Glossary
What is a tariff rate quota (TRQ)?
A tariff rate quota (TRQ) allows a set quantity of goods to be imported at a reduced or zero duty rate within a defined period. Once that volume is used up, further imports of the same goods pay the standard rate. |
How does a tariff rate quota work?
Two rates apply to one product: an in-quota rate covering a fixed volume in a fixed period, and an out-of-quota rate on everything beyond it. Quotas are allocated either first-come, first-served against the declaration date, or by licence issued in advance of the shipment.
What importers need to watch
- Whether the quota is licensed or first-come, first-served — it changes when you have to act
- The remaining balance, since a popular quota can exhaust mid-voyage
- The quota order number, which must be quoted on the declaration to get the rate
- Any origin condition attached, since a quota is not always open to every source
Where TRQs came from
TRQs were a central outcome of the WTO Uruguay Round, converting agricultural import restrictions into tariff form so they could be measured and negotiated. The UK set its own quota schedule on leaving the EU, so UK and EU volumes for the same product now differ.
iCustoms flags quota availability against your commodity code before the declaration goes in. |
