GlossaryEN1 min readUpdated: Jun 22, 2026
Tariff quota
A tariff quota is a trade policy instrument that allows a defined volume of goods to be imported at a reduced or zero duty rate; once that threshold is exceeded, the standard – typically far higher – duty rate applies automatically.
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Source: https://ec.europa.eu/taxation_customs/what-customs/customs-procedures/customs-duty/tariff-quota_en
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Definition & Explanation
A tariff quota is a trade policy instrument that allows a defined volume of goods to be imported at a reduced or zero duty rate; once that threshold is exceeded, the standard – typically far higher – duty rate applies automatically. Tariff quotas are commonly established through free trade agreements or bilateral trade treaties and frequently cover agricultural commodities, textiles, and selected industrial goods. Securing quota allocation translates directly into lower landed costs. Applications are therefore often filed at the very opening of the quota period, and for high-demand goods the available volume can be exhausted within days. Not to be confused with an import quota, which restricts volumes regardless of the applicable duty rate.
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