A difference between a quota and a tariff is that with a quota the

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With a quota, the right to import the good is usually allocated and controlled by a government agency, which can then sell or lease this right to importers. This creates a scarcity of the right to import, which allows the person who has it to capture an extra gain in the form of higher prices or greater profits. In contrast, with a tariff, the extra gain in the form of revenue is collected by the government of the importing country, and this can potentially harm domestic consumers by raising the price of the imported good.

A Difference Between a Quota and a Tariff Is That