x You are an exporter, goods importer need to learn about the term quota and quota?
x You want to know what conditions need to be licensed, use valid quota?
X and you do not know which agency manages and procedures for granting quota licensing? How is quota quota classification in import and export?
In the framework of this article, Proship.vn we will ask what is the problem of quota? What is Quota in import and export? What are the quota? What is the condition for quota quota? Which agency manages and procedures for licensing quota ?, ... and from there give the answer in the most detailed and accurate way.
What is Quota? What is quotas? What advantages are there?
Imports/exports want to learn quota, quotas are, and update the following knowledge:
Quota - What is quota?
What is Quota in import and export? Quota is also known as a non -tariff measure, limited number or value of goods allowed to be imported or exported for a certain period of time.
Quota can be applied to a specific country, a group of water or global, and can be applied to a specific commodity or a group of goods.
What is quotas? Operating quotas as a barrier to free trade, in order to protect domestic manufacturing industries, control trade balance, or achieve other political and social goals.
* Example: A country applies tariff quotas for imported lines. In 50,000 tons of quota, imported roads will be entitled to a preferential tax rate of 5%. But for the amount of imported sugar exceeding 50,000 tons, the tax rate will increase to 80%.
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Advantages of quota - quota
Some advantages of quota must mention:
- Trade balance control:
By limiting import, quota will help reduce trade deficit and maintain the stability of the economy.
- Protection of domestic industry:
Quota helps domestic businesses have the opportunity to compete more fairly with imported goods, especially in the early stages of development. This helps protect jobs, promote domestic production and reduce dependence on foreign supply.
- Increase budget revenue:
In some cases, quota can be auctioned, creating a significant source of revenue for the state budget.
- Market stability:
Quota helps prevent excess supply, ensuring stable goods prices and avoiding the shocks for the market.
What conditions should be complied with to use quota - quotas?
What is the condition for using quota quota? In the following special cases, WTO allows member countries to apply quota quota:
- In case of protecting foreign financial situation and paying balance when the deficit of currency reserves or too little reserve;
- In case of temporary restriction, prevent or overcome the scarcity of a number of items such as food, food or other necessities;
- In the Government assistance program on promoting economic development, or restricting the protection of a number of industries with developing water;
- In cases to protect social ethics, protect human health, protect rare animals, environment and nature;
- In the case of national asset protection related to spiritual values such as culture, art, historical, archaeological, scarcity, ...
However, WTO also requires countries to have the following conditions:
- Avoid causing damage to the parties involved in signing, not giving unreasonable quotas for the import of products in minimum quantities;
- In poor and developing countries, they must gradually loosen these measures when the economy has recovered, then completely removed with the specific roadmap to implement the general principle of the WTO;
- Because the legality is not high and the usual time is only a year back, when the quota application is applied, countries must publish specific time and changes (if any).
Classification quota in import and export needs to know
What are quota types in import and export? Some common quota include:
Tariff-Rate Quota (Tariff-Rate)
This type of quota applies two different tax rates for the same type of goods. In quotas, goods are imported with lower tax rates (even 0). When the quota exceeds, goods are applied higher tax rates, usually the usual tax rate (MFN - Most Favored Nation).
Absolute quota quota (absolute quota)
As the simplest type of quota, stipulating a specific number or value of goods allowed to be imported or exported for a certain period of time. When reaching quotas, the import or export of such goods will be banned or applied higher tax rates.
Voluntary Export Restraint)
As an agreement between exporting countries and importing countries, in which the exporting country voluntarily limits the amount of goods exported to importing countries. Although voluntary, this quota usually applies under political or commercial pressure from importing countries.
There are also other types of quota such as:
- Product-Specific quota (Product-Specific quota):
Apply quotas to a specific commodity.
- Country-Specific quota):
Apply quotas to goods imported from a specific country.
- Seasonal quota (seasonal quota):
Applying quotas for a certain period of time in the year, usually to protect domestic production during the harvest season.
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Quota management agency and licensing procedure
Businesses and import -export businesses have questions about what is the quota management agency and what is the procedure for granting quota licensing in import and export? Proship has recorded and answered as follows:
Quota management agency
In Vietnam, the Ministry of Industry and Trade is the dominant agency about Quota. The Ministry of Industry and Trade is responsible for developing and implementing the Quota policy, granting import/export licenses for quotas and inspecting and supervising the implementation of Quota.
Quota licensing procedure
Enterprises need to submit an application for import/export of quotas to the Ministry of Industry and Trade or the authorized agency. Quota licensing applications include the following documents:
- Sale contract;
- Application for licensing;
- Transport documents (Bill of Lading, Airway Bill, ...);
- Other documents proving the origin (if any) such as the Certificate of Origin (C/O), the material import slip, the issue of the warehouse, ...
The quota licensing agency will conduct a review and decide on issuance or not licensing based on current criteria and regulations.
What is quota quota and what is the conditions for quota in import and export, what is the procedure for the issuance of Quota, ... has been answered in detail above. Any questions related to import and export services, customs declaration, multimodal transportation, bonded warehouse bonded warehouse rental, ... Businesses contact 0909 344 247 for support for service logistics support.
