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Quota associations

A quota association links quotas together.

If 2 quotas are linked, when a trader claims against one it has an impact on the other.

Quota associations define the link between one main quota and one or more sub-quotas. These are sometimes referred to as parent and child quotas.

Quota associations link 2 or more quota definitions. Quota definitions are the time periods during which the quota is available.

Measures and Regulations QON1 Quota order number 1 QD1 Quota definition 1 QON1--QD1 desc1 A quota order number is represented solely by a six digit number and an overall start and end date: the real work is done by the definition. QON1--desc1 QA12 Quota association (1 to 2) QD1--QA12 QA13 Quota association (1 to 3) QD1--QA13 desc2 A quota order number can have multiple definition periods, e.g from 1st Jan 2018 to 31st Dec 2018 and then repeated each subsequent year. The definition defines the available volume of goods accessible at the reduced in-quota rate. QD1--desc2 QD2 Quota definition 2 QA12--QD2 QON2 Quota ordr number 2 QD2--QON2 QD3 Quota association 3 QA13--QD3 desc3 A quota association links one quota’s quota definition period with that of another quota. QA13--desc3 QON3 Quota order number 3 QD3--QON3

As the diagram shows, one main quota may be lined with more than one sub quota via their definitions. This is primarily in use, and has been for many years, with the sheep, lamb and goat meat quotas.

Where quota associations are used

Product areas where quota associations are used include:

  • lamb, sheep and goat meat
  • beef
  • orange juice
  • clothing

How the data is structured

The following diagram shows the data model for quota associations.

Database Quota association Quota association main_quota_definition_sid int fk sub_quota_definition_sid int fk relation_type varchar(2) coefficient decimal Quota definition Quota definition quota_definition_sid int pk quota_order_number_sid int fk validity_start_date date validity_end_date date volume decimal initial_volume decimal monetary_unit varchar(3) fk, null measurement_unit varchar(3) fk, null measurement_unit_qualifier varchar(1) fk, null maximum_precision int quota_critical bool quota_critical_threshold int description varchar(500) Quota association:e->Quota definition:w Quota association:e->Quota definition:w Quota order number Quota order number quota_order_number_sid int pk quota_order_number varchar(6) validity_start_date date validity_end_date date Quota definition:e->Quota order number:w

A quota association links to a main definition (parent quota) and a sub-definition (child). These definitions define the quota order number.

The association will last as long as the definitions. In most cases, the definitions of the main and sub-quota are the same length.

How quota types are defined

Each quota association has a relation type and a co-efficient.

Relation types

There are 2 relation types:

  1. Equivalent - equal to the main quota
  2. Normal

Equivalent (EQ)

EQ is used to relate quota order numbers where volume or weight is to be interpreted differently via a co-efficient.

For example, the sheep and goat meat WTO quota. Details of the trade in sheep and goat meat are set out in the Customs (Tariff Quota) (EU Exit) Regulations on GOV.UK.

Equivalence associations are used in this set of quotas because there are 3 types of products to be traded. Each of these is represented by multiple commodities whose imports are to be treated differently, depending on the product.

When determining quota allocations, 1kg of meat off the bone counts less than 1kg of meat on the bone.

The table on page 6 of the reference document shows the effect and implementation of EQ quota associations.

The UK is allowed to import 228,254 tonnes of meat from New Zealand annually. The notes in the volume column are instrumental. ‘Carcass weight’ illustrates you need to do a calculation to determine what makes up a tonne.

In this case, bone-in carcases are counted as 1 tonne, boneless mutton/sheep counts as 1.81 tonnes and boneless lamb counts as 1.67 tonnes. These values are reflected in the co-efficients on the printed regulation and in the quota associations table in the database.

Normal (NM)

NM is used where weight or volume is the same across each related definition. A maximum weight/volume is applied to specific commodity codes in the sub-quota.

For example, a function known as ‘quota of quotas’ applies to Nicaragua and El Salvador. It applies a maximum import volume across multiple quotas.

There is a single quota (or quota of quotas) which a master volume is assigned to.

This is a blanket quota showing a maximum threshold: there are no commodities applied to the master quota. Traders are not expected to reference the quota order number on their declarations.

The quota then has a NM type relationship with the 34 individual quotas that are afforded a threshold by the main quota. Quota volumes are applied to the individual quotas.

The main quota limits the volume of imports, and each sub-quota applies a maximum volume to each commodity.

Co-efficients

Where a quota has been over–subscribed, the Rural Payments Agency applies a reduction co-efficient. This is the standard approach for dividing up the available quota.

The following rules apply:

  • the value assigned to the co-efficient field is always 1.00 where the relation type is ‘NM’
  • the values assigned to the co-efficient field are always something other than 1.00 where the relation type is ‘EQ’

Validation rules

Code Description
QA1 Uniqueness rule for the association between two quota definitions.
QA2 Validity contained rule for sub-quota validity periods, they must be contained by the validity period of the main quota.
QA3 When converted to the measurement unit of the main quota, the volume of a sub-quota must always be lower than or equal to the volume of the main quota.
QA4 Whenever a sub-quota receives a coefficient, this has to be a strictly positive decimal number. When it is not specified a value 1 is always assumed.
QA5 Whenever a sub-quota is defined with the ‘equivalent’ type, it must have the same volume as the ones associated with the parent quota. Moreover it must be defined with a coefficient not equal to 1. A sub-quota defined with the ‘normal’ type must have a coefficient of 1.
QA6 Sub-quotas associated with the same main quota must have the same relation type.
QuotaAssociationMustReferToANonDeletedSubQuota A Quota Association must refer to a non-deleted sub quota.
SameMainAndSubQuota A quota association may only exist between two distinct quota definitions.

Read the business rules for quotas in the system documentation.