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LEARN DTI STRATEGY Non-Tariff Barrier Info Overview of Non-Tariff Barrier

Overview of Non-Tariff Barrier

Overview

Barrier Image

A non-tariff barrier is any measure, other than a customs tariff, that acts as a barrier to international trade. These include:

Regulations
Any rules which dictate how a product can be manufactured, handled, or advertised.
Rules of Origin
Rules which require proof of which country goods were produced in.
Quotas
Rules that limit the amount of a certain product that can be sold in a market.

Features of Non-Tariff Barrier

The UN Conference on Trade and Development classifies 16 types of non-tariff barrier, ranging from measures favouring domestic industries to intellectual property to measures on plant and animal health:

  • Sanitary and Phytosanitary Measures

    Plant and animal health regulations

  • Technical barriers to trade

    Regulations on the contents of products, the process by which they were manufactured, their labelling, etc.

  • Pre-shipment inspection and other formalities

    Requirements that goods be checked or licenses secured before they can be imported

  • Contingent trade-protective measures

    Policies that protect the economy from the impact of certain imports , such as anti-dumping measures, safeguards for agriculture, etc

  • Non-automatic licensing, quotas, prohibitions and quality control, measures other than for SPS or TBT reasons

    Policies that limit the total number of imports of a certain good, such as quotas, rules stating that imported goods can only be used in certain industries or temporary bans on certain products

  • Price-control measures, including additional taxes and charges

    Charges or taxes (other than tariffs) that change the price of imports, for example, by ensuring that imports do not undercut the price of domestically-produced goods

  • Finance Measures

    Policies that regulate access to foreign exchange for imports, for example, by requiring deposits to be paid in advance, or that customs duties must be paid ahead of time.

  • Measures affecting competition

    For example, compulsory requirements to use national services, or use of a single state-owned importer of some goods

  • Trade-related investment measures

    Requirements that goods should contain a certain proportion of locally-produced content, or policies that limit imports based on the performance of exports

  • Distribution restrictions

    Measures which make it harder to sell imported goods in all parts of the market, for example, by stating that goods can only be sold in areas that meet certain conditions

  • Restriction on post-sale services

    Policies stating that post-sale services (customer services, repair services , etc) must be provided by a local company

  • Subsidies

    Money from government for domestic producers, making it harder for importers to compete

  • Government procurement restrictions

    Ensuring that government buy goods from domestic producers

  • Intellectual Property

    Ensuring that imports comply with patents, trademarks, industrial designs , copyright, geographical indications

  • Rules of Origin

    Rules requiring products to be able to demonstrate in which countries they were produced , often so that it can be determined whether the good can benefit from preferential access under a bilateral free trade agreement

  • Export-related measures

    Policies undertaken by the exporter’s government, for example, to limit exports to a certain country through trade embargos , or to reduce exports to keep domestic prices low

Governments Procedure on Non-Tariff Barrier

Corn, pork, chicken images
Two-tiered Tariff Policy
Sugar and coffee images
Tariff-rate Quota (TRQ)

The Philippines maintains a two-tiered tariff policy for sensitive agricultural products, including rice, corn, pork, chicken meat, sugar, and coffee. These products are subject to a tariff-rate quota (TRQ), and all imports outside the minimum access volume are taxed at a higher out-of-quota rate. In-quota and out-of-quota tariff rates averaged 36.5% and 41.2%, respectively, and have not changed since 2005.

The Philippines maintains a two-tiered tariff policy for sensitive agricultural products, including rice, corn, pork, chicken meat, sugar, and coffee.
40%

Chicken, frozen or chilled

Turkey livers, frozen or chilled

Potatoes, fresh and chilled

Roasted coffee beans

At present, a few TRQ products have achieved unified in-quota and out-of-quota tariff rates, including chicken, frozen or chilled (40%); turkey livers, frozen or chilled (40%); potatoes, fresh and chilled (40%); and roasted coffee beans (40%). Currently, an additional special safeguard duty is in place for chicken meat, which effectively doubles the rate of out-of-quota tariff protection. Administrative Order (A.O.) 9 of 1996, as amended by A.O. 8 of 1997 and A.O. 1 of 1998, established rules for implementing TRQs and allocating import licenses.

In reference to the Section 1 of CMC 91-2024, Further Streamlining Administrative Procedures and Removing Non-Tariff Barriers, the Department of Agriculture (DA), in coordination of DTI and/or Department of Finance, is hereby directed to undertake measures to further streamline administrative procedures and policies on the importation of agricultural products and remove non-tariff barriers. For this purpose, the aforementioned government agencies shall, among others:

Streamline procedures and requirements in the licensing of importers, minimize processing time of application of importation, and exempt licensed traders from submission of registration requirements, subject to existing law, rules and regulations.

Subject to consultation with the National Economic and Development Authority Committee on Tariff and Related Matters, facilitate importation of certain agricultural products beyond the authorized MAV and reduce or remove administrative fees relative thereto, subject to existing laws, rules and regulations.

Streamline procedures and requirements for the issuance of Sanitary and Phytosanitary Import Clearance (SPSIC).

Take concrete steps to improve logistics, transport, distribution and storage of imported agricultural products.

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