What Is a Country Limit?

Export restriction policy refers to the government's policy to restrict exports for some purpose. Absolute export ban refers to the country's promulgation of related laws and regulations, which absolutely prohibits the export of certain types of products or technologies (sometimes targeted at specific exporting countries). At present such policy measures are rarely used.

Export restriction policy

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What is export restriction policy

Significance of export restrictions:

(I) Security purpose

The so-called security purpose means that if a certain type of product or technology is allowed

The specific measures of the export restriction policy are as follows:

(A) export is absolutely prohibited

Absolute export ban refers to the country's promulgation of related laws and regulations, which absolutely prohibits the export of certain types of products or technologies (sometimes targeted at specific exporting countries). At present such policy measures are rarely used.

(2) Export tariff system

The export tariff system is a tax system for export commodities that has been commonly used by various countries. Under current market conditions, countries have rarely used export tariffs to encourage exports.

(3) Export license system

This is currently an export restriction measure widely used in countries around the world. The so-called export license means that only licensed companies are allowed to export, and export is prohibited without a license. There are several types of export licenses:

1. Special export license. It refers to export licenses set for specific countries and specific products (or technologies). Such licenses are difficult to apply and strict controls are imposed. For example, the United States has divided other countries into eight groups, of which the export control of Group E countries is the most stringent, and exporters need to obtain special export licenses before they can export.

2. General export license. General export licenses refer to export licenses for all countries. Such licenses often involve only a very small number of commodities, and the state controls their exports. Applying for such permits is easier and is often "marketed". For example, the management of general export licenses in China adopts an auction system. That is, first set the maximum export volume for each commodity managed by the export license, then auction it publicly and allow secondary transactions. In this way, the license becomes a special kind of "power commodity".

3. Minimum export price limit. The minimum export price refers to the minimum price set by the country for the export of some commodities (generally resource-based commodities). Exports below the minimum price are prohibited. This kind of regulation is mainly to maintain the "limited" nature of the market, to enable the export commodities to have better terms of trade, and to avoid losses and waste caused by over-exploitation and over-sale of domestic resources.