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Definition. Import quota that allows a limited quantity of specified merchandise into a country (or withdrawal of already imported merchandise from a bonded warehouse) for consumption at a reduced duty rate during a specified period. Also called tariff quota.
Additional Effects of Tariffs and Quotas. Besides limits on goods and higher prices, tariffs and quotas can have other effects worth mentioning. Here are a few: 1  Limit unfair trade-Import quotas can help prevent the 'dumping' of foreign goods on a domestic country.