# Tariff Rate Quota (TRQ)

*Last updated: 2026-06-26*

> Unlike a flat tariff rate, a Tariff Rate Quota (TRQ) splits import volumes into two tiers: a defined quantity may enter at a reduced or zero duty, while anything beyond that threshold faces the substantially higher standard tariff.

Unlike a flat tariff rate, a Tariff Rate Quota (TRQ) splits import volumes into two tiers: a defined quantity may enter at a reduced or zero duty, while anything beyond that threshold faces the substantially higher standard tariff. TRQs emerged as a compromise tool in trade negotiations, balancing importer market access against domestic producer protection. In practice, freight forwarders and importers must confirm quota availability before lodging a customs declaration—TRQ volumes in high-demand categories are routinely exhausted within weeks of the new quota year opening. Quota management typically operates on a first-come, first-served basis or through licensed allocation, depending on the administering authority.

**Source:** [https://www.wto.org/english/docs_e/legal_e/gatt47_02_e.htm](https://www.wto.org/english/docs_e/legal_e/gatt47_02_e.htm)

## Quick Facts

| Property | Value |
|---|---|
| Term | Tariff Rate Quota (TRQ) |
| Language | EN |
| Word count | 103 |
| Last updated | 2026-06-26 |
| Source | https://www.wto.org/english/docs_e/legal_e/gatt47_02_e.htm |

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