Preferential tariff quotas
Definition of preferential tariff quotas
Tariff quotas are a trade policy tool that allows a predetermined volume of specific goods to be imported at a reduced or zero rate of duty.
Most tariff quotas operate on a "first come, first serve" basis, meaning that once the quota limit is reached, any further imports of the goods are subject to the standard or higher tariff rate.
What evidence is required to obtain tariff quotas?
To benefit from a preferential tariff quota, an importer must provide evidence that the goods meet the criteria set out in the trade agreement. Evidence typically includes:
- Proof of origin: Documentation proving that the goods originate from the country or countries covered by the preferential agreement.
- Quota order number: The specific quota order number must be included in the import declaration; this number identifies the particular tariff quota being claimed.
- Compliance with specific use conditions: For certain goods, preferential tariff quotas may only apply if the goods are put to a specific use. In such cases, written authorisation from HMRC is needed before claiming the tariff quota.
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