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Tariff Quotas are a form of EU preference under which limited
amounts of certain goods may be admitted to free circulation at
reduced, or nil rates of customs duty and, or CAP charges. Tariff
Quota limits may be expressed in units of weight, volume, quantity,
or value. Tariff Quotas are set for the whole of the EU, and claims
are allocated on a first come first served basis. Only ECSC (iron
and steel) quotas have a share initially allocated to a member state.
Most quotas are controlled entirely by the European Commission.
Tariff Quotas that are not expected to
exhaust quickly are termed "open" and claims to quota
relief can be accepted without security for duty. However, if they
are likely to be used up within a short period they are given a "critical
status". Goods subject to a critical quota may only be released
against security for the full duty. The EU may fix quantitative
ceiling levels limiting the total quantity of certain goods which
may be imported into the EU at preferential rates under the GSP
arrangements or Association Agreements during a calendar year. Ceilings
are not pre-allocated to member states. They are administered and
monitored on an EU-wide basis by the European Commission.
Many quotas, especially those covering
textiles are exhausted within a few days of opening. Once a quota
is exhausted the full rate of customs duty is usually applied. It
is therefore essential to lodge a formal claim for quota relief
with HM Customs before the end of the quota deadline. It should
be noted that belated claims against a quota that has been exhausted
will not be entertained, even though the quota may have been open
at the time entry was made for customs purposes. In order to claim
quota relief it is often necessary to produce documentary evidence
of origin (e.g., GSP Forms, handicraft certificates, etc) from the
supplier. Unless this evidence is produced the quota claim will
be refused.
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