Tariff-Rate Quota (TRQ)

A tariff-rate quota lets a set quantity of a product enter at a low 'in-quota' duty rate; once that volume threshold fills for the period, additional imports still enter but pay a much higher 'over-quota' rate. It is not a hard cap like an absolute quota — you can always import more, you just pay more once the quota fills. For example, a foreign steel supplier might ship the first block of metric tons at a reduced rate, then everything above the ceiling gets hit with the full Section 232 rate of 50%. TRQs are administered first-come-first-served or by license, so importers race to file entries early in the quota period. It matters because timing your entry before the quota fills can be the difference between a low base duty and a punitive one on the exact same goods.