Tariff Quotas | Preferential or Autonomous

What are tariff quotas?

Tariff concessions that are provided for a predetermined volume of goods are called "preferential tariff quotas". Within these tariff quotas, a predetermined volume of goods originating in a specified country/territory can benefit at import from a more favourable rate of duty than the normal third countries/territories duty. Entitlement to benefit from tariff quotas is subject to presentation of the necessary evidence of origin.

How do tariff quotas work?

Importers get the lower rate until the quota volume is used up. After that, the normal duty rate usually applies. Many quotas run on a first come, first served basis, though some are allocated through licenses. Quota periods can cover a calendar year or a shorter span, depending on the program.

What's the difference between preferential and autonomous quotas?

Preferential quotas come from trade agreements and apply to goods from specific countries. Autonomous quotas are set by the importing jurisdiction itself, such as the European Union, and often cover goods from a wider range of origins. Check the remaining quota balance with customs before you rely on it.

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