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Quota suspensions

Once they have been deployed, quotas may be halted through one of two methods: blocking and suspensions.

Quota suspensions invalidate quotas.

If quotas are suspended they are not available to traders. They do not appear in the Trade Tariff Service.

Suspensions are only applicable to first come, first serve quotas. Learn more about quotas.

Why suspensions are used

Quota suspensions are used for a variety of reasons. One reason is if the admin costs of running a quota mean there’s no benefit in doing so while the MFN rate is equal to or less than the in-quota rate.

For example, quota 09.0792 runs annually from 1 January to 31 December on commodity code 0303510000.

The MFN rate is 15% all year round, except for the period between 15 February and 15 June, where it’s 0% (tariff free).

The quota is suspended for the period where the MFN is zero. This is because a trader will not gain anything by applying to use a quota during this period.

Where quota suspensions are used in the Tariff

A quota order number is made up of many definition periods.

Definition periods may be of any length. Usually, they last no longer than a year. The most typical lengths are annual and quarterly.

A quota suspension is defined against a quota definition period.

The suspension period must fit within the definition period. It must not straddle the boundary of the definition. If you need to straddle a boundary, you must create 2 suspensions.

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Quota blocks stop quota allocations being taken for a limited time.

Quota blocks are put in place to allow HMRC to assess the demand for a quota and make decisions about how to allocate it.

Claims can still be made against a quota during a quota block, but the allocation decision will be delayed. This is unlike quota suspensions, which are not available to traders to claim against.

Quota blocks are only applicable to first come, first serve quotas. Learn more about quotas.

How long quota blocks last

Usually a quota block lasts for 2 or 3 weeks.

For example, a quota starts on 1 January and runs until 31 December. The decision is taken to place a block on the quota for the first 15 days. This allows HMRC to make an assessment on potential usage by taking allocation requests but not actually allocating the balance. This gives smaller traders and new entrants an opportunity to take advantage of the reduced rate.

Why quotas are blocked

The following table shows the reasons for quota blocks.


ID
Reason
Count

1
Block the allocations for a quota due to a late publication.
1637

2
Block the allocations for a quota after its reopening due to a volume increase.
82

3
Block the allocations for a quota after its reopening due to the reception of quota return requests.
1665

4
Block the allocations for a quota due to the modification of the validity period after receiving quota return requests.
7

5
Block the allocations for a quota on request of a MSA.
3

6
Block the allocations for a quota due to an end-user decision.
69

7
Block the allocations for a quota due to an exceptional condition.
178

8
Block the allocations for a quota after its reopening due to a balance transfer.
8

Where quota blocks are used in the Tariff

A quota blocking period usually coincides with the start of a definition period.

A blocking period must also fit within a definition period. It must not straddle the boundary of the definition. If you need to straddle a boundary, you must create 2 blocking periods.

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Every quota order number is divided into many quota definition periods, each with its own balance and measurement unit, and which must all have a start and end date. Quota blocks and suspensions are assigned against specific quota definition periods, rather than against the order numbers, and their periods must be within that of the associated quota description period.

Database Quota Definintions Quota Definintions Quota Definition SID int pk Description varchar(255) Measurement Unit Qualifier Code char(1) Monetary Unit Code char(3) Critical Threshold int Critical State bool Maximum Precision int Measurement Unit Code char(3) Initial Volume decimal Volume decimal Quota Order Number ID char(6) Quota Order Number SID int fk Validity Start date Validity End date Quota Blocking Periods Quota Blocking Periods Quota Blocking Period SID int pk Quota Definition SID int pk Blocking Start Date date Blocking End Date date Blocking Period Type int Description varchar(255) Quota Blocking Periods:e->Quota Definintions:w Quota Suspension Periods Quota Suspension Periods Quota Suspension Period SID int pk Quota Definition SID int pk Suspension Start Date date Suspension End Date date Description varchar(255) Quota Suspension Periods:e->Quota Definintions:w

For both blocks and suspensions there are three fields that must be defined, the associated quota definition SID, the start date and the end date. Each also had an optional description field where additional information on the block or suspension and the reasons behind it can be given. In the case of quota blocks you must also define the blocking period type, from the eight listed earlier.

Validation rules

Code Description
BlockingOnlyOfFCFSQuotas Blocking periods are only applicable to FCFS quotas.
QBP2 The start date of the quota blocking period must be later than or equal to the start date of the quota validity period.
QSP2 Validity contained rule that validity period of the quota must span the quota suspension period.
QuotaBlockingPeriodMustReferToANonDeletedQuotaDefinition A Quota Blocking Period must refer to a non-deleted Quota Definition.
QuotaSuspensionMustReferToANonDeletedQuotaDefinition A Quota Suspension must refer to a non-deleted Quota Definition.
SuspensionsOnlyToFCFSQuotas Quota suspensions are only applicable to First Come First Served quotas.

Read the business rules for quotas in the system documentation.