What are the barriers to International trade?



 The barriers to trade may be classified into tariffs and non-tariffs.
•        Tariffs - are taxes imposed by importing country on goods coming into the country. The tax is paid to the government of the importing country by the importer. The effect is to raise the price of foreign goods to the home consumer and thus increase the demand for home produced goods.
•        There are two basic kinds of Tariff exists:

Advalorem duties - is duty expressed as a percentage of the value of goods e.g. 10% of the import price.
 Specific duties - are expressed as a specific amount of currency per unit of quantity e.g. Tshs. 100 per pair
 Non tariff barriers (NTBs) are trade barriers that restrict imports but are not in the usual form of a tariff. Some common examples of NTB's are anti-dumping measures, which although they are called "non-tariff" barriers, have the effect of tariffs once they are enacted.
  There are different forms of NTBs, they are:

Specific Limitations on Trade:
•        Quotas
•        Import Licensing requirements
•        Proportion restrictions of foreign to domestic goods (local content requirements)
•        Minimum import price limits
•        Embargoes
q  Customs and Administrative Entry Procedures:
•        Valuation systems
•        Antidumping practices
–       Tariff classifications
–       Documentation requirements
–       Fees
q  Standards:
–       Standard disparities
–       Intergovernmental acceptances of testing methods and standards
–       Packaging, labeling, and marking
q  Government Participation in Trade:
–       Government procurement policies
–       Export subsidies
–       Countervailing duties
–       Domestic assistance programs
q  Charges on imports:
–       Prior import deposit subsidies
–       Administrative fees
–       Special supplementary duties
–       Import credit discriminations
–       Variable levies
–       Border taxes
q  Others:
–       Voluntary export restraints
–       Orderly marketing agreements

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