Q. What is 'Tariff-Rate Quota' scheme, recently mentioned in news??
Answer:
It allows a certain quantity of goods to be imported at a reduced tariff rate
Notes: India has approved the export of 8,606 metric tonnes of sugar to the United States for the US fiscal year 2025. This export is under the Tariff Rate Quota (TRQ) scheme, as announced by the Directorate General of Foreign Trade (DGFT).
The TRQ is a trade policy that permits a limited amount of goods to be imported at a lower tariff rate. Any imports beyond the set limit are subject to higher tariffs. The TRQ helps balance protecting domestic industries while fulfilling demand through imports.