You are on page 1of 5

INTRODUCTION

Non Tariff Barriers


The issue of non tariff barriers crops up because of the
gearing defects of tariffs.
Tariffs that at the imposition of tariff leads to bringing
about the gains to the imposing country but at the same
time it reduces the volume of trade.
At the highest of the high tariff the losses will be more
than the gains .

Concept
The measures which are used other than
tariffs to the restrict imports get collectively
referred to as non-tariff barriers.
These are direct measures of import
restrictions.
The setting up if GATT and WTO led to
progressive reduction in tariffs.
The non-tariff barriers include a cafeteria of
Trade barriers

Types of Non Tariff


Barriers
Specific Limitations on Trade : It includes the
quotas Import Licensing requirements,
Proportion restrictions of foreign to domestic
goods
Customs and administrative Entry Procedures.
Standards
Government on Imports
Charges on Imports

LICENSES
License is the most common
instruments of direct regulation of
imports are licenses and quotas.
At most all industrialized countries
apply there Non-Tariff methods
The license system requires that a
state issue permits for foreign trade
transactions of import and export
commodities included in the lists of
licensed merchandises

Quotas
A quota is a limitation in value or in physical
terms, imposed on import and export of certain
goods for a certain period of time.
It is also an important instrument to restrict
trade as far as Non-Tariff barriers are
concerned .

You might also like