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SHORT MANUAL FOR USING THE

CLASSIFICATION OF NON-TARIFF MEASURES

This classification of Non-Tariff Measures (NTM) was discussed and agreed upon by several

International Organizations in the context of the Multi-Agency Support Team (MAST) appointed by the

Group of Eminent People, which in turn, was appointed by The Secretary general of UNCTAD. It is the

first time all these organizations gather to discuss and define a list of measures that are thought that

could pose a barrier to trade. This classification will be first used in the Pilot Project for collecting

NTM data in 2008, implemented by UNCTAD and ITC.

How to understand the codes?

There are two classifications. The first is for the measures themselves, and the second for the

Procedural obstacles that may be associated with them. These last ones are explained below. The main

classification on Non-Tariff Measures has 16 chapters, named with letters from A to P. Inside each

chapter; groups were defined using an alphanumerical codes, and have four levels of disaggregation.

For example, Chapter A000 includes codes A100, A200, A300 and also A900 (this last includes

"others"). The chapter is the letter A and the four main groups in it are listed using hundreds. Then one

of them, say A200, includes A210, A220, A230, A240, A250, A260, A270, A280, A290. The A letter

still refers to the chapter, then the 200 represents the main group, and inside of it there are minor

groupings using tens, from 10 to 90. At the last level, units are used. So, inside the A210 minor

grouping there are three lines: A211, A212, and A213.

The first and second level of disaggregation:

The second and third level of disaggregation:

A000 SANITARY AND PHYTOSANITARY MEASURES

B000 TECHNICAL BARRIERS TO TRADE C000 OTHER TECHNICAL MEASURES D000 PRICE CONTROL MEASURES E000 QUANTITY CONTROL MEASURES F000 PARA-TARIFF MEASURES G000 FINANCE MEASURES H000 ANTI-COMPETITIVE MEASURES I000 EXPORT RELATED MEASURES J000 TRADE-RELATED INVESTMENT MEASURES K000 DISTRIBUTION RESTRICTIONS* L000 RESTRICTION ON POST-SALES SERVICES* M000 SUBSIDIES* N000 GOVERNMENT PROCUREMENT RESTRICTIONS* O000 INTELLECTUAL PROPERTY* P000 RULES OF ORIGIN*

A100 Voluntary standards, A200 Sanitary and phytosanitary regulations, A300 Conformity assessment related to SPS, and A900 Sanitary and phytosanitary measures, n.e.s.

A100 Voluntary standards, A200 Sanitary and phytosanitary regulations,

A300 Conformity assessment related to SPS, and A900 Sanitary and phytosanitary measures, n.e.s.

A210 Labelling, Marking and Packaging requirements, A220 Traceability requirements, A230 Tolerance limits for residues and contaminants, or restricted use of certain substances, A240 Regulation of foods or feeds derived from or produced using GMO, A250 Hygienic requirement, A260 Disease prevention measures, A270 Regulations on productions processes, A280 Geographical restrictions, and A290 Sanitary and Phytosanitary regulations n.e.s.

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The third and fourth level of disaggregation:

How to use the classification?

Each measure has to be classified into only one line, not more. There should be no repetition. The best

option has to be chosen, because there should be only one place to classify each measure applied.

Measures should be preferably be classified using the most detailed code line, but other broader level

may be used as well, but not both for any one measure.

If an export or import transaction could not take place because of a non tariff measure, this should be

also marked in the Classification. The Question 1 in Section 3 of the Questionnaire used in this project

reports if the export/import was not feasible due to financial reasons or to technical reasons.

Can you explain what's in the different chapters?

The Box 1 explains briefly what measures are comprised in each of the main chapters of the

classification.

Box 1

Chapter A, on Sanitary and Phytosanitary Measures, refer to measures affecting areas such as

restriction for substances, quarantine or other measures for preventing dissemination of diseases,

hygienic requirements, and others. It also includes all conformity assessment measures related to

food safety, such as certification, testing and inspection, and any voluntary standard also for

food safety. The chapter is also known as SPS

Chapter B, on Technical Measures, is also known as TBT. It refers to measures as labelling,

marking, packaging, restrictions to avoid contamination, and standards on technical

specifications, and quality requirements. It also includes conformity assessment that relate to

technical measures.

Chapter C, groups other technical measures related to customs formalities.

Chapter D, Price Control measures, group measures that change the price of imports, such as

minimum prices, reference prices, antidumping or countervailing. The prices are not set freely,

but altered according to a government policy

Chapter E, Quantity Control measures, group the measures that restrain the quantity traded,

such as quotas, but also licenses and import prohibitions, which are not SPS related.

Chapter F, on Para-Tariff measures, refer to taxes other than custom tariffs. It groups additional

charges as stamp tax, licenses fees, statistical tax, and also decreed customs valuation.

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

A210 Labelling, Marking and Packaging requirements,

A220 Traceability requirements, A230 Tolerance limits for residues and contaminants, or restricted use of certain substances, A240 Regulation of foods or feeds derived from or produced using GMO, A250 Hygienic requirement, A260 Disease prevention measures, A270 Regulations on productions processes, A280 Geographical restrictions, and A290 Sanitary and Phytosanitary regulations n.e.s.

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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 Code Description

Measure A310 Certification requirement

Procedural Obstacle

associated with the measure

C2 Too strict, too detailed or redundant

testing/certification or labelling requirement

Case 2 Code Description

Measure B231 Tolerance limits for residues or

contamination by certain substances

Procedural Obstacle

associated with the measure

D2 Unannounced change of procedure,

regulation or requirement

Procedural Obstacles can add significantly to the costs of entry and operation in a foreign market.

Incorporating generic categories of Procedural Obstacles as additional “qualifiers” that could be

checked, where applicable, for each type of NTM (no procedural obstacle exists on its own) would

permit describe the problem more precisely and comprehensively. By distinguishing the NTMs from

the procedural issues, the target issue becomes more precise and by combining them, more detailed

information can be drawn.

In what follows, the NTMs are listed and accompanied by its alphanumerical code. Furthermore, a

description and also some possible examples are provided. Then, the procedural Obstacles are listed

with its Coding.

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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 Private Standards*

Standards demanded by private entities, such as organizations representing

supermarket chains and other bodies.

Examples

These standards may rule on pesticide use, traceability and general hygiene of

foodstuffs. The difference is that they are issued by private companies and not from

any governmental agency or international independent body.

A private, voluntary eco-labelling programme- the Flower Label Programme (FLP)

was a German industry-led private initiative that ostensibly aimed to restrict the use of

toxic pesticides in the cultivation of such flowers.

A200 Sanitary and phytosanitary regulations

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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 time-

bound nature.

Examples

Prohibition to import poultry if the area is considered to be affected by avian flu

or restriction on cattle from foot and mouth affected countries.

A262 Quarantine requirement

Requirement to quarantine imports for a certain period. It is not a prohibitive

measure. Quarantine supposes also quarantine fees, inspection fees, veterinary

fees, boarding, fumigation etc.

Examples

The United Kingdom eradicated rabies from their territory by imposing

quarantine requirements for live dogs.

A270 Regulations on production processes: This group of entries registers safety regulations relating to the production process. It

covers primary production (plant & animals) and processing.

Examples

A271 Plant growth processes

A272 Animal raising or catching processes

Examples

A273 Food and feed processing, including storage and transport

Examples

Compulsory compliance with the code of practice for transport and storage of

foods.

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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 child-

resistant packaging, including closure systems, pharmaceutical and medical packaging,

mechanical dispensers as well as standards for flammable liquid containers and packages

designed to reduce poisonings of children younger than 5 years old.

Voluntary standards can be international, national or subnational

B110 International Standards

Are standards developed by international standards organisations. By definition,

international standards are suitable for universal, worldwide use.

Examples

Standards developed by agencies such as International Organisation for

Standardisation (ISO), International Electrotechnical Commission (IEC), or

International Telecommunication Union (ITU).

B111 Production Process standards

Standards defining processes for the production chain that will contribute to the

quality, authenticity, security, safety (other than food safety) and suitability of

products.

Examples

Standards developed by agencies such as ISO, IEC or ITU that state that

production must take place according to certain safety, environmental and labor

standards. Example: ISO 9000:2005 on quality plan, specifying which

procedures and associated resources shall be applied by whom and when to a

specific project, product, process or contract.

B112 Product characteristics standards

Standards defining the characteristics requested for products (e.g. size, colour,

components and quality) and contribute to the quality, authenticity, security,

safety (other than food safety) and suitability of products. Also includes those

related to product performance.

Examples

They may be simple, like those in the electric plug or complex like those in a

computer interface. Standards affect the way products are designed and control

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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 Private Standards *

Standards demanded by non-governmental bodies, such as private companies.

Standards developed by a particular firm.

Examples

Private standards-setters may be a group of companies in a certain industry. An

example is the ANSI/AGA standard for gas space heaters for safety reasons. Other

example is a standard developed by a particular IT company for software.

B200 Technical regulations

B210 Labelling, Marking and Packaging requirements

B211 Labelling requirements

Measures regulating the kind, colour and size of printing on packages and labels

and defining the information that should be provided to the consumer. Labelling

is any written, electronic, or graphic communication on the packaging or on a

separate but associated label, or on the product itself.

Examples

It may include requirements on the official language to be used as well as

technical information on the product, such as voltage, components, instruction

on use, safety and security advises, etc.

B212 Marking requirements

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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

16

Maximum concentration or restrictions to use certain substances. Includes the cases of

prohibition.

B231 Tolerance limits for residues or contamination by certain substances

Maximum or Minimum Level for toxic and other harmful substances and

contaminants that enter the product during the production process It includes

prohibition.

Example

Limit on solvents in paints. The maximum level of lead allowed in consumer

paints may be 0.5 percent. One other acronym usually used in chemical

products would be PPM - Parts per million, a way of quantifying small

concentrations.

List of hazardous paints and / or chemicals that should not be used or carefully

used for the fabrication of children's toys.

B232 Restricted use of certain substances

Restriction on the use of certain substances as components, which are not

contaminants or toxic and are therefore reasonably expected to exist in the final

product. Their specification is also important to prevent the risks arising from

their use.

Examples

Certain regulations are in place for food containers made of polyvinyl chloride

plastic; vinyl chloride monomer must not exceed 1 mg per kg when detected.

B240 Regulation on genetically modified organisms (for reasons other than food

safety) and other foreign species.

Restriction on imports if genetically modified organisms are used in the production.

Includes cases of restriction to introduce species that may affect biological diversity.

Examples

Measures including regulations to protect bio-diversity and natural plants from been

contaminated by GMOs. In this case measures are protecting flora and are not for

food safety.

B250 Identity requirement

Conditions to be satisfied in order to identify a product with a certain denomination.

Examples

Request of minimum percentage content of an ingredient that gives the name to the

final product such as cocoa content in "chocolate".

B260 Environment-specific requirement

Conditions or requirements that aim to prevent environmental damage or ensure

protection of the environment.

Examples

Typical environmental measures could be protection measures related to

chlorofluorocarbons (CFCs), as the setting up authorization systems for imports and

exports of substances which deplete the ozone layer and a ban on exporting

refrigeration/air conditioning equipment which operate by means of substances

depleting the ozone layer and which are banned in many countries.

17

(This entry should be used for measures that cannot fit in any other category, such as

eco labels. Please note that if there is a licence, restriction on production process or

certification, these should go into those categories and not in this one)

B270 Other product characteristics requirements

B280 Other production process requirements

B290 Technical regulations n.e.s.

B300 Conformity assessment related to TBT

All the procedures for control, inspection and approval, including procedures for sampling,

testing and inspection, evaluation, verification and assurance of conformity, and

accreditation and approval. Please check the Procedural Obstacles list in the following

section to see if any of those may be combined with the Conformity Assessment measures.

B310 Certification requirement A certification is requested by some official norm, it is not private or

optional/voluntary. The certification required by the importing country and could be

granted either in the exporting or importing country.

Example

A certificate delivered by a private accredited or governmental organization stating

that the products comply with any norm or requirement to be reached by the product.

It is compulsory

B311 Certification granted in the country of origin Importing country requires certifications that are granted by the exporting

country.

B312 Certification granted in the destination country Requirement to obtain certifications from the importing country

B320 Lack of recognition

Certifications issued by a country or authority are not recognized by the importing

country.

B321 Lack of acceptance of internationally recognized accredited conformity

assessment bodies International certifications are not recognized by the importing country.

B322 Lack of acceptance of certificates of conformity assessment bodies issued in

the country of origin

Certifications from exporters are not recognized by the importing country.

B323 Lack of acceptance of Self Declaration of Conformity (SDoC)

SDoC: procedure by which a supplier provides a written assurance that a

product conforms to specified requirements

B329 Lack of recognition, n.e.s.

18

B330 Testing requirement

Includes sampling requirement and are usually associated to testing or laboratory fees.

Example

An example is testing for safety compliance for motor vehicle and its equipment.

B340 Inspection and clearance requirement

Imports require inspection and/or clearance to be accepted. Inspection can be done by

public or private entities.

Examples

Commercial items can be inspected and cleared by customs officials or by specialized

private companies depending on the importing country.

B350 Registration requirement

Importers may need to be registered in the importing country. It is often the case for

sensitive products that may be related to security issues. Exporters need to contact a

registered importer.

Example

In most of countries registration will be required to import medicine, chemicals,

weapons and many other items consider as "sensitive products"

B360 Repetition in destination market of identical tests for same or equivalent

regulations

For a given regulation, a same test must be performed within a destination country at

national, regional and/or local entry points

B370 Translation requirement for reports or certificates

Documents must be translated to the language of the destination countries, or

translations are to be done by an authenticated institution. This translation

requirement may also be requested for security reasons for "user manuals" in the case

of electrical or mechanical items.

B380 Requirement to pass through specified entry point or customs

Certain goods must be cleared at a specific entry point within a destination country for

availability of testing or inspection facility

Examples

B390 Conformity assessment related to TBT n.e.s.

B900 Technical barriers to trade, n.e.s.

C000 OTHER TECHNICAL MEASURES

C100 Pre-shipment inspection

A physical inspection of goods before they are shipped in the country of export, which

establishes the exact nature of the goods. The inspection assures that the goods are in

accordance with the accompanying documents that specify their customs tariff code, quality,

quantity and price.

Example

19

The buyer or the importer requests a pre-shipment inspection of the shipment of textiles he

wants to import in order to be sure that the colours and types of textiles are in accord with

what he bought.

C200 Special custom formalities not related to SPS/TBT

Formalities to be fulfilled at the customs, which are not related to the administration of

SPS/TBT measures

C210 Documentation requirement

Requirement to provide any document to declare shipments to Customs in the country

of import

Example

The following documents can be requested: Packing List; Certificate of Origin;

Special Certificates; Licenses and Permits; Import Licenses; Import Permits;

Technical Certificates; Customs Valuation; Transaction Value; Price Paid or Payable;

The actual value that was used for the purchase of the goods. Please check the

Procedural Obstacles list in the following section to see if any of those may be

combined with the Documentation Requirement measures.

C220 Direct consignment requirement Goods must be shipped directly from the country of origin, without stopping at a third

country

Examples

The rule that originating products must be transported directly from the exporting

country to the preference-giving country of destination is an important common

feature of all GSP rules of origin. Its purpose is to enable the customs administration

of the importing preference-giving country to be satisfied that the imported products

are identical to the products which left the exporting country, and have not been

manipulated, substituted or further processed in any third country of transit.

C230 Requirement to pass through specified port of customs

Goods must pass through a designated entry point and/ or customs office, which

might slow down the import clearance process.

Examples

DVD players will only be able to pass through only one custom point.

C240 Transportation restrictions

Particular transportations conditions, norms or laws stipulated by National Authorities

of each country that may be considered as restrictive

Examples

Regulations related to security as the ones for safe transport of radioactive material as

INF ("irradiated nuclear fuel"); radioisotopes for industry; movement of radioactive

waste and shipment of nuclear fuel cycle materials.

C241 Restrictive Air transportations regulations

Examples

Restrictive air transport regulations will be the focus on shipments of biological

materials, as diagnostic specimens; dangerous goods and infectious materials.,

based in the 46th edition of the International Air Transport Association

Dangerous Goods Regulations (IATA DGR)

20

C242 Restrictive Sea transportations regulations

Examples

C243 Restrictive land transportations regulations

Examples

Restrictions such as "No night driving or distance restrictions". Road controlling

authorities can restrict the movement of heavy vehicles so as to prevent damage

to roads and bridges of limited strength. Most of the requirements in these

regulations have now been converted into Land Transport Rules. Some

requirements relating to vehicle noise, brakes, steering and couplings remain in

these regulations.

C290 Special custom formalities not related to SPS/TBT, n.e.s.

C900 Technical Measures n.e.s.

D000 PRICE CONTROL MEASURES

Price control measures are implemented to control the prices of imported articles in order to:

support the domestic price of certain products when the import price of these goods are lower;

establish the domestic price of certain products because of price fluctuation in domestic markets,

or price instability in a foreign market; and counteract the damage resulting from the occurrence

of "unfair" foreign trade practices.

Examples

D100 Administrative pricing

By administrative price fixing, the authorities of the importing country take into account the

domestic prices of the producer or consumer; establish floor and ceiling price limits; or

revert to determined international market values. There may be different price fixing

methods, such as minimum import prices or prices set according to a reference

D110 Minimum import prices

Pre-established import price below which imports cannot take place

Examples

There is still a wide array of trade measures that shield domestic rice markets from

international competition, including minimum import prices.

D120 Reference prices and other price controls

Pre-established import price which authorities of the importing country use as

reference to set a floor or ceiling price

Examples

The price dictated may be determined by a certain activity, as is the case for reference

prices for agricultural products based on "farm-gate price", which is the net value of

the product when it leaves the farm, after marketing costs have been subtracted. Prices

may also be determined by government authority without any comparison with any

pther product or activity

D190 Administrative pricing n.e.s.

21

D200 Voluntary export price restraints (VERs)

A voluntary export price restraint is an arrangement in which the exporter agrees to keep the

price of his goods above a certain level.1 Voluntary export restraints are among the most

popular trade policy instruments employed by the trading nations in the last fifty years.

VERs tend to be sector-specific, bilateral, quantitative, temporary and discriminatory.

Examples

In May 1981, with the American auto industry mired in recession, Japanese car makers

agreed to limit exports of passenger cars to the United States. This "voluntary export

restraint" (VER) program, initially supported by the Reagan administration, allowed only

1.68 million Japanese cars into the U.S. each year. The cap was raised to 1.85 million cars

in 1984, and to 2.30 million in 1985, before the program was terminated in 1994.

D300 Variable charges

Variable charges are taxes or levies aimed at bringing the market prices of imported

agricultural and food products in line with the prices of corresponding domestic products2.

Primary commodities may be charged per total weight, while charges on processed

foodstuffs can be levied in proportion to the primary product contents in the final product.

These charges include:

D310 Variable levies The rate of tax varies inversely with the price of imports. These charges are applied

mainly to primary products. It may be called flexible import fee.

Examples

A Tariff which increases or decreases in response to changes in world prices of

imported goods in such a way that the import price after payment of the duty remains

constant (i.e. the level of Protection remains the same.)

D320 Variable components The tax includes a fixed component and a variable component. These charges are

applied mainly to processed products where the variable part is applied on the primary

products or ingredients included the final product. It may be called compensatory

element.

D390 Variable charges n.e.s

D400 Antidumping measures

Antidumping measures are taken against a dumping action of an exporter. It is considered

that dumping takes place when a product is introduced into the commerce of an importing

country at less than its normal value, i.e. if the export price of the product exported is less

than the comparable price, in the ordinary course of trade, for the like product when

destined for consumption in the exporting country.

D410 Antidumping investigations

Antidumping investigations are initiated either following a complaint by local

producers of similar goods or self-initiated by importing country authorities when

they have cause to believe that dumping may be materially injurious to national

1 These measures were formally prohibited by the WTO Agreements, but in reality they can be applied in case, for example

of situations where these products are in danger facing anti-dumping, safeguard or countervailing measures 2 All these measures were formally prohibited by the WTO Agreement on Agriculture, Article 4.

22

competing producers or third parties' exporters. Provisional duties may be applied

during the investigation.

D420 Antidumping duties Antidumping duties are levied on certain goods originating from specific trading

partner(s) to offset the dumping margin. Duty rates are generally enterprise-specific.

D430 Price undertakings

Undertakings to increase the export price may be offered by exporters to avoid the

imposition of antidumping duties. Under WTO rules, prices can be negotiated for this

purpose, but only after the dumping has been proved.

D500 Countervailing measures

Countervailing measures are intended to offset any direct or indirect subsidy granted by

authorities in the exporting country. These may take the form of countervailing duties or

undertakings by the exporting firms or by authorities of the subsidizing country.

D510 Countervailing investigations

Countervailing investigations are initiated either following a complaint by local

producers of similar goods or self-initiated by the importing country authority to

determine whether the imported goods are subsidized and cause material injury.

D520 Countervailing duties

Duties levied on certain goods to offset the amount of subsidization granted by the

exporter on the production or trade of these goods, when the subsidy is assumed to

hurt domestic industry.

D530 Price undertakings Undertakings to increase the export price may be offered by exporters to avoid the

imposition of countervailing duties. Under WTO rules, prices can be negotiated for

this purpose, but only after the injurious effect of the subsidy has been proved.

D600 Safeguard duties

Emergency and/or temporary duties imposed as a safeguard action. A country may take a

“safeguard” action (i.e., restrict imports of a product temporarily) to protect a specific

domestic industry from an increase in imports of any product which is causing, or which is

threatening to cause, serious injury to the domestic industry that produces like or directly

competitive products.

D700 Seasonal duties

Seasonal duties are applicable at certain times of the year, usually in connection with

agricultural products.

D900 Price control measures n.e.s.

E000 QUANTITY CONTROL MEASURES

Quantity control measures are aimed at restraining the quantity of goods that can be imported,

regardless of whether they come from different sources or one specific supplier. These measures

23

can take the form of restrictive licensing, fixing of a predetermined quota, or through

prohibitions3. These measures include:

E100 Non-automatic licence

It is an import licence, which is not granted automatically. The licence may either be issued

on a discretionary basis or may require specific criteria to be met before it is granted.

E110 Licence with no specific ex-ante criteria

This licence, which is sometimes also referred to as a discretionary licence, is issued

at the discretion of the issuing authority.

E120 Licence for specified use This licence is limited to operations generating anticipated benefit in important

domains of the economy, such as export production, investment projects, etc.

E130 Licence linked with local production

This licence requires the compulsory linkage of imports with local market outputs.

E140 Licence combined with or replaced by special import authorization

In addition to or instead of a licence issued by the main licensing body (usually the

ministry of trade), a special import authorization or an inscription in a register is

required by a specialized authority which is coordinating a sector of the domestic

economy (ministry of industry, ministry of agriculture, etc).

E150 Licence for non-economic reasons This licence is granted for political, religious reasons, or others, which are not

economic.

E151 Licence for political reasons

This licence is issued for political reasons rather than economic.

E159 Licence for non-economic reasons, n.e.s.

E190 Non-automatic licensing n.e.s.

E200 Quotas

Quotas involve restricting the importation of specified products through the setting of a

maximum quantity or value of goods authorized for import. The different forms of quotas

are:

E210 Global quotas Global quotas are quotas established on the basis of the total quantity or value of

imports of specific products, which can be filled on a first-come, first-served basis, or

pre-allocated to different suppliers

E211 Unallocated quotas

3 Most quantity control measures are formally prohibited by the GATT 1994, but can be applied under specifically

determined circumstances (Article XI of GATT 1994

24

Quotas that are filled on a first-come, first-served basis without allocating

among exporters

E212 Allocated to exporting countries

Quotas which are pre-allocated among potential exporters

E220 Bilateral quotas

Quotas of imports reserved for a specific country

E230 Seasonal quotas

Quotas of imports for a given period of the year, usually set for certain agricultural

goods.

E240 Quotas linked with purchase of local goods

Quotas defined as a percentage of the value of similar locally purchased goods.

E250 Quotas for non-economic reasons

Quotas for other reasons, rather than economic.

E251 Quota for political reasons

Quotas that are granted on the basis of political rather than economic reasons.

E259 Quotas for non-economic reasons, n.e.s.

E260 Tariff Rate Quotas A system of multiple tariff rates applicable to a same product. The lower tariff rates

apply up to a quota of imports, and the higher rates are charged on imports which

exceed the quota amount. Quota may be defined in terms of quantity or value.

E270 Quotas linked with domestic production

Compulsory linkage of imports (of materials or parts) with local production

E290 Quotas n.e.s.

E300 Prohibitions

E310 Total prohibition (not for SPS reasons)

Prohibition without any additional conditions or qualifications

E320 Suspension of issuance of licences

The suspension of issuance of licences is a form of de facto prohibition. This situation

may arise in cases related to short-term balance-of-payments difficulties, or for other

reasons.

E330 Seasonal prohibition

Seasonal prohibition involves the prohibition of imports during a given period of the

year. This is usually applied to certain agricultural products.

E340 Temporary prohibition

25

This prohibition is set only for a limited period of time, though it may not refer to a

fixed ending date. It is usually for urgent matters.

E350 Prohibition of importation in bulk

Requirement that products must be imported in small packages or containers

E360 Prohibition of products infringing patents or intellectual property rights

Prohibition of copies or imitations of patented or trademarked products

E370 Prohibition for non-economic reasons

Prohibitions for political, religious reasons, or others, which are not economic.

E371 Prohibition for religious, moral or cultural reasons

Some countries will prohibit the import, use, or possession of any item that is

held to be contrary to the tenets of theirs Faith. This could include non religious

materials, pork, alcohol products and illicit drugs or any other item that could be

contrary to religion precepts. Any product that is related to pork even if it's not

used as food like pig skin is still prohibited in some countries.

E372 Prohibition for political reasons (Embargo)

Prohibition of imports from a country or group of countries, applied for political

reasons.

E379 Prohibition for non-economic reasons, n.e.s.

E390 Prohibitions n.e.s.

E400 Quantitative safeguard measures

Measures having effect on quantitative restrictions. Quantitative safeguard measures are

adopted when the government of the importing country wishes to prevent or remedy serious

injuries resulting from a sudden increase of imports, or to facilitate adjustment4.

E500 Export restraint arrangement

An arrangement by which an exporter agrees to limit exports in order to avoid imposition of

restrictions by the importing country, such as quotas, raised tariffs or any other import

controls5. The arrangement may be concluded at either government or industry level.

E510 Voluntary export restraint arrangements (VERs)

Voluntary export restraints are arrangements made by government or industry of an

exporting country to voluntarily limit exports in order to avoid imposition of

mandatory restrictions by the importing country7.

E511 Quota agreement

Export quotas, which a given exporting country would accept from an importing

country to avoid imposition of mandatory restrictions

4 Under the WTO Agreement on Safeguards, justification should be provided on the use of such measures instead of price-

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

26

E512 Consultation agreement

Agreement that includes provisions for consultation with a view to introducing

restrictions under certain circumstances

E513 Administrative co-operation agreement

Agreement that includes provisions for administrative cooperation with a view

to avoiding disruptions in bilateral trade.

E590 Export restraint arrangements n.e.s.

E900 Quantity control measures n.e.s.

F000 PARA-TARIFF MEASURES

Other measures that increase the cost off imports in a manner similar to tariff measures, i.e. by

fixed percentage or by a fixed amount, calculated respectively on the basis of the value and the

quantity, are known as para-tariff measures. Four groups are distinguished: customs surcharges;

additional taxes and charges; internal taxes and charges levied on imports; and decreed custom

valuation.

F100 Customs Surcharges

Customs surcharges, which are also called surtax or additional duty, is an ad hoc trade

policy instrument to raise fiscal revenues or to protect domestic industries.

F200 Additional taxes and charges

Additional charges, which are levied on imported goods in addition to customs duties and

surcharges and which have no internal equivalent, and which comprise various taxes and

fees. The category of additional charges includes the tax on foreign exchange transactions,

stamp tax, import licence fee, consular invoice fee, statistical tax, tax on transport facilities

and charges for sensitive product categories. Various other taxes, such as the export

promotion fund tax, taxes for the special funds, the municipal tax, registration fee on

imported motor vehicles, customs formality tax, etc., are classified as additional charges,

n.e.s.6

F210 Tax on foreign exchange transactions

F220 Stamp tax

F230 Import licence fee

F240 Consular invoice fee

F250 Statistical tax

F260 Merchandise handling or storing fees

F270 Tax on transport facilities

F280 Taxes and charges for sensitive product categories

F290 Additional charges n.e.s.

F300 Internal taxes and charges levied on imports

6 It should be noted that Article VIII of GATT states that fees and charges other than customs duties and internal taxes "shall

be limited in amount to the approximate cost of services rendered and shall not represent an indirect protection to domestic

products or a taxation of imports or exports for fiscal purposes."

27

Article III of the GATT Agreement allows internal taxes to be applied to imports; however,

these taxes should not be higher than those applied to similar domestic products. Such taxes

include:

F310 General sales taxes

The general sales tax levied on imports is the equivalent of those internal taxes that

are applied to all or most products. Three types of internal taxes can be distinguished:

first, the one commonly known as sales tax, which is an ad valorem tax based on the

gross receipts of sales of goods, collected at regular intervals from traders; secondly,

the turnover tax or multiple sales tax, which is a tax imposed at more than one level of

production and distribution and is based on gross receipts, resulting in a accumulation

of taxes; thirdly, the value-added tax which is a modified turnover tax based on the

net value added instead of on the gross receipts, avoiding accumulation of taxes and

not affecting the price structure and the allocation of resources.

F320 Excise taxes

An internal tax imposed on selected types of commodities, usually of a luxurious or

non-essential nature, such as alcoholic beverages and tobacco. This tax is levied either

at an ad-valorem or on a specific basis, separate from, and in addition to, the general

sales taxes

F330 Taxes and charges for sensitive product categories

Charges that include emission charges, product taxes and administrative charges.

These latter charges are meant to recover the costs of administrative control systems

F390 Internal taxes and charges levied on imports n.e.s.

F400 Decreed Customs Valuations

Customs duties and other charges on selected imports can be levied on the basis of a

decreed value of goods (the so-called "valeur mercuriale" in French). This practice is

presented as a means to avoid fraud or to protect domestic industry. The decreed value de

facto transforms an ad-valorem duty into a specific duty7.

F900 Para-tariff measures n.e.s

G000 FINANCE MEASURES

Financial measures are intended to regulate the access to and cost of foreign exchange for imports

and define the terms of payment. They may increase import costs in the same manner as tariff

measures.

G100 Advance payment requirement

Advance payment requirements related to the value of the import transaction and/or related

import taxes, are made at the time an application is lodged, or when an import licence is

issued. These payment requirements can consist of:

G110 Advance import deposit

7 Can be appealed according to the WTO rules

28

Advance import deposits require the importer to deposit a percentage of the value of

the import transaction before receiving the goods. No interest is paid on these

deposits.

G120 Cash margin requirement

Cash margin requirements entail depositing the total amount of the transaction value

in a foreign currency, or a specified part of it, in a commercial bank, before the

opening of a letter of credit.

G130 Advance payment of customs duties

Advance payment of custom duties entails paying all or part of the customs duties in

advance; no interest is paid on these advance payments.

G140 Refundable deposits for sensitive product categories

Refundable deposits are charges which are refunded when the used products or the

containers they came in are returned to a collection system.

G190 Advance payment requirements n.e.s.

G200 Multiple exchange rates

Varying exchange rates for imports, depending on the product category. Usually, the

official rate is reserved for essential commodities while the other goods must be paid at

commercial rates or occasionally by buying foreign exchange through auctions.8

G300 Restrictive official foreign exchange allocation

These restrictions are usually executed by the central bank in the form of permits, visas,

authorizations, etc, and is intended to control import flows. Foreign exchange allocation is

sometimes prohibited under this measure.

G310 Prohibition of foreign exchange allocation

No official foreign exchange allocations available to pay for imports.

G320 Bank authorization

A special authorization needs to be obtained from the central bank.

G330 Licence linked with non-official foreign exchange

A licence is requiered to use the foreign exchange even if access to and cost of foreign

exchange is not officially regulated.

G331 External foreign exchange

A licence is granted only for imports related to technical assistance projects and

other sources of external foreign exchange.

G332 Importers' own foreign exchange

A licence is granted if importers have foreign exchange held in an overseas

bank.

G339 Licence linked with non-official foreign exchange, n.e.s.

8 The use of multiple exchange rates are formally prohibited by the GATT 1994

29

G390 Restrictive official foreign exchange allocation, n.e.s.

G400 Regulations concerning terms of payment for imports

These regulations cover the terms of payment of imports and the obtaining and use of credit

(foreign or domestic) to finance imports.

G500 Transfer delays, queuing

Transfer delays and queuing relate to the maximum permitted delays between the date that

goods have been delivered and the date of the final settlement of the imported goods

(usually 90, 180 or 360 days for consumer goods and industrial inputs and two to five years

for capital goods). Queuing takes place when the prescribed delays cannot be observed

because of foreign exchange shortages, and when transactions are settled after a longer

delay.

G600 Surrender requirement

This requirement relates to the surrender of foreign exchange earnings to the central bank.

G900 Finance measures n.e.s.

H000 ANTI-COMPETITIVE MEASURES

Measures to grant exclusive or special preferences or privileges to one or more limited group of

economic operators, for social, fiscal, economic or political reasons.

H100 Single channel for imports

The requirement that all imports, or imports of selected commodities, have to be channelled

through specific enterprises or agencies, sometimes state-owned or state-controlled. They

are granted exclusive import rights.

H110 State trading administration, for importing

H120 Sole importing agency

H190 Single channel for imports, n.e.s.

H200 Compulsory national service

Compulsory national service consists of government-backed exclusive rights of national

insurance and shipping companies.

H210 Compulsory national insurance

H220 Compulsory national transport

H290 Compulsory national service, n.e.s.

H900 Anti-competitive measures, n.e.s.

I000 EXPORT RELATED MEASURES

Export-related measures are measures applied by the government of the exporting country on

exported goods.

I100 Export taxes

30

Export taxes/duties are taxes collected on goods or commodities by the government of the

exporting country. Export taxes can be set either on a specific or an ad valorem basis

I200 Export quantitative restriction

Restrictions to the quantity of goods exported to a specific country or countries by the

government of the exporting country for reasons such as: shortage of goods in the domestic

market; regulating domestic prices; avoiding antidumping measures; or for political

reasons9.

I210 Export Prohibition

Prohibition of exports of certain products

I220 Export quotas

Quotas that limit value or volume of exports.

I230 Licensing or permit requirements to export

Exporters are required to obtain licensing or permit by the government of the

exporting country to export products.

I240 Registration, tight regulation or restriction to export

Requirement to register products before being exported (for monitoring purposes)

I290 Export quantitative restrictions, n.e.s.

I300 Certification

Requirement by the exporting country to obtain sanitary, phytosanitary or other certification

before the goods are exported

I400 Inspection fee

A fee levied by the government authority of exporting country to cover the cost of

inspection for exporting products

I500 State trading administration

All or parts of exports of selected commodities have to be channelled through specific

enterprises identified by governments.

I600 Dual pricing schemes

Different prices for products are applied depending on whether they are sold on domestic

market or export markets.

I900 Export measures n.e.s.

J000 TRADE-RELATED INVESTMENT MEASURES

J100 Local content measures

9 All of these measures are formally prohibited by the GATT 1994, but may be applied under specific situations identified in

Article XI of GATT 1994.

31

Requirement to use certain minimum levels of locally made component, which restrict the

level of imported components.

J200 Trade balancing measures

Measures limiting the purchase or use of imported products by an enterprise to an amount

related to the volume or value of local products that it exports

J900 Trade-related investment measures, n.e.s

K000 DISTRIBUTION RESTRICTIONS*

Restriction to limit and rule the way the products are distributed. It may be controlled through

additional license or certification requirement10

.

Examples

Car dealers in a certain country belong exclusively to car producers in that same country; so car

importers from foreign countries cannot use those points of sale because they belong exclusively

to the local car producers. They would need to set up their own points of sale, and this is much

costly.

L000 RESTRICTION ON POST-SALES SERVICES*

Measures restricting producers of exported goods in exporting countries to provide post-sales

service in the importing country.

Examples

Some goods, especially highly technology intensive goods, may need the help of technicians from

the same foreign company to install or fix them. If visa is not granted to these technical workers,

the sale of the good is hindered.

M000 SUBSIDIES*

Financial contribution by a government or government body to a production structure, being a

particular industry or company, such as direct transfer of funds or potential transfer of funds (e.g.

grants, loans, equity infusions), payments to a funding mechanism and income or price support.

N000 GOVERNMENT PROCUREMENT RESTRICTIONS*

Measures controlling the purchase of goods by government agencies, generally by preferring

national providers. Please review procedural obstacles that may be associated with this measure.

O000 INTELLECTUAL PROPERTY*

Intellectual property legislation covers patents, trademarks, industrial designs, lay-out designs of

integrated circuits, copyright, geographical indications and trade secrets.

P000 RULES OF ORIGIN*

Rules of origin cover laws, regulations and administrative determinations of general application

applied by government of importing countries to determine the country of origin of goods. Rules

of origin can restrict trade when it is difficult to determine the origin of the final product if raw

materials and parts come from different countries. Rules of origin are important in implementing

such trade policy instruments as anti-dumping and countervailing duties, origin marking, and

safeguard measures.

10

These restrictions are closely related with regulations of distribution services.

32

CLASSIFICATION OF PROCEDURAL OBSTACLES

A. Arbitrary or inconsistent behaviour:

A1: Behaviour of customs officials or any other government official

A2: With regard to how your product has been classified or valued

A3: In the manner procedures, regulations or requirements have been applied

B. Discriminatory behaviour favouring specific producers or suppliers:

B1: Favouring local suppliers or producers in destination markets

B2: Favouring suppliers or producers from other countries

B3: Favouring large (or small) companies in destination

C. Inefficiency or cases of outright obstruction consisting of:

C1: Too much documentation or forms to be supplied or completed

C2: Too strict, too detailed or redundant testing/certification or labelling requirement

C3: Substantial delays in obtaining authorization/approval

C4: Complex clearing mechanism such as a need to obtain approval from several entities

C5: Short submission deadlines to supply information

C6: Outdated procedures such as lack of automation

C7: Lack of resources such as understaffing or scarce equipment in destination market

D. Non-transparent practices consisting of:

D1: Inadequate information on laws/regulations/registration

D2: Unannounced change of procedure, regulation or requirement

D3: There is no focal point for information

D4: Opaque government bid or reimbursement processes

D5: Opaque dispute resolution process

D6: An ‘informal’ payment was requested

E. Legal obstacles consisting of:

E1: Lack of enforcement with regard to breaches of patents, copyrights, trademarks, etc.

E2: Inadequate dispute resolution or appeals mechanisms and processes

E3: Inadequate legal infrastructure

F. Unusually high fees or charges

F1: Fees or charges are unusually high (e.g. fees for stamp, testing, or other services)

* Until further decision by MAST members, no efforts will be made to collect measures under these categories from official

sources. These categories have been created in order to reflect potential concerns by traders through surveys and

questionnaires.