Types of Trade Barriers

1. Types of Trade Barrier: It is generally classified as import policies
reflected in tariffs, Para-tariffs and Non-tariff barrier.
 Tariff: The duties or customs imposed by a government on imports
or exports which raises the price of the good to the consumer. Also
known as duties or import duties, tariffs usually aim first to limit
imports and second to raise revenue. Typically tariffs tend to benefit
domestic producers and government and reduce consumer surplus,
the net welfare effects of a tariff on the importing country are
negative.
(Tariff Margin Calculation in Excel)
 Non-Tariff Barrier: Nontariff barriers include quotas, import
licensing regulations regarding product content or quality, and other
conditions that hinder imports like customs practices, standards,
testing, labeling, and various types of certification, lack of copyright
protection, restrictions on franchising, licensing, technology
transfer etc. One of the most commonly used nontariff barriers are
product standards, which may aim to serve as “barriers to trade.”
Other nontariff barriers include packing and shipping regulations,
harbor and airport permits, and onerous customs procedures, all of
which can have either legitimate or purely anti-import agendas, or
both. Sometimes, Non- Tariff Barrier may become more hinder to
trade than Tariff Barrier.

2.  Para-Tariff: It is a charge on an imported good instead of a tariff.
Para-tariff barriers are Countervailing duties (Excise duties), Special
Countervailing duties etc.
Types of Tariff
 Ad-Valorem Duty: A duty based on the value of imported items.
Ad-valorem as a percentage of import prices. Ad valorem duties
provide the least protection when imports are inexpensive and
greatest protection when imports are expensive results a fall in
volume. Example- If anyone wants to import a T-Shirt and he has to
count 10% duty on import price to NBR, this will be Ad-valorem
Duty.
 Specific Duty: It is a fixed amount duty per unit of an imported
item. Specific duties prevent a reduction in revenue when prices fall.
It has a positive impact on goods with unstable prices. Example- If
anyone wants to import a T-Shirt and he has to count $2/tk120 duty
per shirt to NBR, this will be Specific Duty.
 Simple Duty: A duty based either on the value of an imported item
or on the quantity of that imported item, i.e. Ad-Valorem or Specific
Duty. If any importer has to pay any one types of duty to import a
shirt it will be simple duty.
 Compounding Duty: A duty based on both the value of an imported
item & the quantity of that imported item, i.e. both Ad-Valorem &
Specific Duty. If any importer has to pay extra 5% duty on extra
amount of shirt after exceeding the range for specific duty quota.

3. Dumping Types:
 Sporadic dumping: Occasional sale of a commodity at below cost
in order to unload an unforeseen and temporary surplus of the
commodity in the international market without reducing domestic
prices.
 Predatory dumping: Temporary sale of a commodity at below its
average cost or a lower price abroad in order to derive foreign
producers out of business. After driving foreign producers domestic
producers enjoy monopoly power in the trade market.
 Persistent dumping: A practice of selling a product below its
production cost.
Remedies/Measures:
Find out why they are dumping
 Anti-dumping duty: To captured international market and take
monopoly power. Duty for 5 years
 Countervailing duty: if that are subsidized Products. Duty for 5
years
 Safeguard: to protect excess imports and protect domestic Industry.
Duty for 5 years
-Complain to Bangladesh tariff commission
-To follow WTO rules