Tariff Rate Quota allows a lower tariff rate on imports of a given product within a specified quantity and requires a higher tariff rate on imports exceeding that quantity.
For example, a country might allow the import of 6,000 cranes at a tariff rate of 20%. However, a tariff rate of 40% would apply for any crane imported above this quantity.
TRQs are used in several industries, including: textiles, steel, and agriculture.
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