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A Tariff is tax imposed on imported goods and services by a country. Tariffs are used to restrict trade, as they increase the price of imported goods and services, making them more expensive to consumers.

Governments may impose tariffs to raise revenue or to protect domestic industries from foreign competition, since consumers will generally purchase foreign-produced goods when they are cheaper. While consumers are not legally prohibited from purchasing foreign-produced goods, tariffs make those goods more expensive, which gives consumers an incentive to buy domestically produced goods that seem competitively priced or less expensive by comparison.

Every exporter must comply with two basic groups of requirements:

  • Customs tariffs
  • Non-tariff measures

A tariff is a tax on imports or exports, and will be dealt with in a separate document.
Non-tariff measures (NTM) can affect both imports and exports and are divided into technical and non-technical measures and are generally defined as policy measures other than ordinary customs tariffs.

Non-Tariff Measures

In the following table, the UNCTAD classification of the different forms of Non-Trade Measures (NTM) for both imports and exports is shown. Then, a detailed explanation is given for each Chapter.


Affects

Type

Chapter

Measure

Imports

Technical measures

A

Sanitary and phytosanitary measures (SPS)

B

Technical barriers to trade (TBT)

C

Pre-shipment inspections and other formalities

Non technical measures

D

Trade protective measures

E

Non-automatic licensing and quotas, prohibitions, quantity control measures

F

Price control measures, including additional taxes and charges

G

Finance measures

H

Measures affecting competition

I

Trade-related investment measures

J

Distribution restrictions

K

Restrictions on post-sales services

L

Subsidies affecting trade

M

Government procurement restrictions

N

Intellectual property

O

Rules of origin

Exports

P

On export measures only