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: A000 B000 C000 D000 E000 F000 G000 H000 I000 J000 K000 L000 M000 N000 O000 P000

SANITARY AND PHYTOSANITARY MEASURES TECHNICAL BARRIERS TO TRADE OTHER TECHNICAL MEASURES PRICE CONTROL MEASURES QUANTITY CONTROL MEASURES PARA-TARIFF MEASURES FINANCE MEASURES ANTI-COMPETITIVE MEASURES EXPORT RELATED MEASURES TRADE-RELATED INVESTMENT MEASURES DISTRIBUTION RESTRICTIONS* RESTRICTION ON POST-SALES SERVICES* SUBSIDIES* GOVERNMENT PROCUREMENT RESTRICTIONS* INTELLECTUAL PROPERTY* 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.

The second and third level of disaggregation: 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.

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The third and fourth level of disaggregation: 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.

A211 Labelling requirements, A212 Marking requirements, and A213 Packaging requirements.

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.

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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

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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 Measure Procedural Obstacle associated with the measure

Code Description A310 Certification requirement C2 Too strict, too detailed or redundant testing/certification or labelling requirement

Case 2 Measure

Code Description B231 Tolerance limits for residues or contamination by certain substances D2 Unannounced change of procedure, regulation or requirement

Procedural Obstacle associated with the measure

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.

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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

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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

A200

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. Sanitary and phytosanitary regulations

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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

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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

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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 timebound 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.

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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.

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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.

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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 childresistant 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

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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.

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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

B200 B210

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. Technical regulations 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

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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

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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.

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(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.

17

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

18

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)

19

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 C900

Special custom formalities not related to SPS/TBT, n.e.s. 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.

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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.

21

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

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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

23

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

24

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 pricebased measures such as additional customs duties. 5 Such arrangements are formally prohibited by the WTO Agreements.

25

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 E900

Export restraint arrangements n.e.s. 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 F220 F230 F240 F250 F260 F270 F280 F290 F300

Tax on foreign exchange transactions Stamp tax Import licence fee Consular invoice fee Statistical tax Merchandise handling or storing fees Tax on transport facilities Taxes and charges for sensitive product categories Additional charges n.e.s. 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."

26

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

G110

7

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: Advance import deposit

Can be appealed according to the WTO rules

27

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

28

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

H110 H120 H190 H200

H210 H220 H290 H900

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. State trading administration, for importing Sole importing agency Single channel for imports, n.e.s. Compulsory national service Compulsory national service consists of government-backed exclusive rights of national insurance and shipping companies. Compulsory national insurance Compulsory national transport Compulsory national service, n.e.s. 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

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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.

30

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.

31

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.

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