ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An import quota is a type of trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time.

Detailed explanation-2: -Import quotas control the amount or volume of various commodities that can be imported into the United States during a specified period of time. Quotas are established by legislation, Presidential Proclamations or Executive Orders.

Detailed explanation-3: -(i) Tariff or Custom Quota: In the case of tariff or custom quota, a certain specified quantity of a commodity is allowed to be imported by the government of the importing country either duty free or at a low rate of import duty.

Detailed explanation-4: -Tariff quotas are limited amounts of specific goods that: you can import during specified periods at reduced or zero rates as against normal customs duties. the amount that you can import can be expressed in units of quantity, value, volume or weight.

Detailed explanation-5: -Tariffs are taxes that governments place on imported goods of a specific type. Quotas are import limits that prevent more than a set amount of a specific good from being imported into a country.