NON TARIFF BARRIERS

BY NORR IDAYU AND HASNUR SHIMA 

Non-tariff barriers have been exists since the 1960s and can be seen in various forms including a set quality standards for imported goods, import quotas, boycott, hygiene and health requirements, voluntary export restrictions, subsidies, and so on. The level of barriers whether large or small is difference between one obstacles to another obstacle. However, all non-tariff barriers are intended to reduce imports and directly give more benefits and advantages to local producers.

Types of non-tariff barriers are tariffs, quotas, subsidies, foreign exchange controls, embargo and restriction on economy. A non-tariff barrier aims to reduce imports and directly provide more benefits or advantages to domestic producers. Tariffs or import duties is a control protections to protect local industries from competition. Tariff is a tax levied on imported goods. Thus, the price of imported goods will rise and make its price is relatively expensive compared to local prices. Import duties are also a result of the national income.

The purpose of international barriers as a source of government revenue, protect young people and local industry, anti-dumping, competition, and safety. Sources of government revenue as tariffs can provide revenue to the government. Protection of young industry and domestic industry such as quotas, tariffs and foreign exchange controls can limit the supply of imported goods and local industry to expand it. Dumping is an import restricting if foreign country doing the dumping.

With the reduction in import tariffs in the past two decades, non-tariff barriers have specialities as a protective measure for the embargoed countries. ASEAN countries like Vietnam and Malaysia agreed if this non-tariff barrier is eliminate. The main purpose is to facilitate bilateral trade more easily implemented without any restriction. In conclusion, the regulations imposed by the government, especially in the field of safety and technical standards as well as field marketing needs can have a significant impact on the pattern of world trade.