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Tariff Rate Quota | The Best Analysis-Xiongda

Tariff rate quota refers to a measure adopted by the country to restrict the import volume of a certain commodity in cross-border trade. It stipulates that the import volume of a certain commodity cannot exceed a certain amount, and additional tariffs will be charged if the amount exceeds this amount.

Such measures can effectively protect domestic industries, limit the share of foreign products in the domestic market, and stabilize domestic market prices.

Help you better understand tariff rate quota

For example, in 2020, France allows companies to apply for the import of 2,195,000 kilograms of kitchen supplies with a tariff rate of 24.5%. The duty rate that will be paid above this amount.

tariff rate quota

How to Apply for tariff rate quota?

Claiming different Tariff Quotas varies from country to country. Different governments have different laws regarding how one can apply for tariff quotas.

You need to enter the tariff quota order number on the following import declaration:

If you want Customs Handling of Import and Export Freight (CHIEF), then in box 39

If you have the Customs Declaration Service in Data Element 8/1

Documentation for submission of imported goods that can be used for claims on customs declarations.

If your claim is significant, it is necessary to purchase full coverage.

Once you exceed the statute of limitations, your claim will no longer be valid and you must pay the full tariff.

Even if you have a license quota, you will need to provide the TRQ order number when filing

tariff rate quota

The process of applying for tariff rate quota

1. Make an application;

2. The management department allocates the quota to the applicant;

3. Apply for an import license by virtue of the import quota certificate;

4. Go through customs declaration and inspection procedures with the customs;

5. Return the unused quota to the quota management department.

Import quotas are import quotas. A country stipulates in advance the quantity or amount of imports of various commodities in a certain period of time. It can only be imported within the specified quantity and amount, and if it exceeds the range, it will not be allowed to import, or a license system will be implemented.

tariff rate quota

The form of import tariff rate quota

Global quota

that is, the quota applicable to any country or region in the world, and an irregular quota is granted successively according to the application of the importer until the quota is full;

Country-specific quotas

that is, fixed quotas allocated by country and region, some of which are unilaterally mandated, and some are negotiated and determined by both parties;

Importer quota

Certain quota is allocated to different importers. Some countries also combine import quotas with tariffs, giving low taxes, tax reductions or tax exemptions within the quotas, and higher tariffs or additional taxes if the quotas are exceeded.

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