Tariff & Non-Tariff Barriers

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 Tariff and Non-Tariff Barriers 


*Tariff Barriers*


Tariff barriers are taxes imposed on imported goods or services. The primary objectives of tariff barriers are:


1. *Protection of domestic industries*: Tariffs protect domestic industries from foreign competition by increasing the cost of imported goods.

2. *Revenue generation*: Tariffs generate revenue for the government.

3. *Regulation of imports*: Tariffs regulate the flow of imports and help maintain a balance of trade.


Types of Tariff Barriers:


1. *Ad Valorem Tariff*: A tariff imposed as a percentage of the value of the imported good.

2. *Specific Tariff*: A tariff imposed as a fixed amount per unit of the imported good.

3. *Compound Tariff*: A tariff that combines ad valorem and specific tariffs.


*Non-Tariff Barriers*


Non-tariff barriers are restrictions on international trade that are not in the form of tariffs. The primary objectives of non-tariff barriers are:


1. *Protection of domestic industries*: Non-tariff barriers protect domestic industries from foreign competition.

2. *Regulation of imports*: Non-tariff barriers regulate the flow of imports and help maintain a balance of trade.

3. *Protection of consumers*: Non-tariff barriers protect consumers from harmful or substandard products.


Types of Non-Tariff Barriers :


1. *Quotas*: Restrictions on the quantity of goods that can be imported.

2. *Licensing*: Requirements for importers to obtain licenses before importing goods.

3. *Standards*: Technical standards that imported goods must meet.

4. *Testing and certification*: Requirements for imported goods to undergo testing and certification.

5. *Embargoes*: Complete bans on the importation of certain goods.

6. *Subsidies*: Government support for domestic industries.

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