What is a quota?

Question 2: What does quota mean?

Quotas can be broadly defined and narrowly defined. Broadly speaking, quota is a kind of management and distribution of limited resources, and it is a kind of balance between unequal supply and demand or different interests of all parties. For example, when the demand for tourism or immigration in a certain place is too strong, adopting a quota system can alleviate this pressure; When a product is in short supply, the implementation of quota system can adjust the imbalance; Wait a minute.

Narrow quota refers to the definition in the field of international trade, that is, a country (region) actively or passively controls the import and export quantity or value of its products in order to protect its industries from excessive import or prevent its products from excessive export. There are many ways of quota. According to statistics, there are more than 2,500 kinds of quotas implemented worldwide. Quotas can be divided into import quotas and export quotas.

Import quotas can be divided into absolute quotas and tariff quotas according to management methods. Absolute quota refers to setting a maximum import quantity or amount for certain commodities in a certain period of time. Once this maximum quantity is reached, imports are not allowed. Absolute quotas can be divided into two forms. First of all, "global quotas" is adopted, which is suitable for commodities from any country or region. The competent authority shall grant a certain quota according to the importer's application or the import performance in the past period until the total quota is issued; Second, adopt "country quotas", that is, allocate quotas according to countries and regions in the total quota. If different countries and regions exceed the prescribed quotas, they are not allowed to import.

Tariff quotas do not absolutely limit the import quantity of commodities, but give a certain number of imported commodities low tax, tax reduction or duty-free treatment within a certain period of time, and impose higher tariffs or additional taxes and fines on imported commodities exceeding this quota.

At present, dozens of mechanical and electrical products and general commodities in China are subject to import quota management.

Export quotas can be divided into "automatic" export quotas (passive quotas) and active quotas. Among them, the "automatic" export quota means that the exporting country or region "automatically" sets the export quota for certain commodities in the country within a certain period (usually three years) at the request or pressure of the importing country. Self-controlled export within a limited quota is not allowed. In essence, this is a passive quota that has to be implemented, so put quotation marks on the word "automatic".

Active quota refers to the quota export of some export commodities by exporting countries or regions according to the domestic and international market capacity.

At present, a considerable number of commodities subject to active quota management in China are superior export commodities or monopoly commodities in the international market, which have a large profit margin and mostly involve export-oriented industries. The commodities subject to passive quota management are mainly textiles. At present, China implements quota export license management for 54 categories, 68 kinds and 343 commodity codes.

The quota system protects domestic industries at the expense of restricting international trade, so it has long been resolutely opposed by trade liberalism advocates. Since GATT 1947, the contracting parties/members of GATT/WTO have made great efforts to reduce and cancel the quota system. In each round of negotiations or when a new country (region) concludes or joins, almost all countries (regions) concerned are required to substantially reduce or cancel quotas.

According to the negotiation results of China's accession to the WTO, China has the right to maintain the tariff quota management system for some products within 3-5 years after its accession to the WTO, mainly including: some agricultural products (wheat, corn, rice, soybean oil, rapeseed oil, palm oil, cotton, sugar, etc. ); Wool and tops; Some textiles (passive distribution); Other chemical or mechanical and electrical products (refined oil, sodium cyanide, chemical fertilizer, natural rubber, automobiles and motorcycles and their parts, etc.). Generally speaking, these products subject to quota management should be cancelled before 2005 or 2006, during which the quota will increase at a certain rate every year.