How is TRQ allocation determined?

USTR allocates TRQ quantities among countries based on historical trade patterns and trade agreement obligations. Within a country's allocation, individual import licenses may be distributed by the foreign government.

Are TRQ over-quota duties refundable through CAPE?

No. TRQ duties are administered under separate WTO/trade agreement provisions. Only IEEPA and Section 301 tariff overpayments are CAPE-eligible.

Trade Policy

What is Tariff-Rate Quota?

A two-tiered tariff system: lower rate for imports within the quota volume, higher rate for quantities exceeding it. In the context of U.S. customs and tariff recovery, understanding tariff-rate quota is essential for navigating the CAPE refund process and ensuring accurate duty assessment.

Definition

A tariff-rate quota (TRQ) is a two-tiered tariff system that applies a lower duty rate to imports within a specified quantity (the in-quota volume) and a higher rate to imports exceeding that quantity (the over-quota volume). TRQs are commonly used for agricultural products (sugar, dairy, beef, cotton) to balance domestic producer protection with some market access for foreign suppliers. The in-quota rate is often much lower than the over-quota rate — for example, sugar TRQs can have in-quota rates near zero and over-quota rates above 100%.

How Tariff-Rate Quota Relates to Tariff Refunds

TRQs are administered separately from IEEPA and Section 301 tariffs. The quota portion is not part of the CAPE program. However, goods subject to TRQs may also carry Section 301 surcharges, and the Section 301 portion would be CAPE-eligible.

Example

The U.S. sugar TRQ allows 1.5 million metric tons of raw sugar at an in-quota rate of $0.0066/kg. Imports above the quota face a rate of $0.3387/kg — a 50-fold increase. An importer with in-quota allocation pays minimal duties; one without pays the full rate.

Frequently Asked Questions

How is TRQ allocation determined?: USTR allocates TRQ quantities among countries based on historical trade patterns and trade agreement obligations. Within a country's allocation, individual import licenses may be distributed by the foreign government.
Are TRQ over-quota duties refundable through CAPE?: No. TRQ duties are administered under separate WTO/trade agreement provisions. Only IEEPA and Section 301 tariff overpayments are CAPE-eligible.

Legal References

19 U.S.C. § 1202 — Additional U.S. Notes (Quota Provisions)
WTO Agreement on Agriculture Article 4

Ready to recover your tariff overpayments?

Upload your ES-003 and see how much you could recover — no advance fees, no commitment.

Start your claim

Questions? support@tariffi.io