Tariffs and non tariffs barriers in international trade

Tariffs and non tariffs barriers in international trade

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  Tariffs and Non-Tariffs Barriersin International Trade SUBMITTED TO: MS MONIKA SHARMA SUBMITTED BY: DEVYANI SRIVASTAVA BBA (6TH SEMESTER) 40115101717
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  TARIFF BARRIERS  Tariffis a customs duty or a tax on products that move across borders. The most important of tariff barriers is the customs duty imposed by the importing country. A tax may also be imposed by the exporting country on its exports. However, governments rarely impose tariff on exports, because, countries want to sell as much as possible to other countries.
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  TARIFF BARRIERS Important tariffbarriers are:  Specific Duty  Ad Valorem Duty  Combined or Compound Duty  Revenue Tariff  Protective Tariff  Sliding Scale Duty  Anti-dumping Duty
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  NON-TARIFFS BARRIERS  A nontariff barrier is any barrier other than a tariff, that raises an obstacle to free flow of goods in overseas markets. Non-tariff barriers, do not affect the price of the imported goods, but only the quantity of imports.
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  NON-TARIFFS BARRIERS Important non tariffsbarriers are as follow: • Quota System • Product Standards • Domestic Content Requirement • Product Labelling • Packaging Requirements • State Trading • Foreign exchange regulations
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  DIFFERENCE TARIFF NON-TARIFF 1. Govt.receives revenue. 1. No revenue receipts but only protection of domestic industry. 2. Customers authority do valuation procedures and classification. 2. No such problem. 3. Since import duty levied monopolistic organization are curbed. 3. Monopolistic organizations command high prices through low output. 4. Subject to legislative enaclment under terms of GATT. 4. Flexible and discusses at officials level 5. Simple to operate administratively. 5. More officials involved and less simple. 6. Favours efficiency of firm. 6. Discriminates against new comers.
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