Claiming tariff quotas to reduce import duties

Tariff quotas are a special mechanism for importing limited supplies of specific goods at a lower rate of customs duty than would normally apply. The quotas usually apply to imports from specific countries. Most tariff quotas operate on a first come first serve basis and when the quota runs out, the duty rate returns to normal.

There is no requirement to claim a tariff quota if there is a lower option or if the same rate of duty available under:

• other preference arrangements
• an import duty suspension

There are online tools available to check which goods are covered and a claim should ideally be made when the goods are entering free circulation. In certain circumstances it is possible to make a backdated claim up to 3 years after the goods have been imported but only if the tariff quota remains available.

HMRC’s new guidance on claiming quotas states that they can be:

• open – the quota is not expected to exhaust for some time and a lower rate of duty can be given automatically to any valid claim.
• critical – the quota may be nearing exhaustion or there is no information to base a prediction of how quickly it will be used up.
• quota exhausted – all claims will be rejected.

How to use the Trade Tariff tool or get help to classify your goods, so you pay the right Customs Duty and import VAT.

Looking to get your bookkeeping in order to make those imports a lot easier? Get in touch with us today and see how we can help you.