Full formBusiness & Corporate
TRQstands forTariff Rate Quota
Full Form of TRQ
What is TRQ?
Tariff Rate Quota is a trade policy mechanism that allows a specified quantity of imports to enter a country at a lower or zero tariff rate, while any imports exceeding that quota are charged a higher duty. It combines elements of both tariffs and quotas, giving countries flexibility to protect domestic industries while still allowing access to essential or competitive imports. In India, TRQs are administered by the Directorate General of Foreign Trade under the Ministry of Commerce and Industry, and are commonly applied to commodities such as edible oils, pulses, and certain agricultural products to balance the interests of domestic producers and consumers. The system is frequently used when India negotiates free trade agreements with partner countries, including ASEAN, Japan, and South Korea, where preferential access is granted within agreed quantitative limits. TRQs are also relevant in India's engagement with the World Trade Organization framework, where bound rates and quota administration are regularly discussed. For aspirants preparing for UPSC Civil Services, RBI Grade B, or other competitive examinations, understanding TRQs is important as questions on international trade policy, WTO agreements, and India's foreign trade strategy frequently appear in the economy and current affairs sections.
TRQ का फुल फॉर्म
टैरिफ दर कोटा
Example
India has set a tariff rate quota of 2.5 lakh tonnes for the import of refined palm oil at a lower duty this fiscal year to ease domestic supply pressures.
TRQ — frequently asked questions
What is the full form of TRQ?
TRQ stands for Tariff Rate Quota, a trade policy tool that applies a lower tariff on imports up to a specified quantity and a higher rate on quantities beyond that limit.
How is TRQ used in India?
India uses TRQs to regulate imports of sensitive commodities like edible oils and pulses, and to grant preferential market access under free trade agreements with countries such as ASEAN, Japan, and South Korea.
Which body administers TRQs in India?
The Directorate General of Foreign Trade under the Ministry of Commerce and Industry administers tariff rate quotas in India, often in coordination with relevant commodity-specific ministries.