Abstract: The apparatus includes a separate line side inlet queue for each GFR VC, a single network side outlet queue for all GFR VCs, a single network side inlet queue for all GFR VCs, a single line side outlet bulk processing queue with a post queue packet processor followed by separate line side outlet queues for each line, a network side outlet queue monitor, and a line side inlet queue controller. The network side outlet queue monitor is coupled to the line side inlet queue controller so that the network side outlet queue monitor can send messages to the line side inlet queue controller. According to one of the methods of the invention, the network side outlet queue monitor sends messages to the line side inlet queue controller directing the line side inlet queue controller to send data from the line side GFR queues based on the status of the network side outlet GFR queue. According to another method of the invention, the line to side inlet queue controller discards packets for a GFR VC if congestion is indicated.