What are Non-Tariff Barriers?
Non-tariff Barriers are non-tax measures used by the government of a country in order to restrict imports from foreign countries. It includes constraints that result in prohibition, formalities, or circumstances that make imports of commodities difficult and reduce market potential for foreign products. These are quantitative and exchange controls that have an impact on trade volume, pricing, or both. It might be in the form of laws, policies, practices, conditions, and requirements imposed by the government to limit imports.
Example of Non-Tariff Barriers:
- Import Quotas
- VERs, i.e. Voluntary Export Restraints
- Import Licensing
- Technical and Administrative Regulations
- Price Control
- Foreign Exchange Regulations
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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