Non-tariff barriers: NTBS refers to quantitative restrictions imposed on import of goods. Non-tariff barrier are
1. Quantitative restrictions/Quota: importing country sometimes fixes the limit of quantity or volume of imports called ‘quota’ to be allowed from other countries. The quota is fixed for a given period for certain products and certain manufactures. There are 5 types of import quota including import licensing.
a. Tariff quota: it is the combination of both tariff and quota. Import of commodity up to certain specific quantity or volume may be allowed duty free and excess thereof may be charged higher duty.
b. Unilateral quota: in the case of unilateral quota, importing country unilaterally fixes a ceiling on the quantity of import of the commodity concerned. (Without consulting the exporting country).
c. Bilateral quota: quota limit normally is fixed bilaterally. A bilateral quota is the result from negation between the importing countries.
d. Mixing quota: under the mixing quota, producers are obliged to utilize domestic raw materials up to a certain proportion in the production of a finished product.
e. Import licensing: quota restrictions are generally administrated by means of import licensing. Under the import licensing system, prospective importers obliged to obtain an import license is necessary to obtain the foreign pay for the imports.
Import licensing has become a powerful device for controlling the duty of imports of particular commodities or aggregate imports.
2. Foreign exchange regulation
3. Technical and administrative regular
4. Consular formalities
5. Preferential arrangement.
