| As if there aren't enough hurdles in the way of | | | | barriers that countries can use to block or restrict |
| importing and exporting goods, international trade also | | | | trade between countries. One of the other weapons |
| has to deal with the barriers imposed by | | | | used by governments is the quota system. This |
| governments. | | | | functions in a similar way to tariffs, except that |
| The most common form of trade barrier is the tariff. | | | | revenue is not generated for the government and |
| Tariffs are generally imposed to protect struggling or | | | | there is a great deal more bureaucracy involved. |
| new industries from competition but are often used | | | | Major issues with this type of barrier include - who |
| to prevent dumping, when the price of production in | | | | decides who gets to supply the goods for the quota |
| one country is lower than in another. Disagreements | | | | and who doesn't? Navigating a way through the |
| between countries over the protection they use for | | | | practical politics of quotas can be enough to put |
| their domestic industries forms a constant of | | | | many potential importers off the idea. |
| international relations. Tariffs also have a secondary | | | | There's a similar but more subtle effect when you |
| effect which is to ensure a steady flow of revenue | | | | begin to deal with import policy. If a government |
| to the government | | | | wishes to restrict the flow of certain goods, they |
| To find out if a product that you wish to trade has a | | | | can tie the process of import up with red tape by |
| tariff associated with it, you will need to contact the | | | | ensuring that there are so many bureaucratic |
| government department that is responsible for | | | | problems and forms to be filled in and departments |
| international trade. In certain cases, the shipping | | | | to get approval from, that importers just give up, |
| agent, freight forwarder or carrier who you are using | | | | although there is nothing officially stated that |
| to transport your goods will be able to inform you | | | | prevents the import or export in question. Onerous |
| which, if any tariff covers the goods in question. | | | | conditions on approval for import or export licenses |
| These companies may not be legally liable for any | | | | are a good example of this kind of officially hidden |
| mistake they make and, as tariffs can account for a | | | | barrier. |
| significant percentage of the cost of an import, it is | | | | Another very common type of barrier to trade are |
| as well to be certain of your financial and legal | | | | known under the general heading of non-tariff |
| obligations. Governments should provide clear | | | | barriers. These include restrictions that are bound up |
| guidance concerning tariffs and may even provide | | | | with domestic regulation, such as those governing the |
| assistance in calculating the charges. It is usually the | | | | specific content of products for health reasons. |
| importer who pays the tariff along with the other | | | | Despite the fact that there is a great deal of work |
| assorted charges and duties but this should be | | | | being done internationally to encourage free trade, |
| covered by your contract and the incoterms you | | | | with regrettable frequency, governments often act |
| have agreed upon. | | | | to reduce or impede trade in certain goods for |
| Unfortunately, tariffs are only one of the trade | | | | political reasons. |