QOTW 10 - Answer and more

Congrats to the ever consistent participants with the correct answers:
FYBCom: Zenaida and Alisha
SYBCom: Stella and Olivia

What are tariff barriers?

They are taxes imposed on goods when they enter or leave the national frontier or boundary.

What is the purpose of tariffs?

To protect the domestic industry by increasing the cost of imported goods.

Types of Tariffs: On the basis of Purpose:

Revenue Tariff: To provide state with the revenue. Levied on luxury goods.

Protective Tariff: To maintain and encourage those branches of home industry protected by the duties.

On the Basis of Origin and Destination:

Ad Valorem Duty: Levied as the percentage of the total value of the imported common duty.

Specific Duty: Levied per physical unit of the imported commodity.

Compound Duty: Levied a percentage ad valorem duty plus a specific duty on each unit of the commodity.

Types of Tariffs: On the Basis of Country-wise Discrimination:

Single Column Tariff: A uniform rate of duty is imposed on all similar commodities irrespective of the country from which they are imported.

Double Column Tariff: Two different rates of duty have been imposed.

Triple Column Tariff: Two or more tariff rates are levied on each category of commodity.

Non- Tariff Barriers Non-Tariff measures include all measures, other than tariffs, the effect of which is to restrict imports, or to significantly distort trade.

Different Types of Non-Tariff Barriers: 

(1) Specific Limitations on Trade: Quotas Import Licensing requirements Proportion restrictions of foreign to domestic goods (local content requirements)

(2) Customs and Administrative Entry Procedures: Valuation systems Antidumping practices Documentation requirements Fees 

(3) Government Participation in Trade: Government procurement policies 

(4) Export subsidies Countervailing duties Domestic assistance programs

(4) Charges on imports: Prior import deposit subsidies 

(5) Administrative fees Special supplementary duties Import credit discriminations Border taxes

(6) Others: Voluntary export restraints Monetary Barriers 

Impact of NTBs: Have emerged as potent Protectionist tool. It being less transparent, its difficult to identify and quantify its impact.