Import Quota Example

Example of import quotas say for instance the united states limits the number of chinese car imports to 3 million per year. The import quota means physical limitation of the quantities of different products to be imported from foreign countries within a specified period of time usually one year.

Import Quotas Understanding How Import Quotas Work

The tariff or customs quota is a widely acclaimed measure.

Import quota example. Meaning of import quotas. Import quotas an import quota is a trade restriction on the quantity of a particular product that can be imported. Under this system import of a commodity up to a specified quantity is allowed to be imported duty free or at a special low rate of duty.

In this article we will discuss about 1. When governments impose a quota on a specific import their aim is usually to protect domestic suppliers. For example if country a imposes a limit on the number of cars imported from country b to say 5 000 per year it is limiting the supply which also raises the price thus helping domestic car makers.

Objectives of import quotas 3. Meaning of import quotas 2. But imports in excess of this fixed limit are charged a higher rate of duty.

Voluntary export restraints ver. This import quota on foreign car products will help the domestic car manufacturing companies to increase their production and establish their footprint in the united states market with maximum profit. For example a country may impose an import quota on the volume of the material of cloth that is to be imported.

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