| Tariff and non-tariff barriers can affect your export | | | | allows local manufacturers to offer lower prices as |
| business. In most countries, the governments impose | | | | compared to the imported items (still the customers |
| these trade barriers and the general purpose behind | | | | are paying more than what they should be paying for |
| them is to limit (or sometimes totally ban) the | | | | this quality). |
| imports of some specific product. By imposing trade | | | | Non-Tariff Barriers: |
| barriers, the governments are looking to achieve | | | | All other restrictions on trade except tariffs are |
| some or all of these economic targets. | | | | known as non-tariff barriers. These rules, regulations |
| " Encouraging domestic production | | | | or policies are used for the same purposes (i.e. to |
| " Protecting local employees | | | | restrict imports and protect local industries), however |
| " Increasing revenues | | | | they cannot raise any revenue for the host country. |
| " Reducing consumption and reliance on exports | | | | Some of the common non-tariff barriers are quotas, |
| Whether they are able to achieve these targets or | | | | quality standards, complex regulations, import license |
| not, one thing is for sure, these trade barriers are | | | | or import bans. |
| going to hurt your business, if you are looking to | | | | Both tariff and non-tariff barriers can ultimately hurt |
| export to that country. Read a little to get an idea of | | | | the national economy in the longer run, they provide |
| what tariff and non-tariff barriers are. | | | | shield to even those under performing industries and |
| Tariff: | | | | manufacturers who are not competitive at all, hence |
| In simple words, this is the tax imposed on imported | | | | wasting the country resources and hurting |
| goods. In most cases the tax is collected at the | | | | consumers. World Trade Organization has been |
| moment some shipment arrives at ports. | | | | established in order to lower trade barriers all over |
| Governments normally force tariffs (or excise duty) | | | | the world, and to improve transparency and |
| to protect local industries and to raise their revenues, | | | | non-discrimination in international trade. 153 members |
| although many economists have debated against it. | | | | have joined till now, although no member country has |
| According to them these methods are faulty, | | | | shown total commitment in implementing rules and |
| because in the end it's the consumer who suffers at | | | | regulations that are decided at various conferences. |
| the hand of high prices and inflation. As an exporter | | | | Still as an international exporter you should try to |
| you'd be better off going for some country with | | | | target those foreign market where imports are not |
| minimum tariffs because you will loose the low cost | | | | discouraged in government policies. |
| advantage once you have to pay these taxes. Tariff | | | | |