abhishreshthaa
Abhijeet S
TARIFF BARRIERS v/s NON TARIFF BARRIERS:
I. Meaning:
Tariff barriers refer to duties and taxes imposed by the govt. on the goods imported from abroad.
Non tariff barriers are various quantitative and exchange control restrictions imposed in order to restrict imports.
II. Types:
Tariff barriers include import duties, specific duties, and valorem duties protective duties, etc
Non tariff barriers includes import licensing , import quota, consular formalities and so on
III. Effectiveness:
Tariff barriers are not very effective as they arise the price but the effect on demand may be limited.
As a protective measure, non tariff barriers are more effective as they restrict imports within the required limits.
IV. Flexibility:
Tariffs are not flexible. They can be imposed quickly but it is difficult to remove due to the opposition of powerful vested interests.
Quotas (non tariff barriers) tend to be more flexible more easily imposed and more easily remove.
V. Effects On Imports:
Tariff barriers restrict imports indirectly.
Non tariff barriers restrict imports directly.
VI. Revenue Earning Capacity:
Provide huge revenue to the government.
Non tariff barriers do not provide additional revenue to the government.
VII. Nature Of Protection:
Tariff barriers do not offer direct protection to home industries.
Non tariff barriers can offer direct protection to home industries.
VIII. Formation Of Monopolies:
Tariff barriers do not facilitate the formation of monopolistic group of production.
Non tariff barriers encourage the formation of the monopolistic group of procedures for their benefit.
IX. Effect On Price:
Tariff barriers affect (increase) the prices of imported items
Non tariff barriers normally do not lead to rise in the prices of imported items.
X. Time Required For Effects:
Changes in tariff are quick and give immediate effect in terms of import reduction.
Non tariff barriers take longer time for introduction of changes. The effects on imports are also slow
XI. Preferences:
Many countries prefer tariff barriers as they give more revenue and are easy to introduce
Not preferred as they do not provide additional revenue and need complicated procedure.
I. Meaning:
Tariff barriers refer to duties and taxes imposed by the govt. on the goods imported from abroad.
Non tariff barriers are various quantitative and exchange control restrictions imposed in order to restrict imports.
II. Types:
Tariff barriers include import duties, specific duties, and valorem duties protective duties, etc
Non tariff barriers includes import licensing , import quota, consular formalities and so on
III. Effectiveness:
Tariff barriers are not very effective as they arise the price but the effect on demand may be limited.
As a protective measure, non tariff barriers are more effective as they restrict imports within the required limits.
IV. Flexibility:
Tariffs are not flexible. They can be imposed quickly but it is difficult to remove due to the opposition of powerful vested interests.
Quotas (non tariff barriers) tend to be more flexible more easily imposed and more easily remove.
V. Effects On Imports:
Tariff barriers restrict imports indirectly.
Non tariff barriers restrict imports directly.
VI. Revenue Earning Capacity:
Provide huge revenue to the government.
Non tariff barriers do not provide additional revenue to the government.
VII. Nature Of Protection:
Tariff barriers do not offer direct protection to home industries.
Non tariff barriers can offer direct protection to home industries.
VIII. Formation Of Monopolies:
Tariff barriers do not facilitate the formation of monopolistic group of production.
Non tariff barriers encourage the formation of the monopolistic group of procedures for their benefit.
IX. Effect On Price:
Tariff barriers affect (increase) the prices of imported items
Non tariff barriers normally do not lead to rise in the prices of imported items.
X. Time Required For Effects:
Changes in tariff are quick and give immediate effect in terms of import reduction.
Non tariff barriers take longer time for introduction of changes. The effects on imports are also slow
XI. Preferences:
Many countries prefer tariff barriers as they give more revenue and are easy to introduce
Not preferred as they do not provide additional revenue and need complicated procedure.