed quota warehouse withdrawal entries (entry type 32) on behalf of Olympic Imports for various steel tubes subject to an absolute quota. Olympic Imports has provided Diane with paperwork from its manufacturer for a new shipment of steel tubes due to arrive on December 14, 2024. Per CBP, the absolute quota for steel pipes has been filled for 2024 and is closed. The next quota period opens on January 1, 2025. Which answer best describes how Diane must dispose of the steel tubes arriving on December 14, 2024?
- AAdmit the shipment into a foreign trade zone to store the steel pipes until the opening of the next absolute quota period.
- BSubmit a quota warehouse withdrawal (entry type 32) and enter the steel pipes at a higher duty rate.
- CSubmit a quota entry (entry type 02) and enter the steel pipes at a higher duty rate.
- DEnter the shipment into a class 19 bonded warehouse until it can be exported.
Show the answer and explanation
The correct answer is A because 19 CFR 132.5(c) explicitly permits holding excess absolute quota merchandise in a foreign-trade zone or by entering it for warehouse until the next quota period. The quota is closed, so entry at a higher duty rate (options B and C) is not applicable for absolute quotas, which are not subject to tariff-rate adjustments. Option D is incorrect because 19 CFR 132.5(c) does not reference class 19 bonded warehouses for this purpose, whereas foreign-trade zones are explicitly authorized.
May 2024, Q80. A shipment of leather handbags manufactured in India and subject to absolute quota arrives in the U.S. You find that the quota for this merchandise from India is closed. Which of the following describes the suitable action for the importer?
- AMake a consumption entry and pay column 2 rates.
- BExport the merchandise to Pakistan and re-import into the U.S. as a product of Pakistan.
- CRequest a visa waiver from the Pakistan embassy.
- DMake a warehouse entry.
Show the answer and explanation
The correct answer is D because 19 CFR 132.5(c) explicitly permits holding excess absolute quota merchandise in a warehouse until the next quota period opens. Option A is incorrect because consumption entry is not allowed for quota-exceeding merchandise, as the quota is closed and the merchandise cannot be lawfully entered for consumption. Option B is invalid because re-importing as a product of Pakistan does not address the quota issue and is not a permitted disposal method under the regulation. Option C is irrelevant, as visa waivers are unrelated to quota compliance and not mentioned in the cited authority.
October 2025, Q26. Smith Imports, an importer located in Baltimore, MD, purchased 100,000 pounds of South Korean steel. The shipment is due to arrive in Los Angeles, CA on May 25, 2025. The steamship line estimates a conveyance arrival date of May 28, 2025. Smith Imports instructed its customs broker to make entry at the port of Baltimore. The customs broker advises that the product is subject to an absolute quota, and as of May 15, the steel quota is considered filled. The next quota period opens on July 1, 2025. Which of the following is NOT an appropriate action for the customs broker to take on behalf of Smith Imports?
- AAdmit the shipment into a Foreign Trade Zone to hold the merchandise until the opening of the next quota period.
- BSubmit a warehouse entry to hold the merchandise until the opening of the next quota period.
- CExport the merchandise out of the United States to Canada.
- DFile a transportation entry to move the merchandise in-bond from Los Angeles through various ports to Baltimore, arriving at the start of the next quota period.
Show the answer and explanation
The correct answer is D because 19 CFR 132.5(c) explicitly permits holding excess quota merchandise only in a foreign-trade zone, warehouse, or by exporting it. Filing a transportation entry to move the goods in-bond does not satisfy these requirements, as it does not place the merchandise in a warehouse or FTZ, nor does it export it. Options A, B, and C align with the regulation’s allowed disposal methods. Option D is invalid because it fails to secure the merchandise in a permissible holding location or export it, violating the quota disposition rules.
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