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Customs Glossary/Preferential Tariff Quota

Preferential Tariff Quota

Duties & taxes

PL: Kontyngent preferencyjny | DE: Präferenzielles Zollkontingent

Definition

A preferential tariff quota is a specified quantity (by weight, volume, or value) of goods importable into the EU at a reduced or zero duty rate under a free trade agreement or unilateral preferences (GSP). Once the quota is exhausted, imports are subject to the standard MFN rate or an out-of-quota preferential rate.

Preferential quotas are managed by the European Commission on a first-come, first-served basis or through import licence systems. Quota utilisation is published in TARIC and updated daily. Preferential quotas differ from WTO tariff quotas (erga omnes) in that they apply only to goods originating from countries covered by the trade agreement and require proof of origin.

Related Terms

Preferential Tariff Quota — Customs Glossary | Celna24.com | Celna24.com