Difference between Tariff and Non-tariff Barriers
Basis |
Tariff Barriers |
Non â Tariff Barriers |
---|---|---|
Meaning | Tariff Barriers are taxes or fees imposed by the government on imports in order to protect domestic industries and boost revenue for the government. | Non-tariff barriers include all the limitations other than taxes imposed by the government on imports in order to protect domestic enterprises and discriminate against new entrants. |
Permissibility | The World Trade Organisation authorised its members to impose tariff barriers but only at reasonable rates. | Import quotas and voluntary export barriers were eliminated by the World Trade Organisation. |
Nature | Tariff barriers are explicit in nature. | Non-tariff barriers are implicit in nature. |
Form | Tariff barriers are imposed in the form of Taxes and Duties. | Non-tariff barriers are imposed in the form of Regulations, Conditions, Requirements, Formalities, etc. |
Revenue | Tariff barriers generate revenue for the government. | Non-tariff barriers do not generate revenue for the government. |
Affects | Tariff barriers affect the price of imported goods. | Non-tariff barriers affect the quantity or price or both of the imported goods. |
Monopolistic Organisations | As the government charges tariff barriers, monopolistic organisationsâ prices can be controlled. | The monopolistic organisation charges high rates for low output. |
Profit | Profits made by the importers can be restricted through tariff barriers. | Importers can make high profits through non-tariff barriers. |
Example | Import Duties, Export Duties, Ad-valorem Duties, etc. | Import Licensing, Foreign Exchange Regulations, Import Quotas, etc. |
Difference between Tariff and Non-tariff Barriers
Tariff and Non-tariff Barriers are different from each other. Tariff Barriers are the fees charged in the form of a tax or duty. However, Non-Tariff Barriers are the non-tax measures used by the government of a country in order to restrict imports from foreign countries.
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