Tariffs make money for the gov., quotas do not-Political aspect of tariffs, mercantilism. One such imposition is a An import quota, on the… Difference between import quota vs. import tariff. Import Quotas . Import Quotas (Import Licensing requirement) force importers to obtain government licenses for their imports. Other articles where Tariff quota is discussed: quota: Tariff quotas may be distinguished from import quotas. Quotas are limits on the quantities of imports of certain goods. The quantity of goods purchased by US consumers also corresponds to the quantity in the case of an import tariff. Tariffs and quotas both serve the purpose of protecting the domestic industry of a country in restricting the quantity of products imported or exported and also earn revenue for the government. Under the quota, the government limits the quantity of the product. 2). The new market price (p W quota in Fig. Tariff vs Quota. Different tariffs applied on different products by different countries. Quotas are different from import tariffs. A tariff-rate quota (TRQ) is a two-tiered tariff regime that combines two conventional policy instruments (import quota and tariff) to regulate imports.In its essence, a TRQ regime allows a lower tariff rate on imports of a given product within a specified quantity and requires a higher tariff rate on imports exceeding that quantity. Consider Figure 7.28 "Effects of a Demand Increase", which depicts a small importing country. A tariff quota permits the import of a certain quantity of a commodity duty-free or at a lower duty rate, while quantities exceeding the quota are subject to a higher duty rate. An import quota is an quantitative restriction that will limit the imports. The alternative to tariffs and quotas is free-trade. When governments impose restrictions on international trade, this affects the domestic price of the good and reduces total surplus. But under tariff, any a … Import Quota vs Import Tariffs. Free trade is … Meanwhile, import tariffs are levies on the price of imported products. A particular product might have a zero or a low tariff imposed on a certain quantity of imports and a higher tariff on imports above the set quota. 3) is the same as the price in the case of an import tariff (p W tariff in Fig. Conclusion. The sellers having quota license will be only allowed to import the specified quantity of the goods. Free-Trade. An import tariff is a tax imposed by the government on the import of certain products. Global Tariff Finder Tool: Customs Info User Guide (and video) FTA Tariff Tool A tariff or duty (the words are used interchangeably) is a tax levied by governments on the value including freight and insurance of imported products. Tariffs and quotas are both imposed on import and export products by the government of a country. Tariffs are paid to the customs authority of the country imposing the tariff. 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