15/05/2026
What is Tariff Rate Quota (TRQ)?
A Tariff Rate Quota (TRQ) is a trade policy mechanism that allows a specified quantity of a product to be imported at a lower tariff rate, while imports beyond that threshold are subject to significantly higher duties. For example, India may permit the import of a fixed quantity of a commodity at a concessional duty, after which higher tariffs apply—directly impacting cost and market competitiveness.
In India, TRQs are administered by the Directorate General of Foreign Trade (DGFT), which issues quota licenses, while Customs authorities enforce applicable tariffs at the border.
India applies TRQs across sensitive sectors, including dairy products, edible oils, pulses, sugar, and certain agricultural commodities imported from abroad.
Purpose of TRQs:
- Protect domestic producers by limiting low-duty imports
- Ensure availability of essential commodities
- Meet international trade obligations (e.g., WTO commitments)
- Provide market access to partner countries in FTAs
Key Features of Tariff Rate Quota (TRQ):
Dual Tariff Levels: Lower duty applies within the quota limit, while higher tariffs are charged once the quota is exceeded
Quota Administration: Licenses are issued to eligible importers for accessing the concessional quota
Quota Volume: Import limits are fixed annually by the government or defined under trade agreements
Trade Facilitation: Enables controlled imports to meet demand without disrupting domestic markets
At Omega QMS, we support businesses in navigating TRQ regulations, securing DGFT licenses, and optimising import strategies to ensure compliance and cost efficiency.
Email: [email protected]
Phone: +91-11 41413939 (100 Lines)
Website: www.globalomega.com