An import quota is a limit on the quantity of a good that can be imported into a country during a specified period.
Quotas are quantitative trade barriers: unlike a tariff, which raises the price of imports through a tax, a quota directly restricts physical volume. Governments may allocate quota licenses to companies, countries, or domestic industries.
Import quotas are often used to protect local producers from foreign competition, preserve jobs, or respond to political pressure. Their effects can include higher domestic prices, reduced consumer choice, and profits for holders of scarce import licenses.
A quota is not the same as an embargo. An embargo generally prohibits trade altogether; economically, a total import ban can be viewed as a zero-level quota. A tariff-rate quota combines both ideas by allowing a specified amount at a lower tariff and charging a higher tariff above that amount.