Non Tariff Barriers

NON TARIFF BARRIERS What argon non duty bulwarks? Non- tariff barriers argon in general defined as any impediment to trade other than tariffs. Non tariff barriers tin be classified into two groups Direct and In pack. (a)Direct Barriers ar barriers that specifically limit upshot of goods or services. Eg Embargoes and quotas EMBARGOES Embargoes atomic number 18 the most resileive of the direct non tariff barriers. They are either a complete expel on trade with a unlike nation or a cast out on sales or transfer of specific products. Eg The U. S. has imposed embargoes on Afghanistan, Cuba, Iraq and Iran. QUOTAS Quotas are a quantitative restriction on imports.They are ground on either value of goods or on quantity. They can be placed on all goods of a particular kind feeler from all countries, a group of countries or only one country. (b) confirmative Barriers are laws, administrative regulations, industrial/commercial practices and even social and heathen forces that eithe r limit or discourage sale or obtain of foreign goods or services in a domestic market. To restrict imports, countries may impose monetary or exchange controls on currencies. hostile governments can impose technical barriers to trade, for example, performance standards for products, product specifications or products safety.Eg japan has governmental restrictions on the use of food preservatives. It is a trade barrier in disguise, because foods without preservatives cannot be transported long distance. Import Licensing Schemes and Customs Procedures Some governments desire importers to apply for permission to import products, subjecting them to complex and discriminatory requirements. It is often pricy and time-consuming. Let us look at some tariff measures that are maintained against Indian exports 1)Country- The United States of America Product- Marine Products Non tariff barrier- change magnitude in-detailed inspections under the Bio-TerrorismAct. -Customs Bond requirement -M andatory labeling discriminating farm-raised & wild. -Punitive fines in strip of non- residency -Non-recognition of EIC certification 2)Country- Columbia Product- Pharmaceuticals Non tariff barrier Registration by Columbian Drug Control and Certification takes 11-12 months and is very tedious. Inspections are undertaken for environmental compliance and punitive fines are levied in case of non-compliance 3)Country- Bangladesh Product- Poultry products Non tariff barrier- Bangladesh continues to ban imports of poultry products despite India gaining the Avian influenza free status. )Country- Chile Product- Wheat, pale yellow flour, sugar Non tariff barrier- Complex price band system -A stripped import price (well above international and domestic prices) is stipulated. The Argentinean Customs can ask for validation of Indian Customs Invoice and a in force(p) set of original documents if they suspect that the invoiced value is less than the minimum import price established. 5)Countr y- China Service- Banking Non tariff barrier- China maintains a number of restrictive barriers which make investment in the banking sector very difficult.While foreign banks are allowed to open branches, regulatory treatment remains discriminatory. Branches of foreign banks are for example subject to higher capital norms than Chinese banks, which moreover are coupled with the number of their offices. Costs for establishing bank branches in China are therefore very high and foreign banks market share in China remains marginal REFERENCES external Business Law and its Environment- Richard Schaffer, Filiberto Augusti & Beverly Carle International Business- Francis Cherunilam