iMPORT40.RU

Non-tariff restrictions on foreign trade operations

Non-tariff restrictionsis a set of restrictive and prohibitive measures that prevent the penetration of foreign goods into domestic markets.

In international practice, measures on non-tariff restrictions are divided into five groups:

1. reflects the participation of the state in foreign trade operations
2. combines customs and administrative import formalities, including methods for assessing customs value and determining the country of origin of goods, forms of shipping documents and requirements for their execution, commodity classification of tariffs
3. consists of standards and requirements related to safety standards for consumers and the environment, sanitary and veterinary standards, packaging and labeling of goods
4. quantitative and currency restrictions on imports and exports
5. restrictions based on payment security principles – import deposits, discount rate changes, border tax treatment and sliding fees.

The above activities are implemented through financial impact and the use of administrative regulation tools. 

Financial Impactfor foreign trade operations is provided by a system of various customs and target fees, taxes and duties (in addition to customs), which are levied upon importation of goods. The total amount of such fees significantly exceeds the size of the established customs tariffs, they do not have the form of a fixed rate, they vary depending on the state of the market and the economic policy of the state.

All this makes it impossible for the exporter to predict the upcoming costs of cargo clearance in the importing country.

Measures of financial impact are calledparatariffmeasures that are used in the regulation of foreign trade, having a significant impact and creating obstacles to import flows.

Fixed fees, taxes and duties are combined, increasing mainly the domestic price of imported goods, with no indicative valuation forecast.

These include internal special taxes and variable import duties, anti-dumping and countervailing duties in relation to the goods of specific importers and to compensate for benefits and subsidies to domestic exporters-producers, as well as border taxes and fees for the clearance and movement of goods across the border. 

Methods of administrative regulationimports - various quantitative and cost restrictions aimed at reducing the volume or level of imports of certain goods from any source or limiting their receipt from a particular supplier.

These methods include various types of prohibitions,quoting,licensing,quoting,instructions of the customs authorities,technical norms and safety rules,voluntary self-limitation of supplies, anti-dumping measures. 

Administrative Toolsare considered as additional measures of a temporary nature, with insufficient effectiveness of economic levers. However, in a period of economic recession and an unbalanced economy, they become the main instruments for regulating foreign trade relations with other states, used by states, are very diverse.

The regulatory framework for foreign trade allows the use of the full range of non-tariff restrictions. However, not all of them are actually applied in Russia.The main category of non-tariff restrictions in Russia remainsquantitative restrictions (quotas)Andlicensing of import and export of certain goods.

Non-tariff regulation measures also include export control and participation in the implementation of international economic sanctions.