classification of non-tariff measures - market access map classification_june 2008.pdf · 1 short...
TRANSCRIPT
1
SHORT MANUAL FOR USING THE
CLASSIFICATION OF NON-TARIFF MEASURES
This classification of Non-Tariff Measures (NTM) was discussed and agreed upon by several
International Organizations in the context of the Multi-Agency Support Team (MAST) appointed by the
Group of Eminent People, which in turn, was appointed by The Secretary general of UNCTAD. It is the
first time all these organizations gather to discuss and define a list of measures that are thought that
could pose a barrier to trade. This classification will be first used in the Pilot Project for collecting
NTM data in 2008, implemented by UNCTAD and ITC.
How to understand the codes?
There are two classifications. The first is for the measures themselves, and the second for the
Procedural obstacles that may be associated with them. These last ones are explained below. The main
classification on Non-Tariff Measures has 16 chapters, named with letters from A to P. Inside each
chapter; groups were defined using an alphanumerical codes, and have four levels of disaggregation.
For example, Chapter A000 includes codes A100, A200, A300 and also A900 (this last includes
"others"). The chapter is the letter A and the four main groups in it are listed using hundreds. Then one
of them, say A200, includes A210, A220, A230, A240, A250, A260, A270, A280, A290. The A letter
still refers to the chapter, then the 200 represents the main group, and inside of it there are minor
groupings using tens, from 10 to 90. At the last level, units are used. So, inside the A210 minor
grouping there are three lines: A211, A212, and A213.
The first and second level of disaggregation:
The second and third level of disaggregation:
A000 SANITARY AND PHYTOSANITARY MEASURES
B000 TECHNICAL BARRIERS TO TRADE C000 OTHER TECHNICAL MEASURES D000 PRICE CONTROL MEASURES E000 QUANTITY CONTROL MEASURES F000 PARA-TARIFF MEASURES G000 FINANCE MEASURES H000 ANTI-COMPETITIVE MEASURES I000 EXPORT RELATED MEASURES J000 TRADE-RELATED INVESTMENT MEASURES K000 DISTRIBUTION RESTRICTIONS* L000 RESTRICTION ON POST-SALES SERVICES* M000 SUBSIDIES* N000 GOVERNMENT PROCUREMENT RESTRICTIONS* O000 INTELLECTUAL PROPERTY* P000 RULES OF ORIGIN*
A100 Voluntary standards, A200 Sanitary and phytosanitary regulations, A300 Conformity assessment related to SPS, and A900 Sanitary and phytosanitary measures, n.e.s.
A100 Voluntary standards, A200 Sanitary and phytosanitary regulations,
A300 Conformity assessment related to SPS, and A900 Sanitary and phytosanitary measures, n.e.s.
A210 Labelling, Marking and Packaging requirements, A220 Traceability requirements, A230 Tolerance limits for residues and contaminants, or restricted use of certain substances, A240 Regulation of foods or feeds derived from or produced using GMO, A250 Hygienic requirement, A260 Disease prevention measures, A270 Regulations on productions processes, A280 Geographical restrictions, and A290 Sanitary and Phytosanitary regulations n.e.s.
2
The third and fourth level of disaggregation:
How to use the classification?
Each measure has to be classified into only one line, not more. There should be no repetition. The best
option has to be chosen, because there should be only one place to classify each measure applied.
Measures should be preferably be classified using the most detailed code line, but other broader level
may be used as well, but not both for any one measure.
If an export or import transaction could not take place because of a non tariff measure, this should be
also marked in the Classification. The Question 1 in Section 3 of the Questionnaire used in this project
reports if the export/import was not feasible due to financial reasons or to technical reasons.
Can you explain what's in the different chapters?
The Box 1 explains briefly what measures are comprised in each of the main chapters of the
classification.
Box 1
Chapter A, on Sanitary and Phytosanitary Measures, refer to measures affecting areas such as
restriction for substances, quarantine or other measures for preventing dissemination of diseases,
hygienic requirements, and others. It also includes all conformity assessment measures related to
food safety, such as certification, testing and inspection, and any voluntary standard also for
food safety. The chapter is also known as SPS
Chapter B, on Technical Measures, is also known as TBT. It refers to measures as labelling,
marking, packaging, restrictions to avoid contamination, and standards on technical
specifications, and quality requirements. It also includes conformity assessment that relate to
technical measures.
Chapter C, groups other technical measures related to customs formalities.
Chapter D, Price Control measures, group measures that change the price of imports, such as
minimum prices, reference prices, antidumping or countervailing. The prices are not set freely,
but altered according to a government policy
Chapter E, Quantity Control measures, group the measures that restrain the quantity traded,
such as quotas, but also licenses and import prohibitions, which are not SPS related.
Chapter F, on Para-Tariff measures, refer to taxes other than custom tariffs. It groups additional
charges as stamp tax, licenses fees, statistical tax, and also decreed customs valuation.
A211 Labelling requirements, A212 Marking requirements, and A213 Packaging requirements.
A210 Labelling, Marking and Packaging requirements,
A220 Traceability requirements, A230 Tolerance limits for residues and contaminants, or restricted use of certain substances, A240 Regulation of foods or feeds derived from or produced using GMO, A250 Hygienic requirement, A260 Disease prevention measures, A270 Regulations on productions processes, A280 Geographical restrictions, and A290 Sanitary and Phytosanitary regulations n.e.s.
3
Chapter G, on Finance measures, refer to measures restricting the payments of imports, for
example when the access and cost of foreign exchange is regulated. It also includes restrictions
on the terms of payment.
Chapter H, on Anticompetitive measures, refer mainly to monopolistic measures, such as state
trading, or sole importing agency, or compulsory national insurance or transport.
Chapter I, on Export measures, groups the measures that countries apply to its exporting trade.
It refers to measures that have to be complied with when trying to export. It includes export
taxes, export quotas or export prohibitions, among others. All the other chapters refer to
measures applied by importing countries, except for this one. This chapter has to be used when
the measure is applied by the exporting country.
Chapter J, on Trade Related Investment measures, groups measures that restrict investment by
requesting local content and thus restricting imports, o requesting that investment should be
related to export to balance imports.
Chapter K, on Distribution Restrictions, refers to restrictive measures related to internal
distribution of imported products. These measures would hinder trade from taking place because
there would be difficulty in distributing the products once entering the country.
Chapter L, on restriction on Post Sales Services, refer to difficulties in allowing technical staff
to enter the importing country to install or repair technological goods imported. The sale of these
products is closely attached to the availability of the technical staff to offer the associated
services, so these restrictive measures could potentially reduce sales on these goods.
Chapter M, groups measures that relate to subsidies that affect trade.
Chapter N, on Government procurement restrictions measures, refer to the restrictions bidders
may find when trying to sell its products to a foreign government.
Chapter O, on Intellectual property measures, refer to the problems arising when intellectual
property is not respected. Please note that those trading activities involving imitations which are
not counterfeits, but are accused to be so, are accounted for in Chapter E, in measure E360 for
prohibition of copies or imitations of patented or trademarked products.
Chapter P, on Rules of Origin, group the measures that restrict the origin of products so that
they could benefit from reduced tariffs, according to certain rules, often, set on multiple
simultaneous agreements with different countries.
\What's the difference between Voluntary standards and the rest?
The difference between Voluntary Standards (group A100 and B100, and all the measures listed in both
groups) and the rest of the measures is that these refer to measures that are recommended for use but are
not enforced by law. They may in practice act as compulsory but in fact they are not. The World Trade
Organization (WTO) definition is followed here.
What's the difference between SPS and TBT?
The difference between SPS and TBT chapters might be a bit elusive as well in some cases. The main
way to distinguish between SPS and TBT measures is that SPS usually refers to food safety. This
means that there can be TBT on food products if the measures does not relate to food safety. Examples
are: labelling on nutritional content of foods, or when certain size for fruits is required. Again, the WTO
principle is used here to distinguish among them
4
When should I use Conformity Assessment measures?
It can also be difficult to choose between a certain measure as may be the case of a requirement on the
product and the associated test to be done that would prove that the requirement is met. The dilemma
would be to choose among the measures in the A200 or B200 and the measures listed in the Conformity
Assessment group, in A300 or B300. The rule would be that the measure in the A200 or B200 should
be selected if the restriction to trade is the requirement itself, and not the associated testing or
inspection. In turn, the Conformity Assessment measures (measures in groups A300 and B300) should
be selected when there is a problem with the process of certifying, testing, auditing or inspected. It
could be additionally associated with another line in the separate classification of Procedural obstacles.
What are Procedural obstacles and how are they useful?
Procedural obstacles relate to the attributes or operation of a measure or procedure rather than to its
principal content or goals. Apart from the measures themselves, trade may be hindered because of
"procedural obstacles", i.e. the way rules are implemented may be an obstacle, like queuing or
discriminatory enforcement of rules. These are practices, and often informal practices.
Procedural obstacles are introduced separately from the measures. They are listed in a separate
classification below the one for measures, and they can be combined. Each of the procedural problems
listed can be associated with virtually any NTM. For example, any barrier arising from the processes of
testing or certification, such as high cost or lengthy process is registered as a "procedural obstacle"
related to the specific barrier, so that both Classifications combine to have a clearer view on the
problem.
The following Table shows examples of combination both classifications. Case 1 would represent the
situation where there is a request to duplicate a certification, and the Case 2 refers to the case there a
measures has been changed without any official notification.
Case 1 Code Description
Measure A310 Certification requirement
Procedural Obstacle
associated with the measure
C2 Too strict, too detailed or redundant
testing/certification or labelling requirement
Case 2 Code Description
Measure B231 Tolerance limits for residues or
contamination by certain substances
Procedural Obstacle
associated with the measure
D2 Unannounced change of procedure,
regulation or requirement
Procedural Obstacles can add significantly to the costs of entry and operation in a foreign market.
Incorporating generic categories of Procedural Obstacles as additional “qualifiers” that could be
checked, where applicable, for each type of NTM (no procedural obstacle exists on its own) would
permit describe the problem more precisely and comprehensively. By distinguishing the NTMs from
the procedural issues, the target issue becomes more precise and by combining them, more detailed
information can be drawn.
In what follows, the NTMs are listed and accompanied by its alphanumerical code. Furthermore, a
description and also some possible examples are provided. Then, the procedural Obstacles are listed
with its Coding.
5
CLASSIFICATION OF NON-TARIFF MEASURES
A000 SANITARY AND PHYTOSANITARY MEASURES
Sanitary and phytosanitary measures include laws, decrees, regulations, requirement, standards
and procedures to protect human, animal or plant life or health.
A100 Voluntary standards
Rules, guidelines or characteristics for products or processes and production methods,
which are designed to protect human, animal and plant health and life. Some are established
by private companies and some others are approved by recognized bodies at international,
national or sub-national levels. Voluntary standards do not have the authority of law.
Examples
Standards on composition, quality, hygiene, or processing methodologies etc
A110 International Standards
Standards developed by international standards organisations. By definition,
international standards are suitable for universal, worldwide use.
Examples International standards are set by the so-called "three sister organizations", which are
the Codex Alimentarius Commission (CAC), International Plant Protection
Convention (IPPC) and the World Organization for Animal Health (OIE). They
provide technical standards, guidelines and other recommendations for a vast number
of products or processes in the supply chain of agricultural products which include
input, production and harvesting, storage, transport, processing, packing and labelling.
A111 Production Process standards Standards defining processes for the production chain that will contribute to the
safety and suitability of products.
Examples
Recommended International Code of Practice - General Principles of Food
Hygiene (CAC/RCP 1-1969), its annex on Hazard Analysis and Critical Control
Points (HACCP system, or any Code of Hygienic Practice from Codex
Alimentarius.
A112 Product characteristics standards
Standards defining the characteristics requested for products and contribute to
the safety and suitability of products.
Examples
These are standards regulating the composition and quality of the product. Any
established by the "three sister organizations" (Codex Alimentarius Commission
(CAC), International Plant Protection Convention (IPPC) and the World
Roganization for Animal Health (OIE)).
A119 International Standards, n.e.s.
A120 National Standards
In general, each country or economy has a single recognized National Standards Body
(NSB) which may set voluntary standards.
Examples
6
These national standards may or may not differ from international ones, but they are
still on food safety and animal and plant health.
A121 Production process standards
Standards defining processes for the production chain that will contribute to the
safety of products.
Examples
These standards may demand that proper conditions are maintained when the
goods are produced or processed.
A122 Product characteristics standards
These will address the characteristics requested for products and will contribute
to the safety of products.
Examples
These are standards regulating the composition and quality of the product.
A129 National Standards, n.e.s.
A130 Subnational Standards
Standards that may be set by a state or region within a country.
Exampls
A province of China or a State of United States of America may set higher standards
than national standards that rule in other provinces or States of the same countries.
A131 Production process standards Standards defining processes for the production chain that will contribute to the
safety of products.
Examples:
A132 Product characteristics standards Standards defining the characteristics requested for products (e.g. composition
and quality) and contribute to the safety of products.
Example:
Composition and quality, but not colour or size, because these normally refer to
TBT - and not SPS - since they are not related to food safety.
A139 Subnational Standards, n.e.s.
A140 Private Standards*
Standards demanded by private entities, such as organizations representing
supermarket chains and other bodies.
Examples
These standards may rule on pesticide use, traceability and general hygiene of
foodstuffs. The difference is that they are issued by private companies and not from
any governmental agency or international independent body.
A private, voluntary eco-labelling programme- the Flower Label Programme (FLP)
was a German industry-led private initiative that ostensibly aimed to restrict the use of
toxic pesticides in the cultivation of such flowers.
A200 Sanitary and phytosanitary regulations
7
Sanitary and phytosanitary regulations include laws, decrees, requirements and procedures
to protect food safety and animal and plant health human. Compliance is mandatory.
Examples
The most common regulations would be packaging, marking or labelling requirements, but
also traceability, tolerance limits, GMO, hygiene, and others.
A210 Labelling, Marking and Packaging requirements
A211 Labelling requirements
Measures defining the information that may or should be provided to the
consumer which is directly related to food safety. Labelling is any written,
electronic, or graphic communication on the consumer packaging or on a
separate but associated label.
Examples
Labels that specify the storage conditions, such as 5 Celsius maximum, or room
temperature for dry foods; or the ingredients used, as some people are allergic to
certain substances
A212 Marking requirements Measures defining the information for transport and customs, that the
transport/distribution packaging of goods should carry, which are directly
related to food safety.
Examples
Requirement to write a mark on the outside transport container instructions such
as handling for perishable goods, any refrigeration needs, or protection from
direct sunlight etc
A213 Packaging requirements
Measures regulating the mode in which goods must be or cannot be packed, and
defining the packaging materials to be used, which are directly related to food
safety.
Examples
The use of PVC films for food may be restricted.
A220 Traceability requirements
Traceability, also known as product tracing, is the disclosure of information that
allows following a product through the stage(s) of production, processing and
distribution. It may include information regarding the origin of live animals and
animal products as well as for agricultural products. It may also require information
on product processing history, and the distribution until the final consumer. It aims to
track through all phases of production and distribution. The measure should be placed
in the SPS chapter if it relates to food safety, if not it should be placed in TBT.
Examples
It could be set to cover issues such as prevention of Bovine spongiform
encephalopathy (BSE, best known as mad cow disease) contamination of feed. Does
not cover bioengineered food products because these are classified into GMO with
code A240.
A221 Origin of materials and parts
8
Disclosure of information needed about geographical origin of animals, plants
and their derivative products.
Examples
A222 Processing history
Disclosure of information needed about all stages of production.
Examples
A223 Distribution and location of products after delivery
Disclosure of information needed about transport, handling and storage of
products after the production is finished.
Examples:
This could be implemented with a tracking list indicating here, when and how
the commodities have from the moment of delivery to distributors until the
product is sold to the final consumer.
A229 Traceability requirements, n.e.s.
A230 Tolerance limits for residues and contaminants, or restricted use of certain
substances or prohibition
Maximum residue limits permitted (MRLs), maximum levels (ML) or "tolerance
limit" on food, feed, wood, plants etc., or restriction on the use of certain substances
as ingredients. Includes cases of prohibition.
Examples
For toxic residues and contaminants, see A231; for substances that in principle are not
toxic, please see A232.
A231 Tolerance limits for residues of or contamination by certain substances in
foods and feeds
Residues may remain in or on the food when pesticides or veterinary drugs are
used in food production. Contaminants may also enter the food chain.. The
tolerance is then legally established as a maximum residue limit (MRL) or
"tolerance limit" for pesticides and veterinary drugs or as a maximum level
(ML) for contaminants.
Examples
The substances limited may include insecticides, pesticides, heavy metals,
veterinary drug residues, POPs and chemicals generated during processing).
A country has established a regulation for tolerance of residues of "dithianon" in
apples ppm and hops at 100 ppm.
Requirements that cattle are grass fed, free range, or raised without antibiotics
or hormones.
A232 Restricted use of certain substances in foods and feeds
Restriction or prohibition on the use of certain substances as ingredients or food
additives, which are not contaminants or toxic and are therefore reasonably
expected to exist in the final product. Their specification is important to prevent
the risks arising from their use.
Examples
Food additives used for colouring, preservation, sweeteners etc
9
A240 Regulation of foods or feeds derived from, or produced using genetically
modified organisms (GMO)
Restriction on imports if unauthorised genetically modified organisms are used in the
production of foods and feeds. These regulations may include labelling and
authorization requirement or outright prohibition.
Examples
Many countries require specific indications in food labels if the item contains or is
free of GMOs.
A250 Hygienic requirement
Restrictions aimed to contain contamination by microorganisms and parasites in foods
and feeds under certain levels. It covers production, manufacturing, transport and
storage conditions. Includes post-harvest treatment and pathogen controls.
Examples
Compulsory compliance with a code of hygienic practice for hygiene in food and
drink manufacturing industries.
A260 Disease prevention measures
A261 Restriction/prohibition in case of outbreak of infectious diseases
Measures to protect animals and plants from any infectious/contagious diseases.
Measures included in this category are typically more of an ad-hoc and time-
bound nature.
Examples
Prohibition to import poultry if the area is considered to be affected by avian flu
or restriction on cattle from foot and mouth affected countries.
A262 Quarantine requirement
Requirement to quarantine imports for a certain period. It is not a prohibitive
measure. Quarantine supposes also quarantine fees, inspection fees, veterinary
fees, boarding, fumigation etc.
Examples
The United Kingdom eradicated rabies from their territory by imposing
quarantine requirements for live dogs.
A270 Regulations on production processes: This group of entries registers safety regulations relating to the production process. It
covers primary production (plant & animals) and processing.
Examples
A271 Plant growth processes
A272 Animal raising or catching processes
Examples
A273 Food and feed processing, including storage and transport
Examples
Compulsory compliance with the code of practice for transport and storage of
foods.
10
Hazard Analysis and Critical Control Point (HACCP) programs
A279 Regulations on productions processes, n.e.s.
A280 Geographical restrictions Prohibition import of specified products from countries or regions due to presence of
phytosanitary hazards
Examples
Restriction to import plants originating in tropical regions where certain plagues may
exist; or to prevent from other phytosanitary hazards as insects, mites, and plant
pathogens.
A290 Sanitary and Phytosanitary regulations n.e.s.
A300 Conformity assessment related to SPS
Control, inspection and approval procedure, including procedures for sampling, testing and
inspection, evaluation, verification and assurance of conformity; and accreditation and
approval. Please check the Procedural Obstacles list in the following section to see if any of
those may be combined with the Conformity Assessment measures.
Examples
Usually these inspections can be done by specialized companies providing inspection,
testing, and certification & verification services to ensure that products, services & systems
meet quality, safety & performance
A310 Certification requirement Certification required by the importing country that could be granted either in the
exporting or the importing country
Examples
Certificate of conformity for materials in contact with food (containers, papers,
plastics, etc.). if the certification has to be granted in the exporting country, see A311.
If it has to be granted in the importing country, please see A312.
A311 Certification granted by the country of origin Importing country requires certifications that are granted in the exporting
country.
A312 Certification granted by the destination country Importing country requires certifications that are granted in the IMPORTING
country.
Examples
Some countries will only trust their local agencies providing the results of tests
and other certifications.
.
A320 Lack of recognition
Certifications issued by a country or authority are not recognized by the importing
country.
A321 Lack of acceptance of internationally recognized accredited conformity
assessment bodies International certifications are not recognized by the importing country.
11
A322 Lack of acceptance of certificates of conformity assessment bodies issued in
the country of origin Certifications from exporters are not recognized by the importing country.
Certifications may include health certificates, analysis results, etc.
A323 Lack of acceptance of Self Declaration of Conformity (SDoC) SDoC: procedure by which a supplier provides a written assurance that a
product conforms to specified requirements
A329 Lack of recognition, n.e.s.
A330 Testing requirement
Includes sampling requirement and are usually associated to testing or laboratory fees.
Examples
An example is surveillance upon entering food into a country. To ensure that the
product is in compliance with food legislation, a testing and sampling is arranged.
After getting the laboratory results, the decision is made to clear or reject
consignment, if the consignment meets or fails to meet the criteria.
A340 Inspection and clearance requirement Imports require inspection and/or clearance to be accepted. Inspection can be done by
public or private entities.
Examples
Similar to testing, but it does not include a laboratory testing. It may refer to the
requirement to inspect animals or plant parts before entry is allowed.
A350 Registration requirement
Importers may need to be registered in the importing country. Exporters need to
contact a registered importer.
Examples It is often the case for sensitive products such as medicines and/drugs
A360 Repetition in destination market of identical tests for same or equivalent
regulations
The same phytosanitary analysis made in the exporting country will be required to be
done again in the importing country
A370 Translation requirement for reports or certificates
Documents must be translated to the language of the destination countries, or
translations are to be done by an recognized institution.
A380 Requirement to pass through specified entry point or customs
Certain goods must be cleared at a specific entry point within a destination country for
availability of testing or inspection facility
Examples
Points of entry that have the infrastructure to receive animals that will pas through
quarantine requirements
A390 Conformity assessment related to SPS n.e.s.
12
A900 Sanitary and phytosanitary measures, n.e.s
B000 TECHNICAL BARRIERS TO TRADE
Technical barriers to trade (TBT) are regulations/standards referring to technical specification of
products and conformity assessment systems thereof
Examples
Divided into voluntary (B100) and compulsory (the rest). Please note there can be TBT on food
products, if the measure is not for food safety
B100 Voluntary standards
Guidelines or characteristics for products or processes and production methods (e.g. size,
colour, composition, quality, security and safety), approved by a recognized bodies at
international, national or sub-national levels, or those set established by private companies.
Compliance is not mandatory as voluntary standards do not have the authority of law.
Examples
Child Resistant (CR) Packaging, which are "voluntary standards activities" for child-
resistant packaging, including closure systems, pharmaceutical and medical packaging,
mechanical dispensers as well as standards for flammable liquid containers and packages
designed to reduce poisonings of children younger than 5 years old.
Voluntary standards can be international, national or subnational
B110 International Standards
Are standards developed by international standards organisations. By definition,
international standards are suitable for universal, worldwide use.
Examples
Standards developed by agencies such as International Organisation for
Standardisation (ISO), International Electrotechnical Commission (IEC), or
International Telecommunication Union (ITU).
B111 Production Process standards
Standards defining processes for the production chain that will contribute to the
quality, authenticity, security, safety (other than food safety) and suitability of
products.
Examples
Standards developed by agencies such as ISO, IEC or ITU that state that
production must take place according to certain safety, environmental and labor
standards. Example: ISO 9000:2005 on quality plan, specifying which
procedures and associated resources shall be applied by whom and when to a
specific project, product, process or contract.
B112 Product characteristics standards
Standards defining the characteristics requested for products (e.g. size, colour,
components and quality) and contribute to the quality, authenticity, security,
safety (other than food safety) and suitability of products. Also includes those
related to product performance.
Examples
They may be simple, like those in the electric plug or complex like those in a
computer interface. Standards affect the way products are designed and control
13
the ways that products interface with each other. Standard facilitate the
interaction of sellers and buyers or users and providers and the interfacing of
one product with another, for example by providing information. Example: IEC
60061 (Lamp caps and holders together with gauges for the control of
interchangeability and safety) contains the recommendations of the IEC in
regard to lamp caps and holders in general use, together with relevant gauges,
with the object of securing international interchangeability.
B113 Management system standards Standards that provide requirements or give guidance on good management
practice, establishing a framework on production
Examples The quality system of a manufacturing business might include looking at more
efficient manufacturing processes or speeding up distribution.
Automotive manufacturers may prefer suppliers that comply with ISO/TS
16949:2002. This standard from 2002 incorporates the verbatim text of ISO
9001:2000 plus automotive-specific requirements in areas such as employee
competence, awareness and training, design and development, production and
service provision, control of monitoring and measuring devices and
measurement, analysis and improvement.
B119 International Standards, n.e.s.
B120 National Standards
Technical standards adopted by national government to be applied all over the country
and regulating product technical characteristics and production processes.
Examples
Any voluntary standard requested by a national institution
B121 Production process standards
Standards defining processes for the production chain that will contribute to the
security, safety (other than food safety) and suitability of products.
Examples
Implement ‘effluent treatment plant’ for leather producers or for textile
producers. It may also apply for food, if it is not for safety reasons. An example
is the requirement to use dolphin-friendly system to fish tuna.
B122 Product characteristics standards
Standards defining the characteristics requested for products (e.g. size, colour,
components and quality) and contribute to the security, safety (other than food
safety) and suitability of products. Also includes those related to product
performance.
Examples
Characteristics required for Geotextiles and geotextile-related products - for use
in earthworks, foundations and retaining structures.
Product requirements and evaluation of conformity for vehicle restraint systems
Windows and doors - Product standard, performance characteristics
B129 National Standards, n.e.s.
14
B130 Subnational Standards
Standards that may be imposed by a state or region within a country imposing extra
requirements beyond national standards.
Examples
A state within a country imposed import standards stating that the material of
packages or bottles of imported items should be recyclable for environment protection
reasons. Regarding wood/timber trade, some states within a country, could impose
FSC certificates and labels.
B131 Production process standards
Standards defining processes for the production chain that will contribute to the
security, safety (other than food safety) and suitability of products.
Examples
Same as B121 but at a subnational level
B132 Product characteristics standards
Standards defining the characteristics requested for products (e.g. size, colour,
components and quality) and contribute to the security, safety and suitability of
products. Also includes those related to product performance.
Examples
Same as B122 but imposed at a subnational level
B139 Subnational Sandards, n.e.s.
B140 Private Standards *
Standards demanded by non-governmental bodies, such as private companies.
Standards developed by a particular firm.
Examples
Private standards-setters may be a group of companies in a certain industry. An
example is the ANSI/AGA standard for gas space heaters for safety reasons. Other
example is a standard developed by a particular IT company for software.
B200 Technical regulations
B210 Labelling, Marking and Packaging requirements
B211 Labelling requirements
Measures regulating the kind, colour and size of printing on packages and labels
and defining the information that should be provided to the consumer. Labelling
is any written, electronic, or graphic communication on the packaging or on a
separate but associated label, or on the product itself.
Examples
It may include requirements on the official language to be used as well as
technical information on the product, such as voltage, components, instruction
on use, safety and security advises, etc.
B212 Marking requirements
15
Measures defining the information for transport and customs, that the
transport/distribution packaging of goods should carry.
Examples
Handling or storage conditions according to type of product, typically sings as
"FRAGILE" or "THIS SIDE UP" etc.
B213 Packaging requirements
Measures regulating the mode in which goods must be or cannot be packed, and
defining the packaging materials to be used.
Examples
Requirements to use of palletized containers or special packages for the
protection of sensitive or fragile products.
B220 Traceability requirements
Traceability is the disclosure of information regarding the origin of materials and
parts, including product processing history, and the distribution and location of the
product after delivery. It aims to track through all phases of production and
distribution.
Examples
Some products require detailed tracking of parts and materials, processing history of
distribution and location, either because of their value or for warranty, regulatory,
safety, or liability issues. Records should show how and where raw materials and
products were processed, to allow products and problems to be traced to the source.
B221 Origin of materials and parts
Disclosure of information about geographical origin of materials and parts.
Examples
For example, car tires and automobile manufacturers should be able to easily
find and recall defective tires by matching the tire to the automobile's VIN
number.
B222 Processing history Disclosure of information needed about all stages of production.
Examples
This is a requirement of information describing step-by-step every stage of
production; fabrication and / or assembly.
B223 Distribution and location of products after delivery Disclosure of information needed about transport, handling and storage of
products after the production is finished.
Examples
This is the information inventory regarding when and where the product was
located during the period after the production phase ended until it reached the
final consumer.
B229 Traceability requirements, n.e.s.
B230 Tolerance limits for residues or restricted use of certain substances, and
prohibition
16
Maximum concentration or restrictions to use certain substances. Includes the cases of
prohibition.
B231 Tolerance limits for residues or contamination by certain substances
Maximum or Minimum Level for toxic and other harmful substances and
contaminants that enter the product during the production process It includes
prohibition.
Example
Limit on solvents in paints. The maximum level of lead allowed in consumer
paints may be 0.5 percent. One other acronym usually used in chemical
products would be PPM - Parts per million, a way of quantifying small
concentrations.
List of hazardous paints and / or chemicals that should not be used or carefully
used for the fabrication of children's toys.
B232 Restricted use of certain substances
Restriction on the use of certain substances as components, which are not
contaminants or toxic and are therefore reasonably expected to exist in the final
product. Their specification is also important to prevent the risks arising from
their use.
Examples
Certain regulations are in place for food containers made of polyvinyl chloride
plastic; vinyl chloride monomer must not exceed 1 mg per kg when detected.
B240 Regulation on genetically modified organisms (for reasons other than food
safety) and other foreign species.
Restriction on imports if genetically modified organisms are used in the production.
Includes cases of restriction to introduce species that may affect biological diversity.
Examples
Measures including regulations to protect bio-diversity and natural plants from been
contaminated by GMOs. In this case measures are protecting flora and are not for
food safety.
B250 Identity requirement
Conditions to be satisfied in order to identify a product with a certain denomination.
Examples
Request of minimum percentage content of an ingredient that gives the name to the
final product such as cocoa content in "chocolate".
B260 Environment-specific requirement
Conditions or requirements that aim to prevent environmental damage or ensure
protection of the environment.
Examples
Typical environmental measures could be protection measures related to
chlorofluorocarbons (CFCs), as the setting up authorization systems for imports and
exports of substances which deplete the ozone layer and a ban on exporting
refrigeration/air conditioning equipment which operate by means of substances
depleting the ozone layer and which are banned in many countries.
17
(This entry should be used for measures that cannot fit in any other category, such as
eco labels. Please note that if there is a licence, restriction on production process or
certification, these should go into those categories and not in this one)
B270 Other product characteristics requirements
B280 Other production process requirements
B290 Technical regulations n.e.s.
B300 Conformity assessment related to TBT
All the procedures for control, inspection and approval, including procedures for sampling,
testing and inspection, evaluation, verification and assurance of conformity, and
accreditation and approval. Please check the Procedural Obstacles list in the following
section to see if any of those may be combined with the Conformity Assessment measures.
B310 Certification requirement A certification is requested by some official norm, it is not private or
optional/voluntary. The certification required by the importing country and could be
granted either in the exporting or importing country.
Example
A certificate delivered by a private accredited or governmental organization stating
that the products comply with any norm or requirement to be reached by the product.
It is compulsory
B311 Certification granted in the country of origin Importing country requires certifications that are granted by the exporting
country.
B312 Certification granted in the destination country Requirement to obtain certifications from the importing country
B320 Lack of recognition
Certifications issued by a country or authority are not recognized by the importing
country.
B321 Lack of acceptance of internationally recognized accredited conformity
assessment bodies International certifications are not recognized by the importing country.
B322 Lack of acceptance of certificates of conformity assessment bodies issued in
the country of origin
Certifications from exporters are not recognized by the importing country.
B323 Lack of acceptance of Self Declaration of Conformity (SDoC)
SDoC: procedure by which a supplier provides a written assurance that a
product conforms to specified requirements
B329 Lack of recognition, n.e.s.
18
B330 Testing requirement
Includes sampling requirement and are usually associated to testing or laboratory fees.
Example
An example is testing for safety compliance for motor vehicle and its equipment.
B340 Inspection and clearance requirement
Imports require inspection and/or clearance to be accepted. Inspection can be done by
public or private entities.
Examples
Commercial items can be inspected and cleared by customs officials or by specialized
private companies depending on the importing country.
B350 Registration requirement
Importers may need to be registered in the importing country. It is often the case for
sensitive products that may be related to security issues. Exporters need to contact a
registered importer.
Example
In most of countries registration will be required to import medicine, chemicals,
weapons and many other items consider as "sensitive products"
B360 Repetition in destination market of identical tests for same or equivalent
regulations
For a given regulation, a same test must be performed within a destination country at
national, regional and/or local entry points
B370 Translation requirement for reports or certificates
Documents must be translated to the language of the destination countries, or
translations are to be done by an authenticated institution. This translation
requirement may also be requested for security reasons for "user manuals" in the case
of electrical or mechanical items.
B380 Requirement to pass through specified entry point or customs
Certain goods must be cleared at a specific entry point within a destination country for
availability of testing or inspection facility
Examples
B390 Conformity assessment related to TBT n.e.s.
B900 Technical barriers to trade, n.e.s.
C000 OTHER TECHNICAL MEASURES
C100 Pre-shipment inspection
A physical inspection of goods before they are shipped in the country of export, which
establishes the exact nature of the goods. The inspection assures that the goods are in
accordance with the accompanying documents that specify their customs tariff code, quality,
quantity and price.
Example
19
The buyer or the importer requests a pre-shipment inspection of the shipment of textiles he
wants to import in order to be sure that the colours and types of textiles are in accord with
what he bought.
C200 Special custom formalities not related to SPS/TBT
Formalities to be fulfilled at the customs, which are not related to the administration of
SPS/TBT measures
C210 Documentation requirement
Requirement to provide any document to declare shipments to Customs in the country
of import
Example
The following documents can be requested: Packing List; Certificate of Origin;
Special Certificates; Licenses and Permits; Import Licenses; Import Permits;
Technical Certificates; Customs Valuation; Transaction Value; Price Paid or Payable;
The actual value that was used for the purchase of the goods. Please check the
Procedural Obstacles list in the following section to see if any of those may be
combined with the Documentation Requirement measures.
C220 Direct consignment requirement Goods must be shipped directly from the country of origin, without stopping at a third
country
Examples
The rule that originating products must be transported directly from the exporting
country to the preference-giving country of destination is an important common
feature of all GSP rules of origin. Its purpose is to enable the customs administration
of the importing preference-giving country to be satisfied that the imported products
are identical to the products which left the exporting country, and have not been
manipulated, substituted or further processed in any third country of transit.
C230 Requirement to pass through specified port of customs
Goods must pass through a designated entry point and/ or customs office, which
might slow down the import clearance process.
Examples
DVD players will only be able to pass through only one custom point.
C240 Transportation restrictions
Particular transportations conditions, norms or laws stipulated by National Authorities
of each country that may be considered as restrictive
Examples
Regulations related to security as the ones for safe transport of radioactive material as
INF ("irradiated nuclear fuel"); radioisotopes for industry; movement of radioactive
waste and shipment of nuclear fuel cycle materials.
C241 Restrictive Air transportations regulations
Examples
Restrictive air transport regulations will be the focus on shipments of biological
materials, as diagnostic specimens; dangerous goods and infectious materials.,
based in the 46th edition of the International Air Transport Association
Dangerous Goods Regulations (IATA DGR)
20
C242 Restrictive Sea transportations regulations
Examples
C243 Restrictive land transportations regulations
Examples
Restrictions such as "No night driving or distance restrictions". Road controlling
authorities can restrict the movement of heavy vehicles so as to prevent damage
to roads and bridges of limited strength. Most of the requirements in these
regulations have now been converted into Land Transport Rules. Some
requirements relating to vehicle noise, brakes, steering and couplings remain in
these regulations.
C290 Special custom formalities not related to SPS/TBT, n.e.s.
C900 Technical Measures n.e.s.
D000 PRICE CONTROL MEASURES
Price control measures are implemented to control the prices of imported articles in order to:
support the domestic price of certain products when the import price of these goods are lower;
establish the domestic price of certain products because of price fluctuation in domestic markets,
or price instability in a foreign market; and counteract the damage resulting from the occurrence
of "unfair" foreign trade practices.
Examples
D100 Administrative pricing
By administrative price fixing, the authorities of the importing country take into account the
domestic prices of the producer or consumer; establish floor and ceiling price limits; or
revert to determined international market values. There may be different price fixing
methods, such as minimum import prices or prices set according to a reference
D110 Minimum import prices
Pre-established import price below which imports cannot take place
Examples
There is still a wide array of trade measures that shield domestic rice markets from
international competition, including minimum import prices.
D120 Reference prices and other price controls
Pre-established import price which authorities of the importing country use as
reference to set a floor or ceiling price
Examples
The price dictated may be determined by a certain activity, as is the case for reference
prices for agricultural products based on "farm-gate price", which is the net value of
the product when it leaves the farm, after marketing costs have been subtracted. Prices
may also be determined by government authority without any comparison with any
pther product or activity
D190 Administrative pricing n.e.s.
21
D200 Voluntary export price restraints (VERs)
A voluntary export price restraint is an arrangement in which the exporter agrees to keep the
price of his goods above a certain level.1 Voluntary export restraints are among the most
popular trade policy instruments employed by the trading nations in the last fifty years.
VERs tend to be sector-specific, bilateral, quantitative, temporary and discriminatory.
Examples
In May 1981, with the American auto industry mired in recession, Japanese car makers
agreed to limit exports of passenger cars to the United States. This "voluntary export
restraint" (VER) program, initially supported by the Reagan administration, allowed only
1.68 million Japanese cars into the U.S. each year. The cap was raised to 1.85 million cars
in 1984, and to 2.30 million in 1985, before the program was terminated in 1994.
D300 Variable charges
Variable charges are taxes or levies aimed at bringing the market prices of imported
agricultural and food products in line with the prices of corresponding domestic products2.
Primary commodities may be charged per total weight, while charges on processed
foodstuffs can be levied in proportion to the primary product contents in the final product.
These charges include:
D310 Variable levies The rate of tax varies inversely with the price of imports. These charges are applied
mainly to primary products. It may be called flexible import fee.
Examples
A Tariff which increases or decreases in response to changes in world prices of
imported goods in such a way that the import price after payment of the duty remains
constant (i.e. the level of Protection remains the same.)
D320 Variable components The tax includes a fixed component and a variable component. These charges are
applied mainly to processed products where the variable part is applied on the primary
products or ingredients included the final product. It may be called compensatory
element.
D390 Variable charges n.e.s
D400 Antidumping measures
Antidumping measures are taken against a dumping action of an exporter. It is considered
that dumping takes place when a product is introduced into the commerce of an importing
country at less than its normal value, i.e. if the export price of the product exported is less
than the comparable price, in the ordinary course of trade, for the like product when
destined for consumption in the exporting country.
D410 Antidumping investigations
Antidumping investigations are initiated either following a complaint by local
producers of similar goods or self-initiated by importing country authorities when
they have cause to believe that dumping may be materially injurious to national
1 These measures were formally prohibited by the WTO Agreements, but in reality they can be applied in case, for example
of situations where these products are in danger facing anti-dumping, safeguard or countervailing measures 2 All these measures were formally prohibited by the WTO Agreement on Agriculture, Article 4.
22
competing producers or third parties' exporters. Provisional duties may be applied
during the investigation.
D420 Antidumping duties Antidumping duties are levied on certain goods originating from specific trading
partner(s) to offset the dumping margin. Duty rates are generally enterprise-specific.
D430 Price undertakings
Undertakings to increase the export price may be offered by exporters to avoid the
imposition of antidumping duties. Under WTO rules, prices can be negotiated for this
purpose, but only after the dumping has been proved.
D500 Countervailing measures
Countervailing measures are intended to offset any direct or indirect subsidy granted by
authorities in the exporting country. These may take the form of countervailing duties or
undertakings by the exporting firms or by authorities of the subsidizing country.
D510 Countervailing investigations
Countervailing investigations are initiated either following a complaint by local
producers of similar goods or self-initiated by the importing country authority to
determine whether the imported goods are subsidized and cause material injury.
D520 Countervailing duties
Duties levied on certain goods to offset the amount of subsidization granted by the
exporter on the production or trade of these goods, when the subsidy is assumed to
hurt domestic industry.
D530 Price undertakings Undertakings to increase the export price may be offered by exporters to avoid the
imposition of countervailing duties. Under WTO rules, prices can be negotiated for
this purpose, but only after the injurious effect of the subsidy has been proved.
D600 Safeguard duties
Emergency and/or temporary duties imposed as a safeguard action. A country may take a
“safeguard” action (i.e., restrict imports of a product temporarily) to protect a specific
domestic industry from an increase in imports of any product which is causing, or which is
threatening to cause, serious injury to the domestic industry that produces like or directly
competitive products.
D700 Seasonal duties
Seasonal duties are applicable at certain times of the year, usually in connection with
agricultural products.
D900 Price control measures n.e.s.
E000 QUANTITY CONTROL MEASURES
Quantity control measures are aimed at restraining the quantity of goods that can be imported,
regardless of whether they come from different sources or one specific supplier. These measures
23
can take the form of restrictive licensing, fixing of a predetermined quota, or through
prohibitions3. These measures include:
E100 Non-automatic licence
It is an import licence, which is not granted automatically. The licence may either be issued
on a discretionary basis or may require specific criteria to be met before it is granted.
E110 Licence with no specific ex-ante criteria
This licence, which is sometimes also referred to as a discretionary licence, is issued
at the discretion of the issuing authority.
E120 Licence for specified use This licence is limited to operations generating anticipated benefit in important
domains of the economy, such as export production, investment projects, etc.
E130 Licence linked with local production
This licence requires the compulsory linkage of imports with local market outputs.
E140 Licence combined with or replaced by special import authorization
In addition to or instead of a licence issued by the main licensing body (usually the
ministry of trade), a special import authorization or an inscription in a register is
required by a specialized authority which is coordinating a sector of the domestic
economy (ministry of industry, ministry of agriculture, etc).
E150 Licence for non-economic reasons This licence is granted for political, religious reasons, or others, which are not
economic.
E151 Licence for political reasons
This licence is issued for political reasons rather than economic.
E159 Licence for non-economic reasons, n.e.s.
E190 Non-automatic licensing n.e.s.
E200 Quotas
Quotas involve restricting the importation of specified products through the setting of a
maximum quantity or value of goods authorized for import. The different forms of quotas
are:
E210 Global quotas Global quotas are quotas established on the basis of the total quantity or value of
imports of specific products, which can be filled on a first-come, first-served basis, or
pre-allocated to different suppliers
E211 Unallocated quotas
3 Most quantity control measures are formally prohibited by the GATT 1994, but can be applied under specifically
determined circumstances (Article XI of GATT 1994
24
Quotas that are filled on a first-come, first-served basis without allocating
among exporters
E212 Allocated to exporting countries
Quotas which are pre-allocated among potential exporters
E220 Bilateral quotas
Quotas of imports reserved for a specific country
E230 Seasonal quotas
Quotas of imports for a given period of the year, usually set for certain agricultural
goods.
E240 Quotas linked with purchase of local goods
Quotas defined as a percentage of the value of similar locally purchased goods.
E250 Quotas for non-economic reasons
Quotas for other reasons, rather than economic.
E251 Quota for political reasons
Quotas that are granted on the basis of political rather than economic reasons.
E259 Quotas for non-economic reasons, n.e.s.
E260 Tariff Rate Quotas A system of multiple tariff rates applicable to a same product. The lower tariff rates
apply up to a quota of imports, and the higher rates are charged on imports which
exceed the quota amount. Quota may be defined in terms of quantity or value.
E270 Quotas linked with domestic production
Compulsory linkage of imports (of materials or parts) with local production
E290 Quotas n.e.s.
E300 Prohibitions
E310 Total prohibition (not for SPS reasons)
Prohibition without any additional conditions or qualifications
E320 Suspension of issuance of licences
The suspension of issuance of licences is a form of de facto prohibition. This situation
may arise in cases related to short-term balance-of-payments difficulties, or for other
reasons.
E330 Seasonal prohibition
Seasonal prohibition involves the prohibition of imports during a given period of the
year. This is usually applied to certain agricultural products.
E340 Temporary prohibition
25
This prohibition is set only for a limited period of time, though it may not refer to a
fixed ending date. It is usually for urgent matters.
E350 Prohibition of importation in bulk
Requirement that products must be imported in small packages or containers
E360 Prohibition of products infringing patents or intellectual property rights
Prohibition of copies or imitations of patented or trademarked products
E370 Prohibition for non-economic reasons
Prohibitions for political, religious reasons, or others, which are not economic.
E371 Prohibition for religious, moral or cultural reasons
Some countries will prohibit the import, use, or possession of any item that is
held to be contrary to the tenets of theirs Faith. This could include non religious
materials, pork, alcohol products and illicit drugs or any other item that could be
contrary to religion precepts. Any product that is related to pork even if it's not
used as food like pig skin is still prohibited in some countries.
E372 Prohibition for political reasons (Embargo)
Prohibition of imports from a country or group of countries, applied for political
reasons.
E379 Prohibition for non-economic reasons, n.e.s.
E390 Prohibitions n.e.s.
E400 Quantitative safeguard measures
Measures having effect on quantitative restrictions. Quantitative safeguard measures are
adopted when the government of the importing country wishes to prevent or remedy serious
injuries resulting from a sudden increase of imports, or to facilitate adjustment4.
E500 Export restraint arrangement
An arrangement by which an exporter agrees to limit exports in order to avoid imposition of
restrictions by the importing country, such as quotas, raised tariffs or any other import
controls5. The arrangement may be concluded at either government or industry level.
E510 Voluntary export restraint arrangements (VERs)
Voluntary export restraints are arrangements made by government or industry of an
exporting country to voluntarily limit exports in order to avoid imposition of
mandatory restrictions by the importing country7.
E511 Quota agreement
Export quotas, which a given exporting country would accept from an importing
country to avoid imposition of mandatory restrictions
4 Under the WTO Agreement on Safeguards, justification should be provided on the use of such measures instead of price-
based measures such as additional customs duties. 5 Such arrangements are formally prohibited by the WTO Agreements.
26
E512 Consultation agreement
Agreement that includes provisions for consultation with a view to introducing
restrictions under certain circumstances
E513 Administrative co-operation agreement
Agreement that includes provisions for administrative cooperation with a view
to avoiding disruptions in bilateral trade.
E590 Export restraint arrangements n.e.s.
E900 Quantity control measures n.e.s.
F000 PARA-TARIFF MEASURES
Other measures that increase the cost off imports in a manner similar to tariff measures, i.e. by
fixed percentage or by a fixed amount, calculated respectively on the basis of the value and the
quantity, are known as para-tariff measures. Four groups are distinguished: customs surcharges;
additional taxes and charges; internal taxes and charges levied on imports; and decreed custom
valuation.
F100 Customs Surcharges
Customs surcharges, which are also called surtax or additional duty, is an ad hoc trade
policy instrument to raise fiscal revenues or to protect domestic industries.
F200 Additional taxes and charges
Additional charges, which are levied on imported goods in addition to customs duties and
surcharges and which have no internal equivalent, and which comprise various taxes and
fees. The category of additional charges includes the tax on foreign exchange transactions,
stamp tax, import licence fee, consular invoice fee, statistical tax, tax on transport facilities
and charges for sensitive product categories. Various other taxes, such as the export
promotion fund tax, taxes for the special funds, the municipal tax, registration fee on
imported motor vehicles, customs formality tax, etc., are classified as additional charges,
n.e.s.6
F210 Tax on foreign exchange transactions
F220 Stamp tax
F230 Import licence fee
F240 Consular invoice fee
F250 Statistical tax
F260 Merchandise handling or storing fees
F270 Tax on transport facilities
F280 Taxes and charges for sensitive product categories
F290 Additional charges n.e.s.
F300 Internal taxes and charges levied on imports
6 It should be noted that Article VIII of GATT states that fees and charges other than customs duties and internal taxes "shall
be limited in amount to the approximate cost of services rendered and shall not represent an indirect protection to domestic
products or a taxation of imports or exports for fiscal purposes."
27
Article III of the GATT Agreement allows internal taxes to be applied to imports; however,
these taxes should not be higher than those applied to similar domestic products. Such taxes
include:
F310 General sales taxes
The general sales tax levied on imports is the equivalent of those internal taxes that
are applied to all or most products. Three types of internal taxes can be distinguished:
first, the one commonly known as sales tax, which is an ad valorem tax based on the
gross receipts of sales of goods, collected at regular intervals from traders; secondly,
the turnover tax or multiple sales tax, which is a tax imposed at more than one level of
production and distribution and is based on gross receipts, resulting in a accumulation
of taxes; thirdly, the value-added tax which is a modified turnover tax based on the
net value added instead of on the gross receipts, avoiding accumulation of taxes and
not affecting the price structure and the allocation of resources.
F320 Excise taxes
An internal tax imposed on selected types of commodities, usually of a luxurious or
non-essential nature, such as alcoholic beverages and tobacco. This tax is levied either
at an ad-valorem or on a specific basis, separate from, and in addition to, the general
sales taxes
F330 Taxes and charges for sensitive product categories
Charges that include emission charges, product taxes and administrative charges.
These latter charges are meant to recover the costs of administrative control systems
F390 Internal taxes and charges levied on imports n.e.s.
F400 Decreed Customs Valuations
Customs duties and other charges on selected imports can be levied on the basis of a
decreed value of goods (the so-called "valeur mercuriale" in French). This practice is
presented as a means to avoid fraud or to protect domestic industry. The decreed value de
facto transforms an ad-valorem duty into a specific duty7.
F900 Para-tariff measures n.e.s
G000 FINANCE MEASURES
Financial measures are intended to regulate the access to and cost of foreign exchange for imports
and define the terms of payment. They may increase import costs in the same manner as tariff
measures.
G100 Advance payment requirement
Advance payment requirements related to the value of the import transaction and/or related
import taxes, are made at the time an application is lodged, or when an import licence is
issued. These payment requirements can consist of:
G110 Advance import deposit
7 Can be appealed according to the WTO rules
28
Advance import deposits require the importer to deposit a percentage of the value of
the import transaction before receiving the goods. No interest is paid on these
deposits.
G120 Cash margin requirement
Cash margin requirements entail depositing the total amount of the transaction value
in a foreign currency, or a specified part of it, in a commercial bank, before the
opening of a letter of credit.
G130 Advance payment of customs duties
Advance payment of custom duties entails paying all or part of the customs duties in
advance; no interest is paid on these advance payments.
G140 Refundable deposits for sensitive product categories
Refundable deposits are charges which are refunded when the used products or the
containers they came in are returned to a collection system.
G190 Advance payment requirements n.e.s.
G200 Multiple exchange rates
Varying exchange rates for imports, depending on the product category. Usually, the
official rate is reserved for essential commodities while the other goods must be paid at
commercial rates or occasionally by buying foreign exchange through auctions.8
G300 Restrictive official foreign exchange allocation
These restrictions are usually executed by the central bank in the form of permits, visas,
authorizations, etc, and is intended to control import flows. Foreign exchange allocation is
sometimes prohibited under this measure.
G310 Prohibition of foreign exchange allocation
No official foreign exchange allocations available to pay for imports.
G320 Bank authorization
A special authorization needs to be obtained from the central bank.
G330 Licence linked with non-official foreign exchange
A licence is requiered to use the foreign exchange even if access to and cost of foreign
exchange is not officially regulated.
G331 External foreign exchange
A licence is granted only for imports related to technical assistance projects and
other sources of external foreign exchange.
G332 Importers' own foreign exchange
A licence is granted if importers have foreign exchange held in an overseas
bank.
G339 Licence linked with non-official foreign exchange, n.e.s.
8 The use of multiple exchange rates are formally prohibited by the GATT 1994
29
G390 Restrictive official foreign exchange allocation, n.e.s.
G400 Regulations concerning terms of payment for imports
These regulations cover the terms of payment of imports and the obtaining and use of credit
(foreign or domestic) to finance imports.
G500 Transfer delays, queuing
Transfer delays and queuing relate to the maximum permitted delays between the date that
goods have been delivered and the date of the final settlement of the imported goods
(usually 90, 180 or 360 days for consumer goods and industrial inputs and two to five years
for capital goods). Queuing takes place when the prescribed delays cannot be observed
because of foreign exchange shortages, and when transactions are settled after a longer
delay.
G600 Surrender requirement
This requirement relates to the surrender of foreign exchange earnings to the central bank.
G900 Finance measures n.e.s.
H000 ANTI-COMPETITIVE MEASURES
Measures to grant exclusive or special preferences or privileges to one or more limited group of
economic operators, for social, fiscal, economic or political reasons.
H100 Single channel for imports
The requirement that all imports, or imports of selected commodities, have to be channelled
through specific enterprises or agencies, sometimes state-owned or state-controlled. They
are granted exclusive import rights.
H110 State trading administration, for importing
H120 Sole importing agency
H190 Single channel for imports, n.e.s.
H200 Compulsory national service
Compulsory national service consists of government-backed exclusive rights of national
insurance and shipping companies.
H210 Compulsory national insurance
H220 Compulsory national transport
H290 Compulsory national service, n.e.s.
H900 Anti-competitive measures, n.e.s.
I000 EXPORT RELATED MEASURES
Export-related measures are measures applied by the government of the exporting country on
exported goods.
I100 Export taxes
30
Export taxes/duties are taxes collected on goods or commodities by the government of the
exporting country. Export taxes can be set either on a specific or an ad valorem basis
I200 Export quantitative restriction
Restrictions to the quantity of goods exported to a specific country or countries by the
government of the exporting country for reasons such as: shortage of goods in the domestic
market; regulating domestic prices; avoiding antidumping measures; or for political
reasons9.
I210 Export Prohibition
Prohibition of exports of certain products
I220 Export quotas
Quotas that limit value or volume of exports.
I230 Licensing or permit requirements to export
Exporters are required to obtain licensing or permit by the government of the
exporting country to export products.
I240 Registration, tight regulation or restriction to export
Requirement to register products before being exported (for monitoring purposes)
I290 Export quantitative restrictions, n.e.s.
I300 Certification
Requirement by the exporting country to obtain sanitary, phytosanitary or other certification
before the goods are exported
I400 Inspection fee
A fee levied by the government authority of exporting country to cover the cost of
inspection for exporting products
I500 State trading administration
All or parts of exports of selected commodities have to be channelled through specific
enterprises identified by governments.
I600 Dual pricing schemes
Different prices for products are applied depending on whether they are sold on domestic
market or export markets.
I900 Export measures n.e.s.
J000 TRADE-RELATED INVESTMENT MEASURES
J100 Local content measures
9 All of these measures are formally prohibited by the GATT 1994, but may be applied under specific situations identified in
Article XI of GATT 1994.
31
Requirement to use certain minimum levels of locally made component, which restrict the
level of imported components.
J200 Trade balancing measures
Measures limiting the purchase or use of imported products by an enterprise to an amount
related to the volume or value of local products that it exports
J900 Trade-related investment measures, n.e.s
K000 DISTRIBUTION RESTRICTIONS*
Restriction to limit and rule the way the products are distributed. It may be controlled through
additional license or certification requirement10
.
Examples
Car dealers in a certain country belong exclusively to car producers in that same country; so car
importers from foreign countries cannot use those points of sale because they belong exclusively
to the local car producers. They would need to set up their own points of sale, and this is much
costly.
L000 RESTRICTION ON POST-SALES SERVICES*
Measures restricting producers of exported goods in exporting countries to provide post-sales
service in the importing country.
Examples
Some goods, especially highly technology intensive goods, may need the help of technicians from
the same foreign company to install or fix them. If visa is not granted to these technical workers,
the sale of the good is hindered.
M000 SUBSIDIES*
Financial contribution by a government or government body to a production structure, being a
particular industry or company, such as direct transfer of funds or potential transfer of funds (e.g.
grants, loans, equity infusions), payments to a funding mechanism and income or price support.
N000 GOVERNMENT PROCUREMENT RESTRICTIONS*
Measures controlling the purchase of goods by government agencies, generally by preferring
national providers. Please review procedural obstacles that may be associated with this measure.
O000 INTELLECTUAL PROPERTY*
Intellectual property legislation covers patents, trademarks, industrial designs, lay-out designs of
integrated circuits, copyright, geographical indications and trade secrets.
P000 RULES OF ORIGIN*
Rules of origin cover laws, regulations and administrative determinations of general application
applied by government of importing countries to determine the country of origin of goods. Rules
of origin can restrict trade when it is difficult to determine the origin of the final product if raw
materials and parts come from different countries. Rules of origin are important in implementing
such trade policy instruments as anti-dumping and countervailing duties, origin marking, and
safeguard measures.
10
These restrictions are closely related with regulations of distribution services.
32
CLASSIFICATION OF PROCEDURAL OBSTACLES
A. Arbitrary or inconsistent behaviour:
A1: Behaviour of customs officials or any other government official
A2: With regard to how your product has been classified or valued
A3: In the manner procedures, regulations or requirements have been applied
B. Discriminatory behaviour favouring specific producers or suppliers:
B1: Favouring local suppliers or producers in destination markets
B2: Favouring suppliers or producers from other countries
B3: Favouring large (or small) companies in destination
C. Inefficiency or cases of outright obstruction consisting of:
C1: Too much documentation or forms to be supplied or completed
C2: Too strict, too detailed or redundant testing/certification or labelling requirement
C3: Substantial delays in obtaining authorization/approval
C4: Complex clearing mechanism such as a need to obtain approval from several entities
C5: Short submission deadlines to supply information
C6: Outdated procedures such as lack of automation
C7: Lack of resources such as understaffing or scarce equipment in destination market
D. Non-transparent practices consisting of:
D1: Inadequate information on laws/regulations/registration
D2: Unannounced change of procedure, regulation or requirement
D3: There is no focal point for information
D4: Opaque government bid or reimbursement processes
D5: Opaque dispute resolution process
D6: An ‘informal’ payment was requested
E. Legal obstacles consisting of:
E1: Lack of enforcement with regard to breaches of patents, copyrights, trademarks, etc.
E2: Inadequate dispute resolution or appeals mechanisms and processes
E3: Inadequate legal infrastructure
F. Unusually high fees or charges
F1: Fees or charges are unusually high (e.g. fees for stamp, testing, or other services)
* Until further decision by MAST members, no efforts will be made to collect measures under these categories from official
sources. These categories have been created in order to reflect potential concerns by traders through surveys and
questionnaires.