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Trade Control MeasuresTrade Control Measures

Presented By:Soumavo DuttaChoudhury

109D46

Daniels John, Radebaugh Lee, Sullivan Daniel(2006)

International Business: Environments and Operations ,10thEdition, Pearsons Education

www.unctad.org

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T rade Control MeasuresT rade Control Measures

T RAINS ( T R ade A nalysis and IN formation System) provides online accessto indicators of T rade Control Measures

It also provides country notes of trade regimes

Indicators of T rade Control Measures-

1. T ariff measures

2. Para-tariff measures

3. Finance measures4. Automatic licensing measures

5. Quality Control Measures

6. Monopolistic measures

7. T echnical measures

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T ariff MeasuresT ariff Measures

y Statutory Custom Duties- Hong Kong Free Port, Indonesia- No customs for mailed goods

y MFN Dutiesy

GA TT

ceiling dutiesy T ariff Quota Duties

- Chicken in Malaysia( quota rates 50% to 70%)y Seasonal Duties

- Seasonal Duty on Jet Fuel, Russia

y T emporary Reduced Duties- 8% refund on text books, Australia

y T emporary Increased Duties- T emporary Import Duty on import of US Biodiesel - EU

y Preferential Duties under T rade Agreements

- Malaysia offered tariff reduction on 15 tariff lines through GS T P

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Para T ariff MeasuresPara T ariff Measures

y Customs Surcharges

- T op Surtax is 5.4% for US

y Additional Charges

- Motor Vehicle T ax of 0 48% , Croatia

y Internal taxes and charges levied on imports

- French Government on Greece

y Decreed Customs Valuation

- "valeur mercuriale" in French

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Finance MeasuresFinance Measuresy Advance Payment Requirementsy Advance Import Depositsy Cash Margin Requirement y Advance Payment of Customs Duty y Refundable Deposits for sensitive product categoriesy Multiple Exchange Ratesy Restrictive official foreign exchange allocationy Regulations concerning terms of payment for importsy T ransfer delays, queuing

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Automatic Licensing MeasuresAutomatic Licensing Measures

y Automatic License

- Importation of selected industrial products, Malaysia y Import Monitoring

- Import of selected heavy machinery,i997,Malaysia

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Quality Control MeasuresQuality Control Measuresy Non-automatic licensing y Licence with no specific ex-ante criteria y Licence for selected purchasers

-Import license of ammunition to arms license owner, Malaysia y Licence for specific usey Licence linked with local production

- French Company Nutriset for Plumpy Nut y Purchase of local goodsy Local content requirement

- US Israel free tradey Barter or counter trade - Poland paid Coca Cola in Beery Licence linked with non-official foreign exchangey Licence combined with or replaced by special import authorization

- Recorder appliances for Kuwait

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Quality Control MeasuresQuality Control Measures

y Prior authorization for sensitive product categories

- Import of explosives to be authorized by Royal Malaysian Policey Quotasy Global Quotas

- Ukraine on food grainy Bilateral Quotas

- Japan on man made textiles to USy Seasonal Quotas

- Japan T una quota halvedy Quotas Linked with export performancey Quotas linked with purchase of local goodsy Quotas for sensitive product categories

- Import License for unmanufactured tobacco in Malaysia

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Quality Control MeasuresQuality Control Measuresy

Prohibitionsy T otal Prohibition - Publications which bear images against religious

beliefs prohibited in Malaysia y Suspension of Issuance of licences

- Balance of Paymentsy Seasonal prohibitiony T emporary prohibition

- T emporary Prohibition of animal products in Malaysia y Import Diversification

- Chinas crude Oil from Brazil and Russia y Prohibition for Sensitive Product Categoriesy Prohibition for political reasonsy Export restraint arrangements Export of textile and clothing

products from Malaysia to W T O countriesy Enterprise specific restrictions

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Monopolistic MeasuresMonopolistic Measures

y Single Channel for Imports

- Rice stockpile in Malaysia y Compulsory National Services

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T echnical MeasuresT echnical Measures

y T echnical regulationsy Product characteristics requirementsy Marking requirementsy

Labeling requirements Korea asks for country of origin labely Packaging requirementsy T esting, inspection and quarantine requirementsy Information requirementsy Requirement relative to transit y

Requirement to pass through specified customsy Pre-shipment inspectiony Special customs formalitiesy Obligation to return used product

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