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Non Tariff Measures
(NTMs) are all measures other than normal tariffs
namely trade related procedures, regulations,
standards, licencing systems and even trade defense
measures such as anti-dumping duties etc. which
have the effect of restricting trade between nations.
Some of these measures could be justified under
the provisions or the exceptions provided under
the various multilateral agreements governing
international trade. On the other hand, certain
non tariff measures which cannot be justified
under any of these legal provisions are normally
termed as non tariff barriers (NTBs).
With the lowering
of tariffs across the globe, NTMs have come into
prominence with Members using these measures to
erect entry barriers for goods and services. It
is therefore, not surprising that the developed
countries with relatively lower tariffs are the
more prolific users of NTMs / NTBs especially
to keep out developing country exports.
The details of
some of the major NTMs that are maintained against
Indian exports are as under:
Country |
Item
|
Details
of NTM |
| United States |
Marine products |
Increased inspections
under the Bio-Terrorism Act, Customs Bond
requirement, Mandatory labeling discriminating
“farm raised” and “wild”
with punitive fines and non-recognition
of EIC certification. |
| United States |
Paper products |
Non scientific quarantine restrictions,
customs surcharges, eco labeling stipulations
and food safety/ health standards exist on
paper products exports. |
| United States |
Tobacco |
A TRQ regime restricts imports. |
| United States |
Food products |
Detailed labeling requirements are stipulated
with extensive product and content description |
| Argentina |
Processed Marine Products,
Matches, Insecticides, Fungicides, Plastics,
Rubber, Leather, Wood & Paper Products,
Textiles & Clothing, Headgear, Footwear,
Articles of Iron & Steel, Mechanical &
Electrical Machinery, two wheelers, optical
instruments, furniture, toys, miscellaneous
manufactured articles |
A new
regulation (57&58/2007 dated 24.08.2007)
wherein minimum import price has been established
for specified product imports from India
and some other countries. Under this theArgentine
Customs authorities can ask for validation
of Indian customs invoice with a full set
of original documents if they suspect that
the invoiced value is less than the minimum
import price established.
|
| Argentina |
Pharmaceuticals |
There is delay in registration leading to
non-viability of exports. |
| Australia |
Mangoes |
Australia maintains ban on the pretext of
the presence of fruit flies and stone weevils. |
| Armenia |
Agro chemicals and pharmaceuticals |
Armenia stipulates registration requirements
and mandates permission for imports and exports |
| Bangladesh |
Poultry products |
Bangladesh continues to ban imports despite
India gaining the avian influenza free status. |
| Brazil |
Pharmaceuticals |
Procedural delays occur in the clearances,
inspections and registration by the Brazilian
Health Surveillance Agency (ANVISA) |
| Canada |
Paper products |
Non scientific quarantine restrictions,
customs surcharges, eco labeling stipulations
and food safety/ health standards exist on
paper product exports. |
| Chile |
Wheat, wheat flour and sugar |
A complex price band system wherein a minimum
import price (well above the international
price and domestic prices) is stipulated.
On account of a WTO dispute decision, this
band would be lowered by 2% every year from
2008 to 2014 after which a Presidential review
would be undertaken. |
| China |
Agricultural products |
Opacity of Sanitary and Phytosanitary (SPS)
measures and delays in giving clearances |
| Colombia |
Pharmaceuticals |
The registration by Colombian Drugs Control
and Certification takes 11 to 12 months, inspections
are undertaken for environmental compliance
and a 10% price preference is granted for
French pharmaceutical companies under a bilateral
agreement. |
| European Communities |
Bovine meat |
Standards are more stringent than OIE (World
Organization for Animal Health) Terrestrial
Animal Health Code, a ban is maintained on
account of Foot and Mouth Disease (FMD) and
prolonged delay in upgradation of India’s
status to GBR1 (No risk of BSE) |
European Communities
|
Marine products |
Rejection and subsequent destruction of
consignments with chloramphenicol/ nitrofuran
residues, rejections in Italy and France due
to presence of Vibrio Parahaemolyticus without
judging the virulence factors, rejection due
to alleged presence of bacterial inhibitors/
anti-biotic residues without any confirmatory
tests. |
| European Communities |
Chemicals |
The Registration, Evaluation and Authorisation
of Chemicals (REACH) legislation increases
cost of compliance by € 85,000 to €
325,000 per chemical product. |
| European Communities |
Engineering and Electronics |
The stipulation of CE (originally known
by the French term Conformité Européenne)
marking to indicate conformity with the essential
health and safety requirements increases cost
for small and medium enterprises. |
| Japan |
Footwear |
The tariff rate quota (TRQ) restricts imports
to the quantum of the quota. |
| Korea |
Chemicals, pharmaceuticals,
computer and medical equipment |
Certification requirements (including prior
approval) add on to the cost of exports. |
| New Zealand |
Paper products |
Non scientific quarantine restrictions,
customs surcharges, eco labeling stipulations
and food safety/ health standards exist on
paper products exports. |
| Norway |
Marine products |
The pathogen analysis is carried out by
the NMKL method which is not accepted internationally. |
| Russia |
Meat products |
Standards for bovine meat are more stringent
than the OIE Terrestrial Animal Health Code,
EIC Conformity certificates are not recognized
and Certification with respect to swine fever
and FMD are insisted upon for poultry exports
which are not relevant. |
| Ukraine |
Bovine meat, coffee, tea, spices,
pharmaceuticals, cosmetics, plastics, leather
products, textiles & clothing
|
A compulsory certification with the option
of either (a) certificate of acceptance of
foreign certification by Derzh Standard or
(b) Conformance certificate by Ukrainian Agency.
Though ISO 9000 Standards are adopted by Derzh
Standard, foreign certification recognition
exists only to the extent of international
treaty obligations of Ukraine. |
| Uzbekistan |
All products
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registration and certification, a custom
processing fee @ 0.7% of value and lengthy
procedure for conversion of hard currency
as well as profit repatriation. |
With a view to
strengthening its information base on NTMs/ NTBs,
the Department of Commerce has attempted to put
in place a database of NTMs/ NTBs imposed by trading
partners on its exports. These are available at
http://commerce.nic.in. nputs from the trade and
industry, apex chambers of commerce, export promotion
councils, trade analysts, researchers etc on specific
NTMs/ NTBs imposed against Indian exports are
welcome with a view to expanding this database.
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