Tariff Rate Quota (TRQ) Definition | Tariff Rate Quota Scheme | Tariff Rate Quota Administration

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The tariff rate quota definition describes this policy tool as a means by which we protect a commodity that has been produced internally from external competition. This means that all products that are imported by a country will have a high tax imposed on it so as not to hurt the trade within that particular country. The tariff rate quota definition has to main parts; these are tariffs and quotas. The tariff quota rate definition characterizes this import policy as a tax that restricts the amount of imports coming into a country. The tariff rate quota definition describes this tax as type of protection for those imports who are under this particular quota. These imports have to pay a lower rate or may be none at all. The tariff rate quota definition describes it as a two tiered tariff that only allows a limited amount of imports into a country. The tariff rate quota definition also states that the imports have this special rebate during a specified time period only.

The tariff rate quota scheme was developed by the WTO during the Uruguay Round Conference. The tariff rate quota scheme refers to the entire collection of regulations and how they are to be applied to respective imports. The tariff rate quota scheme gives a very detailed explanation about the taxes that are to be applied to various kinds of imports that include everything from Industrial goods, consumables, manufactured items and electronic goods. The tariff rate quota scheme includes details that foster minimal market access using tariffs that encourage international trade but at the same time allows countries to develop themselves along the lines of imports and exports. The tariff rate quota scheme covers all issues related to the different types of methods by which we administer tariff quotas. The tariff rate quota scheme also covers how tariffs were designed and what the future has in store for them.

The tariff rate quota administration includes orderly marketing which refer to the implementation of the TRQ’s as mentioned in the Schedule XX which is applicable to all goods that enter a country; limiting them so that they don’t disrupt the flow of domestically produced goods within a country. The next aspect of tariff rate quota administration entails issues surrounding inadequate supply caused by unforeseen situations; the government of a country may opt to increase the existing quantity of imports. These imports will be subject to the in-quota duty rate as mentioned in the TRQ’s. The next aspect of tariff rate quota administration is monitoring the quantity of domestic supply to determine when both domestic supply and imports may not be able to satisfy domestic demand. The tariff rate quota administration covers extensively all those items that are to be excluded from the TRQ’s if they are imported as samples, if they are imported by agencies or foreign embassies, or if the goods are needed for exhibition or commercial sampling. The tariff rate quota administration also details the modification of an item’s TRQ if it is reclassified under a new or different category. The tariff rate quota administration also mentions what has to be done in case of TRQ allocation and bilateral agreements.

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