Tariff Quotas and Duty Suspensions – How to Claim a Reduced Rate

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How suspensions differ from tariff quotas

Both autonomous tariff suspensions and tariff quotas are a departure from the standard rate of duty and are intended to make it easier for businesses to obtain raw materials, semi-finished products or components that cannot be sourced in sufficient quantities from EU producers.

• Tariff suspension – full or partial removal of duty without a quantity limit. The basis is Article 31 TFEU; it applies to raw materials, semi-finished products or components not available in the EU and to a precisely described good, often down to the level of a specific technical use.
• Tariff quota – a reduced or zero rate of duty, but only until a set volume of imports in a given period (e.g. a year) is used up. After the limit is exhausted the standard rate of duty applies until the next quota period opens.

Both instruments are managed centrally and published in the EU Integrated Tariff TARIC, in the QUOTA database (for quotas) and in the list of customs duty suspensions on certain goods maintained by the European Commission.

Types of tariff quotas

In practice, you will come across quotas that are:

• preferential – arising from EU trade agreements; they require proof of origin of the goods;
• agricultural, managed on the basis of import licences – access depends on obtaining a licence before importing;
• managed on a "first come, first served" basis (Articles 49–54 of Implementing Regulation (EU) 2015/2447) – allocated on the basis of requests contained in customs declarations.

Current quota balances are published by the European Commission in the QUOTA database. The rules for managing quotas in chronological order are in Articles 49–54 of Implementing Regulation (EU) 2015/2447.

How to check whether a quota is available

Before lodging an import declaration, it is worth checking in TARIC (for the EU) or the UK Trade Tariff (for the United Kingdom) whether a given CN/commodity code is covered by a current suspension or quota, what the quota order number is and what percentage of the limit has already been used. The QUOTA database shows quota balances, which lets you assess the risk that the limit will run out before the goods are presented for clearance.

How to claim the reduced rate in a customs declaration

To apply a suspension or quota, the customs declaration must contain a valid quota request – with the order number and the quantity requested; mere acceptance of the declaration is not such a request. The European Commission allocates a "first come, first served" quota in order of the dates of acceptance of declarations, no earlier than the second working day after the declaration is accepted (Article 51(2) of Regulation 2015/2447). If requests relating to declarations accepted on the same day exceed the available balance, allocation is made pro rata (Article 51(4)). Where the quota is already exhausted, duty is charged at the standard rate – even though the goods met the substantive conditions for the preference.

The UK side

The United Kingdom operates its own tariff quotas, independent of the EU ones. "First come, first served" quotas are managed by HMRC; quotas with a number beginning "054" are licence-based and managed by the Rural Payments Agency. The quota number is entered in box 8/1 of the declaration in the CDS system, and the balance can be checked in the quota search tool in the UK Trade Tariff. According to HMRC guidance, a quota claim can also be made up to 3 years after import if the quota is still available (GOV.UK: Claiming tariff quotas). Some quotas apply only to goods put to a specific use (Authorised Use) and need HMRC's written approval beforehand. Businesses trading on both sides of the Channel must check the availability of preferences separately for each direction – a quota applying in the EU does not carry over to the UK side and vice versa. UK tariff measures for a specific good are checked in the UK Trade Tariff.

Who can apply for a new suspension or quota

Autonomous suspensions and tariff quotas in the EU are based on Article 31 TFEU. A business submits its application through the designated central office in its Member State, which checks it and forwards it to the European Commission. The application must show that the good – a raw material, semi-finished product or component – is not available in the EU. Applications are considered in reviews carried out twice a year (European Commission: autonomous tariff suspensions and quotas). Suspensions cover raw materials, semi-finished products and components, not finished goods; the procedure requires a substantive economic justification.

Preferential quotas in trade agreements

A separate category is made up of quotas provided for in free trade agreements and preferential agreements, e.g. for certain agri-food products imported from third countries. In their case, the condition for obtaining the reduced rate is not only the availability of the quantity limit but also the presentation of appropriate proof of origin of the goods (e.g. a certificate or a statement on origin) – being within the limit is not enough if the goods do not meet the rules of origin laid down in the given agreement.

Monitoring the limit and what happens when it is exhausted

Because quota use changes continuously, check the current balance in the QUOTA database before a larger shipment rather than relying on the position from several weeks earlier. A newly opened "first come, first served" quota is not allocated before the 11th working day after publication of the act opening it (Article 51(5) of Regulation 2015/2447).

Once the limit for a given period is used up, the goods can still be imported, but only at the standard rate – trade is not halted, only the amount of duty due changes. Quota periods and the opening dates of subsequent tranches follow from the act establishing the given quota. Companies for which using a quota matters significantly in cost terms should track these dates in the QUOTA database (EU) or in the quota search tool of the UK Trade Tariff (UK).

The importance of correct tariff classification

Because both suspensions and quotas are assigned to very precisely defined CN codes – sometimes covering only a particular technical use or product parameters – incorrect tariff classification of the goods is one of the main reasons for refusal to apply the preference. Before lodging a declaration it is worth checking the description of the tariff measure in TARIC word by word and, in case of doubt, considering applying for binding tariff information (BTI), so as to be sure of the correct code before starting regular imports under a given quota.

Critical quotas and the queue of declarations

A "first come, first served" quota becomes critical once 90% of its volume has been used; a quota opened for less than 3 months, among others, is critical from the day it opens (Article 53 of Regulation 2015/2447). The quota status (critical/non-critical) and the current balance can be seen in the QUOTA database – it is worth checking them before lodging a declaration for a large quantity of goods, because with a quota close to exhaustion there is a higher risk that the request will not be fulfilled in full.

The role of a customs agent in using preferences

Because correct application of a quota or suspension requires precision in tariff classification, knowledge of the current state of use of the limit and timely lodging of the declaration at the right moment, importers often hand this part of the process to a customs agent. The agent can check the code and the balance in the QUOTA database and prepare the declaration so that the quota request is correct from day one.

See also related guides

• CN codes 2026 – how to find the commodity code
• How to calculate duty and VAT when importing from the UK
• Binding Tariff Information (BTI)
• TARIC: what it is and how to check a code
• How to calculate the customs value of goods

If you want to check whether your goods can benefit from a quota or customs suspension, contact us.

Frequently asked questions