Tariff rate quotes (TRQ)
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Subject: Economy
Context:
Centre has decided to allow milk powder imports under Tariff Rate Quota (TRQ). It irked dairy farmers, who are already struggling with lower realizations amid excess supply and demand destruction due to Covid-19.
Concept:
- A TRQ is a mechanism that allows a set quantity of specific products to be imported at a low or zero rate of duty.
- They are established under trade agreements between countries.
- TRQ commitment does not apply any limits on the quantity of the import products.
- But it applies a higher rate of duty for that specific product exceeding quota limit.