EENI Global Business School

Import license, Quotas (Trade Restrictions)



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Syllabus of the Subject

Tariff-rate quotas (TRQ, Trade) Import licenses (Non-tariff Measures)

  1. Tariff-rate Quotas (TRQ) in Foreign Trade
  2. Import licenses
  3. Other prohibitions or import restrictions

Sample - Import licenses, Tariff-rate quotas (TRQ) and prohibitions (Non-tariff Measures):
Import license, Quotas, restrictions (Non-tariff Measures)


The objectives of the subject “Import licenses, quotas and prohibitions (Non-tariff Measures)” are the following:

  1. To understand the Tariff-rate Quotas and import licensing (non-automatic) concepts
  2. To study what types of Tariff-rate Quotas and licenses exist and how they can affect an exporter
  3. To analyze the other types of prohibitions or import restrictions

Continuing education (International Trade & Business)

Trade Facilitation Programs. TFA Agreement

Import licenses, quotas and prohibitions.

When a government wishes to restrain the quantity of products to be imported, it implements this type of non-tariff technical measures of control and / or prohibitions. These measures are usually implemented through the import licenses (not-automatic), quotas or prohibitions.

The WTO (GATT, WTO Agreement on Safeguards) prohibits, except in exceptional cases, this type of non-tariff measures.

The granting of an import license is not automatic, it may be discretionary or through a requirement by which certain criteria are met.

Licenses can be based on:

  1. Economic reasons
  2. Without specific ex ante criteria (discretionary license)
  3. Specific use
  4. Licensing linked with local production
  5. Political, religious-moral, cultural reasons

Tariff-rate quotas (TRQ) / Contingents

Import licenses for non-economic reasons are generally implemented through quotas (contingents).

A quota (tariff) is a restriction on the importation of a series of goods imposed by a Government. They are usually based on the quantities or the establishment of a maximum value.

A contingent (quota) can be of indefinite duration (permanent contingent, which can be allocated by countries or global) or temporary.

  1. Customs and WTO
  2. Sanitary and Phytosanitary Measures (SPS Agreement)
  3. Technical barriers to foreign trade (TBT Agreement)
  4. Pre-shipment Inspection (Agreement on Preshipment Inspection)
  5. Anti-dumping Measures and safeguards

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