This document discusses various trade barriers, including tariff and non-tariff barriers. It defines tariff barriers as taxes or duties imposed on imported and exported goods. The main tariff barriers mentioned are export duty, import duty, specific duty, and ad-valorem duty. Import duty is levied to earn government revenue and protect domestic industries. Non-tariff barriers include import quotas, licensing requirements, product standards, labeling rules, and foreign exchange controls - all of which restrict imports in non-tariff ways. While tariff barriers are more transparent taxes, non-tariff barriers operate through more implicit regulations and conditions.

1. D E V I A H I LYA V I S H WAV I DYA L AYA
( I N D O R E )
S C H O O L O F CO M M E R C E
TO P I C - T R A D E BA R R I E RS
(TARIFF AND NON-TARIFF BARRIERS)
SUBMITTED TO:
MS. SURBHI JODHA
SUBMITTED BY:
AKASH DHANDORE
M.COM(AFC) IV
AFC/21/1002

2. What are Trade Barriers ?
 Trade barriers are the restrictions imposed by the
government on the movement of goods between
countries (Imports & Exports).
 Most trade barriers work on the same principle: the
imposition of some sort of cost on trade that raises the
prices or availability of the traded products.
 If two or more countries use trade barriers against each
other, then a trade war results.

4. Tariff is a tax or a duty on the products
that move across borders. The most
important of tariff barriers is the
customs duty imposed by the importing
country. Sometimes tax might also be
imposed on exporting products. The
most important tariff barriers are:-

5. 1.Export Duty:- An export duty is a tax levied by the country
of origin, on a commodity designed for use in other
countries. The majority of finished goods do not attract
export duty. Such duties are normally imposed on the
primary products in order to conserve them for domestic
industries. In India, export duty is levied on oilseeds, coffee
and onions.
2.Import Duty:- An import duty is a tax imposed on a
commodity originating in another country by the country for
which the product designated. The purpose of heavy import
duties to earn revenue to make imports costly and to provide
protection to domestic industries. Countries imports and
thereby remove the deficit in the balance e of payment.

6. 1. Specific Duty:- “Tariff levied on the basis of Units”. Specific duty
is based on the physical characteristics of goods. When a fixed sum
of money, keeping in view the weight or measurement of a
commodity is levied as tariff, it is known as specific duty. For
example, a fixed sum of import duty may be levied on the import
of every barrel of oil, irrespective of quality and value.
2. Ad-valorem Duty:- It is a tariff levied on the basis of the value of
the item. This duty is imposed “according to value”.
3. Compound Duty:- It is a tariff imposed on the basis of both the
vale and quantity..

7. Non-Tariff Barriers
Government also use other tools besides tariffs to
restrict trade. One types non-tariff barrier is the
import quota, or limits on the quantity of a certain
good that can be imported. The goal of setting
quotas is to limit imports to the specific amount of
a given product. most developing nations still rely
on tariff barriers as a way of raising revenues to
finance national projects while regulating
international trade with other countries.

8.  Quota system.
 Licenses.
 Import deposit.
 Product standards.
 Product Labeling.
 Packaging Requirements.
 Foreign Exchange Regulations.

9. BASIS FOR
COMPARISON
TARIFF BARRIERS NON-TARIFF BARRIERS
Meaning Tariff Barriers implies the taxes
or duties imposed by the
government on its imports, so
as to provide protection to its
domestic companies and
increase government revenue.
Non-tariff barriers cover all
the restrictions other than
taxes imposed by the
government on its imports,
so as to provide protection to
the domestic companies and
discriminate new entrants.
Permissibility World Trade Organization
allowed the imposition of tariff
barriers to its member nation
but at a reasonable rate only.
World Trade Organization
abolished the imposition of
import quotas and voluntary
export restraints.
Nature Explicit Implicit
Tariff Barriers Vs Non-Tariff Barriers

10. Form Taxes and Duties Regulations, Conditions,
Requirements, Formalities, etc.
Revenue Government receives revenue No revenue is received by the
government
Affects It affects the price of imported
goods.
It affects the quantity or price
or both of the imported goods.
Monopolistic
Organizations
As the government charges
import duty, monopolistic groups
can be controlled.
The monopolistic organization
charges high prices through low
output.
Profit High profits made by the
importers can be controlled.
Importers can make more
profits.

11. Thank You