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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.
Quotas are the limitations imposed by the government on what can be traded, the quantity that can be traded, how much needs to be paid for each item, and where the goods are being traded. They do not deal with limitations on how much is paid for the goods; thus, they have a neutral effect on the GDP of the country.