File Name: difference between tariff and non tariff barriers writer.zip
If one considers only legal trade formally recorded in yearly international trade flows of Bangladesh, then India comes up as the second largest source of imports coming into Bangladesh after China.
Tariff , also called customs duty , tax levied upon goods as they cross national boundaries, usually by the government of the importing country. The words tariff , duty , and customs can be used interchangeably. Tariffs may be levied either to raise revenue or to protect domestic industries, but a tariff designed primarily to raise revenue also may exercise a strong protective influence, while a tariff levied primarily for protection may yield revenue. Gottfried von Haberler in The Theory of International Trade suggested that the best way to distinguish between revenue duties and protective duties disregarding the motives of the legislators is to compare their effects on domestic versus foreign producers. See protectionism.
If one considers only legal trade formally recorded in yearly international trade flows of Bangladesh, then India comes up as the second largest source of imports coming into Bangladesh after China. The flow of smuggled goods from India into Bangladesh is also substantial, and there is a popular belief among the knowledgeable quarters that the flow of smuggled goods from India may not be far behind in value compared to the legal trade flow from India into Bangladesh.
In Table 1, we present the official figures of the yearly flows of legal imports from India to Bangladesh and the yearly flows of exports from Bangladesh to India in recent years. From the figures presented in the table, we can say that Bangladesh's yearly legal import flow from India is more than ten times the legal export flow to India from Bangladesh on average.
Knowledgeable quarters claim that the flows of smuggling of goods from India to Bangladesh carries almost the same type of imbalance compared to the value of smuggled goods from Bangladesh to India, though the actual values of those two flows cannot be accurately gauged for obvious reasons.
This hugely lopsided trade balance favouring India creates a lot of hue and cry in the political circles of Bangladesh.
But, it should be appreciated that Indian goods are preferred by the importers not as any particular favour to India, but because of cost and profit considerations, convenience and suitability. On the other hand, Bangladesh has got a very narrow basket of exportable items for the Indian market, though some new export items of Bangladesh are being added to the list every day.
We will have reasons to complain if tariff and non-tariff barriers are deliberately put up on the Indian side to discourage some genuine export items from Bangladesh. In the article, I have presented a brief description of the non-tariff barriers especially hurting Bangladesh-India legal export trade, which has been compiled from my field notes made during field tours to six major land ports of Bangladesh in the year for an ongoing research project and recent newspaper reports and columns written by experts and business leaders of Bangladesh on the issue.
Therefore, it can be said that the groundwork for developing a vastly expanded scenario of cooperation in the whole eastern South Asia sub-region has been carried forward and proceeding, though not as rapidly as desirable, during the past year running up to May when the present article is written.
The major non-tariff barriers are as follows: 1. Bangladesh's main export items cannot get access to Indian market because they are included in India's sensitive list of items, which include agricultural and textile products.
India's negative list includes items. Bangladesh's negative list includes 1, items. In spite of repeated assurances of the highest policymakers of India like the prime minister, the finance minister and the commerce minister, the actual process of reduction of the items included in the sensitive list and the negative list remains very slow and unsatisfactory.
For example, even the knitwear garments of Bangladesh could not yet get unhindered access to the Indian market in spite of the fact that such items cannot be barred on grounds of the rules of origin RoO of the WTO. Bangladesh has requested India to remove 62 more items from its sensitive list.
A decision in this regard may be announced during the forthcoming visit of the Indian prime minister to Bangladesh scheduled for June Non-tariff measures relating to compliance with sanitary and phyto-sanitary standards are often turned into non-tariff barriers and technical barriers to trade by India.
Bangladeshi products are supposed to get 'national treatment' from India, but they do not get it. National treatment would have assured that Bangladeshi goods would not be subjected to any obstacle that Indian goods exported from India to Bangladesh do not face. One exporter of fruit juice from Bangladesh to India claims that the customs authorities of India frequently change their positions about where to print the expiry date of the juice -- on the bottom of the bottle or on the label of the bottle.
Such changed rules increase the cost of production. He further claims that he needed days to get the results of testing of the products from the Indian authority. A representative of a battery exporter firm claims that they have to fill up a big questionnaire and submit it to Indian customs department before they get the permission from that office.
Poor logistic facilities of most of the Indian land ports, restrictions of commodities that can pass through land ports, cumbersome customs requirements,, manual clearance, excessive inspection in the name of security, no customs cooperation or joint inspection, no harmonisation of standards, lack of warehouse facilities in most of the Indian land ports, no testing facilities in any Indian land port bordering Bangladesh, etc.
Non-tariff barriers in India like testing and certification, technical standards and banking regulations seriously hamper trade. For example, quality standard certificate from Bangladesh is not accepted by India. Bangladeshi goods are sent to Indian standards testing laboratories Bureau of Indian Standards for new certificates on quality.
Processed food exporters find it difficult to access the north-eastern states of India as the region's customs authorities have set a new rule asking the traders to store the imports in bonded warehouses from June 1, until the completion of laboratory tests on shipments. The earlier practice was to store the goods in the importers' warehouse. In the absence of any authorized food laboratory near the land ports in the north-eastern states of India, the traders have to wait for three to six weeks to get the test results from the CFL, Guwahati.
Business people from Bangladesh complain of visa restrictions that make it difficult to travel to north eastern states of India. Even, various state agencies impose different barriers on their own. For example, the state customs departments tariff agencies sometimes ban different imports from Bangladesh.
The customs authority of West Bengal at Kolkata once banned the import of soap from Bangladesh. DGFT claimed complete ignorance of the matter. Some Bangladeshi traders complain that there are anti-Bangalee sentiments among a section of the indigenous communities of seven sisters. For example, some Bangladeshi traders are afraid that insurgent groups may perceive Bangladesh's involvement in the border trade and investment activities as 'economic exploitation'.
Exporters from Bangladesh stressed the need for opening Bangladesh consulate offices at the deputy high commissioner or assistant commissioner levels in Guwahati, Agartala, Shillong and Aijawl. Normally, the Bangladeshis are not allowed to open bank account in the north-eastern states of India and the export-import number is issued from Kolkata, which is at least 1, km from Agartala through Indian transport routes.
Very recently, the Indian authorities have circulated a new rule which requires that Bangladeshi jute bags will need to have seals saying 'Made in Bangladesh' in the body of each jute bag exported to India. This new rule seems to be rather superfluous and deliberately designed to discourage jute goods of Bangladesh. In fact, it has seriously reduced the legal export of jute goods from Bangladesh to India in recent months, our interviewees at the land ports have reported.
In Benapole, the Indian trucks are allowed to proceed up to yards of the zero point inside Bangladesh without checking, but the Bangladeshi trucks are allowed to go up to yards of the zero point inside India on the Petrapole side. This discriminatory practice seems quite peculiar. In many land ports, road connection is reasonably good on the Bangladesh side, but the road on the Indian side is allegedly narrow and poorly maintained.
Benapole and Hili are prime examples. One problem cited for slow clearance of goods from the port was that the office hours of the Indian side and Bangladesh side differ. The suggestion was that this problem can be easily settled through discussion and negotiation between officials of Bangladesh and India.
The issue can also be taken up for negotiation by the political leadership of the two countries. In Bibir Bazar land port, we are informed that the reason for a total impasse regarding the use of the new port complex in October was caused by the lack of an Indo-Bangladesh agreement regarding the so-called 'car pass' -- the permission for the trucks to enter each country's territory through the road up to metres of the zero point of the border.
Skip to main content. The writer is a professor at Department of Economics, University of Chittagong. Click here to download it for your device. The Daily Star Breaking news alert on your phone. Leave your comments Comment Policy. Top News. View More. Most Popular Stories Breaking the glass ceiling: Shishir first transgender newscaster in Bangladesh Scars of torture all over him How to Register for the Covid Vaccine in Bangladesh 12 tech startups want to raise funds from public When women want to study abroad Bangladeshis annually waste more than one crore tonne of food: UNEP [Watch] Shishir begins journey as first transgender newscaster in country Dhaka-Tangail-Rangpur Highway: Govt to turn it into tolled road Coronavirus Contagion: Fears of a fresh surge growing Commentary by Mahfuz Anam: An appeal to the chief justice.
Latest from Star Live. In case you missed it. Rohingya crisis: A concern for the region. Change Maker: Dragon fruit kindles hope. From land of death, despair. The Joy of Cropping. Violence in Rakhine: India keeps off the Bali declaration. Multimedia you may like.
This project aims to provide new evidence on non-tariff barriers to trade in the Russian, Chinese, Ukrainian and other markets, and examine their cost and impact on trade. Focusing on Norwegian seafood exports and food imports into Norway and Europe, the project aims to shed new light on the role of non-tariff barriers in trade NTBs , particularly focusing on SPS sanitary and phytosanitary regulations. With an increasing role for NTBs over time, the project aims to shed light on the nature and importance of NTBs, and whether they affect small and large traders differently. Following the recent literature on international trade with firm heterogeneity, we distinguish between trade effects via the extensive margin due to entry and exit of firms and the intensive margin because of changed sales volumes by firms already in the market. Some results indicate that NTBs particularly work through the extensive margin, by reducing market entry and thereby leading to market concentration.
Protectionism and industrialization: a critical assessment of the Latin American industrialization period. Protectionist policies were considered one of the pivotal features of the import industrialization process in Latin America. In this paper the effects of protectionist policies are assessed in terms of the principal macroeconomic variables, productive structure and external trade composition; also, ECLAC's perspective on the import substitution process is discussed. The main conclusions are that regional protectionist policies were spontaneous, and their effects were limited due to the generalized protection that took place and the government's commitment to price stability. Latin America underwent an import substitution industrialization that induced profound structural change in production and external sectors. An important policy objective of the Import Substitution Industrialization ISI, hereafter model was to protect domestic production sectors from external competition. Consequently, economic policy instruments such as quotas, tariffs, subsidies and special licenses were applied to imports and exports.
The balance of trade , commercial balance , or net exports sometimes symbolized as NX , is the difference between the monetary value of a nation's exports and imports over a certain time period. The balance of trade measures a flow of exports and imports over a given period of time. The notion of the balance of trade does not mean that exports and imports are "in balance" with each other. If a country exports a greater value than it imports, it has a trade surplus or positive trade balance , and conversely, if a country imports a greater value than it exports, it has a trade deficit or negative trade balance. As of , about 60 out of countries have a trade surplus.
I deleted this list since it seemed to me to be just a repeat of the material which is now in text.
This article empirically investigates the impact of trade barriers on the world wine trade focusing on trade costs impeding exports, including transport, tariffs, technical barriers and sanitary and phytosanitary SPS standards. A gravity model is estimated using data from the main importing and exporting countries for the years — The Poison pseudo-maximum likelihood estimator accounts for heteroskedasticity and the presence of zero trade flows.
We evaluate the effect of the British General Tariff on the output, labour productivity and employment growth of British industries. We provide a new disaggregated data set that matches industry-level Census of Production data with industry-specific tariff rates to accurately isolate treatment and control groups and estimate the effect of the General Tariff using difference-in-difference regressions. In the two-group comparison, we identify a tariff effect that is large and statistically significant on output and productivity. These effects are observed over the periods — and —, suggesting both short-run and medium-term effects on output and productivity of UK industries protected by the General Tariff. Having observed that, between and , the fall in imports in newly protected industries was less than the fall in imports of other industries, Richardson argues for a non-tariff explanation for the healthy performance of the newly protected industries—recovery in the newly protected sector was thus seen as reflecting general economic recovery in the s.
Provided that in exceptional circumstances referred to in sub-rule 3 of Rule 11, the domestic industry in relation to the article in question shall be deemed to comprise two or more competitive markets and the producers within each of such market a separate industry, if -. Provided that no investigation shall be initiated if domestic producers expressly supporting the application account for less than twenty five per cent of the total production of the like article by the domestic industry, and. Provided that the designated authority shall also make available a copy of the application to any other interested party who makes a request therefor in writing.
One of the most debated issues in international trade is protectionism.Giraldo M. 13.05.2021 at 20:50
PDF | Tariff barriers (TBs) are regulated under the provisions of the General Agreement product, in what is usually understood as a consolidated tariff. He is full time professor at Universidad de Medellín (Colombia), Editor.