GlossaryEN1 min readUpdated: Jun 26, 2026
Tariff Rate Quota (TRQ)
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.
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Source: https://www.wto.org/english/docs_e/legal_e/gatt47_02_e.htm
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Passar Hub: Everything on the new Swiss customs system
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Definition & Explanation
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.
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Passar Hub: Everything on the new Swiss customs system
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