Characteristics of non-tariff measures:
1 Non-tariff measures are more flexible and targeted than tariff measures.
Non-tariff measures can directly achieve the purpose of restricting imports than tariff measures.
Non-tariff measures are more covert and discriminatory than tariff measures.
The main types of non-tariff measures:
1, import quota system
2. "Automatic" export quota system
3. Import license
4. Foreign exchange control
5. Monopoly of importing countries
6. Discriminatory government procurement policy
7. Domestic tax revenue
8. Minimum import price system and import ban
9. Advance payment
10, customs stock price system
1 1, import tax classification
12, technical barriers to trade
Non-tariff measures include quantitative restrictions and other non-tariff measures that hinder trade.
Quantitative restrictions include quotas, import licenses, automatic export restrictions and quantitative foreign exchange controls.
Other non-tariff measures include technical barriers to trade, animal and plant inspection and quarantine measures, customs valuation, rules of origin and investment management measures, such as local content requirements, trade balance requirements and domestic sales requirements.
For example, the import quota system, Import Quotas (import quotas) means that a government directly restricts the import quantity or amount of a certain commodity in a certain period of time.
Within the specified time, goods exceeding the quota are not allowed to be imported, or they can only be imported after paying higher tariffs or fines.
Tariff measures indirectly restrict imports by increasing the cost of imported goods, raising their prices and reducing their competitiveness.
Non-tariff measures directly restrict imports. Compared with tariff measures, non-tariff measures have the following characteristics:
1. Non-tariff measures are flexible and targeted.
The formulation of tariff rate often requires a legislative procedure, and once it is determined in the form of law, it is relatively stable. Moreover, subject to the MFN clause, it is often difficult for importing countries to make targeted adjustments.
Non-tariff measures are usually formulated and implemented by administrative means, and importing countries can adjust them according to different countries, so they are flexible and targeted.
2. Non-tariff measures are easier to achieve the purpose of restricting imports.
Tariff measures weaken the competitiveness of imported goods by imposing high tariffs and increasing costs. The government of the exporting country gives export subsidies or takes dumping measures to sell export goods.
It is difficult for tariff measures to achieve the expected results. Non-tariff measures can restrict imports more directly.
3. Non-tariff measures are more covert and discriminatory.
Once a country's tariff is determined, it is often published in the form of laws and regulations, and the importing country can only act according to law. Non-tariff measures are often not made public, or are stipulated as cumbersome and complicated standards or procedures.
And it often changes, which makes it difficult for exporters to adapt. In addition, some non-tariff measures are aimed at certain products of certain countries.