Name of presentation

Session 1: Identifying types of Non Tariff BarrierDr. Tamanna ChaturvediConsultantIndian Institute of Foreign TradeMSMEs: such an important segment of Indian Economy

29.8 million enterprises in various industries, employing 69 million people

45 percent of Indian industrial output

40 percent of the exports8%Growth in overall GDP

11.5 %Contribution of MSMEs to Indias GDP growth

the USP

providing employment opportunities at comparatively lower cost of capital than large scale industriesindustrialization of rural & backward areas

complementary to large industries as ancillary units

reduce regional imbalances and assure equitable distribution of national income &wealth

New Delhi: India has over 85,000 sick micro and small enterprises, with UP at 16,280 accounting for highest number of units, Minister of Micro, Small and Medium Enterprises (MSME) Mahabir Prasad said.

West Bengal is at the second place with 11,660 sick units, of 9.21 lakh units in it has in total. Bihar, which has over six lakh units, 8,137 are sick. There were no sick units in Mizoram, Lakshadweep and Andaman and Nicobar, Prasad said.

Trend in Agricultural exportsTrend in Manufactured goods exports200520062007200820092010201120122013CAGRGR 2012-13Engineering goods17282.72162129463.737235.54702238108.958057.767260.264853.520.25-3.71Gems & jewellery13756.115526.815966.319688.827999.829010.540469.544815.243425.416.99-3.20Glassware636.86717.16853.17939.81976.12880.591075.521289.811383.4510.306.77Footwear 73.7554.8442.7146.0443.5643.4557.9279.91126.5710.0536.86Leather 2420.592697.263014.663504.33561.653362.83909.984790.894866.659.421.56Textiles 6991.017783.218475.29743.69095.99151.912621.114327.314406.79.130.55Sports goods102.25134.57126.67134.18143.78140.91166.23210.19206.598.49-1.74Readymade garments6558.678616.478886.329692.110952.410710.911599.913683.512916.18.43-5.94Handicrafts 377.26461.91437.7508.5301.44224.92256.86277.72200.02-9.68-38.85Tamanna ChaturvediConsultantIndian Institute of Foreign TradeManaging Global compliance in Exports

%20091947?NTBstariffsCompliance with buyer s requirements

In how many ways can you think exports from your country can be hampered?

Why restrict market access?

http://gapcertification.com/

Traceability RequirementsCheck list for SPS barrieran SPS measure developed in a non-transparent manneran SPS measure--including requirements, testing and certification--addressing food safety, animal health or plant health, which is not based on sciencean SPS measure not based on an international standard (Codex, OIE, IPPC)an SPS requirement that applies only to foreign companiesa vague or unclear process to comply with an SPS measurean unreasonable time frame to comply with the SPS measure or testing requirement

Solution to Case 4: Re-Registration Requirements on Medical Devices in Korea

Koreas actions raised concerns under the World Trade Organizations Technical Barriers to Trade Agreement, which requires that such regulations not be unnecessarily trade restrictive. Foreign medical device manufacturers and importers no longer need to re-register their products if they choose to relocate their production to another country.

Solution to Case 5: Market Access for U.S. Companies in the Korean Cosmetics Industry

The USG team raised the issue during the U.S.-Korea Bilateral Trade Consultations in Washington and Seoul, and during meetings at the World Trade Organization Technical Barriers to Trade Committee in Geneva. In early 2012, the Korean Ministry of Health and Welfare promulgated final KCA Enforcement Guidelines, which contained a one-year grace period (until February 2013) to allow cosmetic imports to adjust to the new labeling guidelines. With ITAs assistance, the U.S. cosmetics industry earned sufficient time to prepare and adapt to the new changes.Solution to Case 6: Chart Industries, Georgia enter Japanese Market

The WTO Agreement on Technical Barriers to Trade requires that conformity assessment procedures not create unnecessary obstacles to trade. ITA specialists proposed a solution during meetings with representatives of Japans Ministry of Economy, Trade, and Industry (METI), suggesting that the High Pressure Gas Safety Institute of Japan review Chart's U.S. testing records and product safety history to satisfy certification requirements. METI encouraged the Institute to adopt this solution, which it supported and subsequently certified Chart products. As a result, Chart will no longer have to go through the Japanese vibration test and its product will now be available in Japan without modifications.

Check list for TBT barriera burdensome or unclear new national standarda standard not based on an international standarda burdensome or unclear labeling requirementa vague or unclear process to comply with a standarda factory inspection that is difficult to obtaina national quality mark that is unclear or difficult to meeta burdensome or unclear testing or certification requirementa burdensome or unclear product registration requirementa standard or testing requirement that applies only to foreign companiesa duplicative or redundant testing or certification requirementan unreasonable time frame to comply with the standard or testing requirementa regulation developed in a non-transparent mannerunnecessary or unreasonable administrative costs

SPS or TBT ?human or animal health from food-borne riskshuman health from animal- or plant-carried diseasesanimals and plants from pests or diseases examples:pesticide residuesfood additiveshuman disease control (unless its food safety)nutritional claimsfood packaging and quality examples:labelling (unless related to food safety)pesticide handling seat belts

SPS MeasuresTBT Measures

23Solution to Case 7: Ohios Diebold Gains Duty Free Access into Indias $100+ Million IT MarketU.S. Government agencies, placed sustained pressure on the Indian Commerce and Finance Ministries to reclassify Diebolds machines appropriately as ATMs. As a result, India finally reclassified Diebolds machines, reducing the tariffs Diebold owed from 30% to zero, and ensuring its continued duty-free access to the $100+ million market for the company in India. Solution to Case 8: An Open Bidding Process for Chinas 3G Networks

Between January 2009 and September 2010, a team of ITA specialists worked with several key Chinese ministries to ensure that bids would be awarded in a fair and transparent manner, technologically neutral, based on commercial considerations, and consistent with Chinas WTO commitments. As a result, Motorola reported positive news in the 3G bidding process, with the company winning a $310 million contract.The Agreement on Government Procurement (GPA) is a plurilateral agreement under the auspices of the World Trade Organization (WTO) that entered into force in 1981, it was then renegotiated in parallel with the Uruguay Round in 1994, and its current form entered into force on 1 January 1996. It regulates the government procurement of goods and services by the public authorities of the parties to the agreement, based on the principles of openness, transparency and non-discrimination.

Check list for Government ProcurementAre you prohibited from bidding on foreign government contracts?Are there inappropriate technical requirements in bid documents that exclude your goods or services?Are there mandatory domestic content requirements or price preferences in foreign government tenders?Are there bid deadlines that are too short to prepare and submit proposals?Are there restrictions that prohibit you from applying to be on a qualified suppliers list?Are there problems with procedures to challenge the winning bid; do you have problems getting these procedures?Are there contract liabilities and guarantees that are too costly and keep your company from competing for foreign government contracts?

Solution to Case 9: Recall of Counterfeit Sporting Goods in Egypt

Intellectual property contributes significantly to the US economy and is important to many industries, including footwear and apparel.The outcome in this case theEgyptian Olympic Committee (EOC) recalled the counterfeit sporting goods and allowed Nike to provide genuine products to Egyptian athletes competing in the London 2012 Summer Olympics. In addition, the Government of Egypt indicated it will open an investigation into the EOC procurement practices which helped draw public attention to the importance of respecting U.S. intellectual property rights. Solution to Case 10: Rights Protection in Oman for Indianapolis, Indiana based U.S. pharmaceutical company Eli LillyITA, working with other U.S. government agencies, alerted Omani officials that Oman would potentially breach its patent responsibilities, and facilitated meetings between Eli Lilly representatives in the region and Omani authorities. As a result of this government and private sector cooperative approach, Omani officials reversed their course and did not break their patent obligations by purchasing the generic olanzapine. Solution to Case11: Regain Ownership of its Trademark in Russia

ITA, the U.S. Patent and Trademark Office, Office of the U.S. Trade Representative, and the U.S. Department of State all worked to resolve this issue. In December 2011, ITA arranged for a senior U.S. Government official to call officials at Russias Federal Service for Intellectual Property to express interest in proper protection of IPR. The conversation produced results and in January 2012, the Russian company dropped its suit against Johnson Outdoors and relinquished the trademark at no cost to Johnson Outdoors.The company is now the rightful owner of its trademark in Russia and is pleased that it continues to enjoy access to the Russian marketCheck list for IPR issuesAre you unable to register the patent, trademark, or copyright with a foreign government? Are similar trademarks, patents, or copyrights registered in that country?Have you trusted a foreign government with your intellectual property and has it passed your business confidential information, technology, or trade secrets on to a local company without your permission? Is the local company now your main competitor?Is a foreign government not helping your agent, distributor, or wholly-owned subsidiary to stop a violation of your trademark, patent or copyright's violation?Is your patent, trademark, or copyright being used illegally in a foreign market?

Forms of IPRTrademarks or BrandsCopyright Trade SecretsPatentsDesigns Geographical IndicationsPlant Varieties

Solution to Case 12: Harley-Davidson, the Motorcycle Manufacturer, Overcomes Bahrain Trade Barrier

A team of ITA specialists and representatives from other USG agencies advocated on behalf of Harley-Davidson and provided specific guidance on the FTA rules of origin for transshipped goods which resulted in the GOB allowing for transshipment stop-overs. In addition, ITA and representatives from U.S. Customs and Border Protection provided training to Bahrain customs officers. Due to these efforts, Harley-Davidson was granted duty-free access and has received a refund of all duties paid from the Government of Bahrain. Solution to Case 13: Streamlined Procedures for Distilled Spirits entry in Turkey

Turkeys import licensing procedures were not in line with their commitments set forth in the WTO Import Licensing Agreement. Leveraging a number of bilateral forums and the WTO Import Licensing Committee, This issue was raised in various meetings of the U.S.-Turkey Economic Partnership Commission (EPC) and of the U.S.-Turkey Trade and Investment Framework Agreement (TIFA). As a result, Turkey simplified and streamlined its documentation requirements for such products, removing this market access barrier for all U.S. spirits exporters to Turkey.

Solution to Case 14: Smooth Supply of Papa Johns Products to El Salvador

The ITA team, with the support of the U.S. Department of Agriculture (USDA) and the Office of the U.S. Trade Representative (USTR), worked with the Government of El Salvador to ensure that its quota allocation for cheese reflected market demand and remained consistent with CAFTA obligation. In March 2012, Papa Johns reported that it was pleased with its 2012 cheese allocation as mozzarella was given over 70 percent of the initially assigned cheese quota. The Government of El Salvador is now taking into account market demand for the product.Import licensingThe Licensing Agreement allows WTO member countries to implement either automatic or non-automatic import licensing systems. Automatic licenses, which are freely granted by a government and do not restrict imports, may be required to gather trade data, origin statistics or other information. In contrast, non-automatic licenses are not granted in all cases. They are used to administer quotas or other types of import restrictions. According to the agreement, non-automatic licenses may not have trade-distorting effects on importsCheck list for Import licensing issuesAre there unreasonable fees associated with obtaining an import license?Is there an overly burdensome process for obtaining an import license?Are you having problems learning where/how to obtain an import license?Is the purpose for an import license unclear?Are there long delays in receiving approval for an import license?

How can the Agreement help?Rules and procedures for submitting import license applications must be published before they come into effect, including information on eligibility requirements for persons, firms or institutions applying for licenses and a listing of all products subject to licensing requirements;Country's forms and procedures (including both application and renewal forms) must be made as simple as possible;Applicants must have a reasonable amount of time to submit their license applications; andImporters generally should only be required to contact a single administrative body to obtain a license, and in no event can they be required to apply to more than three such bodies. License applicants should have at least 21 days (with provisions for extensions if necessary) to submit their applications. Any changes in a country's rules on import licensing procedures or in the list of products subject to import licenses must be published, where possible, 21 days in advance of the effective date of the changes and in such a way that governments and traders can become familiar with the changes. This information, along with copies of all implementing legislation or directives, must also be submitted to the Secretariat of the World Trade OrganizationPreshipment AgreementThe Agreement on Preshipment Inspection of the World Trade Organization (WTO) provides that the preshipment inspection process should not give rise to unnecessary delays or unequal treatment. It establishes an agreed set of transparent procedures, including deadlines, for these inspections and creates an independent, impartial review body to resolve disputes between importers and preshipment inspection companies.Preshipment inspections are used by many developing countries to inspect prospective imports before they are shipped from the exporting country. The private companies that carry out the inspections verify that the price, exchange rate, financial terms, quantity, quality and customs classification of the transaction are consistent with what was ordered.

Check list for PSIdelays on the part of PSI companies in undertaking and completing inspections, thus slowing down the entire exporting process;delays by PSI companies in issuing the required Report of Findings, without which the customs authorities in the importing country will not authorize the goods to be unloaded;arbitrary adjustments in the price of a shipment;arbitrary disqualification of a shipment, frequently without an explanation of why the shipment does not comply with the country's customs regulations; anddemands by PSI companies for unneeded confidential and proprietary business information.

How can the Agreement help?Lays out fair and understandable procedures and time schedulesMakes the governments of importing countries responsible for the actions of the PSI companies that they use.Requires inspections to be carried out on the date agreed upon by the exporter and the PSI company.Exporter must receive from the PSI company -- within 5 working days of the inspection -- either a Clean Report of Findings (which indicates approval of the shipment) or a detailed explanation, in writing, of why such a Report could not be issued.Requires that price verification must follow prescribed guidelines. PSI companies are not to request certain business proprietary information and must ensure that any confidential business information is not released.

Check list for corruption issuesDo public officials ask you for bribes in exchange for services, contracts, permits, licenses or other business you may have or would like to have with them?Do you know whether your competitors are promising, offering or giving such bribes to public officials?

Modes of ServicesGATS applies to four modes:

(a) Cross border movement of service suppliers (b) Establishment of commercial presence in the country where service is provided. (c) Temporary movement of natural persons to another country to provide services there. (d) Movement of consumers to the country of importation.

Check list for GATS issuesQuotas (direct access to labor)Limitations on foreign capital participationLimitations on the size or location of your establishmentDo you face restrictions in establishing or expanding a commercial presence (e.g., joint venture, branch, affiliate, representative office) to provide your service in a foreign market?Do you experience foreign ownership limitations or limits on the number of company directors or managers in providing your service in overseas markets?Do you face citizenship, nationality or residency requirements in providing your service in a foreign market?Does your company experience limitations or restrictions on the temporary entry/mobility of key business personnel (including executives, managers and other skilled intercorporate transferees) in your business operations in foreign markets?

Arena of International Standards

ISO 9000 Quality managementThe standards provide guidance and tools for companies and organizations who want to ensure that their products and services consistently meet customers requirements, and that quality is consistently improved.ISO 22000Food safety managementISO has developed a series of standards for food safety management systems that can be used by any organization in the food supply chain. Specific prerequisites for food manufacturing, farming etc. Traceability in the feed and food chain. ISO 3166International Standard for country codes and codes for their subdivisionsThe purpose of ISO 3166 is to define internationally recognised codes of letters and/or numbers that we can use when we refer to countries and subdivisions. For example ID-RI is the Riau province of Indonesia and NG-RI is the Rivers province in Nigeria. ISO 26000Social StandardThis provides guidance on how businesses and organizations can operate in a socially responsible way. This means acting in an ethical and transparent way that contributes to the health and welfare of societyISO 50001Energy managementThis provides a framework of requirements for organizations to (i) Develop a policy for more efficient use of energy (ii) Fix targets and objectives to meet the policy (iii) Use data to better understand and make decisions about energy use (iv) Review how well the policy works, and continually improve energy management. ISO 14001Environmental Management Systems (EMS)worlds most recognized framework. Addresses not only the environmental aspects of an organizations processes, but also those of its products ansd servicesISO 31000Risk managementIt cannot be used for certification purposes, but does provide guidance for internal or external audit programmes. Organizations using it can compare their risk management practices with an internationally recognised benchmark, providing sound principles for effective management and corporate governance.ISO/IEC 27001Information security managementUsing this family of standards will help your organization manage the security of assets such as financial information, intellectual property, employee details or information entrusted to you by third parties.ISO 24510:2007Water usageProvide guidelines for the assessment, improvement and management of service activities for drinking water and wastewater systems. They can help water authorities and operators meet the expectations of consumers and the principles of sustainable development. A standard for crisis management of water utilities is underway.Russia announces 'full embargo' on most food from US, EU

"Russia is introducing a full embargo on import of beef, pork, fruit and vegetable produce, poultry, fish, cheese, milk and dairy products from the European Union, United States, Australia, Canada and Norway,"

Visiting EU review team may reconsider Alphonso embargoJayashree Bhosale, ET Bureau Sep 8, 2014, 06.09AM IST

A three-member delegation of the European Union Food and Veterinary Office is currently touring India to audit export facilities in the country on the government's request, raising hopes among traders that the EU may review the ban that it had imposed on Alphonso mangoes, among other products, till December 2015.

The EU had imposed a ban on India's premium Alphonso mangoes and eggplant, bitter gourd, snake gourd and the taro plant from May 1, saying that it had found contamination of fruit fly and other quarantine pests.

"On the request of the government of India, an EU team visited the centre for perishable cargo complex at the international airport in Mumbai, two pack houses of private traders in Vashi and one facility being set up by the Maharashtra government," Voluntary export restraint (VER)government imposed limit on the quantity of goods that can be exported out of another country during a specified period of time.VERs arise when the import-competing industries seek protection from a surge of imports from particular exporting countries. VERs are then offered by the exporter to appease the importing countryA self imposed limitation on the amount of a product that one country is permitted to export to another. Imposing a voluntary export restraint (VER) will often be a nations official response to a request made by the country being exported to for protection for its domestic businesses against such foreign competition. This is typically done to prevent the imposition of trade tariffs. Also called export restraint agreement.

Trade impact on SPS: role of public and private standardsIndividual Firm StandardsCollective National standardsCollective International StandardsNature's Choice(Tesco)Filires Qualit(Carrefour) versionapplied in multiplecountriesField-to-Fork (Marks& Spencer)Filire Controlle(Auchan) versionapplied in multiplecountriesP.Q.C. (PercorsoQualit Conad)Albert Heijn BV: AHExcellentAssured Food Standards(UK)British Retail ConsortiumGlobal StandardFreedom Food (UK)Qualitat Sicherheit (QS)Assured Combinable Crops Scheme (UK)Sachsens AhrenwortSachsenQualitatslammfleischQC Emilia RomagnaStichting StreekproductionVlaams BrabantGlobalGAP International FoodStandard Safe Quality Food (SQF)1000/ 2000 Marine StewardshipCouncil (MSC) Forest StewardshipCouncil (FSC)

Product safetyManufactured products

CE Marking [compulsory to a range of products and hazards, incl. e.g. machinery, toys, protective wear, electrical appliances, pressure vessels. Full list is mentioned under the New Approach Directive]Indicates that the product conforms to the European applicable and legal demands in terms of safety, health and consumer protection

55Product safetyCE marking

EU Directives (per product group) describe the essential requirements (laid down in norms as defined by CEN, CENELEC or ETSI), which differ as per the safety risk involvedFrom self-declaration by the manufacturer to testing and verification by testing institutes (notified bodies) http://www.newapproach.org/ Product overview, directives with full legal texts and applicable standards (EN norms)Safety of toys; Directive 88/378/EEC

Tamanna Chaturveditchaturvedi@iift.ac.in+91-11-26967558Thankyou