What do quotas and write-offs mean?

Quotas can be divided into broad and narrow senses. In a broad sense, quotas are a management and allocation of limited resources, a balance between supply and demand or the different interests of all parties. For example, when the demand for tourism or immigration in a certain place is excessive, the quota system can alleviate this pressure; when the supply of a certain product exceeds demand, the quota system can adjust the imbalance; and so on.

Quotas in a narrow sense refer to the definition within the scope of international trade, that is, a country (region) imposes quotas in order to protect its own industry from being damaged by excessive imports of products, or to prevent the over-export of its own products (region). Actively or passively control the quantity or value of product imports and exports. There are various ways of quotas. According to some statistics, there are more than 2,500 kinds of quotas implemented around the world. According to different standards, quotas include absolute quotas and relative quotas, tariff quotas and non-tariff quotas, active quotas and passive quotas, etc.

The quota system protects domestic industries at the expense of restricting international trade, so it has long been firmly opposed by advocates of trade liberalism. Since the General Agreement on Tariffs and Trade in 1947, GATT/WTO contracting parties/members have made tremendous efforts to reduce and eliminate the quota system. In every round of negotiations or every time a new country (region) concludes or joins, the relevant countries (regions) are almost always required to significantly reduce or cancel quotas.

According to the results of China's "WTO accession" negotiations, China has the right to continue to maintain the tariff quota management system for some products within 3-5 years after "accession", which mainly includes: 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 electromechanical products (refined oil, sodium cyanide, fertilizers, natural rubber, automobiles and Motorcycles and their parts, etc.). Generally speaking, these products subject to quota management should be canceled before 2005 or 2006. During this period, the annual quota volume will increase at a certain rate every year

Writing off: China is a country with foreign exchange controls and exports of goods , you must receive money (foreign exchange), and when you import goods, you have to pay MONEY (foreign exchange). So after exporting, after receiving the money, you take the bill to the State Administration of Foreign Exchange to indicate that the business is completed. This is called write-off. The tax refund can only be processed after verification.