Tariff and Non Tariff Barriers in Trade (Types of Non-Tariff Barriers)

Tariff and Non Tariff Barriers in Trade (Types of Non-Tariff Barriers)

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  International BusinessInternational Business 2 Topic: Non-TariffBarriers in Pakistan Presented to: Sir Rizwan Hamid Presented by: Mudassar Afzal Roll # AR523807
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  ACKNOWLEDGEMENT 3 I am thankfulto the ALLAH ALMIGHTY , the most Merciful and beneficent, by the assistance of Allah, I have accomplished my task. I would like to thanks all people who directly or indirectly helped me to achieve this target.
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  Barrier to TradeBarrierto Trade 4 A barrier to trade is a government-imposed restraint on the flow of international goods or services.
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  TariffTariff 5 The most commonbarrier to trade is a tariff—a tax on imports. Tariffs raise the price of imported goods relative to domestic goods (goods produced at home). A tariff is imposed upon imports to protect local industries and companies. ExampleExample: Govt. imposed tariffs to protect domestic automobile industry, sugar industry, cement industry and steel industry.
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  Non- TariffNon- Tariff 6 Non-Tariffmeasures include all measures, other than tariffs, the effect of which is to restrict imports, or to significantly distort trade. A form of restrictive trade where barriers to trade are set up and take a form other than a tariff. Nontariff barriers include quotas, levies, embargoes, sanctions and other restrictions, and are frequently used by large and developed economies.
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  Tariff Vs NonTariffTariff Vs Non Tariff 7  The purpose of both tariff and non tariff barriers is same that is to impose restriction on import but they differ in approach and manner.  Tariff barriers ensure revenue for a government but non tariff barriers do not bring any revenue. Import Licenses and Import quotas are some of the non tariff barriers.  Non tariff barriers are country specific and often based upon flimsy grounds that can serve to sour relations between countries whereas tariff barriers are more transparent in nature.
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  Types Of Non-TariffTypes Of Non- Tariff 8 i) Quota System a) Tariff/Customs Quota (b) Unilateral Quota (c) Bilateral Quota (d) Multilateral Quota ii)Product Standards iii)Domestic Content Requirements iv)Product Labelling v)Packaging Requirements vi)Consular Formalities vii)State Trading viii)Preferential Arrangements ix)Foreign Exchange Regulations x)Other Non-Tariff Barriers Health and safety regulations, technical formalities, environmental regulations, embargoes
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  Non- TariffNon- TariffBarriers in PakistanBarriers in Pakistan 9  Imports under loans, credits  Items on the negative list are banned items  Hazardous products  Customs valuation  Import licenses  Import and export documentation requirements  Temporary entry  Labelling/marking requirements  Food colors must carry fair and true labelling about the product  Prohibited imports
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  Stockholders' Equity (2)-Retained Earnings 10