Import quotas

In the case of import quotas, the importers are prescribed by an authority (e.g. the Ministry of Commerce) to import in terms of quantity or value. The import quota system often means that importers notify the licensing authorities of larger quantities than they actually intend to import. That is why countries with import controls often require financial deposits amounting to a certain percentage of the import value (= cash deposit), so that imports are indirectly made more expensive and thus slowed down.